Nobility Homes Inc. (NOBH, Financial) filed Quarterly Report for the period ended 2010-05-01.
Nobility Homes Inc. has a market cap of $36.9 million; its shares were traded at around $9.095 with and P/S ratio of 3.1. NOBH is in the portfolios of Chuck Royce of Royce& Associates.
The Company earned interest on cash, cash equivalents and short and long-term investments in the amount of $61,676 for the second quarter of 2010 compared to $91,043 for the second quarter of 2009. For the first six months of 2010 interest earned on cash, cash equivalents and short and long-term investments were $129,345 compared to $241,838 in the first six 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.
The Company reported losses from investments in these retirement community limited partnerships in the amount of $194,825 for the second quarter of 2010 compared to $121,126 for the second quarter of 2009. For the first six months of 2010 the Company reported losses of $450,049 compared to $188,037 in the first six months of 2009. Although these investments will report losses in the initial fill-up stage, management believes that new attractive and affordable manufactured home communities for senior citizens will be a significant growth area for Florida in the future.
As a result of the factors discussed above, losses for the second quarter of 2010 were $202,029 or $0.05 per share compared to losses of $506,440 or $0.12 per share for the second quarter of 2009. For the first six months of 2010 losses were $539,374 or $0.13 per share compared to losses of $629,588 or $0.15 per share in the second quarter 2009.
Cash and cash equivalents were $5,247,922 at May 1, 2010 compared to $3,995,167 at October 31, 2009. Short and long-term investments were $4,768,211 at May 1, 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 $25,229,899 at May 1, 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 May 1, 2010 was $172,572 compared to $91,636 at October 31, 2009 due to the increased production at the manufacturing plant. Accrued compensation at May 1, 2010 was $91,836 compared to $62,610 at October 31, 2009. Since accrued compensation consists largely of sales commissions, bonuses and accrued salaries the increase in accrued compensation was primarily due to the increase in accrued salaries in second quarter of 2010 compared to fourth quarter of 2009. Accrued expenses and other current liabilities at May 1, 2010 was $192,693 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 $738,397 at May 1, 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 $36.9 million; its shares were traded at around $9.095 with and P/S ratio of 3.1. NOBH is in the portfolios of Chuck Royce of Royce& Associates.
Highlight of Business Operations:
Insurance revenues in the second quarter of 2010 were $66,336 compared to $98,554 in the second quarter of 2009. Total insurance revenues for the first six months of 2010 were $125,918 compared to $160,901 for the first six 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 coverage 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 May 1, 2010 and October 31, 2009.The Company earned interest on cash, cash equivalents and short and long-term investments in the amount of $61,676 for the second quarter of 2010 compared to $91,043 for the second quarter of 2009. For the first six months of 2010 interest earned on cash, cash equivalents and short and long-term investments were $129,345 compared to $241,838 in the first six 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.
The Company reported losses from investments in these retirement community limited partnerships in the amount of $194,825 for the second quarter of 2010 compared to $121,126 for the second quarter of 2009. For the first six months of 2010 the Company reported losses of $450,049 compared to $188,037 in the first six months of 2009. Although these investments will report losses in the initial fill-up stage, management believes that new attractive and affordable manufactured home communities for senior citizens will be a significant growth area for Florida in the future.
As a result of the factors discussed above, losses for the second quarter of 2010 were $202,029 or $0.05 per share compared to losses of $506,440 or $0.12 per share for the second quarter of 2009. For the first six months of 2010 losses were $539,374 or $0.13 per share compared to losses of $629,588 or $0.15 per share in the second quarter 2009.
Cash and cash equivalents were $5,247,922 at May 1, 2010 compared to $3,995,167 at October 31, 2009. Short and long-term investments were $4,768,211 at May 1, 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 $25,229,899 at May 1, 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 May 1, 2010 was $172,572 compared to $91,636 at October 31, 2009 due to the increased production at the manufacturing plant. Accrued compensation at May 1, 2010 was $91,836 compared to $62,610 at October 31, 2009. Since accrued compensation consists largely of sales commissions, bonuses and accrued salaries the increase in accrued compensation was primarily due to the increase in accrued salaries in second quarter of 2010 compared to fourth quarter of 2009. Accrued expenses and other current liabilities at May 1, 2010 was $192,693 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 $738,397 at May 1, 2010 compared to $410,578 at October 31, 2009 due to retail customers waiting construction approvals.
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