Nobility Homes (NOBH, $24.80) sales climb +18%; but supply chain issues weigh on completion of homes

Nobility Homes, Inc. posted its diluted earnings for its third quarter (ended August 6) of $0.56 per share compared to $0.29 per in the year-ago quarter.

Sales increased +18% from the year-ago period to $13.8 million. Net income after taxes was $1.9 million as compared to $1.0 million for the same period last year.

Nobility's cash and cash equivalents, certificate of deposits and short term investments were $22.9 million as of the third quarter and no outstanding debt. Working capital stood at  $31.2 million.

Terry Trexler, President, stated, 'The demand for affordable manufactured housing in Florida and the U.S. continues to be strong. According to the Florida Manufactured Housing Association, shipments for the industry in Florida for the period from November 2021 through July 2022 were up approximately 22% from the same period last year. Although net sales increased during the three months ended August 6, 2022 as compared to the same period last year, we continued to experience the negative impact of limitations being placed on certain key production materials from suppliers, the delay or lack of key components from vendors as well as back orders, delayed shipments, price increases and labor shortages”. Trexler noted that the supply chain -related challenges in the completion of the homes are expected to continue for the remainder of fiscal year 2022 and potentially beyond until the industry supply chain normalizes.

Trexler said “maintaining our strong financial position is vital for future growth and success”. He added, “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”.