The company reports sales increased 16 percent to $8,573,400, as compared to $7,374,050 recorded in first quarter 2016. Income from operations for first quarter 2017 was $1,056,477 versus $975,741 in the same period last year.
Net income after taxes was $703,323, as compared to $678,401 for the same quarter last year, and diluted earnings per share were $0.18 per share, compared to $0.17 per share last year.
“The demand for affordable manufactured housing in Florida and the U.S. continues to improve. According to the Florida Manufactured Housing Association, shipments in Florida for the period from November 2016 through January 2017 were up approximately 8.9% from the same period last year. Our sales and earnings continue to be affected by the lack of available retail and wholesale financing. Constrained consumer credit and the lack of lenders in the industry, partly as a result of an increase in government regulations, have limited many affordable manufactured housing buyers from purchasing homes,” said Nobility Homes President Terry Trexler.
Notably, Nobility Homes maintained a strong cash position during the quarter, with cash, cash equivalents and short-term investments of $25,962,722 with no outstanding debt. Stockholders’ equity sits at $45,498,192 and the book value per share of common stock increased to $11.36.
“We believe maintaining our strong financial position is vital for future growth and success. Because of the recent years of very challenging business conditions in our market area, management continues 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,” said Trexler.
The Board of Directors also declared a one-time cash dividend of $.15 per common share for fiscal year 2016, on March 10, 2017. The cash dividend is payable on April 17, 2017 to stockholders of record as of March 27, 2017.
“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,” said Trexler.
As Daily Business News readers are aware, Nobility Homes designs, manufactures and sells about 100 different models of manufactured and modular homes through its own vertically integrated retail sales centers throughout Florida, and has for over 49 years. Other holdings include multiple retail sales centers, an insurance subsidiary, and an investment in a retirement manufactured home community.
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Submitted by RC Williams to the Daily Business News for MHProNews.
