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Results of Operations
−Removed: Total net sales in the third quarter of 2025 were $12,021,194 compared to $13,803,340 in the third quarter of 2024.
−Removed: Total net sales for the first nine months of 2025 were $39,020,273 compared to $40,099,316 for the first nine months of 2024.
−Removed: The Company reported net income of $1,825,271 in the third quarter of 2025, compared to a net income of $2,185,312 in the third quarter of 2024.
−Removed: Total net sales decreased during the first nine months of 2025 as compared to same period in 2024 due to a decrease in the number of new retail homes sold in our Company owned retail sales centers during the first nine months of fiscal 2025 as compared to 2024 (195 versus 232) partially offset by an increase in the number of homes sold to independent dealers, which have lower margins than retail sales during 2025 (129 versus 99).
−Removed: We believe that potential customers have delayed or deferred purchasing decisions when considering the higher interest rate environment and the uncertainty of the economy, which continues to negatively impact sales.
+Added: Total net sales in the first quarter of 2026 were $10,502,846 compared to $12,241,742 in the first quarter of 2025.
+Added: Net income was $1,628,326 in the first quarter of 2026, compared to a net income of $1,980,422 in the first quarter of 2025.
+Added: Total net sales decreased during the first three 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 (43 homes versus 67 homes) partially offset by an increase in the number of homes sold to independent dealers (57 homes versus 31 homes) which have lower margins.
+Added: In addition, we are building and selling lower-priced homes to offset costs for customers due to the higher interest rates.
+Added: We believe that potential customers have delayed or deferred 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 and labor costs.
−Removed: We expect these challenges will continue throughout fiscal year 2025 and into fiscal 2026.
−Removed: The current demand for affordable manufactured housing in Florida and the U.S.
−Removed: According to the Florida Manufactured Housing Association, shipments for the industry in Florida for the period from November 2024 through July 2025 declined by approximately 12% from the same period last year.
−Removed: The following table summarizes certain key sales statistics and percentage of gross profit for the three and nine months ended August 2, 2025 and August 3, 2024.
+Added: We expect these challenges will continue throughout fiscal year 2026.
+Added: According to the Florida Manufactured Housing Association, shipments for the manufacturing housing industry in Florida for the period from November 2025 through January 2026 increased by approximately 2% from the same period last year.
+Added: The following table summarizes certain key sales statistics and percentage of gross profit for the three months ended January 31, 2026 and February 1, 2025.
Three Months Ended
−Removed: Nine Months Ended
New homes sold through Company owned sales centers
−Removed: Pre-owned homes sold through Company owned sales
Homes sold to independent dealers
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With multiple retail sales centers in Florida for over 35 years and an insurance agency subsidiary, we are the only vertically integrated manufactured home company headquartered in Florida.
−Removed: Insurance agent commission revenues in the third quarter of 2025 were $101,684 compared to $88,703 in the third quarter of 2024.
−Removed: Total insurance agent commission revenues for the first nine months of 2025 were $237,487 compared to $259,883 for the first nine months of 2024.
+Added: Insurance agent commission revenues in the first quarter of 2026 were $78,897 compared to $58,374 in the first quarter of 2025.
Revenues are generated by new and renewal policies being written which affect agent commission 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.
−Removed: In the opinion of management, no reserve was deemed necessary for policy cancellations at August 2, 2025 and November 2, 2024.
−Removed: Gross profit as a percentage of net sales was 32% in the third quarter of 2025 compared to 33% in the third quarter of 2024 and was 32% for the first nine months of 2025 compared to 34% for the first nine months of 2024.
−Removed: The gross profit in the third quarter of 2025 was $3,848,186 compared to $4,606,600 in the third quarter of 2024 and was $12,450,387 for the first nine months of 2025 compared
−Removed: to $13,509,340 for the first nine months of 2024.
+Added: In the opinion of management, no reserve was deemed necessary for policy cancellations at January 31, 2026 and November 1, 2025.
+Added: Gross profit as a percentage of net sales was 30% in the first quarter of 2026 compared to 32% in the first quarter of 2025.
+Added: The gross profit in the first quarter of 2026 was $3,197,106 compared to $3,970,785 in the first quarter 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 an increase in the number of homes sold to independent dealers and a decrease in the number of homes sold at our Company owned retail sales centers that generate higher margins.
−Removed: Selling, general and administrative expenses as a percent of net sales was 14% in the third quarter of 2025 compared to 15% for the third quarter of 2024 and was 13% for the first nine months of 2025 compared to 15% in the first nine months of 2024.
−Removed: Selling, general and administrative expenses in the third quarter of 2025 was $1,670,585 compared to $2,032,973 in the third quarter of 2024 and was $5,236,432 for the first nine months of 2025 compared to $5,976,683 for the first nine months of 2024.
−Removed: The dollar decrease in selling, general and administrative expenses for the first nine months of 2025 versus 2024 were due to decrease in the number of new home sold at our Company owned retail sales centers.
−Removed: We earned interest income of $270,139 for the third quarter of 2025 compared to $318,253 for the third quarter of 2024.
−Removed: For the first nine months of 2025, interest income was $853,735 compared to $836,113 in the first nine months of 2024.
+Added: Selling, general and administrative expenses as a percent of net sales was 13% in the first quarter of 2026 compared to 14% for the first quarter of 2025.
+Added: Selling, general and administrative expenses in the first quarter of 2026 was $1,369,656 compared to $1,676,650 in the first quarter of 2025.
+Added: The dollar decrease in selling, general and administrative expenses for the first three months of 2026 versus 2025 were due to decrease in the number of new home sold at our Company owned retail sales centers.
+Added: We earned interest income of $255,849 for the first quarter of 2026 compared to $285,278 for the first quarter of 2025.
The amount of interest income is primarily a function of change in the interest rates and the amount invested.
−Removed: Our earnings from Majestic 21 in the third quarter of 2025 were $25,624 compared to $24,914, for the third quarter of 2024.
−Removed: The earnings for the first nine months of 2025 were $72,893 compared to $67,623 for the first nine months of 2024.
+Added: Our earnings from Majestic 21 in the first quarter of 2026 were $26,191 compared to $25,805, for the first quarter 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.
−Removed: The Company received a one-time distribution of approximately $1.6 million in first quarter of 2024, representing our 50% of the excess capital in the portfolio.
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.
−Removed: We received distributions from 21 st Mortgage Corporation in the third quarter of 2025 of $36,094 compared to $47,339 in the third quarter of 2024 and $116,312 for the first nine months of 2025 compared to $147,155 for the first nine months of 2024.
+Added: We received distributions from 21 st Mortgage Corporation in the first quarter of 2026 of $21,446 compared to $38,152 in the first quarter 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.
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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.
−Removed: The Company realized pre-tax income in the third quarter of 2025 of $2,493,117 as compared to $2,927,213 in the third quarter of 2024.
−Removed: The pre-tax income for the first nine months of 2025 was $8,168,256 as compared to $8,773,299 in the first nine months of 2024.
−Removed: The Company recorded an income tax expense in the amount of $667,846 in the third quarter of 2025 as compared to $741,901 in third quarter 2024.
−Removed: Income tax expense for the nine months of 2025 was $2,070,243 compared to $2,223,591 for the nine months of 2024.
−Removed: We reported net income of $1,825,271 for the third quarter of 2025 or $0.56 per share, compared to $2,185,312 or $0.67 per share, for the third quarter of 2024.
−Removed: For the first nine months of 2025 net income was $6,098,013 or $1.87 per share (diluted $1.86) compared to $6,549,708 or $2.00 per share (basic and diluted) in the first nine months of 2024.
+Added: The Company realized pre-tax income in the first quarter of 2026 of $2,181,132 as compared to $2,649,213 in the first quarter of 2025.
+Added: The Company recorded an income tax expense in the amount of $552,806 in the first quarter of 2026 as compared to $668,791 in first quarter 2025.
+Added: We reported net income of $1,628,326 for the first quarter of 2026 or $0.50 per share (basic and diluted), compared to $1,980,422 or $0.61 per share ($0.60 diluted), for the first quarter of 2025.
Liquidity and Capital Resources
−Removed: Cash and cash equivalents were $14,362,469 at August 2, 2025 compared to $13,521,296 at November 2, 2024.
−Removed: Certificates of deposit were $12,174,266 at August 2, 2025 compared to $13,021,839 at November 2, 2024.
−Removed: Short-term investments were $564,681 at August 2, 2025 compared to $680,017 at November 2, 2024.
−Removed: Working capital was $44,799,769 at August 2, 2025 as compared to $42,927,149 at November 2, 2024.
−Removed: A cash dividend was paid from our cash reserves in April 2025 in the amount of $1.25 per share ($4,086,247).
−Removed: The Company received approximately $1.6 million in the first quarter of 2024, from 21 st Mortgage Corporation, representing our 50% of the excess capital in the portfolio.
−Removed: Prestige new home inventory was $17,058,767 at August 2, 2025 compared to $18,475,931 at November 2, 2024.
−Removed: Prestige has fifty one (51) ($4.1 million) new homes that are included in inventory and are in the field waiting to be completed and closed.
+Added: Cash and cash equivalents were $11,083,302 at January 31, 2026 compared to $13,230,504 at November 1, 2025.
+Added: Certificates of deposit were $14,184,546 at January 31, 2026 compared to $13,109,325 at November 1, 2025.
+Added: Short-term investments were $622,994 at January 31, 2026 compared to $583,128 at November 1, 2025.
+Added: Working capital was $45,560,911 at January 31, 2026 as compared to $46,866,425 at November 1, 2025.
+Added: During January 2026, the Company repurchased 100,000 shares of common stock from our President at $29.70 per share ($2,970,000).
+Added: A cash dividend was paid from our cash reserves in April 2025 in the amount of $1.25 per share ($4,086,247) and on March 6, 2026, we declared a one-time cash dividend of $1.50 per common share for the fiscal year 2025 payable on April 13, 2026, to shareholders of record as March 30, 2026.
+Added: Prestige new home inventory was $17,073,000 at January 31, 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.
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The Company also has approximately $4.8million 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.
−Removed: As of August 2, 2025, the Company continued to report a strong balance sheet which included total assets of approximately $65.6 million which was funded primarily by stockholders’ equity of approximately $58.7 million.
+Added: As of January 31, 2026, the Company continued to report a strong balance sheet which included total assets of approximately $65.9 million which was funded primarily by stockholders’ equity of approximately $59.4 million.
Critical Accounting Policies and Estimates
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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.