NOBILITY HOMES INC

Previous wording

Total net sales in the second quarter of 2026 were $12,410,560 compared to $14,757,337 in the second quarter of 2025. Total net sales for the first six months of 2026 were $22,913,406 compared to $26,999,079 for the first six months of 2025. The Company reported net income of $1,759,427 in the second quarter of 2026, compared to a net income of $2,292,320 in the second quarter of 2025. Total net sales decreased during the first six months of 2026 as compared to same period in 2025 due to a decrease in the number of new retail homes sold in our Company owned retail sales centers (93 homes versus 132 homes) partially offset by an increase in the number of homes sold to independent dealers (121 homes versus 92 homes) which have lower margins.

Current wording

Total net sales in the third quarter of 2026 were $12,138,230 compared to $12,021,194 in the third quarter of 2025. Total net sales for the first nine months of 2026 were $35,051,636 compared to $39,020,273 for the first nine months of 2025. The Company reported net income of $1,896,342 in the third quarter of 2026, compared to a net income of $1,825,271 in the third quarter of 2025 and net income was $5,284,095 for the first nine months of 2026 compared to $6,098,013 for the first nine months of 2025. Total net sales decreased during the first nine months of 2026 as compared to same period in 2025 due to a decrease in the number of new retail homes sold in our Company owned retail sales centers (137 homes versus 195 homes) partially offset by an increase in the number of homes sold to independent dealers (184 homes versus 129 homes) which sales have lower margins.

Previous wording

We believe that potential customers continue to delay or defer purchasing decisions, or are generally opting to purchase lower cost homes, when considering the higher interest rate environment and the uncertainty of the economy, which continue to negatively impact sales. There also remain delays in the receipt of certain key production materials from suppliers, as well as back orders, price increases, tariffs and labor shortages which continue to cause delays in the completion of the homes at our manufacturing facility. We also continue to experience inflation in several building products resulting in increases in our material costs. We expect these challenges will continue throughout fiscal year 2026 and potentially beyond.

Current wording

We believe that potential customers continue to delay or defer purchasing decisions, or are generally opting to purchase lower cost homes, when considering the higher interest rate environment and the uncertainty of the economy, which continue to negatively impact sales. There also remain delays in the receipt of certain key production materials from suppliers, as well as back orders, price increases, tariffs and labor shortages which continue to cause delays in the completion of the homes at our manufacturing facility. We also continue to experience inflation in several building products resulting in increases in our material costs. We expect these challenges will continue throughout fiscal years 2026 and 2027 and potentially beyond.

Previous wording

According to the Florida Manufactured Housing Association, shipments for the manufacturing housing industry in Florida for the period from November 2025 through April 2026 increased by approximately 3% from the same period last year.

Current wording

According to the Florida Manufactured Housing Association, shipments for the manufacturing housing industry in Florida for the period from November 2025 through July 2026 increased by approximately 6% from the same period last year.

Previous wording

The following table summarizes certain key sales statistics and percentage of gross profit for the three and six months ended May 2, 2026 and May 3, 2025.

Current wording

The following table summarizes certain key sales statistics and percentage of gross profit for the three and nine months ended August 1, 2026 and August 2, 2025

Previous wording

Insurance agent commission revenues in the second quarter of 2026 were $68,756 compared to $77,430 in the second quarter of 2025. Insurance agent commission revenues for the six months of 2026 were $147,653 compared to $135,804 for the first six months of 2025. Revenues are generated by new and renewal policies being written which affect agent commissions earned. 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 was deemed necessary for policy cancellations at May 2, 2026 and November 1, 2025.

Current wording

Insurance agent commission revenues in the third quarter of 2026 were $56,741 compared to $101,684 in the third quarter of 2025. Insurance agent commission revenues for the nine months of 2026 were $204,393 compared to $237,487 for the first nine months of 2025. Revenues are generated by new and renewal policies being written which affect agent commissions earned. 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 was deemed necessary for policy cancellations at August 1, 2026 and November 1, 2025.

Previous wording

Gross profit as a percentage of net sales was 29% in the second quarter of 2026 compared to 31% in the second quarter of 2025 and was 30% for the first six months of 2026 compared to 32% for the first six months of 2025. The gross profit in the second quarter of 2026 was $3,630,197 compared to $4,631,416 in the second quarter of 2025 and was $6,827,303 for the first six months of 2026 compared to $8,602,201 for the first six months of 2025. The gross profit is dependent on the sales mix of wholesale and retail homes and number of pre-owned homes sold. The gross profit as a percentage of net sales decreased due to a decrease in the number of homes sold at our Company owned retail sales centers that generate higher margins partially offset by an increase in the number of homes sold to independent dealers, which have lower margins than retail sales.

Current wording

Gross profit as a percentage of net sales was 29% in the third quarter of 2026 compared to 32% in the third quarter of 2025 and was 30% for the first nine months of 2026 compared to 32% for the first nine months of 2025. The gross profit in the third quarter of 2026 was $3,491,989 compared to $3,848,186 in the third quarter of 2025 and was $10,319,292 for the first nine months of 2026 compared to $12,450,387 for the first nine months of 2025. The gross profit is dependent on the sales mix of wholesale and retail homes and number of pre-owned homes sold. The gross profit as a percentage of net sales decreased due to a decrease in the number of homes sold at our Company owned retail sales centers that generate higher margins partially offset by an increase in the number of homes sold to independent dealers, which have lower margins than retail sales.

Previous wording

Selling, general and administrative expenses as a percent of net sales was 12% in the second quarter of 2026 compared to 13% for the second quarter of 2025 and was 13% for the first six months of 2026 and 2025, respectively. Selling, general and administrative expenses in the second quarter of 2026 was $1,532,710 compared to $1,889,197 in the second quarter of 2025 and was $2,902,366 for the first six months of 2026 compared to $3,565,847 for the first six months of 2025. The dollar decrease in selling, general and administrative expenses for the first six months of 2026 versus 2025 were due to decrease in the number of new home sold at our Company owned retail sales centers.

Current wording

Selling, general and administrative expenses as a percent of net sales was 11% in the third quarter of 2026 compared to 14% for the third quarter of 2025 and was 12% for the first nine months of 2026 compared to 13% for the first nine months of 2025. Selling, general and administrative expenses in the third quarter of 2026 was $1,384,120 compared to $1,670,585 in the third quarter of 2025 and was $4,286,486 for the first nine months of 2026 compared to $5,236,432 for the first nine months of 2025. The dollar decrease in selling, general and administrative expenses for the first nine months of 2026 versus 2025 were due to decrease in the number of new home sold at our Company owned retail sales centers.

Previous wording

We earned interest income of $217,606 for the second quarter of 2026 compared to $298,318 for the second quarter of 2025. For the first six months of 2026, interest income was $473,455 compared to $583,596 in the first six months of 2025. The amount of interest income is primarily a function of interest rates and the amount invested.

Current wording

We earned interest income of $213,928 for the third quarter of 2026 compared to $270,139 for the third quarter of 2025. For the first nine months of 2026, interest income was $687,383 compared to $853,735 in the first nine months of 2025. The amount of interest income is primarily a function of interest rates and the amount invested.

Previous wording

Our earnings from Majestic 21 in the second quarter of 2026 were $14,790 compared to $21,462, for the second quarter of 2025. The earnings for the first six months of 2026 were $40,981 compared to $47,569 for the first six months of 2025. The earnings from Majestic 21 represent the allocation of profit and losses which are owned 50% by 21st Mortgage Corporation and 50% by the Company. The earnings from the Majestic 21 loan portfolio vary quarter to quarter, but overall, the earnings will continue to decrease due to the amortization, maturity and payoff of the loans.

Current wording

Our earnings from Majestic 21 in the third quarter of 2026 were $16,684 compared to $25,624, for the third quarter of 2025. The earnings for the first nine months of 2026 were $57,665 compared to $72,893 for the first nine months of 2025. The earnings from Majestic 21 represent the allocation of profit and losses which are owned 50% by 21st Mortgage Corporation and 50% by the Company. The earnings from the Majestic 21 loan portfolio vary quarter to quarter, but overall, the earnings will continue to decrease due to the amortization, maturity and payoff of the loans.

Previous wording

We received distributions from 21 st Mortgage Corporation in the second quarter of 2026 of $36,868 compared to $42,066 in the second quarter of 2025 and $58,314 for the first six months of 2026 compared to $80,218 for the first six months of 2025. The distributions are from an escrow arrangement related to a Finance Revenue Sharing Agreement (FRSA) between 21 st Mortgage Corporation and the Company. The distributions from the escrow arrangement, relating to certain loans financed by 21 st Mortgage Corporation, are recorded as income by the Company when received. The earnings from the FRSA loan portfolio will vary quarter to quarter, but will continue to decrease due to the amortization and payoff of the loans.

Current wording

We received distributions from 21 st Mortgage Corporation in the third quarter of 2026 of $13,565 compared to $36,094 in the third quarter of 2025 and $71,879 for the first nine months of 2026 compared to $116,312 for the first nine months of 2025. The distributions are from an escrow arrangement related to a Finance Revenue Sharing Agreement (FRSA) between 21 st Mortgage Corporation and the Company. The distributions from the escrow arrangement, relating to certain loans financed by 21 st Mortgage Corporation, are recorded as income by the Company when received. The earnings from the FRSA loan portfolio will vary quarter to quarter, but will continue to decrease due to the amortization and payoff of the loans.

Previous wording

The Company realized pre-tax income in the second quarter of 2026 of $2,356,744 as compared to $3,025,926 in the second quarter of 2025. The pre-tax income for the first six months of 2026 was $4,537,876 as compared to $5,675,439 in the first six months of 2025.

Current wording

The Company realized pre-tax income in the third quarter of 2026 of $2,494,456 as compared to $2,493,117 in the third quarter of 2025. The pre-tax income for the first nine months of 2026 was $7,032,332 as compared to $8,168,256 in the first nine months of 2025.

Previous wording

The Company recorded an income tax expense in the amount of $597,317 in the second quarter of 2026 as compared to $733,606 in second quarter 2025. Income tax expense for the six months of 2026 was $1,150,123 compared to $1,402,397 for the six months of 2025.

Current wording

The Company recorded an income tax expense in the amount of $598,114 in the third quarter of 2026 as compared to $667,846 in the third quarter of 2025. Income tax expense for the nine months of 2026 was $1,748,237 compared to $2,070,243 for the nine months of 2025.

Previous wording

We reported net income of $1,759,427 for the second quarter of 2026 or $0.56 per share, compared to $2,292,320 or $0.70 per share, for the second quarter of 2025. For the first six months of 2026 net income was $3,387,753 or $1.06 per share compared to $4,273,042 or $1.31 (diluted $1.30) per share in the first six months of 2025.

Current wording

We reported net income of $1,896,342 for the third quarter of 2026 or $0.60 per share, compared to $1,825,271 or $0.56 per share, for the third quarter of 2025. For the first nine months of 2026 net income was $5,284,095 or $1.66 per share compared to $6,098,013 or $1.87 (diluted $1.86) per share in the first nine months of 2025.

Previous wording

Cash and cash equivalents were $9,857,859 at May 2, 2026 compared to $13,230,504 at November 1, 2025. Certificates of deposit were $13,745,644 at May 2, 2026 compared to $13,109,325 at November 1, 2025. Short-term investments were $552,962 at May 2, 2026 compared to $583,128 at November 1, 2025. Working capital was $42,633,147 at May 2, 2026 as compared to $46,866,425 at November 1, 2025. A cash dividend was paid from our cash reserves in April 2026 in the amount of $1.50 per share ($4,730,497). In January 2026, the Company repurchased 100,000 shares of common stock from our President at $29.70 per share ($2,970,000). Prestige new home inventory was $17,125,237 at May 2, 2026 compared to $16,605,049 at November 1, 2025. We own the entire inventory for our Prestige retail sales centers, which includes new and pre-owned homes, and do not incur any third-party floor plan financing expenses.

Current wording

Cash and cash equivalents were $13,417,420 at August 1, 2026 compared to $13,230,504 at November 1, 2025. Certificates of deposit were $11,697,609 at August 1, 2026 compared to $13,109,325 at November 1, 2025. Short-term investments were $684,503 at August 1, 2026 compared to $583,128 at November 1, 2025. Working capital was $44,363,660 at August 1, 2026 as compared to $46,866,425 at November 1, 2025. A cash dividend was paid from our cash reserves in April 2026 in the amount of $1.50 per share ($4,730,497). In January 2026, the Company repurchased 100,000 shares of common stock from our President at $29.70 per share ($2,970,000). Prestige new home inventory was $16,237,801 at August 1, 2026 compared to $16,605,049 at November 1, 2025. We own the entire inventory for our Prestige retail sales centers, which includes new and pre-owned homes, and do not incur any third-party floor plan financing expenses.

Previous wording

The Company currently has no line of credit facility and no debt and does not believe that such a facility is currently necessary for its operations. The Company also has approximately $4.9 million of cash surrender value of life insurance which it would be able to access as an additional source of liquidity though the Company has not currently viewed this to be necessary. As of May 2, 2026, the Company continued to report a strong balance sheet which included total assets of approximately $63.6 million which was funded primarily by stockholders’ equity of approximately $56.5 million.

Current wording

The Company currently has no line of credit facility and no debt and does not believe that such a facility is currently necessary for its operations. The Company also has approximately $5.0 million of cash surrender value of life insurance which it would be able to access as an additional source of liquidity though the Company has not currently viewed this to be necessary. As of August 1, 2026, the Company continued to report a strong balance sheet which included total assets of approximately $65.4 million which was funded primarily by stockholders’ equity of approximately $58.4 million.