But our focus this evening will be Nobility Homes recent fiscal year end report. All that and more follow our left-right bullet headlines, evening market-at-a-glance graphics and all our standard insightful fare.
Let’s jump in.
Periodic readers of this business-nightly feature should note there are a few tweaks to some of the standard portions of our evening market/investing report. Read carefully as some changes of the ‘standard text’ that follows before our left-right headlines and also in other features near the end of tonight’s reports.
Every evening our headlines that follow provide snapshots from two major media outlets on each side of the left-right news spectrum that reflect topics that influence or move investor sentiment. In moments on this business evening report, you can get ‘insights-at-a-glance.’
This report also sets the broader context for manufactured housing markets, in keeping with our mantra, “News through the lens of manufactured homes and factory-built housing” ©.
We begin with headlines left-of-center CNN followed by right-of-center Fox Business. We share closing tickers and other related data courtesy of Yahoo Finance, and more. 5 to 10 minutes reading this MHProNews market report every business night could save you 30 minutes to an hour of similar reading or fact-gathering elsewhere.
Perhaps more important, you will get insights about the industry from experts that care, but also dare to challenge the routine narrative that arguably keeps manufactured housing underperforming during an affordable housing crisis.
Newsy, Peeling Back Media Bias, Manufactured Housing Sales, Investing, Politics, and You
Headlines from left-of-center CNN Business.
- The biggest shopping day of the year dwarfed Black Friday and Cyber Monday
- How stores choose which holiday songs to play
- Opinion: Retail isn’t dead. It’s just changing
- Boeing’s fired CEO could walk away with a $60 million golden parachute
- Analysis: The mistakes that cost Boeing’s CEO his job
- Uber cofounder and former CEO to step down from the company’s board
- BMW probed by SEC over sales reporting
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- Why Apple killed the floppy disk and headphone jack before you were ready to give them up
- Media at a flashpoint: 2019 year in review
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- These smart shopping carts will let you skip the grocery store line
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- THE RISE OF THE ELECTRIC CAR
- GM president: Electric cars won’t go mainstream until we fix these problems
- Tesla’s stock hits a record $420
- Electric truck company Rivian raises $1.3 billion
- Electric vehicles pose a major threat to autoworkers’ jobs
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- THE FUTURE OF GROCERY SHOPPING
- The rise of ‘grocerants’: Grocery stores that cook you dinner
- Meet the Aldi and Kroger superfans
- America’s largest grocer revamps its produce section
- Why supermarkets are building ‘dark stores’
- Walmart will deliver groceries straight to your fridge
Headlines from right-of-center Fox Business.
- Nasdaq closes at record high for ninth straight day amid quiet Christmas Eve session
- S. stock markets closed at 1 p.m. ET on Tuesday.
- Trump’s deals set up ‘boom year in 2020’: Peter Navarro
- Billionaires flocking to St. Barths in superyachts for the holidays
- Googling gifts: 100 most-searched presents this holiday season
- The surprising lesson we’ve learned about the Fed
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- Where in the world is Santa right now?
- Retail stores open Christmas Eve
- ‘TWAS THE NIGHT BEFORE…
- Retail stores open Christmas Eve
- Hunter Biden living in lavish LA pad amid baby mama drama
- Amazon denies putting deliveries over public safety
- Kim Kardashian goes ‘nude’ this Christmas
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- Giants celebrate win with drinking games at New Jersey bar: SEE IT
- Colin Kaepernick’s signature Nike shoe’s sales go wild
- Trump gives fed workers Christmas Eve off with pay
- Dallas Cowboys relying on division rival to help them make the playoffs
- Uniqlo shirt-folding robots could make Japanese factory fully automated
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- Brita ‘ugliest ugly’ Christmas sweaters are made of plastic waste
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- ESPN releases preview of Chicago Bulls documentary
- Uber co-founder Travis Kalanick to resign from board after controversial run
- Roenick suspended by NBC Sports for inappropriate comments
- ‘Friends’ will be ‘on a break’ from streaming services
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- Where the presidents have spent Christmas
- Louisiana Catholics blessed by air in holy water flyby
- San Francisco cafes are banishing disposable coffee cups
- Restaurants are open on Christmas Eve, Christmas Day
- Holiday travel: Americans to hit the road in record numbers
- Here’s what to expect from Christmas weather
- Christian pilgrims head to Bethlehem by the thousands for old-style Christmas
- Food and drink innovations for 2020
- Curt Flood set off the baseball free-agent revolution 50 years ago
- London-based firm says it’s buying Louisiana steel mill
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- Target under fire to shelve plastic bags
- SeaWorld Orlando to change killer whale show in 2020
10 Market Indicator Closing Summaries – Yahoo Finance Closing Tickers on MHProNews…
Featured Focus – Where Business, Politics and Investing Meet
According to their press release to MHProNews, the following is from Nobility Homes. It will be followed by additional related details, linked information and a thumbnail analysis.
Nobility Announced Sales, Earnings for their Fiscal Year 2019
OCALA, FL | ACCESSWIRE – Nobility Homes, Inc. (NOBH) announced increased sales and earnings results for its fiscal year ended November 2, 2019. Sales for fiscal year 2019 were up 11% to $47.3 million as compared to $42.8 million recorded in fiscal year 2018. Income from operations, up 45% for fiscal year 2019, was $8.3 million versus $5.7 million in the same period a year ago. Net income after taxes was $8.8 million as compared to $5.0 million for the same period last year.
In June 2019 the Company sold its former Pace retail sales center property located in Pace, Florida for total net proceeds of $1.1 million and in October 2019 the Company sold its interest in Walden Woods South for total net proceeds of $1.5 million. Diluted earnings per share for fiscal year 2019 were $2.32 per share compared to $1.27 per share last year.
For the fourth quarter of fiscal 2019, sales were $11.8 million as compared to $12.8 million in the fourth quarter of last fiscal year. Income from operations for the fourth quarter of 2019 was up 6% to $2.1 million versus $2.0 million in the same period last year. Net income after taxes was $2.9 million versus last year’s results of $1.6 million. Diluted earnings per share for the fourth quarter were $0.79 per share versus earnings of $0.40 per share last year.
Nobility’s financial position during fiscal year 2019 remained very strong with cash and cash equivalents, short term investments and certificates of deposit of $33.2 million and no outstanding debt. Working capital is $38.1 million and our ratio of current assets to current liabilities is 5.2:1. Stockholders’ equity is $49.5 million and the book value per share of common stock increased to $13.50.
Terry Trexler, President, stated, “The demand for affordable manufactured housing in Florida continues to be good. According to the Florida Manufactured Housing Association, shipments in Florida for the period from November 2018 through October 2019 were up approximately 17% 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, legislation may help improve this situation 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, 2019 the Company celebrated its 52nd anniversary in business specializing in the design and production of quality, affordable manufactured homes. With multiple retail sales centers and an insurance agency subsidiary, 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 121.
Certain statements in this report are unaudited or 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.
MHProNews Skinny Analysis
Let’s zero in on these two parts of their statement:
“Management remains convinced that our specific geographic market is one of the best long-term growth areas in the country” – Terry Trexler, President of Nobility Homes (NOBH) Inc.
That’s hard to dispute. Florida is one of only 2 of the top ten states in the U.S.A where manufactured home shipments, year over year, as reported by the Manufactured Housing Association for Regulatory Reform (MHARR) are up.
That said, the nation as a whole is in an affordable housing crisis. For example, are there any logical reason why California or Texas are down, when the needs for affordable housing in each continues to steadily rise?
Then there is this from Nobility’s President Trexler.
“The demand for affordable manufactured housing in Florida continues to be good. According to the Florida Manufactured Housing Association, shipments in Florida for the period from November 2018 through October 2019 were up approximately 17% 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, legislation may help improve this situation in the future.”
Let’s parse the above in this fashion.
First, as was previously reported by MHLivingNews, data gathered by third-party Zillow reflects a decreased overall interest in manufactured housing nationally for the two years covered in the report linked below.
When viral reports like the one below or the NCIS episode and related covered in our report that follows that are taken into account, the argument can be made that while FHFA, HUD, FHA and other governmental policies are certainly constraints, there are additional headwinds of an arguably artificial nature.
The good news that Nobility’s report reflects is this. Even as the industry has suffered a mild year-over-year decline when it should have been rising, NOBH and a few other firms are outperforming the market. That’s fine.
But more can and should be accomplished by firms of all sizes, including newcomers to the field. That may or may not require more effort than any one company the size of Nobility could achieve solo. How so?
When a combination of:
- Negative media arguably periodically generated by firms with ties to the Manufactured Housing Institute (MHI);
- Nonprofits with ties to Warren Buffett and various Berkshire Hathaway brands and supported organizations that raise related concerns;
- When MHI fails to do what their own former chairman said was logical;
- When good laws on the books that could address the issue that Trexler, industry colleagues like Ed Hussey and organizations like MHARR have raised get diverted, upended or are under-enforced;
- Then it should be no surprise that manufactured housing is underperforming during an ever increasing affordable housing crisis.
See the related reports for more.
We will have an appropriate story for tomorrow morning and resume or normal schedule on Thursday.
On this Christmas eve, from all of us here at MHProNews, a Merry Christmas to all.
Related Reports:
Manufactured Housing Industry Investments Connected Closing Equities Tickers
Some of these firms invest in manufactured housing, or are otherwise connected, but may do other forms of investing or business activities too.
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- 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).
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Winter 2019…
Berkshire Hathaway is the parent company to Clayton Homes, 21st Mortgage, Vanderbilt Mortgage and other factory built housing industry suppliers.
· LCI Industries, Patrick, UFPI, and LP each are suppliers to the manufactured housing industry, among others.
· AMG, CG, and TAVFX have investments in manufactured housing related businesses. For insights from third-parties and clients about our publisher, click here.
Enjoy these ‘blast from the past’ comments.
MHProNews. MHProNews – previously a.k.a. MHMSM.com – has now celebrated our tenth anniversary.
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.
(Image credits and information are as shown above, and when provided by third parties, are shared under fair use guidelines.)
Submitted by Soheyla Kovach, co-managing member of LifeStyle Factory Homes, LLC and co-founder for MHProNews.com, and MHLivingNews.com.
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