Archive

Posts Tagged ‘Nobility’

Manufactured Housing Industry, New HUD Code Home Retailing – More Exploring, Going Vertical

October 10th, 2017 Comments off

ManufacturedHousingGoingVerticalReportDailyBusinessNewsMHProNewsFirst in the mobile home business days, and later, as the manufactured home industry evolved, the sale of new homes was dominated for decades by independently owned and operated retailers and communities. 

Some independent retailers – a.k.a ‘dealers’ – developed over time into multiple-locations that also produced, sold – and sometimes also financed – their own homes.

For much of the industry’s history, it was independent retailers that dominated in total numbers.

It should also be noted that those eras when independents dominated, had far higher total home sales. Coincidence?  The National Federation of Independent Business (NFIB) – which includes 325,000 companies, hundreds of which are in manufactured housing – has argued that small business is a backbone for America.

MobileManufacturedHomeAnnualShipments1959-2012CalculatedRisk-DailyBusinessNewsManufacturedHousingIndustryResearchReportsMHProNews

The popularity of mobile homes rose rapidly in the post World War II period. The first big drop came during the time that the HUD Code for manufactured housing was passed and went into effect. 

That trend of new home sales being dominated by independents stared changing in the mid-to-late 1990s. 

Fleetwood Homes and Champion Homes – then the two top producers of HUD Code manufactured housing – went on a buying spree of retail locations.  The big two builders of HUD Code manufactured homes were looking for more market share, and their plan was simple.

Establish new retail centers, or buy out existing ones that were already performing.

FactoryHousingEvolution101TrailerHouseMobileHomeManufacturedHome

To understand the proper industry terminology, click the graphic above.

Tony, I have absolutely no idea,” how many other HUD Code manufactured home producers are exploring or going vertical.  But, “In the case of [our company],” the “off-the-record for now” email read, “I give it consideration every single day!

Another independent producer said they were hearing some about this vertical integration trend, but not hearing a lot of this [yet,] but understand many attempt to find different ways to solidify and/or increase their market share and CSI.”

 Among the MH Industry’s Vertical Operations

·        Clayton Homes,
·        Cavco,
·        Nobility Homes,
·        Solitaire, and
·        American HomeStar,

are among those companies that produce and retail homes – these are brand that to various degrees are already vertically integrated.

BerkshireHathawayClaytonHomesVanderbiltVMF21stMortgageManufacturedHomesLoansFEMA

Sources tell MHProNews that the FEMA fiasco is sparking a move by some into vertical integration.

Vertical integration may or may not include new home financing – which Clayton Homes does through Vanderbilt Mortgage and Finance (VMF) – and may also include:

  • insurance,
  • transport, and
  • installation.

As regular MHProNews readers know, unlike 21st Mortgage, VMF offers programs that may not be available through their Berkshire Hathaway sister operation, 21st Mortgage. 

VanderbiltMortgageFinanceVMFZeroDownPaymentChattelLoanManufacturedHousingIndustryNewsMHProNews

Those differences between 21st and Clayton’s captive lender VMF, tilt toward VMF.  That gives Clayton at least a theoretical edge in the marketplace.  How Clayton does with that edge will be explored in an upcoming report.

 

ManufacturedHousingIndustry30YearAnnualShipmentsCavcoMHIDailyBusinessNewsMHProNews

A variety of factors has influenced the rise and fall of manufactured home shipments over the years. Among those often noted are economic, finance, competition from easy site-built lending in the early 2000s, regulatory — and the impact of near monopoly” influences.

 …and Going Vertical…

The Daily Business News has heard directly from top executives at two operations, who have told MHProNews that they’re in the process of “going vertical.”

Both have mentioned the frustration over FEMA, as well as other causes for their plans.

While one company set no specific time lines, the other indicated that by this time next year, “going vertical” would be a “done deal.”  To protect proprietary information, and at the request of those sources, the specific details are being kept off-the-record.

VintageMobileHomesKenCorbinDailyBusinessNewsMHProNews

In the mobile home era, hundreds of thousands of more homes were sold than are being sold today. Yet the affordable housing crisis is raging nationally, Plus, the quality, design, appeal and satisfaction of modern manufactured homes are higher today than ever before.  While there are many factors – including regulatory ones – that contribute to the lower new home sales volume today, sources tell the Daily Business News that it’s due in part to what producers across the country have said is a lack of independent MH Retailers. With the FEMA crunch, there are now increased concerns from a growing number of independents about the direction that current events are taking the industry.

MHProNews has also heard from/about two other operations that are testing/going/exploring vertical integration.

All of this comes down to an insufficient number of independent operations,” one source in HUD Code building said. “A competitor of ours is helping new independents open up; not exactly a vertical operation, but a step towards that, as they’re offering floorplan on their inventory.”

Charley Lott, Fleetwood Homes

CharleyLottFleetwoodHomesPalmHarborCavcoIndustriesMHProNews

Charley Lott, Fleetwood Homes, Cavco Industries, credit, MHProNews.

At the Louisville Manufactured Housing Show, circa January 2007, Fleetwood’s Charley Lott – now part of Cavco Industries – stood in a room with over 100 independent operators in it. 

Lott was making his ‘mea culpa’ to those independent retailers and communities, for the period when Fleetwood “forgot” its independents that helped make them a top player in manufactured housing for many years.  

Lott admitted to that room of independent retail and community professionals that in Fleetwood’s rush for vertical integration –  during their late 1990s contest with Champion – their focus shifted away from independents. He admitted apologetically that it hurt many involved in that process.

Much has changed in the last 20 years, as longer-term manufactured home industry veterans know. 

But the question of vertical integration is a vexing one, which IBIS World and The Atlantic predicted, as was previously reported at the link below the graphics that follow.

AmericasFastestDyingBusinessMobileHomeRetailers

A close reading of the IBIS World/Atlantic report made it clear that the headline was actually focusing on how independent manufactured home retailers were dying off. That projection, now several years old, has proven to be correct.

Some of the causes for the failure of literally thousands of independent HUD Code independent retailers – and later several of the producers which supplied them – has been explored in part in previous articles, one of which is linked here.

How many independent retailers have vanished?  Former Clayton exec turned-speaker, Ken Corbin puts the number around 10,000.

CallKenCorbin10000ManufacturedHomeRetailerDealerDropDailyBuisnessNewsMHProNews

The above is a collage of some images from Ken Corbin’s presentation at the manufactured housing industry’s 5 State Event in Deadwood, SD. Graphic by Corbin used with permission.

There will be a special report of a process that accelerated the demise of independent retailers and producers. It will explore a related, underlying cause that’s gone under-reported in MHVille. It is one that sources say the Manufactured Housing Institute (MHI) and its key players have allegedly hoped would not “come out” to see the light of day.

Still Several HUD Code Independent Producers Committed Solely to Independent Retailers

Sunshine Homes president John Bostick has made it clear to his retailers that he is committed to them.

That loyalty is valued and respected in the hospitality and meeting rooms where dozens of Sunshine independent retailers and communities gather.  Having attended several of those over the years, the mutual respect at their gatherings is tangible. That independent producer, retailers, communities and builder/developers have forged a bond with each other, that in several cases, spans decades. 

So, one point is that not everyone is ‘going vertical.’ 

Besides Sunshine, several other independent producers and retailers exist, as Bostick has noted on several occasions.  Many are represented by the Manufactured Housing Association for Regulatory Reform

As FEMA and other pressures grow on retailers and producers alike, what the future will hold is literally up for grabs.

Up For Grabs

One of those grabbing for a takeover of more independents is Clayton Homes, as the Daily Business News has previously reported. 

ClaytonHomesFEMALogosDailyBusinessNewsMHProNews

As pressure on independent retailers mounts from direct and indirect causes, industry professionals have voiced on-the-record concerns that they are being squeezed in the marketplace.  Learn more, click above.

A reliable source tells us that Clayton has “a mandate” to continue growing their retail division.

There are concerns about “the near monopoly,” as Maxine Watters (D-CA) and some of her congressional colleagues have expressed about Clayton grip in HUD Code production.  

But sources note there seems to be less federal oversight on the industry’s retail side.

Some of that expansion by Clayton retail will come, per another source, from expansion and buyouts, like the one previously reported about award-winning Home Mart, in Tulsa, OK.

HomeMartClaytonHomesGoogleMapsDailyBusinessNewsResearchDataReportsMHProNews

A growing number of retailers are selling out to Clayton Homes, as MHProNews has been reporting.

But others, per that source, will come from attrition of the relatively small numbers of independent producers still in the market place. 

That allegation and other concerns noted will be explored in yet another planned, upcoming report. ## (News, analysis, commentary.)

(Image credits are as shown above, and when provided by third parties, are shared under fair use guidelines.)

LATonyKovachMHProNews-com-

L. A. ‘Tony’ Kovach addressing industry professionals in an educational session.

By L. A. “Tony” Kovach, managing member of LifeStyle Factory Homes, LLC – parent company to MHLivingNews and MHProNews.

 

 

 

 

 

 

Sunday Morning Weekly Recap Manufactured Housing Industry News, September 10 to September 17, 2017

September 17th, 2017 Comments off
SundayMorningWeeklyRecapSept4toSept10ManufacturedHousingIndustryDailyBusinessNewsMHProNews-1

Featured image credit, MHProNews.

Our new September issue is live. Our featured articles will be available on the MHProNews.com home page. Our September theme will be available mid-week this week.

 To see the line-up of over 2-dozen featured articles for this month, along with the headline commentary, please click the link above.

Manufactured, modular and prefabricated home professionals know that how a home got to its location should not define a person or their dwelling.

What the Daily Business News spotlights day-by-day are the tragedies, triumphs and struggles for acceptance of the obvious solution for millions for the growing affordable housing crisis in the U.S. and beyond.

When you read the lineup for the month found on the home page, you can reflect on another motto as you chart your own professional path ahead: “We Provide, You Decide.”  ©

mhlivingnews-improvedlivingforle-logo

What’s New On MHLivingNews

Manufactured Home Community Survives Hurricane Harvey, Damage Reports, and Relief Efforts

September 16th, 2017

HurricaneHarveyUSATodayDailyBusinessNewsMHProNews

Hurricane Harvey flooding, credit, USA Today.

 

September 15th, 2017

POTUSDonaldTrumpBarackObamaABCNewsGoDailyBusinessNewsMHProNews

Photo credit, ABC News Go.

 

September 14th, 2017

PoliceICEImmigrationCustomEnforcementYahooDailyBusinessNewsMHProNews

 

September 13th, 2017

PoDunkPerformerKidRockEyesSenateRunMakesManufacturedHomeLivingHipMHLivingnEws

 

September 12th, 2017

TimWilliamsCreditLinkedIn21stMortCorpCEOManufacturedHousingIndustryMHIChairmanWarrenBuffettBerkshireHathawayChairman

Warren Buffett, right, credit Wikipedia. Tim Williams, right, credit, LinkedIn. Collage credit, MHProNews.

 

September 11th, 2017

CNBCWhenIrmaTurnedWestSighRelifInsurerDailyBusinessNewsMHProNews

September 10th, 2017

 

(Image credits are as shown above, and when provided by third parties, are shared under fair use guidelines.)

SoheylaKovachManufacturedHomeLivingNewsManufacturedHousingIndustryDailyBusinessNewsMHProNews-Submitted by Soheyla Kovach to the Daily Business News for MHProNews.com.

 

Nobility Homes Reports Q1 2017 Results

March 21st, 2017 Comments off

NobilityHomesModelHomeLogoQuarterlyReport-ManufacturedHousingIndustryDailyBusinessNewsMHProNews-Nobility Homes, Inc. (OTCQX: NOBH) has announced their Q1 2017 sales results.

The company reports sales increased 16 percent to $8,573,400, as compared to $7,374,050 recorded in first quarter 2016. Income from operations for first quarter 2017 was $1,056,477 versus $975,741 in the same period last year.

Net income after taxes was $703,323, as compared to $678,401 for the same quarter last year, and diluted earnings per share were $0.18 per share, compared to $0.17 per share last year.

The demand for affordable manufactured housing in Florida and the U.S. continues to improve. According to the Florida Manufactured Housing Association, shipments in Florida for the period from November 2016 through January 2017 were up approximately 8.9% from the same period last year. Our sales and earnings continue to be affected by the lack of available retail and wholesale financing. Constrained consumer credit and the lack of lenders in the industry, partly as a result of an increase in government regulations, have limited many affordable manufactured housing buyers from purchasing homes,” said Nobility Homes President Terry Trexler.

Notably, Nobility Homes maintained a strong cash position during the quarter, with cash, cash equivalents and short-term investments of $25,962,722 with no outstanding debt. Stockholders’ equity sits at $45,498,192 and the book value per share of common stock increased to $11.36.

We believe maintaining our strong financial position is vital for future growth and success. Because of the recent years of very challenging business conditions in our market area, management continues to evaluate all expenses and react in a manner consistent with maintaining our strong financial position, while exploring opportunities to expand our distribution and manufacturing operations,” said Trexler.

The Board of Directors also declared a one-time cash dividend of $.15 per common share for fiscal year 2016, on March 10, 2017. The cash dividend is payable on April 17, 2017 to stockholders of record as of March 27, 2017.

NobilityHomesReportsQ12017EarningscreditBloomberg-postedtothedailybusinessnewsmhpronewsmhlivingnews

Nobility one year look. Credit: Bloomberg.

Our many years of experience in the Florida market, combined with home buyers’ increased need for more affordable housing, should serve the Company well in the coming years. Management remains convinced that our specific geographic market is one of the best long-term growth areas in the country,” said Trexler.

KitchenNobilityHomesWebsiteManufacturedHousingIndustryDailyBusinessNewsMHProNews

Inside of a Nobility manufactured home. Credit: Nobilty Homes.

As Daily Business News readers are aware, Nobility Homes designs, manufactures and sells about 100 different models of manufactured and modular homes through its own vertically integrated retail sales centers throughout Florida, and has for over 49 years. Other holdings include multiple retail sales centers, an insurance subsidiary, and an investment in a retirement manufactured home community.

Nobility Homes is also one of the industry stocks monitored each business day. For the most recent closing numbers on all MH industry-connected tracked stocks, please click here. ##

 

(Image credits are as shown above.)

 

rcwilliams-writer75x75manufacturedhousingindustrymhpronews

RC Williams, for Daily Business News, MHProNews.

Submitted by RC Williams to the Daily Business News for MHProNews.

Benzinga: Cavco, Deer Valley, Nobility and Skyline have Highest MH Revenue

May 19th, 2014 Comments off

The four manufactured housing stocks with the highest revenue, as MHProNews.com has learned from benzinga.com, are Cavco Industries, Inc. (NASDAQ:CVCO) that had a trailing-twelve-month revenue of $510.96 million with an operating revenue of 5.75 percent. With a gross profit for the same period of $11.46 million, Skyline (NYSE:SKY) reports a trailing-twelve-month revenue of $182.86 million. Deer Valley Corp. (OTC:DVLY) notes a trailing-twelve-month revenue stream of $28.68 million, with earnings per share of $0.04. Meanwhile, the trailing-twelve-month revenue at Nobility Homes (OTC:NOBH) is $19.32 million with a return on earnings (ROE) of 2.43 percent. ##

(Image credit: Nobility Homes)

Manufactured Housing a Bright Spot in Market

April 4th, 2012 Comments off

Manufactured Home For Sale Photo by Eric MillerFrom The Globe and Mail, we find a story depicting manufactured housing a bright spot in an otherwise gloomy housing market. According to the article, manufactured housing shipments in January rose to 60,000 on a seasonally adjusted annual rate, up 33 per cent over last year, but still off highs of some 200,000 a year. The article also looks at share prices of manufactured housing stocks showing share price spikes at Skyline Corp and Nobility Homes. It is a spring off a low base, however. Quarterly revenues at Skyline, the article points out, were once as high as 120-million but are now at about $45-million.

(Image Credit: Eric Miller)

Categories: Business, Economy Tags: ,

Dow Dips as Moody, S&P Warn of U.S. Credit Downgrade

July 26th, 2011 Comments off

obama-white-house.09The Dow dropped 91.50 or .073% to close at 12,501.30 today. The dip came on the heels of Moody’s and S&P’s renewed warning they may downgrade the U.S. Credit rating over the debt ceiling issue.  Most manufactured housing stocks also fell. Berkshire Hathaway (parent of Clayton Homes) dropped -.0.49. Cavco Industries slid -0.28. Deer Valley was unchanged at 0.55. Equity Lifestyle Properties declined -.024. Nobility dropped a modest -.0.03. Palm Harbor slid -.0072, for a total year to date decline of -85.60%. UMH Properties bucked the general downward trend by rising +0.12. Skyline lost -1.18 as Sun Communities nudged down -0.05. The Manufactured Housing Composite Index stood at 1004.8 today, with a dip of -2.69%.

(photo credit: CNN Money)

Dow and Most Housing Stocks Move Up

March 8th, 2011 Comments off

The Dow gained 124.35 points to end the day at 12,214.38.  Cavco gained 3.54 percent and Skyline Corp. was up 3.29 percent.  Nobility Homes and Deer Valley remained unchanged.  The Manufactured Housing Composite moved up 3.09 percent to finish the day at 1152.40.

Week Ends with Another Mixed Day

February 26th, 2011 Comments off

Despite oil prices surging more than 9 percent in one week, the Dow closed up just over one-half point at 12,130.45.  Skyline Corp finished up 8.61 percent, and Cavco gained 2.97 percent.  Nobility dropped .25 percent, and Deer Valley lost 32.69 percent.  The Manufactured Housing Composite gained 3.25 percent to close at 1135.9.

Mixed Day on Wall Street

February 24th, 2011 Comments off

The Dow ended the day down 0.31 percent to close at 12,068.50.  Skyline Corporation gained 1.03 percent, Cavco closed down 0.46 percent, Nobility and Deer Valley were unchanged.  The Manufactured Housing Composite lost 0.13 percent to close at 1096.02.

Dow Closes Lower, MH Composite Gains

February 10th, 2011 1 comment
Disappointing earnings news had stocks ten points lower Thursday, while the Manufactured Housing Composite Value rose 1.4 percent. Cavco closed higher by more than one percent and Skyline Corporation enjoyed a 3.6 percent gain. On the downside, Nobility Homes and Universal Forest Products were down more than three percent.