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Results of Operations
−Removed: Total net sales in the first quarter of 2026 were $10,502,846 compared to $12,241,742 in the first quarter of 2025.
−Removed: 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.
−Removed: 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.
−Removed: In addition, we are building and selling lower-priced homes to offset costs for customers due to the higher interest rates.
−Removed: 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.
+Added: Total net sales in the second quarter of 2026 were $12,410,560 compared to $14,757,337 in the second quarter of 2025.
+Added: 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.
+Added: 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.
+Added: 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.
+Added: 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.
−Removed: 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 2026.
−Removed: 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.
−Removed: 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.
+Added: We also continue to experience inflation in several building products resulting in increases in our material costs.
+Added: We expect these challenges will continue throughout fiscal year 2026 and potentially beyond.
+Added: 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.
+Added: 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.
Three Months Ended
+Added: Six Months Ended
New homes sold through Company owned sales centers
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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 first quarter of 2026 were $78,897 compared to $58,374 in the first quarter of 2025.
−Removed: Revenues are generated by new and renewal policies being written which affect agent commission earned.
+Added: Insurance agent commission revenues in the second quarter of 2026 were $68,756 compared to $77,430 in the second quarter of 2025.
+Added: Insurance agent commission revenues for the six months of 2026 were $147,653 compared to $135,804 for the first six months of 2025.
+Added: 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.
−Removed: In the opinion of management, no reserve was deemed necessary for policy cancellations at January 31, 2026 and November 1, 2025.
−Removed: 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.
−Removed: The gross profit in the first quarter of 2026 was $3,197,106 compared to $3,970,785 in the first quarter of 2025.
+Added: In the opinion of management, no reserve was deemed necessary for policy cancellations at May 2, 2026 and November 1, 2025.
+Added: 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.
+Added: 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.
−Removed: 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 13% in the first quarter of 2026 compared to 14% for the first quarter of 2025.
−Removed: 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.
−Removed: 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.
−Removed: We earned interest income of $255,849 for the first quarter of 2026 compared to $285,278 for the first quarter of 2025.
−Removed: 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 first quarter of 2026 were $26,191 compared to $25,805, for the first quarter of 2025.
+Added: 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.
+Added: 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.
+Added: 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
+Added: the first six months of 2026 compared to $3,565,847 for the first six months of 2025.
+Added: 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.
+Added: We earned interest income of $217,606 for the second quarter of 2026 compared to $298,318 for the second quarter of 2025.
+Added: For the first six months of 2026, interest income was $473,455 compared to $583,596 in the first six months of 2025.
+Added: The amount of interest income is primarily a function of interest rates and the amount invested.
+Added: Our earnings from Majestic 21 in the second quarter of 2026 were $14,790 compared to $21,462, for the second quarter of 2025.
+Added: 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.
−Removed: 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.
+Added: 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.
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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 first quarter of 2026 of $2,181,132 as compared to $2,649,213 in the first quarter of 2025.
−Removed: 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.
−Removed: 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.
+Added: 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.
+Added: 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.
+Added: 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.
+Added: Income tax expense for the six months of 2026 was $1,150,123 compared to $1,402,397 for the six months of 2025.
+Added: 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.
+Added: 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.
Liquidity and Capital Resources
−Removed: Cash and cash equivalents were $11,083,302 at January 31, 2026 compared to $13,230,504 at November 1, 2025.
−Removed: Certificates of deposit were $14,184,546 at January 31, 2026 compared to $13,109,325 at November 1, 2025.
−Removed: Short-term investments were $622,994 at January 31, 2026 compared to $583,128 at November 1, 2025.
−Removed: Working capital was $45,560,911 at January 31, 2026 as compared to $46,866,425 at November 1, 2025.
−Removed: During January 2026, the Company repurchased 100,000 shares of common stock from our President at $29.70 per share ($2,970,000).
−Removed: 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.
−Removed: Prestige new home inventory was $17,073,000 at January 31, 2026 compared to $16,605,049 at November 1, 2025.
+Added: Cash and cash equivalents were $9,857,859 at May 2, 2026 compared to $13,230,504 at November 1, 2025.
+Added: Certificates of deposit were $13,745,644 at May 2, 2026 compared to $13,109,325 at November 1, 2025.
+Added: Short-term investments were $552,962 at May 2, 2026 compared to $583,128 at November 1, 2025.
+Added: Working capital was $42,633,147 at May 2, 2026 as compared to $46,866,425 at November 1, 2025.
+Added: A cash dividend was paid from our cash reserves in April 2026 in the amount of $1.50 per share ($4,730,497).
+Added: In January 2026, the Company repurchased 100,000 shares of common stock from our President at $29.70 per share ($2,970,000).
+Added: 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.
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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.
−Removed: 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.
+Added: 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.
Critical Accounting Policies and Estimates
4 unchanged sentences
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.
−Removed: 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.
+Added: 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
+Added: 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.
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.