OCALA, Fla., March 7, 2011 /PRNewswire/ -- Today Nobility
Homes, Inc. (Nasdaq: NOBH) announced sales and earnings results for
its fiscal year ended November 6,
2010. Sales for fiscal year 2010 were up 25% to
$14,861,682 as compared to
$11,869,333 recorded in fiscal year
2009. Loss from operations for fiscal year 2010 was
$816,633 versus loss $2,230,641 in the same period a year ago.
Net loss after taxes was $795,130 as compared to net loss after taxes of
$1,051,843 for the same period last
year. Due to the number of repurchased homes the Company has
experienced in fiscal year 2010 and 2009 under the finance revenue
sharing agreement, the Company has increased the reserve to
$402,994 in 2010 from $300,000 in 2009 for potential losses associated
with the refurbishing and reselling of the repurchased homes.
Although the Company has currently not experienced any losses
in disposing of the repossessions, the Company is concerned with
the number of repossessions in inventory and may choose more
aggressive pricing which could lead to some repossessions being
sold for a loss. The net loss after taxes of $795,130 for fiscal year 2010 came after
deducting $942,352 in non-cash losses
for our investment in two retirement community limited partnerships
and included a tax benefit of $643,219. Loss for the fiscal year of 2010
was ($0.20) per share compared to a
loss of ($0.26) per share last fiscal
year.
For the fourth quarter of fiscal 2010, sales were up 24% to
$3,509,239 as compared to sales of
$2,836,483 recorded in fiscal year
2009. Loss from operations for the fourth quarter of 2010 was
$195,341 versus loss of $527,557 in the same period last year. Net
loss after taxes was $123,212 as
compared to a loss after taxes of $444,117 for the same period last year. The
net loss after taxes of $123,212 for
the fourth quarter of 2010 came after deducting $139,308 in non-cash losses for our investment in
two retirement community limited partnerships and included a tax
benefit of $146,657. Loss for
the fourth quarter of 2010 was ($0.03) per share compared to a loss of
($0.11) per share last year.
Nobility's financial position during fiscal year 2010 remains
strong with cash and cash equivalents, short and long-term
investments of $10,763,830 and no
outstanding debt. Working capital is $26,761,904 and our ratio of current assets to
current liabilities is 25.3:1. Stockholders' equity is
$40,660,338 and the book value per
share of common stock is $10.02.
The Company did not repurchase any shares of its common stock
during fiscal year 2010. 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 fiscal year 2010, although improved,
continued to be adversely impacted by our country's economic
uncertainty and the low manufactured housing shipments in
Florida, plus the overall weakness
in Florida and the nation's
housing market. Industry shipments in Florida for the period November 2009 through October 2010 were up approximately 11% from the
same period last year. Even though Nobility's sales, gross
profit as a percentage of net sales, selling, general and
administrative expenses improved, the Company's low sales volume
made it difficult to report meaningful results for fiscal 2010.
Continued lack of retail and wholesale financing, very high
unemployment and home foreclosures, slow sales of existing
site-built homes, low consumer confidence and a poor economic
outlook for the U.S. and Florida's
economy are just a few of the on-going challenges the Company
faced. While the management has not seen decisive improvement
in these challenges brought about by the tumultuous events of 2008
and 2009, some slight progress has emerged for the nation's
economy.
Although the overall housing picture, credit market and economy
have not improved measurably during the 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. The Baby Boomer generation began to
turn 65 in January 2011 and by 2030
the number of Americans 65 and over is predicted to almost double.
This trend coupled with the end of the free spending
credit-driven years, Nobility's 44 years in the Florida market, and consumers' 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. For fiscal 2011, 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 our affordable homes to improve
significantly.
Management understands that during this very complex economic
environment, maintaining the Company's strong financial position is
vital for future growth and success. Because of the poor
business conditions in our market area and the lack of any clarity
when today's economic challenges will improve measurably, the
Company will continue to evaluate Prestige's twelve retail model
centers in Florida, along with all
expenses within the Company and react in a manner consistent with
maintaining our financial position.
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 growth
area for Florida in the
future."
Nobility Homes, Inc. has specialized for 44 years in the design
and production of quality, affordable manufactured homes at its
plant located in central Florida.
With twelve 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)
|
|
|
|
|
|
|
|
|
|
November
6,
|
|
October
31,
|
|
|
|
2010
|
|
2009
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
Current assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
$
8,225,232
|
|
$
3,995,167
|
|
|
Short-term
investments
|
2,025,812
|
|
3,855,905
|
|
|
Accounts and notes
receivable
|
296,536
|
|
963,032
|
|
|
Mortgage notes receivable,
current
|
2,284
|
|
-
|
|
|
Inventories
|
16,569,403
|
|
15,679,969
|
|
|
Income tax
receivable
|
244,365
|
|
976,130
|
|
|
Prepaid expenses and other
current assets
|
230,597
|
|
362,161
|
|
|
Deferred income
taxes
|
267,566
|
|
279,818
|
|
|
Total current
assets
|
27,861,795
|
|
26,112,182
|
|
|
|
|
|
|
|
Property, plant and equipment,
net
|
3,989,441
|
|
4,138,336
|
|
Long-term
investments
|
512,786
|
|
2,252,419
|
|
Mortgage notes receivable, long
term
|
190,921
|
|
-
|
|
Other investments
|
5,647,043
|
|
6,599,846
|
|
Deferred income
taxes
|
1,033,291
|
|
572,099
|
|
Other assets
|
2,524,952
|
|
2,397,793
|
|
|
Total
assets
|
$
41,760,229
|
|
$
42,072,675
|
|
|
|
|
|
|
|
Liabilities and Stockholders'
Equity
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Accounts payable
|
$
220,635
|
|
$
91,636
|
|
|
Accrued
compensation
|
114,478
|
|
62,610
|
|
|
Accrued expenses and other
current liabilities
|
209,787
|
|
240,539
|
|
|
Customer deposits
|
554,991
|
|
410,578
|
|
|
Total current
liabilities
|
1,099,891
|
|
805,363
|
|
|
|
|
|
|
|
Uncertain tax
liabilities
|
-
|
|
-
|
|
|
Total
liabilities
|
1,099,891
|
|
805,363
|
|
|
|
|
|
|
|
Commitments and contingent
liabilities
|
|
|
|
|
|
|
|
|
|
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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
|
10,482,920
|
|
10,331,168
|
|
Retained
earnings
|
39,102,781
|
|
39,897,911
|
|
Accumulated other
comprehensive income (loss)
|
89,839
|
|
53,435
|
|
Less treasury
stock at cost, 1,308,763 in 2010
|
|
|
|
|
and 2009
|
(9,551,693)
|
|
(9,551,693)
|
|
|
Total
stockholders' equity
|
40,660,338
|
|
41,267,312
|
|
|
Total liabilities
and stockholders' equity
|
$
41,760,229
|
|
$
42,072,675
|
|
|
|
|
|
|
|
|
|
|
|
|
NOBILITY
HOMES, INC.
|
|
Consolidated
Statements of Operations and Comprehensive Loss
|
|
(Unaudited)
|
|
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|
|
|
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|
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|
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|
|
|
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|
Three Months
Ended
|
Twelve
Months Ended
|
|
|
|
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|
November
6,
|
|
October
31,
|
November
6,
|
|
October
31,
|
|
|
|
|
|
2010
|
|
2009
|
2010
|
|
2009
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
$
3,509,239
|
|
$
2,836,483
|
$
14,861,682
|
|
$
11,869,333
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods
sold
|
(2,796,170)
|
|
(2,092,777)
|
(11,821,007)
|
|
(9,514,452)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
713,069
|
|
743,706
|
3,040,675
|
|
2,354,881
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
(908,410)
|
|
(1,271,263)
|
(3,857,306)
|
|
(4,585,522)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income
(loss)
|
(195,341)
|
|
(527,557)
|
(816,631)
|
|
(2,230,641)
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
Interest income
|
59,099
|
|
112,071
|
254,010
|
|
391,289
|
|
|
Undistributed earnings in joint
venture - Majestic 21
|
3,450
|
|
46,742
|
18,549
|
|
183,901
|
|
|
Earnings from finance revenue
sharing agreement
|
-
|
|
-
|
-
|
|
157,700
|
|
|
Losses from investments in
retirement
|
|
|
|
|
|
|
|
|
community limited
partnership
|
(139,308)
|
|
(409,488)
|
(942,352)
|
|
(682,831)
|
|
|
Miscellaneous
|
2,231
|
|
(9,056)
|
48,075
|
|
22,150
|
|
|
|
Total other income
(loss)
|
(74,528)
|
|
(259,731)
|
(621,718)
|
|
72,209
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss before income tax
benefit
|
(269,869)
|
|
(787,288)
|
(1,438,349)
|
|
(2,158,432)
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
benefit
|
146,657
|
|
343,171
|
643,219
|
|
1,106,589
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
(123,212)
|
|
(444,117)
|
(795,130)
|
|
(1,051,843)
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income
(loss), net of tax:
|
|
|
|
|
|
|
|
|
Unrealized investment gain
(loss)
|
(5,771)
|
|
910
|
36,404
|
|
53,260
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
loss
|
$
(128,983)
|
|
$
(443,207)
|
$
(758,726)
|
|
$
(998,583)
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighed average number of shares
outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
4,056,144
|
|
4,056,144
|
4,056,144
|
|
4,064,208
|
|
|
Diluted
|
4,056,144
|
|
4,056,144
|
4,056,144
|
|
4,064,208
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss per share:
|
|
|
|
|
|
|
|
|
Basic
|
$
(0.03)
|
|
$
(0.11)
|
$
(0.20)
|
|
$
(0.26)
|
|
|
Diluted
|
$
(0.03)
|
|
$
(0.11)
|
$
(0.20)
|
|
$
(0.26)
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends paid per common
share
|
$
-
|
|
$
-
|
$
-
|
|
$
0.25
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
SOURCE Nobility Homes, Inc.