Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Nov. 02, 2013 | Jan. 28, 2014 | 3-May-13 | |
Document And Entity Information [Abstract] | ' | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 2-Nov-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Entity Registrant Name | 'NOBILITY HOMES INC | ' | ' |
Entity Central Index Key | '0000072205 | ' | ' |
Current Fiscal Year End Date | '--11-02 | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Filer Category | 'Smaller Reporting Company | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 4,057,053 | ' |
Entity Public Float | ' | ' | $7,883,120 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Nov. 02, 2013 | Nov. 03, 2012 |
Current assets: | ' | ' |
Cash and cash equivalents | $10,468,453 | $7,352,480 |
Short-term investments | 455,232 | 320,946 |
Accounts receivable - trade | 2,701,057 | 2,850,276 |
Mortgage notes receivable, current | 4,549 | 3,483 |
Inventories | 5,043,816 | 5,781,880 |
Pre-owned homes, current | 2,187,598 | 2,503,164 |
Prepaid expenses and other current assets | 319,546 | 480,055 |
Deferred income taxes | 656,461 | 679,745 |
Total current assets | 21,836,712 | 19,972,029 |
Property, plant and equipment, net | 3,731,463 | 3,801,552 |
Pre-owned homes | 4,316,397 | 4,430,833 |
Mortgage notes receivable, long term | 183,753 | 186,516 |
Income tax receivable | ' | 248,164 |
Other investments | 2,938,273 | 3,106,970 |
Deferred income taxes | 1,339,539 | 1,237,255 |
Other assets | 2,804,484 | 2,687,540 |
Total assets | 37,150,621 | 35,670,859 |
Current liabilities: | ' | ' |
Accounts payable | 645,519 | 404,546 |
Accrued compensation | 170,026 | 112,372 |
Accrued expenses and other current liabilities | 614,368 | 514,520 |
Customer deposits | 537,052 | 350,677 |
Total current liabilities | 1,966,965 | 1,382,115 |
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 | 536,491 | 536,491 |
Additional paid in capital | 10,632,060 | 10,618,542 |
Retained earnings | 33,319,784 | 32,572,678 |
Accumulated other comprehensive income | 240,378 | 106,090 |
Less treasury stock at cost, 1,307,854 shares | -9,545,057 | -9,545,057 |
Total stockholders' equity | 35,183,656 | 34,288,744 |
Total liabilities and stockholders' equity | $37,150,621 | $35,670,859 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Nov. 02, 2013 | Nov. 03, 2012 |
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 |
Treasury stock, shares | 1,307,854 | 1,307,854 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Loss) (USD $) | 12 Months Ended | |
Nov. 02, 2013 | Nov. 03, 2012 | |
Income Statement [Abstract] | ' | ' |
Net sales | $18,525,950 | $15,834,971 |
Cost of goods sold | -15,149,277 | -12,975,478 |
Gross profit | 3,376,673 | 2,859,493 |
Selling, general and administrative expenses | -2,594,981 | -2,709,481 |
Operating income | 781,692 | 150,012 |
Other income (loss): | ' | ' |
Interest income | 53,346 | 59,834 |
Undistributed earnings in joint venture - Majestic 21 | 121,293 | 95,035 |
Losses from investments in retirement community limited partnerships | -289,990 | -334,779 |
Miscellaneous | 74,447 | 79,657 |
Total other loss | -40,904 | -100,253 |
Income before provision for income taxes | 740,788 | 49,759 |
Income tax benefit | 6,318 | ' |
Net income | 747,106 | 49,759 |
Other comprehensive income: | ' | ' |
Unrealized investment gain | 134,288 | 28,317 |
Comprehensive income | $881,394 | $78,076 |
Weighted average number of shares outstanding: | ' | ' |
Basic | 4,057,053 | 4,056,843 |
Diluted | 4,057,053 | 4,056,843 |
Net income per share: | ' | ' |
Basic | $0.18 | $0.01 |
Diluted | $0.18 | $0.01 |
Consolidated_Statements_of_Cha
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] |
Beginning balance at Nov. 05, 2011 | $34,166,866 | $536,491 | $10,579,467 | $32,524,828 | $77,773 | ($9,551,693) |
Beginning balance, shares at Nov. 05, 2011 | ' | 4,056,144 | ' | ' | ' | ' |
Stock-based compensation | 43,802 | ' | 39,075 | -1,909 | ' | 6,636 |
Stock-based compensation, shares | ' | 909 | ' | ' | ' | ' |
Unrealized investment gain | 28,317 | ' | ' | ' | 28,317 | ' |
Net income | 49,759 | ' | ' | 49,759 | ' | ' |
Ending balance at Nov. 03, 2012 | 34,288,744 | 536,491 | 10,618,542 | 32,572,678 | 106,090 | -9,545,057 |
Ending balance, shares at Nov. 03, 2012 | ' | 4,057,053 | ' | ' | ' | ' |
Stock-based compensation | 13,518 | ' | 13,518 | ' | ' | ' |
Unrealized investment gain | 134,288 | ' | ' | ' | 134,288 | ' |
Net income | 747,106 | ' | ' | 747,106 | ' | ' |
Ending balance at Nov. 02, 2013 | $35,183,656 | $536,491 | $10,632,060 | $33,319,784 | $240,378 | ($9,545,057) |
Ending balance, shares at Nov. 02, 2013 | ' | 4,057,053 | ' | ' | ' | ' |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | |
Nov. 02, 2013 | Nov. 03, 2012 | |
Cash flows from operating activities: | ' | ' |
Net income | $747,106 | $49,759 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation | 102,968 | 116,248 |
Amortization of bond premium/discount | ' | 1,668 |
Undistributed earnings in joint venture - Majestic 21 | -121,293 | -95,035 |
Losses from investments in retirement community limited partnerships | 289,990 | 334,779 |
Loss on disposal of property, plant and equipment | 33,682 | ' |
Stock-based compensation | 13,518 | 43,802 |
Deferred income taxes | -79,000 | ' |
Decrease (increase) in: | ' | ' |
Accounts receivable - trade | 149,219 | -1,673,778 |
Inventories | 738,064 | 713,690 |
Pre-owned homes | 430,002 | 1,824,325 |
Prepaid expenses and other assets | 160,509 | -60,578 |
Income taxes receivable | 248,164 | ' |
(Decrease) increase in: | ' | ' |
Accounts payable | 240,973 | 16,117 |
Accrued compensation | 57,654 | -1,441 |
Accrued expenses and other current liabilities | 99,848 | -351,367 |
Customer deposits | 186,375 | -107,380 |
Net cash provided by operating activities | 3,297,779 | 810,809 |
Cash flows from investing activities: | ' | ' |
Purchase of property, plant and equipment | -68,859 | -57,982 |
Proceeds from the sale of property, plant and equipment | 2,300 | ' |
Collections on mortgage notes receivable | 1,697 | 924 |
Increase in cash surrender value of life insurance | -116,944 | -112,489 |
Proceeds from maturity of long-term investment | ' | 505,000 |
Net cash provided by (used in) investing activities | -181,806 | 335,453 |
Increase in cash and cash equivalents | 3,115,973 | 1,146,262 |
Cash and cash equivalents at beginning of year | 7,352,480 | 6,206,218 |
Cash and cash equivalents at end of year | 10,468,453 | 7,352,480 |
Supplemental disclosure of cash flows information: | ' | ' |
Income taxes received | ($169,164) | ' |
Reporting_Entity_and_Significa
Reporting Entity and Significant Accounting Policies | 12 Months Ended | ||||||||
Nov. 02, 2013 | |||||||||
Accounting Policies [Abstract] | ' | ||||||||
Reporting Entity and Significant Accounting Policies | ' | ||||||||
NOTE 1 | Reporting Entity and Significant Accounting Policies | ||||||||
Description of Business and Principles of Consolidation – The consolidated financial statements include the accounts of Nobility Homes, Inc. (“Nobility”), its wholly-owned subsidiaries, Prestige Home Centers, Inc. (“Prestige”) Nobility Parks I, LLC, Nobility Parks II, LLC and Prestige’s wholly-owned subsidiaries, Mountain Financial, Inc., an independent insurance agency and mortgage broker, and Majestic Homes, Inc., (collectively the “Company”). The Company is engaged in the manufacture and sale of manufactured and modular homes to various dealerships, including its own retail sales centers, and manufactured housing communities throughout Florida. The Company has one manufacturing plant in operation that is located in Ocala, Florida. At November 2, 2013 Prestige operated ten Florida retail sales centers: Ocala (2), Chiefland, Auburndale, Inverness, Hudson, Tavares, Yulee, Panama City and Punta Gorda. | |||||||||
All intercompany accounts and transactions have been eliminated in consolidation. The consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP). | |||||||||
Use of Estimates – The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying disclosures. These estimates and assumptions are based upon management’s best knowledge of current events and actions that the Company may take in the future. The Company is subject to uncertainties such as the impact of future events, economic, environmental and political factors and changes in the Company’s business environment; therefore, actual results could differ from these estimates. Accordingly, the accounting estimates used in the preparation of the Company’s consolidated financial statements will change as new events occur, as more experience is acquired, as additional information is obtained and as the Company’s operating environment changes. Changes in estimates are made when circumstances warrant. Such changes in estimates and refinements in estimation methodologies are reflected in the reported financial condition and results of operations; if material, the effects of changes in estimates are disclosed in the notes to the consolidated financial statements. Significant estimates and assumptions by management affect: valuation of pre-owned homes, the allowance for doubtful accounts, the carrying value of long-lived assets, the provision for income taxes and related deferred tax accounts, certain accrued expenses and contingencies, warranty reserve and stock-based compensation. | |||||||||
Fiscal Year – The Company’s fiscal year ends on the first Saturday on or after October 31. The years ended November 2, 2013 and November 3, 2012 each consisted of fifty-two week periods. | |||||||||
Revenue Recognition – The Company recognizes revenue from its retail sales of new manufactured homes upon the occurrence of the following: | |||||||||
• | its receipt of a down payment, | ||||||||
• | construction of the home is complete, | ||||||||
• | home has been delivered and set up at the retail home buyer’s site, and title has been transferred to the retail home buyer, | ||||||||
• | remaining funds have been released by the finance company (financed sales transaction), remaining funds have been committed by the finance company by an agreement with respect to financing obtained by the customer, usually in the form of a written approval for permanent home financing received from a lending institution, (financed construction sales transaction) or cash has been received from the home buyer (cash sales transaction), and | ||||||||
• | completion of any other significant obligations. | ||||||||
The Company recognizes revenue from the sale of the repurchased homes upon transfer of title to the new purchaser. | |||||||||
The Company recognizes revenues from its independent dealers upon receiving wholesale floor plan financing or establishing retail credit approval for terms, shipping of the home, and transferring title and risk of loss to the independent dealer. | |||||||||
The Company recognizes revenues from its wholly-owned subsidiary, Mountain Financial, Inc., as follows: commission income (and fees in lieu of commissions) is recorded as of the effective date of insurance coverage or the billing date, whichever is later. Commissions on premiums billed and collected directly by insurance companies are recorded as revenue when received which, in many cases, is the Company’s first notification of amounts earned due to the lack of policy and renewal information. Contingent commissions are recorded as revenue when received. Contingent commissions are commissions paid by insurance underwriters and are based on the estimated profit and/or overall volume of business placed with the underwriter. The data necessary for the calculation of contingent commissions cannot be reasonably obtained prior to the receipt of the commission which, in many cases, is the Company’s first notification of amounts earned. The Company provides appropriate reserves for policy cancellations based on numerous factors, including past transaction history with customers, historical experience, and other information, which is periodically evaluated and adjusted as deemed necessary. In the opinion of management, no reserve was deemed necessary for policy cancellations at November 2, 2013 or November 3, 2012. | |||||||||
Revenues by Products and Services – Revenues by net sales from manufactured housing, insurance agent commissions, and construction lending operations for the years ended November 2, 2013 and November 3, 2012 are as follows: | |||||||||
2013 | 2012 | ||||||||
Manufactured housing | $ | 15,495,710 | $ | 12,815,516 | |||||
Pre-owned homes-FRSA | 1,706,056 | 2,310,588 | |||||||
Trade-in and other pre-owned homes | 1,089,536 | 465,884 | |||||||
Insurance agent commissions | 204,960 | 211,076 | |||||||
Construction lending operations | 29,688 | 31,907 | |||||||
Total net sales | $ | 18,525,950 | $ | 15,834,971 | |||||
Cash and Cash Equivalents – The Company considers all highly liquid debt instruments purchased with an original maturity of three months or less to be cash equivalents. | |||||||||
Accounts Receivable – Accounts receivable are stated at net realizable value. An allowance for doubtful accounts is provided based on prior collection experiences and management’s analysis of specific accounts. At November 2, 2013 and November 3, 2012, in the opinion of management, all accounts were considered fully collectible and, accordingly, no allowance was deemed necessary. | |||||||||
Accounts receivable fluctuates due to the number of homes sold to independent dealers. The Company recognizes revenues from its independent dealers upon receiving wholesale floor plan financing or establishing retail credit approval for terms, shipping of the home, and transferring title and risk of loss to the independent dealer. | |||||||||
Investments – The Company’s investments consist of money market accounts as well as equity securities of a public company. Investments with maturities of less than one year are classified as short-term investments. Debt securities that the Company has the positive intent and ability to hold until maturity are accounted for as “held-to-maturity” securities and are carried at amortized cost. Premiums and discounts on investments in debt securities are amortized over the contractual lives of those securities. The method of amortization results in a constant effective yield on those securities (the interest method). The Company’s equity investment in a public company is classified as “available-for-sale” and carried at fair value. Unrealized gains on the available-for-sale securities, net of taxes, are recorded in accumulated other comprehensive income. | |||||||||
The Company continually reviews its investments to determine whether a decline in fair value below the cost basis is other than temporary. If the decline in fair value is judged to be other than temporary, the cost basis of the security is written down to fair value and the amount of the write-down is included in the accompanying consolidated statements of income and other comprehensive income. | |||||||||
Inventories – New home inventory is carried at the lower of cost or market 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 market value. | |||||||||
Pre-owned home inventory is valued at the Company’s cost to acquire the inventory plus refurbishment costs incurred to date to bring the inventory to a more saleable state. This amount is reduced by a valuation reserve which management believes results in inventory being valued at market. | |||||||||
Trade in and other pre-owned homes are stated at cost or net realizable value. Homes taken as trade-ins are recorded at estimated actual cash value which approximates wholesale value. Other pre-owned homes are recorded at cost determined on the specific identification method and acquired from the Company’s joint venture partner, Majestic 21 and remarketed. Majestic 21 reimburses the Company for all costs related to these homes. | |||||||||
Other inventory costs are determined on a first-in, first-out basis. | |||||||||
Property, Plant and Equipment – Property, plant and equipment are stated at cost and depreciated over their estimated useful lives using the straight-line method. Routine maintenance and repairs are charged to expense when incurred. Major replacements and improvements are capitalized. Gains or losses are credited or charged to earnings upon disposition. | |||||||||
Investment in Majestic 21 – Majestic 21 was formed in 1997 as a joint venture with our joint venture partner, an unrelated entity 21st Mortgage Corporation (“21st Mortgage”). We have been allocated our share of net income and distributions on a 50/50 basis since Majestic 21’s formation. While Majestic 21 has been deemed to be a variable interest entity, the Company only holds a 50% interest in this entity and all allocations of profit and loss are on a 50/50 basis. Since all allocations are to be made on a 50/50 basis and joint decisions with the joint venture partner are made which most significantly impact Majestic 21 economic performance therefore, the Company is not required to consolidate Majestic 21 with the accounts of Nobility Homes in accordance with FASB ASC 810. Management believes that the Company’s maximum exposure to loss as a result of its involvement with Majestic 21 is its investment in the joint venture recorded in the accounts of Nobility Homes as of November 2, 2013 and November 3, 2012. Based on management’s evaluation, there was no impairment of this investment at November 2, 2013 or November 3, 2012. | |||||||||
The Company entered into an arrangement in 2002 to repurchase certain homes. Under this arrangement or any other arrangement, the Company is not obligated to repurchase any foreclosed/repossessed units of Majestic 21 as it does not have a repurchase agreement or any other guarantees with Majestic 21. However, the Company buys back foreclosed/repossessed units and acts as a remarketing agent. It resells those units through the Company’s network of retail centers as we believe it benefits the historical loss experience of the joint venture. The only impact on the Company’s operations from this arrangement are commissions earned on the resale of these units and interest received from Majestic 21 for funds the company used to carry the units while in inventory. | |||||||||
See Note 14 for discussion of the Company’s guarantee of a $5 million note payable of Majestic 21. | |||||||||
Finance Revenue Sharing Agreement – During fiscal year 2004, the Company transferred $250,000 from its existing joint venture in Majestic 21 in order to participate in a FRSA between 21st Mortgage Corporation, Prestige Homes, Inc., and Majestic Homes, Inc. without forming a separate entity. In connection with this FRSA, mortgage financing will be provided on manufactured homes sold through the Company’s retail centers to customers who qualify for such mortgage financing. | |||||||||
Effective December 31, 2013, 21st Mortgage Corporation informed the Company they will no longer originate loans under the terms of the FRSA due to regulatory changes. No revenue was recorded under this agreement in fiscal years 2013 or 2012. 21st Mortgage Corporation will continue to provide financing to retail customers who purchase the Company’s manufactured homes at Prestige retail sales centers. | |||||||||
Other Investments – The Company has a 31.3% investment interest in Walden Woods South LLC (“Walden Woods”), which owns and operates a retirement manufactured home community located in Homosassa, Florida. The Company fully impaired its investment in Walden Woods in 2011. The majority owner of Walden Woods is the Company’s principal shareholder. | |||||||||
The Company owns 100% of a limited liability company called Nobility Parks II, LLC to hold a 48.5% interest in a retirement manufactured home community, CRF III, Ltd. (Cypress Creek) located in Winter Haven, Florida. Nobility Parks II, LLC has the right to assign some of its ownership to partners other than Nobility Homes. The Company recorded an impairment charge on its investment in Cypress Creek in 2011. | |||||||||
See further discussion of these investments in Note 5. | |||||||||
Impairment of Long-Lived Assets – In the event that facts and circumstances indicate that the carrying value of a long-lived asset may be impaired, an evaluation of recoverability is performed by comparing the estimated future undiscounted cash flows associated with the asset to the asset’s carrying amount to determine if a write-down is required. If such evaluations indicate that the future undiscounted cash flows of certain long-lived assets are not sufficient to recover the carrying value of such assets, the assets are adjusted to their fair values. | |||||||||
Customer Deposits – A retail customer is required to make a down payment ranging from $500 to 35% of the retail contract price based upon the credit worthiness of the customer. The retail customer receives the full down payment back when the Company is not able to obtain retail financing. If the retail customer receives retail financing and decides not to go through with the retail sale, the Company can withhold 20% of the retail contract price. The Company does not receive any deposits from their independent dealers. | |||||||||
Company Owned Life Insurance – The Company has purchased life insurance policies on certain key executives. Company owned life insurance is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement. | |||||||||
Warranty Costs – The Company provides for a warranty as the manufactured homes are sold. Amounts related to these warranties for fiscal years 2013 and 2012 are as follows: | |||||||||
2013 | 2012 | ||||||||
Beginning accrued warranty expense | $ | 75,000 | $ | 75,000 | |||||
Less: reduction for payments | (165,627 | ) | (176,074 | ) | |||||
Plus: additions to accrual | 165,627 | 176,074 | |||||||
Ending accrued warranty expense | $ | 75,000 | $ | 75,000 | |||||
The Company’s limited warranty covers substantial defects in material or workmanship in specified components of the home including structural elements, plumbing systems, electrical systems, and heating and cooling systems which are supplied by the Company that may occur under normal use and service during a period of twelve (12) months from the date of delivery to the original homeowner, and applies to the original homeowner or any subsequent homeowner to whom this product is transferred during the duration of this twelve (12) month period. | |||||||||
The Company tracks the warranty claims per home. Based on the history of the warranty claims, the Company has determined that a majority of warranty claims usually occur within the first three months after the home is sold. The Company determines its warranty accrual using the last three months of home sales. | |||||||||
Accrued Home Setup Costs – Accrued home setup costs represent amounts due to vendors and/or independent contractors for various items related to the actual setup of the home on the retail home buyers’ site. These costs include appliances, air conditioners, electrical/plumbing hook-ups, furniture, insurance, impact/permit fees, land/home fees, extended service plan, freight, skirting, steps, well, septic tanks and other setup costs and are included in accrued expenses in the accompanying consolidated balance sheets. See Note 9 of “Notes to Consolidated Financial Statements”. | |||||||||
Stock-Based Compensation – At November 2, 2013, the Company has a stock incentive plan (the “Plan”) which authorizes the issuance of options to purchase common stock. Stock-based compensation is measured at the grant date based on the fair value of the award and is recognized as expense over the period during which an employee is required to provide service in exchange for the award (usually the vesting period). | |||||||||
Rebate Program – The Company has a rebate program for some dealers based upon the number and type of home purchased, which pay rebates based upon sales volume to the dealers. Volume rebates are recorded as a reduction of sales in the accompanying consolidated financial statements. The rebate liability is calculated and recognized as eligible homes are sold based upon factors surrounding the activity and prior experience of specific dealers and is included in accrued expenses in the accompanying consolidated balance sheets. | |||||||||
Advertising – Advertising for Prestige retail sales centers consists primarily of newspaper, radio and television advertising. All costs are expensed as incurred. Advertising expense amounted to approximately $223,100 and $222,900 for fiscal year 2013 and 2012, respectively. | |||||||||
Audit Fees – The Company generally records audit fees in the period in which services are provided. Audit fees relating to the finalization of the audit generally will be reflected in the financial statements of the subsequent year. Due to certain issues, primarily relating to FRSA accounting matters that occurred during 2011 the Company incurred significant audit fees in financial statements for fiscal year 2012 and 2013 relating to the finalization of the fiscal 2011 audit. Audit fees which related to the completion of the 2011 audit were $83,891 and $279,891 in 2013 and 2012, respectively. | |||||||||
Income Taxes – The Company accounts for income taxes utilizing the asset and liability method. This approach requires the recognition of deferred tax assets and liabilities for the expected future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. | |||||||||
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. | |||||||||
For the year ended November 2, 2013 and November 3, 2012, options to purchase 30,400 and 54,150 shares, respectively, have been excluded from the computation of potentially dilutive securities as the effect on net income per share is antidilutive. | |||||||||
Shipping and Handling Costs – Net sales include the revenue related to shipping and handling charges billed to customers. The related costs associated with shipping and handling is included as a component of cost of goods sold. | |||||||||
Comprehensive Income – Comprehensive income includes net income as well as other comprehensive income. The Company’s other comprehensive income consists of unrealized gains on available-for-sale securities, net of related taxes. | |||||||||
Segments – The Company’s chief operating decision maker is its Chief Executive Officer, who reviews financial information on a company-wide or consolidated basis. Accordingly, the Company accounts for its operations in accordance with FAS ASC 280, “Segment Reporting.” No segment disclosures have been made as the Company considers its business activities as a single segment. | |||||||||
Major Customers – Sales to two publicly traded REIT’s which own multiple retirement Communities in our market area accounted for $2,001,730 or 11 % and $3,469,130 or 19% of our total sales in fiscal year 2013 and $1,952,795 or 12% and $3,416,285 or 22% of our total sales in fiscal year 2012. | |||||||||
Concentration of Credit Risk – The Company’s financial instruments that are exposed to concentrations of credit risk consist primarily of cash and cash equivalents, short-term and long-term investments and accounts receivable. At times, the Company’s deposits may exceed federally insured limits. However, the Company has not experienced any losses in such accounts and management believes the Company is not exposed to any significant credit risk on these accounts. The majority of the Company’s sales are credit sales which are made primarily to customers whose ability to pay is dependent upon the industry economics prevailing in the areas where they operate; however, concentrations of credit risk with respect to accounts receivables is limited due to generally short payment terms. The Company also performs ongoing credit evaluations of its customers to help further reduce credit risk. The Company maintains reserves for potential credit losses when deemed necessary and such losses have historically been within management’s expectations. | |||||||||
Recently Issued Accounting Pronouncements – From time to time, new accounting pronouncements are issued by the FASB and other regulatory bodies that are adopted by the Company as of the specified effective date. Unless otherwise discussed, management believes that the impact of recently issued standards, which are not yet effective, will not have a material impact on the Company’s Consolidated Financial Statements upon adoption. |
Investments
Investments | 12 Months Ended | ||||||||||||||||
Nov. 02, 2013 | |||||||||||||||||
Investments Debt And Equity Securities [Abstract] | ' | ||||||||||||||||
Investments | ' | ||||||||||||||||
NOTE 2 | Investments | ||||||||||||||||
The following is a summary of short-term investments (available for sale): | |||||||||||||||||
November 2, 2013 | |||||||||||||||||
Amortized Cost | Gross | Gross | Estimated Fair | ||||||||||||||
Unrealized | Unrealized | Value | |||||||||||||||
Gains | Losses | ||||||||||||||||
Equity securities in a public company | $ | 167,930 | $ | 287,302 | $ | — | $ | 455,232 | |||||||||
November 3, 2012 | |||||||||||||||||
Amortized Cost | Gross | Gross | Estimated Fair | ||||||||||||||
Unrealized | Unrealized | Value | |||||||||||||||
Gains | Losses | ||||||||||||||||
Equity securities in a public company | $ | 167,930 | $ | 153,016 | $ | — | $ | 320,946 | |||||||||
The fair values were estimated based on quoted market prices using current market rates at each respective period end. |
Fair_Values_of_Financial_Inves
Fair Values of Financial Investments | 12 Months Ended | ||||||||||||
Nov. 02, 2013 | |||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||
Fair Values of Financial Investments | ' | ||||||||||||
NOTE 3 | Fair Values of Financial Investments | ||||||||||||
The carrying amount of cash and cash equivalents, accounts 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 (ASC No. 820). | |||||||||||||
FASB ASC No. 820 “Fair Value Measurements” 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 No. 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 No. 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 table represents the Company’s financial assets and liabilities which are carried at fair value at November 2, 2013 and November 3, 2012. | |||||||||||||
November 2, 2013 | |||||||||||||
Level 1 | Level 2 | Level 3 | |||||||||||
Equity securities in a public company | $ | 455,232 | $ | — | $ | — | |||||||
Non-recurring fair value investment | — | — | 467,934 | ||||||||||
$ | 455,232 | $ | — | $ | 467,934 | ||||||||
November 3, 2012 | |||||||||||||
Level 1 | Level 2 | Level 3 | |||||||||||
Equity securities in a public company | $ | 320,946 | $ | — | $ | — | |||||||
Non-recurring fair value investment | — | — | 757,924 | ||||||||||
$ | 320,946 | $ | — | $ | 757,924 | ||||||||
The level 3 non-recurring fair value investment represents the investment in Cypress Creek limited partnership. |
Related_Party_Transactions
Related Party Transactions | 12 Months Ended | |
Nov. 02, 2013 | ||
Related Party Transactions [Abstract] | ' | |
Related Party Transactions | ' | |
NOTE 4 | Related Party Transactions | |
Affiliated Entities | ||
TLT, Inc. – The President and Chairman of the Board of Directors (“President”) and the Executive Vice President each own 50% of the stock of TLT, Inc. TLT, Inc. is the general partner of limited partnerships which are developing manufactured housing communities in Central Florida (the “TLT Communities”). The President owns between a 24.75% and a 49.5% direct and indirect interest in each of these limited partnerships. The Executive Vice President owns between a 49.5% and a 57.75% direct and indirect interest in each of these limited partnerships. The TLT Communities have purchased manufactured homes exclusively from the Company since 1990. Sales to TLT Communities were not significant during fiscal years 2013 and 2012. | ||
Walden Woods – The Company’s principal shareholder owns 51% of Walden Woods South LLC (“South”), which owns the Walden Wood park. |
Other_Investments
Other Investments | 12 Months Ended | ||||||||
Nov. 02, 2013 | |||||||||
Text Block [Abstract] | ' | ||||||||
Other Investments | ' | ||||||||
NOTE 5 | Other Investments | ||||||||
Investment in Joint Venture – Majestic 21 – During fiscal 1997, the Company contributed $250,000 for a 50% interest in a joint venture engaged in providing mortgage financing on manufactured homes. This investment is accounted for under the equity method of accounting. | |||||||||
While Majestic 21 has been deemed to be a variable interest entity, the Company only holds a 50% interest in this entity and all allocations of profit and loss are on a 50/50 basis. Since all allocations are to be made on a 50/50 basis and the Company’s maximum exposure is limited to its investment in Majestic 21, management has concluded that the Company would not absorb a majority of Majestic 21’s expected losses nor receive a majority of Majestic 21’s expected residual returns; therefore, the Company is not required to consolidate Majestic 21 with the accounts of Nobility Homes in accordance with ASC 810. | |||||||||
See Note 14 for discussion of the Company’s guarantee of a $5 million note payable of Majestic 21. | |||||||||
The following is summarized financial information of the Company’s joint venture: | |||||||||
November 2, | November 3, | ||||||||
2013 | 2012 | ||||||||
Total Assets | $ | 16,569,995 | $ | 15,368,882 | |||||
Total Liabilities | $ | 12,129,322 | $ | 11,170,792 | |||||
Total Equity | $ | 4,440,673 | $ | 4,198,091 | |||||
Net Income | $ | 242,583 | $ | 190,072 | |||||
There were no distributions received from the joint venture in fiscal years 2013 and 2012. | |||||||||
With regard to our investment in Majestic 21, there are no differences between our investment balance and the amount of underlying equity in net assets owned by Majestic 21. | |||||||||
Investment in Retirement Community Limited Partnerships – The Company has a 31.3% investment interest in Walden Woods South LLC (“Walden Woods”), which owns and operates a retirement manufactured home community named Walden Woods located in Homosassa, Florida. The Company fully impaired its investment in Walden Woods in 2011. The majority owner of Walden Woods is the Company’s principal shareholder. The Company’s principal shareholder guaranteed the financing used to purchase Walden Woods Park, which created an implicit guarantee from the Company. The implicit guarantee caused Walden Woods Park to be a variable interest entity as defined in Accounting Standard Codification (ASC) 810. The Company is considered to currently have an implicit guarantee with Walden Woods because it is a related party to the primary guarantor. In determining the primary beneficiary of the variable interest entity, the Company has determined the principal shareholder has the power to direct the activities that most significantly impact the economic performance of Walden Woods. As a result, in accordance with ASC 810, Walden Woods has not been consolidated in the financial statements of the Company. | |||||||||
The Company owns 100% of a limited liability company called Nobility Parks II, LLC to hold a 48.5% interest in a retirement manufactured home community, CRF III, Ltd. (Cypress Creek) located in Winter Haven, Florida. Nobility Parks II, LLC has the right to assign some of its ownership to partners other than Nobility Homes. The Company recorded an impairment charge on its investment in Cypress Creek in 2011. | |||||||||
These investments in Walden Woods and Cypress Creek are accounted for under the equity method of accounting and all allocations of profit and loss are on a pro-rata basis. Since the Company’s maximum exposure is limited to its investment in Walden Woods and Cypress Creek, management has concluded that the Company would not absorb a majority of Walden Woods’ or Cypress Creek’s expected losses nor receive a majority of Walden Woods’ and Cypress Creek’s expected residual returns; therefore, the Company is not required to consolidate Walden Woods and Cypress Creek with the accounts of Nobility Homes in accordance with FASB ASC No. 810-10. | |||||||||
The following is summarized financial information of Walden Woods and Cypress Creek as of September 30, 2013 and September 30, 2012*: | |||||||||
September 30, | September 30, | ||||||||
2013 | 2012 | ||||||||
Total Assets | $ | 13,559,275 | $ | 14,159,361 | |||||
Total Liabilities | $ | 15,231,044 | $ | 14,829,587 | |||||
Total Equity | $ | (1,671,769 | ) | $ | (670,226 | ) | |||
* | Due to Walden Woods, and Cypress Creek having a calendar year-end, the summarized financial information provided is from their most recent quarter. | ||||||||
The following table summarizes the change in the investments for fiscal year 2013 and 2012: | |||||||||
Walden | Cypress | ||||||||
Woods | Creek | ||||||||
Investment at November 5, 2011 | $ | — | $ | 1,092,703 | |||||
Losses on investments | — | (334,779 | ) | ||||||
Investment at November 3, 2012 | — | 757,924 | |||||||
Losses on investment | — | (289,990 | ) | ||||||
Investment at November 2, 2013 | $ | — | $ | 467,934 | |||||
The Company has no obligation to fund future operating losses of Walden Woods and accordingly, has not reduced the investment carrying value to less than zero. |
Inventories
Inventories | 12 Months Ended | ||||||||||||
Nov. 02, 2013 | |||||||||||||
Inventory Disclosure [Abstract] | ' | ||||||||||||
Inventories | ' | ||||||||||||
NOTE 6 | Inventories | ||||||||||||
The Company acquired certain repossessed pre-owned inventory in 2011 as part of an Amendment of the FSRA agreement with 21st Mortgage Corporation. The Company expects that the pre-owned inventory will be sold over the next 3 years and will monitor and reduce, if necessary, the value of this inventory if circumstances so indicate in future periods. If the real estate market further deteriorates, the Company could experience additional losses on the disposition of these homes beyond the level of the reserve recorded by the Company. | |||||||||||||
A breakdown of the elements of inventory at November 2, 2013 and November 3, 2012 is as follows: | |||||||||||||
November 2, | November 3, | ||||||||||||
2013 | 2012 | ||||||||||||
Raw materials | $ | 571,621 | $ | 505,122 | |||||||||
Work-in-process | 108,641 | 90,444 | |||||||||||
Finished homes | 4,344,117 | 5,140,200 | |||||||||||
Model home furniture and others | 19,437 | 46,114 | |||||||||||
Inventories, net | $ | 5,043,816 | $ | 5,781,880 | |||||||||
Pre-owned homes * | $ | 9,215,590 | $ | 10,335,524 | |||||||||
Inventory impairment reserve | (2,711,595 | ) | (3,401,527 | ) | |||||||||
6,503,995 | 6,933,997 | ||||||||||||
Less homes expected to sell in 12 months | (2,187,598 | ) | (2,503,164 | ) | |||||||||
Pre-owned homes, long-term | $ | 4,316,397 | $ | 4,430,833 | |||||||||
* | The following table summarizes a breakdown of pre-owned homes inventory for fiscal year 2013 and 2012: | ||||||||||||
FRSA pre-owned | Trade in and other | Total pre-owned | |||||||||||
homes | pre-owned homes | homes | |||||||||||
Balance at November 5, 2011 | $ | 11,886,362 | $ | 970,784 | $ | 12,857,146 | |||||||
Purchased | 275,572 | 167,281 | 442,853 | ||||||||||
Sold | (2,530,643 | ) | (433,832 | ) | (2,964,475 | ) | |||||||
Balance at November 2, 2012 | 9,631,291 | 704,233 | 10,335,524 | ||||||||||
Purchased | — | 1,399,205 | 1,399,205 | ||||||||||
Sold | (1,718,453 | ) | (800,686 | ) | (2,519,139 | ) | |||||||
Balance at November 2, 2013 | $ | 7,912,838 | $ | 1,302,752 | $ | 9,215,590 | |||||||
An analysis of the inventory impairment reserve at November 2, 2013 and November 3, 2012 is as follows: | |||||||||||||
November 2, | November 3, | ||||||||||||
2013 | 2012 | ||||||||||||
Beginning inventory impairment reserve | $ | 3,401,527 | $ | 4,098,824 | |||||||||
Less: Reductions for homes sold | (393,138 | ) | (475,031 | ) | |||||||||
Inventory holding costs | (302,497 | ) | (251,067 | ) | |||||||||
Plus: Additions to impairment reserve | 5,703 | 28,801 | |||||||||||
Ending inventory impairment reserve | $ | 2,711,595 | $ | 3,401,527 | |||||||||
Properties_Plant_and_Equipment
Properties, Plant and Equipment | 12 Months Ended | ||||||||||
Nov. 02, 2013 | |||||||||||
Property Plant And Equipment [Abstract] | ' | ||||||||||
Properties, Plant and Equipment | ' | ||||||||||
NOTE 7 | Properties, Plant and Equipment | ||||||||||
Property, plant and equipment, along with their estimated useful lives and related accumulated depreciation are summarized as follows: | |||||||||||
Range of Lives in Years | November 2, 2013 | November 3, 2012 | |||||||||
Land | — | $ | 2,349,383 | $ | 2,349,383 | ||||||
Land improvements | 20-Oct | 839,912 | 872,977 | ||||||||
Buildings and improvements | 15-40 | 2,538,248 | 2,571,628 | ||||||||
Machinery and equipment | 10-Mar | 1,061,463 | 1,131,687 | ||||||||
Furniture and fixtures | 10-Mar | 437,434 | 489,979 | ||||||||
7,226,440 | 7,415,654 | ||||||||||
Less accumulated depreciation | (3,494,977 | ) | (3,614,102 | ) | |||||||
$ | 3,731,463 | $ | 3,801,552 | ||||||||
Other_Assets
Other Assets | 12 Months Ended | ||||||||
Nov. 02, 2013 | |||||||||
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | ' | ||||||||
Other Assets | ' | ||||||||
NOTE 8 | Other Assets | ||||||||
Other assets are comprised of the following: | |||||||||
November 2, 2013 | November 3, 2012 | ||||||||
Cash surrender value of life insurance | $ | 2,648,197 | $ | 2,531,253 | |||||
Other | 156,287 | 156,287 | |||||||
Total other assets | $ | 2,804,484 | $ | 2,687,540 | |||||
Accrued_Expenses_and_Other_Cur
Accrued Expenses and Other Current Liabilities | 12 Months Ended | ||||||||
Nov. 02, 2013 | |||||||||
Payables And Accruals [Abstract] | ' | ||||||||
Accrued Expenses and Other Current Liabilities | ' | ||||||||
NOTE 9 | Accrued Expenses and Other Current Liabilities | ||||||||
Accrued expenses and other current liabilities are comprised of the following: | |||||||||
November 2, 2013 | November 3, 2012 | ||||||||
Accrued warranty expense | $ | 75,000 | $ | 75,000 | |||||
Accrued legal | — | 18,000 | |||||||
Accrued taxes | 235,490 | 159,014 | |||||||
Other accrued expenses | 303,878 | 262,506 | |||||||
Total accrued expenses and other current liabilities | $ | 614,368 | $ | 514,520 | |||||
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||
Nov. 02, 2013 | |||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||
Income Taxes | ' | ||||||||
NOTE 10 | Income Taxes | ||||||||
The Company computes income tax expense using the liability method. Under this method, deferred income taxes are provided, to the extent considered realizable by management, for basis differences of assets and liabilities for financial reporting and income tax purposes. | |||||||||
The Company follows guidance issued by the Financial Accounting Standards Board (“FASB”) with respect to accounting for uncertainty in income taxes. A tax position is recognized as a benefit only if it is “more-likely-than-not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more-likely-than-not” test, no tax benefit is recorded. | |||||||||
The Company and its subsidiaries are subject to U.S. federal income tax, as well as income tax of the state of Florida. The Company’s income tax returns for the past three years are subject to examination by tax authorities, and may change upon examination. The Company does not expect the total amount of unrecognized tax benefits to significantly change in the next 12 months. | |||||||||
The Company recognizes interest and/or penalties related to income tax matters in income tax expense. The Company did not reflect any amounts for interest and penalties in its 2013 or 2012 statements of operations, nor are any amounts accrued for interest and penalties at November 2, 2013 or November 3, 2012. | |||||||||
The provision for income taxes for the years ended consists of the following: | |||||||||
November 2, 2013 | November 3, 2012 | ||||||||
Current tax benefit: | |||||||||
Federal | $ | (6,318 | ) | $ | — | ||||
State | — | — | |||||||
(6,318 | ) | — | |||||||
Deferred tax benefit | 652,902 | 10,034 | |||||||
Valuation allowance | (652,902 | ) | (10,034 | ) | |||||
Income tax benefit | $ | (6,318 | ) | $ | — | ||||
The following table shows the reconciliation between the statutory federal income tax rate and the actual provision for income taxes for the years ended: | |||||||||
November 2, 2013 | November 3, 2012 | ||||||||
Provision - federal statutory tax rate | $ | 251,868 | $ | 16,918 | |||||
Increase (decrease) resulting from: | |||||||||
State taxes, net of federal tax benefit | 26,891 | 1,947 | |||||||
Permanent differences: | |||||||||
Tax exempt interest | — | (1,317 | ) | ||||||
Stock option expirations | 225,860 | — | |||||||
Changes in DTA valuation allowance | (652,902 | ) | (10,034 | ) | |||||
Other | 141,965 | (7,514 | ) | ||||||
Income tax benefit | $ | (6,318 | ) | $ | — | ||||
The types of temporary differences between the tax bases of assets and liabilities and their financial reporting amounts and the related deferred tax assets and deferred tax liabilities are as follows: | |||||||||
November 2, 2013 | November 3, 2012 | ||||||||
Deferred tax assets: | |||||||||
Allowance for doubtful accounts | $ | 87,261 | $ | 87,261 | |||||
Inventories | 1,164,353 | 1,428,743 | |||||||
Carrying value of other investments | 1,834,434 | 1,799,252 | |||||||
Accrued expenses | 44,271 | 42,275 | |||||||
Stock-based compensation | 32,382 | 276,087 | |||||||
Net operating loss carryforwards | 438,632 | 552,877 | |||||||
Valuation allowance | (1,465,233 | ) | (2,118,135 | ) | |||||
Total deferred tax assets | 2,136,100 | 2,068,360 | |||||||
Deferred tax liabilities: | |||||||||
Depreciation | (32,784 | ) | (30,274 | ) | |||||
State income tax refunds | (29,598 | ) | (57,605 | ) | |||||
Amortization | (58,810 | ) | (52,105 | ) | |||||
Prepaid expenses | (18,908 | ) | (11,376 | ) | |||||
Net deferred tax assets | $ | 1,996,000 | $ | 1,917,000 | |||||
At November 2, 2013, the Company has unused net operating loss carry forwards totaling approximately $1,200,000 that may be applied against taxable income. If not used, the net operating loss carry forwards of $300,000 and $900,000 will expire in 2031 and 2032 respectively. | |||||||||
These amounts are included in the accompanying consolidated balance sheets under the following captions: | |||||||||
November 2, 2013 | November 3, 2012 | ||||||||
Current assets: | |||||||||
Deferred tax assets | $ | 1,295,882 | $ | 1,558,278 | |||||
Deferred tax liabilities | (157,523 | ) | (127,468 | ) | |||||
Valuation allowance | (481,898 | ) | (751,065 | ) | |||||
Net current deferred taxes | 656,461 | 679,745 | |||||||
Non-current assets: | |||||||||
Deferred tax assets | 2,414,469 | 2,686,703 | |||||||
Deferred tax liabilities | (91,595 | ) | (82,379 | ) | |||||
Valuation allowance | (983,335 | ) | (1,367,069 | ) | |||||
Net non-current deferred taxes | 1,339,539 | 1,237,255 | |||||||
Net deferred tax asset | $ | 1,996,000 | $ | 1,917,000 | |||||
In assessing the ability to realize a portion of the deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. In fiscal 2013 and 2012 the Company has determined that, due to significant negative evidence as a result of losses in numerous consecutive years through 2011, a valuation reserve is required to reduce the Company’s net deferred taxes to a level supportable by certain tax planning strategies that could be enacted to realize deferred tax assets, if necessary. | |||||||||
The primary tax planning strategy is the potential sale of real estate, primarily land not currently used in the operations of the Company, to generate taxable gains. The Company has assessed that these strategies could result in the realization of approximately $2.0 million of deferred tax assets. The amount of deferred tax assets above this amount are reserved with a valuation allowance. The valuation allowance was approximately $1.5 million at November 2, 2013 and $2.1 at November 3, 2012. | |||||||||
The Company’s tax planning strategies include estimates as to the amount of gains on sales of properties that could be realized. The Company believes these amounts are reasonable and supportable but, if circumstances change, these amounts could be affected which would impact the amount of net deferred taxes which would be supportable. The Company will continue to monitor these matters at each future reporting period. |
Stockholders_Equity
Stockholders' Equity | 12 Months Ended | |
Nov. 02, 2013 | ||
Equity [Abstract] | ' | |
Stockholders' Equity | ' | |
NOTE 11 | Stockholders’ Equity | |
Authorized preferred stock may be issued in series with rights and preferences designated by the Board of Directors at the time it authorizes the issuance of such stock. The Company has never issued any preferred stock. Treasury stock is recorded at cost and is presented as a reduction of stockholders’ equity in the accompanying consolidated financial statements. The Company did not repurchase any shares of its common stock during fiscal years 2013 or 2012. |
Stock_Option_Plan
Stock Option Plan | 12 Months Ended | ||||||||||||||||||||||
Nov. 02, 2013 | |||||||||||||||||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ||||||||||||||||||||||
Stock Option Plan | ' | ||||||||||||||||||||||
NOTE 12 | Stock Option Plan | ||||||||||||||||||||||
In June 2011, the Company’s Board of Directors adopted and the Company’s shareholders later approved, the Nobility Homes, Inc. 2011 Stock Incentive Plan (the “Plan”), providing for the issuance of options to purchase shares of common stock, stock appreciation rights and other stock-based awards to employees and non-employee directors. A total of 300,000 shares were reserved for issuance under the Plan, all of which may be issued pursuant to the exercise of incentive stock options. At November 2, 2013, options available for future grant under the plan were 300,000 and no options were outstanding. | |||||||||||||||||||||||
The Company has 30,400 stock options outstanding that were granted pursuant to individual award agreements outside of the 2011 Plan. The Company does not expect to award additional stock options outside of the 2011 Plan in the future. | |||||||||||||||||||||||
The Company measures the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award. The cost is to be recognized over the period during which an employee is required to provide service in exchange for the award (usually the vesting period). The grant date fair value of employee share options and similar instruments will be estimated using option-pricing models adjusted for the unique characteristics of those instruments (unless observable market prices for the same or similar instruments are available). If an equity award is modified after the grant date, incremental compensation cost will be recognized in an amount equal to the excess of the fair value of the modified award over the fair value of the original award immediately before the modification. During fiscal years 2013 and 2012, the Company recognized approximately $13,500 and $39,100 in compensation cost related to stock options. | |||||||||||||||||||||||
A summary of information with respect to options granted is as follows: | |||||||||||||||||||||||
Number of | Stock Option Price | Weighted | Aggregate | ||||||||||||||||||||
Shares | Range | Average | Intrinsic | ||||||||||||||||||||
Exercise | Value | ||||||||||||||||||||||
Price | |||||||||||||||||||||||
Outstanding at November 5, 2011 | 95,400 | $7.91 - 26.56 | $ | 21.12 | |||||||||||||||||||
Granted | — | — | — | ||||||||||||||||||||
Exercised | — | — | — | ||||||||||||||||||||
Canceled | (41,250 | ) | 7.91 - 26.56 | 23.66 | |||||||||||||||||||
Outstanding at November 3, 2012 | 54,150 | 7.91 - 26.56 | 19.19 | ||||||||||||||||||||
Granted | — | — | — | ||||||||||||||||||||
Exercised | — | — | — | ||||||||||||||||||||
Canceled | (23,750 | ) | 26.38 | 26.38 | |||||||||||||||||||
Outstanding at November 2, 2013 | 30,400 | 7.91 - 18.50 | $ | 13.58 | $ | 8,310 | |||||||||||||||||
The aggregate intrinsic value in the table above represents total intrinsic value (of options in the money), which is the difference between the Company’s closing stock price on the last trading day of fiscal year 2013 and the exercise price times the number of shares, that would have been received by the option holders had the option holders exercised their options on November 2, 2013. | |||||||||||||||||||||||
The following table summarizes information about the outstanding stock options at November 2, 2013: | |||||||||||||||||||||||
Options Outstanding | Options Exercisable | ||||||||||||||||||||||
Exercise | Shares | Weighted | Weighted | Number | Weighted | ||||||||||||||||||
Prices | Outstanding | Average | Average | Exercisable | Average | ||||||||||||||||||
Remaining | Exercise Price | Exercise Price | |||||||||||||||||||||
Contractual | |||||||||||||||||||||||
Life (years) | |||||||||||||||||||||||
$18.50 | 15,250 | 1 | $ | 18.5 | 15,250 | $ | 18.5 | ||||||||||||||||
7.91 | 8,150 | 2 | 7.91 | 5,705 | 7.91 | ||||||||||||||||||
10.45 | 3,500 | 3 | 10.45 | 1,575 | 10.45 | ||||||||||||||||||
8.49 | 3,500 | 4 | 8.49 | 875 | 8.49 | ||||||||||||||||||
30,400 | 1.8 | $ | 13.58 | 23,405 | $ | 15 | |||||||||||||||||
The fair value of each option is determined using the Black-Scholes option-pricing model which values options based on the stock price at the grant date, the expected life of the option, the estimated volatility of the stock, expected dividend payments, and the risk-free interest rate over the expected life of the option. The dividend yield was calculated by dividing the current annualized dividend by the option exercise price for each grant. The expected volatility was determined considering the Company’s historical stock prices for the fiscal year the grant occurred and prior fiscal years for a period equal to the expected life of the option. The risk-free interest rate was the rate available on zero coupon U.S. government obligations with a term equal to the expected life of the option. The expected life of the option was estimated based on the exercise history from previous grants. | |||||||||||||||||||||||
As of November 2, 2013, there is $12,914 of total unrecognized compensation cost related to non-vested share based compensation arrangements granted under the Plan. That cost is expected to be recognized over a weighted average period of 2.49 years. |
Employee_Benefit_Plan
Employee Benefit Plan | 12 Months Ended | |
Nov. 02, 2013 | ||
Compensation And Retirement Disclosure [Abstract] | ' | |
Employee Benefit Plan | ' | |
NOTE 13 | Employee Benefit Plan | |
The Company has a defined contribution retirement plan (the “Plan”) qualifying under Section 401(k) of the Internal Revenue Code. The Plan covers employees who have met certain service requirements. The Company makes a discretionary matching contribution of up to 20% of an employee’s contribution, up to a maximum of 6% of an employee’s compensation. No contribution expense was charged to operations in fiscal years 2013 and 2012. |
Commitments_and_Contingent_Lia
Commitments and Contingent Liabilities | 12 Months Ended | ||||
Nov. 02, 2013 | |||||
Commitments And Contingencies Disclosure [Abstract] | ' | ||||
Commitments and Contingent Liabilities | ' | ||||
NOTE 14 | Commitments and Contingent Liabilities | ||||
Operating Leases – The Company leases the property for several Prestige retail sales centers from various unrelated entities under operating lease agreements expiring through April 2016. The Company also leases certain equipment under unrelated operating leases. These leases have varying renewal options. Total rent expense for operating leases, including those with terms of less than one year, amounted to $102,833 and $115,673 in fiscal year 2013 and 2012, respectively. | |||||
Future minimum payments by year and in the aggregate, under the aforementioned leases and other non-cancelable operating leases with initial or remaining terms in excess of one year, as of November 2, 2013 are as follows for the fiscal years ending: | |||||
2014 | $ | 45,689 | |||
2015 | $ | 25,680 | |||
2016 | $ | 8,560 | |||
Majestic 21 – On May 20, 2009, the Company became a 50% guarantor on a $5 million note payable entered into by Majestic 21, a joint venture in which the Company owns a 50% interest. This guarantee was a requirement of the bank that provided the $5 million loan to Majestic 21. The $5 million guarantee of Majestic 21’s debt is for the life of the note which matures on the earlier of May 31, 2019 or when the principal balance is less than $750,000. The amount of the guarantee declines with the amortization and repayment of the loan. As collateral for the loan, 21st Mortgage Corporation (our joint venture partner) has granted the lender a security interest in a pool of loans encumbering homes sold by Prestige Homes Centers, Inc. If the pool of loans securing this note should decrease in value so that the notes outstanding principal balance is in excess of 80% of the principal balance of the pool of loans, then Majestic 21 would have to pay down the note’s principal balance to an amount that is no more than 80% of the principal balance of the pool of loans. The Company and 21st Mortgage Corporation are obligated jointly to contribute the amount necessary to bring the loan balance back down to 80% of the collateral provided. We do not anticipate any required contributions as the pool of loans securing the note have historically been in excess of 100% of the collateral value. As of November 2, 2013, the outstanding principal balance of the note was $2,034,100 and the amount of collateral held by our joint venture partner for the Majestic 21 note payable was $2,791,316. Should the collateral not be sufficient, the Company’s maximum exposure at November 2, 2013, would be 50% or $1,017,050 of the outstanding principal balance. Based upon management’s analysis, the fair value of the guarantee is not material and as a result, no liability for the guarantee has been recorded in the accompanying balance sheets of the Company. | |||||
On November 2, 2013 there was approximately $171,385 in loan loss reserves or 0.89% of the portfolio in Majestic 21. The Majestic 21 joint venture partnership is monitoring loan loss reserves on a monthly basis and is adjusting the loan loss reserves as necessary. The Majestic 21 joint venture is reflected on 21st Mortgage Corporation’s financial statements which are included in the financial statements of its ultimate parent which is a public company. Management believes the loan loss reserves are adequate based upon its review of the Majestic 21 joint venture partnership’s financial statements. | |||||
Other Contingent Liabilities – Certain claims and suits arising in the ordinary course of business have been filed or are pending against the Company. In the opinion of management, the ultimate outcome of these matters will not have a material adverse effect on the Company’s financial position, results of operations or cash flows. Accordingly, the Company has not made any accrual provisions for litigation in the accompanying consolidated financial statements. | |||||
The Company does not maintain casualty insurance on some of its property, including the inventory at our retail centers, our plant machinery and plant equipment and is at risk for those types of losses. |
Reporting_Entity_and_Significa1
Reporting Entity and Significant Accounting Policies (Policies) | 12 Months Ended | ||||||||
Nov. 02, 2013 | |||||||||
Accounting Policies [Abstract] | ' | ||||||||
Description of Business and Principles of Consolidation | ' | ||||||||
Description of Business and Principles of Consolidation – The consolidated financial statements include the accounts of Nobility Homes, Inc. (“Nobility”), its wholly-owned subsidiaries, Prestige Home Centers, Inc. (“Prestige”) Nobility Parks I, LLC, Nobility Parks II, LLC and Prestige’s wholly-owned subsidiaries, Mountain Financial, Inc., an independent insurance agency and mortgage broker, and Majestic Homes, Inc., (collectively the “Company”). The Company is engaged in the manufacture and sale of manufactured and modular homes to various dealerships, including its own retail sales centers, and manufactured housing communities throughout Florida. The Company has one manufacturing plant in operation that is located in Ocala, Florida. At November 2, 2013 Prestige operated ten Florida retail sales centers: Ocala (2), Chiefland, Auburndale, Inverness, Hudson, Tavares, Yulee, Panama City and Punta Gorda. | |||||||||
All intercompany accounts and transactions have been eliminated in consolidation. The consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP). | |||||||||
Use of Estimates | ' | ||||||||
Use of Estimates – The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying disclosures. These estimates and assumptions are based upon management’s best knowledge of current events and actions that the Company may take in the future. The Company is subject to uncertainties such as the impact of future events, economic, environmental and political factors and changes in the Company’s business environment; therefore, actual results could differ from these estimates. Accordingly, the accounting estimates used in the preparation of the Company’s consolidated financial statements will change as new events occur, as more experience is acquired, as additional information is obtained and as the Company’s operating environment changes. Changes in estimates are made when circumstances warrant. Such changes in estimates and refinements in estimation methodologies are reflected in the reported financial condition and results of operations; if material, the effects of changes in estimates are disclosed in the notes to the consolidated financial statements. Significant estimates and assumptions by management affect: valuation of pre-owned homes, the allowance for doubtful accounts, the carrying value of long-lived assets, the provision for income taxes and related deferred tax accounts, certain accrued expenses and contingencies, warranty reserve and stock-based compensation. | |||||||||
Fiscal Year | ' | ||||||||
Fiscal Year – The Company’s fiscal year ends on the first Saturday on or after October 31. The years ended November 2, 2013 and November 3, 2012 each consisted of fifty-two week periods. | |||||||||
Revenue Recognition | ' | ||||||||
Revenue Recognition – The Company recognizes revenue from its retail sales of new manufactured homes upon the occurrence of the following: | |||||||||
• | its receipt of a down payment, | ||||||||
• | construction of the home is complete, | ||||||||
• | home has been delivered and set up at the retail home buyer’s site, and title has been transferred to the retail home buyer, | ||||||||
• | remaining funds have been released by the finance company (financed sales transaction), remaining funds have been committed by the finance company by an agreement with respect to financing obtained by the customer, usually in the form of a written approval for permanent home financing received from a lending institution, (financed construction sales transaction) or cash has been received from the home buyer (cash sales transaction), and | ||||||||
• | completion of any other significant obligations. | ||||||||
The Company recognizes revenue from the sale of the repurchased homes upon transfer of title to the new purchaser. | |||||||||
The Company recognizes revenues from its independent dealers upon receiving wholesale floor plan financing or establishing retail credit approval for terms, shipping of the home, and transferring title and risk of loss to the independent dealer. | |||||||||
The Company recognizes revenues from its wholly-owned subsidiary, Mountain Financial, Inc., as follows: commission income (and fees in lieu of commissions) is recorded as of the effective date of insurance coverage or the billing date, whichever is later. Commissions on premiums billed and collected directly by insurance companies are recorded as revenue when received which, in many cases, is the Company’s first notification of amounts earned due to the lack of policy and renewal information. Contingent commissions are recorded as revenue when received. Contingent commissions are commissions paid by insurance underwriters and are based on the estimated profit and/or overall volume of business placed with the underwriter. The data necessary for the calculation of contingent commissions cannot be reasonably obtained prior to the receipt of the commission which, in many cases, is the Company’s first notification of amounts earned. The Company provides appropriate reserves for policy cancellations based on numerous factors, including past transaction history with customers, historical experience, and other information, which is periodically evaluated and adjusted as deemed necessary. In the opinion of management, no reserve was deemed necessary for policy cancellations at November 2, 2013 or November 3, 2012 | |||||||||
Revenues by Products and Services | ' | ||||||||
Revenues by Products and Services – Revenues by net sales from manufactured housing, insurance agent commissions, and construction lending operations for the years ended November 2, 2013 and November 3, 2012 are as follows: | |||||||||
2013 | 2012 | ||||||||
Manufactured housing | $ | 15,495,710 | $ | 12,815,516 | |||||
Pre-owned homes-FRSA | 1,706,056 | 2,310,588 | |||||||
Trade-in and other pre-owned homes | 1,089,536 | 465,884 | |||||||
Insurance agent commissions | 204,960 | 211,076 | |||||||
Construction lending operations | 29,688 | 31,907 | |||||||
Total net sales | $ | 18,525,950 | $ | 15,834,971 | |||||
Cash and Cash Equivalents | ' | ||||||||
Cash and Cash Equivalents – The Company considers all highly liquid debt instruments purchased with an original maturity of three months or less to be cash equivalents. | |||||||||
Accounts Receivable | ' | ||||||||
Accounts Receivable – Accounts receivable are stated at net realizable value. An allowance for doubtful accounts is provided based on prior collection experiences and management’s analysis of specific accounts. At November 2, 2013 and November 3, 2012, in the opinion of management, all accounts were considered fully collectible and, accordingly, no allowance was deemed necessary. | |||||||||
Accounts receivable fluctuates due to the number of homes sold to independent dealers. The Company recognizes revenues from its independent dealers upon receiving wholesale floor plan financing or establishing retail credit approval for terms, shipping of the home, and transferring title and risk of loss to the independent dealer. | |||||||||
Investments | ' | ||||||||
Investments – The Company’s investments consist of money market accounts as well as equity securities of a public company. Investments with maturities of less than one year are classified as short-term investments. Debt securities that the Company has the positive intent and ability to hold until maturity are accounted for as “held-to-maturity” securities and are carried at amortized cost. Premiums and discounts on investments in debt securities are amortized over the contractual lives of those securities. The method of amortization results in a constant effective yield on those securities (the interest method). The Company’s equity investment in a public company is classified as “available-for-sale” and carried at fair value. Unrealized gains on the available-for-sale securities, net of taxes, are recorded in accumulated other comprehensive income. | |||||||||
The Company continually reviews its investments to determine whether a decline in fair value below the cost basis is other than temporary. If the decline in fair value is judged to be other than temporary, the cost basis of the security is written down to fair value and the amount of the write-down is included in the accompanying consolidated statements of income and other comprehensive income. | |||||||||
Inventories | ' | ||||||||
Inventories – New home inventory is carried at the lower of cost or market 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 market value. | |||||||||
Pre-owned home inventory is valued at the Company’s cost to acquire the inventory plus refurbishment costs incurred to date to bring the inventory to a more saleable state. This amount is reduced by a valuation reserve which management believes results in inventory being valued at market. | |||||||||
Trade in and other pre-owned homes are stated at cost or net realizable value. Homes taken as trade-ins are recorded at estimated actual cash value which approximates wholesale value. Other pre-owned homes are recorded at cost determined on the specific identification method and acquired from the Company’s joint venture partner, Majestic 21 and remarketed. Majestic 21 reimburses the Company for all costs related to these homes. | |||||||||
Other inventory costs are determined on a first-in, first-out basis. | |||||||||
Property, Plant and Equipment | ' | ||||||||
Property, Plant and Equipment – Property, plant and equipment are stated at cost and depreciated over their estimated useful lives using the straight-line method. Routine maintenance and repairs are charged to expense when incurred. Major replacements and improvements are capitalized. Gains or losses are credited or charged to earnings upon disposition. | |||||||||
Investment in Majestic 21 | ' | ||||||||
Investment in Majestic 21 – Majestic 21 was formed in 1997 as a joint venture with our joint venture partner, an unrelated entity 21st Mortgage Corporation (“21st Mortgage”). We have been allocated our share of net income and distributions on a 50/50 basis since Majestic 21’s formation. While Majestic 21 has been deemed to be a variable interest entity, the Company only holds a 50% interest in this entity and all allocations of profit and loss are on a 50/50 basis. Since all allocations are to be made on a 50/50 basis and joint decisions with the joint venture partner are made which most significantly impact Majestic 21 economic performance therefore, the Company is not required to consolidate Majestic 21 with the accounts of Nobility Homes in accordance with FASB ASC 810. Management believes that the Company’s maximum exposure to loss as a result of its involvement with Majestic 21 is its investment in the joint venture recorded in the accounts of Nobility Homes as of November 2, 2013 and November 3, 2012. Based on management’s evaluation, there was no impairment of this investment at November 2, 2013 or November 3, 2012. | |||||||||
The Company entered into an arrangement in 2002 to repurchase certain homes. Under this arrangement or any other arrangement, the Company is not obligated to repurchase any foreclosed/repossessed units of Majestic 21 as it does not have a repurchase agreement or any other guarantees with Majestic 21. However, the Company buys back foreclosed/repossessed units and acts as a remarketing agent. It resells those units through the Company’s network of retail centers as we believe it benefits the historical loss experience of the joint venture. The only impact on the Company’s operations from this arrangement are commissions earned on the resale of these units and interest received from Majestic 21 for funds the company used to carry the units while in inventory. | |||||||||
See Note 14 for discussion of the Company’s guarantee of a $5 million note payable of Majestic 21. | |||||||||
Finance Revenue Sharing Agreement | ' | ||||||||
Finance Revenue Sharing Agreement – During fiscal year 2004, the Company transferred $250,000 from its existing joint venture in Majestic 21 in order to participate in a FRSA between 21st Mortgage Corporation, Prestige Homes, Inc., and Majestic Homes, Inc. without forming a separate entity. In connection with this FRSA, mortgage financing will be provided on manufactured homes sold through the Company’s retail centers to customers who qualify for such mortgage financing. | |||||||||
Effective December 31, 2013, 21st Mortgage Corporation informed the Company they will no longer originate loans under the terms of the FRSA due to regulatory changes. No revenue was recorded under this agreement in fiscal years 2013 or 2012. 21st Mortgage Corporation will continue to provide financing to retail customers who purchase the Company’s manufactured homes at Prestige retail sales centers. | |||||||||
Other Investments | ' | ||||||||
Other Investments – The Company has a 31.3% investment interest in Walden Woods South LLC (“Walden Woods”), which owns and operates a retirement manufactured home community located in Homosassa, Florida. The Company fully impaired its investment in Walden Woods in 2011. The majority owner of Walden Woods is the Company’s principal shareholder. | |||||||||
The Company owns 100% of a limited liability company called Nobility Parks II, LLC to hold a 48.5% interest in a retirement manufactured home community, CRF III, Ltd. (Cypress Creek) located in Winter Haven, Florida. Nobility Parks II, LLC has the right to assign some of its ownership to partners other than Nobility Homes. The Company recorded an impairment charge on its investment in Cypress Creek in 2011. | |||||||||
See further discussion of these investments in Note 5. | |||||||||
Impairment of Long-Lived Assets | ' | ||||||||
Impairment of Long-Lived Assets – In the event that facts and circumstances indicate that the carrying value of a long-lived asset may be impaired, an evaluation of recoverability is performed by comparing the estimated future undiscounted cash flows associated with the asset to the asset’s carrying amount to determine if a write-down is required. If such evaluations indicate that the future undiscounted cash flows of certain long-lived assets are not sufficient to recover the carrying value of such assets, the assets are adjusted to their fair values. | |||||||||
Customer Deposits | ' | ||||||||
Customer Deposits – A retail customer is required to make a down payment ranging from $500 to 35% of the retail contract price based upon the credit worthiness of the customer. The retail customer receives the full down payment back when the Company is not able to obtain retail financing. If the retail customer receives retail financing and decides not to go through with the retail sale, the Company can withhold 20% of the retail contract price. The Company does not receive any deposits from their independent dealers. | |||||||||
Company Owned Life Insurance | ' | ||||||||
Company Owned Life Insurance – The Company has purchased life insurance policies on certain key executives. Company owned life insurance is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement. | |||||||||
Warranty Costs | ' | ||||||||
Warranty Costs – The Company provides for a warranty as the manufactured homes are sold. Amounts related to these warranties for fiscal years 2013 and 2012 are as follows: | |||||||||
2013 | 2012 | ||||||||
Beginning accrued warranty expense | $ | 75,000 | $ | 75,000 | |||||
Less: reduction for payments | (165,627 | ) | (176,074 | ) | |||||
Plus: additions to accrual | 165,627 | 176,074 | |||||||
Ending accrued warranty expense | $ | 75,000 | $ | 75,000 | |||||
The Company’s limited warranty covers substantial defects in material or workmanship in specified components of the home including structural elements, plumbing systems, electrical systems, and heating and cooling systems which are supplied by the Company that may occur under normal use and service during a period of twelve (12) months from the date of delivery to the original homeowner, and applies to the original homeowner or any subsequent homeowner to whom this product is transferred during the duration of this twelve (12) month period. | |||||||||
The Company tracks the warranty claims per home. Based on the history of the warranty claims, the Company has determined that a majority of warranty claims usually occur within the first three months after the home is sold. The Company determines its warranty accrual using the last three months of home sales. | |||||||||
Accrued Home Setup Costs | ' | ||||||||
Accrued Home Setup Costs – Accrued home setup costs represent amounts due to vendors and/or independent contractors for various items related to the actual setup of the home on the retail home buyers’ site. These costs include appliances, air conditioners, electrical/plumbing hook-ups, furniture, insurance, impact/permit fees, land/home fees, extended service plan, freight, skirting, steps, well, septic tanks and other setup costs and are included in accrued expenses in the accompanying consolidated balance sheets. See Note 9 of “Notes to Consolidated Financial Statements”. | |||||||||
Stock-Based Compensation | ' | ||||||||
Stock-Based Compensation – At November 2, 2013, the Company has a stock incentive plan (the “Plan”) which authorizes the issuance of options to purchase common stock. Stock-based compensation is measured at the grant date based on the fair value of the award and is recognized as expense over the period during which an employee is required to provide service in exchange for the award (usually the vesting period). | |||||||||
Rebate Program | ' | ||||||||
Rebate Program – The Company has a rebate program for some dealers based upon the number and type of home purchased, which pay rebates based upon sales volume to the dealers. Volume rebates are recorded as a reduction of sales in the accompanying consolidated financial statements. The rebate liability is calculated and recognized as eligible homes are sold based upon factors surrounding the activity and prior experience of specific dealers and is included in accrued expenses in the accompanying consolidated balance sheets. | |||||||||
Advertising | ' | ||||||||
Advertising – Advertising for Prestige retail sales centers consists primarily of newspaper, radio and television advertising. All costs are expensed as incurred. Advertising expense amounted to approximately $223,100 and $222,900 for fiscal year 2013 and 2012, respectively. | |||||||||
Audit Fees | ' | ||||||||
Audit Fees – The Company generally records audit fees in the period in which services are provided. Audit fees relating to the finalization of the audit generally will be reflected in the financial statements of the subsequent year. Due to certain issues, primarily relating to FRSA accounting matters that occurred during 2011 the Company incurred significant audit fees in financial statements for fiscal year 2012 and 2013 relating to the finalization of the fiscal 2011 audit. Audit fees which related to the completion of the 2011 audit were $83,891 and $279,891 in 2013 and 2012, respectively. | |||||||||
Income Taxes | ' | ||||||||
Income Taxes – The Company accounts for income taxes utilizing the asset and liability method. This approach requires the recognition of deferred tax assets and liabilities for the expected future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. | |||||||||
Net Income per Share | ' | ||||||||
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. | |||||||||
For the year ended November 2, 2013 and November 3, 2012, options to purchase 30,400 and 54,150 shares, respectively, have been excluded from the computation of potentially dilutive securities as the effect on net income per share is antidilutive. | |||||||||
Shipping and Handling Costs | ' | ||||||||
Shipping and Handling Costs – Net sales include the revenue related to shipping and handling charges billed to customers. The related costs associated with shipping and handling is included as a component of cost of goods sold. | |||||||||
Comprehensive Income | ' | ||||||||
Comprehensive Income – Comprehensive income includes net income as well as other comprehensive income. The Company’s other comprehensive income consists of unrealized gains on available-for-sale securities, net of related taxes. | |||||||||
Segments | ' | ||||||||
Segments – The Company’s chief operating decision maker is its Chief Executive Officer, who reviews financial information on a company-wide or consolidated basis. Accordingly, the Company accounts for its operations in accordance with FAS ASC 280, “Segment Reporting.” No segment disclosures have been made as the Company considers its business activities as a single segment. | |||||||||
Major Customers | ' | ||||||||
Major Customers – Sales to two publicly traded REIT’s which own multiple retirement Communities in our market area accounted for $2,001,730 or 11 % and $3,469,130 or 19% of our total sales in fiscal year 2013 and $1,952,795 or 12% and $3,416,285 or 22% of our total sales in fiscal year 2012. | |||||||||
Concentration of Credit Risk | ' | ||||||||
Concentration of Credit Risk – The Company’s financial instruments that are exposed to concentrations of credit risk consist primarily of cash and cash equivalents, short-term and long-term investments and accounts receivable. At times, the Company’s deposits may exceed federally insured limits. However, the Company has not experienced any losses in such accounts and management believes the Company is not exposed to any significant credit risk on these accounts. The majority of the Company’s sales are credit sales which are made primarily to customers whose ability to pay is dependent upon the industry economics prevailing in the areas where they operate; however, concentrations of credit risk with respect to accounts receivables is limited due to generally short payment terms. The Company also performs ongoing credit evaluations of its customers to help further reduce credit risk. The Company maintains reserves for potential credit losses when deemed necessary and such losses have historically been within management’s expectations. | |||||||||
Recently Issued Accounting Pronouncements | ' | ||||||||
Recently Issued Accounting Pronouncements – From time to time, new accounting pronouncements are issued by the FASB and other regulatory bodies that are adopted by the Company as of the specified effective date. Unless otherwise discussed, management believes that the impact of recently issued standards, which are not yet effective, will not have a material impact on the Company’s Consolidated Financial Statements upon adoption. | |||||||||
Fair Value Measurements | ' | ||||||||
FASB ASC No. 820 “Fair Value Measurements” 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 No. 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 No. 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. |
Reporting_Entity_and_Significa2
Reporting Entity and Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||
Nov. 02, 2013 | |||||||||
Accounting Policies [Abstract] | ' | ||||||||
Revenues by Products and Services | ' | ||||||||
Revenues by Products and Services – Revenues by net sales from manufactured housing, insurance agent commissions, and construction lending operations for the years ended November 2, 2013 and November 3, 2012 are as follows: | |||||||||
2013 | 2012 | ||||||||
Manufactured housing | $ | 15,495,710 | $ | 12,815,516 | |||||
Pre-owned homes-FRSA | 1,706,056 | 2,310,588 | |||||||
Trade-in and other pre-owned homes | 1,089,536 | 465,884 | |||||||
Insurance agent commissions | 204,960 | 211,076 | |||||||
Construction lending operations | 29,688 | 31,907 | |||||||
Total net sales | $ | 18,525,950 | $ | 15,834,971 | |||||
Summary of Amounts Related to Limited Warranty | ' | ||||||||
are sold. Amounts related to these warranties for fiscal years 2013 and 2012 are as follows: | |||||||||
2013 | 2012 | ||||||||
Beginning accrued warranty expense | $ | 75,000 | $ | 75,000 | |||||
Less: reduction for payments | (165,627 | ) | (176,074 | ) | |||||
Plus: additions to accrual | 165,627 | 176,074 | |||||||
Ending accrued warranty expense | $ | 75,000 | $ | 75,000 | |||||
Investments_Tables
Investments (Tables) | 12 Months Ended | ||||||||||||||||
Nov. 02, 2013 | |||||||||||||||||
Investments Debt And Equity Securities [Abstract] | ' | ||||||||||||||||
Summary of Short-term Investments | ' | ||||||||||||||||
The following is a summary of short-term investments (available for sale): | |||||||||||||||||
November 2, 2013 | |||||||||||||||||
Amortized Cost | Gross | Gross | Estimated Fair | ||||||||||||||
Unrealized | Unrealized | Value | |||||||||||||||
Gains | Losses | ||||||||||||||||
Equity securities in a public company | $ | 167,930 | $ | 287,302 | $ | — | $ | 455,232 | |||||||||
November 3, 2012 | |||||||||||||||||
Amortized Cost | Gross | Gross | Estimated Fair | ||||||||||||||
Unrealized | Unrealized | Value | |||||||||||||||
Gains | Losses | ||||||||||||||||
Equity securities in a public company | $ | 167,930 | $ | 153,016 | $ | — | $ | 320,946 | |||||||||
Fair_Values_of_Financial_Inves1
Fair Values of Financial Investments (Tables) | 12 Months Ended | ||||||||||||
Nov. 02, 2013 | |||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||
Summary of Financial Assets and Liabilities Carried at Fair Value | ' | ||||||||||||
The following table represents the Company’s financial assets and liabilities which are carried at fair value at November 2, 2013 and November 3, 2012. | |||||||||||||
November 2, 2013 | |||||||||||||
Level 1 | Level 2 | Level 3 | |||||||||||
Equity securities in a public company | $ | 455,232 | $ | — | $ | — | |||||||
Non-recurring fair value investment | — | — | 467,934 | ||||||||||
$ | 455,232 | $ | — | $ | 467,934 | ||||||||
November 3, 2012 | |||||||||||||
Level 1 | Level 2 | Level 3 | |||||||||||
Equity securities in a public company | $ | 320,946 | $ | — | $ | — | |||||||
Non-recurring fair value investment | — | — | 757,924 | ||||||||||
$ | 320,946 | $ | — | $ | 757,924 | ||||||||
Other_Investments_Tables
Other Investments (Tables) | 12 Months Ended | ||||||||
Nov. 02, 2013 | |||||||||
Summarized Financial Information of Company's Joint Venture | ' | ||||||||
The following is summarized financial information of the Company’s joint venture: | |||||||||
November 2, | November 3, | ||||||||
2013 | 2012 | ||||||||
Total Assets | $ | 16,569,995 | $ | 15,368,882 | |||||
Total Liabilities | $ | 12,129,322 | $ | 11,170,792 | |||||
Total Equity | $ | 4,440,673 | $ | 4,198,091 | |||||
Net Income | $ | 242,583 | $ | 190,072 | |||||
Summary of Change in Investments | ' | ||||||||
The following table summarizes the change in the investments for fiscal year 2013 and 2012: | |||||||||
Walden | Cypress | ||||||||
Woods | Creek | ||||||||
Investment at November 5, 2011 | $ | — | $ | 1,092,703 | |||||
Losses on investments | — | (334,779 | ) | ||||||
Investment at November 3, 2012 | — | 757,924 | |||||||
Losses on investment | — | (289,990 | ) | ||||||
Investment at November 2, 2013 | $ | — | $ | 467,934 | |||||
Walden Woods and Cypress Creek [Member] | ' | ||||||||
Summarized Financial Information of Company's Joint Venture | ' | ||||||||
The following is summarized financial information of Walden Woods and Cypress Creek as of September 30, 2013 and September 30, 2012*: | |||||||||
September 30, | September 30, | ||||||||
2013 | 2012 | ||||||||
Total Assets | $ | 13,559,275 | $ | 14,159,361 | |||||
Total Liabilities | $ | 15,231,044 | $ | 14,829,587 | |||||
Total Equity | $ | (1,671,769 | ) | $ | (670,226 | ) | |||
* | Due to Walden Woods, and Cypress Creek having a calendar year-end, the summarized financial information provided is from their most recent quarter. |
Inventories_Tables
Inventories (Tables) | 12 Months Ended | ||||||||||||
Nov. 02, 2013 | |||||||||||||
Inventory Disclosure [Abstract] | ' | ||||||||||||
Summary of Inventories | ' | ||||||||||||
A breakdown of the elements of inventory at November 2, 2013 and November 3, 2012 is as follows: | |||||||||||||
November 2, | November 3, | ||||||||||||
2013 | 2012 | ||||||||||||
Raw materials | $ | 571,621 | $ | 505,122 | |||||||||
Work-in-process | 108,641 | 90,444 | |||||||||||
Finished homes | 4,344,117 | 5,140,200 | |||||||||||
Model home furniture and others | 19,437 | 46,114 | |||||||||||
Inventories, net | $ | 5,043,816 | $ | 5,781,880 | |||||||||
Pre-owned homes * | $ | 9,215,590 | $ | 10,335,524 | |||||||||
Inventory impairment reserve | (2,711,595 | ) | (3,401,527 | ) | |||||||||
6,503,995 | 6,933,997 | ||||||||||||
Less homes expected to sell in 12 months | (2,187,598 | ) | (2,503,164 | ) | |||||||||
Pre-owned homes, long-term | $ | 4,316,397 | $ | 4,430,833 | |||||||||
* | The following table summarizes a breakdown of pre-owned homes inventory for fiscal year 2013 and 2012: | ||||||||||||
FRSA pre-owned | Trade in and other | Total pre-owned | |||||||||||
homes | pre-owned homes | homes | |||||||||||
Balance at November 5, 2011 | $ | 11,886,362 | $ | 970,784 | $ | 12,857,146 | |||||||
Purchased | 275,572 | 167,281 | 442,853 | ||||||||||
Sold | (2,530,643 | ) | (433,832 | ) | (2,964,475 | ) | |||||||
Balance at November 2, 2012 | 9,631,291 | 704,233 | 10,335,524 | ||||||||||
Purchased | — | 1,399,205 | 1,399,205 | ||||||||||
Sold | (1,718,453 | ) | (800,686 | ) | (2,519,139 | ) | |||||||
Balance at November 2, 2013 | $ | 7,912,838 | $ | 1,302,752 | $ | 9,215,590 | |||||||
Analysis of Inventory Impairment Reserve | ' | ||||||||||||
An analysis of the inventory impairment reserve at November 2, 2013 and November 3, 2012 is as follows: | |||||||||||||
November 2, | November 3, | ||||||||||||
2013 | 2012 | ||||||||||||
Beginning inventory impairment reserve | $ | 3,401,527 | $ | 4,098,824 | |||||||||
Less: Reductions for homes sold | (393,138 | ) | (475,031 | ) | |||||||||
Inventory holding costs | (302,497 | ) | (251,067 | ) | |||||||||
Plus: Additions to impairment reserve | 5,703 | 28,801 | |||||||||||
Ending inventory impairment reserve | $ | 2,711,595 | $ | 3,401,527 | |||||||||
Properties_Plant_and_Equipment1
Properties, Plant and Equipment (Tables) | 12 Months Ended | ||||||||||
Nov. 02, 2013 | |||||||||||
Property Plant And Equipment [Abstract] | ' | ||||||||||
Property, Plant and Equipment with Estimated Useful Lives and Related Accumulated Depreciation | ' | ||||||||||
Property, plant and equipment, along with their estimated useful lives and related accumulated depreciation are summarized as follows: | |||||||||||
Range of Lives in Years | November 2, 2013 | November 3, 2012 | |||||||||
Land | — | $ | 2,349,383 | $ | 2,349,383 | ||||||
Land improvements | 20-Oct | 839,912 | 872,977 | ||||||||
Buildings and improvements | 15-40 | 2,538,248 | 2,571,628 | ||||||||
Machinery and equipment | 10-Mar | 1,061,463 | 1,131,687 | ||||||||
Furniture and fixtures | 10-Mar | 437,434 | 489,979 | ||||||||
7,226,440 | 7,415,654 | ||||||||||
Less accumulated depreciation | (3,494,977 | ) | (3,614,102 | ) | |||||||
$ | 3,731,463 | $ | 3,801,552 | ||||||||
Other_Assets_Tables
Other Assets (Tables) | 12 Months Ended | ||||||||
Nov. 02, 2013 | |||||||||
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | ' | ||||||||
Summary of Other Assets | ' | ||||||||
Other assets are comprised of the following: | |||||||||
November 2, 2013 | November 3, 2012 | ||||||||
Cash surrender value of life insurance | $ | 2,648,197 | $ | 2,531,253 | |||||
Other | 156,287 | 156,287 | |||||||
Total other assets | $ | 2,804,484 | $ | 2,687,540 | |||||
Accrued_Expenses_and_Other_Cur1
Accrued Expenses and Other Current Liabilities (Tables) | 12 Months Ended | ||||||||
Nov. 02, 2013 | |||||||||
Payables And Accruals [Abstract] | ' | ||||||||
Summary of Accrued Expenses and Other Current Liabilities | ' | ||||||||
Accrued expenses and other current liabilities are comprised of the following: | |||||||||
November 2, 2013 | November 3, 2012 | ||||||||
Accrued warranty expense | $ | 75,000 | $ | 75,000 | |||||
Accrued legal | — | 18,000 | |||||||
Accrued taxes | 235,490 | 159,014 | |||||||
Other accrued expenses | 303,878 | 262,506 | |||||||
Total accrued expenses and other current liabilities | $ | 614,368 | $ | 514,520 | |||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||
Nov. 02, 2013 | |||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||
Summary of Provision for Income Taxes | ' | ||||||||
The provision for income taxes for the years ended consists of the following: | |||||||||
November 2, 2013 | November 3, 2012 | ||||||||
Current tax benefit: | |||||||||
Federal | $ | (6,318 | ) | $ | — | ||||
State | — | — | |||||||
(6,318 | ) | — | |||||||
Deferred tax benefit | 652,902 | 10,034 | |||||||
Valuation allowance | (652,902 | ) | (10,034 | ) | |||||
Income tax benefit | $ | (6,318 | ) | $ | — | ||||
Reconciliation Between Statutory Federal Income Tax Rate and Actual Provision for Income Taxes | ' | ||||||||
The following table shows the reconciliation between the statutory federal income tax rate and the actual provision for income taxes for the years ended: | |||||||||
November 2, 2013 | November 3, 2012 | ||||||||
Provision - federal statutory tax rate | $ | 251,868 | $ | 16,918 | |||||
Increase (decrease) resulting from: | |||||||||
State taxes, net of federal tax benefit | 26,891 | 1,947 | |||||||
Permanent differences: | |||||||||
Tax exempt interest | — | (1,317 | ) | ||||||
Stock option expirations | 225,860 | — | |||||||
Changes in DTA valuation allowance | (652,902 | ) | (10,034 | ) | |||||
Other | 141,965 | (7,514 | ) | ||||||
Income tax benefit | $ | (6,318 | ) | $ | — | ||||
Deferred Tax Assets and Deferred Tax Liabilities | ' | ||||||||
The types of temporary differences between the tax bases of assets and liabilities and their financial reporting amounts and the related deferred tax assets and deferred tax liabilities are as follows: | |||||||||
November 2, 2013 | November 3, 2012 | ||||||||
Deferred tax assets: | |||||||||
Allowance for doubtful accounts | $ | 87,261 | $ | 87,261 | |||||
Inventories | 1,164,353 | 1,428,743 | |||||||
Carrying value of other investments | 1,834,434 | 1,799,252 | |||||||
Accrued expenses | 44,271 | 42,275 | |||||||
Stock-based compensation | 32,382 | 276,087 | |||||||
Net operating loss carryforwards | 438,632 | 552,877 | |||||||
Valuation allowance | (1,465,233 | ) | (2,118,135 | ) | |||||
Total deferred tax assets | 2,136,100 | 2,068,360 | |||||||
Deferred tax liabilities: | |||||||||
Depreciation | (32,784 | ) | (30,274 | ) | |||||
State income tax refunds | (29,598 | ) | (57,605 | ) | |||||
Amortization | (58,810 | ) | (52,105 | ) | |||||
Prepaid expenses | (18,908 | ) | (11,376 | ) | |||||
Net deferred tax assets | $ | 1,996,000 | $ | 1,917,000 | |||||
Accompanying Deferred Current and Non current Tax Assets and Liabilities in Consolidated Balance Sheet | ' | ||||||||
These amounts are included in the accompanying consolidated balance sheets under the following captions: | |||||||||
November 2, 2013 | November 3, 2012 | ||||||||
Current assets: | |||||||||
Deferred tax assets | $ | 1,295,882 | $ | 1,558,278 | |||||
Deferred tax liabilities | (157,523 | ) | (127,468 | ) | |||||
Valuation allowance | (481,898 | ) | (751,065 | ) | |||||
Net current deferred taxes | 656,461 | 679,745 | |||||||
Non-current assets: | |||||||||
Deferred tax assets | 2,414,469 | 2,686,703 | |||||||
Deferred tax liabilities | (91,595 | ) | (82,379 | ) | |||||
Valuation allowance | (983,335 | ) | (1,367,069 | ) | |||||
Net non-current deferred taxes | 1,339,539 | 1,237,255 | |||||||
Net deferred tax asset | $ | 1,996,000 | $ | 1,917,000 | |||||
Stock_Option_Plan_Tables
Stock Option Plan (Tables) | 12 Months Ended | ||||||||||||||||||||||
Nov. 02, 2013 | |||||||||||||||||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ||||||||||||||||||||||
Options Granted | ' | ||||||||||||||||||||||
A summary of information with respect to options granted is as follows: | |||||||||||||||||||||||
Number of | Stock Option Price | Weighted | Aggregate | ||||||||||||||||||||
Shares | Range | Average | Intrinsic | ||||||||||||||||||||
Exercise | Value | ||||||||||||||||||||||
Price | |||||||||||||||||||||||
Outstanding at November 5, 2011 | 95,400 | $7.91 - 26.56 | $ | 21.12 | |||||||||||||||||||
Granted | — | — | — | ||||||||||||||||||||
Exercised | — | — | — | ||||||||||||||||||||
Canceled | (41,250 | ) | 7.91 - 26.56 | 23.66 | |||||||||||||||||||
Outstanding at November 3, 2012 | 54,150 | 7.91 - 26.56 | 19.19 | ||||||||||||||||||||
Granted | — | — | — | ||||||||||||||||||||
Exercised | — | — | — | ||||||||||||||||||||
Canceled | (23,750 | ) | 26.38 | 26.38 | |||||||||||||||||||
Outstanding at November 2, 2013 | 30,400 | 7.91 - 18.50 | $ | 13.58 | $ | 8,310 | |||||||||||||||||
Outstanding Stock Options | ' | ||||||||||||||||||||||
The following table summarizes information about the outstanding stock options at November 2, 2013: | |||||||||||||||||||||||
Options Outstanding | Options Exercisable | ||||||||||||||||||||||
Exercise | Shares | Weighted | Weighted | Number | Weighted | ||||||||||||||||||
Prices | Outstanding | Average | Average | Exercisable | Average | ||||||||||||||||||
Remaining | Exercise Price | Exercise Price | |||||||||||||||||||||
Contractual | |||||||||||||||||||||||
Life (years) | |||||||||||||||||||||||
$18.50 | 15,250 | 1 | $ | 18.5 | 15,250 | $ | 18.5 | ||||||||||||||||
7.91 | 8,150 | 2 | 7.91 | 5,705 | 7.91 | ||||||||||||||||||
10.45 | 3,500 | 3 | 10.45 | 1,575 | 10.45 | ||||||||||||||||||
8.49 | 3,500 | 4 | 8.49 | 875 | 8.49 | ||||||||||||||||||
30,400 | 1.8 | $ | 13.58 | 23,405 | $ | 15 | |||||||||||||||||
Commitments_and_Contingent_Lia1
Commitments and Contingent Liabilities (Tables) | 12 Months Ended | ||||
Nov. 02, 2013 | |||||
Commitments And Contingencies Disclosure [Abstract] | ' | ||||
Future Minimum Payments by Year | ' | ||||
Future minimum payments by year and in the aggregate, under the aforementioned leases and other non-cancelable operating leases with initial or remaining terms in excess of one year, as of November 2, 2013 are as follows for the fiscal years ending: | |||||
2014 | $ | 45,689 | |||
2015 | $ | 25,680 | |||
2016 | $ | 8,560 |
Reporting_Entity_and_Significa3
Reporting Entity and Significant Accounting Policies - Additional Information (Detail) (USD $) | 12 Months Ended | |||
Nov. 02, 2013 | Nov. 03, 2012 | Nov. 06, 2004 | 20-May-09 | |
Segment | ||||
Retailer | ||||
Schedule Of Organization And Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' |
Number of retail centers | 10 | ' | ' | ' |
Variable Interest Entity | 50.00% | ' | ' | ' |
Impairment charges related to Investment in Majestic 21 | $0 | $0 | ' | ' |
Guarantee obligations note payable principal amount | ' | ' | ' | 5,000,000 |
Transferred from existing joint venture | ' | ' | 250,000 | ' |
Percentage of interest in investments in retirement community limited partnerships | ' | ' | ' | 50.00% |
Down payment by retail customers | 500 | ' | ' | ' |
Percentage of retail contract price | 35.00% | ' | ' | ' |
Percentage of retail contract price withhold by company | 20.00% | ' | ' | ' |
Warranty period of homes | '12 months | ' | ' | ' |
Advertising expense | 223,100 | 222,900 | ' | ' |
Audit fees | 83,891 | 279,891 | ' | ' |
Options to purchase excluded from computation of potentially dilutive securities | 30,400 | 54,150 | ' | ' |
Number of Segment | 1 | ' | ' | ' |
Nobility Parks II,LLC [Member] | ' | ' | ' | ' |
Schedule Of Organization And Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' |
Percentage of interest in investments in retirement community limited partnerships | 100.00% | ' | ' | ' |
Walden Woods [Member] | ' | ' | ' | ' |
Schedule Of Organization And Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' |
Percentage of interest in investments in retirement community limited partnerships | 31.30% | ' | ' | ' |
CRF III, Ltd [Member] | ' | ' | ' | ' |
Schedule Of Organization And Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' |
Percentage of interest in investments in retirement community limited partnerships | 48.50% | ' | ' | ' |
Majestic 21 [Member] | ' | ' | ' | ' |
Schedule Of Organization And Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' |
Variable Interest Entity | 50.00% | ' | ' | ' |
Guarantee obligations note payable principal amount | 5,000,000 | ' | ' | ' |
Percentage of interest in investments in retirement community limited partnerships | 50.00% | ' | ' | ' |
Real Estate Investment Trust One [Member] | Sales [Member] | ' | ' | ' | ' |
Schedule Of Organization And Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' |
Sales from major customers | 2,001,730 | 1,952,795 | ' | ' |
Percentage of sales from major customers | 11.00% | 12.00% | ' | ' |
Real Estate Investment Trust Two [Member] | Sales [Member] | ' | ' | ' | ' |
Schedule Of Organization And Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' |
Sales from major customers | $3,469,130 | $3,416,285 | ' | ' |
Percentage of sales from major customers | 19.00% | 22.00% | ' | ' |
Ocala Fl [Member] | ' | ' | ' | ' |
Schedule Of Organization And Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' |
Number of manufacturing plants | 1 | ' | ' | ' |
Reporting_Entity_and_Significa4
Reporting Entity and Significant Accounting Policies - Revenues by Net Sales from Manufactured Housing, Insurance Agent Commissions and Construction Lending Operations (Detail) (USD $) | 12 Months Ended | |
Nov. 02, 2013 | Nov. 03, 2012 | |
Sales Information [Line Items] | ' | ' |
Total net sales | $18,525,950 | $15,834,971 |
Manufactured Housing [Member] | ' | ' |
Sales Information [Line Items] | ' | ' |
Total net sales | 15,495,710 | 12,815,516 |
FRSA - Pre-Owned Homes [Member] | ' | ' |
Sales Information [Line Items] | ' | ' |
Total net sales | 1,706,056 | 2,310,588 |
Trade-in and Other Pre-Owned Homes [Member] | ' | ' |
Sales Information [Line Items] | ' | ' |
Total net sales | 1,089,536 | 465,884 |
Insurance Agent Commissions [Member] | ' | ' |
Sales Information [Line Items] | ' | ' |
Total net sales | 204,960 | 211,076 |
Construction Lending Operations [Member] | ' | ' |
Sales Information [Line Items] | ' | ' |
Total net sales | $29,688 | $31,907 |
Reporting_Entity_and_Significa5
Reporting Entity and Significant Accounting Policies - Summary of Amounts Related to Limited Warranty (Detail) (USD $) | 12 Months Ended | ||
Nov. 02, 2013 | Nov. 03, 2012 | Nov. 02, 2012 | |
Accounting Policies [Abstract] | ' | ' | ' |
Beginning accrued warranty expense | $75,000 | $75,000 | $75,000 |
Less: reduction for payments | -165,627 | -176,074 | ' |
Plus: additions to accrual | 165,627 | 176,074 | ' |
Ending accrued warranty expense | $75,000 | $75,000 | $75,000 |
Investments_Summary_of_Shortte
Investments - Summary of Short-term Investments (Detail) (Equity Securities in a Public Company [Member], USD $) | Nov. 02, 2013 | Nov. 03, 2012 |
Equity Securities in a Public Company [Member] | ' | ' |
Schedule of Investments [Line Items] | ' | ' |
Available-for-sale Securities, Amortized Cost | $167,930 | $167,930 |
Available-for-sale Securities, Gross Unrealized Gains | 287,302 | 153,016 |
Available-for-sale Securities, Gross Unrealized Losses | ' | ' |
Available-for-sale Securities, Estimated Fair Value | $455,232 | $320,946 |
Fair_Value_of_Financial_Invest
Fair Value of Financial Investments - Summary of Financial Assets and Liabilities Carried at Fair Value (Detail) (USD $) | Nov. 02, 2013 | Nov. 03, 2012 |
Level 1 [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Equity securities in a public company | $455,232 | $320,946 |
Level 1 [Member] | Equity Securities in a Public Company [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Equity securities in a public company | 455,232 | 320,946 |
Level 1 [Member] | Non-Recurring Fair Value Investment [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Equity securities in a public company | ' | ' |
Level 2 [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Equity securities in a public company | ' | ' |
Level 2 [Member] | Equity Securities in a Public Company [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Equity securities in a public company | ' | ' |
Level 2 [Member] | Non-Recurring Fair Value Investment [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Equity securities in a public company | ' | ' |
Level 3 [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Equity securities in a public company | 467,934 | 757,924 |
Level 3 [Member] | Equity Securities in a Public Company [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Equity securities in a public company | ' | ' |
Level 3 [Member] | Non-Recurring Fair Value Investment [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Equity securities in a public company | ' | ' |
Level 3 [Member] | Cypress Creek [Member] | Non-Recurring Fair Value Investment [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Equity securities in a public company | $467,934 | $757,924 |
Related_Party_Transactions_Add
Related Party Transactions - Additional Information (Detail) | 20-May-09 | Nov. 02, 2013 | Nov. 02, 2013 | Nov. 02, 2013 | Nov. 02, 2013 | Nov. 02, 2013 | Nov. 02, 2013 | Nov. 02, 2013 |
TLT Incorporation [Member] | Walden Woods [Member] | Walden Woods [Member] | President [Member] | President [Member] | Executive Vice President [Member] | Executive Vice President [Member] | ||
Majority Shareholder [Member] | TLT Incorporation [Member] | TLT Incorporation [Member] | TLT Incorporation [Member] | TLT Incorporation [Member] | ||||
Minimum [Member] | Maximum [Member] | Minimum [Member] | Maximum [Member] | |||||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Contributed Interest | 50.00% | 50.00% | 31.30% | 51.00% | 24.75% | 49.50% | 49.50% | 57.75% |
Other_Investments_Additional_I
Other Investments - Additional Information (Detail) (USD $) | 12 Months Ended | 12 Months Ended | |||||||
Nov. 02, 2013 | Nov. 03, 2012 | 20-May-09 | Nov. 02, 2013 | Nov. 02, 2013 | Nov. 02, 2013 | Nov. 03, 2012 | Nov. 05, 2011 | Nov. 02, 2013 | |
Nobility Parks II,LLC [Member] | Majestic 21 [Member] | Walden Woods [Member] | Walden Woods [Member] | Walden Woods [Member] | CRF III, Ltd [Member] | ||||
Investment [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount invested in retirement community | ' | ' | ' | ' | $250,000 | ' | ' | ' | ' |
Joint venture engaged | ' | ' | 50.00% | ' | 50.00% | 31.30% | ' | ' | 48.50% |
Variable Interest Entity | 50.00% | ' | ' | ' | 50.00% | ' | ' | ' | ' |
Profit and loss basis point | ' | ' | ' | ' | '50/50 basis | ' | ' | ' | ' |
Guarantee obligations note payable principal amount | ' | ' | 5,000,000 | ' | 5,000,000 | ' | ' | ' | ' |
Distributions received from the joint venture | $0 | $0 | ' | ' | ' | ' | ' | ' | ' |
Percentage of interest in investments in retirement community limited partnerships | ' | ' | ' | 100.00% | ' | ' | ' | ' | ' |
Other_Investments_Summarized_F
Other Investments - Summarized Financial Information of Company's Joint Venture (Detail) (USD $) | 12 Months Ended | |
Nov. 02, 2013 | Nov. 03, 2012 | |
Investments All Other Investments [Abstract] | ' | ' |
Total Assets | $16,569,995 | $15,368,882 |
Total Liabilities | 12,129,322 | 11,170,792 |
Total Equity | 4,440,673 | 4,198,091 |
Net Income | $242,583 | $190,072 |
Other_Investments_Summarized_F1
Other Investments - Summarized Financial Information of Walden Woods and Cypress Creek (Detail) (USD $) | Nov. 02, 2013 | Nov. 03, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Walden Woods and Cypress Creek [Member] | Walden Woods and Cypress Creek [Member] | |||
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' |
Total Assets | $16,569,995 | $15,368,882 | $13,559,275 | $14,159,361 |
Total Liabilities | 12,129,322 | 11,170,792 | 15,231,044 | 14,829,587 |
Total Equity | $4,440,673 | $4,198,091 | ($1,671,769) | ($670,226) |
Other_Investments_Summary_of_C
Other Investments - Summary of Change in Investments and Costs Incurred (Detail) (USD $) | 12 Months Ended | |
Nov. 02, 2013 | Nov. 03, 2012 | |
Walden Woods [Member] | ' | ' |
Investment [Line Items] | ' | ' |
Investment, Beginning Balance | ' | ' |
Losses on investment | ' | ' |
Investment, Ending Balance | ' | ' |
Cypress Creek [Member] | ' | ' |
Investment [Line Items] | ' | ' |
Investment, Beginning Balance | 757,924 | 1,092,703 |
Losses on investment | -289,990 | -334,779 |
Investment, Ending Balance | $467,934 | $757,924 |
Inventories_Additional_Informa
Inventories - Additional Information (Detail) | 12 Months Ended |
Nov. 02, 2013 | |
Inventory Disclosure [Abstract] | ' |
Period for sale of inventory repossessed | '3 years |
Inventories_Summary_of_Breakdo
Inventories - Summary of Breakdown of Elements of Inventory (Detail) (USD $) | Nov. 02, 2013 | Nov. 03, 2012 | Nov. 02, 2012 | Nov. 05, 2011 |
Inventory Disclosure [Abstract] | ' | ' | ' | ' |
Raw materials | $571,621 | $505,122 | ' | ' |
Work-in-process | 108,641 | 90,444 | ' | ' |
Finished homes | 4,344,117 | 5,140,200 | ' | ' |
Model home furniture and others | 19,437 | 46,114 | ' | ' |
Inventories, net | 5,043,816 | 5,781,880 | ' | ' |
Pre-owned homes | 9,215,590 | 10,335,524 | ' | ' |
Inventory impairment reserve | -2,711,595 | -3,401,527 | -3,401,527 | -4,098,824 |
Pre-owned homes, net | 6,503,995 | 6,933,997 | ' | ' |
Less homes expected to sell in 12 months | -2,187,598 | -2,503,164 | ' | ' |
Pre-owned homes, long-term | $4,316,397 | $4,430,833 | ' | ' |
Inventories_Summary_of_Breakdo1
Inventories - Summary of Breakdown of Elements of Inventory (Parenthetical) (Detail) (USD $) | 12 Months Ended | |
Nov. 02, 2013 | Nov. 02, 2012 | |
Inventory [Line Items] | ' | ' |
Beginning Balance | ' | $12,857,146 |
Purchased | 1,399,205 | 442,853 |
Sold | -2,519,139 | -2,964,475 |
Ending Balance | 9,215,590 | 10,335,524 |
FRSA - Pre-Owned Homes [Member] | ' | ' |
Inventory [Line Items] | ' | ' |
Beginning Balance | ' | 11,886,362 |
Purchased | ' | 275,572 |
Sold | -1,718,453 | -2,530,643 |
Ending Balance | 7,912,838 | 9,631,291 |
Trade-in and Other Pre-Owned Homes [Member] | ' | ' |
Inventory [Line Items] | ' | ' |
Beginning Balance | ' | 970,784 |
Purchased | 1,399,205 | 167,281 |
Sold | -800,686 | -433,832 |
Ending Balance | $1,302,752 | $704,233 |
Inventories_Analysis_of_Invent
Inventories - Analysis of Inventory Impairment Reserve (Detail) (USD $) | 12 Months Ended | ||
Nov. 02, 2013 | Nov. 03, 2012 | Nov. 02, 2012 | |
Inventory Disclosure [Abstract] | ' | ' | ' |
Beginning inventory impairment reserve | $3,401,527 | $4,098,824 | $3,401,527 |
Less: Reductions for homes sold | -393,138 | -475,031 | ' |
Inventory holding costs | -302,497 | -251,067 | ' |
Plus: Additions to impairment reserve | 5,703 | 28,801 | ' |
Ending inventory impairment reserve | $2,711,595 | $3,401,527 | $3,401,527 |
Properties_Plant_and_Equipment2
Properties, Plant and Equipment - Property, Plant and Equipment with Estimated Useful Lives and Related Accumulated Depreciation (Detail) (USD $) | Nov. 02, 2013 | Nov. 03, 2012 | Nov. 02, 2013 | Nov. 03, 2012 | Nov. 02, 2013 | Nov. 03, 2012 | Nov. 02, 2013 | Nov. 03, 2012 | Nov. 02, 2013 | Nov. 03, 2012 | Nov. 02, 2013 | Nov. 03, 2012 | Nov. 02, 2013 | Nov. 02, 2013 | Nov. 02, 2013 | Nov. 02, 2013 | Nov. 02, 2013 | Nov. 02, 2013 | Nov. 02, 2013 | Nov. 02, 2013 | Nov. 02, 2013 | Nov. 02, 2013 |
Land [Member] | Land [Member] | Land Improvements [Member] | Land Improvements [Member] | Building and Improvements [Member] | Building and Improvements [Member] | Machinery and Equipment [Member] | Machinery and Equipment [Member] | Furniture and Fixtures [Member] | Furniture and Fixtures [Member] | Minimum [Member] | Minimum [Member] | Minimum [Member] | Minimum [Member] | Minimum [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | |||
Land [Member] | Land Improvements [Member] | Building and Improvements [Member] | Machinery and Equipment [Member] | Furniture and Fixtures [Member] | Land [Member] | Land Improvements [Member] | Building and Improvements [Member] | Machinery and Equipment [Member] | Furniture and Fixtures [Member] | |||||||||||||
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property plant and equipment, estimated useful life | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | '15 years | '3 years | '3 years | ' | '20 years | '40 years | '10 years | '10 years |
Property plant and equipment, gross | $7,226,440 | $7,415,654 | $2,349,383 | $2,349,383 | $839,912 | $872,977 | $2,538,248 | $2,571,628 | $1,061,463 | $1,131,687 | $437,434 | $489,979 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Less accumulated depreciation | -3,494,977 | -3,614,102 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property plant and equipment, net | $3,731,463 | $3,801,552 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other_Assets_Summary_of_Other_
Other Assets - Summary of Other Assets (Detail) (USD $) | Nov. 02, 2013 | Nov. 03, 2012 |
Receivables [Abstract] | ' | ' |
Cash surrender value of life insurance | $2,648,197 | $2,531,253 |
Other | 156,287 | 156,287 |
Total other assets | $2,804,484 | $2,687,540 |
Accrued_Expenses_and_Other_Cur2
Accrued Expenses and Other Current Liabilities - Summary of Accrued Expenses and Other Current Liabilities (Detail) (USD $) | Nov. 02, 2013 | Nov. 03, 2012 |
Payables And Accruals [Abstract] | ' | ' |
Accrued warranty expense | $75,000 | $75,000 |
Accrued legal | ' | 18,000 |
Accrued taxes | 235,490 | 159,014 |
Other accrued expenses | 303,878 | 262,506 |
Total accrued expenses and other current liabilities | $614,368 | $514,520 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended | |
Nov. 02, 2013 | Nov. 03, 2012 | |
Income Tax Benefit [Line Items] | ' | ' |
Percentage of tax benefit | 50.00% | ' |
Tax benefit | $0 | ' |
Unused net operating loss carry forwards | 1,200,000 | ' |
Realization of deferred tax assets | 2,000,000 | ' |
Valuation allowance | 1,465,233 | 2,118,135 |
Operating Loss Carry Forward Expire in 2031 [Member] | ' | ' |
Income Tax Benefit [Line Items] | ' | ' |
Unused net operating loss carry forwards | 300,000 | ' |
Net operating loss carry forwards expiration year | '2031 | ' |
Operating Loss Carry Forward Expire in 2032 [Member] | ' | ' |
Income Tax Benefit [Line Items] | ' | ' |
Unused net operating loss carry forwards | $900,000 | ' |
Net operating loss carry forwards expiration year | '2032 | ' |
Income_Taxes_Summary_of_Provis
Income Taxes - Summary of Provision for Income Taxes (Detail) (USD $) | 12 Months Ended | |
Nov. 02, 2013 | Nov. 03, 2012 | |
Current tax benefit: | ' | ' |
Federal | ($6,318) | ' |
State | ' | ' |
Total current tax benefit | -6,318 | ' |
Deferred tax benefit | 652,902 | 10,034 |
Valuation allowance | -652,902 | -10,034 |
Income tax benefit | ($6,318) | ' |
Income_Taxes_Reconciliation_be
Income Taxes - Reconciliation between Statutory Federal Income Tax Rate and Actual Provision for Income Taxes (Detail) (USD $) | 12 Months Ended | |
Nov. 02, 2013 | Nov. 03, 2012 | |
Income Tax Disclosure [Abstract] | ' | ' |
Provision - federal statutory tax rate | $251,868 | $16,918 |
Increase (decrease) resulting from: | ' | ' |
State taxes, net of federal tax benefit | 26,891 | 1,947 |
Permanent differences: | ' | ' |
Tax exempt interest | ' | -1,317 |
Stock option expirations | 225,860 | ' |
Changes in DTA valuation allowance | -652,902 | -10,034 |
Other | 141,965 | -7,514 |
Income tax benefit | ($6,318) | ' |
Income_Taxes_Deferred_Tax_Asse
Income Taxes - Deferred Tax Assets and Deferred Tax Liabilities (Detail) (USD $) | Nov. 02, 2013 | Nov. 03, 2012 |
Deferred tax assets: | ' | ' |
Allowance for doubtful accounts | $87,261 | $87,261 |
Inventories | 1,164,353 | 1,428,743 |
Carrying value of other investments | 1,834,434 | 1,799,252 |
Accrued expenses | 44,271 | 42,275 |
Stock-based compensation | 32,382 | 276,087 |
Net operating loss carryforwards | 438,632 | 552,877 |
Valuation allowance | -1,465,233 | -2,118,135 |
Total deferred tax assets | 2,136,100 | 2,068,360 |
Deferred tax liabilities: | ' | ' |
Depreciation | -32,784 | -30,274 |
State income tax refunds | -29,598 | -57,605 |
Amortization | -58,810 | -52,105 |
Prepaid expenses | -18,908 | -11,376 |
Net deferred tax asset | $1,996,000 | $1,917,000 |
Income_Taxes_Accompanying_Defe
Income Taxes - Accompanying Deferred Current and Non-current Tax Assets and Liabilities in Consolidated Balance Sheet (Detail) (USD $) | Nov. 02, 2013 | Nov. 03, 2012 |
Current assets: | ' | ' |
Deferred tax assets | $1,295,882 | $1,558,278 |
Deferred tax liabilities | -157,523 | -127,468 |
Valuation allowance | -481,898 | -751,065 |
Net current deferred taxes | 656,461 | 679,745 |
Non-current assets: | ' | ' |
Deferred tax assets | 2,414,469 | 2,686,703 |
Deferred tax liabilities | -91,595 | -82,379 |
Valuation allowance | -983,335 | -1,367,069 |
Net non-current deferred taxes | 1,339,539 | 1,237,255 |
Net deferred tax asset | $1,996,000 | $1,917,000 |
Stockholders_Equity_Additional
Stockholders' Equity - Additional Information (Detail) (Common Stock [Member]) | 12 Months Ended | |
Nov. 02, 2013 | Nov. 03, 2012 | |
Common Stock [Member] | ' | ' |
Equity [Line Items] | ' | ' |
Repurchase of common stock | 0 | 0 |
Stock_Option_Plan_Additional_I
Stock Option Plan - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Nov. 02, 2013 | Nov. 03, 2012 | Nov. 05, 2011 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Shares reserved for issuance | 300,000 | ' | ' |
Options Outstanding, Shares Outstanding | 30,400 | 54,150 | 95,400 |
Compensation cost related to stock options | $13,500 | $39,100 | ' |
Unrecognized compensation cost related to non-vested | $12,914 | ' | ' |
Weighted average period | '2 years 5 months 27 days | ' | ' |
Employee Stock Option [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Options Outstanding, Shares Outstanding | 0 | ' | ' |
Stock_Option_Plan_Option_Grant
Stock Option Plan - Option Granted (Detail) (USD $) | 12 Months Ended | |
Nov. 02, 2013 | Nov. 03, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Outstanding Beginning, Number of Shares | 54,150 | 95,400 |
Granted, Number of Shares | ' | ' |
Exercised, Number of Shares | ' | ' |
Canceled, Number of Shares | -23,750 | -41,250 |
Outstanding Ending, Number of Shares | 30,400 | 54,150 |
Granted, Stock Option Price Range | ' | ' |
Exercised, Stock Option Price Range | ' | ' |
Canceled, Stock Option Price Range | $26.38 | ' |
Outstanding Beginning, Weighted Average Exercise Price | $19.19 | $21.12 |
Granted, Weighted Average Exercise Price | ' | ' |
Exercised, Weighted Average Exercise Price | ' | ' |
Canceled, Weighted Average Exercise Price | $26.38 | $23.66 |
Outstanding Ending, Weighted Average Exercise Price | $13.58 | $19.19 |
Outstanding Beginning, Aggregate Intrinsic Value | ' | ' |
Granted, Aggregate Intrinsic Value | ' | ' |
Exercised, Aggregate Intrinsic Value | ' | ' |
Canceled, Aggregate Intrinsic Value | ' | ' |
Outstanding Ending, Aggregate Intrinsic Value | $8,310 | ' |
Minimum Range [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Outstanding Beginning, Stock Option Price Range | $7.91 | $7.91 |
Granted, Stock Option Price Range | ' | ' |
Exercised, Stock Option Price Range | ' | ' |
Canceled, Stock Option Price Range | ' | $7.91 |
Outstanding Ending, Stock Option Price Range | $7.91 | $7.91 |
Maximum Range [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Outstanding Beginning, Stock Option Price Range | $26.56 | $26.56 |
Granted, Stock Option Price Range | ' | ' |
Exercised, Stock Option Price Range | ' | ' |
Canceled, Stock Option Price Range | ' | $26.56 |
Outstanding Ending, Stock Option Price Range | $18.50 | $26.56 |
Stock_Option_Plan_Outstanding_
Stock Option Plan - Outstanding Stock Options (Detail) (USD $) | 12 Months Ended | ||
Nov. 02, 2013 | Nov. 03, 2012 | Nov. 05, 2011 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Options Outstanding, Weighted Average Remaining Contractual Life (years) | '1 year 9 months 18 days | ' | ' |
Options Outstanding, Shares Outstanding | 30,400 | 54,150 | 95,400 |
Options Outstanding, Weighted Average Exercise Price | $13.58 | ' | ' |
Options Exercisable, Number Exercisable | 23,405 | ' | ' |
Options Exercisable, Weighted Average Exercise Price | $15 | ' | ' |
Range One [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Options Outstanding, Exercise Price | $18.50 | ' | ' |
Options Outstanding, Weighted Average Remaining Contractual Life (years) | '1 year | ' | ' |
Options Outstanding, Shares Outstanding | 15,250 | ' | ' |
Options Outstanding, Weighted Average Exercise Price | $18.50 | ' | ' |
Options Exercisable, Number Exercisable | 15,250 | ' | ' |
Options Exercisable, Weighted Average Exercise Price | $18.50 | ' | ' |
Range Two [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Options Outstanding, Exercise Price | $7.91 | ' | ' |
Options Outstanding, Weighted Average Remaining Contractual Life (years) | '2 years | ' | ' |
Options Outstanding, Shares Outstanding | 8,150 | ' | ' |
Options Outstanding, Weighted Average Exercise Price | $7.91 | ' | ' |
Options Exercisable, Number Exercisable | 5,705 | ' | ' |
Options Exercisable, Weighted Average Exercise Price | $7.91 | ' | ' |
Range Three [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Options Outstanding, Exercise Price | $10.45 | ' | ' |
Options Outstanding, Weighted Average Remaining Contractual Life (years) | '3 years | ' | ' |
Options Outstanding, Shares Outstanding | 3,500 | ' | ' |
Options Outstanding, Weighted Average Exercise Price | $10.45 | ' | ' |
Options Exercisable, Number Exercisable | 1,575 | ' | ' |
Options Exercisable, Weighted Average Exercise Price | $10.45 | ' | ' |
Range Four [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Options Outstanding, Exercise Price | $8.49 | ' | ' |
Options Outstanding, Weighted Average Remaining Contractual Life (years) | '4 years | ' | ' |
Options Outstanding, Shares Outstanding | 3,500 | ' | ' |
Options Outstanding, Weighted Average Exercise Price | $8.49 | ' | ' |
Options Exercisable, Number Exercisable | 875 | ' | ' |
Options Exercisable, Weighted Average Exercise Price | $8.49 | ' | ' |
Employee_Benefit_Plan_Addition
Employee Benefit Plan - Additional Information (Detail) (USD $) | 12 Months Ended | |
Nov. 02, 2013 | Nov. 03, 2012 | |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Maximum employee compensation | 6.00% | ' |
Contribution expense charged to operations | $0 | $0 |
Maximum [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Percentage of discretionary matching contribution | 20.00% | ' |
Commitments_and_Contingent_Lia2
Commitments and Contingent Liabilities - Additional Information (Detail) (USD $) | 0 Months Ended | 12 Months Ended | |
20-May-09 | Nov. 02, 2013 | Nov. 03, 2012 | |
Commitments And Contingencies [Line Items] | ' | ' | ' |
Total rent expenses for operating leases | ' | $102,833 | $115,673 |
Percentage of joint venture loan guaranteed by company | 50.00% | ' | ' |
Guarantee obligations note payable principal amount | 5,000,000 | ' | ' |
Percentage interest owns by company | 50.00% | ' | ' |
Guarantee obligations maximum limit of note payable principal amount for maturity | ' | 750,000 | ' |
Guarantee obligations principal balance of pool of loans percentage | ' | 80.00% | ' |
Percentage of collateral value for pool of loan securing note | ' | 100.00% | ' |
Guarantee obligations outstanding note payable principal amount | ' | 2,034,100 | ' |
Collateral value for pool of loan securing note payable by joint venture | ' | 2,791,316 | ' |
Loan loss reserve | ' | 171,385 | ' |
Loan loss reserve as percentage of portfolio | ' | 0.89% | ' |
Majestic 21 [Member] | ' | ' | ' |
Commitments And Contingencies [Line Items] | ' | ' | ' |
Guarantee obligations note payable principal amount | ' | 5,000,000 | ' |
Percentage interest owns by company | ' | 50.00% | ' |
Percentage of outstanding principal balance, Company's maximum exposure | ' | 50.00% | ' |
Amount of outstanding principal balance, Company's maximum exposure | ' | $1,017,050 | ' |
Commitments_and_Contingent_Lia3
Commitments and Contingent Liabilities - Future Minimum Payments by Year (Detail) (USD $) | Nov. 02, 2013 |
Commitments And Contingencies Disclosure [Abstract] | ' |
2014 | $45,689 |
2015 | 25,680 |
2016 | $8,560 |