OCALA, Fla., March 13, 2014 (GLOBE NEWSWIRE) -- Today Nobility Homes, Inc. (Pink Sheets:NOBH) announced sales and earnings results for its first quarter ended February 1, 2014. Sales for first quarter 2014 were up 23% to $4,191,429 as compared to $3,401,667 recorded in first quarter 2013. Income from operations for first quarter was $84,186 versus a loss of $6,717 in the same period a year ago. Net income after taxes was $103,402 as compared to $4,845 for the same period last year. The net income after taxes for first quarter 2014 included a $39,401 non-cash loss from our investment in a retirement community limited partnership. Diluted earnings per share for first quarter 2014 were $.03 per share compared to breakeven last year.
Nobility's financial position in first quarter 2014 remains very strong with cash and cash equivalents and short term investments of $12,101,200 and no outstanding debt. Working capital is $20,733,501 and our ratio of current assets to current liabilities is 15.4:1. Stockholders' equity is $35,319,524 and the book value per share of common stock increased to $8.70.
Terry Trexler, President, stated, "Our sales are affected by the strength of the U.S. economy, interest rates and employment levels, consumer confidence and the availability of retail financing. We believe the lack of retail financing for manufactured housing continues to have a negative effect on our sales, although the overall economy has shown improvement. According to the Florida Manufactured Housing Association, shipments in Florida for the period from November 2013 through January 2014 were up approximately 12% from the same period last year. Although shipments increased, the intermediate 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. Management remains convinced that our specific geographic market is one of the best long-term growth areas in the country. The country must experience a better economy with less uncertainty, continued improved sales in the existing home market, declining unemployment, increased consumer confidence and more retail financing for the sales of our affordable homes for the Company to improve significantly. Management will continue to evaluate Prestige's retail model centers in Florida, along with all expenses and will react in a manner consistent with maintaining our strong financial position".
For 46 years we have specialized in the design and production of quality, affordable manufactured homes at our plant located in central Florida. With our multiple retail sales centers, an insurance subsidiary, and investments in retirement manufactured home communities, we are 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. 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 | ||
| February 1, | November 2, | |
| 2014 | 2013 | |
| (Unaudited) | ||
| Assets | ||
| Current assets: | ||
| Cash and cash equivalents | $ 11,628,025 | $ 10,468,453 |
| Short-term investments | 473,175 | 455,232 |
| Accounts receivable - trade | 924,310 | 2,701,057 |
| Mortgage notes receivable, current | 5,163 | 4,549 |
| Income tax receivable | 10,000 | -- |
| Inventories | 5,517,600 | 5,043,816 |
| Pre-owned homes, current | 2,571,210 | 2,187,598 |
| Prepaid expenses and other current assets | 459,601 | 319,546 |
| Deferred income taxes | 589,171 | 656,461 |
| Total current assets | 22,178,255 | 21,836,712 |
| Property, plant and equipment, net | 3,762,707 | 3,731,463 |
| Pre-owned homes | 3,468,532 | 4,316,397 |
| Mortgage notes receivable, long term | 183,033 | 183,753 |
| Other investments | 2,931,203 | 2,938,273 |
| Deferred income taxes | 1,406,829 | 1,339,539 |
| Other assets | 2,833,719 | 2,804,484 |
| Total assets | $ 36,764,278 | $ 37,150,621 |
| Liabilities and Stockholders' Equity | ||
| Current liabilities: | ||
| Accounts payable | $ 447,437 | $ 645,519 |
| Accrued compensation | 80,451 | 170,026 |
| Accrued expenses and other current liabilities | 437,291 | 614,368 |
| Customer deposits | 479,575 | 537,052 |
| Total current liabilities | 1,444,754 | 1,966,965 |
| 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 | 10,634,083 | 10,632,060 |
| Retained earnings | 33,423,186 | 33,319,784 |
| Accumulated other comprehensive income | 258,321 | 240,378 |
| Less treasury stock at cost, 1,306,913 shares in 2014 and 1,307,854 shares in 2013 | $ (9,532,557) | (9,545,057) |
| Total stockholders' equity | 35,319,524 | 35,183,656 |
| Total liabilities and stockholders' equity | $ 36,764,278 | $ 37,150,621 |
| NOBILITY HOMES, INC. | ||
| Consolidated Statements of Comprehensive Income | ||
| (Unaudited) | ||
| Three Months Ended | ||
| February 1, | February 2, | |
| 2014 | 2013 | |
| Net sales | $ 4,191,429 | $ 3,401,667 |
| Cost of goods sold | (3,445,899) | (2,855,884) |
| Gross profit | 745,530 | 545,783 |
| Selling, general and administrative expenses | (661,344) | (552,500) |
| Operating income (loss) | 84,186 | (6,717) |
| Other income (loss): | ||
| Interest income | 9,832 | 5,539 |
| Undistributed earnings in joint venture -- Majestic 21 | 32,331 | 17,236 |
| Losses from investments in retirement community limited partnerships | (39,401) | (46,337) |
| Miscellaneous | 16,454 | 35,124 |
| Total other income | 19,216 | 11,562 |
| Income before provision for income taxes | 103,402 | 4,845 |
| Income tax benefit | -- | -- |
| Net income | 103,402 | 4,845 |
| Other comprehensive income | ||
| Unrealized investment gain | 17,943 | 8,970 |
| Comprehensive income | $ 121,345 | $ 13,815 |
| Weighed average number of shares outstanding: | ||
| Basic | 4,057,994 | 4,057,023 |
| Diluted | 4,059,316 | 4,057,023 |
| Net income per share: | ||
| Basic | $ 0.03 | $ -- |
| Diluted | $ 0.03 | $ -- |