Nobility Homes, Inc. Announces Sales and Earnings for Its Third Quarter 2009

• Press Release
• Source: Nobility Homes, Inc.
• On 9:00 am EDT, Thursday September 10, 2009

OCALA, Fla., Sept. 10 /PRNewswire-FirstCall/ -- Today Nobility Homes, Inc. (Nasdaq: NOBH - News) announced sales and earnings results for its third quarter ended August 1, 2009. Sales for the third quarter of 2009 were $3,082,551 as compared to $7,395,885 recorded in third quarter of 2008. Loss from operations for the third quarter of 2009 was $299,019 versus income of $213,055 in the same period a year ago. Net income after taxes was $21,862 as compared to income of $397,561 for the same period last year. The net income after taxes of $21,862 for the third quarter of 2009 came after deducting $85,306 in non-cash losses for our investment in two retirement community limited partnerships and included a tax benefit of $278,860. Income for the third quarter of 2009 was $0.01 per diluted share compared to earnings of $0.10 per diluted share last year.

For the first nine months of fiscal 2009, sales were $9,032,850 as compared to sales of $24,265,336 in the first nine months of 2008. Loss from operations for the first nine months of 2009 was $1,703,084 versus income of $1,486,293 in the first nine months of 2008. Net loss after taxes was $607,726 as compared to income of $1,606,284 for the same nine month period last year. The net loss after taxes of $607,726 for the first nine months of 2009 came after deducting $273,343 in non-cash losses for our investment in two retirement community limited partnerships and included a tax benefit of $763,418. Loss for the first nine months of 2009 was ($0.15) per share compared to diluted earnings of $0.39 per share last year.

Nobility's financial position during fiscal year 2009 remains strong with cash and cash equivalents, short and long-term investments of $11,023,767 and no outstanding debt. Working capital is $19,953,772 and our ratio of current assets to current liabilities is 26.9:1. Stockholders' equity is $41,672,327 and the book value per share of common stock is $10.27. The Company repurchased in the open market 32,390 shares of its common stock during the first nine months of 2009. 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 third quarter of 2009, 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 the period of November 2008 through July 2009 were down approximately 56% from the same period last year. Fiscal year 2009 is Nobility's 42nd year of operating in our market area and is proving to be our most challenging. 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 facing our country, our industry, and Nobility.

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 strong balance sheet.

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 strong operating leverage inherent in the Company, we expect to out-perform the industry. For the remainder of fiscal 2009, 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 Nobility's 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 significant 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.

MANAGEMENT WILL NOT HOLD A CONFERENCE CALL. IF YOU HAVE ANY QUESTIONS, PLEASE CALL TERRY OR TOM TREXLER @ 800-476-6624 EXT 221 OR TERRY@NOBILITYHOMES.COM OR TOM@NOBILITYHOMES.COM

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)

                                                     August 1,  November 1,
                                                       2009         2008
                                                       ----         ----

    Assets
    Current assets:
      Cash and cash equivalents                     $2,996,853   $8,649,724
      Short-term investments                           252,147      168,210
      Accounts receivable                              595,505      654,529
      Inventories                                   15,316,185   12,051,361
      Prepaid income taxes                                   -      438,398
      Income tax receivable                            901,248            -
      Prepaid expenses and other current assets        451,008      433,166
      Deferred income taxes                            210,858      298,408
                                                       -------      -------
           Total current assets                     20,723,804   22,693,796
                                                    ----------   ----------

    Property, plant and equipment, net               4,144,029    4,342,401
    Long-term investments                            7,774,767    8,140,226
    Other investments                                6,962,592    7,222,276
    Deferred income taxes                              454,252      334,424
    Other assets                                     2,382,915    2,397,939
                                                     ---------    ---------
           Total assets                            $42,442,359  $45,131,062
                                                   ===========  ===========

    Liabilities and Stockholders' Equity
    Current liabilities:
      Accounts payable                                 $97,144     $186,477
      Accrued compensation                              55,259      201,155
      Accrued expenses and other current
       liabilities                                     338,590      355,218
      Customer deposits                                279,039      717,951
                                                       -------      -------
           Total current liabilities                   770,032    1,460,801
                                                       -------    ---------

    Uncertain tax liabilities                                -      275,000
                                                           ---      -------
           Total liabilities                           770,032    1,735,801
                                                       -------    ---------

    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                 10,292,975   10,178,398
         Retained earnings                          40,342,028   41,968,423
         Accumulated other comprehensive income         52,526          175
         Less treasury stock at cost, 1,308,763
          and 1,276,373 shares, respectively,
          in 2009 and 2008                          (9,551,693)  (9,288,226)
                                                    ----------   ----------
           Total stockholders' equity               41,672,327   43,395,261
                                                    ----------   ----------
           Total liabilities and stockholders'
            equity                                 $42,442,359  $45,131,062
                                                   ===========  ===========



                              NOBILITY HOMES, INC.
     Consolidated Statements of Operations and Comprehensive Income (Loss)
                                  (Unaudited)


                             Three Months Ended       Nine Months Ended
                             ------------------       -----------------
                             August 1,  August 2,    August 1,   August 2,
                               2009       2008         2009        2008

    Net sales              $3,082,551  $7,395,885  $9,032,850  $24,265,336

    Cost of goods sold     (2,396,635) (5,435,537) (7,121,675) (17,629,032)
                           ----------  ----------  ----------  -----------

        Gross profit          685,916   1,960,348   1,911,175    6,636,304

    Selling, general and
     administrative
     expenses                (984,935) (1,747,293) (3,614,259)  (5,150,011)
                             --------  ----------  ----------   ----------

        Operating income
         (loss)              (299,019)    213,055  (1,703,084)   1,486,293
                             --------     -------  ----------    ---------

    Other income (expense):
      Interest income          64,380     118,993     279,218      389,923
      Undistributed earnings
       in joint venture -
       Majestic 21             45,426      60,035     137,159      228,730
      Earnings from finance
       revenue sharing
       agreement                    -     191,200     157,700      536,300
      Undistributed losses
       from investments in
       retirement community
       limited partnership    (85,306)     10,646    (273,343)    (168,196)
      Miscellaneous            17,521      16,163      31,206       20,405
                               ------      ------      ------       ------
        Total other income     42,021     397,037     331,940    1,007,162
                               ------     -------     -------    ---------

    Income (loss) before
     income tax benefit
     (expense)               (256,998)    610,092  (1,371,144)   2,493,455

    Income tax benefit
     (expense)                278,860    (212,531)    763,418     (887,171)
                              -------    --------     -------     --------

        Net income (loss)      21,862     397,561    (607,726)   1,606,284

    Other comprehensive
     income (loss), net of
     tax:
      Unrealized investment
       gain  (loss)            58,716     (29,271)     52,351      (97,114)
                               ------     -------      ------      -------

      Comprehensive
       income (loss)          $80,578    $368,290   $(555,375)  $1,509,170
                              =======    ========   =========   ==========

    Weighed average number
     of shares outstanding:
      Basic                 4,056,144   4,087,639   4,066,886    4,087,442
      Diluted               4,057,917   4,092,094   4,066,886    4,092,452

    Earnings (loss) per
     share:
      Basic                     $0.01       $0.10      $(0.15)       $0.39
      Diluted                   $0.01       $0.10      $(0.15)       $0.39

    Cash dividends paid
     per common share              $-          $-       $0.25        $0.50

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