Skyline Champion (SKY) 10-Q 15 Oct 15 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Aug. 31, 2015	Oct. 15, 2015
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Aug. 31, 2015
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1
Trading Symbol	SKY
Entity Registrant Name	SKYLINE CORP
Entity Central Index Key	90,896
Current Fiscal Year End Date	--05-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		8,391,244

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Aug. 31, 2015	May. 31, 2015
Current Assets:
Cash	$ 6,672	$ 4,995
Accounts receivable, less allowance for doubtful accounts of $536	12,064	15,259
Inventories	10,498	9,008
Workers' compensation security deposit	1,015	1,732
Other current assets	1,540	447
Assets of discontinued operations	137	140
Total Current Assets	31,926	31,581
Property, Plant and Equipment:
Land	2,996	2,996
Buildings and improvements	36,287	36,280
Machinery and equipment	16,340	16,332
Property, Plant and Equipment gross	55,623	55,608
Less accumulated depreciation	44,232	44,039
Net Property, Plant and Equipment	11,391	11,569
Other Assets	7,299	7,289
Total Assets	50,616	50,439
Current Liabilities:
Accounts payable, trade	3,617	3,025
Accrued salaries and wages	2,486	2,565
Accrued marketing programs	3,172	2,319
Accrued warranty	4,482	4,511
Other accrued liabilities	2,340	2,593
Liabilities of discontinued operations	108	104
Total Current Liabilities	16,205	15,117
Long-Term Liabilities:
Deferred compensation expense	5,160	5,237
Accrued warranty	2,400	2,400
Life insurance loans	4,312	4,312
Total Long-Term Liabilities	$ 11,872	$ 11,949
Commitments and Contingencies - See Note 8
Shareholders' Equity:
Common stock, $.0277 par value, 15,000,000 shares authorized; issued 11,217,144 shares	$ 312	$ 312
Additional paid-in capital	4,928	4,928
Retained earnings	83,043	83,877
Treasury stock, at cost, 2,825,900 shares	(65,744)	(65,744)
Total Shareholders' Equity	22,539	23,373
Total Liabilities and Shareholders' Equity	$ 50,616	$ 50,439

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Aug. 31, 2015	May. 31, 2015
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 536	$ 536
Common stock, par value	$ 0.0277	$ 0.0277
Common stock, shares authorized	15,000,000	15,000,000
Common stock, shares issued	11,217,144	11,217,144
Treasury stock, shares	2,825,900	2,825,900

Consolidated Statements of Oper

Consolidated Statements of Operations and Retained Earnings - USD ($) $ in Thousands	3 Months Ended
	Aug. 31, 2015	Aug. 31, 2014
OPERATIONS
Net sales	$ 48,742	$ 49,604
Cost of sales	44,099	45,563
Gross profit	4,643	4,041
Selling and administrative expenses	5,459	5,180
Operating loss	(816)	(1,139)
Interest expense	(79)	(94)
Interest income		24
Loss from continuing operations before income taxes	(895)	(1,209)
Benefit from income taxes	0	0
Loss from continuing operations	(895)	(1,209)
Income (loss) from discontinued operations, net of income taxes	61	(2,564)
Net loss	$ (834)	$ (3,773)
Basic loss per share	$ (0.10)	$ (0.45)
Loss per share from continuing operations	(0.11)	(0.14)
Income (loss) per share from discontinued operations	$ 0.01	$ (0.31)
Weighted average number of common shares outstanding	8,391,244	8,391,244
RETAINED EARNINGS
Balance at beginning of period	$ 83,877	$ 94,291
Net loss	(834)	(3,773)
Balance at end of period	$ 83,043	$ 90,518

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Aug. 31, 2015	Aug. 31, 2014
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (834)	$ (3,773)
Adjustments to reconcile net loss to net cash from operating activities:
Depreciation	257	394
Amortization of debt financing costs	19
Change in assets and liabilities:
Accounts receivable	3,137	3,857
Inventories	(1,429)	(1,622)
Workers' compensation security deposit	717
Other current assets	(1,093)	(355)
Accounts payable, trade	624	(1,283)
Accrued liabilities	464	(171)
Other, net	(107)	(66)
Net cash from operating activities	1,755	(3,019)
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from note receivable		13
Purchase of property, plant and equipment	(70)	(26)
Other, net	(8)	(4)
Net cash from investing activities	(78)	(17)
Net increase (decrease) in cash	1,677	(3,036)
Cash at beginning of period	4,995	6,031
Cash at end of period	$ 6,672	$ 2,995

Basis of Presentation

Basis of Presentation	3 Months Ended
	Aug. 31, 2015
Accounting Policies [Abstract]
Basis of Presentation	NOTE 1 Basis of Presentation The accompanying unaudited interim consolidated financial statements contain all adjustments (consisting of only normal recurring adjustments) necessary to present fairly the consolidated financial position as of August 31, 2015, in addition to the consolidated results of operations and the consolidated cash flows for the three-month periods ended August 31, 2015 and 2014. Due to the seasonal nature of the Corporation’s business, interim results are not necessarily indicative of results for the entire year. The unaudited interim consolidated financial statements included herein have been prepared pursuant to the rules and regulations for reporting on Form 10-Q. Accordingly, certain information and footnote disclosures normally accompanying the annual consolidated financial statements have been omitted. The audited consolidated balance sheet as of May 31, 2015 and the unaudited interim consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Corporation’s latest annual report on Form 10-K.

Management's Plan

Management's Plan	3 Months Ended
	Aug. 31, 2015
Text Block [Abstract]
Management's Plan	NOTE 2 Management’s Plan The Corporation’s consolidated financial statements were prepared on a going concern basis, which assumes continuity of operations and realization of assets and satisfaction of liabilities in the ordinary course of business. Due to recurring losses during certain periods, the Corporation has historically experienced negative cash flows from operating activities. The level of historical negative cash flows from operations raise substantial doubt about the Corporation’s ability to continue as a going concern. To continue as a going concern, management determined that certain strategies need to be pursued. These strategies include but are not limited to: • Divest Non-Core Assets: Progress: In October 2014, the Corporation sold its recreational vehicle segment to focus solely on its core housing business and to raise cash. Additional information regarding the sale is in Note 3 of Notes to Consolidated Financial Statements. In addition to the sale of the RV business, the Corporation sold an idle housing facility in fiscal 2015. A buyer is also being sought for an undeveloped parcel of land the Corporation owns. • Increase Sales: • Working to increase sales to manufactured housing dealers by gaining a greater presence on their properties. • Continuing to work with manufactured housing communities to identify opportunities for increasing sales. • Increasing sales of modular homes and park models by cultivating relationships with modular housing developers and campground owners that are outside the Corporation’s historical distribution channels. Progress: Manufactured housing net sales in the first quarter of fiscal 2016 decreased 0.9 percent compared to the first quarter of fiscal 2015. Management believes the decrease is attributable to a temporary softness in demand among the Corporation’s manufactured housing dealers and communities. Park model net sales in the first quarter of fiscal 2016 decreased 21.8 percent compared with the first quarter of fiscal 2015. Management also believes the decrease is due to a temporary softness in demand among dealers, communities and campgrounds. Modular housing net sales for the first quarter of fiscal 2016 increased 1.6 percent as compared to the fiscal quarter of 2015. • Decrease Production Costs: Progress: The Corporation’s Purchasing Department has obtained significant price concessions from certain suppliers. • Raise Additional Capital: Progress: On March 20, 2015, the Corporation entered into a Loan and Security Agreement with First Business Capital Corp. providing for a renewable three-year secured revolving credit facility. Under the new credit facility, the Corporation may obtain loan advances up to a maximum of $10 million, subject to certain collateral-obligation ratios. Outstanding loan advances under the facility will bear interest at 3.75% in excess of The Wall Street Journal’s

Discontinued Operations

Discontinued Operations	3 Months Ended
	Aug. 31, 2015
Discontinued Operations and Disposal Groups [Abstract]
Discontinued Operations	NOTE 3 Discontinued Operations During September 2014, the Corporation made a strategic decision to exit the recreational vehicle industry in order to focus on its core housing business. As a result, on October 7, 2014 (“Closing Date”), the Corporation completed the sale of certain assets associated with its recreational vehicle segment (the “Transaction”) to Evergreen Recreational Vehicles, LLC (“ERV”). The Transaction was completed pursuant to the terms of an Asset Purchase Agreement entered into between the Corporation and ERV on the Closing Date, as well as the terms of a Real Property Purchase Agreement entered into on that same date between the Corporation and an affiliate of ERV, Skyline RE Holding LLC (which, collectively with ERV, is referred to herein as “Evergreen”). The assets of the recreational vehicle segment disposed of in the Transaction include: • A recreational vehicle manufacturing facility consisting of approximately 135,000 square feet situated on 18.2 acres located in Bristol, Indiana; • Intellectual properties such as trademarks, licenses, and product designs associated with the recreational vehicle segment; • Furniture, machinery, software, and equipment; • Raw material and work-in-process inventories; • Product designs, plans, and specifications; and • Customer purchase orders and contracts, customer lists, and supplier lists. The amount and nature of the consideration received by the Corporation for the assets sold included: • A cash payment of $175,000; • A separate cash payment of approximately $806,000, less prorated property taxes of approximately $73,000 and selling expenses of approximately $2,000, for the Bristol, Indiana manufacturing facility; and • Evergreen had the right, but not the obligation, to purchase raw material inventory at 50 percent of the Corporation’s cost of approximately $1,600,000, which was exercised. Consequently, the Corporation incurred an approximate $910,000 charge in fiscal 2015 reflecting the reduction in realizable value of the inventory. The Corporation received final payment for the inventory in the first quarter of fiscal 2016. In addition, under the Asset Purchase Agreement, Evergreen did not assume or agree to pay, perform, or discharge any of the Corporation’s liabilities or obligations, which remained the liabilities and obligations of the Corporation. The Bristol facility, and assets other than raw material and finished goods inventories, were sold at approximately net book value. The following table summarizes the results of discontinued operations: Three-Months Ended August 31, 2015 2014 (Unaudited) (Dollars in thousands) Net Sales $ 21 $ 7,825 Operating income (loss) of discontinued operations $ 61 $ (2,564 ) Income (loss) before income taxes 61 (2,564 ) Income tax benefit — — Income (loss) from discontinued operations, net of taxes $ 61 $ (2,564 ) The Corporation’s park model business, which was formerly reported in the recreational vehicle segment, was not disposed as part of the transaction with Evergreen and is now reported in continuing operations because the level of net sales do not warrant separate segment reporting The following is a summary of assets and liabilities of discontinued operations at the dates indicated: August 31, 2015 May 31, 2015 (Unaudited) (Dollars in thousands) Current Assets: Accounts receivable $ 87 $ 30 Inventories 50 110 $ 137 $ 140 Current Liabilities: Accounts payable, trade $ 40 $ 8 Accrued marketing programs — 37 Other accrued liabilities 68 59 $ 108 $ 104 In accordance with the Asset Purchase Agreement, the Corporation is responsible for the payment of product warranty claims associated with recreational vehicles sold by the Corporation. Consequently, this obligation is not included in the liabilities of discontinued operations on the Consolidated Balance Sheets at August 31, 2015 and May 31, 2015.

Inventories

Inventories	3 Months Ended
	Aug. 31, 2015
Inventory Disclosure [Abstract]
Inventories	NOTE 4 Inventories Total inventories from continuing operations consist of the following: August 31, 2015 May 31, 2015 (Unaudited) (Dollars in thousands) Raw materials $ 6,010 $ 5,788 Work in process 3,041 3,137 Finished goods 1,447 83 $ 10,498 $ 9,008

Other Assets

Other Assets	3 Months Ended
	Aug. 31, 2015
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Other Assets	NOTE 5 Other Assets Other assets consist primarily of the cash surrender value of life insurance policies which totaled $6,687,000 and $6,677,000 at August 31, 2015 and May 31, 2015, respectively.

Warranty

Warranty	3 Months Ended
	Aug. 31, 2015
Guarantees [Abstract]
Warranty	NOTE 6 Warranty A reconciliation of accrued warranty is as follows: Three-Months Ended 2015 2014 (Unaudited) (Dollars in thousands) Balance at the beginning of the period $ 6,911 $ 5,697 Accruals for warranties 1,545 1,695 Settlements made during the period (1,574 ) (1,731 ) Balance at the end of the period 6,882 5,661 Non-current balance included in other deferred liabilities 2,400 2,000 Accrued warranty $ 4,482 $ 3,661 At August 31, 2015, the total current obligation for warranty associated with the recreational vehicle segment that was discontinued is estimated to be approximately $409,000.

Income Taxes

Income Taxes	3 Months Ended
	Aug. 31, 2015
Income Tax Disclosure [Abstract]
Income Taxes	NOTE 7 Income Taxes At August 31, 2015, the Corporation’s gross deferred tax assets of approximately $50 million consist of approximately $35 million in federal net operating loss and tax credit carryforwards, $8 million in state net operating loss carryforwards and $7 million resulting from temporary differences between financial and tax reporting. The federal net operating loss and tax credit carryforwards have a life expectancy of between thirteen and twenty years. The state net operating loss carryforwards have a life expectancy, depending on the state where a loss was incurred, between one and twenty years. The Corporation has recorded a full valuation allowance against this asset. If the Corporation, after considering future negative and positive evidence regarding the realization of deferred tax assets, determines that a lesser valuation allowance is warranted, it would record a reduction to income tax expense and the valuation allowance in the period of determination.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Aug. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	NOTE 8 Commitments and Contingencies The Corporation was contingently liable at August 31, 2015 and May 31, 2015, under repurchase agreements with certain financial institutions providing inventory financing for dealers of its products. Under these arrangements, which are customary in the manufactured housing and recreational vehicle industries, the Corporation agrees to repurchase units in the event of default by the dealer at declining prices over the term of the agreement. The period to potentially repurchase units is between 12 to 24 months. The maximum repurchase liability is the total amount that would be paid upon the default of the Corporation’s independent dealers. The maximum potential repurchase liability for continuing and discontinued operations, without reduction for the resale value of the repurchased units, was approximately $55 million at August 31, 2015 and approximately $60 million at May 31, 2015. At August 31, 2015 and May 31, 2015, the maximum potential repurchase liability, without reduction for the resale value of the repurchased units, associated with discontinued operations was approximately $14 million and $19 million, respectively. As a result of favorable experience regarding repurchased units, which is largely due to the strength of dealers selling the Corporation’s products, the Corporation maintained at August 31, 2015 and May 31, 2015, a $100,000 loss reserve that is a component of other accrued liabilities. The amount of this loss reserve that pertains to discontinued operations is $9,000, and Management believes that the Corporation’s exit from the recreational vehicle business will not further impact the loss reserve. The risk of loss under these agreements is spread over many dealers and financial institutions. The loss, if any, under these agreements is the difference between the repurchase cost and the resale value of the units. The Corporation estimates the fair value of this commitment considering both the contingent losses and the value of the guarantee. This amount has historically been insignificant. The Corporation believes that any potential loss under the agreements in effect at August 31, 2015 will not be material to its financial position or results of operations. The amounts of obligations from repurchased units, all of which were from discontinued operations, and incurred net losses for the periods presented are as follows: Three-Months Ended 2015 2014 (Unaudited) (Dollars in thousands) Number of units repurchased — 11 Obligations from units repurchased $ — $ 203 Net losses on repurchased units $ — $ 43 The Corporation is a party to various pending legal proceedings in the normal course of business. Management believes that any losses resulting from such proceedings would not have a material adverse effect on the Corporation’s results of operations or financial position. The Corporation utilizes a combination of insurance coverage and self-insurance for certain items, including workers’ compensation and group health benefits. Liabilities for workers’ compensation are recognized for estimated future medical costs and indemnity costs. Liabilities for group health benefits are recognized for claims incurred but not paid. Insurance reserves are estimated based upon a combination of historical data and actuarial information. Actual results could differ from these estimates.

Secured Revolving Credit Facili

Secured Revolving Credit Facility	3 Months Ended
	Aug. 31, 2015
Debt Disclosure [Abstract]
Secured Revolving Credit Facility	NOTE 9 Secured Revolving Credit Facility On March 20, 2015, the Corporation entered into a Loan and Security Agreement (the “Loan Agreement”) with First Business Capital Corp. (“First Business Capital”). Under the Loan Agreement, First Business Capital will provide a secured revolving credit facility to the Corporation for a term of three years, renewable on an annual basis thereafter with each renewal for a successive one-year term. The Corporation may obtain loan advances up to a maximum of $10,000,000 subject to certain collateral-obligation ratios. In addition, loan advances bear interest at 3.75% in excess of The Wall Street Journal’s Also under the Loan Agreement, First Business Capital agreed to issue, or cause to be issued by a bank affiliate or other bank, letters of credit for the account of the Corporation. However, no advances have yet been made in connection with such letters of credit. As part of the financing, the Company paid First Business Capital a facility fee of $150,000 at closing, and also agreed to pay the following fees to First Business Capital during the term of the facility: (i) annual facility fees of $50,000; (ii) an unused line fee payable in arrears at the rate of 0.25% per annum on the average daily unused amount of the facility during the prior calendar month; (iii) monthly bank assessment fees equal to 0.25% per annum of the maximum loan amount; (iv) certain overadvance fees (currently $1,000 per day) in the event outstanding obligations and letter of credit liabilities under the facility exceeds the amount permitted under the Loan Agreement; and (v) monthly letter of credit fees payable in arrears at the rate of 0.25% on the outstanding amount of letters of credit issued and outstanding during the prior month. The Loan Agreement contains covenants that limit the ability of the Corporation to, among other things: (i) incur or guarantee other indebtedness; (ii) create or incur liens, mortgages, or security interests on their assets; (iii) expend more than $600,000 per year for the lease, purchase, or acquisition of any asset; (iv) consummate asset sales, acquisitions, or mergers; (v) pay dividends or repurchase stock; (vi) make certain investments; (vii) enter into certain transactions with affiliates; and (viii) amend a Corporation’s articles of incorporation or bylaws. The Loan Agreement also requires compliance with certain financial covenants (in each case calculated as set forth in the Loan Agreement), including: (i) minimum net worth; (ii) minimum net earnings; and (iii) maximum net loss. If the Corporation defaults in its obligations under the Loan Agreement, then the unpaid balances under the facility will bear interest at 3.0% per annum in excess of the rate that would apply in the absence of a default. Other remedies available to First Business Capital upon an event of default include the right to accelerate the maturity of all obligations, the right to foreclose on and otherwise repossess the collateral securing the obligations, all rights of a secured creditor under applicable law, and all other rights set forth in the Loan Agreement. The events of default under the Loan Agreement include the following: (i) certain events of bankruptcy and insolvency; (ii) failure to make required payments; (iii) misrepresentations to First Business Capital; (iv) failure to comply with certain covenants and agreements; (v) termination or default under guarantees or subordination agreements; (vi) certain cross-default events; (vii) changes in control of the Corporation; (viii) certain injunctions or attachments are issued against a Corporation’s assets or restricting its business; and (ix) a material adverse change occurs with respect to the Corporation. During the first quarter of fiscal 2016, the Corporation on two occasions did not meet a covenant requiring a monthly loss not exceeding $500,000. In addition, at least one monthly loss exceeding $500,000 is projected during the third quarter of fiscal 2016; a period where net sales are traditionally at its lowest for the year. The Corporation, however, complied with a covenant specifying that the loss for the first quarter of fiscal 2016 not exceed $1,000,000, as a result of the net income the Corporation earned in the month of August. Subsequent to August 31, 2015, the Corporation received a waiver for the defaults that occurred in the first quarter. In addition, the following modifications were made to the Loan Agreement: • A covenant specifying that a monthly loss not exceed $500,000 was modified to $1,500,000 for December 2015, $1,000,000 for January 2016, and $1,000,000 for February, 2016, respectively. Following February 2016, the maximum monthly net loss as noted in the original Loan Agreement returns to $500,000 for March to May 2016, and $250,000 thereafter; • The limit for the lease, purchase or acquisition of any asset increased from $600,000 per year to $800,000 per year; and • The monthly bank assessment fee increased from .25% per annum to .35% per annum.

Stock-Based Compensation

Stock-Based Compensation	3 Months Ended
	Aug. 31, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-Based Compensation	NOTE 10 Stock-Based Compensation On June 25, 2015, the Corporation’s Board of Directors approved the 2015 Stock Incentive Plan (“Plan”), which allows the granting of stock options and other equity awards to directors, officers, employees, and eligible independent contractors of the Corporation and is intended to retain and reward key employees’ performance and efforts as they relate to the Corporation’s long-term objectives and strategic plan. The Plan was subsequently approved by shareholders at the Corporation’s annual shareholder meeting on September 21, 2015. A total of 700,000 shares of Common Stock has been reserved for issuance under the Plan. Stock option awards are granted with an exercise price equal to, or greater than, the market price of the Corporation’s stock at the date of grant and vest over a period of time as determined by the Corporation at the date of grant up to the contractual ten year life of the options, at which time the options expire. On June 25, 2015, the Corporation granted 200,000 stock options at an exercise price per share of $3.12 with a five year vesting period. Stock-based compensation expense for the fair value of the stock options vested during the three months ended August 31, 2015 was not significant. At August 31, 2015, the intrinsic value of all options outstanding approximated $38,000 and had a weighted-average remaining contractual life of ten years. Total unrecognized compensation expense related to stock-based awards outstanding at August 31, 2015, was $421,000 and is to be recorded over a weighted-average life of five years. The Corporation records all stock-based payments, including grants of stock options, in the consolidated statements of operations and retained earnings based on their fair values at the date of grant. The Corporation currently uses the Black-Scholes option pricing model to determine the fair value of stock options. The determination of the fair value of stock options on the date of grant using an option-pricing model is affected by stock price as well as assumptions that include expected stock price volatility over the term of the awards, expected life of the awards, risk-free interest rate, and expected dividends. Stock price volatility is estimated based on historical volatility measured monthly for a time period equal to the expected life of the option ending on the date of grant. The expected life of stock options (estimated average period of time the options will be outstanding) is estimated based on the contractual life or the vesting period of the options. The risk-free interest rate is determined based on observed U.S. Treasury yields in effect at the time of grant for maturities equivalent to the expected life of the options. The expected dividend yield is estimated based on the dividend yield at the time of grant as adjusted for any expected changes during the life of the options.

Discontinued Operations (Tables

Discontinued Operations (Tables)	3 Months Ended
	Aug. 31, 2015
Discontinued Operations and Disposal Groups [Abstract]
Results of Discontinued Operations and Summary of Assets and Liabilities of Discontinued Operations	The following table summarizes the results of discontinued operations: Three-Months Ended August 31, 2015 2014 (Unaudited) (Dollars in thousands) Net Sales $ 21 $ 7,825 Operating income (loss) of discontinued operations $ 61 $ (2,564 ) Income (loss) before income taxes 61 (2,564 ) Income tax benefit — — Income (loss) from discontinued operations, net of taxes $ 61 $ (2,564 ) The following is a summary of assets and liabilities of discontinued operations at the dates indicated: August 31, 2015 May 31, 2015 (Unaudited) (Dollars in thousands) Current Assets: Accounts receivable $ 87 $ 30 Inventories 50 110 $ 137 $ 140 Current Liabilities: Accounts payable, trade $ 40 $ 8 Accrued marketing programs — 37 Other accrued liabilities 68 59 $ 108 $ 104

Inventories (Tables)

Inventories (Tables)	3 Months Ended
	Aug. 31, 2015
Inventory Disclosure [Abstract]
Schedule of Inventories from Continuing Operations	Total inventories from continuing operations consist of the following: August 31, 2015 May 31, 2015 (Unaudited) (Dollars in thousands) Raw materials $ 6,010 $ 5,788 Work in process 3,041 3,137 Finished goods 1,447 83 $ 10,498 $ 9,008

Warranty (Tables)

Warranty (Tables)	3 Months Ended
	Aug. 31, 2015
Guarantees [Abstract]
Reconciliation of Accrued Warranty	A reconciliation of accrued warranty is as follows: Three-Months Ended 2015 2014 (Unaudited) (Dollars in thousands) Balance at the beginning of the period $ 6,911 $ 5,697 Accruals for warranties 1,545 1,695 Settlements made during the period (1,574 ) (1,731 ) Balance at the end of the period 6,882 5,661 Non-current balance included in other deferred liabilities 2,400 2,000 Accrued warranty $ 4,482 $ 3,661

Commitments and Contingencies (

Commitments and Contingencies (Tables)	3 Months Ended
	Aug. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
Amounts of Obligations from Repurchased Units, Discontinued Operations and Incurred Net Losses for Periods	The amounts of obligations from repurchased units, all of which were from discontinued operations, and incurred net losses for the periods presented are as follows: Three-Months Ended 2015 2014 (Unaudited) (Dollars in thousands) Number of units repurchased — 11 Obligations from units repurchased $ — $ 203 Net losses on repurchased units $ — $ 43

Management's Plan - Additional

Management's Plan - Additional Information (Detail) - USD ($)	Mar. 20, 2015	Aug. 31, 2015
Secured Revolving Credit Facility [Member]
Management Plans [Line Items]
Maximum borrowing capacity	$ 10,000,000
Secured revolving credit facility term	3 years
Credit facility, interest rate	3.75%
Interest rate description		Loan advances bear interest at 3.75% in excess of The Wall Street Journal's published one year LIBOR rate
Manufactured Housing [Member]
Management Plans [Line Items]
Percentage of decrease in sales		0.90%
Park Models [Member]
Management Plans [Line Items]
Percentage of decrease in sales		21.80%
Modular Housing [Member]
Management Plans [Line Items]
Percentage of increase in sales		1.60%

Discontinued Operations - Addit

Discontinued Operations - Additional Information (Detail)	Oct. 07, 2014USD ($)aft²	Mar. 31, 2015USD ($)
Evergreen Recreational Vehicles LLC [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Percent of Corporation's cost for raw materials inventory purchased	50.00%
Corporation's raw material cost	$ 1,600,000
Reduction in value of the raw material and payment		$ (910,000)
Recreational Vehicle Operations [Member] | Bristol [Member] | Manufacturing Facility [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Cash payment received as consideration for asset sold	806,000
Prorated property taxes	73,000
Selling expenses	2,000
Bristol, Indiana Manufacturing Facility [Member] | Recreational Vehicle Operations [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Cash payment received as consideration for asset sold	$ 175,000
Bristol, Indiana Manufacturing Facility [Member] | Recreational Vehicle Operations [Member] | Bristol [Member] | Manufacturing Facility [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Area of property | ft²	135,000
Area of land | a	18.2

Discontinued Operations - Resul

Discontinued Operations - Results of Discontinued Operations (Detail) - USD ($) $ in Thousands	3 Months Ended
	Aug. 31, 2015	Aug. 31, 2014
Discontinued Operations and Disposal Groups [Abstract]
Net Sales	$ 21	$ 7,825
Operating income (loss) of discontinued operations	61	(2,564)
Income (loss) before income taxes	61	(2,564)
Income tax benefit	0	0
Income (loss) from discontinued operations, net of taxes	$ 61	$ (2,564)

Discontinued Operations - Summa

Discontinued Operations - Summary of Assets and Liabilities of Discontinued Operations (Detail) - USD ($) $ in Thousands	Aug. 31, 2015	May. 31, 2015
Current Assets:
Accounts receivable	$ 87	$ 30
Inventories	50	110
Current Assets, Total	137	140
Current Liabilities:
Accounts payable, trade	40	8
Accrued marketing programs		37
Other accrued liabilities	68	59
Current Liabilities, Total	$ 108	$ 104

Inventories - Schedule of Inven

Inventories - Schedule of Inventories from Continuing Operations (Detail) - USD ($) $ in Thousands	Aug. 31, 2015	May. 31, 2015
Inventory Disclosure [Abstract]
Raw materials	$ 6,010	$ 5,788
Work in process	3,041	3,137
Finished goods	1,447	83
Total inventories	$ 10,498	$ 9,008

Other Assets - Additional Infor

Other Assets - Additional Information (Detail) - USD ($)	Aug. 31, 2015	May. 31, 2015
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Cash surrender value of life insurance	$ 6,687,000	$ 6,677,000

Warranty - Reconciliation of Ac

Warranty - Reconciliation of Accrued Warranty (Detail) - USD ($) $ in Thousands	3 Months Ended
	Aug. 31, 2015	Aug. 31, 2014	May. 31, 2015
Guarantees [Abstract]
Balance at the beginning of the period	$ 6,911	$ 5,697
Accruals for warranties	1,545	1,695
Settlements made during the period	(1,574)	(1,731)
Balance at the end of the period	6,882	5,661
Non-current balance included in other deferred liabilities	2,400	2,000	$ 2,400
Accrued warranty	$ 4,482	$ 3,661	$ 4,511

Warranty - Additional Informati

Warranty - Additional Information (Detail) - USD ($)	Aug. 31, 2015	May. 31, 2015	Aug. 31, 2014	May. 31, 2014
Guarantor Obligations [Line Items]
Estimated warranty obligation	$ 6,882,000	$ 6,911,000	$ 5,661,000	$ 5,697,000
Recreational Vehicles [Member]
Guarantor Obligations [Line Items]
Estimated warranty obligation	$ 409,000

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) $ in Millions	3 Months Ended
	Aug. 31, 2015USD ($)
Income Tax Contingency [Line Items]
Deferred tax assets	$ 50
Federal net operating loss and tax credit carryforwards	35
State net operating loss carryforwards	8
Differences between financial and tax reporting	$ 7
Minimum [Member] | Federal [Member]
Income Tax Contingency [Line Items]
Net operating loss and tax credit carryforwards life expectancy	13 years
Minimum [Member] | State [Member]
Income Tax Contingency [Line Items]
Net operating loss and tax credit carryforwards life expectancy	1 year
Maximum [Member] | Federal [Member]
Income Tax Contingency [Line Items]
Net operating loss and tax credit carryforwards life expectancy	20 years
Maximum [Member] | State [Member]
Income Tax Contingency [Line Items]
Net operating loss and tax credit carryforwards life expectancy	20 years

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Detail) - USD ($)	3 Months Ended	12 Months Ended
	Aug. 31, 2015	May. 31, 2015
Loss Contingencies [Line Items]
Maximum potential repurchase liability	$ 55,000,000	$ 60,000,000
Other accrued liabilities	100,000	100,000
Discontinued Operations [Member]
Loss Contingencies [Line Items]
Maximum potential repurchase liability	14,000,000	19,000,000
Other accrued liabilities	$ 9,000	$ 9,000
Minimum [Member]
Loss Contingencies [Line Items]
Period to potentially repurchase units	12 months	12 months
Maximum [Member]
Loss Contingencies [Line Items]
Period to potentially repurchase units	24 months	24 months

Commitments and Contingencies30

Commitments and Contingencies - Amounts of Obligations from Repurchased Units, Discontinued Operations and Incurred Net Losses for Periods (Detail) $ in Thousands	3 Months Ended
	Aug. 31, 2015Unit	Aug. 31, 2014USD ($)Unit
Commitments and Contingencies Disclosure [Abstract]
Number of units repurchased | Unit	0	11
Obligations from units repurchased		$ 203
Net losses on repurchased units		$ 43

Secured Revolving Credit Faci31

Secured Revolving Credit Facility - Additional Information (Detail) - USD ($)	Mar. 20, 2015	Feb. 29, 2016	Jan. 31, 2016	Dec. 31, 2015	Aug. 31, 2016	May. 31, 2016	Feb. 29, 2016	Aug. 31, 2015
Line of Credit Facility [Line Items]
Expected monthly loss related to covenants								$ 500,000
Maximum amount of loss related to covenants								$ 1,000,000
Scenario Forecast [Member]
Line of Credit Facility [Line Items]
Expected monthly loss related to covenants		$ 1,000,000	$ 1,000,000	$ 1,500,000	$ 250,000	$ 500,000	$ 500,000
Secured Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Maximum borrowing capacity	$ 10,000,000
Credit facility, interest rate	3.75%
Interest rate description								Loan advances bear interest at 3.75% in excess of The Wall Street Journal's published one year LIBOR rate
Secured revolving credit facility term	3 years
Secured revolving credit facility renewal term	1 year
Facility fee amount	$ 150,000
Annual facility fees	$ 50,000
Unused line fee payable in arrears per annum	0.25%
Percentage of monthly bank assessment fees per annum	0.25%
Overadvance fees per day	$ 1,000
Percentage of monthly letter of credit fees payable in arrears	0.25%
Covenants limit on capital expenditures per year	$ 600,000
Unpaid balances interest rate	3.00%
Secured Revolving Credit Facility [Member] | Scenario Forecast [Member]
Line of Credit Facility [Line Items]
Percentage of monthly bank assessment fees per annum				0.35%
Covenants limit on capital expenditures per year				$ 800,000

Stock-Based Compensation - Addi

Stock-Based Compensation - Additional Information (Detail) - USD ($)	Jun. 25, 2015	Aug. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock option awards vesting period	5 years	5 years
Stock options granted	200,000
Stock options exercise price	$ 3.12
Intrinsic value of stock options outstanding		$ 38,000
Stock options outstanding, Weighted average contractual life		10 years
Unrecognized compensation expense related to stock-based awards outstanding		$ 421,000
2015 Stock Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares of common stock available under the 2015 plan	700,000
Stock option awards vesting period	10 years