Exhibit 99.1
NOBILITY HOMES, INC. ANNOUNCES INCREASED SALES AND EARNINGS FOR ITS FISCAL YEAR 2018
Ocala, FL…January 3, 2019 - Today Nobility Homes, Inc. (OTCQX: NOBH) announced increased sales and earnings results for its fiscal year ended November 3, 2018. Sales for fiscal year 2018 were up 14% to $42,812,265 as compared to $37,543,071 recorded in fiscal year 2017. Income from operations, up 31% for fiscal year 2018, was $5,722,826 versus $4,355,874 in the same period a year ago. Net income after taxes was $4,963,633 as compared to $3,309,983 for the same period last year. In fiscal year 2017, we received payments under an escrow arrangement related to the Finance Revenue Sharing Agreement between 21st Mortgage Corporation and the Company resulting in revenue of $504,548. Diluted earnings per share for fiscal year 2018 were $1.27 per share compared to $0.83 per share last year.
For the fourth quarter of fiscal 2018, sales were up 28% to $12,796,547 as compared to $10,017,216 in the fourth quarter of last fiscal year. Income from operations for the fourth quarter of 2018 was up 82% to $1,978,330 versus $1,087,936 in the same period last year. Net income after taxes was $1,563,708 versus last year’s results of $829,268. Diluted earnings per share for the fourth quarter were $0.40 per share versus earnings of $0.21 per share last year.
Nobility’s financial position during fiscal year 2018 remains very strong with cash and cash equivalents, short term investments and certificate of deposits of $34,936,721 and no outstanding debt. Working capital is $38,128,057 and our ratio of current assets to current liabilities is 5.8:1. Stockholders’ equity is $49,066,501 and the book value per share of common stock increased to $12.67.
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 October 2018 were up approximately 19% 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. However, recent legislation may help improve this situation in the future.
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 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, 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.
