Nobility Homes, Inc. Announces Third Quarter 2024 Sales and Earnings

OCALA, FL / ACCESSWIRE / September 10, 2024 / Today, Nobility Homes, Inc. (OTCQX: NOBH) announced its sales and earnings for its third quarter ended August 3, 2024.

Revenue for the third quarter of 2024 was $13.8 million, compared to $14.7 million in the third quarter of 2023. Operating income for the third quarter of 2024 was $2.6 million, compared to $3.1 million in the same period last year. Net income after tax was $2.2 million, compared to $2.7 million in the same period last year. Diluted earnings for the third quarter of 2024 were $0.67 per share, compared to $0.80 per share last year.

For the first nine months of fiscal 2024, sales were $40.1 million, compared to $48.6 million for the first nine months of 2023. Operating income for the first nine months of 2024 was $7.5 million, compared to $10.7 million for the same period last year. Net income after tax was $6.5 million, compared to $8.6 million last year. Diluted earnings were $2.00 per share, compared to $2.56 per share last year.

Nobility’s financial position for the first nine months of 2024 remains strong with cash and cash equivalents, certificates of deposit and short-term investments of $26.5 million and no outstanding debt. Working capital is $40.8 million and our current asset to liability ratio is 5.1:1. Shareholders’ equity is $54.5 million and book value per common share is $16.67.

Terry Trexler, President, said, “Net sales decreased in the first nine months of 2024 compared to last year due to fewer retail homes sold and manufactured. Additionally, we are building and selling homes at lower price points due to higher mortgage interest rates which we believe are negatively impacting sales compared to prior years. There also remain delays in receiving certain key production materials from suppliers, backorders, price increases and labor shortages that continue to cause delays in the completion of homes at our manufacturing facility and in the installation process of retail homes in the field. Our inability to deliver and install homes to customers in a timely manner has negatively impacted sales and earnings. We expect these challenges to continue throughout fiscal 2024 and potentially into 2025. The Company also continues to experience inflation on certain building products, which is driving up our material and labor costs, which may increase the wholesale and retail selling prices of our homes. We believe that potential customers have delayed or deferred their purchasing decisions in light of the interest rate environment.

Current demand for affordable manufactured housing in Florida and the United States has slowed due to the interest rate environment and increasing costs associated with mortgages. According to the Florida Manufactured Housing Association, industry shipments in Florida for the period November 2023 through July 2024 are down approximately 3% compared to the same period last year.

“Maintaining our strong financial position is critical to our future growth and success. Our many years of experience in the Florida market, combined with buyers’ growing need for more affordable housing, should serve the Company well in the years ahead. Management remains confident that our specific geographic market is one of the best long-term growth areas in the country.”

On June 5, 2024, the Company celebrated its 57^th anniversary company specializing in the design and production of quality, affordable manufactured homes. With multiple retail locations in Florida for over 34 years and an insurance agency subsidiary, we are the only vertically integrated manufactured home company headquartered in Florida.

MANAGEMENT WILL NOT BE CONDUCTING A CONFERENCE CALL. IF YOU HAVE ANY QUESTIONS PLEASE CALL TERRY OR TOM TREXLER AT 800-476-6624 EXT 121 OR [email protected] OR [email protected]

Certain statements contained in this report are forward-looking statements within the meaning of federal securities laws. Although Nobility believes that the amounts and expectations reflected in these forward-looking statements are based on reasonable assumptions, there are risks and uncertainties that could cause actual results to differ materially from expectations. These risks and uncertainties include, but are not limited to, the potential adverse impact on our business caused by competitive pricing pressures at the wholesale and retail levels, inflation, increased costs of materials (including forest products) or availability of materials due to supply chain disruptions (such as current inflation in forest products and supply issues for insulation, shingles, vinyl siding and PVC pipe), changes in market demand, increases in interest rates, availability of financing to retail and wholesale buyers, 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, dependence on the Florida economy, the impact of labor shortages, the impact of material shortages, increased cost of workforce, the cyclical nature of the manufactured housing industry, the impact of rising fuel costs, catastrophic events impacting insurance costs, the availability of insurance coverage for various risks to Nobility, market demographics, management’s ability to attract and retain management and key personnel, increased global tensions, market disruptions resulting from terrorist attacks or other events such as a pandemic, any armed conflict involving the United States and the impact of inflation.

HOUSES OF NOBILITY, INC.
Condensed consolidated balance sheets

		August 3,				November 4,
		2024				2023
		(Unverified)
Assets
Current assets:
Cash and cash equivalents		$	13,052,050			$	13,879,358
Certificates of deposit			12,888,834				10 204 287
Short term investments			618 228				527,899
Customer accounts – trade			2,053,550				2,864,808
Mortgage notes receivable			3,533				4,391
Income tax receivable			–				–
Inventories			20,387,489				21,518,098
Prepaid expenses and other current assets			1,646,061				1,733,179
Total current assets			50 649 745				50 732 020
Tangible fixed assets, net			8,321,580				8,268,976
Mortgage receivables, less current portion			143 313				142,761
Other investments			419 933				1,953,199
Property held for resale			65,470				26,590
Deferred income taxes			113 511				90 274
Surrender value of life insurance			4,463,734				4,331,659
Other assets			156 287				156 287
Total assets		$	64 333 573			$	65 701 766
Liabilities and equity
Current liabilities:
Accounts payable		$	838 561			$	819 143
Accumulated compensation			972 913				992 622
Accrued expenses and other current liabilities			1,234,530				1,809,335
Income taxes payable			848 089				661 261
Customer deposits			5,948,020				8,703,107
Total current liabilities			9,842,113				12,985,468
Commitments and contingencies
Equity:
Preferred shares, par value $0.10, 500,000 shares
authorized; none issued and in circulation			–				–
Common shares, par value $0.10, 10,000,000
authorized shares; 5,364,907 shares issued;
3,268,829 and 3,269,075 shares outstanding, respectively			536 491				536 491
Additional paid-up capital			11,097,178				10,964,985
Retained earnings			72 616 229				70 969 764
Less treasury shares at cost price, 2,096,078 and
2,095,832 shares, respectively			(29,758,438	)			(29,754,942	)
Total equity			54 491 460				52 716 298
Total liabilities and equity		$	64 333 573			$	65 701 766

HOUSES OF NOBILITY, INC.
Condensed Consolidated Statements of Income
(Unverified)

		Three months completed								Nine months completed
		August 3,				August 5,				August 3,				August 5,
		2024				2023				2024				2023
Net sales		$	13,803,340			$	14,654,789			$	40,099,316			$	48,599,139
Cost of sales			(9,196,740	)			(9,540,399	)			(26,589,976	)			(31,659,842	)
Gross profit			4,606,600				5,114,390				13,509,340				16,939,297
Selling, general and administrative expenses			(2,032,973	)			(1,987,782	)			(5,976,683	)			(6,238,457	)
Operating result			2,573,627				3,126,608				7,532,657				10,700,840
Other income (expenses)
Interest income			318 253				203,972				836 113				513 987
Retained earnings in joint venture – Majestic 21			24,914				27,828				67,623				76 276
Product received under an escrow agreement			47,339				115,641				147 155				209,806
Increase (decrease) in fair value of equity investments			(11,214	)			81,078				90 329				(47,939	)
Gain on sale of tangible fixed assets			3,000				–				3,000				–
Miscellaneous			(28,706	)			16,404				96 422				42,766
Total other income			353,586				444 923				1,240,642				794 896
Profit before provision for income tax			2,927,213				3,571,531				8,773,299				11,495,736
Income tax charge			(741 901	)			(905 203	)			(2,223,591	)			(2,913,592	)
Net income		$	2,185,312			$	2,666,328			$	6,549,708			$	8,582,144
Weighted average number of shares outstanding:
Basic			3,268,829				3,323,874				3,268,829				3,354,981
Diluted			3,277,856				3,328,875				3,278,742				3,357,424
Net profit per share:
Basic		$	0.67			$	0.80			$	2.00			$	2.56
Diluted		$	0.67			$	0.80			$	2.00			$	2.56

SOURCE: Nobility Homes, Inc.

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