Nobility Homes, Inc. Announces Sales and Earnings for its Fiscal Year 2017

(MENAFNEditorial) OCALA, FL / ACCESSWIRE / December 29, 2017 / Today Nobility Homes, Inc. (OTCQX: NOBH) announced sales and earnings results for its fiscal year ended November 4, 2017. Sales for fiscal year 2017 were up 10% to $37,543,071 as compared to $34,053,290 recorded in fiscal year 2016. Income from operations, up 5% for fiscal year 2017, was $4,355,874 versus $4,153,799 in the same period a year ago. Net income after taxes was $3,309,983 as compared to $5,965,194 for the same period last year. In fiscal year of 2017, we received payments under an escrow arrangement related to the Finance Revenue Sharing Agreement between 21st Mortgage Corporation and the Company resulting in revenue of $504,548. In the second quarter of 2016 the Company sold its limited partnership interest in CRF III, Ltd. ( & #8220;Cypress Creek & #8221;), a retirement community, which resulted in a gain of $3,990,000 and also received revenue of $788,566 under an escrow arrangement related to the Finance Revenue Sharing Agreement between 21st Mortgage Corporation and the Company. Diluted earnings per share for fiscal year 2017 were $0.83 per share compared to $1.48 per share last year.

For the fourth quarter of fiscal 2017, sales were up 14% to $10,017,216 as compared to $8,783,779 in the fourth quarter of last fiscal year. Income from operations for the fourth quarter of 2017 was $1,087,936 versus $983,697 in the same period last year. Net income after taxes was $829,268 versus last year & #8217;s results of $720,641. Diluted earnings per share for the fourth quarter were $0.21 per share versus earnings of $0.18 per share last year.

Nobility & #8217;s financial position during fiscal year 2017 remains very strong with cash and cash equivalents and short term investments of $28,537,591 and no outstanding debt. Working capital is $36,403,372 and our ratio of current assets to current liabilities is 7.4:1. Stockholders & #8217; equity is $47,414,297 and the book value per share of common stock increased to $11.86.

Terry Trexler, President, stated, & #8220;The demand for affordable manufactured housing in Florida and the U.S. is improving. According to the Florida Manufactured Housing Association, shipments in Florida for the period from November 2016 through October 2017 were up approximately 6% from the same period last year. Our sales for fiscal 2018 continues to look positive. Shipment of homes in our market area should improve and, if we can adequately control the material and labor costs increases that the Company is experiencing because of the improvements in the total housing picture, then earnings should also improve. Constrained consumer credit and the lack of lenders in our industry, partly as a result of an increase in government regulations, still affects our results by limiting many affordable manufactured housing buyers from purchasing homes.

We understand that during this economic environment, maintaining our strong financial position is vital for future growth and success. Because of the recent years of very challenging business conditions in our market area, management will continue to evaluate all expenses and react in a manner consistent with maintaining our strong financial position, while exploring opportunities to expand our distribution and manufacturing operations.

Our many years of experience in the Florida market, combined with home buyers & #8217; 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. & #8221;

On June 5, 2017 the Company celebrated its 50th anniversary in business specializing in the design and production of quality, affordable manufactured homes. With multiple retail sales centers, an insurance agency subsidiary, and an investment in a retirement manufactured home community, 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 OR .

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 & #8217;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
November 4, November 5, 2017 2016 (Unaudited) Assets Current assets: Cash and cash equivalents $ 27,910,504 $ 24,562,638 Short-term investments 627,087 481,025 Accounts receivable - trade 2,934,300 2,641,763 Note receivable 500,000 500,000 Mortgage notes receivable 13,495 9,717 Inventories 7,505,681 6,969,081 Pre-owned homes, net 1,141,863 1,295,694 Property held for sale - 213,437 Prepaid expenses and other current assets 820,224 638,939 Deferred income taxes 609,629 556,773 Total current assets 42,062,783 37,869,067 Property, plant and equipment, net 4,304,771 4,063,711 Pre-owned homes, net 815,358 1,733,610 Interest receivable 101,301 48,376 Note receivable, less current portion 1,134,086 2,030,000 Mortgage notes receivable, less current portion 240,297 174,270 Other investments 1,471,029 1,367,496 Property held for sale 599,455 386,018 Cash surrender value of life insurance 3,262,848 3,085,916 Other assets 156,287 156,287 Total assets $ 54,148,215 $ 50,914,751 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 849,782 $ 835,279 Accrued compensation 624,989 682,815 Accrued expenses and other current liabilities 1,127,397 1,123,698 Income taxes payable 260,416 759,128 Customer deposits 2,796,827 1,706,795 Total current liabilities 5,659,411 5,107,715 Deferred income taxes 1,074,507 1,140,529 Total liabilities 6,733,918 6,248,244 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 10,669,231 10,663,348 Retained earnings 46,167,528 43,458,271 Accumulated other comprehensive income 412,233 266,171 Less treasury stock at cost, 1,367,338 shares in 2017 and 1,361,300 shares in 2016 (10,371,186 ) (10,257,774 ) Total stockholders' equity 47,414,297 44,666,507 Total liabilities and stockholders' equity $ 54,148,215 $ 50,914,751
NOBILITY HOMES, INC. Consolidated Statements of Comprehensive Income Unaudited
Three Months Ended Twelve Months Ended Nov 4, Nov 5, Nov 4, Nov 5, 2017 2016 2017 2016 Net sales $ 10,017,216 $ 8,783,779 $ 37,543,071 $ 34,053,290 Cost of goods sold (7,742,677 ) (6,750,198 ) (28,881,992 ) (26,117,155 ) Gross profit 2,274,539 2,033,581 8,661,079 7,936,135 Selling, general and administrative expenses (1,186,603 ) (1,049,884 ) (4,305,205 ) (3,782,336 ) Operating income 1,087,936 983,697 4,355,874 4,153,799 Other income Interest income 44,266 35,556 149,613 112,802 Undistributed earnings in joint venture - Majestic 21 22,775 26,233 103,533 123,772 Proceeds received under escrow arrangement 205,724 - 504,548 788,566 Gain on sale of investment in retirement community - - - 3,990,000 Miscellaneous 21,271 (10,107 ) 54,682 15,297 Total other income 294,036 51,682 812,376 5,030,437 Income before provision for income taxes 1,381,972 1,035,379 5,168,250 9,184,236 Income tax expense (552,704 ) (314,738 ) (1,858,267 ) (3,219,042 ) Net income 829,268 720,641 3,309,983 5,965,194 Other comprehensive income (loss) Unrealized investment gain (loss) (3,644 ) 58,874 146,062 18,447 Comprehensive income $ 825,624 $ 779,515 $ 3,456,045 $ 5,983,641 Weighted average number of shares outstanding: Basic 3,997,569 4,013,583 4,002,436 4,021,019 Diluted 3,999,085 4,015,159 4,003,768 4,022,083 Net income per share: Basic $ 0.21 $ 0.18 $ 0.83 $ 1.48 Diluted $ 0.21 $ 0.18 $ 0.83 $ 1.48

Source: Nobility Homes, Inc.

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