Nobility Homes, Inc. Announces Sales and Earnings for Its Third Quarter 2009

PRWeb

September 10, 2009 10:35am Comments

OCALA, Fla., Sept. 10 /PRNewswire-FirstCall/ -- Today Nobility Homes, Inc. (Nasdaq: NOBH) announced sales and earnings results for its third quarter ended August 1, 2009. Sales for the third quarter of 2009 were $3,082,551 as compared to $7,395,885 recorded in third quarter of 2008. Loss from operations for the third quarter of 2009 was $299,019 versus income of $213,055 in the same period a year ago. Net income after taxes was $21,862 as compared to income of $397,561 for the same period last year. The net income after taxes of $21,862 for the third quarter of 2009 came after deducting $85,306 in non-cash losses for our investment in two retirement community limited partnerships and included a tax benefit of $278,860. Income for the third quarter of 2009 was $0.01 per diluted share compared to earnings of $0.10 per diluted share last year.

For the first nine months of fiscal 2009, sales were $9,032,850 as compared to sales of $24,265,336 in the first nine months of 2008. Loss from operations for the first nine months of 2009 was $1,703,084 versus income of $1,486,293 in the first nine months of 2008. Net loss after taxes was $607,726 as compared to income of $1,606,284 for the same nine month period last year. The net loss after taxes of $607,726 for the first nine months of 2009 came after deducting $273,343 in non-cash losses for our investment in two retirement community limited partnerships and included a tax benefit of $763,418. Loss for the first nine months of 2009 was ($0.15) per share compared to diluted earnings of $0.39 per share last year.

Nobility's financial position during fiscal year 2009 remains strong with cash and cash equivalents, short and long-term investments of $11,023,767 and no outstanding debt. Working capital is $19,953,772 and our ratio of current assets to current liabilities is 26.9:1. Stockholders' equity is $41,672,327 and the book value per share of common stock is $10.27. The Company repurchased in the open market 32,390 shares of its common stock during the first nine months of 2009. The Company's Board of Directors has authorized the purchase of up to 200,000 shares of the Company's stock in the open market.

Terry Trexler, President stated, "Sales and operations for the third quarter of 2009, were adversely impacted by our country's severe economic uncertainty and the reduced manufactured housing shipments in Florida, plus the overall decline in Florida and the nation's housing market. Industry shipments in Florida for the period of November 2008 through July 2009 were down approximately 56% from the same period last year. Fiscal year 2009 is Nobility's 42nd year of operating in our market area and is proving to be our most challenging. Lack of retail and wholesale financing, increasing unemployment and home foreclosures, slow sales of existing site-built homes, very low consumer confidence and a poor economic outlook for the U.S. economy are just a few of the challenges facing our country, our industry, and Nobility.

Management understands that during these very challenging economic times, maintaining the Company's strong financial position is vital for future growth and success. Because of deteriorating business conditions and the lack of any clarity that today's economic challenges will improve significantly, the Company will continue to evaluate Prestige's fifteen retail model centers in Florida, along with all expenses within the Company and react in a manner consistent with maintaining our strong balance sheet.

Although the overall housing picture, financial market and economy have declined significantly this past year and the immediate outlook for the manufactured housing industry in Florida and the nation is uncertain, the long-term demographic trends still favor future growth in the Florida market area we serve. Job formation, immigration growth and migration trends, plus consumers returning to more affordable housing should favor Florida. Management remains convinced that our specific geographic market is one of the best long-term growth areas in the country and, because of the strong operating leverage inherent in the Company, we expect to out-perform the industry. For the remainder of fiscal 2009, the country must experience a better economy with less uncertainty, improved sales in the existing home market, declining unemployment, continued low interest rates, improving credit markets, increased consumer confidence and more retail financing for the demand of Nobility's affordable homes to improve.

The Company invested as a limited partner in two new Florida retirement manufactured home communities in fiscal year 2008. Although these investments will report non-cash losses in the initial fill-up stage, management believes that the new attractive and affordable manufactured home communities for senior citizens will be a significant growth area for Florida in the future."

Nobility Homes, Inc. has specialized for 42 years in the design and production of quality, affordable manufactured homes at its plant located in central Florida. With fifteen Company retail sales centers, a finance company joint venture, an insurance subsidiary, and an investment in two new affordable retirement manufactured home communities, Nobility is 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 221 OR TERRY@NOBILITYHOMES.COM OR TOM@NOBILITYHOMES.COM

Certain statements in this report are forward-looking statements within the meaning of the federal securities laws, including our statement that working capital requirements will be met with internal sources. Although Nobility believes that the 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, competitive pricing pressures at both the wholesale and retail levels, increasing material costs, continued excess retail inventory, increase in repossessions, 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 and any armed conflict involving the United States and the impact of inflation.

NOBILITY HOMES, INC. Consolidated Balance Sheets (Unaudited) August 1, November 1, 2009 2008 ---- ---- Assets Current assets: Cash and cash equivalents $2,996,853 $8,649,724 Short-term investments 252,147 168,210 Accounts receivable 595,505 654,529 Inventories 15,316,185 12,051,361 Prepaid income taxes - 438,398 Income tax receivable 901,248 - Prepaid expenses and other current assets 451,008 433,166 Deferred income taxes 210,858 298,408 ------- ------- Total current assets 20,723,804 22,693,796 ---------- ---------- Property, plant and equipment, net 4,144,029 4,342,401 Long-term investments 7,774,767 8,140,226 Other investments 6,962,592 7,222,276 Deferred income taxes 454,252 334,424 Other assets 2,382,915 2,397,939 --------- --------- Total assets $42,442,359 $45,131,062 =========== =========== Liabilities and Stockholders' Equity Current liabilities: Accounts payable $97,144 $186,477 Accrued compensation 55,259 201,155 Accrued expenses and other current liabilities 338,590 355,218 Customer deposits 279,039 717,951 ------- ------- Total current liabilities 770,032 1,460,801 ------- --------- Uncertain tax liabilities - 275,000 --- ------- Total liabilities 770,032 1,735,801 ------- --------- Commitments and contingent liabilities 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 536,491 536,491 Additional paid in capital 10,292,975 10,178,398 Retained earnings 40,342,028 41,968,423 Accumulated other comprehensive income 52,526 175 Less treasury stock at cost, 1,308,763 and 1,276,373 shares, respectively, in 2009 and 2008 (9,551,693) (9,288,226) ---------- ---------- Total stockholders' equity 41,672,327 43,395,261 ---------- ---------- Total liabilities and stockholders' equity $42,442,359 $45,131,062 =========== =========== NOBILITY HOMES, INC. Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) Three Months Ended Nine Months Ended ------------------ ----------------- August 1, August 2, August 1, August 2, 2009 2008 2009 2008 Net sales $3,082,551 $7,395,885 $9,032,850 $24,265,336 Cost of goods sold (2,396,635) (5,435,537) (7,121,675) (17,629,032) ---------- ---------- ---------- ----------- Gross profit 685,916 1,960,348 1,911,175 6,636,304 Selling, general and administrative expenses (984,935) (1,747,293) (3,614,259) (5,150,011) -------- ---------- ---------- ---------- Operating income (loss) (299,019) 213,055 (1,703,084) 1,486,293 -------- ------- ---------- --------- Other income (expense): Interest income 64,380 118,993 279,218 389,923 Undistributed earnings in joint venture - Majestic 21 45,426 60,035 137,159 228,730 Earnings from finance revenue sharing agreement - 191,200 157,700 536,300 Undistributed losses from investments in retirement community limited partnership (85,306) 10,646 (273,343) (168,196) Miscellaneous 17,521 16,163 31,206 20,405 ------ ------ ------ ------ Total other income 42,021 397,037 331,940 1,007,162 ------ ------- ------- --------- Income (loss) before income tax benefit (expense) (256,998) 610,092 (1,371,144) 2,493,455 Income tax benefit (expense) 278,860 (212,531) 763,418 (887,171) ------- -------- ------- -------- Net income (loss) 21,862 397,561 (607,726) 1,606,284 Other comprehensive income (loss), net of tax: Unrealized investment gain (loss) 58,716 (29,271) 52,351 (97,114) ------ ------- ------ ------- Comprehensive income (loss) $80,578 $368,290 $(555,375) $1,509,170 ======= ======== ========= ========== Weighed average number of shares outstanding: Basic 4,056,144 4,087,639 4,066,886 4,087,442 Diluted 4,057,917 4,092,094 4,066,886 4,092,452 Earnings (loss) per share: Basic $0.01 $0.10 $(0.15) $0.39 Diluted $0.01 $0.10 $(0.15) $0.39 Cash dividends paid per common share $- $- $0.25 $0.50

SOURCE Nobility Homes, Inc.

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Nobility Homes, Inc. Announces Sales and Earnings for Its Third Quarter 2009