10-Q

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

Emerging growth company

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

Quarterly Report Pursuant to Section 13 or 15 (d)

of the Securities Exchange Act of 1934

For the quarterly period ended May 3, 2025

Commission File number 000-06506

NOBILITY HOMES, INC.

(Exact name of registrant as specified in its charter)


Florida		59-1166102
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

3741 S.W. 7th Street Ocala, Florida		34474
(Address of principal executive offices)		(Zip Code)

(352) 732-5157

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act: None

     Title of Each Class

     Trading Symbol(s)

     Name of each/Exchange on
Which Registered

     Common Stock, $0.10 Par Value

     NOBH

     OTCQX

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒; No ☐.

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒; No ☐.

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐; No ☒.

Indicate the number of shares outstanding of each of the registrant’s classes of common stock, as of the latest practicable date.

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     Title of Class

     Shares Outstanding on
June 3, 2025

     Common Stock

     3,268,998

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NOBILITY HOMES, INC.

INDEX



		Page Number

PART I.	Financial Information

Item 1.	Financial Statements (Unaudited)

	Condensed Consolidated Balance Sheets as of May 3, 2025 (Unaudited) and November 2, 2024		4

	Condensed Consolidated Statements of Income for the three and six months ended May 3, 2025 (Unaudited) and May 4, 2024 (Unaudited)		5

	Condensed Consolidated Statements of Changes in Stockholders’ Equity for the three and six months ended May 3, 2025 (Unaudited) and May 4, 2024 (Unaudited)		6

	Condensed Consolidated Statements of Cash Flows for the six months ended May 3, 2025 (Unaudited) and May 4, 2024 (Unaudited)		7

	Notes to Condensed Consolidated Financial Statements (Unaudited)		8

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		11

Item 4.	Controls and Procedures		13

PART II.	Other Information		14

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds		14

Item 5.	Other Information		14

Item 6.	Exhibits		14

Signatures			15

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NOBILITY HOMES, INC.

Condensed Consolidated Balance Sheets


	May 3, 2025			November 2, 2024
	(Unaudited)
Assets
Current assets:
Cash and cash equivalents	$	13,033,939		$	13,521,296
Certificates of deposit		12,737,301			13,021,839
Short-term investments at fair value		580,997			680,017
Accounts receivable - trade		3,697,224			2,935,517
Mortgage notes receivable		4,642			4,505
Inventories		19,973,991			21,039,344
Prepaid expenses and other current assets		1,623,092			1,727,034
Total current assets		51,651,186			52,929,552
Property, plant and equipment, net		8,362,383			8,280,695
Mortgage notes receivable, less current portion		141,369			141,728
Other investments		510,900			463,633
Property held for resale		26,590			26,590
Deferred income taxes		52,431			60,628
Cash surrender value of life insurance		4,641,813			4,539,813
Other assets		156,287			156,287
Total assets	$	65,542,959		$	66,598,926
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	966,612		$	753,317
Accrued compensation		821,599			800,013
Accrued expenses and other current liabilities		1,401,834			1,826,042
Income taxes payable		741,502			692,303
Customer deposits		4,747,616			5,930,728
Total current liabilities		8,679,163			10,002,403
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; 3,268,998 and 3,268,829 shares outstanding, respectively		536,491			536,491
Additional paid in capital		11,219,065			11,140,687
Retained earnings		74,864,278			74,677,783
Less treasury stock at cost, 2,095,909 and 2,096,078 shares, respectively		(29,756,038	)		(29,758,438	)
Total stockholders’ equity		56,863,796			56,596,523
Total liabilities and stockholders’ equity	$	65,542,959		$	66,598,926

The accompanying notes are an integral part of these condensed consolidated financial statements.

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NOBILITY HOMES, INC.

Condensed Consolidated Statements of Income

(Unaudited)


	Three Months Ended						Six Months Ended
	May 3, 2025			May 4, 2024			May 3, 2025			May 4, 2024
Net sales	$	14,757,337		$	11,527,978		$	26,999,079		$	26,295,976
Cost of sales		(10,125,921	)		(7,359,584	)		(18,396,878	)		(17,393,236	)
Gross profit		4,631,416			4,168,394			8,602,201			8,902,740
Selling, general and administrative expenses		(1,889,197	)		(1,911,380	)		(3,565,847	)		(3,943,710	)
Operating income		2,742,219			2,257,014			5,036,354			4,959,030
Other income (expense):
Interest income		298,318			219,861			583,596			517,860
Undistributed earnings in joint venture - Majestic 21		21,462			20,535			47,269			42,709
Proceeds received under escrow arrangement		42,066			99,816			80,218			99,816
(Decrease) Increase in fair value of short term investments		(96,104	)		50,744			(99,020	)		101,543
Gain on disposal of property, plant and equipment		1,000			—			1,000			—
Miscellaneous		16,965			74,587			25,722			125,128
Total other income		283,707			465,543			638,785			887,056
Income before provision for income taxes		3,025,926			2,722,557			5,675,139			5,846,086
Income tax expense		(733,606	)		(696,598	)		(1,402,397	)		(1,481,690	)
Net income	$	2,292,320		$	2,025,959		$	4,272,742		$	4,364,396
Weighted average number of shares outstanding:
Basic		3,268,991			3,268,829			3,268,910			3,268,829
Diluted		3,276,400			3,277,920			3,276,808			3,279,719
Net income per share:
Basic	$	0.70		$	0.62		$	1.31		$	1.34
Diluted	$	0.70		$	0.62		$	1.30		$	1.33

The accompanying notes are an integral part of these condensed consolidated financial statements.

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NOBILITY HOMES, INC.

Condensed Consolidated Statements of Changes in Stockholders’ Equity

For the three and six months ended May 3, 2025 and May 4, 2024

(Unaudited)


	Common Stock Shares		Common Stock		Additional Paid-in-Capital		Retained Earnings			Treasury Stock			Total
Balance at November 2, 2024		3,268,829	$	536,491	$	11,140,687	$	74,677,783		$	(29,758,438	)	$	56,596,523
Stock-based compensation		—		—		40,254		—			—			40,254
Net income		—		—		—		1,980,422			—			1,980,422
Balance at February 1, 2025		3,268,829		536,491		11,180,941		76,658,205			(29,758,438	)		58,617,199
Cash dividend $1.25 per
common share		—		—		—		(4,086,247	)		—			(4,086,247	)
Stock-based compensation		169		—		38,124		—			2,400			40,524
Net income		—		—		—		2,292,320			—			2,292,320
Balance at May 3, 2025		3,268,998	$	536,491	$	11,219,065	$	74,864,278		$	(29,756,038	)	$	56,863,796


	Common Stock Shares			Common Stock		Additional Paid-in-Capital		Retained Earnings			Treasury Stock			Total
Balance at November 4, 2023		3,269,075		$	536,491	$	10,964,985	$	70,969,764		$	(29,754,942	)	$	52,716,298
Stock-based compensation		(246	)		—		36,716		—			(3,496	)		33,220
Net income		—			—		—		2,338,437			—			2,338,437
Balance at February 3, 2024		3,268,829			536,491		11,001,701		73,308,201			(29,758,438	)		55,087,955
Cash dividend $1.50 per
common share		—			—		—		(4,903,243	)		—			(4,903,243	)
Stock-based compensation		—			—		48,959		—			—			48,959
Net income		—			—		—		2,025,959			—			2,025,959
Balance at May 4, 2024		3,268,829		$	536,491	$	11,050,660	$	70,430,917		$	(29,758,438	)	$	52,259,630

The accompanying notes are an integral part of these condensed consolidated financial statements.

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NOBILITY HOMES, INC.

Condensed Consolidated Statements of Cash Flows

(Unaudited)


	Six Months Ended
	May 3, 2025			May 4, 2024
Cash flows from operating activities:
Net income	$	4,272,742		$	4,364,396
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		85,151			78,510
Deferred income taxes		8,197			(23,238	)
Undistributed earnings in joint venture - Majestic 21		(47,269	)		(42,709	)
Gain on disposal of property, plant and equipment		(1,000	)		—
Return on investment in joint venture-Majestic 21		—			1,600,889
Decrease (increase) in fair value of equity investments		99,020			(101,543	)
Stock-based compensation		80,778			82,179
Decrease (increase) in:
Accounts receivable - trade		(761,707	)		784,588
Inventories		1,065,353			312,681
Prepaid expenses and other current assets		103,942			44,138
Interest receivable		(285,062	)		(261,300	)
(Decrease) increase in:
Accounts payable		213,295			229,960
Accrued compensation		21,586			(91,385	)
Accrued expenses and other current liabilities		(424,206	)		(589,492	)
Income taxes payable		49,199			34,927
Customer deposits		(1,183,112	)		(2,733,836	)
Net cash provided by operating activities		3,296,907			3,688,765
Cash flows from investing activities:
Purchase of property, plant and equipment		(166,839	)		(143,576	)
Purchase of certificates of deposit		(4,000,000	)		(5,304,000	)
Proceeds from certificates of deposit		4,366,000			3,392,000
Proceeds from disposal of property, plant and equipment		1,000			—
Collections on interest receivable		203,600			138,398
Collections on mortgage notes receivable		222			173
Increase in cash surrender value of life insurance		(102,000	)		(88,050	)
Net cash provided by (used in) investing activities		301,983			(2,005,055	)
Cash flows from financing activities:
Payment of cash dividend		(4,086,247	)		(4,903,243	)
Net cash (used in) financing activities		(4,086,247	)		(4,903,243	)
Decrease in cash and cash equivalents		(487,357	)		(3,219,533	)
Cash and cash equivalents at beginning of period		13,521,296			13,879,358
Cash and cash equivalents at end of period	$	13,033,939		$	10,659,825
Supplemental disclosure of cash flows information:
Income taxes paid	$	1,345,000		$	1,470,000

The accompanying notes are an integral part of these condensed consolidated financial statements.

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Nobility Homes, Inc.

Notes to Condensed Consolidated Financial Statements

(Unaudited)

Note 1 Basis of Presentation and Accounting Policies

The accompanying unaudited condensed consolidated financial statements for the three and six months ended May 3, 2025 and May 4, 2024 have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission for Form 10-Q.

Accordingly, they do not include all the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements.

The unaudited financial information included in this report includes all adjustments (consisting of normal recurring adjustments) which are, in the opinion of management, necessary to reflect a fair statement of the results for the interim periods. The results of operations for the three and six months ended May 3, 2025, are not necessarily indicative of the results of the full fiscal year.

The condensed consolidated financial statements included in this report should be read in conjunction with the financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended November 2, 2024.

Note 2 Recently Issued Accounting Standards

In November 2023, the FASB issued Accounting Standards Update ("ASU") 2023-07, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures", which expands disclosures about a public entity’s reportable segments and requires more enhanced information about a reportable segment’s expenses, interim segment profit or loss, and how a public entity’s chief operating decision maker uses reported segment profit or loss information in assessing segment performance and allocating resources. The update will be effective for fiscal years beginning after December 15, 2023 (fiscal 2025) and interim periods with fiscal years beginning after December 15, 2024 (fiscal 2026). We are assessing the effect of this update on our consolidated financial statement disclosures.

In December 2023, the FASB issued ASU 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures", which expands disclosures in an entity’s income tax rate reconciliation table and regarding cash taxes paid to the U.S. Government. The update will be effective for annual periods beginning after December 15, 2024 (fiscal 2026). We are assessing the effect of this update on our consolidated financial statement disclosures.

Note 3 Inventories

New home inventory is carried at a lower of cost or net realizable value. Capitalized manufacturing costs on retail manufactured homes built by the company are valued at manufacturing cost, including materials, labor, and manufacturing overhead, or net purchase price if acquired from unaffiliated third parties. The cost of finished home inventories determined on the specific identification method is removed from inventories and recorded as a component of cost of sales at the time revenue is recognized. Under the specific identification method, if finished home inventory can be sold for a profit there is no basis to write down the inventory below the lower of cost or net realizable value.

Other pre-owned homes are acquired (Repossessions Inventory) as a convenience to the Company’s joint venture partner, 21st Mortgage Corporation. This inventory has been repossessed by 21st Mortgage Corporation. The Company acquired this inventory at the amount of the uncollected balance of the financing at the time of the foreclosure/repossessions by 21st Mortgage Corporation. The Company records this inventory at a cost determined by the specific identification method. All of the refurbishment costs are paid by 21st Mortgage Corporation. This arrangement assists 21st Mortgage Corporation with liquidation of their repossessed inventory. The timing of these repurchases by the Company is unpredictable as it is based on the repossessions 21st Mortgage Corporation incurs in the portfolio. When the home is sold, the Company retains the cost of the home, an interest factor on the cost of the home and a sales commission, from the sales proceeds. Any additional proceeds are paid to 21st Mortgage. Any shortfall from the proceeds to cover these amounts is paid by 21st Mortgage to the Company. As the Company has no risk of loss on the sale, there is no valuation allowance necessary for repossessions inventory.

Inventory held at consignment locations by affiliated entities is included in the Company’s inventory on the Company’s consolidated balance sheets.

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Pre-owned homes are also taken as trade-ins on new home sales (Trade-in Inventory). This inventory is recorded at estimated actual wholesale value, which is generally lower than market value, determined on the specific identification method, plus refurbishment costs incurred to date to bring the inventory to a more saleable state. The Trade-in Inventory amount is reduced where necessary on a unit specific basis by a valuation reserve, which management believes results in inventory being valued at net realizable value.

Other inventory costs are determined on a first-in, first-out basis.

A breakdown of the elements of inventory at May 3, 2025 and November 2, 2024 is as follows:


	May 3,		November 2,
	2025		2024
	(unaudited)
Raw materials	$	1,420,810	$	1,180,659
Work-in-process		164,722		144,959
Finished homes - Nobility		11,459,827		12,126,215
Finished homes - Other Manufacturers		5,516,959		6,349,717
Pre-owned homes		1,160,740		962,209
Model home furniture		250,933		275,585
Inventories	$	19,973,991	$	21,039,344

Note 4 Short-term Investments

The following is a summary of short-term investments at May 3, 2025 and November 2, 2024.


	May 3, 2025
	(unaudited)
	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Equity securities in a public company	$	167,930	$	413,067	$	—	$	580,997


	November 2, 2024
	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Equity securities in a public company	$	167,930	$	512,087	$	—	$	680,017

The fair values were estimated based on quoted market prices in active markets at each respective period end.

Note 5 Fair Value of Financial Instruments

The carrying amount of cash and cash equivalents, accounts and notes receivable, accounts payable, customer deposits and accrued expenses approximate fair value because of the short maturity of those instruments.

The Company accounts for the fair value of financial instruments in accordance with FASB Accounting Standards Codification (ASC) No. 820 “Fair Value Measurements” (ASC 820).

ASC 820 defines fair value as the price that would be received upon the sale of an asset or paid to transfer a liability (i.e. exit price) in an orderly transaction between market participants at the measurement date. ASC 820 requires disclosures that categorize assets and liabilities measured at fair value into one of three different levels depending on the assumptions (i.e. inputs) used in the valuation. Financial assets and liabilities are classified in their entirety based on the lowest level of input significant to the fair value measurement. The ASC 820 fair value hierarchy is defined as follows:

•

Level 1 - Valuations are based on unadjusted quoted prices in active markets for identical assets or liabilities.

•

Level 2 - Valuations are based on quoted prices for similar assets or liabilities in active markets, or quoted prices in markets that are not active for which significant inputs are observable, either directly or indirectly.

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•

Level 3 - Valuations are based on prices or valuation techniques that require inputs that are both observable and significant to the overall fair value measurement. Inputs reflect management’s best estimate of what market participants would use in valuing the asset or liability at the measurement date.

The following tables represent the Company’s financial assets and liabilities which are carried at fair value at May 3, 2025 and November 2, 2024.


	May 3, 2025
	(unaudited)
	Level 1		Level 2		Level 3
Equity securities in a public company	$	580,997	$	—	$	—


	November 2, 2024
	Level 1		Level 2		Level 3
Equity securities in a public company	$	680,017	$	—	$	—

Note 6 Net Income per Share

These condensed consolidated financial statements include “basic” and “diluted” net income per share information for all periods presented. The basic net income per share is calculated by dividing net income by the weighted average number of shares outstanding (see the condensed consolidated statement of income for weighted average shares outstanding for each period). The diluted net income per share is calculated by dividing net income by the weighted-average number of shares outstanding, adjusted for dilutive common shares, which are the result of outstanding stock options. For the three-month periods ended May 3, 2025 and May 4, 2024, the Company had 80,650 and 0 unexercised stock options outstanding, respectively, that were anti-dilutive. For the six-month periods ended May 3, 2025 and May 4, 2024, the Company had 80,650 and 15,550 unexercised stock options outstanding, respectively, that were anti-dilutive.

Note 7 Revenues by Products and Services

The Company operates in one business segment, which is manufactured housing and ancillary services.

Revenues by net sales from manufactured housing homes and insurance agent commissions for the three and six months ended May 3, 2025 and May 4, 2024 are as follows.


	(unaudited)				(unaudited)
	Three Months Ended				Six Months Ended
	May 3,		May 4,		May 3,		May 4,
	2025		2024		2025		2024
Manufactured housing
Homes sold through Company owned sales centers	$	10,292,466	$	10,475,686	$	20,611,528	$	23,108,819
Homes sold to independent dealers and through manufactured home parks, net		4,387,441		958,396		6,251,747		3,015,977
		14,679,907		11,434,082		26,863,275		26,124,796
Insurance agent commissions		77,430		93,896		135,804		171,180
Total net sales	$	14,757,337	$	11,527,978	$	26,999,079	$	26,295,976

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Results of Operations

Total net sales in the second quarter of 2025 increased 28% to $14,757,337 compared to $11,527,978 in the second quarter of 2024. Total net sales for the first six months of 2025 increased 3% to $26,999,079 compared to $26,295,976 for the first six months of 2024. The Company reported net income of $2,292,320 in the second quarter of 2025, compared to a net income of $2,025,959 in the second quarter of 2024. Net sales increased in 2025 as compared to 2024 due to the number of homes sold to independent dealers during 2025 (92 versus 63) however; the number of new retail homes sold our Company owned retail sales centers in 2025 decreased as compared to 2024 (132 versus 153).

We believe that potential customers have delayed or deferred purchasing decisions when considering the higher interest rate environment and the uncertainty of the economy continue to negatively impact sales. There also remain delays in the receipt of certain key production materials from suppliers, as well as, back orders, price increases, tariffs and labor shortages which continue to cause delays in the completion of the homes at our manufacturing facility. We also continue to experience inflation in several building products resulting in increases in our material and labor costs. We expect these challenges will continue throughout fiscal year 2025.

The current demand for affordable manufactured housing in Florida and the U.S. has slowed due to 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 2024 through April 2025 declined by approximately 11% from the same period last year.

The following table summarizes certain key sales statistics and percentage of gross profit for the three and six months ended May 3, 2025 and May 4, 2024.


	(unaudited)						(unaudited)
	Three Months Ended						Six Months Ended
	May 3,			May 4,			May 3,			May 4,
	2025			2024			2025			2024
New homes sold through Company owned sales centers		65			73			132			153
Pre-owned homes sold through Company owned sales centers		0			0			0			3
Homes sold to independent dealers		61			19			92			63
Total new factory built homes produced		109			107			196			206
Average new manufactured home price - retail	$	158,346		$	143,503		$	156,148		$	149,260
Average new manufactured home price - wholesale	$	70,532		$	68,172		$	69,894		$	68,120
As a percent of net sales:
Gross profit from the Company owned retail sales centers		24	%		24	%		23	%		23	%
Gross profit from the manufacturing facilities -including intercompany sales		25	%		20	%		25	%		22	%

Maintaining our strong financial position is vital for future growth and success. 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, 2025, we celebrated our 58th anniversary in business specializing in the design and production of quality, affordable manufactured and modular homes. With multiple retail sales centers in Florida for over 35 years and an insurance agency subsidiary, we are the only vertically integrated manufactured home company headquartered in Florida.

Insurance agent commission revenues in the second quarter of 2025 were $77,430 compared to $93,896 in the second quarter of 2024. Total insurance agent commission revenues for the first six months of 2025 were $135,804 compared to $171,180 for the first six months of 2024. Revenues are generated by new and renewal policies being written which affect agent commission earned. The Company establishes appropriate reserves for policy cancellations based on numerous factors, including past transaction history with customers, historical experience and other information, which is periodically evaluated and adjusted as deemed necessary. In the opinion of management, no reserve was deemed necessary for policy cancellations at May 3, 2025 and November 2, 2024.

Gross profit as a percentage of net sales was 31% in the second quarter of 2025 compared to 36% in the second quarter of 2024 and was 32% for the first six months of 2025 compared to 34% for the first six months of 2024. The gross profit in the second quarter of 2025 was $4,631,416 compared to $4,168,394 in the second quarter of 2024 and was $8,602,201 for the first six months of 2025 compared to $8,902,740 for the first six months of 2024. The gross profit is dependent on the sales mix of wholesale and retail homes

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and number of pre-owned homes sold. The gross profit as a percentage of net sales decreased due to an increase in the number of homes sold to independent dealers and a decrease in the number of homes sold at our Company owned retail sales centers.

Selling, general and administrative expenses as a percent of net sales was 13% in the second quarter of 2025 compared to 17% for the second quarter of 2024 and was 13% for the first six months of 2025 compared to 15% in the first six months of 2024. Selling, general and administrative expenses in the second quarter of 2025 was $1,889,197 compared to $1,911,380 in the second quarter of 2024 and was $3,565,847 for the first six months of 2025 compared to $3,943,710 for the first six months of 2024. The dollar increase in expenses for the first six months of 2024 versus 2025 were due to increase in employee sales commission as a result of higher sales at our Company owned retail sales centers.

We earned interest income of $298,318 for the second quarter of 2025 compared to $219,861 for the second quarter of 2024. For the first six months of 2025, interest income was $583,596 compared to $517,860 in the first six months of 2024. The increase in interest income for the three and six months of 2025 is primarily due to the higher interest rates and an increase in the monies invested.

Our earnings from Majestic 21 in the second quarter of 2025 were $21,462 compared to $20,535, for the second quarter of 2024. The earnings for the first six months of 2025 were $47,269 compared to $42,709 for the first six months of 2024. The earnings from Majestic 21 represent the allocation of profit and losses which are owned 50% by 21st Mortgage Corporation and 50% by the Company. The Company received a one-time distribution of approximately $1.6 million in first quarter of 2024, representing our 50% of the excess capital in the portfolio. The earnings from the Majestic 21 loan portfolio vary quarter to quarter, but overall, the earnings will continue to decrease due to the amortization, maturity and payoff of the loans.

We received distributions from 21st Mortgage Corporation in the second quarter of 2025 of $42,066 compared to $99,816 in the second quarter of 2024 and $80,218 for the first six months of 2025 compared to $99,816 for the first six months of 2024. The distributions are from an escrow arrangement related to a Finance Revenue Sharing Agreement (FRSA) between 21st Mortgage Corporation and the Company. The distributions from the escrow arrangement, relating to certain loans financed by 21st Mortgage Corporation, are recorded as income by the Company when received. The earnings from the FRSA loan portfolio will vary quarter to quarter, but will continue to decrease due to the amortization and payoff of the loans.

The Company realized pre-tax income in the second quarter of 2025 of $3,025,926 as compared to $2,722,557 in the second quarter of 2024. The pre-tax income for the first six months of 2025 was $5,675,139 as compared to $5,846,086 in the first six months of 2024.

The Company recorded an income tax expense in the amount of $733,606 in the second quarter of 2025 as compared to $696,598 in second quarter 2024. Income tax expense for the six months of 2025 was $1,402,397 compared to $1,481,690 for the six months of 2024.

We reported net income of $2,292,320 for the second quarter of 2025 or $0.70 per share, compared to $2,025,959 or $0.62 per share, for the second quarter of 2024. For the first six months of 2025 net income was $4,272,742 or $1.31 per share (diluted $1.30) compared to $4,364,396 or $1.34 per share ($1.33 diluted), in the first six months of 2024.

Liquidity and Capital Resources

Cash and cash equivalents were $13,033,939 at May 3, 2025 compared to $13,521,296 at November 2, 2024. Certificates of deposit were $12,737,301 at May 3, 2025 compared to $13,021,839 at November 2, 2024. Short-term investments were $580,997 at May 3, 2025 compared to $680,017 at November 2, 2024. Working capital was $42,972,023 at May 3, 2025 as compared to $42,927,149 at November 2, 2024. A cash dividend was paid from our cash reserves in April 2025 in the amount of $1.25 per share ($4,086,247). The Company received approximately $1.6 million in the first quarter of 2024, from 21st Mortgage Corporation, representing our 50% of the excess capital in the portfolio. Prestige new home inventory was $16,976,786 at May 3, 2025 compared to $18,475,931 at November 2, 2024. Prestige has fifty seven (57) ($5.5 million) new homes that are included in inventory and are in the field waiting to be completed and closed. We own the entire inventory for our Prestige retail sales centers, which includes new and pre-owned homes, and do not incur any third-party floor plan financing expenses.

The Company currently has no line of credit facility and no debt and does not believe that such a facility is currently necessary for its operations. The Company also has approximately $4.6 million of cash surrender value of life insurance which it would be able to access as an additional source of liquidity though the Company has not currently viewed this to be necessary. As of May 3, 2025, the Company continued to report a strong balance sheet which included total assets of approximately $65.5 million which was funded primarily by stockholders’ equity of approximately $56.9 million.

Critical Accounting Policies and Estimates

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In Item 7 of our Form 10-K, under the heading “Critical Accounting Policies and Estimates,” we have provided a discussion of the critical accounting policies and estimates that management believes affect its more significant judgments and estimates used in the preparation of our Consolidated Financial Statements. No significant changes have occurred since that time.

Forward-Looking Statements

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 competitive pricing pressures at both the wholesale and retail levels, inflation, tariffs, increasing material costs (including forest based products) or availability of materials due to supply chain 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, the impact of higher interest rates on mortgage financing, 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.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

The Company’s Chief Executive Officer (principal executive officer) and Chief Financial Officer (principal financial officer) have evaluated the effectiveness of the Company’s disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) as of the end of the period covered by this report (the “Evaluation Date”). Based on their evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that the Company’s disclosure controls and procedures were effective as of May 3, 2025.

Changes in Internal Control over Financial Reporting.

There were no changes in our internal controls over financial reporting that occurred during the second quarter of fiscal 2025 that have materially affected, or are reasonably likely to materially affect, the Company’s internal controls over financial reporting.

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Part II. OTHER INFORMATION AND SIGNATURES

There were no reportable events for Item 1, 3 and 4.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

The Company did not repurchase any shares of its common stock during the second quarter ended May 3, 2025.

Item 5. Other Information

During the three months ended May 3, 2025 no director or Section 16 officer of the Company adopted or terminated a "Rule 10b5-1 trading arrangement" or "non-Rule 10b5-1 trading arrangement," as each term is defined in item 408(a) of Regulation S-K.

Item 6. Exhibits



31.	(a)	Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act and Rule 13a-14(a) or 15d-14(a) under the Securities Exchange Act of 1934

	(b)	Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act and Rule 13a-14(a) or 15d-14(a) under the Securities Exchange Act of 1934

32.	(a)	Written Statement of Chief Executive Officer Pursuant to 18 U.S.C. §1350

	(b)	Written Statement of Chief Financial Officer Pursuant to 18 U.S.C. §1350

101.		Interactive data filing formatted in XBRL

104.		Cover Page Interactive Date File (formatted as inline XBRL and contained in Exhibit 101.

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Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.



	NOBILITY HOMES, INC.

DATE: June 16, 2025	By:	/s/ Terry E. Trexler
		Terry E. Trexler, Chairman,
		President and Chief Executive Officer

DATE: June 16, 2025	By:	/s/ Thomas W. Trexler
		Thomas W. Trexler, Executive Vice President,
		and Chief Financial Officer

DATE: June 16, 2025	By:	/s/ Lynn J. Cramer, Jr.
		Lynn J. Cramer, Jr., Treasurer
		and Principal Accounting Officer