OCALA, Fla., Jan. 7 /PRNewswire-FirstCall/ -- Today Nobility Homes,
Inc. (NASDAQ:NOBH) announced sales and earnings results for its
fiscal year ended October 31, 2009. Sales for fiscal year 2009 were
$11,869,333 as compared to $30,065,022 recorded in fiscal year
2008. Loss from operations for fiscal year 2009 was $2,230,641
versus income $1,615,141 in the same period a year ago. Net loss
after taxes was $1,051,843 as compared to net income after taxes of
$1,822,156 for the same period last year. Because of the number of
repossessions that the Company has experienced over the past fiscal
year related to its Finance Revenue Sharing Agreement, Nobility has
set up a reserve of $300,000 for potential losses associated with
the refurbishing and re-selling of the repossessions. 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 $1,051,843 for fiscal year 2009 came after
deducting $682,831 in non-cash losses for our investment in two
retirement community limited partnerships and included a tax
benefit of $1,106,589. Loss for the fiscal year of 2009 was ($0.26)
per share compared to earnings of $0.45 per diluted share last
year. For the fourth quarter of fiscal 2009, sales were $2,836,483
as compared to sales of $5,799,686 recorded in fiscal year 2008.
Loss from operations for the fourth quarter of 2009 was $527,557
versus income of $128,848 in the same period last year. Net loss
after taxes was $444,117 as compared to net income after taxes of
$215,872 for the same period last year. The net loss after taxes of
$444,117 for the fourth quarter of 2009 came after deducting
$409,488 in non-cash losses for our investment in two retirement
community limited partnerships and included a tax benefit of
$343,171. Loss for the fourth quarter of 2009 was ($0.11) per share
compared to diluted earnings of $0.05 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 $10,103,491 and no outstanding debt. Working capital
is $21,704,519 and our ratio of current assets to current
liabilities is 27.9:1. Stockholders' equity is $41,267,312 and the
book value per share of common stock is $10.17. The Company
repurchased in the open market 32,390 shares of its common stock
during fiscal year 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 fiscal year 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
fiscal year 2009 were down approximately 54% from the same period
last year. Fiscal year 2009 was Nobility's 42nd year of operating
in our market area and proved 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 our country, our industry,
and Nobility faced. 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 fiscal 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 fiscal 2010, 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 OR 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)
October 31, November 1, 2009 2008 ---- ---- Assets Current assets:
Cash and cash equivalents $3,995,167 $8,649,724 Short-term
investments 253,605 168,210 Accounts receivable 963,032 654,529
Inventories 15,679,969 12,051,361 Prepaid income taxes - 438,398
Income tax receivable 976,130 - Prepaid expenses and other current
assets 362,161 433,166 Deferred income taxes 279,818 298,408
------- ------- Total current assets 22,509,882 22,693,796
---------- ---------- Property, plant and equipment, net 4,138,336
4,342,401 Long-term investments 5,854,719 8,140,226 Other
investments 6,599,846 7,222,276 Deferred income taxes 572,099
334,424 Other assets 2,397,793 2,397,939 --------- --------- Total
assets $42,072,675 $45,131,062 =========== =========== Liabilities
and Stockholders' Equity Current liabilities: Accounts payable
$91,636 $186,477 Accrued compensation 62,610 201,155 Accrued
expenses and other current liabilities 240,539 355,218 Customer
deposits 410,578 717,951 ------- ------- Total current liabilities
805,363 1,460,801 ------- --------- Uncertain tax liabilities -
275,000 --- ------- Total liabilities 805,363 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 10,331,168 10,178,398 Retained
earnings 39,897,911 41,968,423 Accumulated other comprehensive
income 53,435 175 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
41,267,312 43,395,261 ---------- ---------- Total liabilities and
stockholders' equity $42,072,675 $45,131,062 ===========
=========== NOBILITY HOMES, INC. Consolidated Statements of
Operations and Comprehensive Income (Loss) (Unaudited) Three Months
Ended Twelve Months Ended ------------------ -------------------
October 31, November 1, October 31, November 1, 2009 2008 2009 2008
---- ---- ---- ---- Net sales $2,836,483 $5,799,686 $11,869,333
$30,065,022 Cost of goods sold (2,392,777) (4,216,654) (9,514,452)
(21,845,686) ---------- ---------- ---------- ----------- Gross
profit 443,706 1,583,032 2,354,881 8,219,336 Selling, general and
administrative expenses (971,263) (1,454,184) (4,585,522)
(6,604,195) Operating income (loss) (527,557) 128,848 (2,230,641)
1,615,141 -------- ------- ---------- --------- Other income
(expense): Interest income 112,071 156,841 391,289 546,764
Undistributed earnings in joint venture - Majestic 21 46,742 54,963
183,901 283,693 Earnings from finance revenue sharing agreement -
161,600 157,700 697,900 Undistributed losses from investments in
retirement community limited partnership (409,488) (300,632)
(682,831) (468,828) Miscellaneous (9,056) 39,372 22,150 59,777
------ ------ ------ ------ Total other income (expense) (259,731)
112,144 72,209 1,119,306 -------- ------- ------ --------- Income
(loss) Before income tax benefit (expense) (787,288) 240,992
(2,158,432) 2,734,447 Income tax benefit (expense) 343,171 (25,120)
1,106,589 (912,291) ------- ------- --------- -------- Net income
(loss) (444,117) 215,872 (1,051,843) 1,822,156 -------- -------
---------- --------- Other Comprehensive income (loss), net of tax:
Unrealized investment gain (loss) 910 (137,435) 53,261 (234,549)
--- -------- ------ -------- Comprehensive income (loss) $(443,207)
$78,437 $(998,582) $1,587,607 ========= ======= =========
========== Weighed average number of shares outstanding: Basic
4,056,144 4,089,859 4,064,208 4,088,121 Diluted 4,056,144 4,092,655
4,064,208 4,091,645 Earnings (loss) per share: Basic $(0.11) $0.05
$(0.26) $0.45 Diluted $(0.11) $0.05 $(0.26) $0.45 ------ -----
------ ----- Cash dividends paid per common share $- $- $0.25 $0.50
DATASOURCE: Nobility Homes, Inc. CONTACT: Terry Trexler, , or Tom
Trexler, , 1-800-476-6624 ext 221, both of Nobility Homes, Inc. Web
Site: http://www.nobilityhomes.com/
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