(State or other jurisdiction of incorporation or organization) |
(I.R.S. Employer Identification No.) | |
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(Address of principal executive offices) |
(Zip Code) |
Large accelerated filer | ☐ | Accelerated filer | ☐ | |||
Non-accelerated filer |
☒ | Smaller reporting company | ||||
Emerging growth company |
Title of Class |
Shares Outstanding on March 20 , 2023 | |
February 4, 2023 |
November 5, 2022 |
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(Unaudited) | ||||||||
Assets |
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Current assets: |
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Cash and cash equivalents |
$ | $ | ||||||
Certificates of deposit |
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Short-term investments |
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Accounts receivable - trade |
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Note receivable |
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Mortgage notes receivable |
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Inventories |
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Prepaid expenses and other current assets |
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Total current assets |
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Property, plant and equipment, net |
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Note receivable, less current portion |
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Mortgage notes receivable, less current portion |
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Other investments |
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Deferred income taxes |
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Cash surrender value of life insurance |
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Other assets |
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Total assets |
$ | $ | ||||||
Liabilities and Stockholders’ Equity |
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Current liabilities: |
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Accounts payable |
$ | $ | ||||||
Accrued compensation |
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Accrued expenses and other current liabilities |
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Income taxes payable |
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Customer deposits |
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Total current liabilities |
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Commitments and contingencies |
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Stockholders’ equity: |
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Preferred stock, $. |
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Common stock, $. |
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Additional paid in capital |
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Retained earnings |
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Less treasury stock at cost, |
( |
) | ( |
) | ||||
Total stockholders’ equity |
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Total liabilities and stockholders’ equity |
$ | $ | ||||||
Three Months Ended | ||||||||
February 4, 2023 |
February 5, 2022 |
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Net sales |
$ | $ | ||||||
Cost of sales |
( |
) | ( |
) | ||||
Gross profit |
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Selling, general and administrative expenses |
( |
) | ( |
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Operating income |
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Other income (loss): |
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Interest income |
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Undistributed earnings in joint venture - Majestic 21 |
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Proceeds received under escrow arrangement |
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Decrease in fair value of equity investment |
( |
) | ( |
) | ||||
Miscellaneous |
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Total other income |
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Income before provision for income taxes |
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Income tax expense |
( |
) | ( |
) | ||||
Net income |
$ | $ | ||||||
Weighted average number of shares outstanding: |
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Basic |
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Diluted |
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Net income per share: |
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Basic |
$ | $ | ||||||
Diluted |
$ | $ |
Common Stock Shares |
Common Stock |
Additional Paid-in-Capital |
Retained Earnings |
Treasury Stock |
Total | |||||||||||||||||||
Balance at November 5, 2022 |
$ | $ | $ | $ | ( |
) | $ | |||||||||||||||||
Stock-based compensation |
— | — | ||||||||||||||||||||||
Net income |
— | — | — | — | ||||||||||||||||||||
Balance at February 4, 2023 |
$ | $ | $ | $ | ( |
) | $ | |||||||||||||||||
Common Stock Shares |
Common Stock |
Additional Paid-in-Capital |
Retained Earnings |
Treasury Stock |
Total | |||||||||||||||||||
Balance at November 6, 2021 |
$ | $ | $ | $ | ( |
) | $ | |||||||||||||||||
Stock-based compensation |
— | — | ||||||||||||||||||||||
Exercise of employee stock options |
— | ( |
) | — | — | |||||||||||||||||||
Treasury stock purchase |
( |
) | — | — | — | ( |
) | ( |
) | |||||||||||||||
Net income |
— | — | — | — | ||||||||||||||||||||
Balance at February 5, 2022 |
$ | $ | $ | $ | ( |
) | $ | |||||||||||||||||
Three Months Ended | ||||||||
February 4, 2023 |
February 5, 2022 |
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Cash flows from operating activities: |
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Net income |
$ | $ | ||||||
Adjustments to reconcile net income to net cash provide by operating activities: |
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Depreciation |
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Undistributed earnings in joint venture - Majestic 21 |
( |
) | ( |
) | ||||
Decrease in fair market value of equity investments |
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Stock-based compensation |
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Amortization of operating lease right of use assets |
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Decrease (increase) in: |
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Accounts receivable - trade |
( |
) | ||||||
Inventories |
( |
) | ||||||
Prepaid expenses and other current assets |
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Interest receivable |
( |
) | ||||||
(Decrease) increase in: |
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Accounts payable |
( |
) | ||||||
Accrued compensation |
( |
) | ||||||
Accrued expenses and other current liabilities |
( |
) | ||||||
Income taxes payable |
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Customer deposits |
( |
) | ( |
) | ||||
Net cash provided by operating activities |
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Cash flows from investing activities: |
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Purchase of property, plant and equipment |
( |
) | ( |
) | ||||
Purchase of certificates of deposit |
( |
) | — | |||||
Proceeds from certificates of deposit |
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Collections on interest receivable |
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Collections on mortgage notes receivable |
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Collections on equipment and other notes receivable |
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Issuance of mobile home park note receivable |
( |
) | ||||||
Increase in cash surrender value of life insurance |
( |
) | ( |
) | ||||
Net cash (used in) provided by investing activities |
( |
) | ||||||
Cash flows from financing activities: |
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Reduction of operating lease obligation |
( |
) | ||||||
Net cash (used in) financing activities |
( |
) | ||||||
Increase in cash and cash equivalents |
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Cash and cash equivalents at beginning of year |
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Cash and cash equivalents at end of quarter |
$ | $ | ||||||
Supplemental financing activity: |
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Noncash exercise of employee stock options |
$ | $ | ( |
) | ||||
February 4, |
November 5, |
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2023 |
2022 |
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(unaudited) |
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Raw materials |
$ | $ | ||||||
Work-in-process |
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Inventory consigned to affiliated entities |
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Finished homes - Nobility |
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Finished homes - Other |
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Pre-owned homes |
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Model home furniture |
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Inventories |
$ | $ | ||||||
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February 4, 2023 |
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(unaudited) |
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Cost |
Gross Unrealized Gains |
Gross Unrealized Losses |
Estimated Fair Value |
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Equity securities in a public company |
$ | $ | $ | $ | ||||||||||||
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November 5, 2022 | ||||||||||||||||
Cost | Gross Unrealized Gains |
Gross Unrealized Losses |
Estimated Fair Value |
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Equity securities in a public company |
$ | $ | $ | $ | ||||||||||||
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• | 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. |
• | Level 3 - Valuations are based on prices or valuation techniques that require inputs that are both unobservable 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. |
February 4, 2023 |
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(unaudited) |
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Level 1 |
Level 2 |
Level 3 |
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Equity securities in a public company |
$ | $ | $ | |||||||||
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November 5, 2022 | ||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||
Equity securities in a public company |
$ | $ | $ | |||||||||
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(unaudited) |
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Three Months Ended |
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February 4, |
February 5, |
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2023 |
2022 |
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Manufactured housing |
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Homes sold through Company owned sales centers |
$ | $ | ||||||
Homes sold to independent dealers and through manufactured home parks, net |
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$ | $ | |||||||
Insurance agent commissions |
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Total net sales |
$ | $ | ||||||
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(unaudited) | ||||||||
Three Months Ended | ||||||||
February 4, | February 5, | |||||||
2023 | 2022 | |||||||
New homes sold through Company owned sales centers |
105 | 87 | ||||||
Pre-owned homes sold through Company owned sales centers |
2 | 6 | ||||||
Homes sold to independent dealers |
36 | 10 | ||||||
Total new factory built homes produced |
117 | 92 | ||||||
Average new manufactured home price - retail |
$ | 144,178 | $ | 107,281 | ||||
Average new manufactured home price - wholesale |
$ | 75,350 | $ | 63,781 | ||||
As a percent of net sales: |
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Gross profit from the Company owned retail sales centers |
23 | % | 18 | % | ||||
Gross profit from the manufacturing facilities -including intercompany sales |
26 | % | 13 | % |
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. |
NOBILITY HOMES, INC. | ||||||
DATE: March 20, 2023 |
By: |
/s/ Terry E. Trexler | ||||
Terry E. Trexler, Chairman, | ||||||
President and Chief Executive Officer | ||||||
DATE: March 20, 2023 |
By: |
/s/ Thomas W. Trexler | ||||
Thomas W. Trexler, Executive Vice President, | ||||||
and Chief Financial Officer | ||||||
DATE: March 20, 2023 |
By: |
/s/ Lynn J. Cramer, Jr. | ||||
Lynn J. Cramer, Jr., Treasurer | ||||||
and Principal Accounting Officer |