Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Oct. 31, 2015 | Jan. 28, 2016 | May. 01, 2015 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Oct. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | NOBH | ||
Entity Registrant Name | NOBILITY HOMES INC | ||
Entity Central Index Key | 72,205 | ||
Current Fiscal Year End Date | --10-31 | ||
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 | 4,020,294 | ||
Entity Public Float | $ 10,090,631 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Oct. 31, 2015 | Nov. 01, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 16,769,292 | $ 14,116,412 |
Short-term investments | 462,578 | 496,444 |
Accounts receivable-trade | 2,937,922 | 2,141,468 |
Mortgage notes receivable, current | 9,851 | 7,126 |
Income tax receivable | 335 | 5,964 |
Inventories | 6,019,705 | 5,516,540 |
Pre-owned homes, current | 1,366,974 | 2,839,203 |
Prepaid expenses and other current assets | 826,180 | 286,990 |
Deferred income taxes | 655,193 | 508,633 |
Total current assets | 29,048,030 | 25,918,780 |
Property, plant and equipment, net | 3,964,878 | 3,957,071 |
Pre-owned homes | 2,724,190 | 1,711,000 |
Mortgage notes receivable, long term | 177,644 | 180,800 |
Other investments | 2,243,729 | 2,751,663 |
Deferred income taxes | 1,210,630 | 1,487,367 |
Cash surrender value of life insurance | 2,915,469 | 2,765,137 |
Other assets | 156,287 | 156,287 |
Total assets | 42,440,857 | 38,928,105 |
Current liabilities: | ||
Accounts payable | 704,467 | 502,259 |
Accrued compensation | 390,573 | 320,502 |
Accrued expenses and other current liabilities | 926,204 | 526,296 |
Customer deposits | 1,323,861 | 1,029,088 |
Total current liabilities | $ 3,345,105 | $ 2,378,145 |
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 | 10,650,723 | 10,643,866 |
Retained earnings | 37,493,077 | 34,577,682 |
Accumulated other comprehensive income | 247,724 | 281,590 |
Less treasury stock at cost, 1,333,338 shares in 2015 and 1,301,038 shares in 2014 | (9,832,263) | (9,489,669) |
Total stockholders' equity | 39,095,752 | 36,549,960 |
Total liabilities and stockholders' equity | $ 42,440,857 | $ 38,928,105 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Oct. 31, 2015 | Nov. 01, 2014 |
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 | 1,333,338 | 1,301,038 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) | 12 Months Ended | |
Oct. 31, 2015 | Nov. 01, 2014 | |
Income Statement [Abstract] | ||
Net sales | $ 27,836,804 | $ 21,152,259 |
Cost of goods sold | (21,701,429) | (16,780,713) |
Gross profit | 6,135,375 | 4,371,546 |
Selling, general and administrative expenses | (3,193,923) | (3,060,516) |
Operating income | 2,941,452 | 1,311,030 |
Other income (loss): | ||
Interest income | 59,985 | 63,137 |
Undistributed earnings in joint venture-Majestic 21 | 138,469 | 134,921 |
Losses from investments in retirement community limited partnerships | (146,403) | (321,531) |
Miscellaneous | 57,698 | 74,377 |
Total other income (loss) | 109,749 | (49,096) |
Income before provision for income taxes | 3,051,201 | 1,261,934 |
Income tax expense | (135,806) | (4,036) |
Net income | 2,915,395 | 1,257,898 |
Other comprehensive income (loss) | ||
Unrealized investment gain (loss) | (33,866) | 41,212 |
Comprehensive income | $ 2,881,529 | $ 1,299,110 |
Weighed average number of shares outstanding: | ||
Basic | 4,052,865 | 4,059,668 |
Diluted | 4,053,362 | 4,060,654 |
Net income per share: | ||
Basic | $ 0.72 | $ 0.31 |
Diluted | $ 0.72 | $ 0.31 |
Consolidated Statements of Chan
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. 02, 2013 | $ 35,183,656 | $ 536,491 | $ 10,632,060 | $ 33,319,784 | $ 240,378 | $ (9,545,057) |
Beginning balance, shares at Nov. 02, 2013 | 4,057,053 | |||||
Purchase of treasury stock, shares | 0 | |||||
Stock-based compensation | $ 8,091 | 8,091 | ||||
Unrealized investment gain | 41,212 | 41,212 | ||||
Exercise of employee stock options | $ 46,603 | 3,715 | 42,888 | |||
Exercise of employee stock options, shares | 5,875 | 5,875 | ||||
Other | $ 12,500 | 12,500 | ||||
Other, shares | 941 | |||||
Net income | 1,257,898 | 1,257,898 | ||||
Ending balance at Nov. 01, 2014 | 36,549,960 | $ 536,491 | 10,643,866 | 34,577,682 | 281,590 | (9,489,669) |
Ending balance, shares at Nov. 01, 2014 | 4,063,869 | |||||
Purchase of treasury stock | $ (360,844) | (360,844) | ||||
Purchase of treasury stock, shares | (34,800) | (34,800) | ||||
Stock-based compensation | $ 9,287 | 9,287 | ||||
Unrealized investment gain | (33,866) | (33,866) | ||||
Exercise of employee stock options | $ 15,820 | (2,430) | 18,250 | |||
Exercise of employee stock options, shares | 2,000 | 2,500 | ||||
Net income | $ 2,915,395 | 2,915,395 | ||||
Ending balance at Oct. 31, 2015 | $ 39,095,752 | $ 536,491 | $ 10,650,723 | $ 37,493,077 | $ 247,724 | $ (9,832,263) |
Ending balance, shares at Oct. 31, 2015 | 4,031,569 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Oct. 31, 2015 | Nov. 01, 2014 | |
Cash flows from operating activities: | ||
Net income | $ 2,915,395 | $ 1,257,898 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 110,169 | 95,843 |
Deferred income taxes | 130,177 | |
Undistributed earnings in joint venture - Majestic 21 | (138,469) | (134,921) |
Losses from investments in retirement community limited partnerships | 146,403 | 321,531 |
Gain on disposal of property, plant, and equipment | (3,650) | |
Inventory impairment | 75,000 | |
Stock-based compensation | 9,287 | 8,091 |
Other | 12,500 | |
Decrease (increase) in: | ||
Accounts receivable - trade | (796,454) | 559,589 |
Inventories | (503,165) | (472,724) |
Pre-owned homes | 384,039 | 1,953,792 |
Income tax receivable | 5,629 | (5,964) |
Prepaid expenses and other current assets | (539,190) | 32,556 |
(Decrease) increase in: | ||
Accounts payable | 202,208 | (143,260) |
Accrued compensation | 70,071 | 150,476 |
Accrued expenses and other current liabilities | 399,908 | (88,072) |
Customer deposits | 294,773 | 492,036 |
Net cash provided by operating activities | 2,765,781 | 4,035,721 |
Cash flows from investing activities: | ||
Purchase of property, plant and equipment | (117,976) | (321,451) |
Proceeds from sale of property, plant and equipment | 3,650 | |
Distributions from joint venture - Majestic 21 | 500,000 | 0 |
Collections on mortgage notes receivable | 431 | 376 |
Increase in cash surrender value of life insurance | (150,332) | (116,940) |
Net cash provided by (used in) investing activities | 232,123 | (434,365) |
Cash flows from financing activities: | ||
Proceeds from exercise of employee stock options | 15,820 | 46,603 |
Purchase of treasury stock | (360,844) | |
Net cash provided by (used in) financing activities | (345,024) | 46,603 |
Increase in cash and cash equivalents | 2,652,880 | 3,647,959 |
Cash and cash equivalents at beginning of year | 14,116,412 | 10,468,453 |
Cash and cash equivalents at end of year | $ 16,769,292 | 14,116,412 |
Supplemental disclosure of cash flows information: | ||
Income taxes paid | $ 10,000 |
Reporting Entity and Significan
Reporting Entity and Significant Accounting Policies | 12 Months Ended |
Oct. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Reporting Entity and Significant Accounting Policies | NOTE 1 Reporting Entity and Significant Accounting Policies Description of Business and Principles of Consolidation – 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 – Fiscal Year – Revenue Recognition – • 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. For wholesale shipments to independent dealers, the Company has no obligation to setup the home or to complete any other significant obligations. 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 October 31, 2015 or November 1, 2014. Revenues by Products and Services 2015 2014 Manufactured housing $ 25,904,715 $ 17,814,751 Pre-owned homes 1,721,072 3,133,153 Insurance agent commissions 211,017 204,355 Total net sales $ 27,836,804 $ 21,152,259 Cash and Cash Equivalents – Accounts Receivable – 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 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 – 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. 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 Corporation and remarketed. Majestic 21 Corporation 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 – Investment in Majestic 21 – st st 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 13 for discussion of the Company’s guarantee of a $5 million note payable of Majestic 21. Other Investments The Company has a 48.5% investment interest in a retirement manufactured home community, CRF III, Ltd. (Cypress Creek) located in Winter Haven, Florida. The Company has the right to assign some of its ownership to partners other than Nobility Homes. During 2015, the Company’s investment in Cypress Creek was reduced to zero from recurring operating losses. See further discussion of these investments in Note 5. Impairment of Long-Lived Assets – Customer Deposits – Company Owned Life Insurance Warranty Costs – 2015 2014 Beginning accrued warranty expense $ 75,000 $ 75,000 Less: reduction for payments (326,988 ) (195,819 ) Plus: additions to accrual 351,988 195,819 Ending accrued warranty expense $ 100,000 $ 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 Stock-Based Compensation – T Rebate Program – Advertising – Audit Fees – Income Taxes – Net Income per Share – Shipping and Handling Costs – Comprehensive Income – Segments – Major Customers – Concentration of Credit Risk – Concentration of Retail Financing Sources – Recently Issued Accounting Pronouncements – |
Investments
Investments | 12 Months Ended |
Oct. 31, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | NOTE 2 Investments The following is a summary of short-term investments (available for sale): October 31, 2015 Amortized Cost Gross Gross Estimated Fair Equity securities in a public company $ 167,930 $ 294,648 $ — $ 462,578 November 1, 2014 Amortized Cost Gross Gross Estimated Fair Equity securities in a public company $ 167,930 $ 328,514 $ — $ 496,444 The fair values were estimated based on unadjusted quoted prices at each respective period end. |
Fair Values of Financial Invest
Fair Values of Financial Investments | 12 Months Ended |
Oct. 31, 2015 | |
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 FASB ASC No. 820 “Fair Value Measurements” (ASC No. 820). ASC No. 820 defines fair value as the price that would be received upon the sale of an asset or paid to transfer a liability (i.e. exit price) in an orderly transaction between market participants at the measurement date. ASC 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 October 31, 2015 and November 1, 2014. October 31, 2015 Level 1 Level 2 Level 3 Equity securities in a public company $ 462,578 $ — $ — $ 462,578 $ — $ — November 1, 2014 Level 1 Level 2 Level 3 Equity securities in a public company $ 496,444 $ — $ — Non-recurring fair value investment — — 146,403 $ 496,444 $ — $ 146,403 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 |
Oct. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | NOTE 4 Related Party Transactions Affiliated Entities TLT, Inc. – Walden Woods – |
Other Investments
Other Investments | 12 Months Ended |
Oct. 31, 2015 | |
Text Block [Abstract] | |
Other Investments | NOTE 5 Other Investments Investment in Joint Venture – Majestic 21 – 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 13 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: October 31, 2015 November 1, 2014 Total Assets $ 14,499,423 $ 16,457,594 Total Liabilities $ 10,511,965 $ 11,747,081 Total Equity $ 3,987,458 $ 4,710,513 Net Income $ 276,945 $ 269,840 Distributions received from the joint venture amounted to $500,000 in fiscal year 2015. There were no distributions received from the joint venture in fiscal year 2014. 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 48.5% investment interest in a retirement manufactured home community, CRF III, Ltd. (Cypress Creek) located in Winter Haven, Florida. The Company has the right to assign some of its ownership to partners other than Nobility Homes. During 2015, the Company’s investment in Cypress Creek was reduced to zero from recurring operating losses. 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, 2015 and September 30, 2014*: September 30, 2015 September 30, 2014 Total Assets $ 13,273,488 $ 13,477,599 Total Liabilities $ 17,101,517 $ 16,271,729 Total Deficit $ (3,828,029 ) $ (2,794,130 ) * 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 2015 and 2014: Walden Woods Cypress Creek Investment at November 2, 2013 $ — $ 467,934 Losses on investment — (321,531 ) Investment at November 1, 2014 — 146,403 Losses on investment — (146,403 ) Investment at October 31, 2015 $ — $ — The Company has no obligation to fund future operating losses of Walden Woods or Cypress Creek and accordingly, has not reduced the investment carrying value to less than zero. |
Inventories
Inventories | 12 Months Ended |
Oct. 31, 2015 | |
Inventory Disclosure [Abstract] | |
Inventories | NOTE 6 Inventories The Company acquired a significant amount of repossessed pre-owned inventory in 2011. The Company will continue to sell the remaining pre-owned inventory and monitor and reduce, if necessary, the value of this inventory if circumstances so indicate in future periods. 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 October 31, 2015 and November 1, 2014 is as follows: October 31, 2015 November 1, 2014 Raw materials $ 721,751 $ 622,831 Work-in-process 113,891 114,368 Finished homes 5,114,568 4,722,923 Model home furniture and others 69,495 56,418 Inventories, net $ 6,019,705 $ 5,516,540 Pre-owned homes * $ 5,516,272 $ 6,322,483 Inventory impairment reserve (1,425,108 ) (1,772,280 ) 4,091,164 4,550,203 Less homes expected to sell in 12 months (1,366,974 ) (2,839,203 ) Pre-owned homes, long-term $ 2,724,190 $ 1,711,000 * The following table summarizes a breakdown of pre-owned homes inventory for fiscal year 2015 and 2014: Total pre-owned homes Balance at November 2, 2013 $ 9,215,590 Purchased 525,436 Sold (3,418,543 ) Balance at November 1, 2014 6,322,483 Purchased 932,197 Sold (1,738,408 ) Balance at October 31, 2015 $ 5,516,272 An analysis of the inventory impairment reserve at October 31, 2015 and November 1, 2014 is as follows: October 31, 2015 November 1, 2014 Beginning inventory impairment reserve $ 1,772,280 $ 2,711,595 Less: Reductions for homes sold (258,001 ) (691,094 ) Inventory holding costs (141,468 ) (211,334 ) Plus: Additions (subtractions) to impairment reserve 52,297 (36,887 ) Ending inventory impairment reserve $ 1,425,108 $ 1,772,280 |
Properties, Plant and Equipment
Properties, Plant and Equipment | 12 Months Ended |
Oct. 31, 2015 | |
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 October 31, 2015 November 1, 2014 Land — $ 2,349,383 $ 2,349,383 Land improvements 10-20 839,912 839,912 Buildings and improvements 15-40 2,813,761 2,786,761 Machinery and equipment 3-10 1,180,377 1,089,401 Furniture and fixtures 3-10 437,432 437,432 7,620,865 7,502,889 Less accumulated depreciation (3,655,987 ) (3,545,818 ) $ 3,964,878 $ 3,957,071 |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 12 Months Ended |
Oct. 31, 2015 | |
Payables and Accruals [Abstract] | |
Accrued Expenses and Other Current Liabilities | NOTE 8 Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities are comprised of the following: October 31, 2015 November 1, 2014 Accrued warranty expense $ 100,000 $ 75,000 Accrued taxes 261,289 215,807 Other accrued expenses 564,915 235,489 Total accrued expenses and other current liabilities $ 926,204 $ 526,296 |
Income Taxes
Income Taxes | 12 Months Ended |
Oct. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 9 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 2015 or 2014 statements of operations, nor are any amounts accrued for interest and penalties at October 31, 2015 or November 1, 2014. The provision for income taxes for the years ended consists of the following: October 31, 2015 November 1, 2014 Current tax expense: Federal $ 5,629 $ 4,036 State — — 5,629 4,036 Deferred tax expense 1,105,489 489,921 Valuation allowance (975,312 ) (489,921 ) Income tax expense $ 135,806 $ 4,036 The following table shows the reconciliation between the statutory federal income tax rate and the actual provision for income taxes for the years ended: October 31, 2015 November 1, 2014 Provision—federal statutory tax rate $ 1,037,408 $ 429,057 Increase (decrease) resulting from: State taxes, net of federal tax benefit 110,759 45,808 Permanent differences: Stock option expirations 6,045 20,773 Other (43,094 ) (1,681 ) Changes in DTA valuation allowance (975,312 ) (489,921 ) Income tax expense $ 135,806 $ 4,036 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: October 31, 2015 November 1, 2014 Deferred tax assets: Allowance for doubtful accounts $ 87,261 $ 87,261 Inventories 651,980 782,308 Carrying value of other investments 1,186,668 1,939,918 Accrued expenses 75,141 58,311 Stock-based compensation 8,971 10,507 Net operating loss — 231,289 Valuation allowance — (975,312 ) Total deferred tax assets 2,010,021 2,134,282 Deferred tax liabilities: Depreciation (37,982 ) (33,288 ) State income tax refunds (29,598 ) (29,598 ) Amortization (58,810 ) (58,810 ) Prepaid expenses (17,808 ) (16,586 ) Net deferred tax assets $ 1,865,823 $ 1,996,000 At November 1, 2014, the Company has unused net operating loss carry forwards totaling approximately $600,000. These net operating losses were applied to 2015 taxable income. These amounts are included in the accompanying consolidated balance sheets under the following captions: October 31, 2015 November 1, 2014 Current assets: Deferred tax assets $ 814,381 $ 927,879 Deferred tax liabilities (159,188 ) (170,710 ) Valuation allowance — (248,535 ) Net current deferred taxes 655,193 508,634 Non-current assets: Deferred tax assets 1,307,422 2,306,241 Deferred tax liabilities (96,792 ) (92,098 ) Valuation allowance — (726,777 ) Net non-current deferred taxes 1,210,630 1,487,366 Net deferred tax asset $ 1,865,823 $ 1,996,000 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 year 2015, the Company determined that a valuation reserve for the Company’s deferred tax assets was not considered necessary as the deferred tax assets were fully realizable. The decision was made based on the strong profitability for two consecutive years, the reduction in deferred tax assets in 2015, and the complete utilization of all net operating loss carryforwards. In fiscal 2014, the Company had determined that, due to negative evidence as a result of losses in numerous consecutive years through 2011, a valuation reserve was 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. There no valuation allowance at October 15, 2015. The valuation allowance was approximately $975,000 at November 1, 2014. 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 |
Oct. 31, 2015 | |
Equity [Abstract] | |
Stockholders' Equity | NOTE 10 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 repurchased 34,800 and 0 shares of its common stock during fiscal years 2015 and 2014, respectively. |
Stock Option Plan
Stock Option Plan | 12 Months Ended |
Oct. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Option Plan | NOTE 11 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 October 31, 2015, options available for future grant under the plan were 300,000 and no options were outstanding. As of October 31, 2015, the Company has 5,000 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 2015 and 2014, the Company recognized approximately $9,000 and $8,000 in compensation cost related to stock options respectively. A summary of information with respect to options granted is as follows: Number of Stock Option Price Weighted Aggregate Outstanding at November 2, 2013 30,400 7.91 - 18.50 13.58 Granted — — — Exercised (5,875 ) 7.91 - 8.49 7.93 Canceled (17,525 ) 7.91 - 18.50 17.30 Outstanding at November 1, 2014 7,000 $ 7.91 - 10.45 $ 9.02 Granted — — — Exercised (2,000 ) 7.91 7.91 Canceled — — — Outstanding at October 31, 2015 5,000 $ 8.49 - 10.45 $ 9.47 $ 16,900 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 2015 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 October 31, 2015. The following table summarizes information about the outstanding stock options at October 31, 2015: Options Outstanding Options Exercisable Exercise Prices Shares Weighted Weighted Number Weighted $10.45 2,500 1 $ 10.45 2,500 $ 10.45 $ 8.49 2,500 — 8.49 1,750 8.49 5,000 1 $ 9.47 4,250 $ 9.64 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 October 31, 2015, there is $602 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 .14 years. |
Employee Benefit Plan
Employee Benefit Plan | 12 Months Ended |
Oct. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefit Plan | NOTE 12 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. The contribution expense charged to operations in fiscal years 2015 was $20,000 and no contribution expense charged in 2014. |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 12 Months Ended |
Oct. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingent Liabilities | NOTE 13 Commitments and Contingent Liabilities Operating Leases – 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 October 31, 2015 are as follows for the fiscal years ending: 2016 $ 30,388 2017 $ 20,009 Majestic 21 st st On October 31, 2015 there was approximately $170,573 in loan loss reserves or 1.19% 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 – 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. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Oct. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 14 Subsequent Events On November 20, 2015 and December 16, 2015, the Company repurchased 6,475 and 4,800 shares of its common stock for an aggregate purchase price of $74,786 and $57,600 respectively. |
Reporting Entity and Signific21
Reporting Entity and Significant Accounting Policies (Policies) | 12 Months Ended |
Oct. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business and Principles of Consolidation | Description of Business and Principles of Consolidation – 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 – |
Fiscal Year | Fiscal Year – |
Revenue Recognition | Revenue Recognition – • 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. For wholesale shipments to independent dealers, the Company has no obligation to setup the home or to complete any other significant obligations. 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 October 31, 2015 or November 1, 2014. |
Revenues by Products and Services | Revenues by Products and Services 2015 2014 Manufactured housing $ 25,904,715 $ 17,814,751 Pre-owned homes 1,721,072 3,133,153 Insurance agent commissions 211,017 204,355 Total net sales $ 27,836,804 $ 21,152,259 |
Cash and Cash Equivalents | Cash and Cash Equivalents – |
Accounts Receivable | Accounts Receivable – 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 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 – 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. 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 Corporation and remarketed. Majestic 21 Corporation 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 – |
Investment in Majestic 21 | Investment in Majestic 21 – st st 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 13 for discussion of the Company’s guarantee of a $5 million note payable of Majestic 21. |
Other Investments | Other Investments The Company has a 48.5% investment interest in a retirement manufactured home community, CRF III, Ltd. (Cypress Creek) located in Winter Haven, Florida. The Company has the right to assign some of its ownership to partners other than Nobility Homes. During 2015, the Company’s investment in Cypress Creek was reduced to zero from recurring operating losses. See further discussion of these investments in Note 5. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets – |
Customer Deposits | Customer Deposits – |
Company Owned Life Insurance | Company Owned Life Insurance |
Warranty Costs | Warranty Costs – 2015 2014 Beginning accrued warranty expense $ 75,000 $ 75,000 Less: reduction for payments (326,988 ) (195,819 ) Plus: additions to accrual 351,988 195,819 Ending accrued warranty expense $ 100,000 $ 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 |
Stock-Based Compensation | Stock-Based Compensation – T |
Rebate Program | Rebate Program – |
Advertising | Advertising – |
Audit Fees | Audit Fees – |
Income Taxes | Income Taxes – |
Net Income per Share | Net Income per Share – |
Shipping and Handling Costs | Shipping and Handling Costs – |
Comprehensive Income | Comprehensive Income – |
Segments | Segments – |
Major Customers | Major Customers – |
Concentration of Credit Risk | Concentration of Credit Risk – |
Concentration of Retail Financing Sources | Concentration of Retail Financing Sources – |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements – |
Fair Value Measurements | ASC No. 820 defines fair value as the price that would be received upon the sale of an asset or paid to transfer a liability (i.e. exit price) in an orderly transaction between market participants at the measurement date. ASC 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 Signific22
Reporting Entity and Significant Accounting Policies (Tables) | 12 Months Ended |
Oct. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Revenues by Products and Services | Revenues by Products and Services 2015 2014 Manufactured housing $ 25,904,715 $ 17,814,751 Pre-owned homes 1,721,072 3,133,153 Insurance agent commissions 211,017 204,355 Total net sales $ 27,836,804 $ 21,152,259 |
Summary of Amounts Related to Limited Warranty | Amounts related to these warranties for fiscal years 2015 and 2014 are as follows: 2015 2014 Beginning accrued warranty expense $ 75,000 $ 75,000 Less: reduction for payments (326,988 ) (195,819 ) Plus: additions to accrual 351,988 195,819 Ending accrued warranty expense $ 100,000 $ 75,000 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Oct. 31, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Short-term Investments | The following is a summary of short-term investments (available for sale): October 31, 2015 Amortized Cost Gross Gross Estimated Fair Equity securities in a public company $ 167,930 $ 294,648 $ — $ 462,578 November 1, 2014 Amortized Cost Gross Gross Estimated Fair Equity securities in a public company $ 167,930 $ 328,514 $ — $ 496,444 |
Fair Values of Financial Inve24
Fair Values of Financial Investments (Tables) | 12 Months Ended |
Oct. 31, 2015 | |
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 October 31, 2015 and November 1, 2014. October 31, 2015 Level 1 Level 2 Level 3 Equity securities in a public company $ 462,578 $ — $ — $ 462,578 $ — $ — November 1, 2014 Level 1 Level 2 Level 3 Equity securities in a public company $ 496,444 $ — $ — Non-recurring fair value investment — — 146,403 $ 496,444 $ — $ 146,403 |
Other Investments (Tables)
Other Investments (Tables) | 12 Months Ended |
Oct. 31, 2015 | |
Summary of Change in Investments | The following table summarizes the change in the investments for fiscal year 2015 and 2014: Walden Woods Cypress Creek Investment at November 2, 2013 $ — $ 467,934 Losses on investment — (321,531 ) Investment at November 1, 2014 — 146,403 Losses on investment — (146,403 ) Investment at October 31, 2015 $ — $ — |
Majestic 21 [Member] | |
Summarized Financial Information of Company's Other Investments | The following is summarized financial information of the Company’s joint venture: October 31, 2015 November 1, 2014 Total Assets $ 14,499,423 $ 16,457,594 Total Liabilities $ 10,511,965 $ 11,747,081 Total Equity $ 3,987,458 $ 4,710,513 Net Income $ 276,945 $ 269,840 |
Walden Woods and Cypress Creek [Member] | |
Summarized Financial Information of Company's Other Investments | The following is summarized financial information of Walden Woods and Cypress Creek as of September 30, 2015 and September 30, 2014*: September 30, 2015 September 30, 2014 Total Assets $ 13,273,488 $ 13,477,599 Total Liabilities $ 17,101,517 $ 16,271,729 Total Deficit $ (3,828,029 ) $ (2,794,130 ) * 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 |
Oct. 31, 2015 | |
Inventory Disclosure [Abstract] | |
Summary of Breakdown of Elements of Inventory | A breakdown of the elements of inventory at October 31, 2015 and November 1, 2014 is as follows: October 31, 2015 November 1, 2014 Raw materials $ 721,751 $ 622,831 Work-in-process 113,891 114,368 Finished homes 5,114,568 4,722,923 Model home furniture and others 69,495 56,418 Inventories, net $ 6,019,705 $ 5,516,540 Pre-owned homes * $ 5,516,272 $ 6,322,483 Inventory impairment reserve (1,425,108 ) (1,772,280 ) 4,091,164 4,550,203 Less homes expected to sell in 12 months (1,366,974 ) (2,839,203 ) Pre-owned homes, long-term $ 2,724,190 $ 1,711,000 * The following table summarizes a breakdown of pre-owned homes inventory for fiscal year 2015 and 2014: Total pre-owned homes Balance at November 2, 2013 $ 9,215,590 Purchased 525,436 Sold (3,418,543 ) Balance at November 1, 2014 6,322,483 Purchased 932,197 Sold (1,738,408 ) Balance at October 31, 2015 $ 5,516,272 |
Analysis of Inventory Impairment Reserve | An analysis of the inventory impairment reserve at October 31, 2015 and November 1, 2014 is as follows: October 31, 2015 November 1, 2014 Beginning inventory impairment reserve $ 1,772,280 $ 2,711,595 Less: Reductions for homes sold (258,001 ) (691,094 ) Inventory holding costs (141,468 ) (211,334 ) Plus: Additions (subtractions) to impairment reserve 52,297 (36,887 ) Ending inventory impairment reserve $ 1,425,108 $ 1,772,280 |
Properties, Plant and Equipme27
Properties, Plant and Equipment (Tables) | 12 Months Ended |
Oct. 31, 2015 | |
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 October 31, 2015 November 1, 2014 Land — $ 2,349,383 $ 2,349,383 Land improvements 10-20 839,912 839,912 Buildings and improvements 15-40 2,813,761 2,786,761 Machinery and equipment 3-10 1,180,377 1,089,401 Furniture and fixtures 3-10 437,432 437,432 7,620,865 7,502,889 Less accumulated depreciation (3,655,987 ) (3,545,818 ) $ 3,964,878 $ 3,957,071 |
Accrued Expenses and Other Cu28
Accrued Expenses and Other Current Liabilities (Tables) | 12 Months Ended |
Oct. 31, 2015 | |
Payables and Accruals [Abstract] | |
Summary of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities are comprised of the following: October 31, 2015 November 1, 2014 Accrued warranty expense $ 100,000 $ 75,000 Accrued taxes 261,289 215,807 Other accrued expenses 564,915 235,489 Total accrued expenses and other current liabilities $ 926,204 $ 526,296 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Oct. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Summary of Provision for Income Taxes | The provision for income taxes for the years ended consists of the following: October 31, 2015 November 1, 2014 Current tax expense: Federal $ 5,629 $ 4,036 State — — 5,629 4,036 Deferred tax expense 1,105,489 489,921 Valuation allowance (975,312 ) (489,921 ) Income tax expense $ 135,806 $ 4,036 |
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: October 31, 2015 November 1, 2014 Provision—federal statutory tax rate $ 1,037,408 $ 429,057 Increase (decrease) resulting from: State taxes, net of federal tax benefit 110,759 45,808 Permanent differences: Stock option expirations 6,045 20,773 Other (43,094 ) (1,681 ) Changes in DTA valuation allowance (975,312 ) (489,921 ) Income tax expense $ 135,806 $ 4,036 |
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: October 31, 2015 November 1, 2014 Deferred tax assets: Allowance for doubtful accounts $ 87,261 $ 87,261 Inventories 651,980 782,308 Carrying value of other investments 1,186,668 1,939,918 Accrued expenses 75,141 58,311 Stock-based compensation 8,971 10,507 Net operating loss — 231,289 Valuation allowance — (975,312 ) Total deferred tax assets 2,010,021 2,134,282 Deferred tax liabilities: Depreciation (37,982 ) (33,288 ) State income tax refunds (29,598 ) (29,598 ) Amortization (58,810 ) (58,810 ) Prepaid expenses (17,808 ) (16,586 ) Net deferred tax assets $ 1,865,823 $ 1,996,000 |
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: October 31, 2015 November 1, 2014 Current assets: Deferred tax assets $ 814,381 $ 927,879 Deferred tax liabilities (159,188 ) (170,710 ) Valuation allowance — (248,535 ) Net current deferred taxes 655,193 508,634 Non-current assets: Deferred tax assets 1,307,422 2,306,241 Deferred tax liabilities (96,792 ) (92,098 ) Valuation allowance — (726,777 ) Net non-current deferred taxes 1,210,630 1,487,366 Net deferred tax asset $ 1,865,823 $ 1,996,000 |
Stock Option Plan (Tables)
Stock Option Plan (Tables) | 12 Months Ended |
Oct. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Options Granted | A summary of information with respect to options granted is as follows: Number of Stock Option Price Weighted Aggregate Outstanding at November 2, 2013 30,400 7.91 - 18.50 13.58 Granted — — — Exercised (5,875 ) 7.91 - 8.49 7.93 Canceled (17,525 ) 7.91 - 18.50 17.30 Outstanding at November 1, 2014 7,000 $ 7.91 - 10.45 $ 9.02 Granted — — — Exercised (2,000 ) 7.91 7.91 Canceled — — — Outstanding at October 31, 2015 5,000 $ 8.49 - 10.45 $ 9.47 $ 16,900 |
Outstanding Stock Options | The following table summarizes information about the outstanding stock options at October 31, 2015: Options Outstanding Options Exercisable Exercise Prices Shares Weighted Weighted Number Weighted $10.45 2,500 1 $ 10.45 2,500 $ 10.45 $ 8.49 2,500 — 8.49 1,750 8.49 5,000 1 $ 9.47 4,250 $ 9.64 |
Commitments and Contingent Li31
Commitments and Contingent Liabilities (Tables) | 12 Months Ended |
Oct. 31, 2015 | |
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 October 31, 2015 are as follows for the fiscal years ending: 2016 $ 30,388 2017 $ 20,009 |
Reporting Entity and Signific32
Reporting Entity and Significant Accounting Policies - Additional Information (Detail) | 12 Months Ended | |
Oct. 31, 2015USD ($)RetailerSegmentPlant | Nov. 01, 2014USD ($) | |
Schedule Of Organization And Summary Of Significant Accounting Policies [Line Items] | ||
Number of retail centers | Retailer | 10 | |
Guarantee obligations note payable principal amount | $ 5,000,000 | |
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 | $ 243,000 | $ 262,500 |
Number of Segment | Segment | 1 | |
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | ||
Schedule Of Organization And Summary Of Significant Accounting Policies [Line Items] | ||
Accounts receivable due from customers | $ 2,754,599 | 1,963,520 |
Real Estate Investment Trust One [Member] | Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | ||
Schedule Of Organization And Summary Of Significant Accounting Policies [Line Items] | ||
Sales from major customers | $ 1,209,705 | $ 304,345 |
Percentage of sales from major customers | 4.00% | 1.00% |
Real Estate Investment Trust Two [Member] | Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | ||
Schedule Of Organization And Summary Of Significant Accounting Policies [Line Items] | ||
Sales from major customers | $ 2,166,625 | $ 1,700,910 |
Percentage of sales from major customers | 8.00% | 8.00% |
Other Real Estate Investment Trust [Member] | Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | ||
Schedule Of Organization And Summary Of Significant Accounting Policies [Line Items] | ||
Sales from major customers | $ 3,120,000 | $ 1,908,125 |
Percentage of sales from major customers | 11.00% | 9.00% |
Majestic 21 [Member] | ||
Schedule Of Organization And Summary Of Significant Accounting Policies [Line Items] | ||
Variable Interest Entity | 50.00% | |
Impairment charges related to Investment in Majestic 21 | $ 0 | $ 0 |
Guarantee obligations note payable principal amount | $ 5,000,000 | |
Percentage of ownership interest | 50.00% | |
Walden Woods [Member] | ||
Schedule Of Organization And Summary Of Significant Accounting Policies [Line Items] | ||
Percentage of ownership interest | 31.30% | |
CRF III, Ltd [Member] | ||
Schedule Of Organization And Summary Of Significant Accounting Policies [Line Items] | ||
Percentage of ownership interest | 48.50% | |
Ocala Fl [Member] | ||
Schedule Of Organization And Summary Of Significant Accounting Policies [Line Items] | ||
Number of manufacturing plants | Plant | 1 |
Reporting Entity and Signific33
Reporting Entity and Significant Accounting Policies - Revenues by Products and Services (Detail) - USD ($) | 12 Months Ended | |
Oct. 31, 2015 | Nov. 01, 2014 | |
Sales Information [Line Items] | ||
Total net sales | $ 27,836,804 | $ 21,152,259 |
Manufactured Housing [Member] | ||
Sales Information [Line Items] | ||
Total net sales | 25,904,715 | 17,814,751 |
Pre-Owned Homes [Member] | ||
Sales Information [Line Items] | ||
Total net sales | 1,721,072 | 3,133,153 |
Insurance Agent Commissions [Member] | ||
Sales Information [Line Items] | ||
Total net sales | $ 211,017 | $ 204,355 |
Reporting Entity and Signific34
Reporting Entity and Significant Accounting Policies - Summary of Amounts Related to Limited Warranty (Detail) - USD ($) | 12 Months Ended | |
Oct. 31, 2015 | Nov. 01, 2014 | |
Accounting Policies [Abstract] | ||
Beginning accrued warranty expense | $ 75,000 | $ 75,000 |
Less: reduction for payments | (326,988) | (195,819) |
Plus: additions to accrual | 351,988 | 195,819 |
Ending accrued warranty expense | $ 100,000 | $ 75,000 |
Investments - Summary of Short-
Investments - Summary of Short-term Investments (Detail) - USD ($) | Oct. 31, 2015 | Nov. 01, 2014 |
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale Securities, Amortized Cost | $ 167,930 | $ 167,930 |
Available-for-sale Securities, Gross Unrealized Gains | 294,648 | 328,514 |
Available-for-sale Securities, Gross Unrealized Losses | 0 | 0 |
Available-for-sale Securities, Estimated Fair Value | $ 462,578 | $ 496,444 |
Fair Values of Financial Inve36
Fair Values of Financial Investments - Summary of Financial Assets and Liabilities Carried at Fair Value (Detail) - USD ($) | Oct. 31, 2015 | Nov. 01, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities in a public company | $ 462,578 | $ 496,444 |
Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities in a public company | 462,578 | 496,444 |
Fair value of investments | $ 462,578 | 496,444 |
Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Non-recurring fair value investment | 146,403 | |
Fair value of investments | $ 146,403 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) | Oct. 31, 2015 |
TLT Incorporation [Member] | |
Related Party Transaction [Line Items] | |
Percentage of ownership interest | 50.00% |
Walden Woods [Member] | |
Related Party Transaction [Line Items] | |
Percentage of ownership interest | 31.30% |
Walden Woods [Member] | Majority Shareholder [Member] | |
Related Party Transaction [Line Items] | |
Percentage of ownership interest | 51.00% |
President [Member] | TLT Incorporation [Member] | Minimum Range [Member] | |
Related Party Transaction [Line Items] | |
Percentage of ownership interest | 24.75% |
President [Member] | TLT Incorporation [Member] | Maximum Range [Member] | |
Related Party Transaction [Line Items] | |
Percentage of ownership interest | 49.50% |
Executive Vice President [Member] | TLT Incorporation [Member] | Minimum Range [Member] | |
Related Party Transaction [Line Items] | |
Percentage of ownership interest | 49.50% |
Executive Vice President [Member] | TLT Incorporation [Member] | Maximum Range [Member] | |
Related Party Transaction [Line Items] | |
Percentage of ownership interest | 57.75% |
Other Investments - Additional
Other Investments - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Oct. 31, 2015 | Nov. 01, 2014 | Nov. 01, 1997 | |
Investment [Line Items] | |||
Guarantee obligations note payable principal amount | $ 5,000,000 | ||
Distributions from joint venture - Majestic 21 | $ 500,000 | $ 0 | |
Majestic 21 [Member] | |||
Investment [Line Items] | |||
Amount invested in joint venture - Majestic 21 | $ 250,000 | ||
Percentage of ownership interest | 50.00% | ||
Variable Interest Entity | 50.00% | ||
Profit and loss basis point | 50/50 basis | ||
Guarantee obligations note payable principal amount | $ 5,000,000 | ||
Walden Woods [Member] | |||
Investment [Line Items] | |||
Percentage of ownership interest | 31.30% | ||
CRF III, Ltd [Member] | |||
Investment [Line Items] | |||
Percentage of ownership interest | 48.50% |
Other Investments - Summarized
Other Investments - Summarized Financial Information of Company's Joint Venture (Detail) - Majestic 21 [Member] - USD ($) | 12 Months Ended | |
Oct. 31, 2015 | Nov. 01, 2014 | |
Schedule of Equity Method Investments [Line Items] | ||
Total Assets | $ 14,499,423 | $ 16,457,594 |
Total Liabilities | 10,511,965 | 11,747,081 |
Total Equity | 3,987,458 | 4,710,513 |
Net Income | $ 276,945 | $ 269,840 |
Other Investments - Summarize40
Other Investments - Summarized Financial Information of Walden Woods and Cypress Creek (Detail) - Walden Woods and Cypress Creek [Member] - USD ($) | Sep. 30, 2015 | Sep. 30, 2014 |
Schedule of Equity Method Investments [Line Items] | ||
Total Assets | $ 13,273,488 | $ 13,477,599 |
Total Liabilities | 17,101,517 | 16,271,729 |
Total Deficit | $ (3,828,029) | $ (2,794,130) |
Other Investments - Summary of
Other Investments - Summary of Change in Investments and Costs Incurred (Detail) - Cypress Creek [Member] - USD ($) | 12 Months Ended | |
Oct. 31, 2015 | Nov. 01, 2014 | |
Investment [Line Items] | ||
Investment, Beginning Balance | $ 146,403 | $ 467,934 |
Losses on investment | $ (146,403) | (321,531) |
Investment, Ending Balance | $ 146,403 |
Inventories - Summary of Breakd
Inventories - Summary of Breakdown of Elements of Inventory (Detail) - USD ($) | Oct. 31, 2015 | Nov. 01, 2014 | Nov. 02, 2013 |
Inventory Disclosure [Abstract] | |||
Raw materials | $ 721,751 | $ 622,831 | |
Work-in-process | 113,891 | 114,368 | |
Finished homes | 5,114,568 | 4,722,923 | |
Model home furniture and others | 69,495 | 56,418 | |
Inventories, net | 6,019,705 | 5,516,540 | |
Pre-owned homes | 5,516,272 | 6,322,483 | $ 9,215,590 |
Inventory impairment reserve | (1,425,108) | (1,772,280) | $ (2,711,595) |
Pre-owned homes, net | 4,091,164 | 4,550,203 | |
Pre-owned homes, net | 4,091,164 | 4,550,203 | |
Less homes expected to sell in 12 months | (1,366,974) | (2,839,203) | |
Pre-owned homes, long-term | $ 2,724,190 | $ 1,711,000 |
Inventories - Summary of Brea43
Inventories - Summary of Breakdown of Elements of Inventory (Parenthetical) (Detail) - USD ($) | 12 Months Ended | |
Oct. 31, 2015 | Nov. 01, 2014 | |
Inventory Disclosure [Abstract] | ||
Beginning Balance | $ 6,322,483 | $ 9,215,590 |
Purchased | 932,197 | 525,436 |
Sold | (1,738,408) | (3,418,543) |
Ending Balance | $ 5,516,272 | $ 6,322,483 |
Inventories - Analysis of Inven
Inventories - Analysis of Inventory Impairment Reserve (Detail) - USD ($) | 12 Months Ended | |
Oct. 31, 2015 | Nov. 01, 2014 | |
Inventory Disclosure [Abstract] | ||
Beginning inventory impairment reserve | $ 1,772,280 | $ 2,711,595 |
Less: Reductions for homes sold | (258,001) | (691,094) |
Inventory holding costs | (141,468) | (211,334) |
Plus: Additions (subtractions) to impairment reserve | 52,297 | (36,887) |
Ending inventory impairment reserve | $ 1,425,108 | $ 1,772,280 |
Properties, Plant and Equipme45
Properties, Plant and Equipment - Property, Plant and Equipment with Estimated Useful Lives and Related Accumulated Depreciation (Detail) - USD ($) | 12 Months Ended | |
Oct. 31, 2015 | Nov. 01, 2014 | |
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment, gross | $ 7,620,865 | $ 7,502,889 |
Less accumulated depreciation | (3,655,987) | (3,545,818) |
Property plant and equipment, net | 3,964,878 | 3,957,071 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment, gross | 2,349,383 | 2,349,383 |
Land Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment, gross | 839,912 | 839,912 |
Building and Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment, gross | 2,813,761 | 2,786,761 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment, gross | 1,180,377 | 1,089,401 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment, gross | $ 437,432 | $ 437,432 |
Minimum Range [Member] | Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment, estimated useful life | ||
Minimum Range [Member] | Land Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment, estimated useful life | 10 years | |
Minimum Range [Member] | Building and Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment, estimated useful life | 15 years | |
Minimum Range [Member] | Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment, estimated useful life | 3 years | |
Minimum Range [Member] | Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment, estimated useful life | 3 years | |
Maximum Range [Member] | Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment, estimated useful life | ||
Maximum Range [Member] | Land Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment, estimated useful life | 20 years | |
Maximum Range [Member] | Building and Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment, estimated useful life | 40 years | |
Maximum Range [Member] | Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment, estimated useful life | 10 years | |
Maximum Range [Member] | Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment, estimated useful life | 10 years |
Accrued Expenses and Other Cu46
Accrued Expenses and Other Current Liabilities - Summary of Accrued Expenses and Other Current Liabilities (Detail) - USD ($) | Oct. 31, 2015 | Nov. 01, 2014 |
Payables and Accruals [Abstract] | ||
Accrued warranty expense | $ 100,000 | $ 75,000 |
Accrued taxes | 261,289 | 215,807 |
Other accrued expenses | 564,915 | 235,489 |
Total accrued expenses and other current liabilities | $ 926,204 | $ 526,296 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Oct. 31, 2015 | Nov. 01, 2014 | |
Income Tax Disclosure [Abstract] | ||
Percentage of tax benefit | 50.00% | |
Tax benefit | $ 0 | |
Unused net operating loss carry forwards | $ 600,000 | |
Realization of deferred tax assets | 2,000,000 | |
Valuation allowance | $ 0 | $ (975,312) |
Income Taxes - Summary of Provi
Income Taxes - Summary of Provision for Income Taxes (Detail) - USD ($) | 12 Months Ended | |
Oct. 31, 2015 | Nov. 01, 2014 | |
Current tax expense: | ||
Federal | $ 5,629 | $ 4,036 |
State | 0 | 0 |
Total current tax expense (benefit) | 5,629 | 4,036 |
Deferred tax expense | 1,105,489 | 489,921 |
Valuation allowance | (975,312) | (489,921) |
Income tax expense | $ 135,806 | $ 4,036 |
Income Taxes - Reconciliation b
Income Taxes - Reconciliation between Statutory Federal Income Tax Rate and Actual Provision for Income Taxes (Detail) - USD ($) | 12 Months Ended | |
Oct. 31, 2015 | Nov. 01, 2014 | |
Income Tax Disclosure [Abstract] | ||
Provision-federal statutory tax rate | $ 1,037,408 | $ 429,057 |
Increase (decrease) resulting from: | ||
State taxes, net of federal tax benefit | 110,759 | 45,808 |
Permanent differences: | ||
Stock option expirations | 6,045 | 20,773 |
Other | (43,094) | (1,681) |
Changes in DTA valuation allowance | (975,312) | (489,921) |
Income tax expense | $ 135,806 | $ 4,036 |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Deferred Tax Liabilities (Detail) - USD ($) | Oct. 31, 2015 | Nov. 01, 2014 |
Deferred tax assets: | ||
Allowance for doubtful accounts | $ 87,261 | $ 87,261 |
Inventories | 651,980 | 782,308 |
Carrying value of other investments | 1,186,668 | 1,939,918 |
Accrued expenses | 75,141 | 58,311 |
Stock-based compensation | 8,971 | 10,507 |
Net operating loss | 231,289 | |
Valuation allowance | 0 | (975,312) |
Total deferred tax assets | 2,010,021 | 2,134,282 |
Deferred tax liabilities: | ||
Depreciation | (37,982) | (33,288) |
State income tax refunds | (29,598) | (29,598) |
Amortization | (58,810) | (58,810) |
Prepaid expenses | (17,808) | (16,586) |
Net deferred tax asset | $ 1,865,823 | $ 1,996,000 |
Income Taxes - Accompanying Def
Income Taxes - Accompanying Deferred Current and Non-current Tax Assets and Liabilities in Consolidated Balance Sheet (Detail) - USD ($) | Oct. 31, 2015 | Nov. 01, 2014 |
Current assets: | ||
Deferred tax assets | $ 814,381 | $ 927,879 |
Deferred tax liabilities | (159,188) | (170,710) |
Valuation allowance | (248,535) | |
Net current deferred taxes | 655,193 | 508,634 |
Non-current assets: | ||
Deferred tax assets | 1,307,422 | 2,306,241 |
Deferred tax liabilities | (96,792) | (92,098) |
Valuation allowance | (726,777) | |
Net non-current deferred taxes | 1,210,630 | 1,487,366 |
Net deferred tax asset | $ 1,865,823 | $ 1,996,000 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - shares | 12 Months Ended | |
Oct. 31, 2015 | Nov. 01, 2014 | |
Equity [Abstract] | ||
Repurchased shares of common stock | 34,800 | 0 |
Stock Option Plan - Additional
Stock Option Plan - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Oct. 31, 2015 | Nov. 01, 2014 | Nov. 02, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares reserved for issuance | 300,000 | ||
Options Outstanding, Shares Outstanding | 5,000 | 7,000 | 30,400 |
Compensation cost related to stock options | $ 9,000 | $ 8,000 | |
Unrecognized compensation cost related to non-vested | $ 602 | ||
Weighted average period | 1 month 21 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 Gran
Stock Option Plan - Option Granted (Detail) - USD ($) | 12 Months Ended | |
Oct. 31, 2015 | Nov. 01, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Outstanding Beginning, Number of Shares | 7,000 | 30,400 |
Granted, Number of Shares | 0 | 0 |
Exercised, Number of Shares | (2,000) | (5,875) |
Canceled, Number of Shares | 17,525 | |
Outstanding Ending, Number of Shares | 5,000 | 7,000 |
Granted, Stock Option Price Range | $ 0 | $ 0 |
Exercised, Stock Option Price Range | 7.91 | |
Outstanding Beginning, Weighted Average Exercise Price | 9.02 | 13.58 |
Granted, Weighted Average Exercise Price | 0 | 0 |
Exercised, Weighted Average Exercise Price | 7.91 | 7.93 |
Canceled, Weighted Average Exercise Price | 17.30 | |
Outstanding Ending, Weighted Average Exercise Price | $ 9.47 | 9.02 |
Outstanding Ending, Aggregate Intrinsic Value | $ 16,900 | |
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 | 0 | 0 |
Exercised, Stock Option Price Range | 7.91 | |
Canceled, Stock Option Price Range | 7.91 | |
Outstanding Ending, Stock Option Price Range | 8.49 | 7.91 |
Maximum Range [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Outstanding Beginning, Stock Option Price Range | 10.45 | 18.50 |
Granted, Stock Option Price Range | 0 | 0 |
Exercised, Stock Option Price Range | 8.49 | |
Canceled, Stock Option Price Range | 18.50 | |
Outstanding Ending, Stock Option Price Range | $ 10.45 | $ 10.45 |
Stock Option Plan - Outstanding
Stock Option Plan - Outstanding Stock Options (Detail) - $ / shares | 12 Months Ended | ||
Oct. 31, 2015 | Nov. 01, 2014 | Nov. 02, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options Outstanding, Shares Outstanding | 5,000 | 7,000 | 30,400 |
Options Outstanding, Weighted Average Remaining Contractual Life (years) | 1 year | ||
Options Outstanding, Weighted Average Exercise Price | $ 9.47 | ||
Options Exercisable, Weighted Average Exercise Price | $ 9.64 | ||
Options Exercisable, Number Exercisable | 4,250 | ||
Range One [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options Outstanding, Exercise Price | $ 10.45 | ||
Options Outstanding, Shares Outstanding | 2,500 | ||
Options Outstanding, Weighted Average Remaining Contractual Life (years) | 1 year | ||
Options Outstanding, Weighted Average Exercise Price | $ 10.45 | ||
Options Exercisable, Weighted Average Exercise Price | $ 10.45 | ||
Options Exercisable, Number Exercisable | 2,500 | ||
Range Two [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options Outstanding, Exercise Price | $ 8.49 | ||
Options Outstanding, Shares Outstanding | 2,500 | ||
Options Outstanding, Weighted Average Remaining Contractual Life (years) | 0 years | ||
Options Outstanding, Weighted Average Exercise Price | $ 8.49 | ||
Options Exercisable, Weighted Average Exercise Price | $ 8.49 | ||
Options Exercisable, Number Exercisable | 1,750 |
Employee Benefit Plan - Additio
Employee Benefit Plan - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Oct. 31, 2015 | Nov. 01, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Maximum employee compensation | 6.00% | |
Contribution expense charged to operations | $ 20,000 | $ 0 |
Maximum Range [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of discretionary matching contribution | 20.00% |
Commitments and Contingent Li57
Commitments and Contingent Liabilities - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Oct. 31, 2015 | Nov. 01, 2014 | |
Commitments And Contingencies [Line Items] | ||
Total rent expenses for operating leases | $ 189,333 | $ 183,631 |
Percentage of joint venture loan guaranteed by company | 50.00% | |
Guarantee obligations note payable principal amount | $ 5,000,000 | |
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 | $ 1,294,148 | |
Collateral value for pool of loan securing note payable by joint venture | 2,167,170 | |
Loan loss reserve | $ 170,573 | |
Loan loss reserve as percentage of portfolio | 1.19% | |
Majestic 21 [Member] | ||
Commitments And Contingencies [Line Items] | ||
Guarantee obligations note payable principal amount | $ 5,000,000 | |
Percentage of ownership interest | 50.00% | |
Percentage of outstanding principal balance, Company's maximum exposure | 50.00% | |
Amount of outstanding principal balance, Company's maximum exposure | $ 647,074 |
Commitments and Contingent Li58
Commitments and Contingent Liabilities - Future Minimum Payments by Year (Detail) | Oct. 31, 2015USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,016 | $ 30,388 |
2,017 | $ 20,009 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - USD ($) | Dec. 16, 2016 | Nov. 20, 2015 | Oct. 31, 2015 | Nov. 01, 2014 |
Subsequent Event [Line Items] | ||||
Repurchased shares of common stock | 34,800 | 0 | ||
Purchase price of common stock | $ 360,844 | |||
Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Repurchased shares of common stock | 4,800 | 6,475 | ||
Purchase price of common stock | $ 57,600 | $ 74,786 |