Exhibit 99.1
NOBILITY HOMES, INC. ANNOUNCES SALES AND EARNINGS FOR ITS THIRD QUARTER 2018
Ocala, FL…September 14, 2018 – Today Nobility Homes, Inc. (OTCQX: NOBH) announced sales and earnings for its third quarter ended August 4, 2018. Sales for the third quarter of 2018 were up 29% to $11,447,636 as compared to $8,906,385 recorded in the third quarter of 2017. Income from operations for the third quarter of 2018 was up 56% to $1,462,392 versus $934,854 in the same period a year ago. Net income after taxes was $1,248,084 as compared to $669,883 for the same period last year. Diluted earnings per share for the third quarter of 2018 were $0.32 per share compared to $0.17 per share last year.
For the first nine months of fiscal 2018, sales were up 9% to $30,015,718 as compared to $27,525,855 for the first nine months of 2017. Income from operations was up 15% to $3,744,496 versus $3,267,938 last year. Net income after taxes was $3,399,925 compared to $2,480,715 last year. Diluted earnings per share were $0.87 per share compared to $0.62 per share last year.
Nobility’s financial position for the first nine months of 2018 remains very strong with cash and cash equivalents, certificates of deposit and short term investments of $33,052,738 and no outstanding debt. Working capital is $36,515,997 and our ratio of current assets to current liabilities is 5.8:1. Stockholders’ equity is $47,473,623 and the book value per share of common stock outstanding increased to $12.26.
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 November 2017 through July 2018 were up approximately 18% from the same period last year. Constrained consumer credit and the lack of lenders in our industry, partly as a result of an increase in government regulations, still affects our results by limiting many affordable manufactured housing buyers from purchasing homes.
We understand that 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, 2018 the Company celebrated its 51st 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 ORTERRY@NOBILITYHOMES.COM ORTOM@NOBILITYHOMES.COM
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, impact of mandated tariffs on material prices, market disruptions resulting from terrorist or other attack and any armed conflict involving the United States and the impact of inflation.
