NOBH 10-K & 10-Q changes, risk factors and insider trading
Nobility Homes Inc. · OTC · Mobile Homes · CIK 72205 · All filings on SEC.gov
At a glance
What changed in the latest 10-K
Risk Factors
As a smaller reporting company, we are not required to provide the information required by this item.
No wording changes found in this section.
Full comparison: every changed paragraph (0)
Management's Discussion & Analysis (MD&A)
Removed heading “Revenue Recognition”
Largest changes
Gross profit as a percentage of net sales was 32% in fiscal year 2025 compared to 34% in fiscal yearsee in full comparison2024 and in fiscal year 2023.2024. Our gross profit was $16,785,200 for fiscal year 2025 compared to $17,424,077 for fiscal year2024 compared to $21,487,885 for fiscal year 2023.2024. 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 salesremained consistentdecreased due toincreases in our selling prices to offset the higher inflation costs of building products and labor cost on each home and thean increase in theaveragenumbergrossofprofithomes sold to independent dealers that have lower margins and a decrease in the number of homes sold at our Company owned retail salescenters.centers that generate higher margins.
“The Company applies judgment and estimates, which may have a material effect in the eventual outcome of assets, liabilities, revenues and expenses, accounts receivable, inventory and goodwill. The following explains the basis and the procedure where judgment and estimates are applied.”see in full comparison
Inventories – New home inventory is carried at a lower of cost or net realizable value. Capitalized manufacturing costs on retail manufactured homes built by the Company are valued at manufacturing cost, including materials, labor, and manufacturing overhead, or net purchase price if acquired from unaffiliated third parties. Thesee in full comparisoncostCompany estimates manufacturing costs based on an original bill offinishedmaterialshomewhichinventoriesmaydeterminedor may not have been recently updated. For bills of materials that have not been recently updated, the Company estimates manufacturing cost based onthechangesspecificinidentificationcurrentmethodmaterialis removed from inventoriesprices andrecordedlaborasandaoverheadcomponentrates since the last update ofcostthe standard cost. These estimates involved especially challenging, subjective, and complex judgment due to the estimation uncertainty and the extent ofsaleseffortatrequiredthetotimeevaluaterevenuemanagement’sisassumptionsrecognized.and supporting data.
The Company earned interest in the amount of $1,119,101 in fiscal year 2025 compared to $1,126,951 in fiscal yearsee in full comparison20242024.comparedThetoamount$803,622ofin fiscal year 2023. Interestinterest income isdependentprimarilyonaour cash balance and available ratesfunction ofreturn. The increase during 2024 is primarily due to the increasechange in themoniesinterest rates and the amount invested.
“Cash and cash equivalents were $13,521,296 at November 2, 2024 compared to $13,879,358 at November 4, 2023. Certificates of deposit were $13,021,839 at November 2, 2024 compared to $10,204,287 at November 4, 2023. Short-term investments were $680,017 at November 2, 2024 compared to $527,899 at November 4, 2023. Working capital was $42,927,149 at November 2, 2024 compared to $37,746,552 at November 4, 2023. In the first quarter of fiscal 2024, the Company received a distribution of $1.6 million from 21st Mortgage Corporation, representing our share of excess capital in the portfolio. …”see in full comparison
Full comparison: every changed paragraph (34)
Nobility has a product line of approximately 100 active models. Although market demand can fluctuate on a fairly short-term basis, the manufacturing process is such that Nobility can alter its product mix relatively quickly in response to changes in the market. During fiscal years 2024 and 2023, Nobility continued to experience consumer demand for affordable manufactured homes in Florida. Our three-, four- and five-bedroom manufactured homes are favored by families, compared with the one, two and three-bedroom homes that typically appeal to the retirement buyers who reside in the manufactured housing communities.
Prestige’s wholly owned subsidiary, Mountain Financial, 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 as well as to other non-Prestige customers.
In fiscal year 2024, Prestige purchased from other manufacturers 18 new homes for an aggregate of ($1,859,175) for custom ordered presold homes and in fiscal year 2023 purchased 44 new homes from other manufacturers for an aggregate of ($4,432,483) to help eliminate the backlog from Nobility. Prestige has 73 new homes purchase for an aggregate of ($5,969,523) from Nobility and outside manufacturers, that are included in inventory and are in the field, waiting to be completed and closed as of November 2, 2024.
The Company’s fiscal year ends on the first Saturday on or after October 31. The years ended November 1, 2025 (fiscal year ended2025) and November 2, 2024 (fiscal year 2024) consisted of a fifty-two-week period and the year ended November 4, 2023 (fiscal year 2023)each consisted of a fifty-two-week period.
Total net sales in fiscal year 20242025 wereincreased $51,933,6221% to $52,667,970 compared to $63,318,392$51,933,622 in fiscal year 2023.2024. The Company reported net income of $8,446,383 in fiscal year 2025, compared to a net income of $8,611,262 in fiscal year 2024,2024. comparedAlthough to atotal net incomesales ofincreased $10,898,864slightly in fiscal year 2023. Net sales decreased in fiscal year 20242025 as compared to the priorsame yearperiod becausein 2024, the number of thenew decreaseretail homes sold in our Company owned retail sales centers decreased in fiscal 2025 as compared to 2024, which was offset by an increase in the number of retail homes sold andto manufactured.independent dealers in fiscal 2025 (which sales have lower margins than retail sales). In addition, we are building and selling lower-priced homes due to the higher interest rates on mortgages that we believe are negatively impacting sales as compared to the prior years. There also remain delays in the receipt of certain key production materials from suppliers, back orders, price increases and labor shortages which continue to cause delays in the completion of the homes at our manufacturing facility and the set-up process of retail homes in the field. Our inability to timely deliver and set up homes to customers has negatively impacted sales and earnings. We expect these challenges will continue into fiscal year 2025.2026. The Company also continues to experience inflation in several building products resulting in increases in our material and labor costs which may increase the wholesale and retail selling prices of our homes. We believe that potential customers have delayed or deferred purchasing decisions when considering the interest rate environment.environment and the demand has been impacted by weaker consumer confidence and ongoing affordability challenges, for our typical retail customers.
The current demand for affordable manufactured housing in Florida and the U.S. ishas slowing, which we believe is because of the increased interest rate environment.slowed. According to the Florida Manufactured Housing Association, shipments for the industry in Florida for the period from November 20232024 through October 20242025 declined by approximately 9% compared to a decline of 3% fromfor the same period last year.
Gross profit as a percentage of net sales was 32% in fiscal year 2025 compared to 34% in fiscal year 2024 and in fiscal year 2023.2024. Our gross profit was $16,785,200 for fiscal year 2025 compared to $17,424,077 for fiscal year 2024 compared to $21,487,885 for fiscal year 2023.2024. 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 remained consistentdecreased due to increases in our selling prices to offset the higher inflation costs of building products and labor cost on each home and thean increase in the averagenumber grossof profithomes sold to independent dealers that have lower margins and a decrease in the number of homes sold at our Company owned retail sales centers.centers that generate higher margins.
Selling, general and administrative expenses as a percentage of net sales was 13% in fiscal year 2025 compared to 15% in fiscal year 2024 compared to 13% in fiscal year 2023.2024. Selling, general and administrative expenses were $6,748,678 for fiscal year 2025 compared to $7,842,626 for fiscal year 20242024. comparedThe todollar $8,087,534decrease forin fiscal year 2023. Selling,selling, general and administrative expenses asfor afiscal percentyear of2025 netversus sales2024 increasedwere due to additional costs incurred with respect to the Company's audit, the decrease in salesthe number of new homes sold at theour manufacturingCompany plant andowned retail sales centers and the fixed costs associated with many of the expenses.centers.
The Company earned interest in the amount of $1,119,101 in fiscal year 2025 compared to $1,126,951 in fiscal year 20242024. comparedThe toamount $803,622of in fiscal year 2023. Interestinterest income is dependentprimarily ona our cash balance and available ratesfunction of return. The increase during 2024 is primarily due to the increasechange in the moniesinterest rates and the amount invested.
Net income in fiscal year 2025 was $8,446,383 or $2.59 per share ($2.58 diluted), and net income in fiscal year 2024 was $8,611,262 or $2.63 per basic and diluted share.
Net income in fiscal year 2024 was $8,611,262 or $2.63 per basic and diluted share and net income in fiscal year 2023 was $10,898,864 or $3.27 per basic and diluted share.
Cash and cash equivalents were $13,230,504 at November 1, 2025 compared to $13,521,296 at November 2, 2024. Certificates of deposit were $13,109,325 at November 1, 2025 compared to $13,021,839 at November 2, 2024. Short-term investments were $583,128 at November 1, 2025 compared to $680,017 at November 2, 2024. Working capital was $46,866,425 at November 1, 2025 compared to $42,927,149 at November 2, 2024. A cash dividend was paid from our cash reserves in April 2025 in the amount of $1.25 per share ($4,086,247) and in April 2024 in the amount of $1.50 per share ($4,903,243). Prestige new home inventory was $16,605,049 at November 1, 2025 compared to $18,475,932 at November 2, 2024. We own the entire inventory for our Prestige retail sales centers which includes new, pre-owned and repossessed or foreclosed homes and do not incur any third-party floor plan financing expenses. In February 2025 the Company started manufacturing steel frames for our homes in the 11,900 square foot building at our manufacturing facility, which was completed in fiscal 2024 for an approximate cost of $1,752,600 for the building and equipment. In the first quarter of fiscal 2024, the Company received a distribution of $1.6 million from 21st Mortgage Corporation, representing our share of excess capital in the portfolio.
Cash and cash equivalents were $13,521,296 at November 2, 2024 compared to $13,879,358 at November 4, 2023. Certificates of deposit were $13,021,839 at November 2, 2024 compared to $10,204,287 at November 4, 2023. Short-term investments were $680,017 at November 2, 2024 compared to $527,899 at November 4, 2023. Working capital was $42,927,149 at November 2, 2024 compared to $37,746,552 at November 4, 2023. In the first quarter of fiscal 2024, the Company received a distribution of $1.6 million from 21st Mortgage Corporation, representing our share of excess capital in the portfolio. A cash dividend was paid from our cash reserves in April 2024 in the amount of $1.50 per share ($4,903,243) and in April 2023 in the amount of $1.00 per share ($3,370,912). During fiscal 2023, the Company repurchased an aggregate 102,083 shares of its common stock for ($2,853,981). In fiscal year 2024, Prestige purchased from other manufacturers 18 new homes for an aggregate of ($1,859,175) for custom ordered presold homes and in fiscal year 2023 purchased 44 new homes from other manufacturers for an aggregate of ($4,432,483) to help eliminate the backlog from Nobility. Prestige has 73 new homes purchase for an aggregate of ($5,969,523) from Nobility and outside manufacturers, that are included in inventory and are in the field, waiting to be completed and closed as of the year end 2024. Prestige new home inventory was $18,475,932 at November 2, 2024 compared to $18,961,131 at November 4, 2023. We own the entire inventory for our Prestige retail sales centers which includes new, pre-owned and repossessed or foreclosed homes and do not incur any third-party floor plan financing expenses. The Company built a 11,900 square foot building at our manufacturing facility with equipment to manufacture steel frames for our homes, which was completed in fiscal 2024 for an approximate cost of $1,752,600 for the building and equipment.
The Company applies judgment and estimates, which may have a material effect in the eventual outcome of assets, liabilities, revenues and expenses, accounts receivable, inventory and goodwill. The following explains the basis and the procedure where judgment and estimates are applied.
Revenue Recognition
The Company recognizes revenue from its retail sales of new manufactured homes upon the occurrence of the following:
Its receipt of a down payment,
Construction of the home is complete,
Home has been delivered and set up at the retail home buyer’s site and title has been transferred to the retail home buyer, Remaining funds have been released by the finance company (financed sales transaction), remaining funds have been committed by the finance company by an agreement with respect to financing obtained by the customer, usually in the form of a written approval for permanent home financing received from a lending institution, (financed construction sales transaction) or cash has been received from the home buyer (cash sales transaction), and Completion of any other significant obligations.
The Company recognizes revenue from the sale of the repurchased homes upon transfer of title to the new purchaser.
The Company recognizes revenue from its independent dealers upon receiving wholesale floor plan financing or establishing retail credit approval for terms, shipping of the home and transferring title and risk of loss to the independent dealer. For wholesale shipments to independent dealers, the Company has no obligation to set up the home or to complete any other significant obligations.
Sales of homes to affiliated entities that are subject to contingent payment terms are considered inventory consignment arrangements. Revenue from such arrangements is recognized when the homes are sold to the end users and payment is collected by the affiliated entity.
See Note 4 “Related Party Transactions” to the Company’s financial statement included herein The Company recognizes revenue from its wholly owned subsidiary, Mountain Financial, Inc., as follows: commission income (and fees in lieu of commissions) is recorded as of the effective date of insurance coverage or the commission receipt date, whichever is later. Commissions on premiums billed and collected directly by insurance companies are recorded as revenue when received which, in many cases, is the Company’s first notification of amounts earned due to the lack of policy and renewal information. Contingent commissions are recorded as revenue when received. Contingent commissions are commissions paid by insurance underwriters and are based on the estimated profit and/or overall volume of business placed with the underwriter. The data necessary for the calculation of contingent commissions cannot be reasonably obtained prior to the receipt of the commission which, in many cases, is the Company’s first notification of amounts earned. The Company provides 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 on November 2, 2024 or November 4, 2023.
Inventories – New home inventory is carried at a lower of cost or net realizable value. Capitalized manufacturing costs on retail manufactured homes built by the Company are valued at manufacturing cost, including materials, labor, and manufacturing overhead, or net purchase price if acquired from unaffiliated third parties. The costCompany estimates manufacturing costs based on an original bill of finishedmaterials homewhich inventoriesmay determinedor may not have been recently updated. For bills of materials that have not been recently updated, the Company estimates manufacturing cost based on thechanges specificin identificationcurrent methodmaterial is removed from inventoriesprices and recordedlabor asand aoverhead componentrates since the last update of costthe standard cost. These estimates involved especially challenging, subjective, and complex judgment due to the estimation uncertainty and the extent of saleseffort atrequired theto timeevaluate revenuemanagement’s isassumptions recognized.and supporting data.
Under the specific identification method, if finished home inventory can be sold for a profit there is no basis to write down the inventory below the lower of cost or net realizable value.
Other pre-owned homes are acquired (Repossessions Inventory) as a convenience to the Company’s joint venture partner, 21st Mortgage Corporation. This inventory has been repossessed by 21st Mortgage Corporation or through mortgage foreclosure. The Company acquired this inventory at the amount of the uncollected balance of the financing at the time of the foreclosure/repossessions by 21st Mortgage Corporation. The Company records this inventory at a cost determined by the specific identification method. All of the refurbishment costs are paid by 21st Mortgage Corporation. This arrangement assists 21st Mortgage Corporation with liquidation of their repossessed inventory. The timing of these repurchases by the Company is unpredictable as it is based on the repossessions 21st Mortgage Corporation incurs in the portfolio. When the home is sold, the Company retains the cost of the home, an interest factor on the cost of the home and a sales commission, from the sales proceeds. Any additional proceeds are paid to 21st Mortgage. Any shortfall from the proceeds to cover these amounts is paid by 21st Mortgage to the Company. As the Company has no risk of loss on the sale, there is no valuation allowance necessary for repossessions inventory.
Inventory held at consignment locations by affiliated entities is included in the Company’s inventory on the Company’s consolidated balance sheets.
Pre-owned homes are also taken as trade-ins on new home sales (Trade-in Inventory). This inventory is recorded at estimated actual wholesale value, which is generally lower than market value, determined on the specific identification method, plus refurbishment costs incurred to date to bring the inventory to a more saleable state. The Trade-in Inventory amount is reduced where necessary on a unit specific basis by a valuation reserve, which management believes results in inventory being valued at net realizable value.
Other inventory costs are determined on a first-in, first-out basis.
Income Taxes
The Company accounts for income taxes utilizing the asset and liability method. This approach requires the recognition of deferred tax assets and liabilities for the expected future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized.
Rebate Program
The Company has a rebate program for some dealers, based upon the number and type of homes purchased, which pays rebates based upon sales volume to the dealers. Volume rebates are recorded as a reduction of sales in the accompanying consolidated financial statements. The rebate liability is calculated and recognized as eligible homes are sold based upon factors surrounding the activity and prior experience of specific dealers and is included in accrued expenses in the accompanying consolidated balance sheets.
Certain statements in this report are unaudited or forward-looking statements within the meaning of the federal securities laws. Although Nobility believes that the amounts and expectations reflected in such forward-looking statements are based on reasonable assumptions, there are risks and uncertainties that may cause actual results to differ materially from expectations. These risks and uncertainties include, but are not limited to, the potential adverse impact on our business caused by competitive pricing pressures at both the wholesale and retail levels, inflation, tariffs, increasing material costs (including forest based products) or availability of materials due to supply chain interruptions (such as current inflation with forest products and supply issues with vinyl siding and PVC piping), changes in market demand, increase in interest rates, availability of financing for retail and wholesale purchasers, consumer confidence, adverse weather conditions that reduce sales at retail centers, the risk of manufacturing plant shutdowns due to storms or other factors, the impact of marketing and cost-management programs, the impact of higher interest rates on mortgage financing, reliance on the Florida economy, impact of labor shortage, impact of materials shortage, increasing labor cost, cyclical nature of the manufactured housing industry, impact of rising fuel costs, catastrophic events impacting insurance costs, availability of insurance coverage for various risks to Nobility, market demographics, management’s ability to attract and retain executive officers and key personnel, increased global tensions, market disruptions resulting from terrorist attacks, or other events such as a pandemic, any armed conflict involving the United States and the impact of inflation.
What changed in the latest 10-Q
Risk Factors
We could not find a separate Risk Factors item in the latest 10-Q. Some companies leave it out of quarterly reports; see the annual 10-K risk factors and the original filing. Open the filing on SEC.gov.
Management's Discussion & Analysis (MD&A)
Largest changes
Total net sales in thesee in full comparisonsecondthird quarter of 2026 were$12,410,560$12,138,230 compared to$14,757,337$12,021,194 in thesecondthird quarter of 2025. Total net sales for the firstsixnine months of 2026 were$22,913,406$35,051,636 compared to$26,999,079$39,020,273 for the firstsixnine months of 2025. The Company reported net income of$1,759,427$1,896,342 in thesecondthird quarter of 2026, compared to a net income of$2,292,320$1,825,271 in thesecondthird 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 firstsixnine 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 (93137 homes versus132195 homes) partially offset by an increase in the number of homes sold to independent dealers (121184 homes versus92129 homes) which sales have lower margins.
Selling, general and administrative expenses as a percent of net sales wassee in full comparison12%11% in thesecondthird 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 thesecond quarter of 2025 and was 13% for thefirstsixnine months of2026 and 2025, respectively.2025. Selling, general and administrative expenses in thesecondthird quarter of 2026 was$1,532,710$1,384,120 compared to$1,889,197$1,670,585 in thesecondthird quarter of 2025 and was$2,902,366$4,286,486 for the firstsixnine months of 2026 compared to$3,565,847$5,236,432 for the firstsixnine months of 2025. The dollar decrease in selling, general and administrative expenses for the firstsixnine months of 2026 versus 2025 were due to decrease in the number of new home sold at our Company owned retail sales centers.
We reported net income ofsee in full comparison$1,759,427$1,896,342 for thesecondthird quarter of 2026 or$0.56$0.60 per share, compared to$2,292,320$1,825,271 or$0.70$0.56 per share, for thesecondthird quarter of 2025. For the firstsixnine months of 2026 net income was$3,387,753$5,284,095 or$1.06$1.66 per share compared to$4,273,042$6,098,013 or$1.31$1.87 (diluted$1.30$1.86) per share in the firstsixnine months of 2025.
Cash and cash equivalents weresee in full comparison$9,857,859$13,417,420 atMayAugust2,1, 2026 compared to $13,230,504 at November 1, 2025. Certificates of deposit were$13,745,644$11,697,609 atMayAugust2,1, 2026 compared to $13,109,325 at November 1, 2025. Short-term investments were$552,962$684,503 atMayAugust2,1, 2026 compared to $583,128 at November 1, 2025. Working capital was$42,633,147$44,363,660 atMayAugust2,1, 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$17,125,237$16,237,801 atMayAugust2,1, 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.
Gross profit as a percentage of net sales was 29% in thesee in full comparisonsecondthird quarter of 2026 compared to31%32% in thesecondthird quarter of 2025 and was 30% for the firstsixnine months of 2026 compared to 32% for the firstsixnine months of 2025. The gross profit in thesecondthird quarter of 2026 was$3,630,197$3,491,989 compared to$4,631,416$3,848,186 in thesecondthird quarter of 2025 and was$6,827,303$10,319,292 for the firstsixnine months of 2026 compared to$8,602,201$12,450,387 for the firstsixnine 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.
The Company realized pre-tax income in thesee in full comparisonsecondthird quarter of 2026 of$2,356,744$2,494,456 as compared to$3,025,926$2,493,117 in thesecondthird quarter of 2025. The pre-tax income for the firstsixnine months of 2026 was$4,537,876$7,032,332 as compared to$5,675,439$8,168,256 in the firstsixnine months of 2025.
Full comparison: every changed paragraph (15)
Total net sales in the secondthird quarter of 2026 were $12,410,560$12,138,230 compared to $14,757,337$12,021,194 in the secondthird quarter of 2025. Total net sales for the first sixnine months of 2026 were $22,913,406$35,051,636 compared to $26,999,079$39,020,273 for the first sixnine months of 2025. The Company reported net income of $1,759,427$1,896,342 in the secondthird quarter of 2026, compared to a net income of $2,292,320$1,825,271 in the secondthird 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 sixnine 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 (93137 homes versus 132195 homes) partially offset by an increase in the number of homes sold to independent dealers (121184 homes versus 92129 homes) which sales have lower margins.
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 yearyears 2026 and 2027 and potentially beyond.
According to the Florida Manufactured Housing Association, shipments for the manufacturing housing industry in Florida for the period from November 2025 through AprilJuly 2026 increased by approximately 3%6% from the same period last year.
The following table summarizes certain key sales statistics and percentage of gross profit for the three and sixnine months ended MayAugust 2,1, 2026 and MayAugust 3,2, 2025.2025
Insurance agent commission revenues in the secondthird quarter of 2026 were $68,756$56,741 compared to $77,430$101,684 in the secondthird quarter of 2025. Insurance agent commission revenues for the sixnine months of 2026 were $147,653$204,393 compared to $135,804$237,487 for the first sixnine 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 MayAugust 2,1, 2026 and November 1, 2025.
Gross profit as a percentage of net sales was 29% in the secondthird quarter of 2026 compared to 31%32% in the secondthird quarter of 2025 and was 30% for the first sixnine months of 2026 compared to 32% for the first sixnine months of 2025. The gross profit in the secondthird quarter of 2026 was $3,630,197$3,491,989 compared to $4,631,416$3,848,186 in the secondthird quarter of 2025 and was $6,827,303$10,319,292 for the first sixnine months of 2026 compared to $8,602,201$12,450,387 for the first sixnine 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.
Selling, general and administrative expenses as a percent of net sales was 12%11% in the secondthird 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 second quarter of 2025 and was 13% for the first sixnine months of 2026 and 2025, respectively.2025. Selling, general and administrative expenses in the secondthird quarter of 2026 was $1,532,710$1,384,120 compared to $1,889,197$1,670,585 in the secondthird quarter of 2025 and was $2,902,366$4,286,486 for the first sixnine months of 2026 compared to $3,565,847$5,236,432 for the first sixnine months of 2025. The dollar decrease in selling, general and administrative expenses for the first sixnine months of 2026 versus 2025 were due to decrease in the number of new home sold at our Company owned retail sales centers.
We earned interest income of $217,606$213,928 for the secondthird quarter of 2026 compared to $298,318$270,139 for the secondthird quarter of 2025. For the first sixnine months of 2026, interest income was $473,455$687,383 compared to $583,596$853,735 in the first sixnine months of 2025. The amount of interest income is primarily a function of interest rates and the amount invested.
Our earnings from Majestic 21 in the secondthird quarter of 2026 were $14,790$16,684 compared to $21,462,$25,624, for the secondthird quarter of 2025. The earnings for the first sixnine months of 2026 were $40,981$57,665 compared to $47,569$72,893 for the first sixnine 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.
We received distributions from 21st Mortgage Corporation in the secondthird quarter of 2026 of $36,868$13,565 compared to $42,066$36,094 in the secondthird quarter of 2025 and $58,314$71,879 for the first sixnine months of 2026 compared to $80,218$116,312 for the first sixnine months of 2025. The distributions are from an escrow arrangement related to a Finance Revenue Sharing Agreement (FRSA) between 21st Mortgage Corporation and the Company. The distributions from the escrow arrangement, relating to certain loans financed by 21st 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.
The Company realized pre-tax income in the secondthird quarter of 2026 of $2,356,744$2,494,456 as compared to $3,025,926$2,493,117 in the secondthird quarter of 2025. The pre-tax income for the first sixnine months of 2026 was $4,537,876$7,032,332 as compared to $5,675,439$8,168,256 in the first sixnine months of 2025.
The Company recorded an income tax expense in the amount of $597,317$598,114 in the secondthird quarter of 2026 as compared to $733,606$667,846 in secondthe third quarter of 2025. Income tax expense for the sixnine months of 2026 was $1,150,123$1,748,237 compared to $1,402,397$2,070,243 for the sixnine months of 2025.
We reported net income of $1,759,427$1,896,342 for the secondthird quarter of 2026 or $0.56$0.60 per share, compared to $2,292,320$1,825,271 or $0.70$0.56 per share, for the secondthird quarter of 2025. For the first sixnine months of 2026 net income was $3,387,753$5,284,095 or $1.06$1.66 per share compared to $4,273,042$6,098,013 or $1.31$1.87 (diluted $1.30$1.86) per share in the first sixnine months of 2025.
Cash and cash equivalents were $9,857,859$13,417,420 at MayAugust 2,1, 2026 compared to $13,230,504 at November 1, 2025. Certificates of deposit were $13,745,644$11,697,609 at MayAugust 2,1, 2026 compared to $13,109,325 at November 1, 2025. Short-term investments were $552,962$684,503 at MayAugust 2,1, 2026 compared to $583,128 at November 1, 2025. Working capital was $42,633,147$44,363,660 at MayAugust 2,1, 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 $17,125,237$16,237,801 at MayAugust 2,1, 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.
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$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 MayAugust 2,1, 2026, the Company continued to report a strong balance sheet which included total assets of approximately $63.6$65.4 million which was funded primarily by stockholders’ equity of approximately $56.5$58.4 million.
NOBH insider buying and selling (Form 4)
Since 2026-04-11, insiders reported open-market purchases in 0 Form 4 filings and open-market sales in 1 filing (1 insider, 1 trade date, 6,084 shares, about $188.0K). Net open-market shares: -6,084 (purchases minus sales); net value about -$188.0K.Totals add up every open-market (code P and S) line in those filings, using the prices reported in the filings. Awards, option exercises, tax withholding and gifts are listed below but not counted.
| Trade date | Insider | Transaction | Shares | Price | Value |
|---|---|---|---|---|---|
| 2026-06-16 | Trexler Thomas W |
Open-market sale | 6,084 | $30.90 | $188.0K |
Well-known investors holding NOBH (13F)
None of the 59 investors we track reported a position in their latest 13F.