Nobility Homes, Inc. Announces First Quarter 2010 Results
OCALA, Fla., March 12 /PRNewswire/ -- Today Nobility Homes, Inc. (Nasdaq: NOBH) announced sales and earnings results for its first quarter ended January 30, 2010. Sales for the first quarter of 2010 were $3,292,874 as compared to $3,561,482 recorded in first quarter of 2009. Loss from operations for the first quarter of 2010 was $411,593 versus loss of $519,823 in the same period a year ago. Net loss after taxes was $337,345 as compared to loss of $123,148 for the same period last year. The net loss after taxes of $337,345 for the first quarter of 2010 came after deducting $255,224 in non-cash losses for our investment in two retirement community limited partnerships and included a tax benefit of $232,162. Loss for the first quarter of 2010 was ($0.08) per share compared to loss of ($0.03) per share last year.
Nobility's financial position during first quarter of 2010 remains strong with cash and cash equivalents, short and long-term investments of $9,018,821 and no outstanding debt. Working capital is $25,207,731 and our ratio of current assets to current liabilities is 30.6:1. Stockholders' equity is $40,984,552 and the book value per share of common stock is $10.10. 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 first quarter of 2010, 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 calendar year 2009 were down approximately 45% from the same period last year. 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 the Company 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 financial position.
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 financial 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 our 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 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 [email protected] OR [email protected]
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)
January 30, October 31,
2010 2009
----------- -----------
Assets
Current Assets:
Cash and cash equivalents $2,906,335 $3,995,167
Short-term investments 3,866,516 3,855,905
Accounts receivable 938,649 963,032
Inventories 16,438,992 15,679,969
Income tax receivable 1,088,503 976,130
Prepaid expenses and other current assets 560,311 362,161
Deferred income taxes 258,986 279,818
---------- ----------
Total current assets 26,058,292 26,112,182
---------- ----------
Property, plant and equipment, net 4,088,811 4,138,336
Long-term investments 2,245,970 2,252,419
Other investments 6,327,047 6,599,846
Deferred income taxes 702,680 572,099
Other assets 2,412,673 2,397,793
----------- -----------
Total assets $41,835,473 $42,072,675
=========== ===========
Liabilities and stockholders' equity
Current liabilities:
Accounts payable $106,116 $91,636
Accrued compensation 40,918 62,610
Accrued expenses and other current liabilities 84,008 240,539
Customer deposits 619,879 410,578
------- -------
Total current liabilities 850,921 805,363
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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 10,369,106 10,331,168
Retained earnings 39,560,567 39,897,911
Accumulated other Comprehensive income 70,081 53,435
Less treasury stock at cost, 1,308,763 and
1,276,373 shares, respectively, in
2010 and 2009 (9,551,693) (9,551,693)
----------- -----------
Total stockholders' equity 40,984,552 41,267,312
----------- -----------
Total liabilities and
stockholders' equity $41,835,473 $42,072,675
=========== ===========
NOBILITY HOMES, INC.
Consolidated Statements of Operations and Comprehensive Loss
(Unaudited)
Three Months Ended
------------------
January 30, January 31,
2010 2009
----------- -----------
Net sales $3,292,874 $3,561,482
Cost of goods sold (2,673,392) (2,739,305)
----------- -----------
Gross profit 619,482 822,177
Selling, general and administrative expenses (1,031,075) (1,342,000)
----------- -----------
Operating loss (411,593) (519,823)
--------- ---------
Other income (loss):
Interest income 67,669 123,795
Equity in earnings in joint venture
- Majestic 21 11,425 45,300
Earnings from finance revenue
sharing agreement - 157,700
Equity in losses from investments in
retirement community limited partnerships (255,224) (66,911)
Miscellaneous 18,216 -
--------- ---------
Total other income (loss) (157,914) 259,884
--------- ---------
Loss before provision for income taxes (569,507) (259,939)
Income tax benefit 232,162 136,791
--------- ---------
Net loss (337,345) (123,148)
Other comprehensive income (loss), net of tax:
Unrealized investment gain (loss) 16,646 (14,863)
---------- ----------
Comprehensive loss $(320,699) $(138,011)
========== ==========
Weighted average number of shares outstanding
Basic 4,056,144 4,078,820
Diluted 4,056,144 4,078,820
Loss per share
Basic $(0.08) $(0.03)
Diluted $(0.08) $(0.03)
Cash dividends paid per common share $- $0.25
SOURCE Nobility Homes, Inc.
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