Nobility Homes (NOBH) 10-Q 22 Mar 22 2022 Q1 Quarterly report Financial data

Cover Page

Cover Page - shares	3 Months Ended
	Feb. 05, 2022	Mar. 22, 2022
Cover [Abstract]
Document Type	10-Q
Document Transition Report	false
Document Quarterly Report	true
Amendment Flag	false
Document Period End Date	Feb. 5, 2022
Entity Registrant Name	NOBILITY HOMES, INC.
Entity Central Index Key	0000072205
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q1
Trading Symbol	NOBH
Current Fiscal Year End Date	--10-30
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		3,532,976
Entity File Number	000-06506
Entity Incorporation, State or Country Code	FL
Entity Address, Address Line One	3741 S.W. 7th Street
Entity Address, City or Town	Ocala
Entity Address, State or Province	FL
Entity Address, Postal Zip Code	34474
City Area Code	352
Local Phone Number	732-5157
Title of 12(b) Security	Common Stock
Entity Interactive Data Current	Yes
Entity Tax Identification Number	59-1166102

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Feb. 05, 2022	Nov. 06, 2021
Current assets:
Cash and cash equivalents	$ 38,932,257	$ 36,126,059
Certificates of deposit	0	2,093,015
Short-term investments	617,835	621,928
Accounts receivable—trade	493,504	680,228
Note receivable	23,905	32,825
Mortgage notes receivable	23,291	22,589
Inventories	10,902,578	10,394,288
Pre-owned homes, net	982,496	542,081
Prepaid expenses and other current assets	1,618,570	1,821,267
Total current assets	53,594,436	52,334,280
Property, plant and equipment, net	6,923,336	6,847,780
Pre-owned homes, net	0	755,394
Note receivable, less current portion	33,372	38,895
Mortgage notes receivable, less current portion	221,130	222,459
Mobile home park note receivable	136,509	72,731
Other investments	1,800,993	1,788,436
Operating lease right of use asset	0	1,597
Cash surrender value of life insurance	4,009,698	3,966,939
Other assets	156,287	156,287
Total assets	66,875,761	66,184,798
Current liabilities:
Accounts payable	998,869	939,964
Accrued compensation	592,998	555,222
Accrued expenses and other current liabilities	1,435,056	1,513,967
Income taxes payable	458,479	89,083
Operating lease obligation	0	1,597
Customer deposits	12,793,296	13,671,092
Total current liabilities	16,278,698	16,770,925
Deferred income taxes	99,568	99,568
Total liabilities	16,378,266	16,870,493
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; 3,532,976 and 3,532,100 outstanding, respectively	536,491	536,491
Additional paid in capital	10,782,019	10,766,253
Retained earnings	60,899,793	59,742,759
Less treasury stock at cost, 1,831,931 shares in 2022 and 1,832,807 shares in 2021	(21,720,808)	(21,731,198)
Total stockholders' equity	50,497,495	49,314,305
Total liabilities and stockholders' equity	$ 66,875,761	$ 66,184,798

Consolidated Balance Sheets (P

Consolidated Balance Sheets (Parenthetical) - $ / shares	Feb. 05, 2022	Nov. 06, 2021
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	3,532,976	3,532,100
Treasury stock, shares	1,831,931	1,832,807

Consolidated Statements of Inco

Consolidated Statements of Income - USD ($)	3 Months Ended
	Feb. 05, 2022	Jan. 30, 2021
Income Statement [Abstract]
Net sales	$ 10,808,270	$ 9,071,511
Cost of sales	(8,080,042)	(6,574,064)
Gross profit	2,728,228	2,497,447
Selling, general and administrative expenses	(1,416,543)	(1,273,381)
Operating income	1,311,685	1,224,066
Other income (loss):
Interest income	74,680	30,656
Undistributed earnings in joint venture—Majestic 21	12,557	13,708
Proceeds received under escrow arrangement	118,045	45,868
(Decrease) increase in fair value of equity investment	(4,093)	79,956
Miscellaneous	13,556	7,320
Total other income	214,745	177,508
Income before provision for income taxes	1,526,430	1,401,574
Income tax expense	(369,396)	(335,809)
Net income	$ 1,157,034	$ 1,065,765
Weighted average number of shares outstanding:
Basic	3,532,803	3,631,924
Diluted	3,544,467	3,633,493
Net income per share:
Basic	$ 0.33	$ 0.29
Diluted	$ 0.33	$ 0.29

Consolidated Statements of Chan

Consolidated Statements of Changes in Stockholders' Equity - USD ($)	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Treasury Stock [Member]
Balance at Oct. 31, 2020	$ 50,941,276	$ 536,491	$ 10,694,554	$ 57,976,051	$ (18,265,820)
Balance, shares at Oct. 31, 2020		3,631,196
Stock-based compensation	20,521		20,521
Exercise of employee stock options	15,125		1,950		13,175
Exercise of employee stock options, shares		1,250
Net income	1,065,765			1,065,765
Balance at Jan. 30, 2021	52,042,687	$ 536,491	10,717,025	59,041,816	(18,252,645)
Balance, shares at Jan. 30, 2021		3,632,446
Balance at Nov. 06, 2021	49,314,305	$ 536,491	10,766,253	59,742,759	(21,731,198)
Balance, shares at Nov. 06, 2021		3,532,100
Stock-based compensation	35,353		33,218		2,135
Stock-based compensation, shares		180
Exercise of employee stock options			(17,452)		17,452
Exercise of employee stock options, shares		966
Treasury stock purchase	(9,197)				(9,197)
Treasury stock purchase, shares		(270)
Net income	1,157,034			1,157,034
Balance at Feb. 05, 2022	$ 50,497,495	$ 536,491	$ 10,782,019	$ 60,899,793	$ (21,720,808)
Balance, shares at Feb. 05, 2022		3,532,976

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($)	3 Months Ended
	Feb. 05, 2022	Jan. 30, 2021
Cash flows from operating activities:
Net income	$ 1,157,034	$ 1,065,765
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	43,227	56,943
Undistributed earnings in joint venture—Majestic 21	(12,557)	(13,708)
Decrease (Increase) in fair market value of equity investments	4,093	(79,956)
Stock-based compensation	35,353	20,521
Amortization of operating lease right of use assets	1,597	10,331
Decrease (increase) in:
Accounts receivable - trade	186,724	(267,040)
Pre-owned homes	314,979	(216,973)
Inventories	(508,290)	(1,309,716)
Prepaid expenses and other current assets	202,697	(538,208)
Interest receivable		(8,444)
Income taxes receivable		105,676
(Decrease) increase in:
Accounts payable	58,905	172,260
Accrued compensation	37,776	(223,775)
Accrued expenses and other current liabilities	(88,108)	(270,148)
Income taxes payable	369,396	230,133
Customer deposits	(877,796)	2,701,182
Net cash provided by operating activities	925,030	1,434,843
Cash flows from investing activities:
Purchase of property, plant and equipment	(118,783)	(278,070)
Proceeds from certificates of deposit	2,087,936	1,500,000
Collections on interest receivable	5,079	28,640
Collections on mortgage notes receivable	627	609
Issuance of mobile home park not receivable	(63,778)
Collections on equipment and other notes receivable	14,443	6,738
Increase in cash surrender value of life insurance	(42,759)	(44,550)
Net cash provided by investing activities	1,882,765	1,213,367
Cash flows from financing activities:
Proceeds from exercise of employee stock options		15,125
Reduction of operating lease obligation	(1,597)	(5,714)
Net cash (used in) provided by financing activities	(1,597)	9,411
Increase cash and cash equivalents	2,806,198	2,657,621
Cash and cash equivalents at beginning of year	36,126,059	30,305,902
Cash and cash equivalents at end of quarter	38,932,257	$ 32,963,523
Supplemental financing activity:
Noncash exercise of employee stock options	$ (9,197)

Basis of Presentation and Accou

Basis of Presentation and Accounting Policies	3 Months Ended
	Feb. 05, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation and Accounting Policies	Note 1 Basis of Presentation and Accounting Policies The accompanying unaudited condensed consolidated financial statements for the three months ended February 5, 2022 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 months ended February 5, 2022 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

Inventories

Inventories	3 Months Ended
	Feb. 05, 2022
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. Other pre-owned st st st st st st New Inventory held at consignment locations by affiliated entities is included in the Company’s inventory on the Company’s condensed consolidated balance sheets. Consigned inventory was $718,439 and $794,766 as of February 5, 2022 and November 6, 2021, respectively. Pre-owned trade-ins (Trade-in Trade-in Other inventory costs are determined on a first-in, first-out A breakdown of the elements of inventory is as follows: February 5, November 6, 2022 2021 Raw materials $ 2,087,472 $ 2,225,532 Work-in-process 131,317 97,021 Inventory consigned to affiliated entities 718,439 794,766 Finished homes 7,837,409 7,140,880 Model home furniture 127,941 136,089 Inventories $ 10,902,578 $ 10,394,288 Pre-owned $ 982,496 $ 1,297,475 Less homes expected to sell in 12 months (982,496 ) (542,081 ) Pre-owned $ — $ 755,394

Short-term Investments

Short-term Investments	3 Months Ended
	Feb. 05, 2022
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): February 5, 2022 Cost Gross Gross Estimated Equity securities in a public company $ 167,930 $ 449,905 $ — $ 617,835 November 6, 2021 Cost Gross Gross Estimated Equity securities in a public company $ 167,930 $ 453,998 $ — $ 621,928 The fair values were estimated based on quoted market prices in active markets at each respective period end.

Fair Values of Financial Invest

Fair Values of Financial Investments	3 Months Ended
	Feb. 05, 2022
Fair Value Disclosures [Abstract]
Fair Values of Financial Investments	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. February 5, 2022 Level 1 Level 2 Level 3 Equity securities in a public company $ 617,835 $ — $ — November 6, 2021 Level 1 Level 2 Level 3 Equity securities in a public company $ 621,928 $ — $ —

Net Income per Share

Net Income per Share	3 Months Ended
	Feb. 05, 2022
Earnings Per Share [Abstract]
Net Income per Share	Note 5 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	3 Months Ended
	Feb. 05, 2022
Segment Reporting [Abstract]
Revenues by Products and Service	Note 6 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. Revenues by net sales from manufactured housing, pre-owned Three Months Ended February 5, January 30, 2022 2021 Manufactured housing Homes sold through Company owned sales centers $ 9,179,988 $ 7,543,182 Homes sold to independent dealers 580,712 1,203,736 Homes sold through manufactured home parks 474,960 218,435 $ 10,235,660 $ 8,965,353 Pre-owned 505,622 40,187 Insurance agent commissions 66,988 65,971 Total net sales $ 10,808,270 $ 9,071,511

Inventories (Tables)

Inventories (Tables)	3 Months Ended
	Feb. 05, 2022
Inventory Disclosure [Abstract]
Summary of Breakdown of Elements of Inventory	A breakdown of the elements of inventory is as follows: February 5, November 6, 2022 2021 Raw materials $ 2,087,472 $ 2,225,532 Work-in-process 131,317 97,021 Inventory consigned to affiliated entities 718,439 794,766 Finished homes 7,837,409 7,140,880 Model home furniture 127,941 136,089 Inventories $ 10,902,578 $ 10,394,288 Pre-owned $ 982,496 $ 1,297,475 Less homes expected to sell in 12 months (982,496 ) (542,081 ) Pre-owned $ — $ 755,394

Short-term Investments (Tables)

Short-term Investments (Tables)	3 Months Ended
	Feb. 05, 2022
Investments, Debt and Equity Securities [Abstract]
Summary of Short-term Investments	The following is a summary of short-term investments (available for sale): February 5, 2022 Cost Gross Gross Estimated Equity securities in a public company $ 167,930 $ 449,905 $ — $ 617,835 November 6, 2021 Cost Gross Gross Estimated Equity securities in a public company $ 167,930 $ 453,998 $ — $ 621,928

Fair Values of Financial Inve_2

Fair Values of Financial Investments (Tables)	3 Months Ended
	Feb. 05, 2022
Fair Value Disclosures [Abstract]
Summary of Assets and Liabilities Measured at Fair Value	The following tables represent the Company’s financial assets and liabilities which are carried at fair value. February 5, 2022 Level 1 Level 2 Level 3 Equity securities in a public company $ 617,835 $ — $ — November 6, 2021 Level 1 Level 2 Level 3 Equity securities in a public company $ 621,928 $ — $ —

Revenues by Products and Serv_2

Revenues by Products and Service (Tables)	3 Months Ended
	Feb. 05, 2022
Segment Reporting [Abstract]
Revenues by Net Sales	Revenues by net sales from manufactured housing, pre-owned Three Months Ended February 5, January 30, 2022 2021 Manufactured housing Homes sold through Company owned sales centers $ 9,179,988 $ 7,543,182 Homes sold to independent dealers 580,712 1,203,736 Homes sold through manufactured home parks 474,960 218,435 $ 10,235,660 $ 8,965,353 Pre-owned 505,622 40,187 Insurance agent commissions 66,988 65,971 Total net sales $ 10,808,270 $ 9,071,511

Inventories - Additional Inform

Inventories - Additional Information (Detail) - USD ($)	Feb. 05, 2022	Nov. 06, 2021
Inventory Disclosure [Abstract]
Inventory consigned to affiliated entities	$ 718,439	$ 794,766

Inventories - Summary of Breakd

Inventories - Summary of Breakdown of Elements of Inventory (Detail) - USD ($)	Feb. 05, 2022	Nov. 06, 2021
Inventory Disclosure [Abstract]
Raw materials	$ 2,087,472	$ 2,225,532
Work-in-process	131,317	97,021
Inventory consigned to affiliated entities	718,439	794,766
Finished homes	7,837,409	7,140,880
Model home furniture	127,941	136,089
Inventories	10,902,578	10,394,288
Pre-owned homes	982,496	1,297,475
Less homes expected to sell in 12 months	(982,496)	(542,081)
Pre-owned homes, long-term	$ 0	$ 755,394

Short-term Investments - Summar

Short-term Investments - Summary of Short-term Investments (Detail) - USD ($)	Feb. 05, 2022	Nov. 06, 2021
Investments, Debt and Equity Securities [Abstract]
Available-for-sale Securities, Amortized Cost	$ 167,930	$ 167,930
Available-for-sale Securities, Gross Unrealized Gains	449,905	453,998
Available-for-sale Securities, Gross Unrealized Losses	0	0
Available-for-sale Securities, Estimated Fair Value	$ 617,835	$ 621,928

Fair Values of Financial Inve_3

Fair Values of Financial Investments - Summary of Assets and Liabilities Measured at Fair Value on a Recurring Basis (Detail) - USD ($)	Feb. 05, 2022	Nov. 06, 2021
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Equity securities in a public company	$ 617,835	$ 621,928
Level 1 [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Equity securities in a public company	617,835	621,928
Level 2 [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Equity securities in a public company	0	0
Level 3 [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Equity securities in a public company	$ 0	$ 0

Revenues by Products and Serv_3

Revenues by Products and Service - Revenues by Net Sales - Additional Information (Detail)	3 Months Ended
	Feb. 05, 2022
Revenue Concentration Risks Recognition 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
	Feb. 05, 2022	Jan. 30, 2021
Sales Information [Line Items]
Total net sales	$ 10,808,270	$ 9,071,511
Manufactured Housing [Member]
Sales Information [Line Items]
Total net sales	10,235,660	8,965,353
Manufactured Housing [Member] | Homes sold through Company owned sales centers
Sales Information [Line Items]
Total net sales	9,179,988	7,543,182
Manufactured Housing [Member] | Homes sold to independent dealers
Sales Information [Line Items]
Total net sales	580,712	1,203,736
Manufactured Housing [Member] | Homes sold through manufactured home parks
Sales Information [Line Items]
Total net sales	474,960	218,435
Pre-Owned Homes [Member]
Sales Information [Line Items]
Total net sales	505,622	40,187
Insurance Agent Commissions [Member]
Sales Information [Line Items]
Total net sales	$ 66,988	$ 65,971