10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

Quarterly Report Pursuant to Section 13 or 15 (d) of the Securities Exchange Act of 1934

For the quarterly period ended May 6, 2017

Commission File number 000-06506

NOBILITY HOMES, INC.

(Exact name of registrant as specified in its charter)

Florida	59-1166102
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

3741 S.W. 7th Street Ocala, Florida	34474
(Address of principal executive offices)	(Zip Code)

(352) 732-5157

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ☒ ;    No  ☐.

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  ☒ ;    No  ☐.

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐
		Smaller reporting company	☒
Non-accelerated filer	☐	Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.    ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).     Yes  ☐ ;     No  ☒.

Indicate the number of shares outstanding of each of the registrant’s classes of common stock, as of the latest practicable date.

Title of Class	Shares Outstanding on June 16, 2017
Common Stock	4,004,840

NOBILITY HOMES, INC.

INDEX

		Page Number
PART I.	Financial Information
Item 1.	Financial Statements (Unaudited)
	Consolidated Balance Sheets as of May 6, 2017 (Unaudited) and November 5, 2016		3
	Consolidated Statements of Comprehensive Income for the three and six months ended May 6, 2017 (Unaudited) and April 30, 2016 (Unaudited)		4
	Consolidated Statements of Cash Flows for the six months ended May 6, 2017 (Unaudited) and April 30, 2016 (Unaudited)		5
	Notes to Consolidated Financial Statements (Unaudited)		6
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		12
Item 4.	Controls and Procedures		15
PART II.	Other Information
Item 6.	Exhibits		16
Signatures			17

2

NOBILITY HOMES, INC.

Consolidated Balance Sheets

	May 6,			November 5,
	2017			2016
	(Unaudited)
Assets
Current assets:
Cash and cash equivalents	$	25,636,624		$	24,562,638
Short-term investments		609,649			481,025
Accounts receivable - trade		2,733,027			2,641,763
Note receivable		—			500,000
Mortgage notes receivable		12,822			9,717
Inventories		7,854,513			6,969,081
Pre-owned homes, net		1,421,517			1,295,694
Property held for sale		213,437			213,437
Prepaid expenses and other current assets		520,410			638,939
Deferred income taxes		493,559			556,773
Total current assets		39,495,558			37,869,067
Property, plant and equipment, net		4,170,090			4,063,711
Pre-owned homes, net		1,119,948			1,733,610
Interest receivable		78,413			48,376
Note receivable, less current portion		1,530,000			2,030,000
Mortgage notes receivable, less current portion		242,117			174,270
Other investments		1,424,217			1,367,496
Property held for sale		386,018			386,018
Cash surrender value of life insurance		3,205,917			3,085,916
Other assets		156,287			156,287
Total assets	$	51,808,565		$	50,914,751
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	809,675		$	835,279
Accrued compensation		606,669			682,815
Accrued expenses and other current liabilities		1,039,300			1,123,698
Income taxes payable		821,546			759,128
Customer deposits		1,681,219			1,706,795
Total current liabilities		4,958,409			5,107,715
Deferred income taxes		831,283			1,140,529
Total liabilities		5,789,692			6,248,244
Commitments and contingent liabilities
Stockholders’ equity:
Preferred stock, $.10 par value, 500,000 shares authorized; none issued and outstanding		—			—
Common stock, $.10 par value, 10,000,000 shares authorized; 5,364,907 shares issued		536,491			536,491
Additional paid in capital		10,668,349			10,663,348
Retained earnings		44,668,377			43,458,271
Accumulated other comprehensive income		394,795			266,171
Less treasury stock at cost, 1,360,067 shares in 2017 and 1,361,300 shares in 2016		(10,249,139	)		(10,257,774	)
Total stockholders’ equity		46,018,873			44,666,507
Total liabilities and stockholders’ equity	$	51,808,565		$	50,914,751

The accompanying notes are an integral part of these financial statements

3

NOBILITY HOMES, INC.

Consolidated Statements of Comprehensive Income

Unaudited

	Three Months Ended						Six Months Ended
	May 6,			April 30,			May 6,			April 30,
	2017			2016			2017			2016
Net sales	$	10,046,071		$	8,115,840		$	18,619,471		$	15,489,890
Cost of goods sold		(7,647,187	)		(6,150,272	)		(14,196,523	)		(11,767,887	)
Gross profit		2,398,884			1,965,568			4,422,948			3,722,003
Selling, general and administrative expenses		(1,122,286	)		(1,011,699	)		(2,089,873	)		(1,792,393	)
Operating income		1,276,598			953,869			2,333,075			1,929,610
Other income:
Interest income		31,357			22,044			71,804			34,091
Undistributed earnings in joint venture - Majestic 21		28,123			35,702			56,721			69,110
Proceeds received under escrow arrangement		225,956			788,566			225,956			788,566
Gain on sale of investment in retirement community		—			3,990,000			—			3,990,000
Miscellaneous		9,891			10,076			14,662			19,845
Total other income		295,327			4,846,388			369,143			4,901,612
Income before provision for income taxes		1,571,925			5,800,257			2,702,218			6,831,222
Income tax expense		(464,416	)		(2,128,376	)		(891,386	)		(2,480,940	)
Net income		1,107,509			3,671,881			1,810,832			4,350,282
Other comprehensive income (loss)
Unrealized investment gain (loss)		13,457			42,388			128,624			(27,251	)
Comprehensive income	$	1,120,966		$	3,714,269		$	1,939,456		$	4,323,031
Weighted average number of shares outstanding:
Basic		4,004,840			4,023,439			4,004,539			4,024,378
Diluted		4,006,047			4,024,181			4,005,793			4,025,069
Net income per share:
Basic	$	0.28		$	0.91		$	0.45		$	1.08
Diluted	$	0.28		$	0.91		$	0.45		$	1.08

The accompanying notes are an integral part of these financial statements

4

NOBILITY HOMES, INC.

Consolidated Statements of Cash Flows

(Unaudited)

	Six Months Ended
	May 6,			April 30,
	2017			2016
Cash flows from operating activities:
Net income	$	1,810,832		$	4,350,282
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		48,774			60,666
Deferred income taxes		(246,032	)		2,056,321
Undistributed earnings in joint venture - Majestic 21		(56,721	)		(69,110	)
Gain on sale of investment in retirement community		—			(3,990,000	)
Inventory impairment		173,000			86,583
Stock-based compensation		6,336			611
Decrease (increase) in:
Accounts receivable		(91,264	)		526,726
Inventories		(885,432	)		(819,580	)
Pre-owned homes		314,839			124,273
Income tax receivable		—			335
Prepaid expenses and other current assets		118,529			(213,206	)
Interest receivable		(30,037	)		(7,596	)
(Decrease) increase in:
Accounts payable		(25,604	)		(79,823	)
Accrued compensation		(76,146	)		(5,084	)
Accrued expenses and other current liabilities		(84,398	)		12,409
Income taxes payable		62,418			414,284
Customer deposits		(25,576	)		(63,630	)
Net cash provided by operating activities		1,013,974			2,384,461
Cash flows from investing activities:
Purchase of property, plant and equipment		(155,609	)		(750,000	)
Collections on note receivable		1,000,000			—
Distrbution from joint venture - Majestic 21		—			1,000,005
Proceeds from sale of investment in retirement community, net		—			960,000
Collections on mortgage notes receivable		354			2,045
Issuance of mortgage note receivable		(70,850	)		—
Increase in cash surrender value of life insurance		(120,001	)		(89,999	)
Net cash provided by investing activities		653,438			1,122,051
Cash flows from financing activities:
Payment of cash dividend		(600,726	)		—
Proceeds from exercise of employee stock options		7,300			30,370
Proceeds from sale of treasury stock		—			5,001
Purchase of treasury stock		—			(132,386	)
Net cash used in financing activities		(593,426	)		(97,015	)
Increase in cash and cash equivalents		1,073,986			3,409,497
Cash and cash equivalents at beginning of year		24,562,638			16,769,292
Cash and cash equivalents at end of quarter	$	25,636,624		$	20,178,789
Supplemental disclosure of cash flow information:
Income taxes paid	$	1,075,000		$	10,000
Note receivable acquired from sale of investment in retirement community	$	—		$	3,030,000

The accompanying notes are an integral part of these financial statements

5

Nobility Homes, Inc.

Notes to Consolidated Financial Statements

(Unaudited)

Note 1 Basis of Presentation and Accounting Policies

The accompanying unaudited consolidated financial statements as of and for the three and six months ended May 6, 2017 have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission for Form 10-Q. Accordingly, they do not include all the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements.

The unaudited financial information included in this report includes all adjustments (consisting of normal recurring adjustments) which are, in the opinion of management, necessary to reflect a fair statement of the results for the interim periods. The results of operations for the three and six months ended May 6, 2017 are not necessarily indicative of the results of the full fiscal year.

The condensed consolidated financial statements included in this report should be read in conjunction with the audited financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended November 5, 2016.

Recently Issued Accounting Pronouncements – In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-02, “Leases” (ASU 2016-02). The core principle of ASU 2016-02 is that an entity should recognize on its balance sheet assets and liabilities arising from a lease. In accordance with that principle, ASU 2016-02 requires that a lessee recognize a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying leased asset for the lease term. The recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee will depend on the lease classification as finance or operating lease. This new accounting guidance is effective for public companies for fiscal years beginning after December 15, 2018 (i.e., calendar years beginning on January 1, 2019), including interim periods within those fiscal years. Early adoption is permitted. The Company believes the implementation of this guidance will have no material impact on its consolidated financial statements.

In November 2015, the FASB issued ASU No. 2015-17 “Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes” (ASU 2015-17). ASU 2015-17 simplifies the presentation of deferred income taxes by eliminating the separate classification of deferred income tax liabilities and assets into current and noncurrent amounts in the consolidated balance sheet statement of financial position. The amendments in the update require that all deferred tax liabilities and assets be classified as noncurrent in the consolidated balance sheet. The amendments in this update are effective for annual periods beginning after December 15, 2016, and interim periods therein and may be applied either prospectively or retrospectively to all periods presented. Early adoption is permitted. The Company has not adopted ASU 2015-17 and believes the implementation of this guidance will have no material impact on its consolidated financial statements.

In July 2015, the FASB issued ASU No. 2015-11, “Inventory (Topic 330): Simplifying the Measurement of Inventory”. The amendments require an entity to measure in scope inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Subsequent measurement is unchanged for inventory measured using LIFO or the retail inventory method. The amendments do not apply to inventory that is measured using last-in, first-out (LIFO) or the retail inventory method. The amendments apply to all

6

other inventory, which includes inventory that is measured using first-in, first-out (FIFO) or average cost. The amendments in this update are effective for public companies for fiscal years beginning after December 15, 2016. The Company does not expect this amendment to have a material impact on its consolidated financial statements.

In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)”, which requires an entity to recognize revenue from the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance addresses, in particular, contracts with more than one performance obligation, as well as the accounting for some costs to obtain or fulfill a contract with a customer; and provides for additional disclosures with respect to revenues and cash flows arising from contracts with customers. In August 2015, the FASB issued ASU No. 2015-14 which deferred the effective date of ASU 2014-09 for all entities by one year. With respect to public entities, this update is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017 and early adoption is permitted for fiscal years beginning after December 15, 2016. The Company believes the implementation of this guidance will have no material impact on its consolidated financial statements.

Note 2 Inventories

New home inventory is carried at the lower of cost or market value. The cost of finished home inventories determined on the specific identification method is removed from inventories and recorded as a component of cost of sales at the time revenue is recognized. Under the specific identification method, if finished home inventory can be sold for a profit there is no basis to write down the inventory below the lower of cost or fair market value.

The Company acquired certain repossessed pre-owned inventory (Buy Back Inventory) in 2011 as part of an Amendment of the Finance Revenue Sharing Agreement (FRSA) agreement with 21^st Mortgage Corporation. This inventory is valued at the Company’s cost to acquire determined on the specific identification method, plus refurbishment costs (any item on the home that needs to be repaired or replaced) incurred to date to bring the inventory to a more saleable state. The Buy Back inventory amount is reduced where necessary on a unit specific basis by a valuation reserve which management believes results in inventory being valued at market.

Other pre-owned homes are acquired (Repossessions Inventory) as a convenience to the Company’s joint venture partner, 21st Mortgage Corporation. This inventory has been repossessed by 21^st Mortgage Corporation or through mortgage foreclosure. The Company acquired this inventory at the amount of the uncollected balance of the financing at the time of the foreclosure/repossessions by 21st Mortgage Corporation. The Company records this inventory at cost determined on the specific identification method. All of the refurbishment costs are paid by 21^st Mortgage Corporation. This arrangement assists 21^st Mortgage Corporation with liquidation of their repossessed inventory. The timing of these repurchases by the Company is unpredictable as it is based on the repossessions 21^st Mortgage Corporation incurs in the portfolio. When the home is sold, the Company retains the cost of the home, an interest factor on the cost of the home and a sales commission for the sale of the home, from the sales proceeds. Any additional proceeds are paid to 21^st Mortgage. Any shortfall from the proceeds to cover these amounts is paid by 21^st Mortgage to the Company. As the Company has no risk of loss on the sale, there is no valuation allowance necessary for this inventory.

Pre-owned homes are also taken as trade-ins on new home sales (Trade-in Inventory). This inventory is recorded at estimated actual wholesale value which is generally lower then market value, determined on the specific identification method, plus refurbishment costs incurred to date to bring the inventory to a more saleable state. The Trade-in inventory amount is reduced where necessary on a unit specific basis by a valuation reserve which management believes results in inventory being valued at market.

7

Other inventory costs are determined on a first-in, first-out basis.

A breakdown of the elements of inventory is as follows:

	May 6,			November 5,
	2017			2016
Raw materials	$	698,346		$	717,525
Work-in-process		100,171			120,693
Finished homes		6,932,168			6,025,268
Model home furniture and others		123,828			105,595
Inventories	$	7,854,513		$	6,969,081
Pre-owned homes	$	3,502,746		$	4,014,119
Inventory impairment reserve		(961,281	)		(984,815	)
		2,541,465			3,029,304
Less homes expected to sell in 12 months		(1,421,517	)		(1,295,694	)
Pre-owned homes, long-term	$	1,119,948		$	1,733,610

Note 3 Short-term Investments

The following is a summary of short-term investments (available for sale):

	May 6, 2017
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Equity securities in a public company	$	167,930	$	441,719	$	—	$	609,649

	November 5, 2016
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Equity securities in a public company	$	167,930	$	313,095	$	—	$	481,025

The fair values were estimated based on quoted market prices in active markets at each respective period end.

Note 4 Fair Value of Financial Instruments

The carrying amount of cash and cash equivalents, accounts and notes receivable, accounts payable and accrued expenses approximates fair value because of the short maturity of those instruments.

The Company accounts for the fair value of financial investments in accordance with FASB Accounting Standards Codification (ASC) No. 820 “Fair Value Measurements” (ASC 820).

8

ASC 820 defines fair value as the price that would be received upon the sale of an asset or paid to transfer a liability (i.e. exit price) in an orderly transaction between market participants at the measurement date. ASC 820 requires disclosures that categorize assets and liabilities measured at fair value into one of three different levels depending on the assumptions (i.e. inputs) used in the valuation. Financial assets and liabilities are classified in their entirety based on the lowest level of input significant to the fair value measurement. The ASC 820 fair value hierarchy is defined as follows:

• Level 1 - Valuations are based on unadjusted quoted prices in active markets for identical assets or liabilities.

• Level 2 - Valuations are based on quoted prices for similar assets or liabilities in active markets, or quoted prices in markets that are not active for which significant inputs are observable, either directly or indirectly.

• Level 3 - Valuations are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. Inputs reflect management’s best estimate of what market participants would use in valuing the asset or liability at the measurement date.

The following tables represent the Company’s financial assets and liabilities which are carried at fair value.

	May 6, 2017
	Level 1		Level 2		Level 3
Equity securities in a public company	$	609,649	$	—	$	—

	November 5, 2016
	Level 1		Level 2		Level 3
Equity securities in a public company	$	481,025	$	—	$	—

Note 5 Investment in Retirement Community Limited Partnership

The Company has a 31.3% limited partnership interest in Walden Woods South LLC (“Walden Woods”), which owns and operates a retirement community. The Company’s investment in Walden Woods is fully impaired at May 6, 2017 and November 5, 2016.

The following is summarized financial information of Walden Woods*:

	March 31,			September 30,
	2017			2016
Total Assets	$	3,304,060		$	3,747,081
Total Liabilities	$	5,660,780		$	5,902,402
Total Deficit	$	(2,356,720	)	$	(2,155,321	)

*Due to Walden Woods having a calendar year-end, the summarized financial information provided is from their most recent quarter prior to the period covered by this report.

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Note 6 Warranty Costs

The Company provides for a limited warranty as the manufactured homes are sold. Amounts related to these warranties are as follows:

	Three Months Ended						Six Months Ended
	May 6,			April 30,			May 6,			April 30,
	2017			2016			2017			2016
Beginning accrued warranty expense	$	125,000		$	100,000		$	125,000		$	100,000
Less: reduction for payments		(122,285	)		(156,905	)		(211,131	)		(300,373	)
Plus: additions to accrual		122,285			156,905			211,131			300,373
Ending accrued warranty expense	$	125,000		$	100,000		$	125,000		$	100,000

The Company’s limited warranty covers substantial defects in material or workmanship in specified components of the home including structural elements, plumbing systems, electrical systems, and heating and cooling systems which are supplied by the Company that may occur under normal use and service during a period of twelve (12) months from the date of delivery to the original homeowner, and applies to the original homeowner or any subsequent homeowner to whom this product is transferred during the duration of this twelve (12) month period.

The Company tracks the warranty claims per home. Based on the history of the warranty claims, the Company has determined that a majority of warranty claims usually occur within the first three months after the home is sold. The Company determines its warranty accrual using the last three months of home sales. Accrued warranty costs are included in accrued expenses in the accompanying consolidated balance sheets.

Note 7 Net Income per Share

These financial statements include “basic” and “diluted” net income per share information for all periods presented. The basic net income per share is calculated by dividing net income by the weighted-average number of shares outstanding. The diluted net income per share is calculated by dividing net income by the weighted-average number of shares outstanding, adjusted for dilutive common shares.

Note 8 Revenues by Products and Service

Revenues by net sales from manufactured housing, pre-owned homes and insurance agent commissions are as follows:

	Three Months Ended				Six Months Ended
	May 6,		April 30,		May 6,		April 30,
	2017		2016		2017		2016
Manufactured housing	$	9,763,293	$	7,634,460	$	17,783,910	$	14,849,800
Pre-owned homes		209,095		416,343		694,359		523,659
Insurance agent commissions		73,683		65,037		141,202		116,431
Total net sales	$	10,046,071	$	8,115,840	$	18,619,471	$	15,489,890

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Note 9 Commitments and Contingent Liabilities

Majestic 21 – On May 20, 2009, the Company became a 50% guarantor on a $5 million note payable entered into by Majestic 21, a joint venture in which the Company owns a 50% interest. 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 Corporation (our joint venture partner) 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 Corporation 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 May 6, 2017, the outstanding principal balance of the note was $725,985 and the amount of collateral held by our joint venture partner for the Majestic 21 note payable was $1,657,167. 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.

Note 10 Cash Dividend

On March 10, 2017 the Board of Directors declared a one-time cash dividend of $.15 per common share to stockholders of record as of March 27, 2017. The cash dividend was paid from our cash reserves on April 17, 2017 in the amount of $600,726.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Results of Operations

Total revenues in the second quarter of 2017 were $10,046,071 up 24% compared to $8,115,840 in the second quarter of 2016. Total net sales for the first six months of 2017 were $18,619,471 up 20% compared to $15,489,890 for the first six months of 2016.

The following table summarizes certain key sales statistics and percent of gross profit.

	Three Months Ended						Six Months Ended
	May 6,			April 30,			May 6,			April 30,
	2017			2016			2017			2016
New homes sold through Company owned sales centers		98			60			167			117
Pre-owned homes sold through Company owned sales centers:
Buy Back		2			5			6			6
Repossessions		1			1			4			1
Trade-Ins		2			1			3			2
Homes sold to independent dealers		54			59			125			132
Total new factory built homes produced		165			160			320			300
Average new manufactured home price - retail	$	73,261		$	68,636		$	73,917		$	69,525
Average new manufactured home price - wholesale	$	38,542		$	37,557		$	37,360		$	36,783
As a percent of net sales:
Gross profit from the Company owned retail sales centers		16	%		17	%		16	%		17	%
Gross profit from the manufacturing facilities - including intercompany sales		17	%		18	%		17	%		18	%

Sales to two publicly traded REITs and other companies which own multiple retirement communities in our market area accounted for approximately 11% and 22% of our sales for the first six months ended May 6, 2017 and April 30, 2016, respectively. Accounts receivable due from these customers were approximately $863,664 at May 6, 2017.

The demand for affordable manufactured housing in Florida and the U.S. continues to improve. According to the Florida Manufactured Housing Association, shipments in Florida for the period from February through April 2017 were up approximately 6% from the same period last year. Our sales and earnings continue to be affected by the lack of available retail and wholesale financing. Constrained consumer credit and the lack of lenders in the industry, partly as a result of an increase in government regulations, have limited many manufactured housing buyers from purchasing affordable manufactured homes.

We believe maintaining our strong financial position is vital for future growth and success. Because of the recent years of very challenging business conditions in our market area, management continues to evaluate all expenses and react in a manner consistent with maintaining our strong financial position, while exploring opportunities to expand our distribution and manufacturing operations.

Our many years of experience in the Florida market, combined with home buyers’ increased need for more affordable housing, should serve the Company well in the coming years. Management remains convinced that our specific geographic market is one of the best long-term growth areas in the country.

12

The Company has specialized for over 50 years in the design and production of quality, affordable manufactured homes at its plant located in central Florida. With multiple retail sales centers, an insurance agency subsidiary, and an investment in a retirement manufactured home community, we are the only vertically integrated manufactured home company headquartered in Florida.

Insurance agent commission revenues in the second quarter of 2017 were $73,683 compared to $65,037 in the second quarter of 2016. Total insurance agent commission revenues for the first six months of 2017 were $141,202 compared to $116,431 for the first six months of 2016. The insurance agent commissions resulted from new policies and renewals generated. The Company establishes appropriate reserves for policy cancellations based on numerous factors, including past transaction history with customers, historical experience and other information, which is periodically evaluated and adjusted as deemed necessary. In the opinion of management, no reserve was deemed necessary for policy cancellations at May 6, 2017 and November 5, 2016.

Gross profit as a percentage of net sales was 24% in second quarters of 2017 and 2016 as well as for the first six months of 2017 and 2016. The gross profit in second quarter of 2017 was $2,398,884 compared to $1,965,568 in the second quarter of 2016 and was $4,422,948 for the first six months of 2017 compared to $3,722,003 for the first six months of 2016. The gross profit is dependent on the sales mix of wholesale and retail homes and number of pre-owned homes sold. The increase in gross profit is primarily due to the increase in the overall number of homes sold.

Selling, general and administrative expenses as a percent of net sales was 11% in second quarter of 2017 compared to 12% in the second quarter of 2016 and was 11% for the first six months of 2017 compared to 12% for the first six months of 2016. Selling, general and administrative expenses in second quarter of 2017 was $1,122,286 compared to $1,011,699 in the second quarter of 2016 and was $2,089,873 for the first six months of 2017 compared to $1,792,393 for the first six months of 2016. The dollar increase in expenses resulted from the increase in compensation expenses directly related to our increased sales.

We earned interest of $31,357 for the second quarter of 2017 compared to $22,044 for the second quarter of 2016. For the first six months of 2017, interest earned was $71,804 compared to $34,091 in the first six months of 2016. The increase is primarily due to the accrued interest from the note receivable acquired in the sale of the investment in retirement community.

Our earnings from Majestic 21 in the second quarter of 2017 were $28,123 compared to $35,702, for the second quarter of 2016. Our earnings from Majestic 21 for the first six months of 2017 were $56,721 compared to $69,110 for the first six months of 2016. The earnings from Majestic 21 represent the allocation of profit and losses which are owned 50% by 21st Mortgage and 50% by the Company.

We received a $225,956 payment under an escrow arrangement related to the finance revenue sharing agreement between 21^st Mortgage Corporation and the Company in the second quarter of 2017.

The Company recorded an income tax expense in the amount of $464,416 in the second quarter of 2017 as compared to $2,128,376 in second quarter 2016. Income tax expense for the six months of 2017 was $891,386 compared to $2,480,940 for the second quarter of 2016.

We reported net income of $1,107,509 for the second quarter of 2017 or $0.28 per share, compared to $3,671,881 or $0.91 per share, for the second quarter of 2016. For the first six months of 2017 net income was $1,810,832 or $0.45 per share, compared to $4,350,282 or $1.08 per share, in the first six months of 2016.

13

Liquidity and Capital Resources

Cash and cash equivalents were $25,636,624 at May 6, 2017 compared to $24,562,638 at November 5, 2016. Short-term investments were $609,649 at May 6, 2017 compared to $481,025 at November 5, 2016. Working capital was $34,537,149 at May 6, 2017 as compared to $32,761,352 at November 5, 2016. We own the entire inventory for our Prestige retail sales centers which includes new, pre-owned and repossessed or foreclosed homes and do not incur any third party floor plan financing expenses. The Company has no material commitments for capital expenditures.

On March 10, 2017 the Board of Directors declared a one-time cash dividend of $.15 per common share to stockholders of record as of March 27, 2017. The cash dividend was paid from our cash reserves on April 17, 2017 in the amount of $600,726.

We view our liquidity as our total cash and short term investments. We currently have no line of credit facility and we do not believe that such a facility is currently necessary for our operations. We have no debt. We also have approximately $3 million of cash surrender value of life insurance which we could access as an additional source of liquidity though we have not currently viewed this to be necessary. As of May 6, 2017, the Company continued to report a strong balance sheet which included total assets of approximately $52 million and stockholders’ equity of approximately $46 million.

Critical Accounting Policies and Estimates

In Item 7 of our Form 10-K, under the heading “Critical Accounting Policies and Estimates,” we have provided a discussion of the critical accounting policies and estimates that management believes affect its more significant judgments and estimates used in the preparation of our Consolidated Financial Statements. No significant changes have occurred since that time.

Forward-Looking Statements

Certain statements in this report are forward-looking statements within the meaning of the federal securities laws. Although Nobility believes that the expectations reflected in such forward-looking statements are based on reasonable assumptions, there are risks and uncertainties that may cause actual results to differ materially from expectations. These risks and uncertainties include, but are not limited to, competitive pricing pressures at both the wholesale and retail levels, increasing material costs, uncertain economic conditions, changes in market demand, changes in interest rates, availability of financing for retail and wholesale purchasers, consumer confidence, adverse weather conditions that reduce sales at retail centers, the risk of manufacturing plant shutdowns due to storms or other factors, the impact of marketing and cost-management programs, reliance on the Florida economy, possible labor shortages, possible materials shortages, increasing labor cost, cyclical nature of the manufactured housing industry, impact of fuel costs, catastrophic events impacting insurance costs, availability of insurance coverage for various risks to Nobility, market demographics, management’s ability to attract and retain executive officers and key personnel, increased global tensions, market disruptions resulting from terrorist or other attack and any armed conflict involving the United States and the impact of inflation.

14

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures. The Company’s Chief Executive Officer (principal executive officer) and Chief Financial Officer (principal financial officer) have evaluated the effectiveness of the Company’s disclosure controls and procedures (as such term is defined in Rules 13a–15(e) and 15d–15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) as of the end of the period covered by this report (the “Evaluation Date”). Based on their evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that the Company’s disclosure controls and procedures were effective as of May 6, 2017.

Changes in Internal Control over Financial Reporting. There were no changes in our internal controls over financial reporting that occurred during the second quarter of fiscal 2017 that have materially affected, or are reasonably likely to materially affect, the Company’s internal controls over financial reporting.

15

Part II. OTHER INFORMATION AND SIGNATURES

There were no reportable events for Item 1 through Item 5.

Item 6. Exhibits

31. (a)	Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act and Rule 13a-14(a) or 15d-14(a) under the Securities Exchange Act of 1934
(b)	Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act and Rule 13a-14(a) or 15d-14(a) under the Securities Exchange Act of 1934
32. (a)	Written Statement of Chief Executive Officer Pursuant to 18 U.S.C. §1350
(b)	Written Statement of Chief Financial Officer Pursuant to 18 U.S.C. §1350
101.	Interactive data filing formatted in XBRL

16

Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	NOBILITY HOMES, INC.
DATE: June 16, 2017	By: /s/ Terry E. Trexler
	Terry E. Trexler, Chairman,
	President and Chief Executive Officer

DATE: June 16, 2017	By: /s/ Thomas W. Trexler
	Thomas W. Trexler, Executive Vice President,
	and Chief Financial Officer

DATE: June 16, 2017	By: /s/ Lynn J. Cramer, Jr.
	Lynn J. Cramer, Jr., Treasurer
	and Principal Accounting Officer

17

EX-31.A

Exhibit 31(a)

Certification of Chief Executive Officer

Pursuant to Section 302 of the Sarbanes-Oxley Act and Rule 13a-14(a)

or 15d-14(a) under the Securities Exchange Act of 1934

I, Terry E. Trexler, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Nobility Homes, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under their supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

DATE: June 16, 2017	By: /s/ Terry E. Trexler
	Terry E. Trexler, Chairman,
	President and Chief Executive Officer

EX-31.B

Exhibit 31(b)

Certification of Chief Financial Officer

Pursuant to Section 302 of the Sarbanes-Oxley Act and Rule 13a-14(a)

or 15d-14(a) under the Securities Exchange Act of 1934

I, Thomas W. Trexler, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Nobility Homes, Inc;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under their supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

DATE: June 16, 2017	By: /s/ Thomas W. Trexler
	Thomas W. Trexler, Executive Vice President,
	and Chief Financial Officer

EX-32.A

Exhibit 32(a)

Written Statement of the Chief Executive Officer

Pursuant to 18 U.S.C. §1350

Solely for the purposes of complying with 18 U.S.C. Section 1350, I, the undersigned Chairman and Chief Executive Officer of Nobility Homes, Inc. (the “Company”), hereby certify that:

1. The Quarterly Report on Form 10-Q of the Company for the quarter ended May 6, 2017 (the “Report”) fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

DATE: June 16, 2017	By: /s/ Terry E. Trexler
	Terry E. Trexler, Chairman,
	President and Chief Executive Officer

EX-32.B

Exhibit 32(b)

Written Statement of the Chief Financial Officer

Pursuant to 18 U.S.C. §1350

Solely for the purposes of complying with 18 U.S.C. Section 1350, I, the undersigned Executive Vice President and Chief Financial Officer of Nobility Homes, Inc. (the “Company”), hereby certify that:

1. The Quarterly Report on Form 10-Q of the Company for the quarter ended May 6, 2017 (the “Report”) fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

DATE: June 16, 2017	By: /s/ Thomas W. Trexler
	Thomas W. Trexler, Executive Vice President,
	and Chief Financial Officer

XML

Document and Entity Information - shares	6 Months Ended
	May 06, 2017	Jun. 16, 2017
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	May 06, 2017
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	Q2
Trading Symbol	NOBH
Entity Registrant Name	NOBILITY HOMES INC
Entity Central Index Key	0000072205
Current Fiscal Year End Date	--11-04
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		4,004,840

XML

Consolidated Balance Sheets - USD ($)	May 06, 2017	Nov. 05, 2016
Current assets:
Cash and cash equivalents	$ 25,636,624	$ 24,562,638
Short-term investments	609,649	481,025
Accounts receivable - trade	2,733,027	2,641,763
Note receivable		500,000
Mortgage notes receivable	12,822	9,717
Inventories	7,854,513	6,969,081
Pre-owned homes, net	1,421,517	1,295,694
Property held for sale	213,437	213,437
Prepaid expenses and other current assets	520,410	638,939
Deferred income taxes	493,559	556,773
Total current assets	39,495,558	37,869,067
Property, plant and equipment, net	4,170,090	4,063,711
Pre-owned homes, net	1,119,948	1,733,610
Interest receivable	78,413	48,376
Note receivable, less current portion	1,530,000	2,030,000
Mortgage notes receivable, less current portion	242,117	174,270
Other investments	1,424,217	1,367,496
Property held for sale	386,018	386,018
Cash surrender value of life insurance	3,205,917	3,085,916
Other assets	156,287	156,287
Total assets	51,808,565	50,914,751
Current liabilities:
Accounts payable	809,675	835,279
Accrued compensation	606,669	682,815
Accrued expenses and other current liabilities	1,039,300	1,123,698
Income taxes payable	821,546	759,128
Customer deposits	1,681,219	1,706,795
Total current liabilities	4,958,409	5,107,715
Deferred income taxes	831,283	1,140,529
Total liabilities	5,789,692	6,248,244
Commitments and contingent liabilities
Stockholders' equity:
Preferred stock, $.10 par value, 500,000 shares authorized; none issued and outstanding
Common stock, $.10 par value, 10,000,000 shares authorized; 5,364,907 shares issued	536,491	536,491
Additional paid in capital	10,668,349	10,663,348
Retained earnings	44,668,377	43,458,271
Accumulated other comprehensive income	394,795	266,171
Less treasury stock at cost, 1,360,067 shares in 2017 and 1,361,300 shares in 2016	(10,249,139)	(10,257,774)
Total stockholders' equity	46,018,873	44,666,507
Total liabilities and stockholders' equity	$ 51,808,565	$ 50,914,751

XML

Consolidated Balance Sheets (Parenthetical) - $ / shares	May 06, 2017	Nov. 05, 2016
Statement of Financial Position [Abstract]
Preferred stock, par value	$ 0.10	$ 0.10
Preferred stock, shares authorized	500,000	500,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.10	$ 0.10
Common stock, shares authorized	10,000,000	10,000,000
Common stock, shares issued	5,364,907	5,364,907
Treasury stock, shares	1,360,067	1,361,300

XML

Consolidated Statements of Comprehensive Income (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	May 06, 2017	Apr. 30, 2016	May 06, 2017	Apr. 30, 2016
Income Statement [Abstract]
Net sales	$ 10,046,071	$ 8,115,840	$ 18,619,471	$ 15,489,890
Cost of goods sold	(7,647,187)	(6,150,272)	(14,196,523)	(11,767,887)
Gross profit	2,398,884	1,965,568	4,422,948	3,722,003
Selling, general and administrative expenses	(1,122,286)	(1,011,699)	(2,089,873)	(1,792,393)
Operating income	1,276,598	953,869	2,333,075	1,929,610
Other income:
Interest income	31,357	22,044	71,804	34,091
Undistributed earnings in joint venture - Majestic 21	28,123	35,702	56,721	69,110
Proceeds received under escrow arrangement	225,956	788,566	225,956	788,566
Gain on sale of investment in retirement community		3,990,000		3,990,000
Miscellaneous	9,891	10,076	14,662	19,845
Total other income	295,327	4,846,388	369,143	4,901,612
Income before provision for income taxes	1,571,925	5,800,257	2,702,218	6,831,222
Income tax expense	(464,416)	(2,128,376)	(891,386)	(2,480,940)
Net income	1,107,509	3,671,881	1,810,832	4,350,282
Other comprehensive income (loss)
Unrealized investment gain (loss)	13,457	42,388	128,624	(27,251)
Comprehensive income	$ 1,120,966	$ 3,714,269	$ 1,939,456	$ 4,323,031
Weighted average number of shares outstanding:
Basic	4,004,840	4,023,439	4,004,539	4,024,378
Diluted	4,006,047	4,024,181	4,005,793	4,025,069
Net income per share:
Basic	$ 0.28	$ 0.91	$ 0.45	$ 1.08
Diluted	$ 0.28	$ 0.91	$ 0.45	$ 1.08

XML

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	May 06, 2017	Apr. 30, 2016
Cash flows from operating activities:
Net income	$ 1,810,832	$ 4,350,282
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	48,774	60,666
Deferred income taxes	(246,032)	2,056,321
Undistributed earnings in joint venture - Majestic 21	(56,721)	(69,110)
Gain on sale of investment in retirement community		(3,990,000)
Inventory impairment	173,000	86,583
Stock-based compensation	6,336	611
Decrease (increase) in:
Accounts receivable	(91,264)	526,726
Inventories	(885,432)	(819,580)
Pre-owned homes	314,839	124,273
Income tax receivable		335
Prepaid expenses and other current assets	118,529	(213,206)
Interest receivable	(30,037)	(7,596)
(Decrease) increase in:
Accounts payable	(25,604)	(79,823)
Accrued compensation	(76,146)	(5,084)
Accrued expenses and other current liabilities	(84,398)	12,409
Income taxes payable	62,418	414,284
Customer deposits	(25,576)	(63,630)
Net cash provided by operating activities	1,013,974	2,384,461
Cash flows from investing activities:
Purchase of property, plant and equipment	(155,609)	(750,000)
Collections on note receivable	1,000,000
Distrbution from joint venture - Majestic 21		1,000,005
Proceeds from sale of investment in retirement community, net		960,000
Collections on mortgage notes receivable	354	2,045
Issuance of mortgage note receivable	(70,850)
Increase in cash surrender value of life insurance	(120,001)	(89,999)
Net cash provided by investing activities	653,438	1,122,051
Cash flows from financing activities:
Payment of cash dividend	(600,726)
Proceeds from exercise of employee stock options	7,300	30,370
Proceeds from sale of treasury stock		5,001
Purchase of treasury stock		(132,386)
Net cash used in financing activities	(593,426)	(97,015)
Increase in cash and cash equivalents	1,073,986	3,409,497
Cash and cash equivalents at beginning of year	24,562,638	16,769,292
Cash and cash equivalents at end of quarter	25,636,624	20,178,789
Supplemental disclosure of cash flow information:
Income taxes paid	$ 1,075,000	10,000
Note receivable acquired from sale of investment in retirement community		$ 3,030,000

XML

Basis of Presentation and Accounting Policies

6 Months Ended

May 06, 2017

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation and Accounting Policies

Note 1 Basis of Presentation and Accounting Policies

The accompanying unaudited consolidated financial statements as of and for the three and six months ended May 6, 2017 have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission for Form 10-Q. Accordingly, they do not include all the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements.

The unaudited financial information included in this report includes all adjustments (consisting of normal recurring adjustments) which are, in the opinion of management, necessary to reflect a fair statement of the results for the interim periods. The results of operations for the three and six months ended May 6, 2017 are not necessarily indicative of the results of the full fiscal year.

The condensed consolidated financial statements included in this report should be read in conjunction with the audited financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended November 5, 2016.

Recently Issued Accounting Pronouncements – In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-02, “Leases” (ASU 2016-02). The core principle of ASU 2016-02 is that an entity should recognize on its balance sheet assets and liabilities arising from a lease. In accordance with that principle, ASU 2016-02 requires that a lessee recognize a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying leased asset for the lease term. The recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee will depend on the lease classification as finance or operating lease. This new accounting guidance is effective for public companies for fiscal years beginning after December 15, 2018 (i.e., calendar years beginning on January 1, 2019), including interim periods within those fiscal years. Early adoption is permitted. The Company believes the implementation of this guidance will have no material impact on its consolidated financial statements.

In November 2015, the FASB issued ASU No. 2015-17 “Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes” (ASU 2015-17). ASU 2015-17 simplifies the presentation of deferred income taxes by eliminating the separate classification of deferred income tax liabilities and assets into current and noncurrent amounts in the consolidated balance sheet statement of financial position. The amendments in the update require that all deferred tax liabilities and assets be classified as noncurrent in the consolidated balance sheet. The amendments in this update are effective for annual periods beginning after December 15, 2016, and interim periods therein and may be applied either prospectively or retrospectively to all periods presented. Early adoption is permitted. The Company has not adopted ASU 2015-17 and believes the implementation of this guidance will have no material impact on its consolidated financial statements.

In July 2015, the FASB issued ASU No. 2015-11, “Inventory (Topic 330): Simplifying the Measurement of Inventory”. The amendments require an entity to measure in scope inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Subsequent measurement is unchanged for inventory measured using LIFO or the retail inventory method. The amendments do not apply to inventory that is measured using last-in, first-out (LIFO) or the retail inventory method. The amendments apply to all other inventory, which includes inventory that is measured using first-in, first-out (FIFO) or average cost. The amendments in this update are effective for public companies for fiscal years beginning after December 15, 2016. The Company does not expect this amendment to have a material impact on its consolidated financial statements.

In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)”, which requires an entity to recognize revenue from the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance addresses, in particular, contracts with more than one performance obligation, as well as the accounting for some costs to obtain or fulfill a contract with a customer; and provides for additional disclosures with respect to revenues and cash flows arising from contracts with customers. In August 2015, the FASB issued ASU No. 2015-14 which deferred the effective date of ASU 2014-09 for all entities by one year. With respect to public entities, this update is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017 and early adoption is permitted for fiscal years beginning after December 15, 2016. The Company believes the implementation of this guidance will have no material impact on its consolidated financial statements.

XML

Inventories

6 Months Ended

May 06, 2017

Inventory Disclosure [Abstract]

Inventories

Note 2 Inventories

New home inventory is carried at the lower of cost or market value. The cost of finished home inventories determined on the specific identification method is removed from inventories and recorded as a component of cost of sales at the time revenue is recognized. Under the specific identification method, if finished home inventory can be sold for a profit there is no basis to write down the inventory below the lower of cost or fair market value.

The Company acquired certain repossessed pre-owned inventory (Buy Back Inventory) in 2011 as part of an Amendment of the Finance Revenue Sharing Agreement (FRSA) agreement with 21^st Mortgage Corporation. This inventory is valued at the Company’s cost to acquire determined on the specific identification method, plus refurbishment costs (any item on the home that needs to be repaired or replaced) incurred to date to bring the inventory to a more saleable state. The Buy Back inventory amount is reduced where necessary on a unit specific basis by a valuation reserve which management believes results in inventory being valued at market.

Other pre-owned homes are acquired (Repossessions Inventory) as a convenience to the Company’s joint venture partner, 21st Mortgage Corporation. This inventory has been repossessed by 21^st Mortgage Corporation or through mortgage foreclosure. The Company acquired this inventory at the amount of the uncollected balance of the financing at the time of the foreclosure/repossessions by 21st Mortgage Corporation. The Company records this inventory at cost determined on the specific identification method. All of the refurbishment costs are paid by 21^st Mortgage Corporation. This arrangement assists 21^st Mortgage Corporation with liquidation of their repossessed inventory. The timing of these repurchases by the Company is unpredictable as it is based on the repossessions 21^st Mortgage Corporation incurs in the portfolio. When the home is sold, the Company retains the cost of the home, an interest factor on the cost of the home and a sales commission for the sale of the home, from the sales proceeds. Any additional proceeds are paid to 21^st Mortgage. Any shortfall from the proceeds to cover these amounts is paid by 21^st Mortgage to the Company. As the Company has no risk of loss on the sale, there is no valuation allowance necessary for this inventory.

Pre-owned homes are also taken as trade-ins on new home sales (Trade-in Inventory). This inventory is recorded at estimated actual wholesale value which is generally lower then market value, determined on the specific identification method, plus refurbishment costs incurred to date to bring the inventory to a more saleable state. The Trade-in inventory amount is reduced where necessary on a unit specific basis by a valuation reserve which management believes results in inventory being valued at market.

Other inventory costs are determined on a first-in, first-out basis.

A breakdown of the elements of inventory is as follows:

	May 6,			November 5,
	2017			2016
Raw materials	$	698,346		$	717,525
Work-in-process		100,171			120,693
Finished homes		6,932,168			6,025,268
Model home furniture and others		123,828			105,595
Inventories	$	7,854,513		$	6,969,081
Pre-owned homes	$	3,502,746		$	4,014,119
Inventory impairment reserve		(961,281	)		(984,815	)
		2,541,465			3,029,304
Less homes expected to sell in 12 months		(1,421,517	)		(1,295,694	)
Pre-owned homes, long-term	$	1,119,948		$	1,733,610

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Short-term Investments

6 Months Ended

May 06, 2017

Investments, Debt and Equity Securities [Abstract]

Short-term Investments

Note 3 Short-term Investments

The following is a summary of short-term investments (available for sale):

	May 6, 2017
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Equity securities in a public company	$	167,930	$	441,719	$	—	$	609,649

	November 5, 2016
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Equity securities in a public company	$	167,930	$	313,095	$	—	$	481,025

The fair values were estimated based on quoted market prices in active markets at each respective period end.

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Fair Value of Financial Instruments

6 Months Ended

May 06, 2017

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments

Note 4 Fair Value of Financial Instruments

The carrying amount of cash and cash equivalents, accounts and notes receivable, accounts payable and accrued expenses approximates fair value because of the short maturity of those instruments.

The Company accounts for the fair value of financial investments in accordance with FASB Accounting Standards Codification (ASC) No. 820 “Fair Value Measurements” (ASC 820).

ASC 820 defines fair value as the price that would be received upon the sale of an asset or paid to transfer a liability (i.e. exit price) in an orderly transaction between market participants at the measurement date. ASC 820 requires disclosures that categorize assets and liabilities measured at fair value into one of three different levels depending on the assumptions (i.e. inputs) used in the valuation. Financial assets and liabilities are classified in their entirety based on the lowest level of input significant to the fair value measurement. The ASC 820 fair value hierarchy is defined as follows:

• Level 1 - Valuations are based on unadjusted quoted prices in active markets for identical assets or liabilities.

• Level 2 - Valuations are based on quoted prices for similar assets or liabilities in active markets, or quoted prices in markets that are not active for which significant inputs are observable, either directly or indirectly.

• Level 3 - Valuations are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. Inputs reflect management’s best estimate of what market participants would use in valuing the asset or liability at the measurement date.

The following tables represent the Company’s financial assets and liabilities which are carried at fair value.

	May 6, 2017
	Level 1		Level 2		Level 3
Equity securities in a public company	$	609,649	$	—	$	—

	November 5, 2016
	Level 1		Level 2		Level 3
Equity securities in a public company	$	481,025	$	—	$	—

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Investment in Retirement Community Limited Partnership

6 Months Ended

May 06, 2017

Equity Method Investments and Joint Ventures [Abstract]

Investment in Retirement Community Limited Partnership

Note 5 Investment in Retirement Community Limited Partnership

The Company has a 31.3% limited partnership interest in Walden Woods South LLC (“Walden Woods”), which owns and operates a retirement community. The Company’s investment in Walden Woods is fully impaired at May 6, 2017 and November 5, 2016.

The following is summarized financial information of Walden Woods*:

	March 31,			September 30,
	2017			2016
Total Assets	$	3,304,060		$	3,747,081
Total Liabilities	$	5,660,780		$	5,902,402
Total Deficit	$	(2,356,720	)	$	(2,155,321	)

*Due to Walden Woods having a calendar year-end, the summarized financial information provided is from their most recent quarter prior to the period covered by this report.

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Warranty Costs

6 Months Ended

May 06, 2017

Guarantees [Abstract]

Warranty Costs

Note 6 Warranty Costs

The Company provides for a limited warranty as the manufactured homes are sold. Amounts related to these warranties are as follows:

	Three Months Ended						Six Months Ended
	May 6,			April 30,			May 6,			April 30,
	2017			2016			2017			2016
Beginning accrued warranty expense	$	125,000		$	100,000		$	125,000		$	100,000
Less: reduction for payments		(122,285	)		(156,905	)		(211,131	)		(300,373	)
Plus: additions to accrual		122,285			156,905			211,131			300,373
Ending accrued warranty expense	$	125,000		$	100,000		$	125,000		$	100,000

The Company’s limited warranty covers substantial defects in material or workmanship in specified components of the home including structural elements, plumbing systems, electrical systems, and heating and cooling systems which are supplied by the Company that may occur under normal use and service during a period of twelve (12) months from the date of delivery to the original homeowner, and applies to the original homeowner or any subsequent homeowner to whom this product is transferred during the duration of this twelve (12) month period.

The Company tracks the warranty claims per home. Based on the history of the warranty claims, the Company has determined that a majority of warranty claims usually occur within the first three months after the home is sold. The Company determines its warranty accrual using the last three months of home sales. Accrued warranty costs are included in accrued expenses in the accompanying consolidated balance sheets.

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Net Income per Share

6 Months Ended

May 06, 2017

Earnings Per Share [Abstract]

Net Income per Share

Note 7 Net Income per Share

These financial statements include “basic” and “diluted” net income per share information for all periods presented. The basic net income per share is calculated by dividing net income by the weighted-average number of shares outstanding. The diluted net income per share is calculated by dividing net income by the weighted-average number of shares outstanding, adjusted for dilutive common shares.

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Revenues by Products and Service

6 Months Ended

May 06, 2017

Segment Reporting [Abstract]

Revenues by Products and Service

Note 8 Revenues by Products and Service

Revenues by net sales from manufactured housing, pre-owned homes and insurance agent commissions are as follows:

	Three Months Ended				Six Months Ended
	May 6,		April 30,		May 6,		April 30,
	2017		2016		2017		2016
Manufactured housing	$	9,763,293	$	7,634,460	$	17,783,910	$	14,849,800
Pre-owned homes		209,095		416,343		694,359		523,659
Insurance agent commissions		73,683		65,037		141,202		116,431
Total net sales	$	10,046,071	$	8,115,840	$	18,619,471	$	15,489,890

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Commitments and Contingent Liabilities

6 Months Ended

May 06, 2017

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingent Liabilities

Note 9 Commitments and Contingent Liabilities

Majestic 21 – On May 20, 2009, the Company became a 50% guarantor on a $5 million note payable entered into by Majestic 21, a joint venture in which the Company owns a 50% interest. 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 Corporation (our joint venture partner) 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 Corporation 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 May 6, 2017, the outstanding principal balance of the note was $725,985 and the amount of collateral held by our joint venture partner for the Majestic 21 note payable was $1,657,167. 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.

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Cash Dividend

6 Months Ended

May 06, 2017

Text Block [Abstract]

Cash Dividend

Note 10 Cash Dividend

On March 10, 2017 the Board of Directors declared a one-time cash dividend of $.15 per common share to stockholders of record as of March 27, 2017. The cash dividend was paid from our cash reserves on April 17, 2017 in the amount of $600,726.

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Basis of Presentation and Accounting Policies (Policies)

6 Months Ended

May 06, 2017

Fair Value Disclosures [Abstract]

Recently Issued Accounting Pronouncements

Recently Issued Accounting Pronouncements – In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-02, “Leases” (ASU 2016-02). The core principle of ASU 2016-02 is that an entity should recognize on its balance sheet assets and liabilities arising from a lease. In accordance with that principle, ASU 2016-02 requires that a lessee recognize a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying leased asset for the lease term. The recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee will depend on the lease classification as finance or operating lease. This new accounting guidance is effective for public companies for fiscal years beginning after December 15, 2018 (i.e., calendar years beginning on January 1, 2019), including interim periods within those fiscal years. Early adoption is permitted. The Company believes the implementation of this guidance will have no material impact on its consolidated financial statements.

In November 2015, the FASB issued ASU No. 2015-17 “Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes” (ASU 2015-17). ASU 2015-17 simplifies the presentation of deferred income taxes by eliminating the separate classification of deferred income tax liabilities and assets into current and noncurrent amounts in the consolidated balance sheet statement of financial position. The amendments in the update require that all deferred tax liabilities and assets be classified as noncurrent in the consolidated balance sheet. The amendments in this update are effective for annual periods beginning after December 15, 2016, and interim periods therein and may be applied either prospectively or retrospectively to all periods presented. Early adoption is permitted. The Company has not adopted ASU 2015-17 and believes the implementation of this guidance will have no material impact on its consolidated financial statements.

In July 2015, the FASB issued ASU No. 2015-11, “Inventory (Topic 330): Simplifying the Measurement of Inventory”. The amendments require an entity to measure in scope inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Subsequent measurement is unchanged for inventory measured using LIFO or the retail inventory method. The amendments do not apply to inventory that is measured using last-in, first-out (LIFO) or the retail inventory method. The amendments apply to all other inventory, which includes inventory that is measured using first-in, first-out (FIFO) or average cost. The amendments in this update are effective for public companies for fiscal years beginning after December 15, 2016. The Company does not expect this amendment to have a material impact on its consolidated financial statements.

In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)”, which requires an entity to recognize revenue from the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance addresses, in particular, contracts with more than one performance obligation, as well as the accounting for some costs to obtain or fulfill a contract with a customer; and provides for additional disclosures with respect to revenues and cash flows arising from contracts with customers. In August 2015, the FASB issued ASU No. 2015-14 which deferred the effective date of ASU 2014-09 for all entities by one year. With respect to public entities, this update is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017 and early adoption is permitted for fiscal years beginning after December 15, 2016. The Company believes the implementation of this guidance will have no material impact on its consolidated financial statements.

Fair Value Measurements

The Company accounts for the fair value of financial investments in accordance with FASB Accounting Standards Codification (ASC) No. 820 “Fair Value Measurements” (ASC 820).

ASC 820 defines fair value as the price that would be received upon the sale of an asset or paid to transfer a liability (i.e. exit price) in an orderly transaction between market participants at the measurement date. ASC 820 requires disclosures that categorize assets and liabilities measured at fair value into one of three different levels depending on the assumptions (i.e. inputs) used in the valuation. Financial assets and liabilities are classified in their entirety based on the lowest level of input significant to the fair value measurement. The ASC 820 fair value hierarchy is defined as follows:

• Level 1 - Valuations are based on unadjusted quoted prices in active markets for identical assets or liabilities.

• Level 2 - Valuations are based on quoted prices for similar assets or liabilities in active markets, or quoted prices in markets that are not active for which significant inputs are observable, either directly or indirectly.

• Level 3 - Valuations are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. Inputs reflect management’s best estimate of what market participants would use in valuing the asset or liability at the measurement date.

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Inventories (Tables)

6 Months Ended

May 06, 2017

Inventory Disclosure [Abstract]

Summary of Breakdown of Elements of Inventory

A breakdown of the elements of inventory is as follows:

	May 6,			November 5,
	2017			2016
Raw materials	$	698,346		$	717,525
Work-in-process		100,171			120,693
Finished homes		6,932,168			6,025,268
Model home furniture and others		123,828			105,595
Inventories	$	7,854,513		$	6,969,081
Pre-owned homes	$	3,502,746		$	4,014,119
Inventory impairment reserve		(961,281	)		(984,815	)
		2,541,465			3,029,304
Less homes expected to sell in 12 months		(1,421,517	)		(1,295,694	)
Pre-owned homes, long-term	$	1,119,948		$	1,733,610

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Short-term Investments (Tables)

6 Months Ended

May 06, 2017

Investments, Debt and Equity Securities [Abstract]

Summary of Short-term Investments

The following is a summary of short-term investments (available for sale):

	May 6, 2017
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Equity securities in a public company	$	167,930	$	441,719	$	—	$	609,649

	November 5, 2016
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Equity securities in a public company	$	167,930	$	313,095	$	—	$	481,025

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Fair Value of Financial Instruments (Tables)

6 Months Ended

May 06, 2017

Fair Value Disclosures [Abstract]

Summary of Assets and Liabilities Measured at Fair Value

The following tables represent the Company’s financial assets and liabilities which are carried at fair value.

	May 6, 2017
	Level 1		Level 2		Level 3
Equity securities in a public company	$	609,649	$	—	$	—

	November 5, 2016
	Level 1		Level 2		Level 3
Equity securities in a public company	$	481,025	$	—	$	—

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Investment in Retirement Community Limited Partnership (Tables)

6 Months Ended

May 06, 2017

Walden Woods South LLC [Member]

Summarized Financial Information

The following is summarized financial information of Walden Woods*:

	March 31,			September 30,
	2017			2016
Total Assets	$	3,304,060		$	3,747,081
Total Liabilities	$	5,660,780		$	5,902,402
Total Deficit	$	(2,356,720	)	$	(2,155,321	)

*Due to Walden Woods having a calendar year-end, the summarized financial information provided is from their most recent quarter prior to the period covered by this report.

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Warranty Costs (Tables)

6 Months Ended

May 06, 2017

Guarantees [Abstract]

Summary of Amounts Related to Limited Warranty

Amounts related to these warranties are as follows:

	Three Months Ended						Six Months Ended
	May 6,			April 30,			May 6,			April 30,
	2017			2016			2017			2016
Beginning accrued warranty expense	$	125,000		$	100,000		$	125,000		$	100,000
Less: reduction for payments		(122,285	)		(156,905	)		(211,131	)		(300,373	)
Plus: additions to accrual		122,285			156,905			211,131			300,373
Ending accrued warranty expense	$	125,000		$	100,000		$	125,000		$	100,000

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Revenues by Products and Service (Tables)

6 Months Ended

May 06, 2017

Segment Reporting [Abstract]

Revenues by Net Sales

Revenues by net sales from manufactured housing, pre-owned homes and insurance agent commissions are as follows:

	Three Months Ended				Six Months Ended
	May 6,		April 30,		May 6,		April 30,
	2017		2016		2017		2016
Manufactured housing	$	9,763,293	$	7,634,460	$	17,783,910	$	14,849,800
Pre-owned homes		209,095		416,343		694,359		523,659
Insurance agent commissions		73,683		65,037		141,202		116,431
Total net sales	$	10,046,071	$	8,115,840	$	18,619,471	$	15,489,890

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Inventories - Summary of Breakdown of Elements of Inventory (Detail) - USD ($)	May 06, 2017	Nov. 05, 2016
Inventory Disclosure [Abstract]
Raw materials	$ 698,346	$ 717,525
Work-in-process	100,171	120,693
Finished homes	6,932,168	6,025,268
Model home furniture and others	123,828	105,595
Inventories	7,854,513	6,969,081
Pre-owned homes	3,502,746	4,014,119
Inventory impairment reserve	(961,281)	(984,815)
Pre-owned homes, net	2,541,465	3,029,304
Pre-owned homes, net	2,541,465	3,029,304
Less homes expected to sell in 12 months	(1,421,517)	(1,295,694)
Pre-owned homes, long-term	$ 1,119,948	$ 1,733,610

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Short-term Investments - Summary of Short-term Investments (Detail) - USD ($)	May 06, 2017	Nov. 05, 2016
Investments, Debt and Equity Securities [Abstract]
Available-for-sale Securities, Amortized Cost	$ 167,930	$ 167,930
Available-for-sale Securities, Gross Unrealized Gains	441,719	313,095
Available-for-sale Securities, Gross Unrealized Losses	0	0
Available-for-sale Securities, Estimated Fair Value	$ 609,649	$ 481,025

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Fair Values of Financial Investments - Summary of Assets and Liabilities Measured at Fair Value on a Recurring Basis (Detail) - USD ($)	May 06, 2017	Nov. 05, 2016
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Equity securities in a public company	$ 609,649	$ 481,025
Level 1 [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Equity securities in a public company	$ 609,649	$ 481,025

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Investment in Retirement Community Limited Partnerships - Additional Information (Detail)	May 06, 2017
Walden Woods South LLC [Member]
Investments [Line Items]
Percentage of limited partnership ownership interest	31.30%

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Investment in Retirement Community Limited Partnership - Summarized Financial Information of Walden Woods (Detail) - Walden Woods South LLC [Member] - USD ($)	Mar. 31, 2017	Sep. 30, 2016
Schedule of Equity Method Investments [Line Items]
Total Assets	$ 3,304,060	$ 3,747,081
Total Liabilities	5,660,780	5,902,402
Total Deficit	$ (2,356,720)	$ (2,155,321)

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Warranty Costs - Summary of Amounts Related to Limited Warranty (Detail) - USD ($)	3 Months Ended		6 Months Ended
	May 06, 2017	Apr. 30, 2016	May 06, 2017	Apr. 30, 2016
Accounting Policies [Abstract]
Beginning accrued warranty expense	$ 125,000	$ 100,000	$ 125,000	$ 100,000
Less: reduction for payments	(122,285)	(156,905)	(211,131)	(300,373)
Plus: additions to accrual	122,285	156,905	211,131	300,373
Ending accrued warranty expense	$ 125,000	$ 100,000	$ 125,000	$ 100,000

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Warranty Costs - Additional Information (Detail)	6 Months Ended
	May 06, 2017
Accounting Policies [Abstract]
Warranty period of homes	12 months

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Revenues by Products and Service - Revenues by Net Sales (Detail) - USD ($)	3 Months Ended		6 Months Ended
	May 06, 2017	Apr. 30, 2016	May 06, 2017	Apr. 30, 2016
Sales Information [Line Items]
Total net sales	$ 10,046,071	$ 8,115,840	$ 18,619,471	$ 15,489,890
Manufactured Housing [Member]
Sales Information [Line Items]
Total net sales	9,763,293	7,634,460	17,783,910	14,849,800
Pre-Owned Homes [Member]
Sales Information [Line Items]
Total net sales	209,095	416,343	694,359	523,659
Insurance Agent Commissions [Member]
Sales Information [Line Items]
Total net sales	$ 73,683	$ 65,037	$ 141,202	$ 116,431

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Commitments and Contingent Liabilities - Additional Information (Detail)	6 Months Ended
	May 06, 2017 USD ($)
Commitments And Contingencies [Line Items]
Percentage of joint venture loan guaranteed by company	50.00%
Guarantee obligations note payable principal amount	$ 5,000,000
Guarantee obligations maximum limit of note payable principal amount for maturity	$ 750,000
Guarantee obligations principal balance of pool of loans percentage	80.00%
Percentage of collateral value for pool of loan securing note	100.00%
Guarantee obligations outstanding note payable principal amount	$ 725,985
Collateral value for pool of loan securing note payable by joint venture	$ 1,657,167
Majestic 21 [Member]
Commitments And Contingencies [Line Items]
Percentage of ownership interest	50.00%

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Cash Dividend - Additional Information (Detail) - USD ($)		6 Months Ended
	Mar. 10, 2017	May 06, 2017
Dividends [Abstract]
Dividend declaration date	Mar. 10, 2017
Dividend declared	$ 0.15
Payment of dividend	$ 600,726	$ 600,726
Dividend payable date	Apr. 17, 2017
Dividend record date	Mar. 27, 2017