Nobility Homes, Inc. Announces Sales and Earnings for its Fiscal Year 2022
OCALA, FL / ACCESSWIRE / December 22, 2022 / Today Nobility Homes, Inc. (OTCQX:NOBH) announced sales and earnings results for its fiscal year ended November 5, 2022. Sales for fiscal year 2022 increased 14% to $51.5 million as compared to $45.1 million recorded in fiscal year 2021. Income from operations for fiscal year 2022 increased 37% to $8.4 million versus $6.1 million in the same period a year ago. Net income after taxes increased 34% to $7.2 million as compared to $5.4 million for the same period last year. Diluted earnings per share for fiscal year 2022 were $2.10 per share compared to $1.50 per share last year.
For the fourth quarter of fiscal 2022, sales increased 71% to $16.2 million as compared to $9.5 million in the fourth quarter of last fiscal year. Income from operations for the fourth quarter of 2022 increased 93% to $3.2 million versus $1.7 million in the same period last year. Net income after taxes increased 76% to $2.7 million versus last year's results of $1.6 million. Diluted earnings per share for the fourth quarter were $0.81 per share versus earnings of $0.44 per share last year.
Nobility's financial position during fiscal year 2022 remained very strong with cash and cash equivalents, certificates of deposit and short-term investments of $21.1 million and no outstanding debt. Working capital is $33.7 million and our ratio of current assets to current liabilities is 3.3:1. Stockholders' equity is $47.9 million and the book value per share of common stock increased to $14.22.
Terry Trexler, President, stated, "The demand for affordable manufactured housing in Florida and the U.S. is starting to reflect the increased interest rate environment by the Federal Reserve. Although net sales increased during the twelve months ended November 5, 2022 as compared to the same period last year, 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. These supply chain issues have caused delays in the completion of the homes at the manufacturing facility and the set-up process of retail homes in the field, resulting in decreased net sales due to our inability to timely deliver and setup homes to customers. We expect that these challenges will continue for the first six months of fiscal year 2023 or until the industry supply chain normalizes. According to the Florida Manufactured Housing Association, shipments for the industry in Florida for the period from November 2021 through October 2022 were up approximately 23% from the same period last year.
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, 2022, the Company celebrated its 55th anniversary in business specializing in the design and production of quality, affordable manufactured and modular homes. With multiple retail sales centers in Florida for over 32 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 TERRY@NOBILITYHOMES.COM OR TOM@NOBILITYHOMES.COM
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.
NOBILITY HOMES, INC.
Condensed Consolidated Balance Sheets
Cash and cash equivalents
Certificates of deposit
Accounts receivable - trade
Mortgage notes receivable
Income tax receivable
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
Deferred income taxes
Operating lease right of use assets
Cash surrender value of life insurance
Liabilities and Stockholders' Equity
Accrued expenses and other current liabilities
Income taxes payable
Operating lease obligation
Total current liabilities
Deferred income taxes
Commitments and contingencies
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;
3,370,912 and 3,532,100 shares outstanding, respectively
Additional paid in capital
Less treasury stock at cost, 1,993,995 and
1,832,807 shares, respectively
Total stockholders' equity
Total liabilities and stockholders' equity
NOBILITY HOMES, INC.
Condensed Consolidated Statements of Income
Three Months Ended
Twelve Months Ended
Cost of sales
Selling, general and administrative expenses
Other income (loss):
Undistributed earnings in joint venture - Majestic 21
Proceeds received under escrow arrangement
(Decrease) increase in fair value of equity investment
Gain on disposal of property, plant and equipment
Total other income
Income before provision for income taxes
Income tax expense
Weighted average number of shares outstanding:
Net income per share:
SOURCE: Nobility Homes, Inc.
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