Nobility Homes Inc. Files Q1 2024 10-Q

TL;DR

NOBH Q1 24 10-Q filed. Financials look steady, housing market still a factor.

AI Summary

Nobility Homes Inc. filed its 10-Q for the period ending February 3, 2024. The filing details financial performance and operational updates for the company, which is involved in the manufactured housing industry. Key financial figures and balance sheet items are presented for the reporting period and comparative prior periods.

Why It Matters

This filing provides investors and analysts with a quarterly update on Nobility Homes' financial health and operational performance in the manufactured housing sector.

Risk Assessment

Risk Level: medium — The manufactured housing industry can be sensitive to economic cycles and interest rate fluctuations, posing inherent risks.

Key Numbers

• 2024-02-03 — Fiscal Period End Date (Indicates the end of the reporting quarter)
• 2023-11-05 — Previous Fiscal Year End (Provides a comparison point for financial data)
• 2022-11-05 — Prior Year Period Start (Marks the beginning of the prior fiscal year for comparative analysis)

Key Players & Entities

• NOBILITY HOMES INC (company) — Filer of the 10-Q report
• 20240203 (date) — End of the reporting period
• 20240607 (date) — Date the filing was made
• OCALA, FL (location) — Company's business and mailing address

FAQ

Key Financial Figures

• $14,767,998 — sales in the first quarter of 2024 were $14,767,998 compared to $17,164,753 in the first qu
• $17,164,753 — er of 2024 were $14,767,998 compared to $17,164,753 in the first quarter of 2023. The Compa
• $2,338,437 — 023. The Company reported net income of $2,338,437 in the first quarter of 2024, compared
• $3,056,967 — rter of 2024, compared to net income of $3,056,967 in the first quarter 2023. Net sales de
• $77,283 — enues in the first quarter of 2024 were $77,283 compared to $75,608 in the first quarte
• $75,608 — uarter of 2024 were $77,283 compared to $75,608 in the first quarter of 2023. Revenues
• $4,734,346 — profit in the first quarter of 2024 was $4,734,346 compared to $5,871,596 in the first qua
• $5,871,596 — rter of 2024 was $4,734,346 compared to $5,871,596 in the first quarter of 2023. The gross
• $2,032,330 — penses in the first quarter of 2024 was $2,032,330 compared to $2,035,477 in the first qua
• $2,035,477 — rter of 2024 was $2,032,330 compared to $2,035,477 in the first quarter of 2023. We earn
• $297,999 — of 2023. We earned interest income of $297,999 for the first quarter of 2024 compared
• $140,033 — r the first quarter of 2024 compared to $140,033 for the first quarter of 2023. The incr
• $22,174 — ic 21 in the first quarter of 2024 were $22,174 compared to $22,826, for the first quar
• $22,826 — uarter of 2024 were $22,174 compared to $22,826, for the first quarter of 2023. The ear
• $1.6 million — any. The Company received approximately $1.6 million in first quarter of 2024, representing

Filing Documents

• ck0000072205-20240203.htm (10-Q) — 648KB
• ck0000072205-ex31_a.htm (EX-31.(A)) — 25KB
• ck0000072205-ex31_b.htm (EX-31.(B)) — 25KB
• ck0000072205-ex32_a.htm (EX-32.(A)) — 12KB
• ck0000072205-ex32_b.htm (EX-32.(B)) — 12KB
• 0000950170-24-070350.txt ( ) — 2784KB
• ck0000072205-20240203.xsd (EX-101.SCH) — 440KB
• ck0000072205-20240203_htm.xml (XML) — 297KB

Financial Statements (Unaudited)

Financial Statements (Unaudited) Condensed Consolidated Balance Sheets as of February 3, 2024 (Unaudited) and November 4, 2023 3 Condensed Consolidated Statements of Income for the three months ended February 3, 2024 (Unaudited) and February 4, 2023 (Unaudited) 4 Condensed Consolidated Statements of Changes in Stockholders' Equity for the three months ended February 3, 2024 (Unaudited) and February 4, 2023 (Unaudited) 5 Condensed Consolidated Statements of Cash Flows for the three months ended February 3, 2024 (Unaudited) and February 4, 2023 (Unaudited) 6 Notes to Condensed Consolidated Financial Statements (Unaudited) 7 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 10 Item 4.

Controls and Procedures

Controls and Procedures 12 PART II. Other Information 13 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 13 Item 5. Other Information 13 Item 6. Exhibits 13

Signatures

Signatures 14 2 Table of Contents NOBILITY HOMES, INC. Condensed Consolid ated Balance Sheets February 3, 2024 November 4, 2023 (Unaudited) Assets Current assets: Cash and cash equivalents $ 15,142,033 $ 13,879,358 Certificates of deposit 11,712,706 10,204,287 Short-term investments at fair value 578,698 527,899 Accounts receivable - trade 2,269,360 2,864,808 Mortgage notes receivable 4,480 4,391 Inventories 20,061,646 21,518,098 Prepaid expenses and other current assets 1,662,231 1,733,179 Total current assets 51,431,154 50,732,020 Property, plant and equipment, net 8,352,165 8,268,976 Mortgage notes receivable, less current portion 142,628 142,761 Other investments 374,484 1,953,199 Property held for resale 26,590 26,590 Deferred income taxes 90,274 90,274 Cash surrender value of life insurance 4,375,684 4,331,659 Other assets 156,287 156,287 Total assets $ 64,949,266 $ 65,701,766 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 684,162 $ 819,143 Accrued compensation 978,865 992,622 Accrued expenses and other current liabilities 1,774,322 1,809,335 Income taxes payable 771,353 661,261 Customer deposits 5,652,609 8,703,107 Total current liabilities 9,861,311 12,985,468 Commitments and contingencies Stockholders' equity: 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; 3,268,829 and 3,269,075 shares outstanding, respectively 536,491 536,491 Additional paid in capital 11,001,701 10,964,985 Retained earnings 73,308,201 70,969,764 Less treasury stock at cost, 2,096,078 and 2,095,832 shares, respectively ( 29,758,438 ) ( 29,754,942 ) Total stockholders' equity 55,087,955 52,716,298 Total liabilities and

Management's Discussion and Analysis of Fin ancial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Fin ancial Condition and Results of Operations Results of Operations Total net sales in the first quarter of 2024 were $14,767,998 compared to $17,164,753 in the first quarter of 2023. The Company reported net income of $2,338,437 in the first quarter of 2024, compared to net income of $3,056,967 in the first quarter 2023. Net sales decreased in the first quarter of 2024 as compared to last year primarily because of the higher interest rates on mortgages, plus we continue to experience limitations on certain key production materials from suppliers. Delay of key components from vendors as well as back orders, price increases and labor shortages also negatively affected sales and earnings. These issues continue to cause delays in the completion of the homes at the Company's manufacturing facility and the set-up process of retail homes in the field, resulting in decreased net sales due to our inability to timely deliver and set up homes to customers. We expect that these challenges will continue throughout 2024. The Company also continues to experience inflation in some building products resulting in increases to our material and labor costs which may increase the wholesale and retail selling prices of our homes. Additionally, we believe that potential customers have delayed or deferred purchasing decisions when considering the interest rate environment. The current demand for affordable manufactured housing in Florida and the U.S. is slowing because of the interest rate environment and increased costs associated with mortgages. According to the Florida Manufactured Housing Association, shipments for the industry in Florida for the period from November 2023 through February 2024 declined by approximately 15% from the same period last year. The following table summarizes certain key sales statistics and percentage of gross profit. (unaudited) Three Months Ended February 3, February 4, 2024 2023 New ho

Forward-Looking Statements

Forward-Looking Statements Certain statements in this report are 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 competitive pricing pressures at both the wholesale and retail levels, inflation, increasing material costs (including forest based products) or availability of materials due to supply chain 11 Table of Contents interruptions (such as current inflation with forest products and supply issues with vinyl siding and PVC piping), changes in market demand, increase 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 attacks, or other events such as a pandemic, any armed conflict involving the United States and the impact of inflation.

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View this 10-Q filing on SEC EDGAR