Nobility Homes, Inc. · OTC:NOBH
Nobility Homes — Investor Presentation (October 2004)
40 slides from Nobility Homes's investor presentation, Oct 18, 2004
Slide 1: Controlling our Future Through Vertical Integration
Nobility Homes Controlling our Future Through Vertical Integration 10/18/2004
Slide 2: Forward-Looking Statements
Forward-Looking Statements Certain statements in this report are forward-looking statements within the meaning of the federal securities laws, including our statement that working capital requirements will be met with internal sources. Although Nobility believes that the expectations reflected in su
Slide 3: Mission Statement
Mission Statement Nobility Homes, Inc. The mission of Nobility Homes, Inc. is to design and build homes that are leaders in quality, cost, and customer satisfaction through the integration of people, technology, and business systems and to transfer knowledge and experience throughout the company and
Slide 4: Management
Management Officers Years with Nobility Terry E. Trexler Chairman and President 37 Thomas W. Trexler Executive Vice President and Chief Financial Officer President Prestige Home Centers 12 Gloria J. Etheredge Secretary 37 Lynn J. Cramer, Jr. Treasurer 28 Edward C. Sims Vice President Engin
Slide 5: Management Ownership
Management Ownership of the manufactured housing industry 65% 58% 19% 11% 8% 6% 3% Champion Cavalier Fleetwood Cavco Skyline Palm Harbor Nobility
Slide 6: Institutional Ownership
Institutional Ownership of the manufactured housing industry 89% 90% 72% 73% 44% 29% 12% Nobility Palm Harbor Cavalier Cavco Skyline Champion Fleetwood
Slide 7: Revenues (Millions)
Revenues (Millions) $44.8 $41.6 $40.3 $36.5 $37.9 $39.2 $35.6 $30.8 $29.6 $30.2 $23.1 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 (ytd)
Slide 8: Gross Margin
Gross Margin 27.2% 27.9% 25.5% 25.8% 26.1% 25.7% 25.9% 25.2% 25.7% 23.4% 22% 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 (ytd)
Slide 9: Net Income (Millions)
Net Income (Millions) $3.9 $3.0 $3.1 $3.0 $3.1 $2.8 $2.4 $2.5 $2.3 $2.0 $1.2 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 (ytd)
Slide 10: Net Income (Percentage)
Net Income (Percentage) 8.8% 8.9% 8.2% 8.3% 7.7% 7.9% 7.3% 6.9% 6.5% 6.4% 5.2% 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 (ytd)
Slide 11: Net Income of the Manufactured Housing Industry
Net Income of the Manufactured Housing Industry (Last Fiscal Year) 8.1% 4.8% 1.6% -0.1% -1.0% -2.4% -8.5% Champion Fleetwood Palm Harbor Cavalier Skyline Cavco Nobility
Slide 12: Earnings per Share
Earnings per Share $0.79 $0.77 $0.77 $0.76 $0.62 $0.58 $0.58 $0.49 $0.49 $0.41 $0.25 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 (ytd)
Slide 13: Earnings per Share
Earnings per Share Earnings per Share Change vs Last Year (latest quarter) of the Manufactured Housing Industry Month/Year Current Prior Year Quarter Ended Quarter Quarter Cavalier 02 06/04 $(0.03) $(0.02) Cavco 01 06/04 $0.52 $0.31 Proforma Champion 02 07/04 $0.30 $0.04 Fleetwood 01 07/04 $0.12 $0.
Slide 14: Return on Average Equity
Return on Average Equity 37% 22% 22% 23% 16% 13% 14% 14% 11% 12% 12% 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 (ytd)
Slide 15: Return on Ending Equity
Return on Ending Equity of the Manufactured Housing Industry 13.0% 3.0% 6.0% -2.0% -1.0% -9.1% -122.0% Champion Fleetwood Cavalier Palm Harbor Skyline Cavco Nobility
Slide 16: Return on Average Assets
Return on Average Assets 19% 18% 17% 13% 13% 12% 12% 11% 10% 10% 10% 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 (ytd)
Slide 17: Return on Ending Assets
Return on Ending Assets of the Manufactured Housing Industry 11.0% 5.0% 3.0% -1.0% -0.5% -2.0% -14.0% Champion Fleetwood Palm Harbor Cavalier Skyline Cavco Nobility
Slide 18: Number of Floors Manufactured
Number of Floors Manufactured 2522 2280 2147 1981 1672 2359 1667 1687 1453 1525 1241 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 (ytd)
Slide 19: Product Mix
Product Mix of the Manufactured Housing Industry 3% 20% 30% 42% 40% 40% 57% 97% 80% 70% 58% 60% 60% 43% Cavalier Fleetwood Champion Skyline Cavco Palm Harbor Nobility Solid = Multi Section Shaded = Single Section
Slide 20: New Homes Closed by Prestige
New Homes Closed by Prestige 887 820 824 824 731 537 559 507 509 523 432 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 (ytd)
Slide 21: Average Retail Selling Price by Prestige
Average Retail Selling Price by Prestige $55,977 $52,219 $50,124 $45,859 $41,760 $43,023 $38,100 $38,662 $36,500 $34,200 $32,700 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 (ytd)
Slide 22: Average Gross Profit by Prestige
Average Gross Profit by Prestige $8,926 $7,150 $6,702 $6,144 $5,391 $5,495 $5,201 1998 1999 2000 2001 2002 2003 2004 ytd
Slide 23: Current Price Earnings Ratio
Current Price Earnings Ratio of the Manufactured Housing Industry 51 23 20 Cavco Fleetwood Champion Palm Harbor Cavalier Nobility Skyline
Slide 24: Comparison of Cumulative Total Shareholder Return
Comparison of Cumulative Total Shareholder Return 250 200 150 100 50 0 1998 1999 2000 2001 2002 2003 PEER GROUP INDEX NASDAQ MAKET INDEX NOBILITY HOMES, INC. 10% Stock Dividend January 1999 50% stock dividend February 1998 50% stock dividend August 1996 50% stock dividend January 1996 10% stock divi
Slide 25: Seasonally Adjusted Annualized Shipments
0 50000 100000 150000 200000 250000 300000 350000 400000 Aug-98 Oct-98 Dec-98 Feb-99 Apr-99 Jun-99 Aug-99 Oct-99 Dec-99 Feb-00 Apr-00 Jun-00 Aug-00 Oct-00 Dec-00 Feb-01 Apr-01 Jun-01 Aug-01 Oct-01 Dec-01 August 1998—April 2004 Feb-02 Apr-02 Jun-02 Aug-02 Oct-02 Dec-02 Feb-03 Apr-03 Jun-03 Aug-03 Oct
Slide 26: 2004 Objectives
2004 Objectives Increase Revenues Improve Gross Margins Shareholders’ Return Exceeding 15 Percent
Slide 27: Increase Revenues
Increase Revenues Increase Same Store Sales Increase Market Share Increase Nobility/Prestige Name Recognition Introduce Additional “Special-Edition” Homes Increase Sales to Independent Dealers
Slide 28: Improve Gross Margins
Improve Gross Margins Increase Plant Capacity Utilization Higher Internalization Increase Sales at Existing Sales Center Increase Finance Income Increase Insurance Sales Penetration
Slide 29: Investment Strategies
Investment Strategies Committed to improve shareholder value Total vertically integrated home builder Distinguished niche in an expanding market area Strong name recognition Aggressive and experienced management team Impressive financial record and balance sheet History of stringent co
Slide 30: Income of Manufactured Home Buyers
Income of Manufactured Home Buyers Less than $9,999 $50,000 and over 9% 17% $10,000-$19,999 $40,000-$49,999 20% 13% $30,000-$39,999 $20,000-$29,999 18% 23% Median Income -- $28,000
Slide 31: Ages of Household Head
Ages of Household Head of Manufactured Home Buyers Less than 30 years 70 and older 7% 21% 30-39 years 16% 60-69 years 40-49 years 17% 19% 50-59 years 20%
Slide 32: Employment Status of Household Head
Employment Status of Household Head of Manufactured Home Buyers Part Time Not Employed 8% 8% Full Time 54% Retired 30%
Slide 33: Household Size
Household Size of Manufactured Home Buyers 5 or More 6% 1 Member 28% 3-4 Members 27% 2 Members 39% Average household size is 2.3 persons
Slide 34: Manufactured Housing Shipments as % of New Single Family Homes Sold
Manufactured Housing Shipments as a Percent of New Single Family Homes Sold 34% 3 5 .0 % 32% 31% 31% 29% 30% 3 0 .0 % 28% 28% 26% 26% 25% 25% 26% 24% 23% 2 5 .0 % 22% 18% 2 0 .0 % 15% 1 5 .0 % 11% 1 0 .0 % 5 .0 % 0 .0 % 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000
Slide 35: Manufactured Housing Shipments as % of New Single Family Home Starts
Manufactured Housing Shipments as a Percent of New Single Family Home Starts 3 5 .0 % 3 0 .0 % 24% 24% 24% 2 5 .0 % 23% 21% 20% 21% 18% 2 0 .0 % 17% 17% 17% 17% 17% 17% 17% 17% 13% 1 5 .0 % 11% 1 0 .0 % 8% 5 .0 % 0 .0 % 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000
Slide 36: Manufactured Home Shipments, Housing Starts and Homes Sold
Manufactured Home Shipments, New Single Family Housing Units Started and New Single Family Homes Sold (1986-2003) MH as a % of New SF MH as a % of New New SF Homes New SF Homes Year MH Shipments Housing Starts SF Housing Starts Sold Sold 1986 244,660 1,179,400 17.2% 750,000 24.6% 1987 232,598 1,146,
Slide 37: Cost and Size Comparisons for New Manufactured and Site-Built Homes
Cost and Size Comparisons for New Manufactured Homes and New Single Family Site-Built Homes (1995-2002) 1995 1996 1997 1998 1999 2000 2001 2002 2003 MANUFACTURED HOMES (All Lengths and Widths) Average Sales Price $35,300 $37,200 $39,800 $41,600 $43,300 $46,400 $48,900 $51,300 $54,900 Average Square
Slide 38: Top 10 States for Housing Starts 2003
Top 10 States for Housing Starts 2003 State Total % of U.S. Total 1. Florida 211,078 11.3% 2. California 192,273 10.3% 3. Texas 174,170 9.3% 4. Georgia 94,773 5.0% 5. North Carolina 77,982 4.1% 6. Arizona 73,070 3.9% 7. Illinois 61,411 3.2% 8. Virginia 56,951 3.0% 9. Ohio 52,419 2.8% 10. Michigan 51
Slide 39: Top 10 States for HUD-Code Home Shipments 2003
Top 10 States for HUD-Code Home Shipments 2003 State Total % of U.S. Total 1. Texas 10,808 8.3% 2. Florida 10,629 8.1% 3. California 8,441 6.4% 4. North Carolina 6,996 5.3% 5. Tennessee 5,187 4.0% 6. Louisiana 4,978 3.8% 7. Michigan 4,773 3.6% 8. Kentucky 4,635 3.5% 9. Arizona 4,454 3.4% 10. Georgia
Slide 40: Top 10 States for Existing Homes Sales 2003
Top 10 States for Existing Homes Sales 2003 State Total % of U.S. Total 1. California 698,800 9.9% 2. Florida 652,800 9.3% 3. Texas 631,400 9.0% 4. North Carolina 285,700 4.0% 5. Illinois 282,000 4.0% 6. Arizona 239,300 3.4% 7. Ohio 232,100 3.3% 8. Washington 208,200 2.9% 9. Georgia 197,300 2.8% 10.
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