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NOBILITY HOMES INC.
P.O. BOX 1659 OCALA, FLORIDA 34478 352-732-5157 www.nobilityhomes.com
NOBILITY HOMES ANNOUNCES SALES AND
EARNINGS FOR ITS FIRST QUARTER 2004
Ocala, FL...March 4, 2004 Nobility Homes, Inc. (NASDAQ-NMS SYMBOL NOBH)
today announced sales and earnings results for its first quarter ended January
31, 2004. Sales for the first quarter of fiscal 2004 were up 20% to $10,198,241
as compared to $8,482,415 recorded in first quarter of 2003. Income from
operations for fiscal year 2004 was up 20% to $1,002,011 versus $838,387 in the
same period a year ago. Net income after taxes was up 31% to $783,881 as
compared to $600,584 last year. Basic and diluted earnings per share for the
first quarter increased 27% to $0.19 per share compared to $0.15 per share last
year.
Nobility's financial position continued to improve during the first
quarter of 2004 and remains very strong with cash and cash equivalents, short
and long-term investments of $16,412,952 and no outstanding debt. Working
capital is $15,015,935 and our ratio of current assets to current liabilities is
3.9:1. Stockholders' equity increased to $27,225,805 and the book value per
share of common stock increased to $6.79. The Company did not purchase any
shares of its common stock during the first quarter but is authorized by the
Company's Board of Directors to purchase up to 100,000 additional shares of the
Company's stock in the open market. The Board of Directors declared an annual
cash dividend of $0.10 per common share for fiscal year 2003, payable January
12, 2004 to stockholders of record as of December 29, 2003.
Terry Trexler, President stated, "First quarter sales of fiscal 2004,
historically our weakest quarter, continued to be adversely impacted by the very
competitive market caused by the industry's high repossession rate, tight retail
credit standards, high unemployment and uncertain economic conditions in our
country. Latest twelve-month manufactured housing industry shipments nationwide
declined an estimated 22% and industry shipments in Florida, our primary market,
were down an estimated 5%. Although Nobility continues to out-perform the
industry, in the near term we anticipate continued pressure on both sales and
earnings resulting from these factors, plus recent price increases in lumber,
OSB, steel and oil-related products and services. Management is optimistic for
the remainder of fiscal 2004, 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. With an improving economy, better
consumer confidence, declining unemployment claims, and continued low interest
rates in 2004 management expects the demand for our homes to improve. The
Company is well positioned to capitalize on the demand in the future by
controlling the retail distribution, financing, and insuring of our homes and by
being financially sound to take advantage of opportunities as they develop.
Nobility Homes, Inc. has specialized for the past 36 years in the
design and production of quality, affordable manufactured homes at its two
plants located in central Florida. With seventeen Company-owned retail sales
centers, a finance company joint venture, and an insurance subsidiary, Nobility
is the only vertically integrated manufactured home company headquartered in
Florida.
Management will hold a conference call on Thursday, March 4, 2004, at
4:30 pm eastern time. To participate, please dial 888-569-5033. The confirmation
code for the call is 564805. You may also access the call at
www.nobilityhomes.com OR http://www.firstcall
events.com/service/ajwz401497970gf12.html Contact person: Terry Trexler
352.732.5157
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
purchases, consumer confidence, adverse weather conditions that reduce sales at
retail centers, the risk of manufacturing plant shutdowns due to storms or other
factors, and the impact of marketing and cost-management programs.
NOBILITY HOMES, INC.
CONSOLIDATED BALANCE SHEETS
January 31, November 1,
2004 2003
---------------- ----------------
(Unaudited)
Assets
Current Assets:
Cash and cash equivalents $ 10,305,550 $ 10,641,748
Short-term investments 369,556 342,550
Accounts receivable - trade 814,769 2,096,128
Inventories 7,431,676 6,557,659
Deferred income taxes 477,541 485,716
Prepaid expenses and other current assets 829,205 501,014
------------ -----------
Total current assets 20,228,297 20,624,815
Property, plant and equipment, net 3,283,286 3,136,506
Long-term investments 5,737,846 5,249,825
Investment in joint venture - Majestic 21 1,274,806 1,203,804
Deferred income taxes - noncurrent 15,050 15,050
Other assets 1,898,882 2,474,905
------------ -----------
Total assets $ 32,438,167 $ 32,704,905
============ ===========
Liabilities and stockholders' equity Current liabilities:
Accounts payable $ 1,077,772 $ 1,484,997
Accrued expenses and other current liabilities 2,974,117 2,988,131
Accrued compensation 512,798 524,784
Income taxes payable 647,675 890,675
------------ -----------
Total current liabilities 5,212,362 5,888,587
------------ -----------
Commitments and contingent liabilities
Stockholders' equity:
Preferred stock, $.10 par value, 500,000
shares authorized, none issued - -
Common stock, $.10 par value, 10,000,000
shares authorized; 5,364,907 shares issued 536,491 536,491
Additional paid in capital 8,612,719 8,613,640
Retained earnings 25,883,143 25,500,362
Accumulated other comprehensive income 54,592 35,516
Less treasury stock at cost, 1,353,686 and
1,354,663 shares, respectively, in 2004 and 2003 (7,861,140) (7,869,691)
------------ -----------
Total stockholders' equity 27,225,805 26,816,318
------------ -----------
Total liabilities and stockholders' equity $ 32,438,167 $ 32,704,905
============ ===========
NOBILITY HOMES, INC.
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
Three Months Ended
------------------
January 31, February 1,
2004 2003
----------------- -----------------
Net sales $ 10,198,241 $ 8,482,415
Net sales - related parties - -
----------- ------------
Total net sales 10,198,241 8,482,415
Cost of goods sold (7,611,701) (6,258,985)
----------- ------------
Gross profit 2,586,540 2,223,430
Selling, general and administrative expenses (1,584,529) (1,385,043)
----------- ------------
Operating income 1,002,011 838,387
----------- ------------
Other income:
Interest income 88,461 40,297
Undistributed earnings in joint venture - Majestic 21 71,002 21,567
Miscellaneous income 29,407 9,333
----------- ------------
188,870 71,197
----------- ------------
Income before provision for income taxes 1,190,881 909,584
Provision for income taxes (407,000) (309,000)
----------- ------------
Net income 783,881 600,584
Other comprehensive income, net of tax
Unrealized investment gain 19,076 -
----------- ------------
Comprehensive income $ 802,957 $ 600,584
=========== ============
Average shares outstanding
Basic 4,010,255 4,014,246
Diluted 4,063,875 4,036,337
Earnings per share
Basic $ 0.19 $ 0.15
Diluted $ 0.19 $ 0.15