‘Demand for Affordable Manufactured Housing in Florida and U.S. Continues Strong’ Terry Trexler, President of Nobility Homes ‘Announced Sales and Earnings for Its Third Quarter 2022’ Facts, More

‘DemandForAffordableManufacturedHousingInFloridaAndU.S.ContinuesStrong’TerryTrexlerPresidentOfNobilityHomes‘AnnouncedSalesAndEarningsForItsThirdQuarter2022’FactsMoreMHProNews

Nobility Homes, Inc. (OTCQX:NOBH) announced sales and earnings for its third quarter ended August 6, 2022. Sales for the third quarter of 2022 were up 18% to $13.8 million as compared to $11.8 million recorded in the third quarter of 2021. Income from operations for the third quarter of 2022 was $2.2 million versus $1.2 million in the same period a year ago. Net income after taxes was $1.9 million as compared to $1.0 million for the same period last year. Diluted earnings per share for the third quarter of 2022 were $0.56 per share compared to $0.29 per share last year.

For the first nine months of fiscal 2022 sales were $35.3 million as compared to $35.6 million for the first nine months of 2021. Income from operations was $5.2 million versus $4.5 million last year. Net income after taxes was $4.5 million compared to $3.8 million last year. Diluted earnings per share were $1.30 per share compared to $1.06 per share last year.

Nobility’s financial position during the third quarter 2022 remains very strong with cash and cash equivalents, certificate of deposits and short term investments of $22.9 million and no outstanding debt. Working capital is $31.2 million and our ratio of current assets to current liabilities is 3.0:1. Stockholders’ equity is $45.2 million and the book value per share of common stock was $13.40.

Terry Trexler, President, stated, “The demand for affordable manufactured housing in Florida and the U.S. continues to be strong. According to the Florida Manufactured Housing Association, shipments for the industry in Florida for the period from November 2021 through July 2022 were up approximately 22% from the same period last year. Although net sales increased during the three months ended August 6, 2022 as compared to the same period last year, we continued to experience the negative impact of limitations being placed on certain key production materials from suppliers, the delay or lack of key components from vendors as well as back orders, delayed shipments, price increases and labor shortages. These supply chain issues have caused delays in completion of the homes at the manufacturing facility and the set up process of retail homes in the field, resulting in decreased net sales due to our inability to timely deliver and setup homes to customers. We expect that these challenges will continue for the remainder of fiscal year 2022 and potentially beyond until the industry supply chain normalizes.

Maintaining our strong financial position is vital for future growth and success. Because of very challenging business conditions during economic recessions in our market area, management will continue to evaluate all expenses and react in a manner consistent with maintaining our strong financial position, while exploring opportunities to expand our distribution and manufacturing operations.

Our many years of experience in the Florida market, combined with home buyers’ increased need for more affordable housing, should serve the Company well in the coming years. Management remains convinced that our specific geographic market is one of the best long-term growth areas in the country.”

On June 5, 2022 the Company celebrated its 55th anniversary in business specializing in the design and production of quality, affordable manufactured homes. With multiple retail sales centers in Florida for over 31 years and an insurance agency subsidiary, we are the only vertically integrated manufactured home company headquartered in Florida.

MANAGEMENT WILL NOT HOLD A CONFERENCE CALL. IF YOU HAVE ANY QUESTIONS, PLEASE CALL TERRY OR TOM TREXLER @ 800-476-6624 EXT 121 OR TERRY@NOBILITYHOMES.COM OR TOM@NOBILITYHOMES.COM

Certain statements in this report are unaudited or forward-looking statements within the meaning of the federal securities laws. Although Nobility believes that the amounts and expectations reflected in such forward-looking statements are based on reasonable assumptions, there are risks and uncertainties that may cause actual results to differ materially from expectations. These risks and uncertainties include, but are not limited to, the potential adverse impact on our business caused by the COVID-19 pandemic or other health pandemics, competitive pricing pressures at both the wholesale and retail levels, inflation, increasing material costs (including forest based products) or availability of materials due to potential supply chain interruptions (such as current inflation with forest products and supply issues with vinyl siding and PVC piping), changes in market demand, changes in interest rates, availability of financing for retail and wholesale purchasers, consumer confidence, adverse weather conditions that reduce sales at retail centers, the risk of manufacturing plant shutdowns due to storms or other factors, the impact of marketing and cost-management programs, reliance on the Florida economy, impact of labor shortage, impact of materials shortage, increasing labor cost, cyclical nature of the manufactured housing industry, impact of rising fuel costs, catastrophic events impacting insurance costs, availability of insurance coverage for various risks to Nobility, market demographics, management’s ability to attract and retain executive officers and key personnel, increased global tensions, market disruptions resulting from terrorist or other attack, any armed conflict involving the United States and the impact of inflation.

 

NOBILITY HOMES, INC.
Condensed Consolidated Balance Sheets

August 6, November 6,
2022 2021
(Unaudited)
Assets
Current assets:
Cash and cash equivalents $ 20,437,309 $ 36,126,059
Certificates of deposit 1,946,429 2,093,015
Short-term investments 541,132 621,928
Accounts receivable – trade 775,596 680,228
Note receivable 23,905 32,825
Mortgage notes receivable 15,566 22,589
Inventories 20,385,622 10,394,288
Pre-owned homes, net 662,453 542,081
Prepaid expenses and other current assets 2,314,540 1,821,267
Total current assets 47,102,552 52,334,280
Property, plant and equipment, net 7,569,386 6,847,780
Pre-owned homes, net 755,394
Note receivable, less current portion 22,243 38,895
Mortgage notes receivable, less current portion 132,184 222,459
Mobile home park note receivable 201,464 72,731
Other investments 1,829,146 1,788,436
Operating lease right of use assets 1,597
Cash surrender value of life insurance 4,095,216 3,966,939
Other assets 156,287 156,287
Total assets $ 61,108,478 $ 66,184,798
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable $ 1,329,275 $ 939,964
Accrued compensation 832,632 555,222
Accrued expenses and other current liabilities 1,571,351 1,513,967
Income taxes payable 156,918 89,083
Operating lease obligation 1,597
Customer deposits 11,984,065 13,671,092
Total current liabilities 15,874,241 16,770,925
Deferred income taxes 65,496 99,568
Total liabilities 15,939,737 16,870,493
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $.10 par value, 500,000 shares
authorized; none issued and outstanding
Common stock, $.10 par value, 10,000,000
shares authorized; 5,364,907 shares issued;
3,370,912 and 3,532,100 shares outstanding, respectively 536,491 536,491
Additional paid in capital 10,828,305 10,766,253
Retained earnings 60,708,402 59,742,759
Less treasury stock at cost, 1,993,995 and
1,832,807 shares, respectively (26,904,457 ) (21,731,198 )
Total stockholders’ equity 45,168,741 49,314,305
Total liabilities and stockholders’ equity $ 61,108,478 $ 66,184,798

NOBILITY HOMES, INC.
Condensed Consolidated Statements of Income
(Unaudited)

Three Months Ended Nine Months Ended
August 6, July 31, August 6, July 31,
2022 2021 2022 2021
Net sales $ 13,846,698 $ 11,778,120 $ 35,300,014 $ 35,592,531
Cost of sales (9,948,638 ) (9,265,376 ) (25,651,808 ) (26,969,655 )
Gross profit 3,898,060 2,512,744 9,648,206 8,622,876
Selling, general and administrative expenses (1,653,200 ) (1,320,456 ) (4,448,349 ) (4,144,350 )
Operating income 2,244,860 1,192,288 5,199,857 4,478,526
Other income (loss):
Interest income 62,449 62,491 176,706 145,621
Undistributed earnings in joint venture – Majestic 21 15,488 20,202 40,710 45,959
Proceeds received under escrow arrangement 52,140 75,156 285,639 121,024
(Decrease) increase in fair value of equity investment (57,022 ) (449 ) (80,796 ) 203,310
Gain on disposal of property, plant and equipment 88,936
Miscellaneous 161,157 48,169 187,065 73,434
Total other income 234,212 205,569 698,260 589,348
Income before provision for income taxes 2,479,072 1,397,857 5,898,117 5,067,874
Income tax expense (594,313 ) (347,111 ) (1,399,498 ) (1,226,425 )
Net income 1,884,759 1,050,746 4,498,619 3,841,449
Weighted average number of shares outstanding:
Basic 3,370,912 3,599,133 3,460,074 3,621,084
Diluted 3,376,771 3,613,187 3,469,769 3,630,216
Net income per share:
Basic $ 0.56 $ 0.29 $ 1.30 $ 1.06
Diluted $ 0.56 $ 0.29 $ 1.30 $ 1.06

SOURCE: Nobility Homes, Inc.

##

The above was via AccessWire and the Digital Journal, which cited AccessWire. The report has an original dateline September 16, 2022 from OCALA, FL, which is the base of operation of Nobility Homes.

Additional Information with More MHProNews Commentary in Brief

Friday’s market at the close reflected the following ‘maximum’ stock trend for manufactured housing independent and vertically integrated Nobility Homes, Inc. The graphic is per Yahoo Finance.

NobilityHomes10.10.2022
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Note that on Friday, virtually all manufactured housing connected equities, with a notable exception of Nobility.  Life happens at the level of action, not words,” said Alfred Adler, as Tim Connor CSP noted recently. Nobility’s actions are apparent.

Yahoo-ManufacturedHomeCommunitiesMobileHomeParksFactoriesProductionSuppliersFinanceStocksEquitiesClosingDataYahooFinanceLog10.7.2022
In instances such as Apollo, Berkshire Hathaway, Blackstone or others, manufactured housing may only be part of their corporate interests. Note: depending on your browser or device, many images in this report and others on MHProNews can be clicked to expand. Click the image and follow the prompts. For example, in some browsers/devices you click the image and select ‘open in a new window.’ After clicking that selection, you click the image in the open window to expand the image to a larger size. To return to this page, use your back key, escape or follow the prompts.

As conventional housing has largely been slowing, Nobility Homes has largely been advancing.

Fannie Mae Research Indicates Housing Sentiment Declines ‘Inches Closer to All Time Low,’ However Manufactured Housing Production Still Grew YoY for August; plus MHVille REITs, Stocks Update

Nobility Homes Financial Position “Very Strong,” Sales “Strong,” But Challenges Including Lending and Others Examined; Plus Manufactured Housing Stocks Update

Disclosure. MHProNews as a matter of policy holds no position in any of the equities being reported on in our Daily Business News on MHProNews report. Nobility focused and other recent and/or related reports are as shown above and as follows. Florida is the #2 state in the U.S. for the shipment of HUD Code manufactured homes, per the monthly Manufactured Housing Association for Regulatory Reform (MHARR) most recent recap. ##

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Trade media can and should be a ‘cheer leader’ when it is appropriate to do so. But authentic trade media also holds the powers that be to account. Who says? The American Press Institute.

 

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Our son has grown quite a bit since this 12.2019 photo. All on Capitol Hill were welcoming and interested in our manufactured housing industry related concerns. But Congressman Al Green’s office was tremendous in their hospitality. Our son’s hand is on a package that included the Constitution of the United States, bottled water, and other goodies.

By L.A. “Tony” Kovach – for MHProNews.com.

Tony earned a journalism scholarship and earned numerous awards in history and in manufactured housing.

For example, he earned the prestigious Lottinville Award in history from the University of Oklahoma, where he studied history and business management. He’s a managing member and co-founder of LifeStyle Factory Homes, LLC, the parent company to MHProNews, and MHLivingNews.com.

This article reflects the LLC’s and/or the writer’s position, and may or may not reflect the views of sponsors or supporters.

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Related References:

The text/image boxes below are linked to other reports, which can be accessed by clicking on them.

Understanding Crony Corporate, Paltering Media, Washington D.C. Reality Check with B.S. Decoder Ring – Sunday Satire on National, Affordable Housing Issues, with Weekly MHVille Headlines Review

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Follow the Money Trail in Manufactured Housing, Recent Nonprofit Research Reports on MHVille Shed Light on Manufactured Housing Industry Potential and Woes; plus Sunday Weekly Headlines Recap

 

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