Nobility Homes, Inc. (Nasdaq: NOBH) announced sales and earnings results for its second quarter earlier this week that show sales for the second quarter of 2009 were $2,388,817 as compared to $8,700,899 recorded in second quarter of 2008. Loss from operations for the second quarter of 2009 was $884,242 and the company showed a $121,126 non-cash loss for its investment in two retirement community limited partnerships. Nobility Homes is in the business of designing and producing quality, affordable manufactured homes at its one plant located in central Florida and has investments in two new affordable retirement manufactured home communities in Florida. The comments from Terry Trexler, President of Nobility Homes, don’t paint a pretty picture for the near-term outlook for affordable housing solutions for seniors in Florida but provide an sunny forecast for the long term Florida market as noted below:
"Sales and operations for the second quarter of 2009, were adversely impacted by our country’s severe economic uncertainty and the reduced manufactured housing shipments in Florida, plus the overall decline in Florida and the nation’s housing market. Industry shipments in Florida for the period of November 2008 through April 2009 were down approximately 61% from the same period last year. Fiscal year 2009 is Nobility’s 42nd year of operating in our market area and is proving to be our most challenging. Lack of retail and wholesale financing, increasing unemployment and home foreclosures, slow sales of existing site-built homes, very low consumer confidence and a poor economic outlook for the U.S. economy are just a few of the challenges facing our country, our industry, and Nobility.”
"Management understands that during these very challenging economic times, maintaining the Company’s strong financial position is vital for future growth and success. Because of deteriorating business conditions and the lack of any clarity that today’s economic challenges will improve significantly, the Company has closed the second under-performing retail model center in Florida and has temporarily closed our Belleview, Florida manufacturing plant. The Company has consolidated the Belleview product line into the Ocala manufacturing plant and continues to offer a full price range of homes to our customers. Management will continue to evaluate Prestige’s other fifteen retail model centers in Florida, along with all expenses within the Company and react in a manner consistent with maintaining our strong balance sheet.
"Although the overall housing picture, financial market and economy have declined significantly this past year and the immediate outlook for the manufactured housing industry in Florida and the nation is uncertain, the long-term demographic trends still favor future growth in the Florida market area we serve. Job formation, immigration growth and migration trends, plus consumers returning to more affordable housing should favor Florida. Management remains convinced that our specific geographic market is one of the best long-term growth areas in the country and, because of the strong operating leverage inherent in the Company, we expect to out-perform the industry. For the remainder of fiscal 2009, the country must experience a better economy with less uncertainty, improved sales in the existing home market, declining unemployment, continued low interest rates, improving credit markets, increased consumer confidence and more retail financing for the demand of Nobility’s affordable homes to improve.”