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NOBILITY HOMES INC.
P.O. BOX 1659 OCALA, FLORIDA 34478 352-732-5157 www.nobilityhomes.com
NOBILITY HOMES ANNOUNCES INCREASED SALES
AND EARNINGS FOR ITS SECOND QUARTER 2004
Ocala, FL...June 3, 2004-- Today Nobility Homes, Inc. (NASDAQ: NOBH)
announced sales and earnings results for its second quarter ended May 1, 2004.
Sales for the second quarter were up 57% to $13,112,600 as compared to
$8,354,762 recorded in second quarter of 2003. Income from operations increased
79% to $1,603,834 versus $895,972 in the same period a year ago. Net income
after taxes was up 45% to $1,153,357 as compared to $794,782 for the same period
last year. Diluted earnings per share for the second quarter improved 40% to
$0.28 per share compared to $0.20 per share last year.
For the first six months of fiscal 2004, sales increased 38% to
$23,310,841 as compared to sales of $16,837,177 in the first six months of last
fiscal year. Income from operations for the first six months improved 50% to
$2,605,845 versus $1,734,359 in the same period last year. Net income increased
39% to $1,937,238 versus last year's results of $1,395,365. Diluted earnings per
share were up 34% to $0.47 per share versus last year's six months results of
$0.35 per share.
Nobility's financial position continued to improve during the second
quarter of 2004 and remains very strong with cash and cash equivalents, short
and long-term investments of $17,435,826 and no outstanding debt. Working
capital is $15,140,706 and our ratio of current assets to current liabilities is
3.6:1. Stockholders' equity increased to $28,475,474 and the book value per
share of common stock increased to $7.09. The Company did not purchase any
shares of its common stock during the second quarter of 2004 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.
"Second quarter sales of fiscal 2004 were very strong even with tight
retail credit standards still evident; improving, but high unemployment; and
uncertain economic conditions present in our country. Latest three-month
manufactured housing industry shipments nationwide declined an estimated 6% and
industry shipments in Florida, our primary market, were up an estimated 6%",
President Terry Trexler said.
Trexler continued, "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 many recent price increases in
lumber, OSB, sheetrock, 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 increasing but still 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 37 years in the
design and production of quality, affordable manufactured homes at its two
plants located in central Florida. With 17 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, JUNE 3, 2004, AT
4:30 PM EASTERN TIME. TO PARTICIPATE, PLEASE DIAL 888-231-7417. THE CONFIRMATION
CODE FOR THE CALL IS 493879 YOU MAY ALSO ACCESS THE CALL AT
www.nobilityhomes.com
OR http://www.firstcallevents.com/service/ajwz407242971gf12.html
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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.