On this page of StockholderLetter.com we present the latest annual shareholder letter from NOBILITY HOMES INC — ticker symbol NOBH. Reading current and past NOBH letters to shareholders can bring important insights into the investment thesis.

About the Company
Nobility Homes, Inc., a Florida corporation incorporated in 1967,
designs, manufactures and sells a broad line of manufactured and
modular homes through its own retail sales centers throughout
Florida. Nobility also sells its manufactured and modular homes on
a wholesale basis to independent manufactured home retail dealers
and manufactured home communities.
We pride ourselves on providing well-designed and affordably
built homes that are comfortable, pleasantly decorated, energy
efficient and engineered for years of carefree living. The Company   s
manufacturing plant and corporate headquarters are located in
Ocala, Florida.
Our homes are available in approximately 100 active models sold
under the trade names    Kingswood   ,    Richwood   ,    Tropic Isle   ,
   Regency Manor    and    Tropic Manor   . Our home sales are single
and multi-section, range in size from 464 to 2,800 square feet and
contain from one to five bedrooms and retail prices for our homes
typically range from approximately $70,000 to $220,000.
Prestige Home Centers, Inc., our wholly owned subsidiary,
operates ten retail sales centers in north and central Florida: Ocala
(two), Chiefland, Auburndale, Inverness, Hudson, Tavares, Yulee,
Panama City, Punta Gorda and executive offices are located at our
corporate headquarters in Ocala, Florida. Each of Prestige   s retail
sales centers is located within 350 miles of Nobility   s Ocala
manufacturing facility.
The primary customers of Prestige are homebuyers who
generally purchase manufactured or modular homes to place on
their own home sites. Prestige operates its retail sales centers using
a model home concept. Each of the homes displayed at its retail
sales centers is furnished and decorated as a model home.
Mountain Financial, Inc., a wholly owned subsidiary of Prestige
Home Centers, Inc., is an independent insurance agent and
licensed loan originator. Mountain Financial provides automobile
insurance, extended warranty coverage and property and casualty
insurance to Prestige customers in connection with their purchase
and financing of manufactured homes.
Contents
1
Shareholders    Letter
3
Directors
3
Officers
3
General Shareholders   
Information
3
General Information
To Our Shareholders
Total net sales in fiscal year 2023 increased 23% to $63,318,392
compared to $51,522,054 in fiscal year 2022. The Company reported a
51% increase in net income to $10,898,864 in fiscal year 2023, compared
to a net income of $7,232,029 in fiscal year 2022. The primary reason
that sales and net income increased in fiscal 2023 over fiscal 2022 was
due to the severe supply chain challenges experienced during the first
nine months of fiscal 2022 that negatively impacted our ability to complete
and deliver homes to customers. During fiscal year 2023, the supply chain
challenges eased compared to the prior year and we were able to
complete and deliver more retail customers homes, which included us
selling sixty-four new homes during fiscal year 2023 purchased for
$10,871,250 from other manufacturers, to help reduce our backlog. We
continue to experience 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. These issues continue to cause delays in the completion
of the homes at the Company   s manufacturing facility and the set-up
process of retail homes in the field, resulting in decreased net sales due
to our inability to timely deliver and set up homes to customers. We expect
that these challenges will continue throughout fiscal 2024 and potentially
beyond. The Company also continues to experience inflation in some
building products resulting in increases to our material and labor costs
which may increase the wholesale and retail selling prices of our homes.
The current demand for affordable manufactured housing in Florida
and the U.S. is slowing, which we believe is because of the increased
interest rate environment. According to the Florida Manufactured Housing
Association, shipments for the industry in Florida for the period from
November 2022 through October 2023 declined by approximately 16%
from the same period last year. Nobility   s financial position during fiscal
year 2023 remained very strong with cash and cash equivalents,
certificates of deposit and short-term investments of $24.6 million and no
outstanding debt. Working capital is $37.9 million and our ratio of current
assets to current liabilities is 3.9:1. Stockholders    equity is $52.7 million
and the book value per share of common stock increased to $16.13.
Maintaining our strong financial position is vital for future growth and
success. Because of very challenging business conditions during
economic recessions in our market area, management will continue to
evaluate all expenses and react in a manner consistent with maintaining
our strong financial position, while exploring opportunities to expand our
distribution and manufacturing operations.
1
On June 5, 2023, we celebrated our 56th 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 30 years and an insurance agency subsidiary, we are the
only vertically integrated manufactured home company headquartered in
Florida.
We gratefully acknowledge the Board of Directors, officers,
employees, and friends of the Company and express our appreciation for
their dedication. Our appreciation is also extended to our retail distribution
network, customers and suppliers for their support and loyalty. We
sincerely thank our stockholders for their continued investment confidence
in Nobility and pledge our efforts to maintain and guard that trust. With this
confidence and support, we enter fiscal year 2024 with full awareness of
the challenging opportunities that lie ahead and with renewed enthusiasm
and determination to achieve the goals for higher sales and operating
results that have been set for your Company.
Terry E. Trexler
Chairman of the Board
and President
2
Thomas W. Trexler
Executive Vice President
and Chief Financial Officer
 • shareholder letter icon 5/31/2024 Letter Continued (Full PDF)
 • stockholder letter icon 2/3/2023 NOBH Stockholder Letter
 • stockholder letter icon More "Miscellaneous" Category Stockholder Letters
 • Benford's Law Stocks icon NOBH Benford's Law Stock Score = 51


NOBH Shareholder/Stockholder Letter Transcript:



About the Company
Nobility Homes, Inc., a Florida corporation incorporated in 1967,
designs, manufactures and sells a broad line of manufactured and
modular homes through its own retail sales centers throughout
Florida. Nobility also sells its manufactured and modular homes on
a wholesale basis to independent manufactured home retail dealers
and manufactured home communities.
We pride ourselves on providing well-designed and affordably
built homes that are comfortable, pleasantly decorated, energy
efficient and engineered for years of carefree living. The Company   s
manufacturing plant and corporate headquarters are located in
Ocala, Florida.
Our homes are available in approximately 100 active models sold
under the trade names    Kingswood   ,    Richwood   ,    Tropic Isle   ,
   Regency Manor    and    Tropic Manor   . Our home sales are single
and multi-section, range in size from 464 to 2,800 square feet and
contain from one to five bedrooms and retail prices for our homes
typically range from approximately $70,000 to $220,000.
Prestige Home Centers, Inc., our wholly owned subsidiary,
operates ten retail sales centers in north and central Florida: Ocala
(two), Chiefland, Auburndale, Inverness, Hudson, Tavares, Yulee,
Panama City, Punta Gorda and executive offices are located at our
corporate headquarters in Ocala, Florida. Each of Prestige   s retail
sales centers is located within 350 miles of Nobility   s Ocala
manufacturing facility.
The primary customers of Prestige are homebuyers who
generally purchase manufactured or modular homes to place on
their own home sites. Prestige operates its retail sales centers using
a model home concept. Each of the homes displayed at its retail
sales centers is furnished and decorated as a model home.
Mountain Financial, Inc., a wholly owned subsidiary of Prestige
Home Centers, Inc., is an independent insurance agent and
licensed loan originator. Mountain Financial provides automobile
insurance, extended warranty coverage and property and casualty
insurance to Prestige customers in connection with their purchase
and financing of manufactured homes.
Contents
1
Shareholders    Letter
3
Directors
3
Officers
3
General Shareholders   
Information
3
General Information

To Our Shareholders
Total net sales in fiscal year 2023 increased 23% to $63,318,392
compared to $51,522,054 in fiscal year 2022. The Company reported a
51% increase in net income to $10,898,864 in fiscal year 2023, compared
to a net income of $7,232,029 in fiscal year 2022. The primary reason
that sales and net income increased in fiscal 2023 over fiscal 2022 was
due to the severe supply chain challenges experienced during the first
nine months of fiscal 2022 that negatively impacted our ability to complete
and deliver homes to customers. During fiscal year 2023, the supply chain
challenges eased compared to the prior year and we were able to
complete and deliver more retail customers homes, which included us
selling sixty-four new homes during fiscal year 2023 purchased for
$10,871,250 from other manufacturers, to help reduce our backlog. We
continue to experience 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. These issues continue to cause delays in the completion
of the homes at the Company   s manufacturing facility and the set-up
process of retail homes in the field, resulting in decreased net sales due
to our inability to timely deliver and set up homes to customers. We expect
that these challenges will continue throughout fiscal 2024 and potentially
beyond. The Company also continues to experience inflation in some
building products resulting in increases to our material and labor costs
which may increase the wholesale and retail selling prices of our homes.
The current demand for affordable manufactured housing in Florida
and the U.S. is slowing, which we believe is because of the increased
interest rate environment. According to the Florida Manufactured Housing
Association, shipments for the industry in Florida for the period from
November 2022 through October 2023 declined by approximately 16%
from the same period last year. Nobility   s financial position during fiscal
year 2023 remained very strong with cash and cash equivalents,
certificates of deposit and short-term investments of $24.6 million and no
outstanding debt. Working capital is $37.9 million and our ratio of current
assets to current liabilities is 3.9:1. Stockholders    equity is $52.7 million
and the book value per share of common stock increased to $16.13.
Maintaining our strong financial position is vital for future growth and
success. Because of very challenging business conditions during
economic recessions in our market area, management will continue to
evaluate all expenses and react in a manner consistent with maintaining
our strong financial position, while exploring opportunities to expand our
distribution and manufacturing operations.
1

On June 5, 2023, we celebrated our 56th 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 30 years and an insurance agency subsidiary, we are the
only vertically integrated manufactured home company headquartered in
Florida.
We gratefully acknowledge the Board of Directors, officers,
employees, and friends of the Company and express our appreciation for
their dedication. Our appreciation is also extended to our retail distribution
network, customers and suppliers for their support and loyalty. We
sincerely thank our stockholders for their continued investment confidence
in Nobility and pledge our efforts to maintain and guard that trust. With this
confidence and support, we enter fiscal year 2024 with full awareness of
the challenging opportunities that lie ahead and with renewed enthusiasm
and determination to achieve the goals for higher sales and operating
results that have been set for your Company.
Terry E. Trexler
Chairman of the Board
and President
2
Thomas W. Trexler
Executive Vice President
and Chief Financial Officer



shareholder letter icon 5/31/2024 Letter Continued (Full PDF)
 

NOBH Stockholder/Shareholder Letter (NOBILITY HOMES INC) | www.StockholderLetter.com
Copyright © 2023 - 2024, All Rights Reserved

Nothing in StockholderLetter.com is intended to be investment advice, nor does it represent the opinion of, counsel from, or recommendations by BNK Invest Inc. or any of its affiliates, subsidiaries or partners. None of the information contained herein constitutes a recommendation that any particular security, portfolio, transaction, or investment strategy is suitable for any specific person. All viewers agree that under no circumstances will BNK Invest, Inc,. its subsidiaries, partners, officers, employees, affiliates, or agents be held liable for any loss or damage caused by your reliance on information obtained. By visiting, using or viewing this site, you agree to the following Full Disclaimer & Terms of Use and Privacy Policy.