Revenues by Products and Service

9 Months Ended

Aug. 03, 2013

Segment Reporting [Abstract]

Revenues by Products and Service

Note 8 Revenues by Products and Service

Revenues by net sales from manufactured housing, insurance agent commissions and construction lending operations are as follows:

	Three Months Ended				Nine Months Ended
	August 3, 2013		August 4, 2012		August 3, 2013		August 4, 2012
Manufactured housing	$	3,751,433	$	2,799,928	$	9,777,737	$	9,001,467
Pre-owned homes-FRSA		685,222		819,448		1,373,418		1,906,725
Trade in and other pre-owned homes		261,643		158,677		645,362		357,695
Insurance agent commissions		49,566		43,249		152,926		155,179
Construction lending operations		10,592		7,098		24,299		25,736
Total net sales	$	4,758,456	$	3,828,400	$	11,973,742	$	11,446,802

Majestic 21 – The Company has a 50% interest in Majestic 21, a joint venture with an unrelated entity (21^st Mortgage Corporation) (“21^st Mortgage”). The Company is a 50% guarantor on a $5 million note payable entered into by Majestic 21. This guarantee was a requirement of the bank that provided the $5 million loan to Majestic 21. The $5 million guarantee of Majestic 21’s debt is for the life of the note which matures on the earlier of May 31, 2019 or when the principal balance is less than $750,000. The amount of the guarantee declines with the amortization and repayment of the loan. As collateral for the loan, 21^st Mortgage has granted the lender a security interest in a pool of loans encumbering homes sold by Prestige Homes Centers, Inc. If the pool of loans securing this note should decrease in value so that the notes outstanding principal balance is in excess of 80% of the principal balance of the pool of loans, then Majestic 21 would have to pay down the note’s principal balance to an amount that is no more than 80% of the principal balance of the pool of loans. The Company and 21^st Mortgage are obligated jointly to contribute the amount necessary to bring the loan balance back down to 80% of the collateral provided. We do not anticipate any required contributions as the pool of loans securing the note have historically been in excess of 100% of the collateral value. As of August 3, 2013, the outstanding principal balance of the note was $2,138,500 and the amount of collateral was $2,827,525. Based upon management’s analysis, the fair value of the guarantee is not material and as a result, no liability for the guarantee has been recorded in the accompanying balance sheets of the Company.