Skyline Champion (SKY) 10-Q 14 Apr 17 2017 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Feb. 28, 2017	Apr. 14, 2017
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Feb. 28, 2017
Document Fiscal Year Focus	2,017
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. 28, 2017	May 31, 2016
Current Assets:
Cash	$ 5,232	$ 7,659
Accounts receivable	14,857	15,153
Inventories	13,619	11,381
Workers' compensation security deposit	690	1,294
Other current assets	776	331
Total Current Assets	35,174	35,818
Property, Plant and Equipment, at Cost:
Land	2,996	2,996
Buildings and improvements	37,279	36,624
Machinery and equipment	17,364	16,977
Property, Plant and Equipment gross	57,639	56,597
Less accumulated depreciation	45,690	44,952
Net Property, Plant and Equipment	11,949	11,645
Other Assets	7,241	7,515
Total Assets	54,364	54,978
Current Liabilities:
Accounts payable, trade	3,776	3,921
Accrued salaries and wages	2,555	3,557
Accrued marketing programs	3,090	1,767
Accrued warranty	5,686	4,817
Customer deposits	1,664	1,521
Other accrued liabilities	2,918	2,448
Total Current Liabilities	19,689	18,031
Long-Term Liabilities:
Deferred compensation expense	4,921	5,002
Accrued warranty	2,500	2,500
Life insurance loans	4,312	4,312
Total Long-Term Liabilities	11,733	11,814
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	5,117	5,010
Retained earnings	83,257	85,555
Treasury stock, at cost, 2,825,900 shares	(65,744)	(65,744)
Total Shareholders' Equity	22,942	25,133
Total Liabilities and Shareholders' Equity	$ 54,364	$ 54,978

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Feb. 28, 2017	May 31, 2016
Statement of Financial Position [Abstract]
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. 28, 2017	Feb. 29, 2016	Feb. 28, 2017	Feb. 29, 2016
OPERATIONS
Net sales	$ 51,640	$ 47,697	$ 177,042	$ 155,123
Cost of sales	48,421	42,887	162,013	138,443
Gross profit	3,219	4,810	15,029	16,680
Selling and administrative expenses	5,581	5,246	17,070	16,105
Operating (loss) income	(2,362)	(436)	(2,041)	575
Interest expense	(85)	(78)	(257)	(236)
(Loss) income from continuing operations before income taxes	(2,447)	(514)	(2,298)	339
Income tax expense	0	0	0	0
(Loss) income from continuing operations	(2,447)	(514)	(2,298)	339
(Loss) income from discontinued operations, net of taxes		(6)		13
Net (loss) income	$ (2,447)	$ (520)	$ (2,298)	$ 352
Basic and diluted (loss) income per share	$ (0.29)	$ (0.06)	$ (0.27)	$ 0.04
Basic and diluted (loss) income per share from continuing operations	(0.29)	(0.06)	(0.27)	0.04
Basic and diluted income (loss) per share from discontinued operations	$ 0	$ 0	$ 0	$ 0
Weighted average number of common Shares outstanding:
Basic	8,391,244	8,391,244	8,391,244	8,391,244
Diluted	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. 28, 2017	Feb. 29, 2016
CASH FLOWS FROM OPERATING ACTIVITIES:
Net (loss) income	$ (2,298)	$ 352
Adjustments to reconcile net (loss) income to net cash from operating activities:
Depreciation	779	780
Amortization of debt financing costs	77	58
Share-based compensation	107	57
Change in assets and liabilities:
Accounts receivable	296	2,550
Inventories	(2,238)	(1,804)
Workers' compensation security deposit	604	(17)
Other current assets	(445)	23
Accounts payable, trade	(145)	(652)
Accrued liabilities	1,803	491
Other, net	170	(212)
Net cash from operating activities	(1,290)	1,626
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property, plant and equipment	(1,094)	(312)
Other, net	(43)	(49)
Net cash from investing activities	(1,137)	(361)
Net (decrease) increase in cash	(2,427)	1,265
Cash at beginning of period	7,659	4,995
Cash at end of period	$ 5,232	$ 6,260

Basis of Presentation

Basis of Presentation	9 Months Ended
	Feb. 28, 2017
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 28, 2017, in addition to the consolidated results of operations and cash flows for the three-month and nine-month periods ended February 28, 2017 and February 29, 2016. 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. 10-K.

Discontinued Operations

Discontinued Operations	9 Months Ended
	Feb. 28, 2017
Discontinued Operations and Disposal Groups [Abstract]
Discontinued Operations	NOTE 2 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 28, February 29, February 28, February 29, (Unaudited) (Unaudited) (Dollars in thousands) (Dollars in thousands) Net Sales $ — $ 5 $ — $ 71 Operating (loss) income of discontinued operations $ — $ (6 ) $ — $ 13 (Loss) income before income taxes — (6 ) — 13 Income tax expense — — — — (Loss) income from discontinued, operations, net of taxes $ — $ (6 ) $ — $ 13

Inventories

Inventories	9 Months Ended
	Feb. 28, 2017
Inventory Disclosure [Abstract]
Inventories	NOTE 3 Inventories Total inventories consist of the following: February 28, 2017 May 31, 2016 (Unaudited) (Dollars in thousands) Raw materials $ 8,880 $ 7,198 Work in process 4,033 3,447 Finished goods 706 736 $ 13,619 $ 11,381

Other Assets

Other Assets	9 Months Ended
	Feb. 28, 2017
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Other Assets	NOTE 4 Other Assets Other assets consist primarily of the cash surrender value of life insurance policies which totaled $6,944,000 and $6,885,000 at February 28, 2017 and May 31, 2016, respectively.

Warranty

Warranty	9 Months Ended
	Feb. 28, 2017
Guarantees [Abstract]
Warranty	NOTE 5 Warranty A reconciliation of accrued warranty is as follows: Nine-Months Ended February 28, 2017 February 29, 2016 (Unaudited) (Unaudited) (Dollars in thousands) (Dollars in thousands) Balance at the beginning of the period $ 7,317 $ 6,911 Accruals for warranties 6,078 5,087 Settlements made during the period (5,209 ) (4,843 ) Balance at the end of the period 8,186 7,155 Non-current 2,500 2,400 Accrued warranty $ 5,686 $ 4,755 At February 28, 2017, the total current obligation for warranty and related expenses associated with discontinued operations is estimated to be $115,000 as compared to $150,000 at May 31, 2016.

Life Insurance Loans

Life Insurance Loans	9 Months Ended
	Feb. 28, 2017
Investments, All Other Investments [Abstract]
Life Insurance Loans	NOTE 6 Life Insurance Loans Life insurance loans have no fixed repayment schedule, and have interest rates ranging from 4.2 percent to 7.4 percent. The weighted average interest rate is 5.2 percent.

Income Taxes

Income Taxes	9 Months Ended
	Feb. 28, 2017
Income Tax Disclosure [Abstract]
Income Taxes	NOTE 7 Income Taxes At February 28, 2017, the Corporation’s gross deferred tax assets of approximately $49.8 million consist of approximately $34.8 million in federal net operating loss and tax credit carryforwards, $7.8 million in state net operating loss carryforwards and $7.2 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 eleven 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	9 Months Ended
	Feb. 28, 2017
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	NOTE 8 Commitments and Contingencies The Corporation was contingently liable at February 28, 2017 and May 31, 2016, 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 park model 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, without reduction for the resale value of the repurchased units, was approximately $27 million at February 28, 2017 and $25 million at May 31, 2016. As a result of the Corporation’s favorable experience regarding repurchased units, which is largely due to the strength of dealers selling the Corporation’s products, the Corporation maintained at February 28, 2017 and May 31, 2016, a $100,000 loss reserve that is a component of other accrued liabilities. 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 28, 2017 will not be material to its financial position or results of operations. There were no obligations or incurred net losses from repurchased units for the three and nine month periods ended February 28, 2017 and February 29, 2016. 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. 28, 2017
Debt Disclosure [Abstract]
Secured Revolving Credit Facility	NOTE 9 Secured Revolving Credit Facility On March 20, 2015, the Corporation (“Borrower(s)”) 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 Borrowers for a term of three years, renewable on an annual basis thereafter with each renewal for a successive one-year The Wall Street Journal’s In the third quarter of fiscal 2017, the Corporation did not meet a covenant requiring the year to date net loss not to exceed $1,750,000, and a covenant requiring net worth as of February 28, 2017 to not be below $23,383,000. The inability to meet these covenants represent an event of default, which if not waived could negatively affect the Corporation’s ability to obtain financing under the facility and thereby have an adverse effect on liquidity. Subsequent to February 28, 2017, the Corporation received a waiver for the default that occurred in the third quarter and paid to First Business Capital an accommodation fee of $50,000. Except as provided herein, the Loan Agreement and all other loan documentation related thereto shall remain in full force and effect in accordance with their terms.

Stock-Based Compensation

Stock-Based Compensation	9 Months Ended
	Feb. 28, 2017
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 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 Stock Options – The following tables summarize option activity for the nine months ended February 28, 2017 and February 29, 2016: Number Shares Weighted Weighted Aggregate (in Options outstanding at May 31, 2015 — $ Granted 225,000 3.28 Options outstanding at February 29, 2016 225,000 $ 3.28 9.39 $ 169 Options outstanding at May 31, 2016 225,000 $ 3.28 Granted 49,000 10.23 Options outstanding at February 28, 2017 274,000 $ 4.79 8.65 $ 1,988 Vested and exercisable options at February 28, 2017 45,000 $ 3.28 8.39 $ 395 The weighted average grant-date fair value of options granted during the first nine months of fiscal 2017 and 2016 were $7.58 and $2.19, respectively. Number of Weighted Grant-Date Non-vested — $ — Granted 225,000 2.19 Vested — — Non-vested 225,000 $ 2.19 Non-vested 225,000 $ 2.19 Granted 49,000 7.58 Vested (45,000 ) 2.19 Non-vested 229,000 $ 3.34 Stock-based compensation expense for the third quarter of fiscal 2017 and 2016 was approximately $39,000 and $22,000, respectively. Stock-based compensation expense for the first nine months of fiscal 2017 and 2016 was approximately $101,000 and $57,000, respectively. Total unrecognized compensation expense related to stock options outstanding at February 28, 2017 was approximately $680,000 and is to be recorded over a weighted-average life of 3.6 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 first nine months of fiscal 2017 and 2016 were estimated at the date of grant using the following weighted average assumptions: 2017 2016 Volatility 64.3 % 55.8 % Risk-free interest rate 2.14 % 2.22 % Expected option life in years 7.50 9.72 Dividend yield 0 % 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. Restricted Stock – In the third quarter of fiscal 2017, the Corporation issued 15,000 shares of restricted stock valued at approximately $216,000. The value was determined using the market price of the Corporation’s common stock at the date of grant. The restricted stock’s value is to be expensed over a five year vesting period using a straight-line method. Compensation expense for the third quarter was approximately $6,000, and unrecognized compensation expense at February 28, 2017 was approximately $210,000.

Earnings Per Share

Earnings Per Share	9 Months Ended
	Feb. 28, 2017
Earnings Per Share [Abstract]
Earnings Per Share	NOTE 11 Earnings Per Share Basic earnings per common share is computed based on the weighted-average number of common shares outstanding during the reporting period. Diluted earnings per common share is computed based on the combination of dilutive common share equivalents, comprised of shares issuable under the Corporation’s Stock Incentive Plan and the weighted-average number of common shares outstanding during the reporting period. Dilutive common share equivalents include the dilutive effect of in-the-money Three-Months Ended Nine-Months Ended February 28, February 29, February 28, February 29, (Unaudited) (Unaudited) Net (loss) income $ (2,447 ) $ (520 ) $ (2,298 ) $ 352 Weighted average share outstanding: Basic 8,391,244 8,391,244 8,391,244 8,391,244 Common stock equivalents - treasury stock method — — — — Diluted 8,391,244 8,391,244 8,391,244 8,391,244 Net (loss) income per share: Basic $ (.29 ) $ (.06 ) $ (.27 ) $ .04 Diluted $ (.29 ) $ (.06 ) $ (.27 ) $ .04 For the third quarter of fiscal 2017 and fiscal 2016, there were 175,484 and 86,871 anti-dilutive common stock equivalents excluded from the computation of diluted earnings per share, respectively. There were 161,368 and 119,569 anti-dilutive common stock equivalents excluded from the computation of diluted earnings per share for the nine months ended February 28, 2017 and February 29, 2016, respectively.

Restructuring Activities

Restructuring Activities	9 Months Ended
	Feb. 28, 2017
Restructuring and Related Activities [Abstract]
Restructuring Activities	NOTE 12 Restructuring Activities On February 14, 2017, the Corporation entered into a restructuring plan involving the suspension of operations at the Mansfield, Texas facility. Subsequent to the end of the third quarter of fiscal 2017, the Corporation continued its restructuring plan with the announcement of the suspension of operations at the Elkhart, Indiana facility. The plan for the Elkhart facility is referenced in Note 13. The restructuring does not represent a strategic shift in operations due to an expectation to have a portion of customers of these two facilities serviced by manufacturing facilities located in Arkansas City, Kansas and Sugarcreek, Ohio. The suspension of operations in Mansfield was due to the plant being unable to profitably operate since it was converted from producing recreational vehicles to manufactured housing in fiscal 2014. Production will continue until the backlog is fulfilled in April 2017. The Corporation has not entered into one-time On February 24, 2017, the Corporation entered into a Real Estate Purchase Agreement to sell real property and substantially all of the equipment located in Mansfield. Raw materials, inventory and licensed vehicles were excluded from the sale. The sale was completed on April 11, 2017 for a net sales price of approximately $2,212,000, resulting in an estimated gain of approximately $1,400,000 that will be recognized in the fourth quarter. The assets sold were security under the Corporation’s Secured Revolving Credit Facility with First Business Capital. First Business Capital released its lien on the real property subject to $1,100,000 of the net sales proceeds being held in a cash collateral account at First Business Bank, an affiliate of First Business Capital.

Subsequent Events

Subsequent Events	9 Months Ended
	Feb. 28, 2017
Subsequent Events [Abstract]
Subsequent Events	NOTE 13 Subsequent Events On March 1, 2017, the Corporation announced the suspension of operations at the Elkhart, Indiana facility. The suspension was due to the plant being unable to profitably operate since it opened in June 2016. Production was completed on March 8, 2017. There were no one-time

Discontinued Operations (Tables

Discontinued Operations (Tables)	9 Months Ended
	Feb. 28, 2017
Discontinued Operations and Disposal Groups [Abstract]
Results of Discontinued Operations	The following table summarizes the results of discontinued operations: Three-Months Ended Nine-Months Ended February 28, February 29, February 28, February 29, (Unaudited) (Unaudited) (Dollars in thousands) (Dollars in thousands) Net Sales $ — $ 5 $ — $ 71 Operating (loss) income of discontinued operations $ — $ (6 ) $ — $ 13 (Loss) income before income taxes — (6 ) — 13 Income tax expense — — — — (Loss) income from discontinued, operations, net of taxes $ — $ (6 ) $ — $ 13

Inventories (Tables)

Inventories (Tables)	9 Months Ended
	Feb. 28, 2017
Inventory Disclosure [Abstract]
Schedule of Inventories	Total inventories consist of the following: February 28, 2017 May 31, 2016 (Unaudited) (Dollars in thousands) Raw materials $ 8,880 $ 7,198 Work in process 4,033 3,447 Finished goods 706 736 $ 13,619 $ 11,381

Warranty (Tables)

Warranty (Tables)	9 Months Ended
	Feb. 28, 2017
Guarantees [Abstract]
Reconciliation of Accrued Warranty	A reconciliation of accrued warranty is as follows: Nine-Months Ended February 28, 2017 February 29, 2016 (Unaudited) (Unaudited) (Dollars in thousands) (Dollars in thousands) Balance at the beginning of the period $ 7,317 $ 6,911 Accruals for warranties 6,078 5,087 Settlements made during the period (5,209 ) (4,843 ) Balance at the end of the period 8,186 7,155 Non-current 2,500 2,400 Accrued warranty $ 5,686 $ 4,755

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	9 Months Ended
	Feb. 28, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Summary of Option Activity	The following tables summarize option activity for the nine months ended February 28, 2017 and February 29, 2016: Number Shares Weighted Weighted Aggregate (in Options outstanding at May 31, 2015 — $ Granted 225,000 3.28 Options outstanding at February 29, 2016 225,000 $ 3.28 9.39 $ 169 Options outstanding at May 31, 2016 225,000 $ 3.28 Granted 49,000 10.23 Options outstanding at February 28, 2017 274,000 $ 4.79 8.65 $ 1,988 Vested and exercisable options at February 28, 2017 45,000 $ 3.28 8.39 $ 395
Summary of Non-vested Options Activity	The weighted average grant-date fair value of options granted during the first nine months of fiscal 2017 and 2016 were $7.58 and $2.19, respectively. Number of Weighted Grant-Date Non-vested — $ — Granted 225,000 2.19 Vested — — Non-vested 225,000 $ 2.19 Non-vested 225,000 $ 2.19 Granted 49,000 7.58 Vested (45,000 ) 2.19 Non-vested 229,000 $ 3.34
Fair Value of Options Granted Estimated at Date of Grant Using Weighted Average Assumptions	The fair value of the options granted during the first nine months of fiscal 2017 and 2016 were estimated at the date of grant using the following weighted average assumptions: 2017 2016 Volatility 64.3 % 55.8 % Risk-free interest rate 2.14 % 2.22 % Expected option life in years 7.50 9.72 Dividend yield 0 % 0 %

Earnings Per Share (Tables)

Earnings Per Share (Tables)	9 Months Ended
	Feb. 28, 2017
Earnings Per Share [Abstract]
Computation of Basic and Diluted Earnings Per Share	The following table sets forth the computation of basic and diluted earnings per share (dollars in thousands, except per share amounts): Three-Months Ended Nine-Months Ended February 28, February 29, February 28, February 29, (Unaudited) (Unaudited) Net (loss) income $ (2,447 ) $ (520 ) $ (2,298 ) $ 352 Weighted average share outstanding: Basic 8,391,244 8,391,244 8,391,244 8,391,244 Common stock equivalents - treasury stock method — — — — Diluted 8,391,244 8,391,244 8,391,244 8,391,244 Net (loss) income per share: Basic $ (.29 ) $ (.06 ) $ (.27 ) $ .04 Diluted $ (.29 ) $ (.06 ) $ (.27 ) $ .04

Discontinued Operations - Resul

Discontinued Operations - Results of Discontinued Operations (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Feb. 28, 2017	Feb. 29, 2016	Feb. 28, 2017	Feb. 29, 2016
Discontinued Operations and Disposal Groups [Abstract]
Net Sales		$ 5		$ 71
Operating (loss) income of discontinued operations		(6)		13
(Loss) income before income taxes		(6)		13
Income tax expense	$ 0	0	$ 0	0
(Loss) income from discontinued, operations, net of taxes		$ (6)		$ 13

Inventories - Schedule of Inven

Inventories - Schedule of Inventories (Detail) - USD ($) $ in Thousands	Feb. 28, 2017	May 31, 2016
Inventory Disclosure [Abstract]
Raw materials	$ 8,880	$ 7,198
Work in process	4,033	3,447
Finished goods	706	736
Total inventories	$ 13,619	$ 11,381

Other Assets - Additional Infor

Other Assets - Additional Information (Detail) - USD ($)	Feb. 28, 2017	May 31, 2016
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Cash surrender value of life insurance	$ 6,944,000	$ 6,885,000

Warranty - Reconciliation of Ac

Warranty - Reconciliation of Accrued Warranty (Detail) - USD ($) $ in Thousands	9 Months Ended
	Feb. 28, 2017	Feb. 29, 2016	Feb. 28, 2017	May 31, 2016	Feb. 29, 2016
Guarantees [Abstract]
Balance at the beginning of the period	$ 7,317	$ 6,911
Accruals for warranties	6,078	5,087
Settlements made during the period	(5,209)	(4,843)
Balance at the end of the period	8,186	7,155
Accrued warranty	$ 8,186	$ 7,155	$ 8,186	$ 7,317	$ 7,155
Non-current balance			2,500	2,500	2,400
Accrued warranty			$ 5,686	$ 4,817	$ 4,755

Warranty - Additional Informati

Warranty - Additional Information (Detail) - USD ($)	Feb. 28, 2017	May 31, 2016	Feb. 29, 2016	May 31, 2015
Guarantor Obligations [Line Items]
Estimated warranty obligation	$ 8,186,000	$ 7,317,000	$ 7,155,000	$ 6,911,000
Discontinued Operations [Member]
Guarantor Obligations [Line Items]
Estimated warranty obligation	$ 115,000	$ 150,000

Life Insurance Loans - Addition

Life Insurance Loans - Additional Information (Detail) - Life Insurance Loans [Member]	9 Months Ended
	Feb. 28, 2017
Schedule Of Life Insurance Liabilities [Line Items]
Weighted Average Interest Rate	5.20%
Minimum [Member]
Schedule Of Life Insurance Liabilities [Line Items]
Interest Rate	4.20%
Maximum [Member]
Schedule Of Life Insurance Liabilities [Line Items]
Interest Rate	7.40%

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) $ in Millions	9 Months Ended
	Feb. 28, 2017USD ($)
Income Tax Contingency [Line Items]
Deferred tax assets	$ 49.8
Federal net operating loss and tax credit carryforwards	34.8
State net operating loss carryforwards	7.8
Differences between financial and tax reporting	$ 7.2
Minimum [Member] | Federal [Member]
Income Tax Contingency [Line Items]
Net operating loss and tax credit carryforwards life expectancy	11 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		9 Months Ended		12 Months Ended
	Feb. 28, 2017	Feb. 29, 2016	Feb. 28, 2017	Feb. 29, 2016	May 31, 2016
Loss Contingencies [Line Items]
Maximum potential repurchase liability	$ 27,000,000		$ 27,000,000		$ 25,000,000
Other accrued liabilities	100,000		100,000		$ 100,000
Obligations from units repurchased	$ 0	$ 0	$ 0	$ 0
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

Secured Revolving Credit Faci32

Secured Revolving Credit Facility - Additional Information (Detail) - USD ($)	Mar. 01, 2017	Mar. 20, 2015	Feb. 28, 2017	Feb. 28, 2017
Line of Credit Facility [Line Items]
Expected yearly net loss related to covenants			$ 1,750,000
Expected yearly net worth related to covenants			$ 23,383,000
Subsequent Event [Member]
Line of Credit Facility [Line Items]
Accommodation fee paid to First Business Capital	$ 50,000
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

Stock-Based Compensation - Addi

Stock-Based Compensation - Additional Information (Detail) - USD ($)	Jun. 25, 2015	Feb. 28, 2017	Feb. 29, 2016	Feb. 28, 2017	Feb. 29, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average grant-date fair value of options granted				$ 7.58	$ 2.19
Stock-based compensation expense		$ 39,000	$ 22,000	$ 101,000	$ 57,000
Unrecognized compensation expense related to stock options outstanding		680,000		$ 680,000
Unrecognized compensation expense, period for recognition				3 years 7 months 6 days
Expected dividend yield				0.00%	0.00%
Restricted stock shares issued				15,000
Restricted stock shares issued, value				$ 216,000
Stock-based compensation expense				$ 107,000	$ 57,000
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
Share based compensation,awards vesting period	10 years
2015 Stock Incentive Plan [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of restricted stock awards based on market price	100.00%
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share based compensation,awards vesting period				5 years
Unrecognized compensation expense related to stock options outstanding		$ 210,000		$ 210,000
Stock-based compensation expense				$ 6,000

Stock-Based Compensation - Summ

Stock-Based Compensation - Summary of Option Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands	9 Months Ended
	Feb. 28, 2017	Feb. 29, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Number of Shares, Options outstanding, Beginning balance	225,000
Number of Shares, Granted	49,000	225,000
Number of Shares, Options outstanding, Ending balance	274,000	225,000
Number of Shares, Vested and exercisable options	45,000
Weighted Average Exercise Price, Options outstanding, Beginning balance	$ 3.28	$ 0
Weighted Average Exercise Price, Granted	10.23	3.28
Weighted Average Exercise Price, Options outstanding, Ending balance	4.79	$ 3.28
Weighted Average Exercise Price, Vested and exercisable options	$ 3.28
Weighted Average Remaining Contractual Term, Options outstanding	8 years 7 months 24 days	9 years 4 months 21 days
Weighted Average Remaining Contractual Term, Vested and exercisable options	8 years 4 months 21 days
Aggregate Intrinsic Value, Options outstanding, Ending balance	$ 1,988	$ 169
Aggregate Intrinsic Value, Vested and exercisable options	$ 395

Stock-Based Compensation - Su35

Stock-Based Compensation - Summary of Non-vested Options Activity (Detail) - $ / shares	9 Months Ended
	Feb. 28, 2017	Feb. 29, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Number of Shares, Non-vested options, Beginning balance	225,000
Number of Shares, Granted	49,000	225,000
Number of Shares, Vested	(45,000)
Number of Shares, Non-vested options, Ending balance	229,000	225,000
Weighted Average Grant-Date Fair Value, Non-vested options, Beginning balance	$ 2.19
Weighted Average Grant-Date Fair Value, Granted	7.58	$ 2.19
Weighted Average Grant-Date Fair Value, Vested	2.19
Weighted Average Grant-Date Fair Value, Non-vested options, Ending balance	$ 3.34	$ 2.19

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. 28, 2017	Feb. 29, 2016
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract]
Volatility	64.30%	55.80%
Risk-free interest rate	2.14%	2.22%
Expected option life in years	7 years 6 months	9 years 8 months 19 days
Dividend yield	0.00%	0.00%

Earnings Per Share - Computatio

Earnings Per Share - Computation of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Feb. 28, 2017	Feb. 29, 2016	Feb. 28, 2017	Feb. 29, 2016
Earnings Per Share [Abstract]
Net (loss) income	$ (2,447)	$ (520)	$ (2,298)	$ 352
Weighted average share outstanding:
Basic	8,391,244	8,391,244	8,391,244	8,391,244
Common stock equivalents - treasury stock method	0	0	0	0
Diluted	8,391,244	8,391,244	8,391,244	8,391,244
Basic	$ (0.29)	$ (0.06)	$ (0.27)	$ 0.04
Diluted	$ (0.29)	$ (0.06)	$ (0.27)	$ 0.04

Earnings Per Share - Additional

Earnings Per Share - Additional Information (Detail) - shares	3 Months Ended		9 Months Ended
	Feb. 28, 2017	Feb. 29, 2016	Feb. 28, 2017	Feb. 29, 2016
Earnings Per Share [Abstract]
Anti-dilutive common stock equivalents excluded from the computation of diluted earnings per share	175,484	86,871	161,368	119,569

Restructuring Activities - Addi

Restructuring Activities - Additional Information (Detail)	Apr. 11, 2017USD ($)	May 31, 2017USD ($)	Feb. 28, 2017USD ($)	Feb. 24, 2017USD ($)ft²a
Restructuring Cost and Reserve [Line Items]
Liability related to restructuring			$ 0
Real Estate Purchase Agreement [Member]
Restructuring Cost and Reserve [Line Items]
sales proceeds held in cash collateral				$ 1,100,000
Champion Home Builders, Inc [Member] | Real Estate Purchase Agreement [Member]
Restructuring Cost and Reserve [Line Items]
Area of real estate property sold | ft²				79,000
Area of land | a				10
Subsequent Event [Member] | Real Estate Purchase Agreement [Member]
Restructuring Cost and Reserve [Line Items]
Proceeds from sale of facility	$ 2,212,000
Gain on sale of facility		$ 1,400,000
Discontinued Operations, Disposed of by Means Other than Sale [Member] | Texas [Member]
Restructuring Cost and Reserve [Line Items]
One time termination or contract costs to be recognized			$ 0

Subsequent Events - Additional

Subsequent Events - Additional Information (Detail)	3 Months Ended
	Feb. 28, 2017USD ($)
Discontinued Operations, Disposed of by Means Other than Sale [Member] | Indiana [Member]
Subsequent Event [Line Items]
One time termination or contract costs to be recognized	$ 0