Executive Summary

Q4 2024 delivered lower sales and earnings versus prior year and prior quarter amid higher mortgage rates, supply chain delays, and inflation in building products; net sales were $11.83M, diluted EPS $0.63 .
Management did not host an earnings call and provided no formal guidance; they expect operational and demand challenges to continue into fiscal 2025 .
Full-year FY2024 results: Sales $51.93M, operating income $9.58M, net income $8.61M, diluted EPS $2.63; balance sheet remains strong with $27.2M in cash/CDs/short-term investments, working capital $43.0M, no debt .
Consensus estimates (S&P Global) for Q4 2024 were unavailable during this session; comparisons to Wall Street estimates cannot be made at this time.*

What Went Well and What Went Wrong

What Went Well

Maintained a strong balance sheet with $27.2M in cash, CDs, and short-term investments, working capital of $43.0M, current ratio 5.3:1, no debt; stockholders’ equity $56.6M, book value per share $17.31 .
Q4 other income contribution increased vs Q3 (Q4: $649.9K vs Q3: $353.6K), driven by interest income and investment-related items, partially offsetting weaker operating results .
Management reiterates long-term confidence in Florida market demand and emphasizes vertical integration and experience as strategic advantages .

Quotes:

“Maintaining our strong financial position is vital for future growth and success… Management remains convinced that our specific geographic market is one of the best long-term growth areas in the country.”
“We are the only vertically integrated manufactured home company headquartered in Florida.”

What Went Wrong

Q4 net sales declined to $11.83M from $14.72M (-19.6% y/y) and from $13.80M in Q3 (-14.3% q/q); diluted EPS fell to $0.63 from $0.71 y/y and $0.67 q/q .
Mix shifted to lower-priced homes due to higher mortgage rates; continued delays in key materials and labor shortages negatively impacted deliveries and earnings .
Florida industry shipments declined ~3% Nov 2023–Oct 2024 per FMHA, reflecting broader demand softness; management expects challenges to continue into FY2025 .

Financial Results

Income Statement Comparison (Q4 2023 → Q3 2024 → Q4 2024)

Metric	Q4 2023	Q3 2024	Q4 2024
Net Sales ($USD)	$14,719,253	$13,803,340	$11,834,306
Gross Profit ($USD)	$4,548,588	$4,606,600	$3,914,737
Gross Margin (%)	30.9%	33.4%	33.1%
Operating Income ($USD)	$2,699,511	$2,573,627	$2,048,794
Operating Margin (%)	18.4%	18.7%	17.3%
Other Income ($USD)	$384,182	$353,586	$649,856
Net Income ($USD)	$2,316,720	$2,185,312	$2,061,554
Net Income Margin (%)	15.8%	15.8%	17.4%
Diluted EPS ($)	$0.71	$0.67	$0.63

Notes:

Margins are calculated directly from reported figures; citations reference source financials .

FY2024 vs FY2023

Metric	FY 2023	FY 2024
Sales ($USD)	$63,318,392	$51,933,622
Operating Income ($USD)	$13,400,351	$9,581,451
Net Income ($USD)	$10,898,864	$8,611,262
Diluted EPS ($)	$3.27	$2.63

Balance Sheet / Liquidity KPIs (Quarter-End)

KPI	Q4 2023	Q3 2024	Q4 2024
Cash & Equivalents ($USD)	$13,879,358	$13,052,050	$13,521,296
Certificates of Deposit ($USD)	$10,204,287	$12,888,834	$13,021,839
Short-term Investments ($USD)	$527,899	$618,228	$680,017
Customer Deposits ($USD)	$8,703,107	$5,948,020	$5,930,728
Total Stockholders’ Equity ($USD)	$52,716,298	$54,491,460	$56,596,523
Book Value per Share ($)	—	$16.67	$17.31
Working Capital ($USD)	—	$40,800,000	$43,000,000
Current Ratio (x)	—	5.1:1	5.3:1
Debt	None	None	None

Estimates vs Actuals (Q4 2024)

Metric	Consensus Estimate	Actual
Revenue ($USD)	N/A*	$11,834,306
Diluted EPS ($)	N/A*	$0.63

*Consensus estimates unavailable via S&P Global during this session.

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Formal Financial Guidance (Revenue/EPS/Margins)	FY2025	None	None	Maintained
Qualitative Outlook	FY2025	N/A	Expect interest-rate-driven demand softness, material/labor delays, and inflationary pressures to continue into FY2025	Maintained cautious tone
Dividends	N/A	Not mentioned	Not mentioned	No update

Earnings Call Themes & Trends

Management did not hold a conference call for Q4 2024 . The table below tracks recurring themes across Q2, Q3, and Q4 press releases.

Topic	Previous Mentions (Q2 2024)	Previous Mentions (Q3 2024)	Current Period (Q4 2024)	Trend
Interest Rate Impact on Demand/Mix	Higher mortgage rates pushing smaller-priced homes; customers deferring purchases	Higher rates negatively impacting sales; customers deferring purchases	Higher rates negatively impacting sales; building lower-priced homes	Worsening/Unchanged
Supply Chain & Labor Constraints	Delays in key materials; back orders; labor shortages; delays in completion and setup	Continued delays and shortages impacting deliveries and earnings	Persistent delays; expect challenges to continue into FY2025	Unchanged
Inflation in Building Products	Inflation increasing material and labor costs	Continuing inflation in several building products	Continuing inflation may raise wholesale/retail prices	Unchanged
Florida Industry Shipments	FMHA: shipments down ~9% (Nov 2023–Apr 2024)	FMHA: shipments down ~3% (Nov 2023–Jul 2024)	FMHA: shipments down ~3% (Nov 2023–Oct 2024)	Stabilizing at lower level
Financial Position/Balance Sheet	Strong liquidity; no debt; equity $52.3M; BVPS $15.99	Strong liquidity; equity $54.5M; BVPS $16.67	Strong liquidity; equity $56.6M; BVPS $17.31	Improving
Vertical Integration	Only vertically integrated manufactured home company in FL	Same emphasis	Reiterated vertical integration	Unchanged

Management Commentary

Strategic positioning: “Maintaining our strong financial position is vital for future growth and success… our specific geographic market is one of the best long-term growth areas in the country.”
Demand/mix: “We are building and selling lower-priced homes due to the higher interest rates on mortgages… negatively impacting sales as compared to prior years.”
Operations: “Delays in the receipt of certain key production materials… back orders, price increases and labor shortages… cause delays in completion… and set-up… Our inability to timely deliver and set up homes… has negatively impacted sales and earnings.”
Industry backdrop: FMHA shipments in Florida declined ~3% Nov 2023–Oct 2024 .
Vertical integration: “We are the only vertically integrated manufactured home company headquartered in Florida.”

Q&A Highlights

No conference call was held; management provided contact information for questions (Terry or Tom Trexler) .
No live Q&A or guidance clarifications were provided given the absence of a call .

Estimates Context

Consensus revenue and EPS estimates for Q4 2024 via S&P Global were unavailable during this session; therefore, we cannot assess beats/misses to Street expectations at this time.*
Given the operational and macro commentary (rates, supply chain, inflation), sell-side models may need to reflect ongoing demand softness and potential price/mix impacts in FY2025 .

*Values would be retrieved from S&P Global when available.

Key Takeaways for Investors

Balance sheet strength is a core pillar: $27.2M liquidity, $43.0M working capital, no debt, and rising book value per share ($17.31) provide resilience through cyclical headwinds .
Near-term demand remains challenged by higher mortgage rates; sales and EPS declined y/y and q/q in Q4; expect cautious near-term trajectory until rates or affordability improve .
Operational delays (materials, labor, setup) are persistent; execution improvements and supply normalization could be incremental catalysts when they materialize .
Pricing/mix skew to lower-priced homes pressures revenue; maintaining margins near historical levels relies on cost control and disciplined pricing .
Florida manufactured housing industry remains soft (FMHA shipments down ~3% over Nov 2023–Oct 2024), reinforcing a conservative stance on unit volumes near term .
No formal guidance and no call limit near-term catalysts; watch for updates on supply chain/production and potential rate relief to drive demand reacceleration .
Medium-term thesis centers on vertical integration, strong financial position, and structurally affordable housing demand in Florida; monitor backlog, deposits, and any pricing actions to gauge trajectory .

NOBILITY HOMES INC (NOBH)·Q4 2024 Earnings Summary