Nobility Homes (NOBH) 10-Q 13 Sep 19 2019 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Aug. 03, 2019	Sep. 13, 2019
Document and Entity Information [Abstract]
Document Type	10-Q
Entity Interactive Data Current	Yes
Amendment Flag	false
Document Period End Date	Aug. 3, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q3
Entity Registrant Name	NOBILITY HOMES INC
Entity Central Index Key	0000072205
Current Fiscal Year End Date	--11-03
Entity Current Reporting Status	Yes
Entity Shell Company	false
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Address, State or Province	FL
Title of 12(b) Security	Common Stock
No Trading Symbol Flag	true
Entity Common Stock, Shares Outstanding		3,664,070

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	Aug. 03, 2019	Nov. 03, 2018
Current assets:
Cash and cash equivalents	$ 21,146,880	$ 28,364,861
Certificates of Deposit	10,118,833	6,034,093
Short-term investments	496,556	537,767
Accounts receivable - trade	1,993,058	1,783,073
Note receivable	67,899	46,444
Mortgage notes receivable	17,317	15,664
Inventories	9,070,508	7,270,550
Pre-owned homes, net	499,463	933,640
Prepaid expenses and other current assets	1,238,456	1,090,152
Total current assets	44,648,970	46,076,244
Property, plant and equipment, net	4,900,716	4,763,566
Pre-owned homes, net	793,671	473,191
Note receivable, less current portion	42,047	46,265
Mortgage notes receivable, less current portion	233,247	236,402
Other investments	1,631,721	1,571,166
Property held for sale		213,437
Deferred income taxes		40,156
Cash surrender value of life insurance	3,572,974	3,437,974
Other assets	156,287	156,287
Total assets	55,979,633	57,014,688
Current liabilities:
Accounts payable	933,587	1,085,095
Accrued compensation	768,825	869,657
Accrued expenses and other current liabilities	1,943,653	1,349,381
Income taxes payable	852,236	579,786
Customer deposits	3,107,855	4,064,268
Total current liabilities	7,606,156	7,948,187
Deferred income taxes	126,617
Total liabilities	7,732,773	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; 3,746,570 and 3,873,731 outstanding, respectively	536,491	536,491
Additional paid in capital	10,686,657	10,670,848
Retained earnings	52,386,965	50,352,546
Accumulated other comprehensive income	349,999	390,407
Less treasury stock at cost, 1,618,337 shares in 2019 and 1,491,176 shares in 2018	(15,713,252)	(12,883,791)
Total stockholders' equity	48,246,860	49,066,501
Total liabilities and stockholders' equity	$ 55,979,633	$ 57,014,688

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Aug. 03, 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	3,746,570	3,873,731
Treasury stock, shares	1,618,337	1,491,176

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income and Comprehensive Income - USD ($)	3 Months Ended		9 Months Ended
	Aug. 03, 2019	Aug. 04, 2018	Aug. 03, 2019	Aug. 04, 2018
Income Statement [Abstract]
Net sales	$ 11,785,366	$ 11,447,636	$ 35,567,828	$ 30,015,718
Cost of sales	(8,139,910)	(8,705,847)	(25,506,957)	(22,745,684)
Gross profit	3,645,456	2,741,789	10,060,871	7,270,034
Selling, general and administrative expenses	(1,352,315)	(1,279,397)	(3,860,173)	(3,525,538)
Operating income	2,293,141	1,462,392	6,200,698	3,744,496
Other income:
Interest income	134,526	99,594	431,995	216,977
Undistributed earnings in joint venture - Majestic 21	19,800	28,602	60,555	78,917
Proceeds received under escrow arrangement	76,734	117,271	289,341	172,911
Gain on sale of assets	864,887		880,129	203,512
Miscellaneous	10,834	10,083	33,714	22,667
Total other income	1,106,781	255,550	1,695,734	694,984
Income before provision for income taxes	3,399,922	1,717,942	7,896,432	4,439,480
Income tax expense	(856,818)	(469,858)	(1,997,797)	(1,039,555)
Net income	2,543,104	1,248,084	5,898,635	3,399,925
Other comprehensive loss
Unrealized investment loss, net of tax effect	(96,120)	(5,046)	(40,408)	(50,556)
Comprehensive income	$ 2,446,984	$ 1,243,038	$ 5,858,227	$ 3,349,369
Weighted average number of shares outstanding:
Basic	3,807,357	3,873,746	3,848,936	3,925,007
Diluted	3,808,617	3,875,897	3,850,169	3,927,066
Net income per share:
Basic	$ 0.67	$ 0.32	$ 1.53	$ 0.87
Diluted	$ 0.67	$ 0.32	$ 1.53	$ 0.87

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 gain (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
Purchase of treasury stock, shares	(123,838)
Unrealized investment gain (loss), net of tax effect	$ (50,556)
Net income	3,399,925
Balance at Aug. 04, 2018	47,473,623	$ 536,491	10,670,407	48,788,839	361,677	(12,883,791)
Balance, shares at Aug. 04, 2018		3,873,731
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 gain (loss), net of tax effect	(67,856)				(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
Purchase of treasury stock	(7,605)					(7,605)
Purchase of treasury stock, shares		(338)
Stock-based compensation	294		294
Unrealized investment gain (loss), net of tax effect	(5,046)				(5,047)
Net income	1,248,084			1,248,084
Balance at Aug. 04, 2018	47,473,623	$ 536,491	10,670,407	48,788,839	361,677	(12,883,791)
Balance, shares at Aug. 04, 2018		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
Stock-based compensation	750		750
Unrealized investment gain (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
Purchase of treasury stock, shares	(129,896)
Unrealized investment gain (loss), net of tax effect	$ (40,408)
Net income	5,898,635
Balance at Aug. 03, 2019	48,246,860		10,686,657	52,386,965	349,999	(15,713,252)
Balance, shares at Aug. 03, 2019		3,746,570
Balance at Feb. 02, 2019	50,586,516	$ 536,491	10,671,598	51,888,351	373,867	(12,883,791)
Balance, shares at Feb. 02, 2019		3,873,731
Cash dividend	(3,864,216)			(3,864,216)
Purchase of treasury stock	(302,115)					(302,115)
Purchase of treasury stock, shares		(13,703)
Stock-based compensation	10,729		6,539			4,190
Stock-based compensation, shares		485
Unrealized investment gain (loss), net of tax effect	72,252				72,252
Net income	1,819,725			1,819,725
Balance at May. 04, 2019	48,322,893	$ 536,491	10,678,137	49,843,861	446,119	(13,181,716)
Balance, shares at May. 04, 2019		3,860,513
Purchase of treasury stock	(2,551,246)					(2,551,246)
Purchase of treasury stock, shares		(116,193)
Stock-based compensation	1,005		1,005
Unrealized investment gain (loss), net of tax effect	(96,120)				(96,120)
Exercise of employee stock options	27,225		7,515			19,710
Exercise of employee stock options, shares		2,250
Net income	2,543,104			2,543,103
Balance at Aug. 03, 2019	$ 48,246,860		$ 10,686,657	$ 52,386,965	$ 349,999	$ (15,713,252)
Balance, shares at Aug. 03, 2019		3,746,570

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows - USD ($)	9 Months Ended
	Aug. 03, 2019	Aug. 04, 2018
Cash flows from operating activities:
Net income	$ 5,898,635	$ 3,399,925
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	109,016	88,764
Deferred income taxes	167,576	(456,292)
Undistributed earnings in joint venture - Majestic 21	(60,555)	(78,917)
Gain on property held for sale	(880,129)	(203,512)
Gain on disposal of property, plant and equipment	(15,242)
Inventory impairment		105,000
Stock-based compensation	19,999	1,176
Decrease (increase) in:
Accounts receivable	(209,985)	1,289,309
Inventories	(1,799,958)	374,815
Pre-owned homes	113,697	258,471
Prepaid expenses and other current assets	(148,304)	(292,675)
Interest receivable	(84,740)	(6,436)
(Decrease) increase in:
Accounts payable	(151,508)	(86,022)
Accrued compensation	(100,832)	111,774
Accrued expenses and other current liabilities	594,271	(63,577)
Income taxes payable	272,450	265,847
Customer deposits	(956,413)	1,665,728
Net cash provided by operating activities	2,783,220	6,373,378
Cash flows from investing activities:
Purchase of property, plant and equipment	(288,424)	(595,880)
Purchase of certificates of deposit	(4,000,000)	(2,000,000)
Proceeds from property held for sale	1,078,325	589,530
Collections on note receivable		1,530,000
Collections on interest receivable		101,301
Collections on mortgage notes receivable	1,502	1,288
Collections on equipment notes receivable	40,263	30,403
Issurance of equipment note receivable		(25,451)
Increase in cash surrender value of life insurance	(135,000)	(135,000)
Net cash used in investing activities	(3,303,334)	(503,809)
Cash flows from financing activities:
Payment of cash dividend	(3,864,216)	(778,614)
Proceeds from excerise of employee stock options	19,710
Purchase of treasury stock	(2,853,361)	(2,512,605)
Net cash used in financing activities	(6,697,867)	(3,291,219)
(Decrease) increase in cash and cash equivalents	(7,217,981)	2,578,350
Cash and cash equivalents at beginning of year	28,364,861	27,910,504
Cash and cash equivalents at end of quarter	21,146,880	30,488,854
Supplemental disclosure of cash flows information:
Income taxes paid	$ 1,550,000	$ 1,230,000

Basis of Presentation and Accou

Basis of Presentation and Accounting Policies	9 Months Ended
	Aug. 03, 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 condensed consolidated financial statements for the three and nine months ended August 3, 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. The unaudited financial information included in this report includes all adjustments (consisting of normal recurring adjustments) which are, in the opinion of management, necessary to reflect a fair statement of the results for the interim periods. The results of operations for the three and nine months ended August 3, 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 Recently Issued or Adopted Accounting Pronouncements – 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: 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 9, Revenues by Products and Services, to these condensed consolidated financial statements. In February 2016, the FASB issued Accounting Standards Update (ASU) No. 2016-02, 2016-02). 2016-02 2016-02 right-of-use 2016-02 right-of-use

Inventories

Inventories	9 Months Ended
	Aug. 03, 2019
Inventory Disclosure [Abstract]
Inventories	Note 2 Inventories New home inventory is carried at the lower of cost or net realizable value. The cost of finished home inventories determined on the specific identification method is removed from inventories and recorded as a component of cost of sales at the time revenue is recognized. In addition, an allocation of depreciation and amortization is included in cost of goods sold. Under the specific identification method, if finished home inventory can be sold for a profit there is no basis to write down the inventory below the lower of cost or net realizable value. The Company acquired certain repossessed pre-owned 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 Pre-owned homes are also taken as trade-ins on new home sales (Trade-in Inventory). This inventory is recorded at estimated actual wholesale value which is generally lower than its market value, determined on the specific identification method, plus refurbishment costs incurred to date to bring the inventory to a more saleable state. The Trade-in inventory amount is reduced where necessary on a unit specific basis by a valuation reserve which management believes results in inventory being valued at market. Other inventory costs are determined on a first-in, first-out August 3, 2019 November 3, 2018 Raw materials $ 877,248 $ 904,399 Work-in-process 112,013 113,220 Finished homes 7,964,647 6,138,985 Model home furniture and others 116,601 113,946 Inventories $ 9,070,508 $ 7,270,550 Pre-owned Buy Back $ 439,142 $ 715,748 Repossessions 1,138,851 1,155,642 Trade-in 87,239 84,874 1,665,232 1,956,265 Inventory impairment reserve (372,098 ) (549,434 ) 1,293,134 1,406,831 Less homes expected to sell in 12 months (499,463 ) (933,640 ) Pre-owned $ 793,671 $ 473,191

Short-term Investments

Short-term Investments	9 Months Ended
	Aug. 03, 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): August 3, 2019 Cost Gross Gross Estimated Equity securities in a public company $ 167,930 $ 328,626 $ — $ 496,556 November 3, 2018 Cost Gross Gross Estimated 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	9 Months Ended
	Aug. 03, 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. August 3, 2019 Level 1 Level 2 Level 3 Equity securities in a public company $ 496,556 $ — $ — November 3, 2018 Level 1 Level 2 Level 3 Equity securities in a public company $ 537,767 $ — $ —

Sale of Property Held for Sale

Sale of Property Held for Sale	9 Months Ended
	Aug. 03, 2019
Discontinued Operations and Disposal Groups [Abstract]
Sale of Property Held for Sale	Note 5 Sale of Property Held for Sale On June 28, 2019 the Company sold its former Pace retail sales center property located in Pace, Florida for total net proceeds of $1,078,325. The Company recognized a gain on the sale of this property of $864,887.

Investment in Retirement Commun

Investment in Retirement Community Limited Partnership	9 Months Ended
	Aug. 03, 2019
Equity Method Investments and Joint Ventures [Abstract]
Investment in Retirement Community Limited Partnership	Note 6 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 August 3, 2019 and November 3, 2018.

Stockholders' Equity and Relate

Stockholders' Equity and Related Party Transaction	9 Months Ended
	Aug. 03, 2019
Equity [Abstract]
Stockholders' Equity and Related Party Transaction	Note 7 Stockholders’ Equity and Related Party Transaction During the nine months ended August 3, 2019, the Company repurchased 129,896 of its common stock for per share prices ranging from $21.50 - $22.50 for an aggregate total of $2,853,361. Of these repurchased shares, 100,000 were from a related party for which the Company paid $21.95 per share. During the nine months ended August 4, 2018, the Company repurchased 123,838 shares of its common stock for per share prices ranging from $20.22 - $21.00 for an aggregate total of $2,512,605. Of these repurchased shares, 100,000 were from a related party for which the Company paid $20.22 per share. Treasury stock is recorded at cost and is presented as a reduction of stockholders’ equity in the accompanying consolidated financial statements.

Net Income per Share

Net Income per Share	9 Months Ended
	Aug. 03, 2019
Earnings Per Share [Abstract]
Net Income per Share	Note 8 Net Income per Share These financial statements include “basic” and “diluted” net income per share information for all periods presented. The basic net income per share is calculated by dividing net income by the weighted-average number of shares outstanding. The diluted net income per share is calculated by dividing net income by the weighted-average number of shares outstanding, adjusted for dilutive common shares.

Revenues by Products and Servic

Revenues by Products and Service	9 Months Ended
	Aug. 03, 2019
Segment Reporting [Abstract]
Revenues by Products and Service	Note 9 Revenues by Products and Service The Company operates in one business segment, which is manufactured housing and ancillary services. The Company considers there to be revenue concentration risks for distribution of its products where net product revenues exceed 10% of consolidated net product revenues. The concentration of the Company’s distribution net product revenues below may have a material adverse effect on the Company’s revenues and results of operations if sales in the respective distribution channels experience difficulties. The Company adopted the requirements of ASC 606 on November 5, 2018 using the modified retrospective method. See Note 1 – Recently Issued or Adopted Accounting Pronouncements pre-owned Three Months Ended Nine Months Ended August 3, August 4, August 3, August 4, Manufactured housing Homes sold through Company owned sales centers $ 9,807,719 $ 8,302,575 $ 28,142,636 $ 20,801,157 Homes sold to independent dealers 1,377,471 2,313,528 5,721,508 7,168,737 Homes sold through manufactured home parks 513,517 325,270 904,169 802,260 $ 11,698,707 $ 10,941,373 $ 34,768,313 $ 28,772,154 Pre-owned 14,187 433,085 590,182 1,042,542 Insurance agent commissions 72,472 73,178 209,333 201,022 Total net sales $ 11,785,366 $ 11,447,636 $ 35,567,828 $ 30,015,718

Subsequent Event

Subsequent Event	9 Months Ended
	Aug. 03, 2019
Subsequent Events [Abstract]
Subsequent Event	Note 10 Subsequent Events The Company repurchased 82,500 $21.00 per share for an aggregate of $1,732,500.

Basis of Presentation and Acc_2

Basis of Presentation and Accounting Policies (Policies)	9 Months Ended
	Aug. 03, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Recently Issued or Adopted Accounting Pronouncements	Recently Issued or Adopted Accounting Pronouncements – 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:
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 9, Revenues by Products and Services, to these condensed consolidated financial statements. In February 2016, the FASB issued Accounting Standards Update (ASU) No. 2016-02, 2016-02). 2016-02 2016-02 right-of-use 2016-02 right-of-use

Inventories (Tables)

Inventories (Tables)	9 Months Ended
	Aug. 03, 2019
Inventory Disclosure [Abstract]
Summary of Breakdown of Elements of Inventory	Other inventory costs are determined on a first-in, first-out August 3, 2019 November 3, 2018 Raw materials $ 877,248 $ 904,399 Work-in-process 112,013 113,220 Finished homes 7,964,647 6,138,985 Model home furniture and others 116,601 113,946 Inventories $ 9,070,508 $ 7,270,550 Pre-owned Buy Back $ 439,142 $ 715,748 Repossessions 1,138,851 1,155,642 Trade-in 87,239 84,874 1,665,232 1,956,265 Inventory impairment reserve (372,098 ) (549,434 ) 1,293,134 1,406,831 Less homes expected to sell in 12 months (499,463 ) (933,640 ) Pre-owned $ 793,671 $ 473,191

Short-term Investments (Tables)

Short-term Investments (Tables)	9 Months Ended
	Aug. 03, 2019
Investments, Debt and Equity Securities [Abstract]
Summary of Short-term Investments	The following is a summary of short-term investments (available for sale): August 3, 2019 Cost Gross Gross Estimated Equity securities in a public company $ 167,930 $ 328,626 $ — $ 496,556 November 3, 2018 Cost Gross Gross Estimated Equity securities in a public company $ 167,930 $ 369,837 $ — $ 537,767

Fair Value of Financial Instr_2

Fair Value of Financial Instruments (Tables)	9 Months Ended
	Aug. 03, 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. August 3, 2019 Level 1 Level 2 Level 3 Equity securities in a public company $ 496,556 $ — $ — 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)	9 Months Ended
	Aug. 03, 2019
Segment Reporting [Abstract]
Revenues by Net Sales	Revenues by net sales from manufactured housing, pre-owned Three Months Ended Nine Months Ended August 3, August 4, August 3, August 4, Manufactured housing Homes sold through Company owned sales centers $ 9,807,719 $ 8,302,575 $ 28,142,636 $ 20,801,157 Homes sold to independent dealers 1,377,471 2,313,528 5,721,508 7,168,737 Homes sold through manufactured home parks 513,517 325,270 904,169 802,260 $ 11,698,707 $ 10,941,373 $ 34,768,313 $ 28,772,154 Pre-owned 14,187 433,085 590,182 1,042,542 Insurance agent commissions 72,472 73,178 209,333 201,022 Total net sales $ 11,785,366 $ 11,447,636 $ 35,567,828 $ 30,015,718

Inventories - Summary of Breakd

Inventories - Summary of Breakdown of Elements of Inventory (Detail) - USD ($)	Aug. 03, 2019	Nov. 03, 2018
Inventory Disclosure [Abstract]
Raw materials	$ 877,248	$ 904,399
Work-in-process	112,013	113,220
Finished homes	7,964,647	6,138,985
Model home furniture and others	116,601	113,946
Inventories	9,070,508	7,270,550
Pre Owned Homes [Abstract]
Buy Back	439,142	715,748
Repossessions	1,138,851	1,155,642
Trade-in	87,239	84,874
Pre-owned homes	1,665,232	1,956,265
Inventory impairment reserve	(372,098)	(549,434)
Pre-owned homes, net	1,293,134	1,406,831
Less homes expected to sell in 12 months	(499,463)	(933,640)
Pre-owned homes, long-term	$ 793,671	$ 473,191

Short-term Investments - Summar

Short-term Investments - Summary of Short-term Investments (Detail) - USD ($)	Aug. 03, 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	328,626	369,837
Available-for-sale Securities, Gross Unrealized Losses	0	0
Available-for-sale Securities, Estimated Fair Value	$ 496,556	$ 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 ($)	Aug. 03, 2019	Nov. 03, 2018
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Equity securities in a public company	$ 496,556	$ 537,767
Level 1 [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Equity securities in a public company	$ 496,556	$ 537,767

Sale of Property Held for Sale

Sale of Property Held for Sale - Additional Information (Detail) - USD ($)	3 Months Ended	9 Months Ended
	Aug. 03, 2019	Aug. 03, 2019	Aug. 04, 2018
Proceeds from sale of property held-for-sale		$ 1,078,325	$ 589,530
Gain on sale of assets	$ 864,887	$ 880,129	$ 203,512

Investment in Retirement Comm_2

Investment in Retirement Community Limited Partnership - Additional Information (Detail)	Aug. 03, 2019
Walden Woods South LLC ("Walden Woods") [Member]
Investment [Line Items]
Percentage of limited partnership ownership interest	31.30%

Stockholders' Equity and Rela_2

Stockholders' Equity and Related Party Transaction - Additional Information (Detail) - USD ($)	9 Months Ended
	Aug. 03, 2019	Aug. 04, 2018
Repurchased shares of common stock	129,896	123,838
Aggregate amount of treasury stock	$ 2,853,361	$ 2,512,605
Related Party [Member]
Repurchased shares of common stock	100,000	100,000
Purchase price of common stock	$ 21.95	$ 20.22
Minimum [Member]
Purchase price of common stock	21.50	20.22
Maximum [Member]
Purchase price of common stock	$ 22.50	$ 21

Revenues by Products and Serv_3

Revenues by Products and Service - Revenues by Net Sales (Additional Information (Detail))	9 Months Ended
	Aug. 03, 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		9 Months Ended
	Aug. 03, 2019	Aug. 04, 2018	Aug. 03, 2019	Aug. 04, 2018
Sales Information [Line Items]
Total net sales	$ 11,785,366	$ 11,447,636	$ 35,567,828	$ 30,015,718
Manufactured Housing [Member]
Sales Information [Line Items]
Total net sales	11,698,707	10,941,373	34,768,313	28,772,154
Manufactured Housing [Member] | Homes sold through Company owned sales centers
Sales Information [Line Items]
Total net sales	9,807,719	8,302,575	28,142,636	20,801,157
Manufactured Housing [Member] | Homes sold to independent dealers
Sales Information [Line Items]
Total net sales	1,377,471	2,313,528	5,721,508	7,168,737
Manufactured Housing [Member] | Homes sold through manufactured home parks
Sales Information [Line Items]
Total net sales	513,517	325,270	904,169	802,260
Pre-Owned Homes [Member]
Sales Information [Line Items]
Total net sales	14,187	433,085	590,182	1,042,542
Insurance Agent Commissions [Member]
Sales Information [Line Items]
Total net sales	$ 72,472	$ 73,178	$ 209,333	$ 201,022

Subsequent Event - Additional I

Subsequent Event - Additional Information (Detail) - USD ($)	Aug. 07, 2019	Aug. 03, 2019	Aug. 04, 2018
Subsequent Event [Line Items]
Repurchased shares of common stock		129,896	123,838
Aggregate amount of treasury stock		$ 2,853,361	$ 2,512,605
Subsequent Event [Member]
Subsequent Event [Line Items]
Repurchased shares of common stock	82,500
Purchase price of common stock	$ 21
Aggregate amount of treasury stock	$ 1,732,500