Cover Page
Cover Page | 3 Months Ended |
Feb. 03, 2024 shares | |
Cover [Abstract] | |
Document Type | 10-Q |
Document Transition Report | false |
Document Quarterly Report | true |
Amendment Flag | false |
Document Period End Date | Feb. 03, 2024 |
Entity Registrant Name | NOBILITY HOMES, INC. |
Entity Central Index Key | 0000072205 |
Document Fiscal Year Focus | 2024 |
Document Fiscal Period Focus | Q1 |
Trading Symbol | NOBH |
Current Fiscal Year End Date | --11-05 |
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 | 3,268,829 |
Securities Act 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 |
Entity Tax Identification Number | 59-1166102 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Feb. 03, 2024 | Nov. 04, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 15,142,033 | $ 13,879,358 |
Certificates of deposit | 11,712,706 | 10,204,287 |
Short-term investments at fair value | 578,698 | 527,899 |
Accounts receivable - trade | 2,269,360 | 2,864,808 |
Mortgage notes receivable | 4,480 | 4,391 |
Inventories | 20,061,646 | 21,518,098 |
Prepaid expenses and other current assets | 1,662,231 | 1,733,179 |
Total current assets | 51,431,154 | 50,732,020 |
Property, plant and equipment, net | 8,352,165 | 8,268,976 |
Mortgage notes receivable, less current portion | 142,628 | 142,761 |
Other investments | 374,484 | 1,953,199 |
Property held for resale | 26,590 | 26,590 |
Deferred income taxes | 90,274 | 90,274 |
Cash surrender value of life insurance | 4,375,684 | 4,331,659 |
Other assets | 156,287 | 156,287 |
Total assets | 64,949,266 | 65,701,766 |
Current liabilities: | ||
Accounts payable | 684,162 | 819,143 |
Accrued compensation | 978,865 | 992,622 |
Accrued expenses and other current liabilities | 1,774,322 | 1,809,335 |
Income taxes payable | 771,353 | 661,261 |
Customer deposits | 5,652,609 | 8,703,107 |
Total current liabilities | 9,861,311 | 12,985,468 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Preferred stock, $.10 par value, 500,000 shares authorized; none issued and outstanding | 0 | 0 |
Common stock, $.10 par value, 10,000,000 shares authorized; 5,364,907 shares issued; 3,269,829 and 3,269,075 shares outstanding, respectively | 536,491 | 536,491 |
Additional paid in capital | 11,001,701 | 10,964,985 |
Retained earnings | 73,308,201 | 70,969,764 |
Less treasury stock at cost, 2,096,078 and 2,095,832 shares, respectively | (29,758,438) | (29,754,942) |
Total stockholders' equity | 55,087,955 | 52,716,298 |
Total liabilities and stockholders' equity | $ 64,949,266 | $ 65,701,766 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Feb. 03, 2024 | Nov. 04, 2023 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.1 | $ 0.1 |
Preferred stock, shares authorized | 500,000 | 500,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.1 | $ 0.1 |
Common stock, shares authorized | 10,000,000 | 10,000,000 |
Common stock, shares issued | 5,364,907 | 5,364,907 |
Common Stock, shares outstanding | 3,268,829 | 3,269,075 |
Treasury Stock, Shares | 2,096,078 | 2,095,832 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) | 3 Months Ended | |
Feb. 03, 2024 | Feb. 04, 2023 | |
Income Statement [Abstract] | ||
Net sales | $ 14,767,998 | $ 17,164,753 |
Cost of sales | (10,033,652) | (11,293,157) |
Gross profit | 4,734,346 | 5,871,596 |
Selling, general and administrative expenses | (2,032,330) | (2,035,477) |
Operating income | 2,702,016 | 3,836,119 |
Other income: | ||
Interest income | 297,999 | 140,033 |
Undistributed earnings in joint venture - Majestic 21 | 22,174 | 22,826 |
Increase (decrease) in fair value of short term investments | 50,799 | (17,942) |
Miscellaneous | 50,541 | 7,772 |
Total other income | 421,513 | 152,689 |
Income before provision for income taxes | 3,123,529 | 3,988,808 |
Income tax expense | (785,092) | (931,841) |
Net income | $ 2,338,437 | $ 3,056,967 |
Net income per share: | ||
Basic | 3,268,829 | 3,370,912 |
Diluted | 3,277,565 | 3,371,418 |
Basic | $ 0.72 | $ 0.91 |
Diluted | $ 0.71 | $ 0.91 |
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] | Treasury Stock, Common [Member] |
Balance at Nov. 05, 2022 | $ 47,923,533 | $ 536,491 | $ 10,849,687 | $ 63,441,812 | $ (26,904,457) |
Balance, shares at Nov. 05, 2022 | 3,370,912 | ||||
Stock-based compensation | 34,989 | 34,989 | |||
Net Income (Loss) | 3,056,967 | 3,056,967 | |||
Balance at Feb. 04, 2023 | 51,015,489 | $ 536,491 | 10,884,676 | 66,498,779 | (26,904,457) |
Balance, shares at Feb. 04, 2023 | 3,370,912 | ||||
Balance at Nov. 04, 2023 | 52,716,298 | $ 536,491 | 10,964,985 | 70,969,764 | (29,754,942) |
Balance, shares at Nov. 04, 2023 | 3,269,075 | ||||
Stock-based compensation | 33,220 | 36,716 | (3,496) | ||
Stock-based compensation, shares | (236) | ||||
Net Income (Loss) | 2,338,437 | 2,338,437 | |||
Balance at Feb. 03, 2024 | $ 55,087,955 | $ 536,491 | $ 11,001,701 | $ 73,308,201 | $ (29,758,438) |
Balance, shares at Feb. 03, 2024 | 3,268,839 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) | 3 Months Ended | |
Feb. 03, 2024 | Feb. 04, 2023 | |
Cash flows from operating activities: | ||
Net income | $ 2,338,437 | $ 3,056,967 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 39,255 | 39,279 |
Undistributed earnings in joint venture - Majestic 21 | (22,174) | (22,826) |
Return on investment in joint venture-Majestic 21 | 1,600,889 | 0 |
Increase (decrease) in fair market value of equity investments | (50,799) | 17,942 |
Stock-based compensation | 33,220 | 34,989 |
Decrease (increase) in: | ||
Accounts receivable - trade | 595,448 | (634,707) |
Inventories | 1,456,452 | 138,432 |
Prepaid expenses and other current assets | 70,948 | 246,908 |
Interest receivable | (137,759) | (33,723) |
(Decrease) increase in: | ||
Accounts payable | (134,981) | (320,294) |
Accrued compensation | (13,757) | (77,759) |
Accrued expenses and other current liabilities | (35,013) | 131,028 |
Income taxes payable | 110,092 | 931,841 |
Customer deposits | (3,050,498) | (131,498) |
Net cash provided by operating activities | 2,799,760 | 3,376,579 |
Cash flows from investing activities: | ||
Purchase of property, plant and equipment | (122,444) | (226,549) |
Purchase certificates of deposit | (2,882,000) | (1,916,000) |
Proceeds from certificates of deposit | 1,434,000 | 0 |
Collections on interest receivable | 77,339 | 0 |
Collections on mortgage notes receivable | 45 | 188 |
Collections on equipment and other notes receivable | 0 | 5,701 |
Increase in cash surrender value of life insurance | (44,025) | (44,025) |
Net cash used in investing activities | (1,537,085) | (2,180,685) |
Cash flows from financing activities: | ||
Increase in cash and cash equivalents | 1,262,675 | 1,195,894 |
Cash and cash equivalents at beginning of period | 13,879,358 | 16,653,449 |
Cash and cash equivalents at end of period | 15,142,033 | 17,849,343 |
Supplemental financing activity: | ||
Income taxes paid | $ 675,000 | $ 0 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) | 3 Months Ended | |
Feb. 03, 2024 | Feb. 04, 2023 | |
Pay vs Performance Disclosure | ||
Net Income (Loss) | $ 2,338,437 | $ 3,056,967 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Feb. 03, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Basis of Presentation and Accou
Basis of Presentation and Accounting Policies | 3 Months Ended |
Feb. 03, 2024 | |
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 months ended February 3, 2024 and February 4, 2023 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. Accordingly, they do not include all the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. 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 months ended February 3, 2024, 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 for the fiscal year ended November 4, 2023. |
Recently Issued Accounting Stan
Recently Issued Accounting Standards | 3 Months Ended |
Feb. 03, 2024 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Recently Issued Accounting Standards | Note 2 Recently Issued Accounting Standards In June 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016 - 13, "Financial Instruments - Credit Losses," which introduced new guidance for an approach based on expected losses to estimate credit losses on certain types of financial instruments. This standard was effective for the Company as of November 5, 2023. There was no impact on our financial statements at adoption. |
Inventories
Inventories | 3 Months Ended |
Feb. 03, 2024 | |
Inventory Disclosure [Abstract] | |
Inventories | Note 3 Inventories New home inventory is carried at a 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 the 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. 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 21st Mortgage Corporation. The Company acquired this inventory at the amount of the uncollected balance of the financing at the time of the repossessions by 21st Mortgage Corporation. The Company records this inventory at a cost determined by the specific identification method. All of the refurbishment costs are paid by 21st Mortgage Corporation. This arrangement assists 21st Mortgage Corporation with liquidation of their repossessed inventory. The timing of these repurchases by the Company is unpredictable as it is based on the repossessions 21st Mortgage Corporation incurs in the portfolio. When the home is sold, the Company retains the cost of the home, an interest factor on the cost of the home and a sales commission, from the sales proceeds. Any additional proceeds are paid to 21st Mortgage. Any shortfall from the proceeds to cover these amounts is paid by 21st Mortgage to the Company. As the Company has no risk of loss on the sale, there is no valuation allowance necessary for repossessions of inventory. Inventory held at consignment locations by affiliated entities is included in the Company’s inventory on the Company’s condensed consolidated balance sheets. 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 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 net realizable value. Other inventory costs are determined on a first-in, first-out basis. A breakdown of the elements of inventory at February 3, 2024 and November 4, 2023 is as follows: February 3, November 4, 2024 2023 (unaudited) Raw materials $ 1,298,864 $ 1,203,672 Work-in-process 129,197 146,969 Finished homes - Nobility 9,915,856 10,144,045 Finished homes - Other 7,563,796 8,817,086 Pre-owned homes 873,113 947,457 Model home furniture 280,820 258,869 Inventories $ 20,061,646 $ 21,518,098 |
Short-term Investments
Short-term Investments | 3 Months Ended |
Feb. 03, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
Short-term Investments | Note 4 Short-term Investments The following is a summary of short-term investments (available for sale): February 3, 2024 (unaudited) Cost Gross Gross Estimated Equity securities in a public company $ 167,930 $ 410,768 $ — $ 578,698 November 4, 2023 Cost Gross Gross Estimated Equity securities in a public company $ 167,930 $ 359,969 $ — $ 527,899 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 | 3 Months Ended |
Feb. 03, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Note 5 Fair Value of Financial Instruments The carrying amount of cash and cash equivalents, accounts and notes receivable, accounts payable, customer deposits and accrued expenses approximate 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 observable 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. February 3, 2024 (unaudited) Level 1 Level 2 Level 3 Equity securities in a public company $ 578,698 $ — $ — November 4, 2023 Level 1 Level 2 Level 3 Equity securities in a public company $ 527,899 $ — $ — |
Net Income per Share
Net Income per Share | 3 Months Ended |
Feb. 03, 2024 | |
Earnings Per Share [Abstract] | |
Net Income per Share | Note 6 Net Income per Share These condensed consolidated 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, which are the result of outstanding stock options. |
Revenues by Products and Servic
Revenues by Products and Service | 3 Months Ended |
Feb. 03, 2024 | |
Segment Reporting [Abstract] | |
Revenues by Products and Service | Note 7 Revenues by Products and Service The Company operates in one business segment, which is manufactured housing and ancillary services. Revenues by net sales from manufactured housing homes and insurance agent commissions are as follows: (unaudited) Three Months Ended February 3, February 4, 2024 2023 Manufactured housing Homes sold through Company owned sales $ 12,633,133 $ 15,279,220 Homes sold to independent dealers and 2,057,582 1,809,925 14,690,715 17,089,145 Insurance agent commissions 77,283 75,608 Total net sales $ 14,767,998 $ 17,164,753 |
Subsequent Event
Subsequent Event | 3 Months Ended |
Feb. 03, 2024 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 8 Subsequent Event The Company paid a cash dividend of $ 1.50 per common share in April 2024 to stockholders of record as of March 25, 2024 in the aggregate amount of approximately $ 4.9 million. |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Feb. 03, 2024 | |
Inventory Disclosure [Abstract] | |
Summary of Breakdown of Elements of Inventory | A breakdown of the elements of inventory at February 3, 2024 and November 4, 2023 is as follows: February 3, November 4, 2024 2023 (unaudited) Raw materials $ 1,298,864 $ 1,203,672 Work-in-process 129,197 146,969 Finished homes - Nobility 9,915,856 10,144,045 Finished homes - Other 7,563,796 8,817,086 Pre-owned homes 873,113 947,457 Model home furniture 280,820 258,869 Inventories $ 20,061,646 $ 21,518,098 |
Short-term Investments (Tables)
Short-term Investments (Tables) | 3 Months Ended |
Feb. 03, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Short-term Investments | The following is a summary of short-term investments (available for sale): February 3, 2024 (unaudited) Cost Gross Gross Estimated Equity securities in a public company $ 167,930 $ 410,768 $ — $ 578,698 November 4, 2023 Cost Gross Gross Estimated Equity securities in a public company $ 167,930 $ 359,969 $ — $ 527,899 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Feb. 03, 2024 | |
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. February 3, 2024 (unaudited) Level 1 Level 2 Level 3 Equity securities in a public company $ 578,698 $ — $ — November 4, 2023 Level 1 Level 2 Level 3 Equity securities in a public company $ 527,899 $ — $ — |
Revenues by Products and Serv_2
Revenues by Products and Service (Tables) | 3 Months Ended |
Feb. 03, 2024 | |
Segment Reporting [Abstract] | |
Revenues by Net Sales | Revenues by net sales from manufactured housing homes and insurance agent commissions are as follows: (unaudited) Three Months Ended February 3, February 4, 2024 2023 Manufactured housing Homes sold through Company owned sales $ 12,633,133 $ 15,279,220 Homes sold to independent dealers and 2,057,582 1,809,925 14,690,715 17,089,145 Insurance agent commissions 77,283 75,608 Total net sales $ 14,767,998 $ 17,164,753 |
Inventories - Summary of Breakd
Inventories - Summary of Breakdown of Elements of Inventory (Detail) - USD ($) | Feb. 03, 2024 | Nov. 04, 2023 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 1,298,864 | $ 1,203,672 |
Work-in-process | 129,197 | 146,969 |
Finished homes – Nobility | 9,915,856 | 10,144,045 |
Finished homes – Other | 7,563,796 | 8,817,086 |
Pre-owned homes | 873,113 | 947,457 |
Model home furniture | 280,820 | 258,869 |
Inventories | $ 20,061,646 | $ 21,518,098 |
Short-term Investments - Summar
Short-term Investments - Summary of Short-term Investments (Detail) - USD ($) | Feb. 03, 2024 | Nov. 04, 2023 |
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale Securities, Amortized Cost | $ 167,930 | $ 167,930 |
Available-for-sale Securities, Gross Unrealized Gains | 410,768 | 359,969 |
Available-for-sale Securities, Gross Unrealized Losses | 0 | 0 |
Short-term investments | $ 578,698 | $ 527,899 |
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 ($) | Feb. 03, 2024 | Nov. 04, 2023 |
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Equity securities in a public company | $ 578,698 | $ 527,899 |
Level 1 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Equity securities in a public company | 578,698 | 527,899 |
Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Equity securities in a public company | 0 | 0 |
Level 3 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Equity securities in a public company | $ 0 | $ 0 |
Revenues by Products and Serv_3
Revenues by Products and Service - Revenues by Net Sales (Detail) - USD ($) | 3 Months Ended | |
Feb. 03, 2024 | Feb. 04, 2023 | |
Sales Information [Line Items] | ||
Total net sales | $ 14,767,998 | $ 17,164,753 |
Manufactured Housing [Member] | ||
Sales Information [Line Items] | ||
Total net sales | 14,690,715 | 17,089,145 |
Manufactured Housing [Member] | Homes sold through Company owned sales centers [Member] | ||
Sales Information [Line Items] | ||
Total net sales | 12,633,133 | 15,279,220 |
Manufactured Housing [Member] | Homes sold to independent dealers and through manufactured home parks, net [Member] | ||
Sales Information [Line Items] | ||
Total net sales | 2,057,582 | 1,809,925 |
Insurance Agent Commissions [Member] | ||
Sales Information [Line Items] | ||
Total net sales | $ 77,283 | $ 75,608 |
Subsequent Event - Additional I
Subsequent Event - Additional Information (Detail) - Subsequent Event [Member] $ / shares in Units, $ in Millions | 1 Months Ended |
Apr. 30, 2024 USD ($) $ / shares | |
Subsequent Event [Line Items] | |
Dividend cash paid per share | $ / shares | $ 1.5 |
Dividend cash paid amount | $ | $ 4.9 |