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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.


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
                                                   January 30,    October 31,
                                                      2010           2009
                                                   -----------    -----------
    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
                                                       -------        -------
    Commitments and contingent
    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
                                                     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.

Copyright 2009 PR Newswire. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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