Stating the obvious can bring clarity to our industry and others. There are no perfect companies. There are no perfect nonprofits or trade associations. There are no perfect trade media, including this platform. That said, unlike some companies and groups in manufactured housing that seem to be a magnet for scandals and bad news, a check for headlines on under the “news” tab for publicly-traded Nobility Homes Inc. (NOBH) on the Safari browser – which uses Google’s news feed – reveals…wait for it…a series of months and years of quarterly or other financial performance reports. Rephrased, there is a surprising lack of negative ‘drama,’ which is one way of saying that no bad news means good news for Nobility.
On June 11, 2021 Nobility Homes (OTCQX:NOBH) announced the following performance report for its second quarter in 2021. Note that like all other companies in our business daily manufactured housing market report shown near the end of this report, MHProNews holds no position in this firm. Our reports and analysis are based upon company provided information, as well as what other research, our own additional insights, data, and related information.
The video above is one of several by the firm, which gives a sense of some of the single- and multi-sectional models that the firm offers. The Yahoo 1 year and 5 year financial snapshot following the NOBH press release was not part of their media release, but rather is provided by MHProNews.
Nobility Homes, Inc. Announces Sales and Earnings for Its Second Quarter 2021
OCALA, FL / ACCESSWIRE / June 11, 2021 / Today Nobility Homes, Inc. (OTCQX:NOBH) announced sales and earnings for its second quarter ended May 1, 2021. Sales for the second quarter of 2021 increased 45% to $14,742,900 as compared to $10,202,502 recorded in the second quarter of 2020. Income from operations for the second quarter of 2021 was $2,062,172 versus $1,914,867 in the same period a year ago. Net income after taxes was $1,724,938 as compared to $1,550,004 for the same period last year. Diluted earnings per share for the second quarter of 2021 were $0.47 per share compared to $0.43 per share last year.
For the first six months of fiscal 2021, sales increased 21% to $23,814,411 as compared to $19,646,354 for the first six months of 2020. Income from operations was $3,286,238 versus $3,548,572 last year. Net income after taxes was $2,790,703 compared to $2,950,145 last year. Diluted earnings per share were $0.77 per share compared to $0.81 per share last year.
Nobility’s financial position during the second quarter 2021 remains very strong with cash and cash equivalents, certificates of deposit and short term investments of $35,879,342 and no outstanding debt. Working capital is $36,246,631 and our ratio of current assets to current liabilities is 3.6:1. Stockholders’ equity is $50,141,381 and the book value per share of common stock increased to $13.81.
Terry Trexler, President, stated, ‘The Company’s second quarter sales were exceptionally strong and continue to reflect an improving housing market. Ongoing supply and labor challenges, plus the unprecedented inflation in most building products have negatively affected the Company’s gross profits.
Since May of 2020 the Company has experienced unprecedented inflation in most building products, with no immediate relief in sight resulting in significant increases to our material costs. We are monitoring this situation and will continue to adjust our selling prices to help offset the higher costs on each home.
The demand for affordable manufactured housing in Florida has been adversely impacted by coronavirus (‘COVID-19′) and actions taken in response thereto. According to the Florida Manufactured Housing Association, shipments for the industry in Florida for the period from November 2020 through May 2021 were up approximately 6% from the same period last year. In addition, the lack of lenders in our industry, partly as a result of an increase in government regulations, still adversely affects our results by limiting many affordable manufactured housing buyers from purchasing homes.
The COVID-19 pandemic has resulted in government authorities implementing numerous measures to try to contain the virus. Although we were deemed an essential business and never closed our retail sales centers, these measures had a negative impact on customer traffic (and corresponding sales) within our centers and the operations of our business partners. While our manufacturing operations have continued, an outbreak in our manufacturing facility would negatively impact our ability to produce new homes. There is considerable uncertainty regarding the impact, and expected duration, of such measures and potential future measures, which could cause disruptions to our business in the future.
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, 2021 the Company celebrated its 54th anniversary in business specializing in the design and production of quality, affordable manufactured homes. With multiple retail sales centers in Florida for over 30 years and an insurance agency subsidiary, we are the only vertically integrated manufactured home company headquartered in Florida.
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, the potential adverse impact on our business caused by the COVID-19 pandemic or other health pandemic, competitive pricing pressures at both the wholesale and retail levels, increasing material costs or availability of materials due to potential supply chain interruptions (such as current inflation with forest products and supply issues with vinyl siding and PVC piping), 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.
NOBILITY HOMES, INC.
Condensed Consolidated Balance Sheets
|May 1,||October 31,|
|Cash and cash equivalents||$||33,227,818||$||30,305,902|
|Certificates of Deposit||2,088,805||4,602,307|
|Accounts receivable – trade||1,817,588||790,046|
|Mortgage notes receivable||23,752||20,162|
|Income taxes receivable||–||105,676|
|Pre-owned homes, net||552,375||441,937|
|Prepaid expenses and other current assets||1,637,504||1,014,849|
|Total current assets||50,118,773||46,970,513|
|Property, plant and equipment, net||6,918,792||5,142,714|
|Pre-owned homes, net||1,036,596||1,077,240|
|Note receivable, less current portion||–||6,573|
|Mortgage notes receivable, less current portion||222,556||227,509|
|Mobile home park note receivable||2,481||–|
|Deferred income taxes||–||3,598|
|Operating lease right of use assets||694,629||715,368|
|Cash surrender value of life insurance||3,885,002||3,795,902|
|Liabilities and Stockholders’ Equity|
|Accrued expenses and other current liabilities||1,484,542||1,383,833|
|Income taxes payable||219,456||–|
|Operating lease obligation||30,078||24,192|
|Total current liabilities||13,872,142||8,105,273|
|Deferred income taxes||15,584||–|
|Operating lease obligation, less current portion||761,130||778,519|
|Commitments and contingencies|
|Preferred stock, $.10 par value, 500,000 shares|
|authorized; none issued and outstanding||–||–|
|Common stock, $.10 par value, 10,000,000|
|shares authorized; 5,364,907 shares issued;|
|3,632,100 and 3,631,196 outstanding, respectively||536,491||536,491|
|Additional paid in capital||10,733,434||10,694,554|
|Less treasury stock at cost, 1,732,807 shares in 2021 and|
|1,733,711 shares in 2020||(18,263,198||)||(18,265,820||)|
|Total stockholders’ equity||50,141,381||50,941,276|
|Total liabilities and stockholders’ equity||$||64,790,237||$||59,825,068|
NOBILITY HOMES, INC.
Condensed Consolidated Statements of Income
|Three Months Ended||Six Months Ended|
|May 1||May 2||May 1||May 2|
|Cost of sales||(11,130,215||)||(7,065,007||)||(17,704,279||)||(13,619,010||)|
|Selling, general and administrative expenses||(1,550,513||)||(1,222,628||)||(2,823,894||)||(2,478,772||)|
|Other income (loss):|
|Undistributed earnings in joint venture – Majestic 21||12,049||20,398||25,757||40,270|
|Proceeds received under escrow arrangement||–||189,285||45,868||272,394|
|Increase (decrease) in fair value of equity investment||123,803||(176,733||)||203,759||(180,526||)|
|Total other income||206,271||125,872||383,779||337,888|
|Income before provision for income taxes||2,268,443||2,040,739||3,670,017||3,886,460|
|Income tax expense||(543,505||)||(490,735||)||(879,314||)||(936,315||)|
|Weighted average number of shares outstanding:|
|Net income per share:|
SOURCE: Nobility Homes, Inc.
Additional Information, MHProNews Analysis and Commentary
“The Company’s second quarter sales were exceptionally strong and continue to reflect an improving housing market. Ongoing supply and labor challenges, plus the unprecedented inflation in most building products have negatively affected the Company’s gross profits.” So said Terry E. Trexler, Chairman, President and CEO, per the above.
Additional pull-quotes from the above of interest include these statements.
- “Since May of 2020 the Company has experienced unprecedented inflation in most building products, with no immediate relief in sight resulting in significant increases to our material costs. We are monitoring this situation and will continue to adjust our selling prices to help offset the higher costs on each home.“
To the point of no drama (negative news) made above, this ‘compare and contrast’ with a well known Manufactured Housing Institute (MHI) member firm speaks volumes.
There are some things similar in the comments from Trexler and Nobility that are heard from others in the industry. The lack of lending is an example. Lumber and labor are common comments.
There is a difference in the vibe between some of the better known, sadly, MHI members that seem to periodically generate negative media. It is good to periodically spotlight a firm that is not an embarrassment to the reputation of our profession.
For newcomers, see the related reports to learn more about industry issues, politics, and concerns.
To learn more, see the linked and related reports.
Next, is our evening market report and related left-right headlines.
The Business Daily Manufactured Home Industry Connected Stock Market Updates. Plus, Market Moving Left (CNN) – Right (Newsmax) Headlines Snapshot. While the layout of this business daily report has recently been modified, several elements of the basic concepts used previously are still the same. The headlines that follow below can be reviewed at a glance to save time while providing insights across the left-right media divide. Additionally, those headlines often provide clues as to possible ‘market moving’ items.
Market Indicator Closing Summaries – Yahoo Finance Closing Tickers on MHProNews…
Headlines from left-of-center CNN Business = evening of 6.15.2021
- Best Buy expands
- People wearing facemasks walk past a Best Buy store near Union Square on June 25, 2020 in New York City. – New York businesses opened their doors to returning waves of workers June 22 as the city that was once the epicenter of the global pandemic marked an important milestone in its return to normalcy, even as other US states were seeing an alarming rise in COVID-19 cases.
- It’s not just electronics. Now the chain wants to sell you luggage and outdoor grills
- 160-year-old corporate giant PwC is getting a serious makeover
- A key inflation indicator just recorded its biggest jump on record
- Retailers plead with Biden to fix port congestion that is hurting trade
- Major US mall owner files for bankruptcy
- DraftKings tumbles after research firm alleges black market ties
- US and Europe end Airbus-Boeing dispute as they eye threat from China
- IKEA fined $1 million for spying on workers in France
- Europe ramps up pressure on tech giants
- Australia and the United Kingdom announce a post-Brexit trade deal
- IKEA, Lenovo and many more businesses still have products stuck in the Suez Canal
- No TikTok deal is no problem for red-hot software giant Oracle
- Stephen Colbert welcomes back live audience
- In this March 4, 2018, file photo, MacKenzie Scott, the former wife of Amazon founder Jeff Bezos, arrives at the Vanity Fair Oscar Party in Beverly Hills, Calif. Scott, the billionaire philanthropist known for her impromptu multi-billion dollar donations to charities and racial equity causes, announced Tuesday, June 15, 2021, that she has given $2.7 billion to 286 organizations. It is the third round of major philanthropic gifts Scott has made, which together rival the charitable contributions made by the largest foundations.
- MacKenzie Scott is giving away another $2.74 billion
- A pedestrian walks by a Now Hiring sign outside of a Lamps Plus store on June 03, 2021 in San Francisco, California. According to a U.S. Labor Department report, jobless claims fell for a fifth straight week to 385,000.
- CEOs signal stronger hiring plans than after the Trump tax cuts
- Gen Z famous influencer Hyram Yarbo is launching his first skincare line called Selfless By Hyram at Sephora in the US and in 29 countries on June 24.
- He has 7 million TikTok followers. Now he’s launching his own skincare line
Headlines from right-of-center Newsmax – evening of 6.15.2021
- Trafalgar Poll: More Americans Apt to Blame Biden, Not Trump, for Inflation
- Newsmax TV
- Blackburn to Newsmax: Blanket Immigration Bill Also Covers Criminals
- Gordon Chang to Newsmax: China Military Maneuvers No ‘Coincidence’ |
- Rick Gates to Newsmax: Biden ‘Missed Opportunities’ at G-7 Summit |
- Mike Eruzione to Newsmax: Let Them Play in Tokyo Olympics |
- Robert Bork Jr. to Newsmax: Father Would Be ‘Appalled’ Biden Is President |
- More Newsmax TV
- Judge OKs Weinstein’s Extradition for California Rape Case
- A New York judge on Tuesday approved disgraced movie mogul Harvey Weinstein’s extradition to California, where he faces additional sexual assault charges, ending a legal fight prolonged by the COVID-19 pandemic, the defense’s concerns about Weinstein’s failing health and a…… [Full Story]
- DOJ Asks to Reinstate Boston Marathon Bomber’s Death Penalty
- On Monday, the Department of Justice asked the Supreme Court to [Full Story]
- Coronavirus Was Likely Present in US from December 2019: Study
- A new antibody testing study published Tuesday has found further [Full Story]
- Biden & The Fed Meet Today: Talks of ‘Great Reset’
- SPONSOR: Your bank account may be dramatically impacted – learn more [Full Story]
- Wall Street Ends Down as Jittery Investors Await Fed Report
- Wall Street’s main indices ended lower on Tuesday, as data showing [Full Story]
- Menendez: Biden Must Treat Putin Like The ‘Killer’ He Knows He Is
- President Joe Biden must be tough and speak with Russian [Full Story] |
- Big Media Is Taking on the Southern Baptist Convention, Here’s Why
- A sudden media interest in theological wars waged inside the [Full Story] |
- Pompeo Launches PAC to Support 2022 GOP Candidates
- Former Secretary of State Mike Pompeo has created a political action [Full Story]
- Pompeo: ‘Timid and Unprepared’ Biden to Meet With Putin
- NATO Designates China as a ‘Systemic’ Security Challenge
- NATO leaders designated China as presenting “systemic challenges” in [Full Story]
- McConnell Calls for ‘Actual Consequences’ for Leaking Tax Info
- Senate Minority Leader Mitch McConnell, R-Ky., on Tuesday called on [Full Story]
- Texas Gov. Abbott’s Message to VP Harris: Border Crisis No Laughing Matter
- Texas Gov. Abbott’s Message to VP Harris: Border Crisis No Laughing Matter
- Greg Abbott, R-Texas, said in a podcast interview it was [Full Story]
- Southwest Airlines Reels With 1,000 Flights Canceled or Delayed
- Southwest Airlines Co. canceled or delayed about 1,000 flights, hours [Full Story]
- McCarthy Pushes Pelosi To Strip Omar from Committee
- House Speaker Nancy Pelosi should remove Rep. Ilhan Omar from the [Full Story]
- Report: Feds Probing Suspected Chinese Spies’ Return to US Ahead of COVID Travel Ban
- An investigation is reportedly underway into why suspected Chinese [Full Story]
- Offices Stay Empty Despite Businesses Reopening
- While restaurants, stores, and hotels have begun to see customers [Full Story]
- Sources: Pentagon Weighs China Task Force, Special Ops
- China’s military buildup in the Pacific has the Pentagon considering [Full Story]
- Florida Sheriff to Blue State Migrators: Don’t New York Our Florida
- A Florida sheriff is urging Americans migrating from blue states to [Full Story]
- Georgia to Review County’s Ballot Drop Box Forms From 2020
- Georgia’s secretary of state says his office is reviewing the [Full Story]
- Ashli Babbitt’s Husband Demands ID of Police Officer Who Killed Her
- The husband of the woman fatally shot during the Jan. 6 Capitol [Full Story]
- Millions of Bullets Stolen in Central Mexico Heist
- An armed group stole an estimated 7 million rounds of ammunition [Full Story]
- US COVID-19 Deaths Hit 600,000, Equal to Yearly Cancer Toll
- The U.S. death toll from COVID-19 topped 600,000 on Tuesday, even as [Full Story]
- Israeli Nationalists March in East Jerusalem Under Heavy Police Presence
- Thousands of Israeli far-right nationalists marched in a flag-waving [Full Story]
- Turtle Nesting Survey in Florida Turns Up $1.2M Worth of Cocaine
- A Florida wildlife manager last month discovered dozens of packages [Full Story]
- Lithuanian Official to Newsmax: ‘Biden Must Warn Putin Against Annexing Belarus’
- When he sits down with Vladimir Putin on Wednesday, President Joe [Full Story] |
- Cotton: US Service Members Complain of Pentagon’s Wokeness
- Military service members have complained about being subjected to [Full Story]
- More Evidence Suggests COVID-19 Was in US by Christmas 2019
- A new analysis of blood samples from 24,000 Americans taken early [Full Story]
- Low Expectations: What Biden and Putin Will Joust Over at Summit
- Expectations for a major breakthrough at a summit on Wednesday [Full Story]
- US Catholic Bishops to Debate Giving Communion to Pro-Choice Politicians
- The U.S. Conference of Catholic Bishops this week are expected to [Full Story]
- House Dems Press Mark Meadows to Testify on DOJ Election Role
- A House committee is asking former White House Chief of Staff Mark [Full Story]
- Vito Fossella, Seth Barron to Newsmax: New York City Is Rotting
- “Here’s the problem in New York City- it’s that the [Full Story] |
- Taiwan Reports Largest Incursion Yet by Chinese Air Force
- Twenty-eight Chinese air force aircraft, including fighters and [Full Story]
- More Newsfront
- EU, US Reach Deal to End Airbus-Boeing Trade Dispute
- The United States and the European Union reached a deal Tuesday to end a damaging dispute over subsidies to rival plane makers Boeing and Airbus and phase out billions of dollars in punitive tariffs, the U.S. trade envoy said.U.S. Trade Representative Katherine Tai said the… [Full Story]
- Oil Highest Since 2018 as Traders See Prospect of Higher Prices
- Lordstown Motors’ Rough Road Continues; CEO and CFO Are Out
- Novavax Covid Shot 93@ Effective Against Variants in Trial
- California Defies Doom So Far With No. 1 US Economy
- More Finance
- Dangerous COVID Variant Could Cause Outbreaks
- The potentially deadly Delta variant that was originally identified in India is rapidly becoming the dominant virus in the U.S. and could wreak havoc in areas with low vaccination rates, say experts. Dr. Scott Gottlieb, a former commissioner of the Food and Drug… [Full Story]
- 8 Best Superfoods for People Over 50
- New Alzheimer’s Vaccine Shows Promise and Safety in Trials
- Doctors Warn of Burns From Asphalt as Heat Wave Hits US West
- How to Switch to a Plant-Based Diet
Manufactured Housing Industry Investments Connected Equities Closing Tickers
Some of these firms invest in manufactured housing, or are otherwise connected, but may do other forms of investing or business activities too.
- NOTE: The chart below includes the Canadian stock, ECN, which purchased Triad Financial Services, a manufactured home industry lender
- NOTE: Drew changed its name and trading symbol at the end of 2016 to Lippert (LCII).
- NOTE: Deer Valley was largely taken private, say company insiders in a message to MHProNews on 12.15.2020, but there are still some outstanding shares of the stock from the days when it was a publicly traded firm. Thus, there is still periodic activity on DVLY.
MHProNews. MHProNews – previously a.k.a. MHMSM.com – has celebrated our 11th year of publishing, and is starting our 12the year of serving the industry as the runaway most-read trade media.
Sample Kudos over the years…
It is now 11+ years and counting…
Learn more about our evolutionary journey as the industry’s leading trade media, at the report linked below.
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Disclosure. MHProNews holds no positions in the stocks in this report.
That’s a wrap on this installment of “News Through the Lens of Manufactured Homes and Factory-Built Housing” © where “We Provide, You Decide.” © (Affordable housing, manufactured homes, stock, investing, data, metrics, reports, fact-checks, analysis, and commentary. Third-party images or content are provided under fair use guidelines for media.) (See Related Reports, further below. Text/image boxes often are hot-linked to other reports that can be access by clicking on them.)
By L.A. “Tony” Kovach – for MHProNews.
Tony earned a journalism scholarship and earned numerous awards in history and in manufactured housing. For example, he earned the prestigious Lottinville Award in history from the University of Oklahoma, where he studied history and business management. He’s a managing member and co-founder of LifeStyle Factory Homes, LLC, the parent company to MHProNews, and MHLivingNews.com. This article reflects the LLC’s and/or the writer’s position, and may or may not reflect the views of sponsors or supporters.