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Nobility Homes, Inc. Announces Increase in Sales and Earnings for Its Third Quarter 2014

OCALA, Fla., Sept. 15, 2014 (GLOBE NEWSWIRE) -- Today Nobility Homes, Inc. (Pink Sheets:NOBH) announced sales and earnings results for its third quarter ended August 2, 2014. Sales for third quarter 2014 were up 12% to $5,346,639 as compared to $4,758,456 recorded in third quarter 2013. Income from operations was $289,126 versus $154,940 last year. Net income after taxes was $252,268 as compared to $121,501 last year. The net income after taxes for third quarter 2014 included a $96,668 non-cash loss from our investment in one retirement community limited partnership. Diluted earnings per share were $.06 per share compared to $.03 per share last year.

For the first nine months of fiscal 2014, sales were up 25% to $14,969,094 as compared to $11,973,742 for the first nine months of 2013. Income from operations was $678,940 versus $99,191 last year. Net income after taxes was $640,570 compared to $79,325 last year. The net income after taxes for the first nine months of 2014 included a $231,355 non-cash loss from our investment in one retirement community limited partnership. Diluted earnings per share were $0.16 per share compared to $.02 per share last year.

Nobility's financial position for the first nine months of 2014 remains very strong with cash and cash equivalents and short term investments of $12,940,363 and no outstanding debt. Working capital is $22,191,124 and our ratio of current assets to current liabilities is 12.1:1. Stockholders' equity is $35,897,004 and the book value per share of common stock increased to $8.84.

Terry Trexler, President, stated, "Our sales for the third quarter of 2014 were strong despite tight retail credit standards and uncertain economic conditions present in our country. According to the Florida Manufactured Housing Association, shipments in Florida for the period from November 2013 through July 2014 were up approximately 22% from the same period last year. We believe that the long-term demographic trends favor future growth in the Florida market area we serve, and that the current economic environment requires us to maintain our strong financial position for future growth and success."

We have specialized for 47 years in the design and production of quality, affordable manufactured homes at our plant located in central Florida. With our multiple retail sales centers, an insurance subsidiary, and investments in retirement manufactured home communities, 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, 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.
Consolidated Balance Sheets
August 2, November 2,
2014 2013
(Unaudited)
Assets
Current assets:
Cash and cash equivalents $ 12,459,002 $ 10,468,453
Short-term investments 481,361 455,232
Accounts receivable - trade 1,388,588 2,701,057
Mortgage notes receivable, current 6,561 4,549
Income tax receivable 9,142 --
Inventories 6,116,856 5,043,816
Pre-owned homes, current 2,770,354 2,187,598
Prepaid expenses and other current assets 434,446 319,546
Deferred income taxes 522,227 656,461
Total current assets 24,188,537 21,836,712
Property, plant and equipment, net 3,987,570 3,731,463
Pre-owned homes 2,357,960 4,316,397
Mortgage notes receivable, long term 181,557 183,753
Other investments 2,812,831 2,938,273
Deferred income taxes 1,473,773 1,339,539
Other assets 2,892,189 2,804,484
Total assets $ 37,894,417 $ 37,150,621
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 281,282 $ 645,519
Accrued compensation 188,317 170,026
Accrued expenses and other current liabilities 520,091 614,368
Customer deposits 1,007,723 537,052
Total current liabilities 1,997,413 1,966,965
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 10,640,294 10,632,060
Retained earnings 33,960,354 33,319,784
Accumulated other comprehensive income 266,507 240,378
Less treasury stock at cost, 1,303,363 shares in 2014 and 1,307,854 shares in 2013 (9,506,642) (9,545,057)
Total stockholders' equity 35,897,004 35,183,656
Total liabilities and stockholders' equity $ 37,894,417 $ 37,150,621
NOBILITY HOMES, INC.
Consolidated Statements of Comprehensive Income
(Unaudited)
Three Months Ended Nine Months Ended
August 2, August 3, August 2, August 3,
2014 2013 2014 2013
Net sales $ 5,346,639 $ 4,758,456 $ 14,969,094 $11,973,742
Cost of goods sold (4,286,471) (3,854,816) (12,059,098) (9,946,333)
Gross profit 1,060,168 903,640 2,909,996 2,027,409
Selling, general and administrative expenses (771,042) (748,700) (2,231,056) (1,928,218)
Operating income 289,126 154,940 678,940 99,191
Other income (loss):
Interest income 11,099 11,398 39,113 40,344
Undistributed earnings in joint venture -- Majestic 21 34,105 29,180 105,913 89,380
Losses from investments in retirement community limited partnerships (96,668) (93,290) (231,355) (223,131)
Miscellaneous 15,464 19,273 48,817 73,541
Total other loss (36,000) (33,439) (37,512) (19,866)
Income before provision for income taxes 253,126 121,501 641,428 79,325
Income tax (858) -- (858) --
Net income 252,268 121,501 640,570 79,325
Other comprehensive income
Unrealized investment gain 21,306 96,497 26,129 141,127
Comprehensive income $ 273,574 $ 217,998 $ 666,699 $ 220,452
Weighed average number of shares outstanding:
Basic 4,059,922 4,057,053 4,058,677 4,057,053
Diluted 4,062,024 4,057,053 4,060,244 4,057,053
Net income per share:
Basic $ 0.06 $ 0.03 $ 0.16 $ 0.02
Diluted $ 0.06 $ 0.03 $ 0.16 $ 0.02

Source:Nobility Homes, Inc.