Nobility Announces Sales and Earnings 4th Quarter 2008
Sat 12/20/08 01:00:18 am
Press Release
OCALA, Fla., Dec.
18 -- Today Nobility Homes, Inc. (Nasdaq:
NOBH) announced sales and
earnings results for its fiscal year ended November 1, 2008.
Sales for fiscal year 2008 were $30,065,022 as compared to
$40,622,897 recorded in fiscal year 2007. Income from operations
for fiscal year 2008 was $1,615,141 versus
$4,323,956 in the same period a year ago. Net income after taxes
was $1,822,156 as compared to $4,081,660 for the
same period last year. The net income after taxes of $1,822,156
for fiscal year 2008 was after deducting $468,828 in non-cash
losses for our investment in two retirement community limited partnerships.
Diluted earnings per share for fiscal year 2008 were $.45 per
share compared to $1.00 per share last year.
For the fourth quarter of fiscal 2008, sales were
$5,799,686 as compared to sales of $10,756,636 in
the fourth quarter of last fiscal year. Income from operations for the fourth
quarter of 2008 was $128,848 versus $1,267,012 in
the same period last year. Net income after taxes was $215,872
versus last year's results of $1,126,387. The net income after
taxes of $215,872 for fourth quarter of 2008 was after deducting
$300,632 in non-cash losses for our investment in two retirement
community limited partnerships. Diluted earnings per share for the fourth
quarter were $0.05 per share versus diluted earnings of
$0.28 per share last year.
Nobility's financial position during fiscal year 2008 remains
very strong with cash and cash equivalents, short and long-term investments of
$16,958,160 and no outstanding debt. Working capital is
$21,232,995 and our ratio of current assets to current
liabilities is 15.2:1. Stockholders' equity is $43,395,261 and
the book value per share of common stock increased to $10.61. The
return on average stockholders' equity was 4% and the return on average assets
was 4%. The Company repurchased in the open market 3,855 shares of its common
stock during fiscal year 2008. 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.
The Board of Directors declared an annual cash dividend of
$.25 per common share for fiscal year 2008, as compared to the
$.50 per share declared last fiscal year. The cash dividend is
payable January 12, 2009 to stockholders of record as of
January 2, 2009.
Terry Trexler, President, stated, "Sales and
operations for fiscal year 2008 were adversely impacted by the reduced
manufactured housing shipments in Florida plus the overall
decline in Florida and the nation's housing market.
Industry shipments in Florida for the period of
November 2007 through October 2008 were down
approximately 30% from the same period last year. Although the current overall
housing market has continued to decline this year, the long- term demographic
trends still favor strong growth in the Florida market area
we serve. Management remains convinced that our specific geographic market is
one of the best long-term growth areas in the country and because of the strong
operating leverage inherent in the Company, we expect to continue out-
performing the industry. With a better economy, improved sales in the existing
home market, lower unemployment, continued low interest rates, the continued
tight credit markets and the absence of aggressive mortgage financing of
site-built homes, management expects the demand for our homes to improve.
Management understands that during these challenging conditions within our
industry and our country, the Company's strong financial condition is vital for
future growth and success. Fiscal year 2008 is Nobility's 41st year of operating
in our market area. We have been increasing the level of consumer awareness and
confidence in Nobility and Prestige, our retail organization, with the
introduction and promotion of more special edition homes and by using television
commercials in our various marketing areas within Florida.
The Company has also 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 significant growth
area for Florida in the future."
Nobility Homes, Inc. has specialized for 41 years in the design
and production of quality, affordable manufactured homes at its two plants
located in central Florida. With seventeen 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.
MANAGEMENT WILL HOLD A CONFERENCE CALL ON THURSDAY,
DECEMBER 18, 2008 AT 4:30 PM EASTERN TIME. TO
PARTICIPATE, PLEASE DIAL 888-656-7429. THE PASSCODE FOR THE CALL IS 6640744. YOU
MAY ALSO ACCESS THE CALL AT www.nobilityhomes.com OR
http://www.videonewswire.com/event.asp?id=54258
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
(Unaudited)
November 1, November 3,
2008 2007
Assets
Current assets:
Cash and cash equivalents $8,649,724 $13,696,990
Short-term investments 168,210 544,271
Accounts receivable 654,529 846,868
Inventories 12,051,361 12,696,388
Prepaid income taxes 438,398 13,232
Prepaid expenses and other current
assets 433,166 468,739
Deferred income taxes 335,184 404,776
Total current assets 22,730,572 28,671,264
Property, plant and equipment, net 4,342,401 3,867,279
Long-term investments 8,140,226 10,666,321
Other investments 7,222,276 1,917,661
Deferred income taxes 396,586 49,364
Other assets 2,397,939 2,280,010
Total assets $45,230,000 $47,451,899
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $186,477 $642,484
Accrued compensation 201,155 544,970
Accrued expenses and other current
liabilities 355,218 738,950
Income taxes payable - 134,500
Deferred income taxes 36,776 -
Customer deposits 717,951 1,466,037
Total current liabilities 1,497,577 3,526,941
Deferred income taxes 62,162 -
Uncertain tax liabilities 275,000 -
Total liabilities 1,834,739 3,526,941
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 10,178,398 9,999,799
Retained earnings 41,968,423 42,389,839
Accumulated other comprehensive
income 175 234,724
Less treasury stock at cost,
1,276,373 and 1,277,763 shares,
respectively, in 2008 and 2007 (9,288,226) (9,235,895)
Total stockholders' equity 43,395,261 43,924,958
Total liabilities and
stockholders' equity $45,230,000 $47,451,899
NOBILITY HOMES, INC.
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
(Unaudited)
Three Months Ended Twelve Months Ended
November 1, November 3, November 1, November 3,
2008 2007 2008 2007
Net sales $5,799,686 $10,756,636 $30,065,022 $40,622,897
Cost of goods sold (4,216,654) (7,599,307) (21,845,686) (28,838,274)
Gross profit 1,583,032 3,157,329 8,219,336 11,784,623
Selling, general and
administrative
expenses (1,454,184) (1,890,317) (6,604,195) (7,460,667)
Operating income 128,848 1,267,012 1,615,141 4,323,956
Other income:
Interest income 156,841 230,377 546,764 814,683
Undistributed earnings
in joint venture -
Majestic 21 54,963 53,532 283,693 282,680
Earnings from finance
revenue sharing
agreement 161,600 155,500 697,900 579,700
Undistributed gains
(losses) from
investments in
retirement community
limited partnerships (300,632) - (468,828) -
Miscellaneous 39,372 38,436 59,777 145,498
Total other income 112,144 477,845 1,119,306 1,822,561
Income before provision
for income taxes 240,992 1,744,857 2,734,447 6,146,517
Provision for income
taxes (25,120) (618,470) (912,291) (2,064,857)
Net income 215,872 1,126,387 1,822,156 4,081,660
Other comprehensive
income (loss), net of
tax:
Unrealized investment
gain (loss) (137,435) 41,581 (234,549) 64,905
Comprehensive income $78,437 $1,167,968 $1,587,607 $4,146,565
Weighed average number
of shares outstanding
Basic 4,089,859 4,085,495 4,088,121 4,084,691
Diluted 4,092,655 4,093,256 4,091,645 4,094,001
Earnings per share
Basic $0.05 $0.28 $0.45 $1.00
Diluted $0.05 $0.28 $0.45 $1.00
Cash dividends paid per
common share $- $- $0.50 $0.50
|
SOURCE Nobility Homes,
Inc. |
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Nobility Announces Sales and Earnings 4th Quarter 2008
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