Cover Page
Cover Page - shares | 9 Months Ended | |
Aug. 01, 2020 | Sep. 14, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Aug. 1, 2020 | |
Entity Registrant Name | NOBILITY HOMES INC | |
Entity Central Index Key | 0000072205 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | NOBH | |
Current Fiscal Year End Date | --11-03 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 3,631,196 | |
Entity File Number | 000-06506 | |
Entity Incorporation, State or Country Code | FL | |
Entity Address, Address Line One | 3741 S.W. 7th Street | |
Entity Address, City or Town | Ocala | |
Entity Address, State or Province | FL | |
Entity Address, Postal Zip Code | 34474 | |
City Area Code | 352 | |
Local Phone Number | 732-5157 | |
Title of 12(b) Security | Common Stock | |
Entity Interactive Data Current | Yes |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Aug. 01, 2020 | Nov. 02, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 20,911,248 | $ 22,533,965 |
Certificates of Deposit | 8,192,314 | 10,153,575 |
Short-term investments | 355,315 | 521,283 |
Accounts receivable-trade | 713,358 | 1,351,838 |
Note receivable | 49,089 | 83,231 |
Mortgage notes receivable | 19,742 | 17,896 |
Inventories | 10,637,620 | 10,616,778 |
Pre-owned homes, net | 253,060 | 331,103 |
Prepaid expenses and other current assets | 1,062,244 | 1,217,762 |
Total current assets | 42,193,990 | 46,827,431 |
Property, plant and equipment, net | 5,156,732 | 5,005,644 |
Pre-owned homes, net | 1,271,768 | 808,128 |
Note receivable, less current portion | 11,693 | 43,769 |
Mortgage notes receivable, less current portion | 228,706 | 232,148 |
Other investments | 1,710,398 | 1,649,273 |
Deferred income taxes | 27,267 | 80,405 |
Operating lease right of use assets | 727,180 | |
Cash surrender value of life insurance | 3,761,974 | 3,617,974 |
Other assets | 156,287 | 156,287 |
Total assets | 55,245,995 | 58,421,059 |
Current liabilities: | ||
Accounts payable | 653,332 | 1,111,216 |
Accrued compensation | 451,891 | 748,626 |
Accrued expenses and other current liabilities | 1,172,806 | 2,055,952 |
Income taxes payable | 2,016,132 | |
Operating lease obligation | 21,381 | |
Customer deposits | 3,091,885 | 3,022,818 |
Total current liabilities | 5,391,295 | 8,954,744 |
Operating lease obligation, less current portion | 787,745 | |
Total liabilities | 6,179,040 | 8,954,744 |
Commitments and contingencies | ||
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; 3,631,196 and 3,664,070 outstanding, respectively | 536,491 | 536,491 |
Additional paid in capital | 10,693,648 | 10,687,662 |
Retained earnings | 56,102,636 | 55,298,750 |
Accumulated other comprehensive income | 389,164 | |
Less treasury stock at cost, 1,733,711 shares in 2020 and 1,700,837 shares in 2019 | (18,265,820) | (17,445,752) |
Total stockholders' equity | 49,066,955 | 49,466,315 |
Total liabilities and stockholders' equity | $ 55,245,995 | $ 58,421,059 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Aug. 01, 2020 | Nov. 02, 2019 |
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 | 3,631,196 | 3,664,070 |
Treasury stock, shares | 1,733,711 | 1,700,837 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income and Comprehensive Income - USD ($) | 3 Months Ended | 9 Months Ended | ||
Aug. 01, 2020 | Aug. 03, 2019 | Aug. 01, 2020 | Aug. 03, 2019 | |
Income Statement [Abstract] | ||||
Net sales | $ 8,800,410 | $ 11,785,366 | $ 28,446,764 | $ 35,567,828 |
Cost of sales | (6,361,500) | (8,139,910) | (19,980,510) | (25,506,957) |
Gross profit | 2,438,910 | 3,645,456 | 8,466,254 | 10,060,871 |
Selling, general and administrative expenses | (1,107,850) | (1,352,315) | (3,586,622) | (3,860,173) |
Operating income | 1,331,060 | 2,293,141 | 4,879,632 | 6,200,698 |
Other income (loss): | ||||
Interest income | 53,209 | 134,526 | 239,365 | 431,995 |
Undistributed earnings in joint venture - Majestic 21 | 20,855 | 19,800 | 61,125 | 60,555 |
Proceeds received under escrow arrangement | 64,053 | 76,734 | 336,447 | 289,341 |
Market value of equity investment | 21,475 | (159,051) | ||
Gain on sale of assets | 32,041 | 864,887 | 32,041 | 880,129 |
Miscellaneous | 12,910 | 10,834 | 32,504 | 33,714 |
Total other income | 204,543 | 1,106,781 | 542,431 | 1,695,734 |
Income before provision for income taxes | 1,535,603 | 3,399,922 | 5,422,063 | 7,896,432 |
Income tax expense | (375,465) | (856,818) | (1,311,780) | (1,997,797) |
Net income | 1,160,138 | 2,543,104 | 4,110,283 | 5,898,635 |
Other comprehensive income (loss) | ||||
Unrealized investment income net of tax effect | (96,120) | (40,408) | ||
Comprehensive income | $ 1,160,138 | $ 2,446,984 | $ 4,110,283 | $ 5,858,227 |
Weighted average number of shares outstanding: | ||||
Basic | 3,631,089 | 3,807,357 | 3,641,048 | 3,848,936 |
Diluted | 3,632,420 | 3,808,617 | 3,642,397 | 3,850,169 |
Net income per share: | ||||
Basic | $ 0.32 | $ 0.67 | $ 1.13 | $ 1.53 |
Diluted | $ 0.32 | $ 0.67 | $ 1.13 | $ 1.53 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Changes in Stockholders' Equity - USD ($) | Total | Previously reported [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | Common Stock [Member] | Common Stock [Member]Previously reported [Member] | Additional Paid-in Capital [Member] | Additional Paid-in Capital [Member]Previously reported [Member] | Retained Earnings [Member] | Retained Earnings [Member]Previously reported [Member] | Retained Earnings [Member]Cumulative Effect, Period of Adoption, Adjustment [Member] | Accumulated Other Comprehensive Income [Member] | Accumulated Other Comprehensive Income [Member]Previously reported [Member] | Accumulated Other Comprehensive Income [Member]Cumulative Effect, Period of Adoption, Adjustment [Member] | Treasury Stock [Member] | Treasury Stock [Member]Previously reported [Member] |
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 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 | ||||||||||||||
Unrealized investment loss, net of tax effect | (40,408) | ||||||||||||||
Net income | 5,898,635 | ||||||||||||||
Balance at Aug. 03, 2019 | 48,246,860 | $ 536,491 | 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 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 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 | $ 536,491 | 10,686,657 | 52,386,965 | $ 349,999 | (15,713,252) | |||||||||
Balance, shares at Aug. 03, 2019 | 3,746,570 | ||||||||||||||
Balance at Nov. 01, 2019 | $ 536,491 | ||||||||||||||
Adoption of ASU 2016 (Adoption of ASU 2016-01 [Member]) at Feb. 01, 2020 | $ 389,164 | $ (389,164) | |||||||||||||
Adoption of ASU 2016 (Adoption of ASU 2016-02 [Member]) at Feb. 01, 2020 | $ (64,591) | (64,591) | |||||||||||||
Purchase of treasury stock | (345,600) | (345,600) | |||||||||||||
Purchase of treasury stock, shares | (14,400) | ||||||||||||||
Balance at Feb. 01, 2020 | 50,457,171 | $ 536,491 | 10,688,568 | 57,023,464 | (17,791,352) | ||||||||||
Balance (Adjustments for New Accounting Pronouncement [Member]) at Feb. 01, 2020 | 49,401,724 | 10,687,662 | 55,623,323 | (17,445,752) | |||||||||||
Balance, shares at Feb. 01, 2020 | 3,649,670 | ||||||||||||||
Balance, shares (Adjustments for New Accounting Pronouncement [Member]) at Feb. 01, 2020 | 3,664,070 | ||||||||||||||
Balance at Nov. 02, 2019 | 49,466,315 | $ 49,466,315 | $ 10,687,662 | $ 55,298,750 | $ 389,164 | $ (17,445,752) | |||||||||
Balance (Adjustments for New Accounting Pronouncement [Member]) at Nov. 02, 2019 | $ 536,491 | ||||||||||||||
Balance, shares at Nov. 02, 2019 | 3,664,070 | ||||||||||||||
Adoption of ASU 2016 (Adoption of ASU 2016-01 [Member]) at Feb. 01, 2020 | 389,164 | $ (389,164) | |||||||||||||
Adoption of ASU 2016 (Adoption of ASU 2016-02 [Member]) at Feb. 01, 2020 | $ (64,591) | $ (64,591) | |||||||||||||
Stock-based compensation | 906 | 906 | |||||||||||||
Net income | 1,400,141 | 1,400,141 | |||||||||||||
Balance at Feb. 01, 2020 | 50,457,171 | $ 536,491 | 10,688,568 | 57,023,464 | (17,791,352) | ||||||||||
Balance (Adjustments for New Accounting Pronouncement [Member]) at Feb. 01, 2020 | 49,401,724 | 10,687,662 | 55,623,323 | (17,445,752) | |||||||||||
Balance, shares at Feb. 01, 2020 | 3,649,670 | ||||||||||||||
Balance, shares (Adjustments for New Accounting Pronouncement [Member]) at Feb. 01, 2020 | 3,664,070 | ||||||||||||||
Balance at Nov. 02, 2019 | 49,466,315 | $ 49,466,315 | $ 10,687,662 | $ 55,298,750 | $ 389,164 | $ (17,445,752) | |||||||||
Balance (Adjustments for New Accounting Pronouncement [Member]) at Nov. 02, 2019 | $ 536,491 | ||||||||||||||
Balance, shares at Nov. 02, 2019 | 3,664,070 | ||||||||||||||
Net income | 4,110,283 | ||||||||||||||
Balance at Aug. 01, 2020 | 49,066,955 | $ 536,491 | 10,693,648 | 56,102,636 | (18,265,820) | ||||||||||
Balance, shares at Aug. 01, 2020 | 3,631,196 | ||||||||||||||
Balance at Feb. 01, 2020 | 50,457,171 | $ 536,491 | 10,688,568 | 57,023,464 | (17,791,352) | ||||||||||
Balance (Adjustments for New Accounting Pronouncement [Member]) at Feb. 01, 2020 | 49,401,724 | 10,687,662 | 55,623,323 | (17,445,752) | |||||||||||
Balance, shares at Feb. 01, 2020 | 3,649,670 | ||||||||||||||
Cash dividend | (3,630,970) | (3,630,970) | |||||||||||||
Purchase of treasury stock | (476,850) | (476,850) | |||||||||||||
Purchase of treasury stock, shares | (18,700) | ||||||||||||||
Stock-based compensation | 906 | 906 | |||||||||||||
Net income | 1,550,004 | 1,550,004 | |||||||||||||
Balance at May. 04, 2020 | 47,900,261 | $ 536,491 | 10,689,474 | 54,942,498 | (18,268,202) | ||||||||||
Balance, shares at May. 04, 2020 | 3,630,970 | ||||||||||||||
Stock-based compensation | 6,556 | 4,174 | 2,382 | ||||||||||||
Stock-based compensation, shares | 226 | ||||||||||||||
Net income | 1,160,138 | 1,160,138 | |||||||||||||
Balance at Aug. 01, 2020 | $ 49,066,955 | $ 536,491 | $ 10,693,648 | $ 56,102,636 | $ (18,265,820) | ||||||||||
Balance, shares at Aug. 01, 2020 | 3,631,196 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) | 9 Months Ended | |
Aug. 01, 2020 | Aug. 03, 2019 | |
Cash flows from operating activities: | ||
Net income | $ 4,110,283 | $ 5,898,635 |
Adjustments to reconcile net income to net cash provide by operating activities: | ||
Depreciation | 118,179 | 109,016 |
Undistributed earnings in joint venture—Majestic 21 | (61,125) | (60,555) |
Gain on property held for sale | (32,041) | (880,129) |
Gain on disposal of property, plant and equipment | (32,041) | (15,242) |
Decrease in fair market value of equity investments | 159,051 | |
Stock-based compensation | 8,368 | 19,999 |
Amortization of operating lease right of use assets | 26,862 | |
Decrease (Increase) in: | ||
Accounts receivable | 638,480 | (209,985) |
Inventories | (20,842) | (1,799,958) |
Pre-owned homes | (385,597) | 113,697 |
Prepaid expenses and other current assets | 155,518 | (148,304) |
Deferred income taxes | 60,055 | 167,576 |
Interest receivable | (130,097) | (84,740) |
(Decrease) increase in: | ||
Accounts payable | (457,884) | (151,508) |
Accrued compensation | (296,735) | (100,832) |
Accrued expenses and other current liabilities | (883,146) | 594,271 |
Income taxes payable | (2,016,132) | 272,450 |
Customer deposits | 69,067 | (956,413) |
Net cash provide by operating activities | 1,062,264 | 2,783,220 |
Cash flows from investing activities: | ||
Purchase of property, plant and equipment | (270,365) | (288,424) |
Purchase of certificates of deposit | (20,000) | (4,000,000) |
Proceeds from certicates of deposit | 2,024,000 | |
Proceeds from property held for sale | 1,078,325 | |
Proceeds from disposal of property, plant and equipment | 33,139 | |
Collections on interest receivable | 87,358 | |
Collections on mortgage notes receivable | 1,596 | 1,502 |
Collections on equipment and other notes receivable | 66,218 | 40,263 |
Increase in cash surrender value of life insurance | (144,000) | (135,000) |
Net cash provided by (used in) investing activities | 1,777,946 | (3,303,334) |
Cash flows from financing activities: | ||
Payment of cash dividend | (3,630,970) | (3,864,216) |
Proceeds from excerise of employee stock options | 19,710 | |
Purchase of treasury stock | (822,450) | (2,853,361) |
Reduction of operating lease obligation | (9,507) | |
Net cash used in financing activities | (4,462,927) | (6,697,867) |
Decrease in cash and cash equivalents | (1,622,717) | (7,217,981) |
Cash and cash equivalents at beginning of year | 22,533,965 | 28,364,861 |
Cash and cash equivalents at end of quarter | 20,911,248 | 21,146,880 |
Supplemental disclosure of cash flows information: | ||
Income taxes paid | $ 3,368,000 | $ 1,550,000 |
Basis of Presentation and Accou
Basis of Presentation and Accounting Policies | 9 Months Ended |
Aug. 01, 2020 | |
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 financial statements for the three and nine months ended August 1, 2020 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 1, 2020 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 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 In January 2016, the FASB issued ASU No. 2016-01, 2016-01 |
Inventories
Inventories | 9 Months Ended |
Aug. 01, 2020 | |
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 st Other pre-owned st st st st st st Inventory held at consignment locations by affiliated entities is included in the Company’s inventory on the Company’s condensed consolidated balance sheets. Consigned inventory was $1,784,688 and $1,540,949 as of August 1, 2020 and November 2, 2019, respectively. Pre-owned trade-ins (Trade-in Trade-in Other inventory costs are determined on a first-in, first-out August 1, November 2, 2020 2019 Raw materials $ 947,610 $ 941,206 Work-in-process 98,265 125,371 Inventory consigned to affiliated entities 1,784,688 1,540,949 Finished homes 7,632,876 7,888,879 Model home furniture 174,181 120,372 Inventories $ 10,637,620 $ 10,616,777 Pre-owned $ 1,694,645 $ 1,311,626 Inventory impairment reserve (169,817 ) (172,395 ) 1,524,828 1,139,231 Less homes expected to sell in 12 months (253,060 ) (331,103 ) Pre-owned $ 1,271,768 $ 808,128 |
Short-term Investments
Short-term Investments | 9 Months Ended |
Aug. 01, 2020 | |
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 1, 2020 Cost Gross Gross Estimated Equity securities in a public company $ 167,930 $ 187,386 $ — $ 355,316 November 2, 2019 Cost Gross Gross Estimated Equity securities in a public company $ 167,930 $ 353,353 $ — $ 521,283 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. 01, 2020 | |
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 1, 2020 Level 1 Level 2 Level 3 Equity securities in a public company $ 355,316 $ — $ — November 2, 2019 Level 1 Level 2 Level 3 Equity securities in a public company $ 521,283 $ — $ — |
Net Income per Share
Net Income per Share | 9 Months Ended |
Aug. 01, 2020 | |
Earnings Per Share [Abstract] | |
Net Income per Share | Note 5 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. 01, 2020 | |
Segment Reporting [Abstract] | |
Revenues by Products and Service | Note 6 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. Revenues by net sales from manufactured housing, pre-owned Three Months Ended Nine Months Ended August 1, August 3, August 1, August 3, 2020 2019 2020 2019 Manufactured housing Homes sold through Company owned sales centers $ 6,252,906 $ 9,807,719 $ 20,874,755 $ 28,142,636 Homes sold to independent dealers 1,998,720 1,377,471 6,260,268 5,721,508 Homes sold through manufactured home parks 380,875 513,517 845,634 904,169 $ 8,632,501 $ 11,698,707 $ 27,980,657 $ 34,768,313 Pre-owned 95,011 14,187 253,689 590,182 Insurance agent commissions 72,898 72,472 212,418 209,333 Total net sales $ 8,800,410 $ 11,785,366 $ 28,446,764 $ 35,567,828 |
Operating Leases
Operating Leases | 9 Months Ended |
Aug. 01, 2020 | |
Leases [Abstract] | |
Operating Leases | Note 7 Operating Leases The Company leases the property for several Prestige retail sales centers from various unrelated entities under operating lease agreements expiring through December 2020. The Company also leases certain equipment under unrelated operating leases. These leases have varying renewal options. On November 3, 2019, the Company adopted ASC Topic 842 using the modified retrospective method applied to leases that were in place as of November 3, 2019. Results for reporting periods beginning after November 3, 2019 are presented under Topic 842, while prior period amounts are not adjusted and continue to be reported in accordance with our historic accounting under Topic 840. The Company elected the package of practical expedients permitted under the transition guidance, which allows for the historical lease classification to be carried forward, the Company’s assessments on whether a contract is or contains a lease, and the Company’s initial direct costs for any leases that exist prior to adoption of the new standard. The Company also elected the short-term lease recognition exemption for all leases that qualify. To determine the present value of minimum future lease payments for operating leases at November 3, 2019, the Company was required to estimate a rate of interest that it would have to pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment (the “incremental borrowing rate” or “IBR”). The Company determined the appropriate IBR by identifying a reference rate and making adjustments that take into consideration financing options and certain lease-specific circumstances. For the reference rate, the Company used mortgage interest rates for similar terms. Right of use assets are included as a non-current Minimum rental payments under operating leases are recognized on a straight-line basis over the term of the lease. Individual components of the total lease cost incurred by the Company in the amount of $49,046 and $153,235 for the three and nine months ended August 1, 2020, respectively. The amount of future minimum lease payments under operating are as follows: Operating Lease Undiscounted future minimum lease payments: 2020 (3 Months Remaining) $ 14,892 2021 63,117 2022 68,401 2023 74,322 2024 80,955 Thereafter 543,361 Total 845,048 Amount representing imputed interest (35,922 ) Total operating lease liability 809,126 Current portion of operating lease liability (21,381 ) Operating lease liability, non-current $ 787,745 |
Paycheck Protection Program Loa
Paycheck Protection Program Loan | 9 Months Ended |
Aug. 01, 2020 | |
Debt Disclosure [Abstract] | |
Paycheck Protection Program Loan | Note 8 Paycheck Protection Program Loan During the second quarter of 2020, the Company applied for and received funding in the amount of approximately $1,750,000 under the CARES Act and the Paycheck Protection Program (the “PPP”). The Company promptly returned the funds, as management determined that the loan was not necessary to support its ongoing operations. |
Basis of Presentation and Acc_2
Basis of Presentation and Accounting Policies (Policies) | 9 Months Ended |
Aug. 01, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Recently Issued or Adopted Accounting Pronouncements | 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 In January 2016, the FASB issued ASU No. 2016-01, 2016-01 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Aug. 01, 2020 | |
Inventory Disclosure [Abstract] | |
Summary of Breakdown of Elements of Inventory | Other inventory costs are determined on a first-in, first-out August 1, November 2, 2020 2019 Raw materials $ 947,610 $ 941,206 Work-in-process 98,265 125,371 Inventory consigned to affiliated entities 1,784,688 1,540,949 Finished homes 7,632,876 7,888,879 Model home furniture 174,181 120,372 Inventories $ 10,637,620 $ 10,616,777 Pre-owned $ 1,694,645 $ 1,311,626 Inventory impairment reserve (169,817 ) (172,395 ) 1,524,828 1,139,231 Less homes expected to sell in 12 months (253,060 ) (331,103 ) Pre-owned $ 1,271,768 $ 808,128 |
Short-term Investments (Tables)
Short-term Investments (Tables) | 9 Months Ended |
Aug. 01, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Short-term Investments | The following is a summary of short-term investments (available for sale): August 1, 2020 Cost Gross Gross Estimated Equity securities in a public company $ 167,930 $ 187,386 $ — $ 355,316 November 2, 2019 Cost Gross Gross Estimated Equity securities in a public company $ 167,930 $ 353,353 $ — $ 521,283 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Aug. 01, 2020 | |
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 1, 2020 Level 1 Level 2 Level 3 Equity securities in a public company $ 355,316 $ — $ — November 2, 2019 Level 1 Level 2 Level 3 Equity securities in a public company $ 521,283 $ — $ — |
Revenues by Products and Serv_2
Revenues by Products and Service (Tables) | 9 Months Ended |
Aug. 01, 2020 | |
Segment Reporting [Abstract] | |
Revenues by Net Sales | Revenues by net sales from manufactured housing, pre-owned Three Months Ended Nine Months Ended August 1, August 3, August 1, August 3, 2020 2019 2020 2019 Manufactured housing Homes sold through Company owned sales centers $ 6,252,906 $ 9,807,719 $ 20,874,755 $ 28,142,636 Homes sold to independent dealers 1,998,720 1,377,471 6,260,268 5,721,508 Homes sold through manufactured home parks 380,875 513,517 845,634 904,169 $ 8,632,501 $ 11,698,707 $ 27,980,657 $ 34,768,313 Pre-owned 95,011 14,187 253,689 590,182 Insurance agent commissions 72,898 72,472 212,418 209,333 Total net sales $ 8,800,410 $ 11,785,366 $ 28,446,764 $ 35,567,828 |
Operating Leases (Table)
Operating Leases (Table) | 9 Months Ended |
Aug. 01, 2020 | |
Leases [Abstract] | |
Schedule of future minimum rental payments for operating leases | The amount of future minimum lease payments under operating are as follows: Operating Lease Undiscounted future minimum lease payments: 2020 (3 Months Remaining) $ 14,892 2021 63,117 2022 68,401 2023 74,322 2024 80,955 Thereafter 543,361 Total 845,048 Amount representing imputed interest (35,922 ) Total operating lease liability 809,126 Current portion of operating lease liability (21,381 ) Operating lease liability, non-current $ 787,745 |
Inventories - Additional Inform
Inventories - Additional Information (Detail) - USD ($) | Aug. 01, 2020 | Nov. 02, 2019 |
Inventory Disclosure [Abstract] | ||
Inventory Consigned To Affiliated Entities | $ 1,784,688 | $ 1,540,949 |
Inventories - Summary of Breakd
Inventories - Summary of Breakdown of Elements of Inventory (Detail) - USD ($) | Aug. 01, 2020 | Nov. 02, 2019 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 947,610 | $ 941,206 |
Work-in-process | 98,265 | 125,371 |
Inventory consigned to affiliated entities | 1,784,688 | 1,540,949 |
Finished homes | 7,632,876 | 7,888,879 |
Model home furniture | 174,181 | 120,372 |
Inventories | 10,637,620 | 10,616,778 |
Pre-owned homes | 1,694,645 | 1,311,626 |
Inventory impairment reserve | (169,817) | (172,395) |
Pre-owned homes, net | 1,524,828 | 1,139,231 |
Less homes expected to sell in 12 months | (253,060) | (331,103) |
Pre-owned homes, long-term | $ 1,271,768 | $ 808,128 |
Short-term Investments - Summar
Short-term Investments - Summary of Short-term Investments (Detail) - USD ($) | Aug. 01, 2020 | Nov. 02, 2019 |
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale Securities, Amortized Cost | $ 167,930 | $ 167,930 |
Available-for-sale Securities, Gross Unrealized Gains | 187,386 | 353,353 |
Available-for-sale Securities, Gross Unrealized Losses | ||
Available-for-sale Securities, Estimated Fair Value | $ 355,315 | $ 521,283 |
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. 01, 2020 | Nov. 02, 2019 |
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Equity securities in a public company | $ 355,315 | $ 521,283 |
Level 1 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Equity securities in a public company | $ 355,316 | $ 521,283 |
Revenues by Products and Serv_3
Revenues by Products and Service - Revenues by Net Sales - Additional Information (Detail) | 9 Months Ended |
Aug. 01, 2020 | |
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. 01, 2020 | Aug. 03, 2019 | Aug. 01, 2020 | Aug. 03, 2019 | |
Sales Information [Line Items] | ||||
Total net sales | $ 8,800,410 | $ 11,785,366 | $ 28,446,764 | $ 35,567,828 |
Manufactured Housing [Member] | ||||
Sales Information [Line Items] | ||||
Total net sales | 8,632,501 | 11,698,707 | 27,980,657 | 34,768,313 |
Manufactured Housing [Member] | Homes sold through Company owned sales centers | ||||
Sales Information [Line Items] | ||||
Total net sales | 6,252,906 | 9,807,719 | 20,874,755 | 28,142,636 |
Manufactured Housing [Member] | Homes sold to independent dealers | ||||
Sales Information [Line Items] | ||||
Total net sales | 1,998,720 | 1,377,471 | 6,260,268 | 5,721,508 |
Manufactured Housing [Member] | Homes sold through manufactured home parks | ||||
Sales Information [Line Items] | ||||
Total net sales | 380,875 | 513,517 | 845,634 | 904,169 |
Pre-Owned Homes [Member] | ||||
Sales Information [Line Items] | ||||
Total net sales | 95,011 | 14,187 | 253,689 | 590,182 |
Insurance Agent Commissions [Member] | ||||
Sales Information [Line Items] | ||||
Total net sales | $ 72,898 | $ 72,472 | $ 212,418 | $ 209,333 |
Operating Leases - Additional I
Operating Leases - Additional Information (Detail) | 3 Months Ended | 9 Months Ended |
Aug. 01, 2020USD ($) | Aug. 01, 2020USD ($) | |
Leases [Abstract] | ||
Operating lease right of use assets | $ 727,180 | $ 727,180 |
Lease cost | $ 49,046 | $ 153,235 |
Operating Leases - Summary of f
Operating Leases - Summary of future minimum lease payments (Detail) | Aug. 01, 2020USD ($) |
Leases [Abstract] | |
2020 (3 months remaining) | $ 14,892 |
2021 | 63,117 |
2022 | 68,401 |
2023 | 74,322 |
2024 | 80,955 |
Thereafter | 543,361 |
Total | 845,048 |
Amount representing imputed interest | (35,922) |
Total operating lease liability | 809,126 |
Current portion of operating lease liability | (21,381) |
Operating lease liability, non-current | $ 787,745 |
Paycheck Protection Program L_2
Paycheck Protection Program Loan - Additional Information (Detail) | 3 Months Ended |
May 02, 2020USD ($) | |
Paycheck protection program loan [Member] | |
Proceeds from lines of credit | $ 1,750,000 |