Nobility Homes (NOBH) 10-Q 14 Jun 19 2019 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	May 04, 2019	Jun. 14, 2019
Document and Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	May 4, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q2
Entity Registrant Name	NOBILITY HOMES INC
Entity Central Index Key	0000072205
Current Fiscal Year End Date	--11-03
Entity Filer Category	Non-accelerated Filer
Trading Symbol	NOBH
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		3,844,320
Entity Small Business	true

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	May 04, 2019	Nov. 03, 2018
Current assets:
Cash and cash equivalents	$ 23,066,346	$ 28,364,861
Certificates of Deposit	8,079,072	6,034,093
Short-term investments	578,250	537,767
Accounts receivable - trade	2,097,164	1,783,073
Note receivable	67,900	46,444
Mortgage notes receivable	16,706	15,664
Inventories	8,227,752	7,270,550
Pre-owned homes, net	821,781	933,640
Prepaid expenses and other current assets	1,573,860	1,090,152
Total current assets	44,528,831	46,076,244
Property, plant and equipment, net	4,844,129	4,763,566
Pre-owned homes, net	457,577	473,191
Note receivable, less current portion	59,600	46,265
Mortgage notes receivable, less current portion	234,322	236,402
Other investments	1,611,921	1,571,166
Property held for sale	213,437	213,437
Deferred income taxes		40,156
Cash surrender value of life insurance	3,527,974	3,437,974
Other assets	156,287	156,287
Total assets	55,634,078	57,014,688
Current liabilities:
Accounts payable	1,052,935	1,085,095
Accrued compensation	788,187	869,657
Accrued expenses and other current liabilities	1,754,245	1,349,381
Income taxes payable	618,363	579,786
Customer deposits	3,069,439	4,064,268
Total current liabilities	7,283,169	7,948,187
Deferred income taxes	28,017
Total liabilities	7,311,186	7,948,187
Commitments and contingent liabilities
Stockholders' equity:
Preferred stock, $.10 par value, 500,000 shares authorized; none issued and outstanding
Common stock, $.10 par value, 10,000,000 shares authorized; 5,364,907 shares issued; 3,860,513 and 3,873,731 outstanding	536,491	536,491
Additional paid in capital	10,678,137	10,670,848
Retained earnings	49,843,861	50,352,546
Accumulated other comprehensive income	446,119	390,407
Less treasury stock at cost, 1,504,394 shares in 2019 and 1,491,176 shares in 2018	(13,181,716)	(12,883,791)
Total stockholders' equity	48,322,892	49,066,501
Total liabilities and stockholders' equity	$ 55,634,078	$ 57,014,688

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	May 04, 2019	Nov. 03, 2018
Statement of Financial Position [Abstract]
Preferred stock, par value	$ 0.10	$ 0.10
Preferred stock, shares authorized	500,000	500,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.10	$ 0.10
Common stock, shares authorized	10,000,000	10,000,000
Common stock, shares issued	5,364,907	5,364,907
Common Stock, shares outstanding	3,860,513	3,873,731
Treasury stock, shares	1,504,394	1,491,176

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income and Comprehensive Income - USD ($)	3 Months Ended		6 Months Ended
	May 04, 2019	May 05, 2018	May 04, 2019	May 05, 2018
Income Statement [Abstract]
Net sales	$ 12,742,688	$ 8,922,264	$ 23,782,462	$ 18,568,082
Cost of goods sold	(9,296,276)	(6,610,958)	(17,367,047)	(14,039,837)
Gross profit	3,446,412	2,311,306	6,415,415	4,528,245
Selling, general and administrative expenses	(1,310,686)	(1,119,359)	(2,507,858)	(2,246,141)
Operating income	2,135,726	1,191,947	3,907,557	2,282,104
Other income:
Interest income	145,026	81,446	297,469	117,383
Undistributed earnings in joint venture - Majestic 21	21,231	27,266	40,755	50,315
Proceeds received under escrow arrangement	108,119	55,640	212,607	55,640
Gain on sale of assets	15,242	203,512	15,242	203,512
Miscellaneous	13,962	6,850	22,880	12,584
Total other income	303,580	374,714	588,953	439,434
Income before provision for income taxes	2,439,306	1,566,661	4,496,510	2,721,538
Income tax expense	(619,581)	(431,056)	(1,140,979)	(569,697)
Net income	1,819,725	1,135,605	3,355,531	2,151,841
Other comprehensive income (loss)
Unrealized investment gain (loss), net of tax effect	39,172	(67,857)	55,712	(45,510)
Comprehensive income	$ 1,858,897	$ 1,067,748	$ 3,411,243	$ 2,106,331
Weighted average number of shares outstanding:
Basic	3,865,588	3,903,904	3,869,726	3,950,638
Diluted	3,867,802	3,906,077	3,871,943	3,952,650
Net income per share:
Basic	$ 0.47	$ 0.29	$ 0.87	$ 0.54
Diluted	$ 0.47	$ 0.29	$ 0.87	$ 0.54

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Changes in Stockholders' Equity - USD ($)	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income [Member]	Treasury Stock [Member]
Balance at Nov. 04, 2017	$ 47,414,297	$ 536,491	$ 10,669,231	$ 46,167,528	$ 412,233	$ (10,371,186)
Balance, shares at Nov. 04, 2017		3,997,569
Purchase of treasury stock	(94,500)					(94,500)
Purchase of treasury stock, shares		(4,500)
Stock-based compensation	441		441
Unrealized investment loss, net of tax effect	22,347				22,347
Net income	1,016,236			1,016,236
Balance at Feb. 03, 2018	48,358,821	$ 536,491	10,669,672	47,183,764	434,580	(10,465,686)
Balance, shares at Feb. 03, 2018		3,993,069
Balance at Nov. 04, 2017	47,414,297	$ 536,491	10,669,231	46,167,528	412,233	(10,371,186)
Balance, shares at Nov. 04, 2017		3,997,569
Unrealized investment loss, net of tax effect	(45,510)
Net income	2,151,841
Balance at May. 05, 2018	46,237,897	$ 536,491	10,670,113	47,540,755	366,724	(12,876,186)
Balance, shares at May. 05, 2018		3,874,069
Balance at Feb. 03, 2018	48,358,821	$ 536,491	10,669,672	47,183,764	434,580	(10,465,686)
Balance, shares at Feb. 03, 2018		3,993,069
Cash dividend	(778,614)			(778,614)
Purchase of treasury stock	(2,410,500)					(2,410,500)
Purchase of treasury stock, shares		(119,000)
Stock-based compensation	441		441
Unrealized investment loss, net of tax effect	(67,857)				(67,856)
Net income	1,135,605			1,135,605
Balance at May. 05, 2018	46,237,897	$ 536,491	10,670,113	47,540,755	366,724	(12,876,186)
Balance, shares at May. 05, 2018		3,874,069
Balance at Nov. 03, 2018	49,066,501	$ 536,491	10,670,848	50,352,546	390,407	(12,883,791)
Balance, shares at Nov. 03, 2018		3,873,731
Stock-based compensation	750		750
Unrealized investment loss, net of tax effect	(16,540)				(16,540)
Net income	1,535,806			1,535,806
Balance at Feb. 02, 2019	50,586,516	$ 536,491	10,671,598	51,888,351	373,867	(12,883,791)
Balance, shares at Feb. 02, 2019		3,873,731
Balance at Nov. 03, 2018	49,066,501	$ 536,491	10,670,848	50,352,546	390,407	(12,883,791)
Balance, shares at Nov. 03, 2018		3,873,731
Unrealized investment loss, net of tax effect	55,712
Net income	3,355,531
Balance at May. 04, 2019	48,322,892	$ 536,491	10,678,137	49,843,861	446,119	(13,181,716)
Balance, shares at May. 04, 2019		3,860,513
Balance at Feb. 02, 2019	50,586,516	$ 536,491	10,671,598	51,888,351	373,867	(12,883,791)
Balance, shares at Feb. 02, 2019		3,873,731
Cash dividend	(3,864,216)			(3,864,216)
Purchase of treasury stock	(302,115)					(302,115)
Purchase of treasury stock, shares		(13,703)
Stock-based compensation	10,729		6,539			4,190
Stock-based compensation, shares		485
Unrealized investment loss, net of tax effect	39,172				72,252
Net income	1,819,725			1,819,725
Balance at May. 04, 2019	$ 48,322,892	$ 536,491	$ 10,678,137	$ 49,843,861	$ 446,119	$ (13,181,716)
Balance, shares at May. 04, 2019		3,860,513

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows - USD ($)	6 Months Ended
	May 04, 2019	May 05, 2018
Cash flows from operating activities:
Net income	$ 3,355,531	$ 2,151,841
Adjustments to reconcile net income to net cash provide by operating activities:
Depreciation	74,438	59,261
Deferred income taxes	83,402	(388,266)
Undistributed earnings in joint venture - Majestic 21	(40,755)	(50,315)
Gain on property held for sale	(15,242)	(203,512)
Gain on disposal of property, plant and equipment	(15,242)	0
Inventory impairment	0	105,000
Stock-based compensation	11,479	882
Decrease (increase) in:
Accounts receivable	(314,091)	1,152,052
Inventories	(957,202)	(383,723)
Pre-owned homes	127,473	301,083
Prepaid expenses and other current assets	(483,708)	(587,918)
Interest receivable	(44,979)	0
(Decrease) increase in:
Accounts payable	(32,160)	113,980
Accrued compensation	(81,470)	11,550
Accrued expenses and other current liabilities	404,864	35,960
Income taxes payable	38,577	187,963
Customer deposits	(994,829)	947,996
Net cash provided by operating activities	1,127,138	3,453,834
Cash flows from investing activities:
Purchase of property, plant and equipment	(197,259)	(469,007)
Purchase of certificates of deposit	(2,000,000)	0
Proceeds from property held for resale	0	589,530
Collections on note receivable	0	1,530,000
Collections on interest receivable	0	101,301
Collections on mortgage notes receivable	1,038	1,000
Collections on equipment notes receivable	22,709	19,602
Issurance of equipment note receivable	0	(25,451)
Increase in cash surrender value of life insurance	(90,000)	(90,000)
Net cash (used in) provided by investing activities	(2,263,512)	1,656,975
Cash flows from financing activities:
Payment of cash dividend	(3,864,216)	(778,614)
Purchase of treasury stock	(302,115)	(2,505,000)
Net cash used in financing activities	(4,162,141)	(3,283,614)
(Decrease) increase in cash and cash equivalents	(5,298,515)	1,827,195
Cash and cash equivalents at beginning of year	28,364,861	27,910,504
Cash and cash equivalents at end of quarter	23,066,346	29,737,699
Supplemental disclosure of cash flows information:
Income taxes paid	$ 1,019,000	$ 770,000

Basis of Presentation and Accou

Basis of Presentation and Accounting Policies	6 Months Ended
	May 04, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation and Accounting Policies	Note 1 Basis of Presentation and Accounting Policies The accompanying unaudited consolidated financial statements for the three and six months ended May 4, 2019 have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission for Form 10-Q. Accordingly, they do not include all the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. The unaudited financial information included in this report includes all adjustments (consisting of normal recurring adjustments) which are, in the opinion of management, necessary to reflect a fair statement of the results for the interim periods. The results of operations for the three and six months ended May 4, 2019 are not necessarily indicative of the results of the full fiscal year. The condensed consolidated financial statements included in this report should be read in conjunction with the financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended November 3, 2018. Recently Issued or Adopted Accounting Pronouncements – Effective November 4, 2018, the Company adopted the provisions of ASC 606 using the modified retrospective method. The adoption of the new revenue standards as of November 4, 2018 did not change our revenue recognition as the majority of our revenues continue to be recognized when the customer takes control of our product. As we did not identify any accounting changes that impacted the amount of reported revenues with respect to our product revenues, no adjustment to retained earnings was required upon adoption. Under the new revenue standards, revenues are recognized when our customer obtains control of promised goods or services, in an amount that reflects the consideration which we expect to receive in exchange for those goods or services. We recognize revenues following the five step model prescribed under ASU No. 2014-09: (i) identify contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenues when (or as) we satisfy the performance obligation. Product revenues We sell our products to the end user or wholesale distributors. Revenues from product sales are recognized when the customer obtains control of our product, which occurs at a point in time, typically upon delivery to the customer. We expense incremental costs of obtaining a contract as and when incurred if the expected amortization period of the asset that we would have recognized is one year or less or the amount is immaterial. We treat shipping and handling costs performed after a customer obtains control of the product as a fulfillment cost. We have identified one performance obligation in our contracts with customers which is the delivery of product to our customers. The transaction price is recognized in full when we deliver the product to our customer, which is the point at which we have satisfied our performance obligation. Reserves for Discounts and Allowances Revenues from product sales are recorded net of reserves established for applicable discounts and allowances that are offered within contracts with our customers and distributors. Our process for estimating reserves established for these variable consideration components do not differ materially from our historical practices. Product revenue reserves, which are classified as a reduction in product revenues, are generally characterized in the following categories: discounts, contractual adjustments and returns. These reserves are based on estimates of the amounts earned or to be claimed on the related sales and are classified as reductions of accounts receivable (if the amount is payable to our customer) or a liability (if the amount is payable to a party other than our customer). Our estimates of reserves established for variable consideration typically utilize the most likely method and reflect our historical experience, current contractual and statutory requirements, specific known market events and trends, industry data and forecasted customer buying and payment patterns. The transaction price, which includes variable consideration reflecting the impact of options, discounts and allowances, may be subject to constraint and is included in the net sales price only to the extent that it is probable that a significant reversal of the amount of the cumulative revenues recognized will not occur in a future period. Actual amounts may ultimately differ from our estimates. If actual results vary, we adjust these estimates, which could have an effect on earnings in the period of adjustment. For additional information on our revenues, please read Note 7, Revenues by Products and Services, to these condensed consolidated financial statements. In February 2016, the FASB issued Accounting Standards Update (ASU) No. 2016-02, “Leases” (ASU 2016-02). The core principle of ASU 2016-02 is that lessees should recognize on its balance sheet assets and liabilities arising from a lease. In accordance with that principle, ASU 2016-02 requires that a lessee recognize a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying leased asset for the lease term. Lessees shall classify all leases as finance or operating leases. This new accounting guidance is effective for public companies for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. The Company expects the adoption of ASU 2016-02 will result in the recognition of the right-of-use assets and related obligations on its consolidated financial statements.

Inventories

Inventories	6 Months Ended
	May 04, 2019
Inventory Disclosure [Abstract]
Inventories	Note 2 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 fair market value. The Company acquired certain repossessed pre-owned inventory (Buy Back Inventory) in 2011 as part of an Amendment of the Finance Revenue Sharing Agreement with 21 st Other pre-owned homes are acquired (Repossessions Inventory) as a convenience to the Company’s joint venture partner, 21st Mortgage Corporation. This inventory has been repossessed by 21 st st st st st st Other inventory costs are determined on a first-in, first-out basis. A breakdown of the elements of inventory is as follows: May 4, 2019 November 3, 2018 Raw materials $ 925,897 $ 904,399 Work-in-process 101,071 113,220 Finished homes 7,080,860 6,138,985 Model home furniture and others 119,924 113,946 Inventories $ 8,227,752 $ 7,270,550 Pre-owned homes $ 1,657,932 $ 1,956,265 Inventory impairment reserve (378,574 ) (549,434 ) 1,279,358 1,406,831 Less homes expected to sell in 12 months (821,781 ) (933,640 ) Pre-owned homes, long-term $ 457,577 $ 473,191

Short-term Investments

Short-term Investments	6 Months Ended
	May 04, 2019
Investments, Debt and Equity Securities [Abstract]
Short-term Investments	Note 3 Short-term Investments The following is a summary of short-term investments (available for sale): May 4, 2019 Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Equity securities in a public company $ 167,930 $ 410,320 $ — $ 578,250 November 3, 2018 Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Equity securities in a public company $ 167,930 $ 369,837 $ — $ 537,767 The fair values were estimated based on quoted market prices in active markets at each respective period end.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	6 Months Ended
	May 04, 2019
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	Note 4 Fair Value of Financial Instruments The carrying amount of cash and cash equivalents, accounts and notes receivable, accounts payable and accrued expenses approximates fair value because of the short maturity of those instruments. The Company accounts for the fair value of financial investments in accordance with FASB Accounting Standards Codification (ASC) No. 820 “Fair Value Measurements” (ASC 820). ASC 820 defines fair value as the price that would be received upon the sale of an asset or paid to transfer a liability (i.e. exit price) in an orderly transaction between market participants at the measurement date. ASC 820 requires disclosures that categorize assets and liabilities measured at fair value into one of three different levels depending on the assumptions (i.e. inputs) used in the valuation. Financial assets and liabilities are classified in their entirety based on the lowest level of input significant to the fair value measurement. The ASC 820 fair value hierarchy is defined as follows: • Level 1 - Valuations are based on unadjusted quoted prices in active markets for identical assets or liabilities. • Level 2 - Valuations are based on quoted prices for similar assets or liabilities in active markets, or quoted prices in markets that are not active for which significant inputs are observable, either directly or indirectly. • Level 3 - Valuations are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. Inputs reflect management’s best estimate of what market participants would use in valuing the asset or liability at the measurement date. The following tables represent the Company’s financial assets and liabilities which are carried at fair value. May 4, 2019 Level 1 Level 2 Level 3 Equity securities in a public company $ 578,250 $ — $ — November 3, 2018 Level 1 Level 2 Level 3 Equity securities in a public company $ 537,767 $ — $ —

Investment in Retirement Commun

Investment in Retirement Community Limited Partnership	6 Months Ended
	May 04, 2019
Equity Method Investments and Joint Ventures [Abstract]
Investment in Retirement Community Limited Partnership	Note 5 Investment in Retirement Community Limited Partnership The Company has a 31.3% limited partnership interest in Walden Woods South LLC (“Walden Woods”), which owns and operates a retirement community. The Company’s investment in Walden Woods is fully impaired at May 4, 2019 and November 3, 2018.

Net Income per Share

Net Income per Share	6 Months Ended
	May 04, 2019
Earnings Per Share [Abstract]
Net Income per Share	Note 6 Net Income per Share These financial statements include “basic” and “diluted” net income per share information for all periods presented. The basic net income per share is calculated by dividing net income by the weighted-average number of shares outstanding. The diluted net income per share is calculated by dividing net income by the weighted-average number of shares outstanding, adjusted for dilutive common shares.

Revenues by Products and Servic

Revenues by Products and Service	6 Months Ended
	May 04, 2019
Segment Reporting [Abstract]
Revenues by Products and Service	Note 7 Revenues by Products and Service The Company operates in one business segment, which is manufactured housing and ancillary services. The Company considers there to be revenue concentration risks for distribution of its products where net product revenues exceed 10% of consolidated net product revenues. for additional discussion. Revenues by net sales from manufactured housing, pre-owned homes and insurance agent commissions are as follows: Three Months Ended Six Months Ended May 4, 2019 May 5, 2018 May 4, 2019 May 5, 2018 Manufactured housing Homes sold through Company owned sales centers $ 10,092,761 $ 6,094,161 $ 18,529,718 $ 12,498,941 Homes sold to independent dealers 2,317,481 2,325,643 4,344,036 4,855,210 Homes sold through manufactured home parks 96,732 131,955 390,652 476,990 $ 12,506,974 $ 8,551,759 $ 23,264,406 $ 17,831,141 Pre-owned homes 159,080 301,096 381,195 609,457 Insurance agent commissions 76,634 69,409 136,861 127,484 Total net sales $ 12,742,688 $ 8,922,264 $ 23,782,462 $ 18,568,082

Subsequent Event

Subsequent Event	6 Months Ended
	May 04, 2019
Subsequent Events [Abstract]
Subsequent Event	Note 8 Subsequent Events The Company repurchased 16,193 shares of its common stock on May 20, 2019 at a price of $22.00.

Basis of Presentation and Acc_2

Basis of Presentation and Accounting Policies (Policies)	6 Months Ended
	May 04, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Recently Issued or Adopted Accounting Pronouncements	Recently Issued or Adopted Accounting Pronouncements – Effective November 4, 2018, the Company adopted the provisions of ASC 606 using the modified retrospective method. The adoption of the new revenue standards as of November 4, 2018 did not change our revenue recognition as the majority of our revenues continue to be recognized when the customer takes control of our product. As we did not identify any accounting changes that impacted the amount of reported revenues with respect to our product revenues, no adjustment to retained earnings was required upon adoption. Under the new revenue standards, revenues are recognized when our customer obtains control of promised goods or services, in an amount that reflects the consideration which we expect to receive in exchange for those goods or services. We recognize revenues following the five step model prescribed under ASU No. 2014-09: (i) identify contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenues when (or as) we satisfy the performance obligation.
Product revenues	Product revenues We sell our products to the end user or wholesale distributors. Revenues from product sales are recognized when the customer obtains control of our product, which occurs at a point in time, typically upon delivery to the customer. We expense incremental costs of obtaining a contract as and when incurred if the expected amortization period of the asset that we would have recognized is one year or less or the amount is immaterial. We treat shipping and handling costs performed after a customer obtains control of the product as a fulfillment cost. We have identified one performance obligation in our contracts with customers which is the delivery of product to our customers. The transaction price is recognized in full when we deliver the product to our customer, which is the point at which we have satisfied our performance obligation.
Reserves for Discounts and Allowances	Reserves for Discounts and Allowances Revenues from product sales are recorded net of reserves established for applicable discounts and allowances that are offered within contracts with our customers and distributors. Our process for estimating reserves established for these variable consideration components do not differ materially from our historical practices. Product revenue reserves, which are classified as a reduction in product revenues, are generally characterized in the following categories: discounts, contractual adjustments and returns. These reserves are based on estimates of the amounts earned or to be claimed on the related sales and are classified as reductions of accounts receivable (if the amount is payable to our customer) or a liability (if the amount is payable to a party other than our customer). Our estimates of reserves established for variable consideration typically utilize the most likely method and reflect our historical experience, current contractual and statutory requirements, specific known market events and trends, industry data and forecasted customer buying and payment patterns. The transaction price, which includes variable consideration reflecting the impact of options, discounts and allowances, may be subject to constraint and is included in the net sales price only to the extent that it is probable that a significant reversal of the amount of the cumulative revenues recognized will not occur in a future period. Actual amounts may ultimately differ from our estimates. If actual results vary, we adjust these estimates, which could have an effect on earnings in the period of adjustment. For additional information on our revenues, please read Note 7, Revenues by Products and Services, to these condensed consolidated financial statements. In February 2016, the FASB issued Accounting Standards Update (ASU) No. 2016-02, “Leases” (ASU 2016-02). The core principle of ASU 2016-02 is that lessees should recognize on its balance sheet assets and liabilities arising from a lease. In accordance with that principle, ASU 2016-02 requires that a lessee recognize a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying leased asset for the lease term. Lessees shall classify all leases as finance or operating leases. This new accounting guidance is effective for public companies for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. The Company expects the adoption of ASU 2016-02 will result in the recognition of the right-of-use assets and related obligations on its consolidated financial statements.

Inventories (Tables)

Inventories (Tables)	6 Months Ended
	May 04, 2019
Inventory Disclosure [Abstract]
Summary of Breakdown of Elements of Inventory	Other inventory costs are determined on a first-in, first-out basis. A breakdown of the elements of inventory is as follows: May 4, 2019 November 3, 2018 Raw materials $ 925,897 $ 904,399 Work-in-process 101,071 113,220 Finished homes 7,080,860 6,138,985 Model home furniture and others 119,924 113,946 Inventories $ 8,227,752 $ 7,270,550 Pre-owned homes $ 1,657,932 $ 1,956,265 Inventory impairment reserve (378,574 ) (549,434 ) 1,279,358 1,406,831 Less homes expected to sell in 12 months (821,781 ) (933,640 ) Pre-owned homes, long-term $ 457,577 $ 473,191

Short-term Investments (Tables)

Short-term Investments (Tables)	6 Months Ended
	May 04, 2019
Investments, Debt and Equity Securities [Abstract]
Summary of Short-term Investments	The following is a summary of short-term investments (available for sale): May 4, 2019 Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Equity securities in a public company $ 167,930 $ 410,320 $ — $ 578,250 November 3, 2018 Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Equity securities in a public company $ 167,930 $ 369,837 $ — $ 537,767

Fair Value of Financial Instr_2

Fair Value of Financial Instruments (Tables)	6 Months Ended
	May 04, 2019
Fair Value Disclosures [Abstract]
Summary of Assets and Liabilities Measured at Fair Value	The following tables represent the Company’s financial assets and liabilities which are carried at fair value. May 4, 2019 Level 1 Level 2 Level 3 Equity securities in a public company $ 578,250 $ — $ — November 3, 2018 Level 1 Level 2 Level 3 Equity securities in a public company $ 537,767 $ — $ —

Revenues by Products and Serv_2

Revenues by Products and Service (Tables)	6 Months Ended
	May 04, 2019
Segment Reporting [Abstract]
Revenues by Net Sales	Revenues by net sales from manufactured housing, pre-owned homes and insurance agent commissions are as follows: Three Months Ended Six Months Ended May 4, 2019 May 5, 2018 May 4, 2019 May 5, 2018 Manufactured housing Homes sold through Company owned sales centers $ 10,092,761 $ 6,094,161 $ 18,529,718 $ 12,498,941 Homes sold to independent dealers 2,317,481 2,325,643 4,344,036 4,855,210 Homes sold through manufactured home parks 96,732 131,955 390,652 476,990 $ 12,506,974 $ 8,551,759 $ 23,264,406 $ 17,831,141 Pre-owned homes 159,080 301,096 381,195 609,457 Insurance agent commissions 76,634 69,409 136,861 127,484 Total net sales $ 12,742,688 $ 8,922,264 $ 23,782,462 $ 18,568,082

Inventories - Summary of Breakd

Inventories - Summary of Breakdown of Elements of Inventory (Detail) - USD ($)	May 04, 2019	Nov. 03, 2018
Inventory Disclosure [Abstract]
Raw materials	$ 925,897	$ 904,399
Work-in-process	101,071	113,220
Finished homes	7,080,860	6,138,985
Model home furniture and others	119,924	113,946
Inventories	8,227,752	7,270,550
Pre-owned homes	1,657,932	1,956,265
Inventory impairment reserve	(378,574)	(549,434)
Pre-owned homes, net	1,279,358	1,406,831
Less homes expected to sell in 12 months	(821,781)	(933,640)
Pre-owned homes, long-term	$ 457,577	$ 473,191

Short-term Investments - Summar

Short-term Investments - Summary of Short-term Investments (Detail) - USD ($)	May 04, 2019	Nov. 03, 2018
Investments, Debt and Equity Securities [Abstract]
Available-for-sale Securities, Amortized Cost	$ 167,930	$ 167,930
Available-for-sale Securities, Gross Unrealized Gains	410,320	369,837
Available-for-sale Securities, Gross Unrealized Losses	0	0
Available-for-sale Securities, Estimated Fair Value	$ 578,250	$ 537,767

Fair Value of Financial Instr_3

Fair Value of Financial Instruments - Summary of Assets and Liabilities Measured at Fair Value on a Recurring Basis (Detail) - USD ($)	May 04, 2019	Nov. 03, 2018
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Equity securities in a public company	$ 578,250	$ 537,767
Level 1 [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Equity securities in a public company	$ 578,250	$ 537,767

Investment in Retirement Comm_2

Investment in Retirement Community Limited Partnership - Additional Information (Detail)	May 04, 2019
Walden Woods South LLC ("Walden Woods") [Member]
Investment [Line Items]
Percentage of limited partnership ownership interest	31.30%

Revenues by Products and Serv_3

Revenues by Products and Service - Revenues by Net Sales (Additional Information (Detail))	6 Months Ended
	May 04, 2019
Revenue Concentration Risks Recognation terms	The Company considers there to be revenue concentration risks for distribution of its products where net product revenues exceed 10% of consolidated net product revenues.

Revenues by Products and Serv_4

Revenues by Products and Service - Revenues by Net Sales (Detail) - USD ($)	3 Months Ended		6 Months Ended
	May 04, 2019	May 05, 2018	May 04, 2019	May 05, 2018
Sales Information [Line Items]
Total net sales	$ 12,742,688	$ 8,922,264	$ 23,782,462	$ 18,568,082
Manufactured Housing [Member]
Sales Information [Line Items]
Total net sales	12,506,974	8,551,759	23,264,406	17,831,141
Manufactured Housing [Member] | Homes sold through Company owned sales centers
Sales Information [Line Items]
Total net sales	10,092,761	6,094,161	18,529,718	12,498,941
Manufactured Housing [Member] | Homes sold to independent dealers
Sales Information [Line Items]
Total net sales	2,317,481	2,325,643	4,344,036	4,855,210
Manufactured Housing [Member] | Homes sold through manufactured home parks
Sales Information [Line Items]
Total net sales	96,732	131,955	390,652	476,990
Pre-Owned Homes [Member]
Sales Information [Line Items]
Total net sales	159,080	301,096	381,195	609,457
Insurance Agent Commissions [Member]
Sales Information [Line Items]
Total net sales	$ 76,634	$ 69,409	$ 136,861	$ 127,484

Subsequent Event - Additional I

Subsequent Event - Additional Information (Detail) - Subsequent Event [Member]	1 Months Ended
	May 20, 2019$ / sharesshares
Subsequent Event [Line Items]
Stock Repurchased During Period, Shares | shares	16,193
Shares Issued, Price Per Share | $ / shares	$ 22