Exhibit 99.1

 

NOBILITY HOMES, INC. ANNOUNCES INCREASED SALES AND EARNINGS FOR ITS FIRST QUARTER 2018

Ocala, FL…March 16, 2018 - Today Nobility Homes, Inc. (OTCQX: NOBH) announced increased sales and earnings for its first quarter ended February 3, 2018. Sales for the first quarter of 2018 were up 13% to $9,645,818 as compared to $8,573,400 recorded in the first quarter of 2017. Income from operations for the first quarter of 2018 was up 3% to $1,090,157 versus $1,056,477 in the same period a year ago. Net income after taxes was $1,016,236 as compared to $703,323 for the same period last year. Diluted earnings per share for the first quarter of 2018 were $0.25 per share compared to $0.18 per share last year.

Nobility’s financial position during the first quarter 2018 remains very strong with cash and cash equivalents and short term investments of $27,918,057 and no outstanding debt. Working capital is $36,086,489 and our ratio of current assets to current liabilities is 8.5:1. Stockholders’ equity is $48,358,821 and the book value per share of common stock increased to $12.11.

The Board of Directors declared a one-time cash dividend of $.20 per common share for fiscal year 2017. The cash dividend is payable on April 16, 2018 to stockholders of record as of March 26, 2018.

Terry Trexler, President, stated, “The demand for affordable manufactured housing in Florida and the U.S. continues to improve. According to the Florida Manufactured Housing Association, shipments in Florida for the period from November 2017 through January 2018 were up approximately 3% from the same period last year. Our sales for fiscal 2018 continue to look positive. Shipment of homes in our market area should improve and, if we can adequately control the material and labor cost increases that the Company is experiencing because of the improvements in the total housing picture, then earnings should also improve. 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 manufactured housing buyers from purchasing affordable homes.

We understand that maintaining our strong financial position is vital for future growth and success. Because of the recent years of very challenging business conditions 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, 2017 the Company celebrated its 50th anniversary in business specializing in the design and production of quality, affordable manufactured homes. With multiple retail sales centers, an insurance agency subsidiary, and an investment in a retirement manufactured home community, 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 221 OR TERRY@NOBILITYHOMES.COM OR TOM@NOBILITYHOMES.COM

Certain statements in this report are 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, market disruptions resulting from terrorist or other attack and any armed conflict involving the United States and the impact of inflation.

NOBILITY HOMES, INC.

Consolidated Balance Sheets

	February 3, 2018			November 4, 2017
	(Unaudited)
Assets
Current assets:
Cash and cash equivalents	$	27,260,188		$	27,910,504
Short-term investments		657,869			627,087
Accounts receivable - trade		3,309,542			2,934,300
Note receivable		500,000			500,000
Mortgage notes receivable		13,910			13,495
Income tax receivable		250,927			—
Inventories		6,857,100			7,505,681
Pre-owned homes, net		809,569			1,141,863
Prepaid expenses and other current assets		1,236,587			820,224
Deferred income taxes		—			609,629
Total current assets		40,895,692			42,062,783
Property, plant and equipment, net		4,660,678			4,304,771
Pre-owned homes, net		904,357			815,358
Interest receivable		112,744			101,301
Note receivable, less current portion		1,150,826			1,134,086
Mortgage notes receivable, less current portion		239,356			240,297
Other investments		1,494,078			1,471,029
Property held for sale		599,455			599,455
Deferred income taxes		414,815			—
Cash surrender value of life insurance		3,307,848			3,262,848
Other assets		156,287			156,287
Total assets	$	53,936,136		$	54,148,215
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	736,627		$	849,782
Accrued compensation		560,773			624,989
Accrued expenses and other current liabilities		910,651			1,127,397
Income taxes payable		—			260,416
Customer deposits		2,601,152			2,796,827
Total current liabilities		4,809,203			5,659,411
Deferred income taxes		768,112			1,074,507
Total liabilities		5,577,315			6,733,918
Commitments and contingent liabilities
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		536,491			536,491
Additional paid in capital		10,669,672			10,669,231
Retained earnings		47,183,764			46,167,528
Accumulated other comprehensive income		434,580			412,233
Less treasury stock at cost, 1,371,838 shares in 2018 and 1,367,338 shares in 2017		(10,465,686	)		(10,371,186	)
Total stockholders’ equity		48,358,821			47,414,297
Total liabilities and stockholders’ equity	$	53,936,136		$	54,148,215

NOBILITY HOMES, INC.

Consolidated Statements of Comprehensive Income

(Unaudited)

	Three Months Ended
	February 3,			February 4,
	2018			2017
Net sales	$	9,645,818		$	8,573,400
Cost of goods sold		(7,428,879	)		(6,549,336	)
Gross profit		2,216,939			2,024,064
Selling, general and administrative expenses		(1,126,782	)		(967,587	)
Operating income		1,090,157			1,056,477
Other income:
Interest income		35,937			40,447
Undistributed earnings in joint venture - Majestic 21		23,049			28,598
Miscellaneous		5,734			4,771
Total other income		64,720			73,816
Income before provision for income taxes		1,154,877			1,130,293
Income tax expense		(138,641	)		(426,970	)
Net income		1,016,236			703,323
Other comprehensive income
Unrealized investment gain		22,347			115,167
Comprehensive income	$	1,038,583		$	818,490
Weighed average number of shares outstanding:
Basic		3,997,371			4,004,238
Diluted		3,999,202			4,005,538
Net income per share:
Basic	$	0.25		$	0.18
Diluted	$	0.25		$	0.18