Nobility Homes (NOBH) 10-Q 21 Jun 22 2022 Q2 Quarterly report Financial data

Cover Page

Cover Page - shares	6 Months Ended
	May 07, 2022	Jun. 21, 2022
Cover [Abstract]
Document Type	10-Q
Document Transition Report	false
Document Quarterly Report	true
Amendment Flag	false
Document Period End Date	May 07, 2022
Entity Registrant Name	NOBILITY HOMES, INC.
Entity Central Index Key	0000072205
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q2
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		3,370,912
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 ($)	May 07, 2022	Nov. 06, 2021
Current assets:
Cash and cash equivalents	$ 26,530,111	$ 36,126,059
Certificates of deposit	0	2,093,015
Short-term investments	598,154	621,928
Accounts receivable—trade	807,197	680,228
Note receivable	23,905	32,825
Mortgage notes receivable	24,291	22,589
Income taxes receivable	42,792	0
Inventories	15,999,026	10,394,288
Pre-owned homes, net	802,149	542,081
Prepaid expenses and other current assets	2,283,654	1,821,267
Total current assets	47,111,279	52,334,280
Property, plant and equipment, net	7,305,133	6,847,780
Pre-owned homes, net	0	755,394
Note receivable, less current portion	27,849	38,895
Mortgage notes receivable, less current portion	219,772	222,459
Mobile home park note receivable	136,509	72,731
Other investments	1,813,658	1,788,436
Operating lease right of use asset	0	1,597
Cash surrender value of life insurance	4,052,457	3,966,939
Other assets	156,287	156,287
Total assets	60,822,944	66,184,798
Current liabilities:
Accounts payable	1,819,257	939,964
Accrued compensation	777,649	555,222
Accrued expenses and other current liabilities	1,627,284	1,513,967
Income taxes payable	0	89,083
Operating lease obligation	0	1,597
Customer deposits	13,285,127	13,671,092
Total current liabilities	17,509,317	16,770,925
Deferred income taxes	51,027	99,568
Total liabilities	17,560,344	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; 3,370,912 and 3,532,100 outstanding, respectively	536,491	536,491
Additional paid in capital	10,806,923	10,766,253
Retained earnings	58,823,643	59,742,759
Less treasury stock at cost, 1,993,995 shares in 2022 and 1,832,807 shares in 2021	(26,904,457)	(21,731,198)
Total stockholders' equity	43,262,600	49,314,305
Total liabilities and stockholders' equity	$ 60,822,944	$ 66,184,798

Consolidated Balance Sheets (P

Consolidated Balance Sheets (Parenthetical) - $ / shares	May 07, 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	3,370,912	3,532,100
Treasury stock, shares	1,993,995	1,832,807

Consolidated Statements of Inco

Consolidated Statements of Income - USD ($)	3 Months Ended		6 Months Ended
	May 07, 2022	May 01, 2021	May 07, 2022	May 01, 2021
Income Statement [Abstract]
Net sales	$ 10,645,046	$ 14,742,900	$ 21,453,316	$ 23,814,411
Cost of sales	(7,623,128)	(11,130,215)	(15,703,170)	(17,704,279)
Gross profit	3,021,918	3,612,685	5,750,146	6,110,132
Selling, general and administrative expenses	(1,378,606)	(1,550,513)	(2,795,149)	(2,823,894)
Operating income	1,643,312	2,062,172	2,954,997	3,286,238
Other income (loss):
Interest income	39,577	52,474	114,257	83,130
Undistributed earnings in joint venture—Majestic 21	12,665	12,049	25,222	25,757
Proceeds received under escrow arrangement	115,454	0	233,499	45,868
(Decrease) increase in fair value of equity investment	(19,681)	123,803	(23,774)	203,759
Gain on disposal of property, plant and equipment	88,936	0	88,936	0
Miscellaneous	12,352	17,945	25,908	25,265
Total other income	249,303	206,271	464,048	383,779
Income before provision for income taxes	1,892,615	2,268,443	3,419,045	3,670,017
Income tax expense	(435,789)	(543,505)	(805,185)	(879,314)
Net income	$ 1,456,826	$ 1,724,938	$ 2,613,860	$ 2,790,703
Weighted average number of shares outstanding:
Basic	3,476,508	3,632,195	3,504,655	3,632,060
Diluted	3,487,516	3,642,501	3,515,994	3,638,140
Net income per share:
Basic	$ 0.42	$ 0.47	$ 0.75	$ 0.77
Diluted	$ 0.42	$ 0.47	$ 0.74	$ 0.77

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 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
Net income	2,790,703
Balance at May. 01, 2021	50,141,381	$ 536,491	10,733,434	57,134,654	(18,263,198)
Balance, shares at May. 01, 2021		3,632,100
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
Cash dividend	(3,632,100)			(3,632,100)
Stock-based compensation	16,409		16,409
Purchase of treasury stock	(10,553)				(10,553)
Purchase of treasury stock, shares		(346)
Net income	1,724,938			1,724,938
Balance at May. 01, 2021	50,141,381	$ 536,491	10,733,434	57,134,654	(18,263,198)
Balance, shares at May. 01, 2021		3,632,100
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
Purchase of treasury stock	(9,197)				(9,197)
Purchase of treasury stock, 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
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
Net income	2,613,860
Balance at May. 07, 2022	43,262,600	$ 536,491	10,806,923	58,823,643	(26,904,457)
Balance, shares at May. 07, 2022		3,370,912
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
Cash dividend	(3,532,976)			(3,532,976)
Stock-based compensation	27,325		24,904		2,421
Stock-based compensation, shares		236
Purchase of treasury stock	(5,186,070)				(5,186,070)
Purchase of treasury stock, shares		(162,300)
Net income	1,456,826			1,456,826
Balance at May. 07, 2022	$ 43,262,600	$ 536,491	$ 10,806,923	$ 58,823,643	$ (26,904,457)
Balance, shares at May. 07, 2022		3,370,912

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($)	6 Months Ended
	May 07, 2022	May 01, 2021
Cash flows from operating activities:
Net income	$ 2,613,860	$ 2,790,703
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Depreciation	86,454	94,815
Deferred income taxes	(48,541)	19,182
Undistributed earnings in joint venture—Majestic 21	(25,222)	(25,757)
Gain on disposal of property, plant and equipment	(88,936)
Decrease (increase) in fair market value of equity investments	23,774	(203,759)
Stock-based compensation	62,678	36,930
Amortization of operating lease right of use assets	1,597	20,739
Decrease (increase) in:
Accounts receivable - trade	(126,969)	(1,027,542)
Pre-owned homes	495,327	(69,794)
Inventories	(5,604,739)	(884,425)
Prepaid expenses and other current assets	(462,387)	(622,655)
Interest receivable		(14,118)
Income taxes receivable	(42,792)	105,676
(Decrease) increase in:
Accounts payable	879,293	357,411
Accrued compensation	222,427	36,216
Accrued expenses and other current liabilities	104,120	100,709
Income taxes payable	(89,083)	219,456
Customer deposits	(385,965)	5,047,191
Net cash (used in) provided by operating activities	(2,375,907)	5,980,978
Cash flows from investing activities:
Purchase of property, plant and equipment	(551,841)	(1,870,893)
Proceeds from certificates of deposit	2,087,936	2,496,000
Proceeds from disposal of property, plant and equipment	96,970
Collections on interest receivable	5,079	31,620
Collections on mortgage notes receivable	985	1,363
Issuance of mobile home park not receivable	(63,778)	(2,481)
Collections on equipment and other notes receivable	19,966	13,460
Increase in cash surrender value of life insurance	(85,518)	(89,100)
Net cash provided by investing activities	1,509,799	579,969
Cash flows from financing activities:
Payment of cash dividend	(3,532,976)	(3,632,100)
Proceeds from exercise of employee stock options		15,125
Purchase of treasury stock	(5,186,070)	(10,553)
Reduction of operating lease obligation	(1,597)	(11,503)
Net cash used in financing activities	(8,729,840)	(3,639,031)
(Decrease) increase in cash and cash equivalents	(9,595,948)	2,921,916
Cash and cash equivalents at beginning of year	36,126,059	30,305,902
Cash and cash equivalents at end of quarter	26,530,111	33,227,818
Supplemental disclosure of cash flows information:
Income taxes paid	1,060,735	$ 535,000
Noncash exercise of employee stock options	$ (9,197)

Basis of Presentation and Accou

Basis of Presentation and Accounting Policies	6 Months Ended
	May 07, 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 financial statements for the three and six months ended May 7, 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 and six months ended May 7, 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	6 Months Ended
	May 07, 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 $642,019 and $794,766 as of May 7, 2022 and November 6, 2021, respectively. Pre-owned trade-ins (Trade-in The Trade-in Other inventory costs are determined on a first-in, first-out May 7, November 6, Raw materials $ 2,331,385 $ 2,225,532 Work-in-process 115,134 97,021 Inventory consigned to affiliated entities 642,019 794,766 Finished homes 12,792,772 7,140,880 Model home furniture 117,716 136,089 Inventories $ 15,999,026 $ 10,394,288 Pre-owned homes $ 802,149 $ 1,297,475 Less homes expected to sell in 12 months (802,149 ) (542,081 ) Pre-owned homes, long term $ — $ 755,394

Short-term Investments

Short-term Investments	6 Months Ended
	May 07, 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 May 7, 2022 Cost Gross Gross Estimated Equity securities in a public company $ 167,930 $ 430,224 $ — $ 598,154 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 Instru

Fair Values of Financial Instruments	6 Months Ended
	May 07, 2022
Fair Value Disclosures [Abstract]
Fair Values 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 7, 2022 Level 1 Level 2 Level 3 Equity securities in a public company $ 598,154 $ — $ — 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	6 Months Ended
	May 07, 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	6 Months Ended
	May 07, 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. Revenues by net sales from manufactured housing, pre-owned Three Months Ended Six Months Ended May 7, May 1, May 7, May 1, Manufactured housing Homes sold through Company owned sales centers $ 9,492,596 $ 12,361,377 $ 18,682,934 $ 19,904,559 Homes sold to independent dealers 351,999 1,624,113 932,711 2,827,849 Homes sold through manufactured home parks 515,390 431,210 990,350 649,645 $ 10,359,985 $ 14,416,700 $ 20,605,995 $ 23,382,053 Pre-owned 207,561 243,557 702,834 283,744 Insurance agent commissions 77,500 82,643 144,487 148,614 Total net sales $ 10,645,046 $ 14,742,900 $ 21,453,316 $ 23,814,411

Inventories (Tables)

Inventories (Tables)	6 Months Ended
	May 07, 2022
Inventory Disclosure [Abstract]
Summary of Breakdown of Elements of Inventory	A breakdown of the elements of inventory is as follows: May 7, November 6, Raw materials $ 2,331,385 $ 2,225,532 Work-in-process 115,134 97,021 Inventory consigned to affiliated entities 642,019 794,766 Finished homes 12,792,772 7,140,880 Model home furniture 117,716 136,089 Inventories $ 15,999,026 $ 10,394,288 Pre-owned homes $ 802,149 $ 1,297,475 Less homes expected to sell in 12 months (802,149 ) (542,081 ) Pre-owned homes, long term $ — $ 755,394

Short-term Investments (Tables)

Short-term Investments (Tables)	6 Months Ended
	May 07, 2022
Investments, Debt and Equity Securities [Abstract]
Summary of Short-term Investments	The following is a summary of short-term investments ( available May 7, 2022 Cost Gross Gross Estimated Equity securities in a public company $ 167,930 $ 430,224 $ — $ 598,154 November 6, 2021 Cost Gross Gross Estimated Equity securities in a public company $ 167,930 $ 453,998 $ — $ 621,928

Fair Values of Financial Inst_2

Fair Values of Financial Instruments (Tables)	6 Months Ended
	May 07, 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. May 7, 2022 Level 1 Level 2 Level 3 Equity securities in a public company $ 598,154 $ — $ — 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)	6 Months Ended
	May 07, 2022
Segment Reporting [Abstract]
Revenues by Net Sales	Revenues by net sales from manufactured housing, pre-owned Three Months Ended Six Months Ended May 7, May 1, May 7, May 1, Manufactured housing Homes sold through Company owned sales centers $ 9,492,596 $ 12,361,377 $ 18,682,934 $ 19,904,559 Homes sold to independent dealers 351,999 1,624,113 932,711 2,827,849 Homes sold through manufactured home parks 515,390 431,210 990,350 649,645 $ 10,359,985 $ 14,416,700 $ 20,605,995 $ 23,382,053 Pre-owned 207,561 243,557 702,834 283,744 Insurance agent commissions 77,500 82,643 144,487 148,614 Total net sales $ 10,645,046 $ 14,742,900 $ 21,453,316 $ 23,814,411

Inventories - Additional Inform

Inventories - Additional Information (Detail) - USD ($)	May 07, 2022	Nov. 06, 2021
Inventory Disclosure [Abstract]
Inventory consigned to affiliated entities	$ 642,019	$ 794,766

Inventories - Summary of Breakd

Inventories - Summary of Breakdown of Elements of Inventory (Detail) - USD ($)	May 07, 2022	Nov. 06, 2021
Inventory Disclosure [Abstract]
Raw materials	$ 2,331,385	$ 2,225,532
Work-in-process	115,134	97,021
Inventory consigned to affiliated entities	642,019	794,766
Finished homes	12,792,772	7,140,880
Model home furniture	117,716	136,089
Inventories	15,999,026	10,394,288
Pre-owned homes	802,149	1,297,475
Less homes expected to sell in 12 months	(802,149)	(542,081)
Pre-owned homes, long-term	$ 0	$ 755,394

Short-term Investments - Summar

Short-term Investments - Summary of Short-term Investments (Detail) - USD ($)	May 07, 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	430,224	453,998
Available-for-sale Securities, Gross Unrealized Losses	0	0
Available-for-sale Securities, Estimated Fair Value	$ 598,154	$ 621,928

Fair Values of Financial Invest

Fair Values of Financial Investments - Summary of Assets and Liabilities Measured at Fair Value on a Recurring Basis (Detail) - USD ($)	May 07, 2022	Nov. 06, 2021
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Equity securities in a public company	$ 598,154	$ 621,928
Level 1 [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Equity securities in a public company	598,154	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 (Detail) - USD ($)	3 Months Ended		6 Months Ended
	May 07, 2022	May 01, 2021	May 07, 2022	May 01, 2021
Sales Information [Line Items]
Total net sales	$ 10,645,046	$ 14,742,900	$ 21,453,316	$ 23,814,411
Manufactured Housing [Member]
Sales Information [Line Items]
Total net sales	10,359,985	14,416,700	20,605,995	23,382,053
Manufactured Housing [Member] | Homes sold through Company owned sales centers
Sales Information [Line Items]
Total net sales	9,492,596	12,361,377	18,682,934	19,904,559
Manufactured Housing [Member] | Homes sold to independent dealers
Sales Information [Line Items]
Total net sales	351,999	1,624,113	932,711	2,827,849
Manufactured Housing [Member] | Homes sold through manufactured home parks
Sales Information [Line Items]
Total net sales	515,390	431,210	990,350	649,645
Pre-Owned Homes [Member]
Sales Information [Line Items]
Total net sales	207,561	243,557	702,834	283,744
Insurance Agent Commissions [Member]
Sales Information [Line Items]
Total net sales	$ 77,500	$ 82,643	$ 144,487	$ 148,614