Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Aug. 03, 2019 | Sep. 13, 2019 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Entity Interactive Data Current | Yes | |
Amendment Flag | false | |
Document Period End Date | Aug. 3, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | NOBILITY HOMES INC | |
Entity Central Index Key | 0000072205 | |
Current Fiscal Year End Date | --11-03 | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Address, State or Province | FL | |
Title of 12(b) Security | Common Stock | |
No Trading Symbol Flag | true | |
Entity Common Stock, Shares Outstanding | 3,664,070 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Aug. 03, 2019 | Nov. 03, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 21,146,880 | $ 28,364,861 |
Certificates of Deposit | 10,118,833 | 6,034,093 |
Short-term investments | 496,556 | 537,767 |
Accounts receivable - trade | 1,993,058 | 1,783,073 |
Note receivable | 67,899 | 46,444 |
Mortgage notes receivable | 17,317 | 15,664 |
Inventories | 9,070,508 | 7,270,550 |
Pre-owned homes, net | 499,463 | 933,640 |
Prepaid expenses and other current assets | 1,238,456 | 1,090,152 |
Total current assets | 44,648,970 | 46,076,244 |
Property, plant and equipment, net | 4,900,716 | 4,763,566 |
Pre-owned homes, net | 793,671 | 473,191 |
Note receivable, less current portion | 42,047 | 46,265 |
Mortgage notes receivable, less current portion | 233,247 | 236,402 |
Other investments | 1,631,721 | 1,571,166 |
Property held for sale | 213,437 | |
Deferred income taxes | 40,156 | |
Cash surrender value of life insurance | 3,572,974 | 3,437,974 |
Other assets | 156,287 | 156,287 |
Total assets | 55,979,633 | 57,014,688 |
Current liabilities: | ||
Accounts payable | 933,587 | 1,085,095 |
Accrued compensation | 768,825 | 869,657 |
Accrued expenses and other current liabilities | 1,943,653 | 1,349,381 |
Income taxes payable | 852,236 | 579,786 |
Customer deposits | 3,107,855 | 4,064,268 |
Total current liabilities | 7,606,156 | 7,948,187 |
Deferred income taxes | 126,617 | |
Total liabilities | 7,732,773 | 7,948,187 |
Commitments and contingent liabilities | ||
Stockholders' equity: | ||
Preferred stock, $.10 par value, 500,000 shares authorized; none issued and outstanding | ||
Common stock, $.10 par value, 10,000,000 shares authorized; 5,364,907 shares issued; 3,746,570 and 3,873,731 outstanding, respectively | 536,491 | 536,491 |
Additional paid in capital | 10,686,657 | 10,670,848 |
Retained earnings | 52,386,965 | 50,352,546 |
Accumulated other comprehensive income | 349,999 | 390,407 |
Less treasury stock at cost, 1,618,337 shares in 2019 and 1,491,176 shares in 2018 | (15,713,252) | (12,883,791) |
Total stockholders' equity | 48,246,860 | 49,066,501 |
Total liabilities and stockholders' equity | $ 55,979,633 | $ 57,014,688 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Aug. 03, 2019 | Nov. 03, 2018 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.10 | $ 0.10 |
Preferred stock, shares authorized | 500,000 | 500,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.10 | $ 0.10 |
Common stock, shares authorized | 10,000,000 | 10,000,000 |
Common stock, shares issued | 5,364,907 | 5,364,907 |
Common Stock, shares outstanding | 3,746,570 | 3,873,731 |
Treasury stock, shares | 1,618,337 | 1,491,176 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income and Comprehensive Income - USD ($) | 3 Months Ended | 9 Months Ended | ||
Aug. 03, 2019 | Aug. 04, 2018 | Aug. 03, 2019 | Aug. 04, 2018 | |
Income Statement [Abstract] | ||||
Net sales | $ 11,785,366 | $ 11,447,636 | $ 35,567,828 | $ 30,015,718 |
Cost of sales | (8,139,910) | (8,705,847) | (25,506,957) | (22,745,684) |
Gross profit | 3,645,456 | 2,741,789 | 10,060,871 | 7,270,034 |
Selling, general and administrative expenses | (1,352,315) | (1,279,397) | (3,860,173) | (3,525,538) |
Operating income | 2,293,141 | 1,462,392 | 6,200,698 | 3,744,496 |
Other income: | ||||
Interest income | 134,526 | 99,594 | 431,995 | 216,977 |
Undistributed earnings in joint venture - Majestic 21 | 19,800 | 28,602 | 60,555 | 78,917 |
Proceeds received under escrow arrangement | 76,734 | 117,271 | 289,341 | 172,911 |
Gain on sale of assets | 864,887 | 880,129 | 203,512 | |
Miscellaneous | 10,834 | 10,083 | 33,714 | 22,667 |
Total other income | 1,106,781 | 255,550 | 1,695,734 | 694,984 |
Income before provision for income taxes | 3,399,922 | 1,717,942 | 7,896,432 | 4,439,480 |
Income tax expense | (856,818) | (469,858) | (1,997,797) | (1,039,555) |
Net income | 2,543,104 | 1,248,084 | 5,898,635 | 3,399,925 |
Other comprehensive loss | ||||
Unrealized investment loss, net of tax effect | (96,120) | (5,046) | (40,408) | (50,556) |
Comprehensive income | $ 2,446,984 | $ 1,243,038 | $ 5,858,227 | $ 3,349,369 |
Weighted average number of shares outstanding: | ||||
Basic | 3,807,357 | 3,873,746 | 3,848,936 | 3,925,007 |
Diluted | 3,808,617 | 3,875,897 | 3,850,169 | 3,927,066 |
Net income per share: | ||||
Basic | $ 0.67 | $ 0.32 | $ 1.53 | $ 0.87 |
Diluted | $ 0.67 | $ 0.32 | $ 1.53 | $ 0.87 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Changes in Stockholders' Equity - USD ($) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income [Member] | Treasury Stock [Member] |
Balance at Nov. 04, 2017 | $ 47,414,297 | $ 536,491 | $ 10,669,231 | $ 46,167,528 | $ 412,233 | $ (10,371,186) |
Balance, shares at Nov. 04, 2017 | 3,997,569 | |||||
Purchase of treasury stock | (94,500) | (94,500) | ||||
Purchase of treasury stock, shares | (4,500) | |||||
Stock-based compensation | 441 | 441 | ||||
Unrealized investment gain (loss), net of tax effect | 22,347 | 22,347 | ||||
Net income | 1,016,236 | 1,016,236 | ||||
Balance at Feb. 03, 2018 | 48,358,821 | $ 536,491 | 10,669,672 | 47,183,764 | 434,580 | (10,465,686) |
Balance, shares at Feb. 03, 2018 | 3,993,069 | |||||
Balance at Nov. 04, 2017 | $ 47,414,297 | $ 536,491 | 10,669,231 | 46,167,528 | 412,233 | (10,371,186) |
Balance, shares at Nov. 04, 2017 | 3,997,569 | |||||
Purchase of treasury stock, shares | (123,838) | |||||
Unrealized investment gain (loss), net of tax effect | $ (50,556) | |||||
Net income | 3,399,925 | |||||
Balance at Aug. 04, 2018 | 47,473,623 | $ 536,491 | 10,670,407 | 48,788,839 | 361,677 | (12,883,791) |
Balance, shares at Aug. 04, 2018 | 3,873,731 | |||||
Balance at Feb. 03, 2018 | 48,358,821 | $ 536,491 | 10,669,672 | 47,183,764 | 434,580 | (10,465,686) |
Balance, shares at Feb. 03, 2018 | 3,993,069 | |||||
Cash dividend | (778,614) | (778,614) | ||||
Purchase of treasury stock | (2,410,500) | (2,410,500) | ||||
Purchase of treasury stock, shares | (119,000) | |||||
Stock-based compensation | 441 | 441 | ||||
Unrealized investment gain (loss), net of tax effect | (67,856) | (67,856) | ||||
Net income | 1,135,605 | 1,135,605 | ||||
Balance at May. 05, 2018 | 46,237,897 | $ 536,491 | 10,670,113 | 47,540,755 | 366,724 | (12,876,186) |
Balance, shares at May. 05, 2018 | 3,874,069 | |||||
Purchase of treasury stock | (7,605) | (7,605) | ||||
Purchase of treasury stock, shares | (338) | |||||
Stock-based compensation | 294 | 294 | ||||
Unrealized investment gain (loss), net of tax effect | (5,046) | (5,047) | ||||
Net income | 1,248,084 | 1,248,084 | ||||
Balance at Aug. 04, 2018 | 47,473,623 | $ 536,491 | 10,670,407 | 48,788,839 | 361,677 | (12,883,791) |
Balance, shares at Aug. 04, 2018 | 3,873,731 | |||||
Balance at Nov. 03, 2018 | 49,066,501 | $ 536,491 | 10,670,848 | 50,352,546 | 390,407 | (12,883,791) |
Balance, shares at Nov. 03, 2018 | 3,873,731 | |||||
Stock-based compensation | 750 | 750 | ||||
Unrealized investment gain (loss), net of tax effect | (16,540) | (16,540) | ||||
Net income | 1,535,806 | 1,535,806 | ||||
Balance at Feb. 02, 2019 | 50,586,516 | $ 536,491 | 10,671,598 | 51,888,351 | 373,867 | (12,883,791) |
Balance, shares at Feb. 02, 2019 | 3,873,731 | |||||
Balance at Nov. 03, 2018 | $ 49,066,501 | $ 536,491 | 10,670,848 | 50,352,546 | 390,407 | (12,883,791) |
Balance, shares at Nov. 03, 2018 | 3,873,731 | |||||
Purchase of treasury stock, shares | (129,896) | |||||
Unrealized investment gain (loss), net of tax effect | $ (40,408) | |||||
Net income | 5,898,635 | |||||
Balance at Aug. 03, 2019 | 48,246,860 | 10,686,657 | 52,386,965 | 349,999 | (15,713,252) | |
Balance, shares at Aug. 03, 2019 | 3,746,570 | |||||
Balance at Feb. 02, 2019 | 50,586,516 | $ 536,491 | 10,671,598 | 51,888,351 | 373,867 | (12,883,791) |
Balance, shares at Feb. 02, 2019 | 3,873,731 | |||||
Cash dividend | (3,864,216) | (3,864,216) | ||||
Purchase of treasury stock | (302,115) | (302,115) | ||||
Purchase of treasury stock, shares | (13,703) | |||||
Stock-based compensation | 10,729 | 6,539 | 4,190 | |||
Stock-based compensation, shares | 485 | |||||
Unrealized investment gain (loss), net of tax effect | 72,252 | 72,252 | ||||
Net income | 1,819,725 | 1,819,725 | ||||
Balance at May. 04, 2019 | 48,322,893 | $ 536,491 | 10,678,137 | 49,843,861 | 446,119 | (13,181,716) |
Balance, shares at May. 04, 2019 | 3,860,513 | |||||
Purchase of treasury stock | (2,551,246) | (2,551,246) | ||||
Purchase of treasury stock, shares | (116,193) | |||||
Stock-based compensation | 1,005 | 1,005 | ||||
Unrealized investment gain (loss), net of tax effect | (96,120) | (96,120) | ||||
Exercise of employee stock options | 27,225 | 7,515 | 19,710 | |||
Exercise of employee stock options, shares | 2,250 | |||||
Net income | 2,543,104 | 2,543,103 | ||||
Balance at Aug. 03, 2019 | $ 48,246,860 | $ 10,686,657 | $ 52,386,965 | $ 349,999 | $ (15,713,252) | |
Balance, shares at Aug. 03, 2019 | 3,746,570 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) | 9 Months Ended | |
Aug. 03, 2019 | Aug. 04, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 5,898,635 | $ 3,399,925 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 109,016 | 88,764 |
Deferred income taxes | 167,576 | (456,292) |
Undistributed earnings in joint venture - Majestic 21 | (60,555) | (78,917) |
Gain on property held for sale | (880,129) | (203,512) |
Gain on disposal of property, plant and equipment | (15,242) | |
Inventory impairment | 105,000 | |
Stock-based compensation | 19,999 | 1,176 |
Decrease (increase) in: | ||
Accounts receivable | (209,985) | 1,289,309 |
Inventories | (1,799,958) | 374,815 |
Pre-owned homes | 113,697 | 258,471 |
Prepaid expenses and other current assets | (148,304) | (292,675) |
Interest receivable | (84,740) | (6,436) |
(Decrease) increase in: | ||
Accounts payable | (151,508) | (86,022) |
Accrued compensation | (100,832) | 111,774 |
Accrued expenses and other current liabilities | 594,271 | (63,577) |
Income taxes payable | 272,450 | 265,847 |
Customer deposits | (956,413) | 1,665,728 |
Net cash provided by operating activities | 2,783,220 | 6,373,378 |
Cash flows from investing activities: | ||
Purchase of property, plant and equipment | (288,424) | (595,880) |
Purchase of certificates of deposit | (4,000,000) | (2,000,000) |
Proceeds from property held for sale | 1,078,325 | 589,530 |
Collections on note receivable | 1,530,000 | |
Collections on interest receivable | 101,301 | |
Collections on mortgage notes receivable | 1,502 | 1,288 |
Collections on equipment notes receivable | 40,263 | 30,403 |
Issurance of equipment note receivable | (25,451) | |
Increase in cash surrender value of life insurance | (135,000) | (135,000) |
Net cash used in investing activities | (3,303,334) | (503,809) |
Cash flows from financing activities: | ||
Payment of cash dividend | (3,864,216) | (778,614) |
Proceeds from excerise of employee stock options | 19,710 | |
Purchase of treasury stock | (2,853,361) | (2,512,605) |
Net cash used in financing activities | (6,697,867) | (3,291,219) |
(Decrease) increase in cash and cash equivalents | (7,217,981) | 2,578,350 |
Cash and cash equivalents at beginning of year | 28,364,861 | 27,910,504 |
Cash and cash equivalents at end of quarter | 21,146,880 | 30,488,854 |
Supplemental disclosure of cash flows information: | ||
Income taxes paid | $ 1,550,000 | $ 1,230,000 |
Basis of Presentation and Accou
Basis of Presentation and Accounting Policies | 9 Months Ended |
Aug. 03, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Accounting Policies | Note 1 Basis of Presentation and Accounting Policies The accompanying unaudited condensed consolidated financial statements for the three and nine months ended August 3, 2019 have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission for Form 10-Q. The unaudited financial information included in this report includes all adjustments (consisting of normal recurring adjustments) which are, in the opinion of management, necessary to reflect a fair statement of the results for the interim periods. The results of operations for the three and nine months ended August 3, 2019 are not necessarily indicative of the results of the full fiscal year. The condensed consolidated financial statements included in this report should be read in conjunction with the financial statements and notes thereto included in the Company’s Annual Report on Form 10-K Recently Issued or Adopted Accounting Pronouncements – Under the new revenue standards, revenues are recognized when our customer obtains control of promised goods or services, in an amount that reflects the consideration which we expect to receive in exchange for those goods or services. We recognize revenues following the five step model prescribed under ASU No. 2014-09: Product revenues We sell our products to the end user or wholesale distributors. Revenues from product sales are recognized when the customer obtains control of our product, which occurs at a point in time, typically upon delivery to the customer. We expense incremental costs of obtaining a contract as and when incurred if the expected amortization period of the asset that we would have recognized is one year or less or the amount is immaterial. We treat shipping and handling costs performed after a customer obtains control of the product as a fulfillment cost. We have identified one performance obligation in our contracts with customers which is the delivery of product to our customers. The transaction price is recognized in full when we deliver the product to our customer, which is the point at which we have satisfied our performance obligation. Reserves for Discounts and Allowances Revenues from product sales are recorded net of reserves established for applicable discounts and allowances that are offered within contracts with our customers and distributors. Our process for estimating reserves established for these variable consideration components do not differ materially from our historical practices. Product revenue reserves, which are classified as a reduction in product revenues, are generally characterized in the following categories: discounts, contractual adjustments and returns. These reserves are based on estimates of the amounts earned or to be claimed on the related sales and are classified as reductions of accounts receivable (if the amount is payable to our customer) or a liability (if the amount is payable to a party other than our customer). Our estimates of reserves established for variable consideration typically utilize the most likely method and reflect our historical experience, current contractual and statutory requirements, specific known market events and trends, industry data and forecasted customer buying and payment patterns. The transaction price, which includes variable consideration reflecting the impact of options, discounts and allowances, may be subject to constraint and is included in the net sales price only to the extent that it is probable that a significant reversal of the amount of the cumulative revenues recognized will not occur in a future period. Actual amounts may ultimately differ from our estimates. If actual results vary, we adjust these estimates, which could have an effect on earnings in the period of adjustment. For additional information on our revenues, please read Note 9, Revenues by Products and Services, to these condensed consolidated financial statements. In February 2016, the FASB issued Accounting Standards Update (ASU) No. 2016-02, 2016-02). 2016-02 2016-02 right-of-use 2016-02 right-of-use |
Inventories
Inventories | 9 Months Ended |
Aug. 03, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Note 2 Inventories New home inventory is carried at the lower of cost or net realizable value. The cost of finished home inventories determined on the specific identification method is removed from inventories and recorded as a component of cost of sales at the time revenue is recognized. In addition, an allocation of depreciation and amortization is included in cost of goods sold. Under the specific identification method, if finished home inventory can be sold for a profit there is no basis to write down the inventory below the lower of cost or net realizable value. The Company acquired certain repossessed pre-owned inventory (Buy Back Inventory) in 2011 as part of an Amendment of the Finance Revenue Sharing Agreement with 21 st Other pre-owned homes are acquired (Repossessions Inventory) as a convenience to the Company’s joint venture partner, 21st Mortgage Corporation. This inventory has been repossessed by 21 st st st st st st Pre-owned homes are also taken as trade-ins on new home sales (Trade-in Inventory). This inventory is recorded at estimated actual wholesale value which is generally lower than its market value, determined on the specific identification method, plus refurbishment costs incurred to date to bring the inventory to a more saleable state. The Trade-in inventory amount is reduced where necessary on a unit specific basis by a valuation reserve which management believes results in inventory being valued at market. Other inventory costs are determined on a first-in, first-out August 3, 2019 November 3, 2018 Raw materials $ 877,248 $ 904,399 Work-in-process 112,013 113,220 Finished homes 7,964,647 6,138,985 Model home furniture and others 116,601 113,946 Inventories $ 9,070,508 $ 7,270,550 Pre-owned Buy Back $ 439,142 $ 715,748 Repossessions 1,138,851 1,155,642 Trade-in 87,239 84,874 1,665,232 1,956,265 Inventory impairment reserve (372,098 ) (549,434 ) 1,293,134 1,406,831 Less homes expected to sell in 12 months (499,463 ) (933,640 ) Pre-owned $ 793,671 $ 473,191 |
Short-term Investments
Short-term Investments | 9 Months Ended |
Aug. 03, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Short-term Investments | Note 3 Short-term Investments The following is a summary of short-term investments (available for sale): August 3, 2019 Cost Gross Gross Estimated Equity securities in a public company $ 167,930 $ 328,626 $ — $ 496,556 November 3, 2018 Cost Gross Gross Estimated Equity securities in a public company $ 167,930 $ 369,837 $ — $ 537,767 The fair values were estimated based on quoted market prices in active markets at each respective period end. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Aug. 03, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Note 4 Fair Value of Financial Instruments The carrying amount of cash and cash equivalents, accounts and notes receivable, accounts payable and accrued expenses approximates fair value because of the short maturity of those instruments. The Company accounts for the fair value of financial investments in accordance with FASB Accounting Standards Codification (ASC) No. 820 “Fair Value Measurements” (ASC 820). ASC 820 defines fair value as the price that would be received upon the sale of an asset or paid to transfer a liability (i.e. exit price) in an orderly transaction between market participants at the measurement date. ASC 820 requires disclosures that categorize assets and liabilities measured at fair value into one of three different levels depending on the assumptions (i.e. inputs) used in the valuation. Financial assets and liabilities are classified in their entirety based on the lowest level of input significant to the fair value measurement. The ASC 820 fair value hierarchy is defined as follows: • Level 1 - Valuations are based on unadjusted quoted prices in active markets for identical assets or liabilities. • Level 2 - Valuations are based on quoted prices for similar assets or liabilities in active markets, or quoted prices in markets that are not active for which significant inputs are observable, either directly or indirectly. • Level 3 - Valuations are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. Inputs reflect management’s best estimate of what market participants would use in valuing the asset or liability at the measurement date. The following tables represent the Company’s financial assets and liabilities which are carried at fair value. August 3, 2019 Level 1 Level 2 Level 3 Equity securities in a public company $ 496,556 $ — $ — November 3, 2018 Level 1 Level 2 Level 3 Equity securities in a public company $ 537,767 $ — $ — |
Sale of Property Held for Sale
Sale of Property Held for Sale | 9 Months Ended |
Aug. 03, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Sale of Property Held for Sale | Note 5 Sale of Property Held for Sale On June 28, 2019 the Company sold its former Pace retail sales center property located in Pace, Florida for total net proceeds of $1,078,325. The Company recognized a gain on the sale of this property of $864,887. |
Investment in Retirement Commun
Investment in Retirement Community Limited Partnership | 9 Months Ended |
Aug. 03, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investment in Retirement Community Limited Partnership | Note 6 Investment in Retirement Community Limited Partnership The Company has a 31.3% limited partnership interest in Walden Woods South LLC (“Walden Woods”), which owns and operates a retirement community. The Company’s investment in Walden Woods is fully impaired at August 3, 2019 and November 3, 2018. |
Stockholders' Equity and Relate
Stockholders' Equity and Related Party Transaction | 9 Months Ended |
Aug. 03, 2019 | |
Equity [Abstract] | |
Stockholders' Equity and Related Party Transaction | Note 7 Stockholders’ Equity and Related Party Transaction During the nine months ended August 3, 2019, the Company repurchased 129,896 of its common stock for per share prices ranging from $21.50 - $22.50 for an aggregate total of $2,853,361. Of these repurchased shares, 100,000 were from a related party for which the Company paid $21.95 per share. During the nine months ended August 4, 2018, the Company repurchased 123,838 shares of its common stock for per share prices ranging from $20.22 - $21.00 for an aggregate total of $2,512,605. Of these repurchased shares, 100,000 were from a related party for which the Company paid $20.22 per share. Treasury stock is recorded at cost and is presented as a reduction of stockholders’ equity in the accompanying consolidated financial statements. |
Net Income per Share
Net Income per Share | 9 Months Ended |
Aug. 03, 2019 | |
Earnings Per Share [Abstract] | |
Net Income per Share | Note 8 Net Income per Share These financial statements include “basic” and “diluted” net income per share information for all periods presented. The basic net income per share is calculated by dividing net income by the weighted-average number of shares outstanding. The diluted net income per share is calculated by dividing net income by the weighted-average number of shares outstanding, adjusted for dilutive common shares. |
Revenues by Products and Servic
Revenues by Products and Service | 9 Months Ended |
Aug. 03, 2019 | |
Segment Reporting [Abstract] | |
Revenues by Products and Service | Note 9 Revenues by Products and Service The Company operates in one business segment, which is manufactured housing and ancillary services. The Company considers there to be revenue concentration risks for distribution of its products where net product revenues exceed 10% of consolidated net product revenues. The concentration of the Company’s distribution net product revenues below may have a material adverse effect on the Company’s revenues and results of operations if sales in the respective distribution channels experience difficulties. The Company adopted the requirements of ASC 606 on November 5, 2018 using the modified retrospective method. See Note 1 – Recently Issued or Adopted Accounting Pronouncements pre-owned Three Months Ended Nine Months Ended August 3, August 4, August 3, August 4, Manufactured housing Homes sold through Company owned sales centers $ 9,807,719 $ 8,302,575 $ 28,142,636 $ 20,801,157 Homes sold to independent dealers 1,377,471 2,313,528 5,721,508 7,168,737 Homes sold through manufactured home parks 513,517 325,270 904,169 802,260 $ 11,698,707 $ 10,941,373 $ 34,768,313 $ 28,772,154 Pre-owned 14,187 433,085 590,182 1,042,542 Insurance agent commissions 72,472 73,178 209,333 201,022 Total net sales $ 11,785,366 $ 11,447,636 $ 35,567,828 $ 30,015,718 |
Subsequent Event
Subsequent Event | 9 Months Ended |
Aug. 03, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Event | Note 10 Subsequent Events The Company repurchased 82,500 $21.00 per share for an aggregate of $1,732,500. |
Basis of Presentation and Acc_2
Basis of Presentation and Accounting Policies (Policies) | 9 Months Ended |
Aug. 03, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Recently Issued or Adopted Accounting Pronouncements | Recently Issued or Adopted Accounting Pronouncements – Under the new revenue standards, revenues are recognized when our customer obtains control of promised goods or services, in an amount that reflects the consideration which we expect to receive in exchange for those goods or services. We recognize revenues following the five step model prescribed under ASU No. 2014-09: |
Product revenues | Product revenues We sell our products to the end user or wholesale distributors. Revenues from product sales are recognized when the customer obtains control of our product, which occurs at a point in time, typically upon delivery to the customer. We expense incremental costs of obtaining a contract as and when incurred if the expected amortization period of the asset that we would have recognized is one year or less or the amount is immaterial. We treat shipping and handling costs performed after a customer obtains control of the product as a fulfillment cost. We have identified one performance obligation in our contracts with customers which is the delivery of product to our customers. The transaction price is recognized in full when we deliver the product to our customer, which is the point at which we have satisfied our performance obligation. |
Reserves for Discounts and Allowances | Reserves for Discounts and Allowances Revenues from product sales are recorded net of reserves established for applicable discounts and allowances that are offered within contracts with our customers and distributors. Our process for estimating reserves established for these variable consideration components do not differ materially from our historical practices. Product revenue reserves, which are classified as a reduction in product revenues, are generally characterized in the following categories: discounts, contractual adjustments and returns. These reserves are based on estimates of the amounts earned or to be claimed on the related sales and are classified as reductions of accounts receivable (if the amount is payable to our customer) or a liability (if the amount is payable to a party other than our customer). Our estimates of reserves established for variable consideration typically utilize the most likely method and reflect our historical experience, current contractual and statutory requirements, specific known market events and trends, industry data and forecasted customer buying and payment patterns. The transaction price, which includes variable consideration reflecting the impact of options, discounts and allowances, may be subject to constraint and is included in the net sales price only to the extent that it is probable that a significant reversal of the amount of the cumulative revenues recognized will not occur in a future period. Actual amounts may ultimately differ from our estimates. If actual results vary, we adjust these estimates, which could have an effect on earnings in the period of adjustment. For additional information on our revenues, please read Note 9, Revenues by Products and Services, to these condensed consolidated financial statements. In February 2016, the FASB issued Accounting Standards Update (ASU) No. 2016-02, 2016-02). 2016-02 2016-02 right-of-use 2016-02 right-of-use |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Aug. 03, 2019 | |
Inventory Disclosure [Abstract] | |
Summary of Breakdown of Elements of Inventory | Other inventory costs are determined on a first-in, first-out August 3, 2019 November 3, 2018 Raw materials $ 877,248 $ 904,399 Work-in-process 112,013 113,220 Finished homes 7,964,647 6,138,985 Model home furniture and others 116,601 113,946 Inventories $ 9,070,508 $ 7,270,550 Pre-owned Buy Back $ 439,142 $ 715,748 Repossessions 1,138,851 1,155,642 Trade-in 87,239 84,874 1,665,232 1,956,265 Inventory impairment reserve (372,098 ) (549,434 ) 1,293,134 1,406,831 Less homes expected to sell in 12 months (499,463 ) (933,640 ) Pre-owned $ 793,671 $ 473,191 |
Short-term Investments (Tables)
Short-term Investments (Tables) | 9 Months Ended |
Aug. 03, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Short-term Investments | The following is a summary of short-term investments (available for sale): August 3, 2019 Cost Gross Gross Estimated Equity securities in a public company $ 167,930 $ 328,626 $ — $ 496,556 November 3, 2018 Cost Gross Gross Estimated Equity securities in a public company $ 167,930 $ 369,837 $ — $ 537,767 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Aug. 03, 2019 | |
Fair Value Disclosures [Abstract] | |
Summary of Assets and Liabilities Measured at Fair Value | The following tables represent the Company’s financial assets and liabilities which are carried at fair value. August 3, 2019 Level 1 Level 2 Level 3 Equity securities in a public company $ 496,556 $ — $ — November 3, 2018 Level 1 Level 2 Level 3 Equity securities in a public company $ 537,767 $ — $ — |
Revenues by Products and Serv_2
Revenues by Products and Service (Tables) | 9 Months Ended |
Aug. 03, 2019 | |
Segment Reporting [Abstract] | |
Revenues by Net Sales | Revenues by net sales from manufactured housing, pre-owned Three Months Ended Nine Months Ended August 3, August 4, August 3, August 4, Manufactured housing Homes sold through Company owned sales centers $ 9,807,719 $ 8,302,575 $ 28,142,636 $ 20,801,157 Homes sold to independent dealers 1,377,471 2,313,528 5,721,508 7,168,737 Homes sold through manufactured home parks 513,517 325,270 904,169 802,260 $ 11,698,707 $ 10,941,373 $ 34,768,313 $ 28,772,154 Pre-owned 14,187 433,085 590,182 1,042,542 Insurance agent commissions 72,472 73,178 209,333 201,022 Total net sales $ 11,785,366 $ 11,447,636 $ 35,567,828 $ 30,015,718 |
Inventories - Summary of Breakd
Inventories - Summary of Breakdown of Elements of Inventory (Detail) - USD ($) | Aug. 03, 2019 | Nov. 03, 2018 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 877,248 | $ 904,399 |
Work-in-process | 112,013 | 113,220 |
Finished homes | 7,964,647 | 6,138,985 |
Model home furniture and others | 116,601 | 113,946 |
Inventories | 9,070,508 | 7,270,550 |
Pre Owned Homes [Abstract] | ||
Buy Back | 439,142 | 715,748 |
Repossessions | 1,138,851 | 1,155,642 |
Trade-in | 87,239 | 84,874 |
Pre-owned homes | 1,665,232 | 1,956,265 |
Inventory impairment reserve | (372,098) | (549,434) |
Pre-owned homes, net | 1,293,134 | 1,406,831 |
Less homes expected to sell in 12 months | (499,463) | (933,640) |
Pre-owned homes, long-term | $ 793,671 | $ 473,191 |
Short-term Investments - Summar
Short-term Investments - Summary of Short-term Investments (Detail) - USD ($) | Aug. 03, 2019 | Nov. 03, 2018 |
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale Securities, Amortized Cost | $ 167,930 | $ 167,930 |
Available-for-sale Securities, Gross Unrealized Gains | 328,626 | 369,837 |
Available-for-sale Securities, Gross Unrealized Losses | 0 | 0 |
Available-for-sale Securities, Estimated Fair Value | $ 496,556 | $ 537,767 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Summary of Assets and Liabilities Measured at Fair Value on a Recurring Basis (Detail) - USD ($) | Aug. 03, 2019 | Nov. 03, 2018 |
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Equity securities in a public company | $ 496,556 | $ 537,767 |
Level 1 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Equity securities in a public company | $ 496,556 | $ 537,767 |
Sale of Property Held for Sale
Sale of Property Held for Sale - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | |
Aug. 03, 2019 | Aug. 03, 2019 | Aug. 04, 2018 | |
Proceeds from sale of property held-for-sale | $ 1,078,325 | $ 589,530 | |
Gain on sale of assets | $ 864,887 | $ 880,129 | $ 203,512 |
Investment in Retirement Comm_2
Investment in Retirement Community Limited Partnership - Additional Information (Detail) | Aug. 03, 2019 |
Walden Woods South LLC ("Walden Woods") [Member] | |
Investment [Line Items] | |
Percentage of limited partnership ownership interest | 31.30% |
Stockholders' Equity and Rela_2
Stockholders' Equity and Related Party Transaction - Additional Information (Detail) - USD ($) | 9 Months Ended | |
Aug. 03, 2019 | Aug. 04, 2018 | |
Repurchased shares of common stock | 129,896 | 123,838 |
Aggregate amount of treasury stock | $ 2,853,361 | $ 2,512,605 |
Related Party [Member] | ||
Repurchased shares of common stock | 100,000 | 100,000 |
Purchase price of common stock | $ 21.95 | $ 20.22 |
Minimum [Member] | ||
Purchase price of common stock | 21.50 | 20.22 |
Maximum [Member] | ||
Purchase price of common stock | $ 22.50 | $ 21 |
Revenues by Products and Serv_3
Revenues by Products and Service - Revenues by Net Sales (Additional Information (Detail)) | 9 Months Ended |
Aug. 03, 2019 | |
Revenue Concentration Risks Recognation terms | The Company considers there to be revenue concentration risks for distribution of its products where net product revenues exceed 10% of consolidated net product revenues. |
Revenues by Products and Serv_4
Revenues by Products and Service - Revenues by Net Sales (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Aug. 03, 2019 | Aug. 04, 2018 | Aug. 03, 2019 | Aug. 04, 2018 | |
Sales Information [Line Items] | ||||
Total net sales | $ 11,785,366 | $ 11,447,636 | $ 35,567,828 | $ 30,015,718 |
Manufactured Housing [Member] | ||||
Sales Information [Line Items] | ||||
Total net sales | 11,698,707 | 10,941,373 | 34,768,313 | 28,772,154 |
Manufactured Housing [Member] | Homes sold through Company owned sales centers | ||||
Sales Information [Line Items] | ||||
Total net sales | 9,807,719 | 8,302,575 | 28,142,636 | 20,801,157 |
Manufactured Housing [Member] | Homes sold to independent dealers | ||||
Sales Information [Line Items] | ||||
Total net sales | 1,377,471 | 2,313,528 | 5,721,508 | 7,168,737 |
Manufactured Housing [Member] | Homes sold through manufactured home parks | ||||
Sales Information [Line Items] | ||||
Total net sales | 513,517 | 325,270 | 904,169 | 802,260 |
Pre-Owned Homes [Member] | ||||
Sales Information [Line Items] | ||||
Total net sales | 14,187 | 433,085 | 590,182 | 1,042,542 |
Insurance Agent Commissions [Member] | ||||
Sales Information [Line Items] | ||||
Total net sales | $ 72,472 | $ 73,178 | $ 209,333 | $ 201,022 |
Subsequent Event - Additional I
Subsequent Event - Additional Information (Detail) - USD ($) | Aug. 07, 2019 | Aug. 03, 2019 | Aug. 04, 2018 |
Subsequent Event [Line Items] | |||
Repurchased shares of common stock | 129,896 | 123,838 | |
Aggregate amount of treasury stock | $ 2,853,361 | $ 2,512,605 | |
Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Repurchased shares of common stock | 82,500 | ||
Purchase price of common stock | $ 21 | ||
Aggregate amount of treasury stock | $ 1,732,500 |