Nobility Homes Inc. (NOBH, Financial) filed Quarterly Report for the period ended 2010-07-31.
Nobility Homes Inc. has a market cap of $40 million; its shares were traded at around $9.85 with and P/S ratio of 3.4. NOBH is in the portfolios of Mario Gabelli, Mario Gabelli, Chuck Royce of Royce& Associates.
The Company earned from Majestic 21 in the third quarter of 2010 $3,695 compared to $45,426 for the third quarter of 2009. For the first nine months of 2010 the Company earned from Majestic 21 $15,099 compared to $137,159 for the first nine months of 2009. 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 primary assets of Majestic 21 are loans that were originated from 1997 until 2003. In 2003, the Company entered into a finance revenue sharing agreement with 21st Mortgage Corporation pursuant to which all loans originated from that point forward are owned by 21st Mortgage Corporation pursuant to the finance revenue sharing agreement as further discussed below. Consequently, no additional loans are going into the Majestic 21 joint venture and the balance of the loans/assets of the partnership is declining each month due to amortization and payoffs.
The Company earned interest on cash, cash equivalents and short and long-term investments in the amount of $65,566 for the third quarter of 2010 compared to $64,380 for the third quarter of 2009. For the first nine months of 2010 interest earned on cash, cash equivalents and short and long-term investments were $194,911 compared to $279,218 in the first nine months of 2009. The decreased interest income was primarily due to a decrease in the amount of cash, cash equivalents and long-term investments and in the lower variable rate portion of our cash and cash equivalents balances.
As a result of the factors discussed above, losses for the third quarter of 2010 were $132,546 or $0.03 per share compared to income of $21,862 or $0.1 per share for the third quarter of 2009. For the first nine months of 2010 losses were $671,920 or $0.17 per share compared to losses of $555,375 or $0.15 per share in the third quarter 2009.
Cash and cash equivalents were $5,743,495 at July 31, 2010 compared to $3,995,167 at October 31, 2009. Short and long-term investments were $4,716,715 at July 31, 2010 compared to $6,108,324 at October 31, 2009. The increase in cash and cash equivalents and decrease in short and long-term investments was due the maturity of two bonds in the second quarter of 2010. Working capital was $25,360,430 at July 31, 2010 as compared to $25,306,819 at October 31, 2009. Nobility owns the entire inventory for its Prestige retail sales centers and does not incur any third party floor plan financing expenses.
Accounts payable at July 31, 2010 was $99,077 compared to $91,636 at October 31, 2009 due to the increased production at the manufacturing plant. Accrued compensation at July 31, 2010 was $26,407 compared to $62,610 at October 31, 2009. Since accrued compensation consists largely of sales commissions, bonuses and accrued salaries the decrease in accrued compensation was primarily due to the decrease in accrued salaries in third quarter of 2010 compared to fourth quarter of 2009. Accrued expenses and other current liabilities at July 31, 2010 was $186,866 compared to $240,539 at October 31, 2009. The decrease in accrued expenses and other liabilities is primarily due to the decrease in the number of retail sold homes pending closing. Customer deposits increased to $916,571 at July 31, 2010 compared to $410,578 at October 31, 2009 due to retail customers waiting construction approvals.
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Nobility Homes Inc. has a market cap of $40 million; its shares were traded at around $9.85 with and P/S ratio of 3.4. NOBH is in the portfolios of Mario Gabelli, Mario Gabelli, Chuck Royce of Royce& Associates.
Highlight of Business Operations:
Insurance revenues in the third quarter of 2010 were $60,662 compared to $62,680 in the third quarter of 2009. Total insurance revenues for the first nine months of 2010 were $186,579 compared to $223,582 for the first nine months of 2009. The decline in insurance agent commissions resulted from fewer new policies generated, because the decrease in the number of homes sold through the Prestige sales centers. Prestiges wholly-owned subsidiary, Mountain Financial, Inc., is an independent insurance agent, licensed mortgage lender and mortgage broker. Its principal activity is the performance of retail insurance services, which involves placing various types of insurance, including property and casualty, automobile and extended home warranty coverage, with insurance underwriters on behalf of its Prestige customers in connection with their purchase and financing of manufactured homes. As agent, Mountain Financial, Inc. assists our customers in obtaining various insurance and extended warranty coverages with insurance underwriters. As such, we have no agreements with homeowners and/or third party insurance companies other than agency agreements with various insurance carriers. Mountain Financial, Inc. has no material commitments or contingencies. 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 is deemed necessary for policy cancellations at July 31, 2010 and October 31, 2009.The Company earned from Majestic 21 in the third quarter of 2010 $3,695 compared to $45,426 for the third quarter of 2009. For the first nine months of 2010 the Company earned from Majestic 21 $15,099 compared to $137,159 for the first nine months of 2009. 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 primary assets of Majestic 21 are loans that were originated from 1997 until 2003. In 2003, the Company entered into a finance revenue sharing agreement with 21st Mortgage Corporation pursuant to which all loans originated from that point forward are owned by 21st Mortgage Corporation pursuant to the finance revenue sharing agreement as further discussed below. Consequently, no additional loans are going into the Majestic 21 joint venture and the balance of the loans/assets of the partnership is declining each month due to amortization and payoffs.
The Company earned interest on cash, cash equivalents and short and long-term investments in the amount of $65,566 for the third quarter of 2010 compared to $64,380 for the third quarter of 2009. For the first nine months of 2010 interest earned on cash, cash equivalents and short and long-term investments were $194,911 compared to $279,218 in the first nine months of 2009. The decreased interest income was primarily due to a decrease in the amount of cash, cash equivalents and long-term investments and in the lower variable rate portion of our cash and cash equivalents balances.
As a result of the factors discussed above, losses for the third quarter of 2010 were $132,546 or $0.03 per share compared to income of $21,862 or $0.1 per share for the third quarter of 2009. For the first nine months of 2010 losses were $671,920 or $0.17 per share compared to losses of $555,375 or $0.15 per share in the third quarter 2009.
Cash and cash equivalents were $5,743,495 at July 31, 2010 compared to $3,995,167 at October 31, 2009. Short and long-term investments were $4,716,715 at July 31, 2010 compared to $6,108,324 at October 31, 2009. The increase in cash and cash equivalents and decrease in short and long-term investments was due the maturity of two bonds in the second quarter of 2010. Working capital was $25,360,430 at July 31, 2010 as compared to $25,306,819 at October 31, 2009. Nobility owns the entire inventory for its Prestige retail sales centers and does not incur any third party floor plan financing expenses.
Accounts payable at July 31, 2010 was $99,077 compared to $91,636 at October 31, 2009 due to the increased production at the manufacturing plant. Accrued compensation at July 31, 2010 was $26,407 compared to $62,610 at October 31, 2009. Since accrued compensation consists largely of sales commissions, bonuses and accrued salaries the decrease in accrued compensation was primarily due to the decrease in accrued salaries in third quarter of 2010 compared to fourth quarter of 2009. Accrued expenses and other current liabilities at July 31, 2010 was $186,866 compared to $240,539 at October 31, 2009. The decrease in accrued expenses and other liabilities is primarily due to the decrease in the number of retail sold homes pending closing. Customer deposits increased to $916,571 at July 31, 2010 compared to $410,578 at October 31, 2009 due to retail customers waiting construction approvals.
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