Nobility Homes, Inc. Announces Increased Sales and Earnings for Its Second Quarter 2017

[ACCESSWIRE]

OCALA, FL / ACCESSWIRE / June 15, 2017 / Today, Nobility Homes, Inc. (OTCQX: NOBH) announced increased sales and earnings results for its second quarter ended May 6, 2017. Sales for second quarter 2017 were up 24% to $10,046,071, as compared to $8,115,840 recorded in second quarter 2016. Income from operations was up 34% to $1,276,598, versus $953,869 last year. Net income after taxes was $1,107,509, as compared to $3,671,881 last year. In the second quarter of 2016, the Company sold its limited partnership interest in CRF III, Ltd. ("Cypress Creek"), a retirement community, which resulted in a gain of $3,990,000, and also received revenue of $788,566 under an escrow arrangement related to the Finance Revenue Sharing Agreement between 21st Mortgage Corporation, Prestige Home Centers, Inc., and Majestic Homes Inc. In the second quarter of 2017, we received revenue of $225,956 related to the Finance Revenue Sharing Agreement. Diluted earnings per share were $0.28 per share, compared to $0.91 per share last year.

For the first six months of fiscal 2017, sales were up 20% to $18,619,471, as compared to $15,489,890 for the first six months of 2016. Income from operations was up 21% to $2,333,075, versus $1,929,610 last year. Net income after taxes was $1,810,832, compared to $4,350,282 last year. Diluted earnings per share were $0.45 per share, compared to $1.08 per share last year.

Nobility's financial position for the first six months of 2017 remains very strong, with cash and cash equivalents and short-term investments of $26,246,273 and no outstanding debt. Working capital is $34,537,149 and our ratio of current assets to current liabilities is 8.0:1. Stockholders' equity is $46,018,873 and the book value per share of common stock outstanding increased to $11.49.

Terry Trexler, President, stated, "The demand for affordable manufactured housing in Florida and the U.S. continues to improve. According to the Florida Manufactured Housing Association, shipments in Florida for the period from February through April 2017 were up approximately 6% from the same period last year. Our sales and earnings continue to be affected by the lack of available retail and wholesale financing. Constrained consumer credit and the lack of lenders in the industry, partly as a result of an increase in government regulations, have limited many manufactured housing buyers from purchasing affordable manufactured homes.

We believe maintaining our strong financial position is vital for future growth and success. Because of the recent years of very challenging business conditions in our market area, management continues 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, 2017, the Company celebrated its 50th anniversary in business specializing in the design and production of quality, affordable, manufactured homes. With multiple retail sales centers, an insurance agency subsidiary, and an investment in a retirement manufactured home community, 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 221 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 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, uncertain economic conditions, 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, possible labor shortages, possible materials shortages, increasing labor cost, cyclical nature of the manufactured housing industry, impact of 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.

SOURCE: Nobility Homes, Inc.