Nobility Homes Inc 10-Q for FY2022 Q1
Nobility Homes Inc (NOBH)
10-Q
2022-03-22
For: 2022-02-05
View Original
Added on
April 06, 2026
About this 10-Q
Nobility Homes Inc filed this 10-Q on March 22, 2022, covering the quarter ended February 5, 2022 (FY2022 Q1).
Headline figures
Quarter ended February 5, 2022, as reported in this filing, compared with the same period a year earlier where the filing states it.
- Revenue
- $10.81M
- up 19.1% from $9.07M a year earlier
- Net income
- $1.16M
- up 8.6% from net income of $1.07M a year earlier
- Diluted EPS
- $0.33
- up 13.8% from $0.29 a year earlier
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
Quarterly Report Pursuant to Section 13 or 15 (d)
of the Securities Exchange Act of 1934
For the quarterly period ended February 5, 2022
Commission File number 000-06506
(Exact name of registrant as specified in its charter)
(State or other jurisdiction of incorporation or organization) |
(I.R.S. Employer Identification No.) | |
(Address of principal executive offices) |
(Zip Code) | |
(352 ) 732-5157
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act: None
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒; No ☐.
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation Yes ☒; No ☐.
S-T
during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a
non-accelerated
filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2
of the Exchange Act. | Large accelerated filer | ☐ | Accelerated filer | ☐ | |||
| ☒ | Smaller reporting company | |||||
| Emerging growth company | ||||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐.
Indicate by check mark whether the registrant is a shell company (as defined in Rule ☒ .
12b-2
of the Exchange Act). Yes ☐; No Indicate the number of shares outstanding of each of the registrant’s classes of common stock, as of the latest practicable date.
Title of Class |
Shares Outstanding on March 22 , 2022 | |
NOBILITY HOMES, INC.
INDEX
Page Number |
||||||
PART I. |
Financial Information |
|||||
Item 1. |
Financial Statements (Unaudited) |
|||||
| 3 | ||||||
| 4 | ||||||
| 5 | ||||||
| 6 | ||||||
| 7 | ||||||
| Item 2. | 11 | |||||
| Item 4. | 14 | |||||
PART II. |
||||||
| Item 2. | 15 | |||||
| Item 6. | 15 | |||||
| Signatures | 16 | |||||
2
NOBILITY HOMES, INC.
Condensed Consolidated Balance Sheets
| February 5, 2022 |
November 6, 2021 |
|||||||
| (Unaudited) | ||||||||
| Assets |
||||||||
| Current assets: |
||||||||
| Cash and cash equivalents |
$ | $ | ||||||
| Certificates of deposit |
||||||||
| Short-term investments |
||||||||
| Accounts receivable - trade |
||||||||
| Note receivable |
||||||||
| Mortgage notes receivable |
||||||||
| Inventories |
||||||||
| Pre-owned homes, net |
||||||||
| Prepaid expenses and other current assets |
||||||||
| |
|
|
|
|||||
| Total current assets |
||||||||
| Property, plant and equipment, net |
||||||||
| Pre-owned homes, net |
||||||||
| Note receivable, less current portion |
||||||||
| Mortgage notes receivable, less current portion |
||||||||
| Mobile home park note receivable |
||||||||
| Other investments |
||||||||
| Operating lease right of use assets |
||||||||
| Cash surrender value of life insurance |
||||||||
| Other assets |
||||||||
| |
|
|
|
|||||
| Total assets |
$ | $ | ||||||
| |
|
|
|
|||||
| Liabilities and Stockholders’ Equity |
||||||||
| Current liabilities: |
||||||||
| Accounts payable |
$ | $ | ||||||
| Accrued compensation |
||||||||
| Accrued expenses and other current liabilities |
||||||||
| Income taxes payable |
||||||||
| Operating lease obligation |
||||||||
| Customer deposits |
||||||||
| |
|
|
|
|||||
| Total current liabilities |
||||||||
| Deferred income taxes |
||||||||
| |
|
|
|
|||||
| Total liabilities |
||||||||
| |
|
|
|
|||||
| Commitments and contingencies |
||||||||
| Stockholders’ equity: |
||||||||
| Preferred stock, $ |
||||||||
| Common stock, $ |
||||||||
| Additional paid in capital |
||||||||
| Retained earnings |
||||||||
| Less treasury stock at cost, |
( |
) | ( |
) | ||||
| |
|
|
|
|||||
| Total stockholders’ equity |
||||||||
| |
|
|
|
|||||
| Total liabilities and stockholders’ equity |
$ | $ | ||||||
| |
|
|
|
|||||
The accompanying notes are an integral part of these condensed consolidated financial statements
3
NOBILITY HOMES, INC.
Condensed Consolidated Statements of Income
(Unaudited)
| Three Months Ended | ||||||||
| February 5, 2022 |
January 30, 2021 |
|||||||
| Net sales |
$ | $ | ||||||
| Cost of sales |
( |
) | ( |
) | ||||
| |
|
|
|
|||||
| Gross profit |
||||||||
| Selling, general and administrative expenses |
( |
) | ( |
) | ||||
| |
|
|
|
|||||
| Operating income |
||||||||
| |
|
|
|
|||||
| Other income (loss): |
||||||||
| Interest income |
||||||||
| Undistributed earnings in joint venture - Majestic 21 |
||||||||
| Proceeds received under escrow arrangement |
||||||||
| (Decrease) increase in fair value of equity investment |
( |
) | ||||||
| Miscellaneous |
||||||||
| |
|
|
|
|||||
| Total other income |
||||||||
| |
|
|
|
|||||
| Income before provision for income taxes |
||||||||
| Income tax expense |
( |
) | ( |
) | ||||
| |
|
|
|
|||||
| Net income |
$ | $ | ||||||
| |
|
|
|
|||||
| Weighted average number of shares outstanding: |
||||||||
| Basic |
||||||||
| Diluted |
||||||||
| Net income per share: |
||||||||
| Basic |
$ | $ | ||||||
| Diluted |
$ | $ | ||||||
The accompanying notes are an integral part of these condensed consolidated financial statements
4
NOBILITY HOMES, INC.
Condensed Consolidated Statements of Changes in Stockholders’ Equity
For the three months ended February 5, 2021 and January 30, 2021
(Unaudited)
| Common Stock Shares |
Common Stock |
Additional Paid-in-Capital |
Retained Earnings |
Treasury Stock |
Total | |||||||||||||||||||
Balance at November 6, 2021 |
$ | $ | $ | $ | ( |
) | $ | |||||||||||||||||
Stock-based compensation |
— | — | ||||||||||||||||||||||
Exercise of employee stock options |
— | ( |
) | — | — | |||||||||||||||||||
Treasury stock purchase |
( |
) |
— |
— |
— |
( |
) |
( |
) | |||||||||||||||
Net income |
— | — | — | — | ||||||||||||||||||||
Balance at February 5, 2022 |
$ | $ | $ | $ | ( |
) | $ | |||||||||||||||||
| Common Stock Shares |
Common Stock |
Additional Paid-in-Capital |
Retained Earnings |
Treasury Stock |
Total | |||||||||||||||||||
Balance at October 31, 2020 |
$ | $ | $ | $ | ( |
) | $ | |||||||||||||||||
Stock-based compensation |
— | — | — | — | ||||||||||||||||||||
Exercise of employee stock options |
— | — | ||||||||||||||||||||||
Net income |
— | — | — | — | ||||||||||||||||||||
Balance at January 30, 2021 |
$ | $ | $ | $ | ( |
) | $ | |||||||||||||||||
The accompanying notes are an integral part of these condensed consolidated financial statements
5
NOBILITY HOMES, INC.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
| Three Months Ended | ||||||||
| February 5, 2022 |
January 30, 2021 |
|||||||
Cash flows from operating activities: |
||||||||
Net income |
$ | $ | ||||||
Adjustments to reconcile net income to net cash provide by operating activities: |
||||||||
Depreciation |
||||||||
Undistributed earnings in joint venture - Majestic 21 |
( |
) | ( |
) | ||||
Decrease (Increase) in fair market value of equity investments |
( |
) | ||||||
Stock-based compensation |
||||||||
Amortization of operating lease right of use assets |
||||||||
Decrease (increase) in: |
||||||||
Accounts receivable - trade |
( |
) | ||||||
Inventories |
( |
) | ( |
) | ||||
Pre-owned homes |
( |
) | ||||||
Prepaid expenses and other current assets |
( |
) | ||||||
Interest receivable |
— | ( |
) | |||||
Income tax receivables |
— | |||||||
(Decrease) increase in: |
||||||||
Accounts payable |
||||||||
Accrued compensation |
( |
) | ||||||
Accrued expenses and other current liabilities |
( |
) | ( |
) | ||||
Income taxes payable |
||||||||
Customer deposits |
( |
) | ||||||
Net cash provided by operating activities |
||||||||
Cash flows from investing activities: |
||||||||
Purchase of property, plant and equipment |
( |
) | ( |
) | ||||
Proceeds from certificates of deposit |
||||||||
Collections on interest receivable |
||||||||
Collections on mortgage notes receivable |
||||||||
Collections on equipment and other notes receivable |
||||||||
Issuance of mobile home park note receivable |
( |
) | — | |||||
Increase in cash surrender value of life insurance |
( |
) | ( |
) | ||||
Net cash provided by investing activities |
||||||||
Cash flows from financing activities: |
||||||||
Proceeds from exercise of employee stock option |
— | |||||||
Reduction of operating lease obligation |
( |
) | ( |
) | ||||
Net cash (used in) provided by financing activities |
( |
) | ||||||
Increase in cash and cash equivalents |
||||||||
Cash and cash equivalents at beginning of year |
||||||||
Cash and cash equivalents at end of quarter |
$ | $ | ||||||
Supplemental financing activity: |
||||||||
Noncash exercise of employee stock options |
$ |
( |
) |
$ |
— |
|||
The accompanying notes are an integral part of these condensed consolidated financial statements
6
Nobility Homes, Inc.
Notes to Condensed Consolidated Financial Statements
(Unaudited)
| Note 1 | Basis of Presentation and Accounting Policies |
The accompanying unaudited condensed consolidated financial statements for the three months ended February 5, 2022 have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission for Form
10-Q.
Accordingly, they do not include all the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. The unaudited financial information included in this report includes all adjustments (consisting of normal recurring adjustments) which are, in the opinion of management, necessary to reflect a fair statement of the results for the interim periods. The results of operations for the three months ended February 5, 2022 are not necessarily indicative of the results of the full fiscal year.
The condensed consolidated financial statements included in this report should be read in conjunction with the financial statements and notes thereto included in the Company’s Annual Report on
Form 10-K
for the fiscal year ended November 6, 2021. | Note 2 | Inventories |
New home inventory is carried at the lower of cost or net realizable value. The cost of finished home inventories determined on the specific identification method is removed from inventories and recorded as a component of cost of sales at the time revenue is recognized. In addition, an allocation of depreciation and amortization is included in cost of goods sold. Under the specific identification method, if finished home inventory can be sold for a profit there is no basis to write down the inventory below the lower of cost or net realizable value.
Other
pre-owned
homes are acquired (Repossessions Inventory) as a convenience to the Company’s joint venture partner, 21st Mortgage Corporation. This inventory has been repossessed by 21st
Mortgage Corporation or through mortgage foreclosure. The Company acquired this inventory at the amount of the uncollected balance of the financing at the time of the foreclosure/repossessions by 21st Mortgage Corporation. The Company records this inventory at cost determined on the specific identification method. All of the refurbishment costs are paid by 21st
Mortgage Corporation. This arrangement assists 21st
Mortgage Corporation with liquidation of their repossessed inventory. The timing of these repurchases by the Company is unpredictable as it is based on the repossessions 21st
Mortgage Corporation incurs in the portfolio. When the home is sold, the Company retains the cost of the home, an interest factor on the cost of the home and a sales commission, from the sales proceeds. Any additional proceeds are paid to 21st
Mortgage. Any shortfall from the proceeds to cover these amounts is paid by 21st
Mortgage to the Company. As the Company has no risk of loss on the sale, there is no valuation allowance necessary for this inventory. New Inventory held at consignment locations by affiliated entities is included in the Company’s inventory on the Company’s condensed consolidated balance sheets. Consigned inventory
was $718,439 and $794,766 as of February 5, 2022 and November 6, 2021, respectively.
Pre-owned
homes are also taken as trade-ins
on new home sales (Trade-in
Inventory). This inventory is recorded at estimated actual wholesale value, which is generally lower than market value, determined on the specific identification method, plus refurbishment costs incurred to date to bring the inventory to a more saleable state. The Trade-in
Inventory amount is reduced where necessary on a unit specific basis by a valuation reserve, which management believes results in inventory being valued at market. 7
Other inventory costs are determined on a
first-in,
first-out
basis. A breakdown of the elements of inventory is as follows:
| February 5, | November 6, | |||||||
| 2022 | 2021 | |||||||
| Raw materials |
$ | $ | ||||||
| Work-in-process |
||||||||
| Inventory consigned to affiliated entities |
||||||||
| Finished homes |
||||||||
| Model home furniture |
||||||||
| |
|
|
|
|||||
| Inventories |
$ | $ | ||||||
| |
|
|
|
|||||
| Pre-owned homes |
$ | $ | ||||||
| Less homes expected to sell in 12 months |
( |
) | ( |
) | ||||
| |
|
|
|
|||||
| Pre-owned homes, long-term |
$ | $ | ||||||
| |
|
|
|
|||||
| Note 3 | Short-term Investments |
The following is a summary of short-term investments (available for sale):
| February 5, 2022 | ||||||||||||||||
| Cost | Gross Unrealized Gains |
Gross Unrealized Losses |
Estimated Fair Value |
|||||||||||||
| Equity securities in a public company |
$ | $ | $ | $ | ||||||||||||
| |
|
|
|
|
|
|
|
|||||||||
| November 6, 2021 | ||||||||||||||||
| Cost | Gross Unrealized Gains |
Gross Unrealized Losses |
Estimated Fair Value |
|||||||||||||
| Equity securities in a public company |
$ | $ | $ | $ | ||||||||||||
| |
|
|
|
|
|
|
|
|||||||||
The fair values were estimated based on quoted market prices in active markets at each respective period end.
8
| Note 4 | Fair Value of Financial Instruments |
The carrying amount of cash and cash equivalents, accounts and notes receivable, accounts payable and accrued expenses approximates fair value because of the short maturity of those instruments.
The Company accounts for the fair value of financial investments in accordance with FASB Accounting Standards Codification (ASC) No. 820 “Fair Value Measurements” (ASC 820).
ASC 820 defines fair value as the price that would be received upon the sale of an asset or paid to transfer a liability (i.e. exit price) in an orderly transaction between market participants at the measurement date. ASC 820 requires disclosures that categorize assets and liabilities measured at fair value into one of three different levels depending on the assumptions (i.e. inputs) used in the valuation. Financial assets and liabilities are classified in their entirety based on the lowest level of input significant to the fair value measurement. The ASC 820 fair value hierarchy is defined as follows:
| • | Level 1 - Valuations are based on unadjusted quoted prices in active markets for identical assets or liabilities. |
| • | Level 2 - Valuations are based on quoted prices for similar assets or liabilities in active markets, or quoted prices in markets that are not active for which significant inputs are observable, either directly or indirectly. |
| • | Level 3 - Valuations are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. Inputs reflect management’s best estimate of what market participants would use in valuing the asset or liability at the measurement date. |
The following tables represent the Company’s financial assets and liabilities which are carried at fair value.
| February 5, 2022 | ||||||||||||
| Level 1 | Level 2 | Level 3 | ||||||||||
Equity securities in a public company |
$ | $ | $ | |||||||||
| November 6, 2021 | ||||||||||||
| Level 1 | Level 2 | Level 3 | ||||||||||
Equity securities in a public company |
$ | $ | $ | |||||||||
| Note 5 | Net Income per Share |
These financial statements include “basic” and “diluted” net income per share information for all periods presented. The basic net income per share is calculated by dividing net income by the weighted-average number of shares outstanding. The diluted net income per share is calculated by dividing net income by the weighted-average number of shares outstanding, adjusted for dilutive common shares.
9
| Note 6 | Revenues by Products and Service |
The Company operates in one business segment, which is manufactured housing and ancillary services. The Company considers there to be revenue concentration risks for distribution of its products where net product revenues exceed 10% of consolidated net product revenues. The concentration of the Company’s distribution net product revenues below may have a material adverse effect on the Company’s revenues and results of operations if sales in the respective distribution channels experience difficulties.
Revenues by net sales from manufactured housing,
pre-owned
homes and insurance agent commissions are as follows: | Three Months Ended | ||||||||
| February 5, | January 30, | |||||||
| 2022 | 2021 | |||||||
Manufactured housing |
||||||||
Homes sold through Company owned sales centers |
$ | $ | ||||||
Homes sold to independent dealers |
||||||||
Homes sold through manufactured home parks |
||||||||
| $ | $ | |||||||
Pre-owned homes |
||||||||
Insurance agent commissions |
||||||||
Total net sales |
$ | $ | ||||||
10
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Results of Operations
Total net sales in first quarter of 2022 increased 19% to $10,808,270 compared to $9,071,511 in first quarter of 2021. The Company reported net income of $1,157,034 in first quarter of 2022, compared to a net income of $1,065,765 in first quarter 2021. According to the Florida Manufactured Housing Association, shipments for the industry in Florida for the period from November 2021 through January 2022 were up approximately 24% from the same period last year. During first quarter of 2022, we continued to experience the negative impact of limitations being placed on certain key production materials from suppliers, the delay or lack of key components from vendors as well as back orders, delayed shipments, price increases and labor shortages. Production has incurred shortages in many building products, which has limited production and delayed the completion of the homes both at the manufacturing plant and the set up process in the field. In addition, we have continued to experience record inflation in most building products, resulting in increases to our material and labor costs and a corresponding decrease in gross profits. We expect that these challenges will continue for much of 2022 and potentially beyond until the industry supply chain normalizes.
The following table summarizes certain key sales statistics and percent of gross profit.
| Three Months Ended | ||||||||
| February 5, | January 30, | |||||||
| 2022 | 2021 | |||||||
| New homes sold through Company owned sales centers |
87 | 82 | ||||||
| Pre-owned homes sold through Company owned sales centers |
6 | 1 | ||||||
| Homes sold to independent dealers |
10 | 40 | ||||||
| Total new factory built homes produced |
92 | 150 | ||||||
| Average new manufactured home price - retail |
$ | 107,281 | $ | 88,250 | ||||
| Average new manufactured home price - wholesale |
$ | 63,781 | $ | 47,515 | ||||
| As a percent of net sales: |
||||||||
| Gross profit from the Company owned retail sales centers |
18 | % | 18 | % | ||||
| Gross profit from the manufacturing facilities - including intercompany sales |
13 | % | 15 | % | ||||
Maintaining our strong financial position is vital for future growth and success. Because of very challenging business conditions during economic recessions 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’ 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.
On June 5, 2021 the Company celebrated its 54th anniversary in business specializing in the design and production of quality, affordable manufactured homes. With multiple retail sales centers in Florida for over 31 years and an insurance agency subsidiary, we are the only vertically integrated manufactured home company headquartered in Florida.
11
Insurance agent commission revenues in first quarter of 2022 were $66,988 compared to $65,971 in first quarter of 2021. Revenues are generated by new and renewal policies being written which affects agent commission earned. The Company establishes appropriate reserves for policy cancellations based on numerous factors, including past transaction history with customers, historical experience and other information, which is periodically evaluated and adjusted as deemed necessary. In the opinion of management, no reserve was deemed necessary for policy cancellations at February 5, 2022 and November 6, 2021.
Gross profit as a percentage of net sales was 25% in first quarter of 2022 compared to 28% for first quarter of 2021. The gross profit in first quarter of 2022 was $2,728,228 compared to $2,497,447 in first quarter of 2021. The gross profit is dependent on the sales mix of wholesale and retail homes and number of
pre-owned
homes sold. The reduction in gross profit as a percentage of net sales is primary due to the continued inflation, shortages in certain building products, labor shortages and increased labor cost. Selling, general and administrative expenses as a percent of net sales was 13% in first quarter of 2022 compared to 14% in first quarter of 2021. Selling, general and administrative expenses in first quarter of 2022 was $1,416,543 compared to $1,273,381 in first quarter of 2021. The dollar increase in expenses in 2022 were the direct results of increases to variable employee benefits compensation due to the increase in sales.
We earned interest income of $74,680 for first quarter of 2022 compared to $30,656 for first quarter of 2021. The increase is primarily due to the interest earned from the sale of
pre-owned
(repossessed) inventory acquired from the Company’s joint venture partner, 21st Mortgage Corporation. When the home is sold, the Company retains an interest factor on the cost of the homes from the sales proceeds. Our earnings from Majestic 21 in first quarter of 2022 were $12,557 compared to $13,708 for first quarter of 2021. The earnings from Majestic 21 represent the allocation of profit and losses which are owned 50% by 21st Mortgage Corporation and 50% by the Company. The earnings from the Majestic 21 loan portfolio will continue to decrease due to the amortization, maturity and payoff of the loans.
We received distributions of $118,045 in first quarter of 2022 compared to $45,868 in first quarter of 2021. The distributions are from an escrow arrangement related to a Finance Revenue Sharing Agreement between 21
st
Mortgage Corporation and the Company. The distributions from the escrow arrangement, relates to certain loans financed by 21st
Mortgage Corporation, are recorded as income by the Company when received. The Company realized
pre-tax
income in first quarter of 2022 of $1,526,430 as compared to $1,401,574 in first quarter of 2021. The Company recorded an income tax expense in the amount of $369,396 in first quarter of 2022 as compared to $335,809 in first quarter 2021.
We reported net income of $1,157,034 for first quarter of 2022 or $0.33 per basic and diluted share, compared to $1,065,765 or $0.29 per basic and diluted share, for first quarter of 2021.
Liquidity and Capital Resources
Cash and cash equivalents were $38,932,257 at February 5, 2022 compared to $36,126,059 at November 6, 2021. Certificates of deposit were $0 at February 5, 2022 compared to $2,093,015 at November 6, 2021. Short-term investments were $617,835 at February 5, 2022 compared to $621,928 at November 6, 2021. Working capital was $37,315,738 at February 5, 2022 as compared to $35,563,355 at November 6, 2021. We own the entire inventory for our Prestige retail sales centers, which includes new and
pre-owned
homes, and do not incur any third party floor plan financing expenses. As of February 5, 2022 the Company has incurred approximately $112,000 of the estimated construction cost of the approximately $1.1 allocated to build an 11,900 square foot frame shop on the Company’s property in Ocala, Florida. 12
The Company currently has no line of credit facility and no debt and does not believe that such a facility is currently necessary to its operations. The Company also has approximately $4.0 million of cash surrender value of life insurance which it may be able to access as an additional source of liquidity though the Company has not currently viewed this to be necessary. As of February 5, 2022, the Company continued to report a strong balance sheet which included total assets of approximately $66.9 million which was funded primarily by stockholders’ equity of approximately $50.5 million.
Critical Accounting Policies and Estimates
In Item 7 of our Form
10-K,
under the heading “Critical Accounting Policies and Estimates,” we have provided a discussion of the critical accounting policies and estimates that management believes affect its more significant judgments and estimates used in the preparation of our Consolidated Financial Statements. No significant changes have occurred since that time. Forward-Looking Statements
Certain statements in this report are unaudited or forward-looking statements within the meaning of the federal securities laws. Although Nobility believes that the amounts and 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, the potential adverse impact on our business caused by the
COVID-19
pandemic or other health pandemics, competitive pricing pressures at both the wholesale and retail levels, inflation, increasing material costs (including forest based products) or availability of materials due to potential supply chain interruptions (such as current inflation with forest products and supply issues with vinyl siding and PVC piping), 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, any armed conflict involving the United States and the impact of inflation. 13
Item 4. Controls and Procedures
Evaluation of Disclosure Controls and Procedures
Changes in Internal Control over Financial Reporting.
14
Part II. OTHER INFORMATION AND SIGNATURES
There were no reportable events for Item 1 and Items 3 through 5.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.
In September 2021 the Company’s Board of Directors authorized 200,000 shares to be repurchased during fiscal year 2022 in the open market. No shares were repurchased during the first quarter ended February 5, 2022.
Item 6. Exhibits
| 31. (a) | Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act and Rule 13a-14(a) or 15d-14(a) under the Securities Exchange Act of 1934 | |
| (b) | Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act and Rule 13a-14(a) or 15d-14(a) under the Securities Exchange Act of 1934 | |
| 32. (a) | Written Statement of Chief Executive Officer Pursuant to 18 U.S.C. §1350 | |
| (b) | Written Statement of Chief Financial Officer Pursuant to 18 U.S.C. §1350 | |
| 101. | Interactive data filing formatted in IXBRL | |
| 104. | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101 | |
15
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| NOBILITY HOMES, INC. | ||||||
| DATE: March 22, 2022 | By: | /s/ Terry E. Trexler | ||||
| Terry E. Trexler, Chairman, | ||||||
| President and Chief Executive Officer | ||||||
| DATE: March 22, 2022 | By: | /s/ Thomas W. Trexler | ||||
| Thomas W. Trexler, Executive Vice President, | ||||||
| and Chief Financial Officer | ||||||
| DATE: March 22, 2022 | By: | /s/ Lynn J. Cramer, Jr. | ||||
| Lynn J. Cramer, Jr., Treasurer | ||||||
| and Principal Accounting Officer | ||||||
16