Results of Operations
Total web gross sales in first quarter of 2022 elevated 19% to
to
first quarter 2021. According to the
shipments for the business in
first quarter of 2022, we continued to expertise the destructive influence of
limitations being positioned on sure key manufacturing supplies from suppliers, the
delay or lack of key elements from distributors in addition to again orders, delayed
shipments, value will increase and labor shortages. Production has incurred
shortages in lots of constructing merchandise, which has restricted manufacturing and delayed
the completion of the houses each on the manufacturing plant and the arrange
course of within the subject. In addition, we’ve got continued to expertise document
inflation in most constructing merchandise, leading to will increase to our materials and
labor prices and a corresponding lower in gross earnings. We count on that these
challenges will proceed for a lot of 2022 and probably past till the
business provide chain normalizes.
The following desk summarizes sure key gross sales statistics and p.c of gross revenue. Three Months Ended February 5, January 30, 2022 2021 New houses offered by way of Company owned gross sales facilities 87 82
Pre-owned
houses offered by way of Company owned gross sales facilities 6 1 Homes offered to unbiased sellers 10 40 Total new manufacturing unit constructed houses produced 92 150 Average new manufactured dwelling value - retail$ 107,281 $ 88,250 Average new manufactured dwelling value - wholesale$ 63,781 $ 47,515 As a p.c of web gross sales: Gross revenue from the Company owned retail gross sales facilities 18 % 18 % Gross revenue from the manufacturing amenities - together with intercompany gross sales 13 % 15 %
Maintaining our sturdy monetary place is important for future development and
success. Because of very difficult enterprise situations throughout financial
recessions in our market space, administration will proceed to judge all bills
and react in a way per sustaining our sturdy monetary place,
whereas exploring alternatives to develop our distribution and manufacturing
operations.
Our a few years of expertise within the
elevated want for extra inexpensive housing, ought to serve the Company effectively within the
coming years. Management stays satisfied that our particular geographic market
is one of the very best long-term development areas within the nation.
On
specializing within the design and manufacturing of high quality, inexpensive manufactured
houses. With a number of retail gross sales facilities in
insurance coverage company subsidiary, we’re the one vertically built-in manufactured
dwelling firm headquartered in
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Insurance agent fee revenues in first quarter of 2022 have been
in comparison with
renewal insurance policies being written which impacts agent fee earned. The
Company establishes acceptable reserves for coverage cancellations based mostly on
quite a few components, together with previous transaction historical past with clients, historic
expertise and different info, which is periodically evaluated and adjusted
as deemed essential. In the opinion of administration, no reserve was deemed
essential for coverage cancellations at
Gross revenue as a share of web gross sales was 25% in first quarter of 2022
in comparison with 28% for first quarter of 2021. The gross revenue in first quarter of
2022 was
revenue relies on the gross sales combine of wholesale and retail houses and quantity of
pre-owned
houses offered. The discount in gross revenue as a share of web gross sales is
main as a result of continued inflation, shortages in sure constructing merchandise,
labor shortages and elevated labor price.
Selling, normal and administrative bills as a p.c of web gross sales was 13%
in first quarter of 2022 in comparison with 14% in first quarter of 2021. Selling,
normal and administrative bills in first quarter of 2022 was
in comparison with
in 2022 have been the direct outcomes of will increase to variable worker advantages
compensation as a result of improve in gross sales.
We earned curiosity revenue of$74,680 for first quarter of 2022 in comparison with$30,656 for first quarter of 2021. The improve is primarily as a result of curiosity earned from the sale of pre-owned (repossessed) stock acquired from the Company's three way partnership associate, twenty firstMortgage Corporation . When the house is offered, the Company retains an curiosity issue on the fee of the houses from the gross sales proceeds.
Our earnings from Majestic 21 in first quarter of 2022 have been
allocation of revenue and losses that are owned 50% by twenty first
and 50% by the Company. The earnings from the Majestic 21 mortgage portfolio will
proceed to lower as a result of amortization, maturity and payoff of the loans.
We obtained distributions of$118,045 in first quarter of 2022 in comparison with$45,868 in first quarter of 2021. The distributions are from an escrow association associated to a Finance Revenue Sharing Agreement between 21 stMortgage Corporation and the Company. The distributions from the escrow association, pertains to sure loans financed by 21 stMortgage Corporation , are recorded as revenue by the Company when obtained. The Company realized pre-tax revenue in first quarter of 2022 of$1,526,430 as in comparison with$1,401,574 in first quarter of 2021.
The Company recorded an revenue tax expense within the quantity of
quarter of 2022 as in comparison with
We reported web revenue of
primary and diluted share, in comparison with
share, for first quarter of 2021.
Liquidity and Capital Resources
Cash and money equivalents have been$38,932,257 atFebruary 5, 2022 in comparison with$36,126,059 atNovember 6, 2021 . Certificates of deposit have been$0 atFebruary 5, 2022 in comparison with$2,093,015 atNovember 6, 2021 . Short-term investments have been$617,835 atFebruary 5, 2022 in comparison with$621,928 atNovember 6, 2021 . Working capital was$37,315,738 atFebruary 5, 2022 as in comparison with$35,563,355 atNovember 6, 2021 . We personal the whole stock for our Prestige retail gross sales facilities, which incorporates new and pre-owned houses, and don't incur any third occasion flooring plan financing bills. As ofFebruary 5, 2022 the Company has incurred roughly$112,000 of the estimated development price of the roughly$1.1 allotted to construct an 11,900 sq. foot body store on the Company's property inOcala, Florida . 12
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The Company presently has no line of credit score facility and no debt and doesn’t
consider that such a facility is presently essential to its operations. The
Company additionally has roughly
insurance coverage which it could possibly entry as an extra supply of liquidity
although the Company has not presently considered this to be essential. As of
included complete property of roughly
by stockholders’ fairness of roughly
Critical Accounting Policies and Estimates
In Item 7 of our Form 10-Okay, below the heading "Critical Accounting Policies and Estimates," we've got offered a dialogue of the essential accounting insurance policies and estimates that administration believes have an effect on its extra vital judgments and estimates used within the preparation of our Consolidated Financial Statements. No vital modifications have occurred since that point.
Forward-Looking Statements
Certain statements on this report are unaudited or forward-looking statements inside the which means of the federal securities legal guidelines. Although Nobility believes that the quantities and expectations mirrored in such forward-looking statements are based mostly on affordable assumptions, there are dangers and uncertainties that will trigger precise outcomes to vary materially from expectations. These dangers and uncertainties embrace, however will not be restricted to, the potential hostile influence on our enterprise brought on by the COVID-19 pandemic or different well being pandemics, aggressive pricing pressures at each the wholesale and retail ranges, inflation, rising materials prices (together with forest based mostly merchandise) or availability of supplies resulting from potential provide chain interruptions (comparable to present inflation with forest merchandise and provide points with vinyl siding and PVC piping), modifications in market demand, modifications in rates of interest, availability of financing for retail and wholesale purchasers, client confidence, hostile climate situations that scale back gross sales at retail facilities, the chance of manufacturing plant shutdowns resulting from storms or different components, the influence of advertising and cost-management packages, reliance on theFlorida financial system, influence of labor scarcity, influence of supplies scarcity, rising labor price, cyclical nature of the manufactured housing business, influence of rising gasoline prices, catastrophic occasions impacting insurance coverage prices, availability of insurance coverage protection for numerous dangers to Nobility, market demographics, administration's capability to draw and retain govt officers and key personnel, elevated world tensions, market disruptions ensuing from terrorist or different assault, any armed battle involvingthe United States and the influence of inflation. 13
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