Skyline Champion (SKY) 10-Q 14 Apr 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Feb. 29, 2016	Apr. 14, 2016
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Feb. 29, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q3
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	Feb. 29, 2016	May. 31, 2015
Current Assets:
Cash	$ 6,260	$ 4,995
Accounts receivable, less allowance for doubtful accounts of $0 at February 29, 2016 and $536 at May 31, 2015	12,738	15,288
Inventories	10,923	9,119
Workers' compensation security deposit	1,749	1,732
Other current assets	424	447
Total Current Assets	32,094	31,581
Property, Plant and Equipment:
Land	2,996	2,996
Buildings and improvements	36,624	36,280
Machinery and equipment	16,223	16,332
Property, Plant and Equipment gross	55,843	55,608
Less accumulated depreciation	44,740	44,039
Net Property, Plant and Equipment	11,103	11,569
Other Assets	7,325	7,289
Total Assets	50,522	50,439
Current Liabilities:
Accounts payable, trade	2,381	3,033
Accrued salaries and wages	2,164	2,565
Accrued marketing programs	2,931	2,356
Accrued warranty	4,755	4,511
Other accrued liabilities	2,725	2,652
Total Current Liabilities	14,956	15,117
Long-Term Liabilities:
Deferred compensation expense	5,072	5,237
Accrued warranty	2,400	2,400
Life insurance loans	4,312	4,312
Total Long-Term Liabilities	$ 11,784	$ 11,949
Commitments and Contingencies - See Note 9
Shareholders' Equity:
Common stock, $.0277 par value, 15,000,000 shares authorized; issued 11,217,144 shares	$ 312	$ 312
Additional paid-in capital	4,985	4,928
Retained earnings	84,229	83,877
Treasury stock, at cost, 2,825,900 shares	(65,744)	(65,744)
Total Shareholders' Equity	23,782	23,373
Total Liabilities and Shareholders' Equity	$ 50,522	$ 50,439

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Feb. 29, 2016	May. 31, 2015
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 0	$ 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 - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Feb. 29, 2016	Feb. 28, 2015	Feb. 29, 2016	Feb. 28, 2015
OPERATIONS
Net sales	$ 47,697	$ 38,109	$ 155,123	$ 137,380
Cost of sales	42,887	35,771	138,443	125,843
Gross profit	4,810	2,338	16,680	11,537
Selling and administrative expenses	5,246	5,159	16,105	15,347
Operating (loss) income	(436)	(2,821)	575	(3,810)
Interest expense	(78)	(92)	(236)	(279)
Interest income		2		50
(Loss) income from continuing operations before income taxes	(514)	(2,911)	339	(4,039)
Income tax expense	0	0	0	0
(Loss) income from continuing operations	(514)	(2,911)	339	(4,039)
(Loss) income from discontinued operations, net of income taxes	(6)	(86)	13	(6,175)
Net (loss) income	$ (520)	$ (2,997)	$ 352	$ (10,214)
Basic (loss) income per share	$ (0.06)	$ (0.36)	$ 0.04	$ (1.22)
Basic (loss) income per share from continuing operations	$ (0.06)	(0.35)	$ 0.04	(0.48)
Basic loss per share from discontinued operations		$ (0.01)		$ (0.74)
Weighted average number of common shares outstanding	8,391,244	8,391,244	8,391,244	8,391,244

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Feb. 29, 2016	Feb. 28, 2015
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$ 352	$ (10,214)
Adjustments to reconcile net income (loss) to net cash from operating activities:
Depreciation	780	1,034
Reduction in inventory value of discontinued operations		901
Gain on sale of assets associated with discontinued operations		(670)
Share-based compensation	57
Amortization of debt financing costs	58
Change in assets and liabilities:
Accounts receivable	2,550	7,642
Inventories	(1,804)	928
Workers' compensation security deposit	(17)	551
Other current assets	23	(211)
Accounts payable, trade	(652)	(3,382)
Accrued liabilities	491	(1,077)
Other, net	(212)	(516)
Net cash from operating activities	1,626	(5,014)
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from note receivable		1,631
Proceeds from sale of assets associated with discontinued operations		2,331
Purchase of property, plant and equipment	(312)	(178)
Other, net	(49)	132
Net cash from investing activities	(361)	3,916
Net increase (decrease) in cash	1,265	(1,098)
Cash at beginning of period	4,995	6,031
Cash at end of period	$ 6,260	$ 4,933

Basis of Presentation

Basis of Presentation	9 Months Ended
	Feb. 29, 2016
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 February 29, 2016, the consolidated results of operations for the three-month and nine-month periods ended February 29, 2016 and February 28, 2015, and consolidated cash flows for the nine-month periods ended February 29, 2016 and February 28, 2015. 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. Certain prior period amounts related to assets and liabilities of discontinued operations have been reclassified to conform to current period presentation.

Recently Issued Accounting Pron

Recently Issued Accounting Pronouncements	9 Months Ended
	Feb. 29, 2016
Accounting Changes and Error Corrections [Abstract]
Recently Issued Accounting Pronouncements	NOTE 2 Recently Issued Accounting Pronouncements In February 2016, the Financial Accounting Standards Board, (FASB), issued Accounting Standards Update (ASU) No. 2016-02, Leases • A lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and • A right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Public business entities should apply the amendments in ASU 2016-02 for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application is permitted for all public business entities upon issuance. Lessees must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. Lessees may not apply a full retrospective transition approach. The Corporation will examine ASU 2016-02 to determine its effect on financial condition and results of operations. In July 2015, FASB issued ASU No. 2015-11, Inventory, Public business entities should apply ASU No. 2015-11 for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. The Corporation will examine this pronouncement to determine its effect on financial condition and results of operations. In August 2014, FASB issued ASU No. 2014-15, Presentation of Financial Statements-Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern In May 2014, FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 66)

Management's Plan

Management's Plan	9 Months Ended
	Feb. 29, 2016
Text Block [Abstract]
Management's Plan	NOTE 3 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: Increasing Sales Management is investigating strategies to expand our current market position relative to Real Estate Investment Trusts and other customers who are in the Manufactured Housing Community and Recreational Resort business. We continue to explore other market niches where we believe our products provide a valuable housing alternative to apartments or conventional site built homes. Management is engaged in reviewing our current Marketing Strategies used to reach the end consumer of our products. We expect to launch an improved Web site and social media portfolio designed to reach more consumers and highlight the value of Skyline products and service. In addition, our internet marketing strategy has been calibrated to benefit retail customers who are currently underrepresented by our traditional distribution channels with no downside to our existing dealers and communities. Management has empowered each of the company’s Operating Divisions to develop products which meet consumer expectations for design and features within their respective market regions. We believe that this new approach to product development will further enhance our ability to reach more consumers and capture additional market share. Management has expanded the number of Operating Divisions which produce our popular Shore Park brand of recreational park models from three to eight. Management believes that we can improve top line revenue appreciably for each of our divisions with the addition of these popular products. Decreasing Costs Management has been, and continues to be, actively engaged in driving material costs lower by more effectively controlling material costs during the procurement and manufacturing process. Management is undergoing a detailed review of all current pricing strategies and market programs and plans to introduce new initiatives designed to increase, recognize, and reward Dealer commitment and sales growth.

Discontinued Operations

Discontinued Operations	9 Months Ended
	Feb. 29, 2016
Discontinued Operations and Disposal Groups [Abstract]
Discontinued Operations	NOTE 4 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, the Corporation completed the sale of certain assets associated with its recreational vehicle segment to Evergreen Recreational Vehicles, LLC. The following table summarizes the results of discontinued operations: Three-Months Ended Nine-Months Ended February 29, 2016 February 28, 2015 February 29, 2016 February 28 , (Unaudited) (Dollars in thousands) (Unaudited) (Dollars in thousands) Net Sales $ 5 $ 52 $ 71 $ 9,767 Operating (loss) income of discontinued operations $ (6 ) $ (86 ) $ 13 $ (5,944 ) Loss on disposal of discontinued operations — — — (231 ) (Loss) income before income taxes (6 ) (86 ) 13 (6,175 ) Income tax expense — — — — (Loss) income from discontinued operations, net of taxes $ (6 ) $ (86 ) $ 13 $ (6,175 )

Inventories

Inventories	9 Months Ended
	Feb. 29, 2016
Inventory Disclosure [Abstract]
Inventories	NOTE 5 Inventories Total inventories consist of the following: February 29, 2016 May 31, 2015 (Unaudited) (Dollars in thousands) Raw materials $ 6,906 $ 5,828 Work in process 3,073 3,137 Finished goods 944 154 $ 10,923 $ 9,119

Other Assets

Other Assets	9 Months Ended
	Feb. 29, 2016
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Other Assets	NOTE 6 Other Assets Other assets consist primarily of the cash surrender value of life insurance policies which totaled $6,736,000 and $6,677,000 at February 29, 2016 and May 31, 2015, respectively.

Warranty

Warranty	9 Months Ended
	Feb. 29, 2016
Guarantees [Abstract]
Warranty	NOTE 7 Warranty A reconciliation of accrued warranty is as follows: Nine-Months Ended February 29, 2016 February 28, (Unaudited) (Dollars in thousands) Balance at the beginning of the period $ 6,911 $ 5,697 Accruals for warranties 5,087 4,932 Settlements made during the period (4,843 ) (4,907 ) Balance at the end of the period 7,155 5,722 Non-current balance 2,400 2,000 Accrued warranty $ 4,755 $ 3,722 At February 29, 2016, the total current warranty obligation associated with the discontinued recreational vehicle segment is approximately $62,000.

Income Taxes

Income Taxes	9 Months Ended
	Feb. 29, 2016
Income Tax Disclosure [Abstract]
Income Taxes	NOTE 8 Income Taxes At February 29, 2016, the Corporation’s gross deferred tax assets of approximately $49.8 million consist of approximately $34.5 million in federal net operating loss and tax credit carryforwards, $8.0 million in state net operating loss carryforwards and $7.3 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 twelve 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. For the nine months ended February 29, 2016, the Corporation reported the utilization of previously fully-reserved federal net operating loss carryforwards of $17,000 and state operating loss carryforwards of $97,000 and released corresponding amounts of the valuation allowance to offset federal and state income tax expense.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Feb. 29, 2016
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	NOTE 9 Commitments and Contingencies The Corporation was contingently liable at February 29, 2016 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 $48 million at February 29, 2016 and approximately $60 million at May 31, 2015. At February 29, 2016 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 $8 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 February 29, 2016 and May 31, 2015, a $100,000 loss reserve that is a component of other accrued liabilities. Management believes that the Corporation’s exit from the recreational vehicle business will not materially 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 February 29, 2016 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 reported are as follows: Nine-Months Ended February 29, February 28, 2016 2015 (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	9 Months Ended
	Feb. 29, 2016
Debt Disclosure [Abstract]
Secured Revolving Credit Facility	NOTE 10 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 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. Consequently, the Corporation received in the second quarter a waiver of the defaults that occurred. 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. 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. The Corporation was in compliance with Loan Agreement covenants as of February 29, 2016.

Stock-Based Compensation

Stock-Based Compensation	9 Months Ended
	Feb. 29, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-Based Compensation	NOTE 11 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 have 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. During the nine months ended February 29, 2016, the Corporation granted 200,000 and 25,000 stock options at a weighted average exercise price per share of $3.28 with a five year vesting period. Stock-based compensation expense for the fair value of the stock options vested during the three and nine months ended February 29, 2016 was approximately $22,000 and $57,000, respectively. At February 29, 2016, the intrinsic value of all options outstanding approximated $169,000 and had a weighted-average remaining contractual life of approximately nine years. Total unrecognized compensation expense related to stock-based awards outstanding at February 29, 2016 was $434,000 and is to be recorded over a weighted-average life of approximately four years. The Corporation records all stock-based payments, including grants of stock options, in the consolidated statements of operations 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. The fair value of the options granted during the nine months ended February 29, 2016 were estimated at the date of grant using the following weighted average assumptions: Volatility 55.8 % Risk-free interest rate 2.22 % Expected option life in years 9.72 Dividend yield 0 % 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 risk-free interest rate is determined based on observed U.S. Treasury yields in effect at the time of the grant for maturities equivalent to the expected life of the options. The expected option life (estimated average period of time the options will be outstanding) is estimated based on the expected exercise date of the options. The expected dividend yield of zero 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)	9 Months Ended
	Feb. 29, 2016
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 Nine-Months Ended February 29, 2016 February 28, 2015 February 29, 2016 February 28 , (Unaudited) (Dollars in thousands) (Unaudited) (Dollars in thousands) Net Sales $ 5 $ 52 $ 71 $ 9,767 Operating (loss) income of discontinued operations $ (6 ) $ (86 ) $ 13 $ (5,944 ) Loss on disposal of discontinued operations — — — (231 ) (Loss) income before income taxes (6 ) (86 ) 13 (6,175 ) Income tax expense — — — — (Loss) income from discontinued operations, net of taxes $ (6 ) $ (86 ) $ 13 $ (6,175 )

Inventories (Tables)

Inventories (Tables)	9 Months Ended
	Feb. 29, 2016
Inventory Disclosure [Abstract]
Schedule of Inventories	Total inventories consist of the following: February 29, 2016 May 31, 2015 (Unaudited) (Dollars in thousands) Raw materials $ 6,906 $ 5,828 Work in process 3,073 3,137 Finished goods 944 154 $ 10,923 $ 9,119

Warranty (Tables)

Warranty (Tables)	9 Months Ended
	Feb. 29, 2016
Guarantees [Abstract]
Reconciliation of Accrued Warranty	A reconciliation of accrued warranty is as follows: Nine-Months Ended February 29, 2016 February 28, (Unaudited) (Dollars in thousands) Balance at the beginning of the period $ 6,911 $ 5,697 Accruals for warranties 5,087 4,932 Settlements made during the period (4,843 ) (4,907 ) Balance at the end of the period 7,155 5,722 Non-current balance 2,400 2,000 Accrued warranty $ 4,755 $ 3,722

Commitments and Contingencies (

Commitments and Contingencies (Tables)	9 Months Ended
	Feb. 29, 2016
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 reported are as follows: Nine-Months Ended February 29, February 28, 2016 2015 (Unaudited) (Dollars in thousands) Number of units repurchased — 11 Obligations from units repurchased $ — $ 203 Net losses on repurchased units $ — $ 43

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	9 Months Ended
	Feb. 29, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Fair Value of Options Granted Estimated at Date of Grant Using Weighted Average Assumptions	The fair value of the options granted during the nine months ended February 29, 2016 were estimated at the date of grant using the following weighted average assumptions: Volatility 55.8 % Risk-free interest rate 2.22 % Expected option life in years 9.72 Dividend yield 0 %

Discontinued Operations - Resul

Discontinued Operations - Results of Discontinued Operations (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Feb. 29, 2016	Feb. 28, 2015	Feb. 29, 2016	Feb. 28, 2015
Discontinued Operations and Disposal Groups [Abstract]
Net Sales	$ 5	$ 52	$ 71	$ 9,767
Operating (loss) income of discontinued operations	(6)	(86)	13	(5,944)
Loss on disposal of discontinued operations				(231)
(Loss) income before income taxes	(6)	(86)	13	(6,175)
Income tax expense	0	0	0	0
(Loss) income from discontinued operations, net of taxes	$ (6)	$ (86)	$ 13	$ (6,175)

Inventories - Schedule of Inven

Inventories - Schedule of Inventories (Detail) - USD ($) $ in Thousands	Feb. 29, 2016	May. 31, 2015
Inventory Disclosure [Abstract]
Raw materials	$ 6,906	$ 5,828
Work in process	3,073	3,137
Finished goods	944	154
Total inventories	$ 10,923	$ 9,119

Other Assets - Additional Infor

Other Assets - Additional Information (Detail) - USD ($)	Feb. 29, 2016	May. 31, 2015
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Cash surrender value of life insurance	$ 6,736,000	$ 6,677,000

Warranty - Reconciliation of Ac

Warranty - Reconciliation of Accrued Warranty (Detail) - USD ($) $ in Thousands	9 Months Ended
	Feb. 29, 2016	Feb. 28, 2015	Feb. 29, 2016	May. 31, 2015	Feb. 28, 2015
Guarantees [Abstract]
Balance at the beginning of the period	$ 6,911	$ 5,697
Accruals for warranties	5,087	4,932
Settlements made during the period	(4,843)	(4,907)
Balance at the end of the period	7,155	5,722
Accrued warranty	$ 7,155	$ 5,722	$ 7,155	$ 6,911	$ 5,722
Non-current balance			2,400	2,400	2,000
Accrued warranty			$ 4,755	$ 4,511	$ 3,722

Warranty - Additional Informati

Warranty - Additional Information (Detail) - USD ($)	Feb. 29, 2016	May. 31, 2015	Feb. 28, 2015	May. 31, 2014
Guarantor Obligations [Line Items]
Estimated warranty obligation	$ 7,155,000	$ 6,911,000	$ 5,722,000	$ 5,697,000
Discontinued Recreational Vehicles Segment [Member]
Guarantor Obligations [Line Items]
Estimated warranty obligation	$ 62,000

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) - USD ($)	3 Months Ended		9 Months Ended
	Feb. 29, 2016	Feb. 28, 2015	Feb. 29, 2016	Feb. 28, 2015
Income Tax Contingency [Line Items]
Deferred tax assets	$ 49,800,000		$ 49,800,000
Federal net operating loss and tax credit carryforwards	34,500,000		34,500,000
State net operating loss carryforwards	8,000,000		8,000,000
Differences between financial and tax reporting	7,300,000		7,300,000
Income tax expense	0	$ 0	0	$ 0
Federal [Member]
Income Tax Contingency [Line Items]
Income tax expense			17,000
State [Member]
Income Tax Contingency [Line Items]
Federal net operating loss and tax credit carryforwards	17,000		17,000
State net operating loss carryforwards	$ 97,000		97,000
Income tax expense			$ 97,000
Minimum [Member] | Federal [Member]
Income Tax Contingency [Line Items]
Net operating loss and tax credit carryforwards life expectancy			12 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
	Feb. 29, 2016	May. 31, 2015
Loss Contingencies [Line Items]
Maximum potential repurchase liability	$ 48,000,000	$ 60,000,000
Other accrued liabilities	100,000	100,000
Discontinued Operations [Member]
Loss Contingencies [Line Items]
Maximum potential repurchase liability	$ 8,000,000	$ 19,000,000
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 Contingencies29

Commitments and Contingencies - Amounts of Obligations from Repurchased Units, Discontinued Operations and Incurred Net Losses for Periods (Detail) $ in Thousands	9 Months Ended
	Feb. 28, 2015USD ($)Unit
Commitments and Contingencies Disclosure [Abstract]
Number of units repurchased | Unit	11
Obligations from units repurchased	$ 203
Net losses on repurchased units	$ 43

Secured Revolving Credit Faci30

Secured Revolving Credit Facility - Additional Information (Detail) - USD ($)	Mar. 20, 2015	May. 31, 2016	Feb. 29, 2016	Jan. 31, 2016	Dec. 31, 2015	Feb. 28, 2017	Feb. 29, 2016
Line of Credit Facility [Line Items]
Expected monthly loss related to covenants			$ 1,000,000	$ 1,000,000	$ 1,500,000		$ 500,000
Scenario Forecast [Member]
Line of Credit Facility [Line Items]
Expected monthly loss related to covenants		$ 500,000				$ 250,000
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
Covenants limit on capital expenditures per year	$ 600,000				$ 800,000
Percentage of monthly bank assessment fees per annum	0.25%				0.35%

Stock-Based Compensation - Addi

Stock-Based Compensation - Additional Information (Detail) - USD ($)	Jun. 25, 2015	Feb. 29, 2016	Feb. 29, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock option awards vesting period			5 years
Stock options granted		25,000	200,000
Stock options weighted average exercise price			$ 3.28
Stock-based compensation expense		$ 22,000	$ 57,000
Intrinsic value of stock options outstanding		169,000	$ 169,000
Stock options outstanding, Weighted average contractual life			9 years
Unrecognized compensation expense related to stock-based awards outstanding		$ 434,000	$ 434,000
Unrecognized compensation expense, period for recognition			4 years
Expected dividend yield			0.00%
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

Stock-Based Compensation - Fair

Stock-Based Compensation - Fair Value of Options Granted Estimated at Date of Grant Using Weighted Average Assumptions (Detail)	9 Months Ended
	Feb. 29, 2016
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract]
Volatility	55.80%
Risk-free interest rate	2.22%
Expected option life in years	9 years 8 months 19 days
Dividend yield	0.00%