NOBH 8-K
Nobility Homes Inc (NOBH)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
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Securities registered pursuant to Section 12(b) of the Act: None
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). Emerging growth company
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| ITEM 2.02 | Results of Operations and Financial Condition |
On September 10, 2024, Nobility Homes, Inc. (the “Company”) issued a press release regarding sales and earnings for its third quarter ended August 3, 2024. The text of the press release is attached as Exhibit 99.1.
| ITEM 9.01 | Financial Statements and Exhibits |
| (d) | Exhibits: |
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 hereunto duly authorized.
| NOBILITY HOMES, INC. | ||||||
| September 11, 2024 | By: | /s/ Lynn J. Cramer, Jr. | ||||
| Lynn J. Cramer, Jr., Treasurer | ||||||
| and Principal Accounting Officer | ||||||
Exhibit 99.1
NOBILITY HOMES, INC. ANNOUNCES SALES AND EARNINGS FOR ITS THIRD QUARTER 2024
Ocala, FL…September 10, 2024 - Today Nobility Homes, Inc. (OTCQX: NOBH) announced sales and earnings for its third quarter ended August 3, 2024.
Sales for the third quarter of 2024 were $13.8 million as compared to $14.7 million recorded in the third quarter of 2023. Income from operations for the third quarter of 2024 was $2.6 million versus $3.1 million in the same period a year ago. Net income after taxes was $2.2 million as compared to $2.7 million for 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 as compared to $48.6 million for the nine months of 2023. Income from operations for the nine months of 2024 was $7.5 million versus $10.7 million in the same period last year. Net income after taxes was $6.5 million versus last year’s results of $8.6 million. Diluted earnings were $2.00 per share compared to $2.56 per share last year.
Nobility’s financial position for the first nine months 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 ratio of current assets to current liabilities is 5.1:1. Stockholders’ equity is $54.5 million and the book value per share of common stock is $16.67.
Terry Trexler, President, stated, “Net sales decreased in the first nine months of 2024 as compared to last year because of the decrease in the number of retail homes sold and manufactured. In addition, we are building and selling lower-priced homes due to the higher interest rates on mortgages that we believe are negatively impacting sales as compared to the prior years. There also remain delays in the receipt of certain key production materials from suppliers, back orders, price increases and labor shortages which continue to cause delays in the completion of the homes at our manufacturing facility and the set-up process of retail homes in the field. Our inability to timely deliver and set up homes to customers has negatively impacted sales and earnings. We expect these challenges will continue throughout the fiscal year 2024 and potentially into 2025. The Company also continues to experience inflation in some building products resulting in increases to 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 purchasing decisions when considering the interest rate environment.
The current demand for affordable manufactured housing in Florida and the U.S. has slowed due to the interest rate environment and increased costs associated with mortgages. According to the Florida Manufactured Housing Association, shipments for the industry in Florida for the period from November 2023 through July 2024 declined by approximately 3% from the same period last year.
Maintaining our strong financial position is vital for future growth and success. 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, 2024, the Company celebrated its 57th anniversary in business specializing in the design and production of quality, affordable manufactured homes. With multiple retail sales centers 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 HOLD A CONFERENCE CALL. IF YOU HAVE ANY QUESTIONS, PLEASE CALL TERRY OR TOM TREXLER @ 800-476-6624 EXT 121 OR [email protected] OR [email protected]
Certain statements in this report are 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 competitive pricing pressures at both the wholesale and retail levels, inflation, increasing material costs (including forest based products) or availability of materials due to supply chain interruptions (such as current inflation with forest products and supply issues with insulation, shingles, vinyl siding and PVC piping), changes in market demand, increase 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 attacks, or other events such as a pandemic, any armed conflict involving the United States and the impact of inflation.
NOBILITY HOMES, INC.
Condensed Consolidated Balance Sheets
| August 3, | November 4, | |||||||
| 2024 | 2023 | |||||||
| (Unaudited) | ||||||||
| Assets |
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| Current assets: |
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| 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 | ||||||
| Accounts receivable - 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 | ||||||
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| Total current assets |
50,649,745 | 50,732,020 | ||||||
| Property, plant and equipment, net |
8,321,580 | 8,268,976 | ||||||
| Mortgage notes receivable, 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 | ||||||
| Cash surrender value of life insurance |
4,463,734 | 4,331,659 | ||||||
| Other assets |
156,287 | 156,287 | ||||||
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| Total assets |
$ | 64,333,573 | $ | 65,701,766 | ||||
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| Liabilities and Stockholders’ Equity |
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| Current liabilities: |
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| Accounts payable |
$ | 838,561 | $ | 819,143 | ||||
| Accrued 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 | ||||||
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| Total current liabilities |
9,842,113 | 12,985,468 | ||||||
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| Commitments and contingencies |
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| Stockholders’ equity: |
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| 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; 3,268,829 and 3,269,075 shares outstanding, respectively |
536,491 | 536,491 | ||||||
| Additional paid in capital |
11,097,178 | 10,964,985 | ||||||
| Retained earnings |
72,616,229 | 70,969,764 | ||||||
| Less treasury stock at cost, 2,096,078 and 2,095,832 shares, respectively |
(29,758,438 | ) | (29,754,942 | ) | ||||
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| Total stockholders’ equity |
54,491,460 | 52,716,298 | ||||||
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| Total liabilities and stockholders’ equity |
$ | 64,333,573 | $ | 65,701,766 | ||||
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NOBILITY HOMES, INC.
Condensed Consolidated Statements of Income
(Unaudited)
| Three Months Ended | Nine Months Ended | |||||||||||||||
| 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 | ) | ||||||||
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| 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 | ) | ||||||||
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| Operating income |
2,573,627 | 3,126,608 | 7,532,657 | 10,700,840 | ||||||||||||
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| Other income (expense) |
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| Interest income |
318,253 | 203,972 | 836,113 | 513,987 | ||||||||||||
| Undistributed earnings in joint venture - Majestic 21 |
24,914 | 27,828 | 67,623 | 76,276 | ||||||||||||
| Proceeds received under escrow arrangement |
47,339 | 115,641 | 147,155 | 209,806 | ||||||||||||
| Increase (decrease) in fair value of equity investment |
(11,214 | ) | 81,078 | 90,329 | (47,939 | ) | ||||||||||
| Gain on disposal of property, plant and equipment |
3,000 | — | 3,000 | — | ||||||||||||
| Miscellaneous |
(28,706 | ) | 16,404 | 96,422 | 42,766 | |||||||||||
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| Total other income |
353,586 | 444,923 | 1,240,642 | 794,896 | ||||||||||||
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| Income before provision for income taxes |
2,927,213 | 3,571,531 | 8,773,299 | 11,495,736 | ||||||||||||
| Income tax expense |
(741,901 | ) | (905,203 | ) | (2,223,591 | ) | (2,913,592 | ) | ||||||||
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| Net income |
$ | 2,185,312 | $ | 2,666,328 | $ | 6,549,708 | $ | 8,582,144 | ||||||||
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| Weighted average number of shares outstanding: |
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| 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 income per share: |
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| Basic |
$ | 0.67 | $ | 0.80 | $ | 2.00 | $ | 2.56 | ||||||||
| Diluted |
$ | 0.67 | $ | 0.80 | $ | 2.00 | $ | 2.56 | ||||||||