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 August 3, 2013

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  x;    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  x;    No  ¨.

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

Large accelerated filer	¨	Accelerated filer	¨
Non-accelerated filer	¨	Smaller reporting company	x

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

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 September 9, 2013
Common Stock	4,057,053

NOBILITY HOMES, INC.

INDEX

			Page Number
PART I.		Financial Information
	Item 1.	Financial Statements (Unaudited)
		Consolidated Balance Sheets as of August 3, 2013 (Unaudited) and November 3, 2012		3
		Consolidated Statements of Comprehensive Income (Loss) for the three and nine months ended August  3, 2013 and August 4, 2012 (Unaudited)		4
		Consolidated Statements of Cash Flows for the nine months ended August 3, 2013 and August  4, 2012 (Unaudited)		5
		Notes to Consolidated Financial Statements		6
	Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		11
	Item 4.	Controls and Procedures		14
PART II.		Other Information
	Item 6.	Exhibits		15
Signatures				16

2

NOBILITY HOMES, INC.

Consolidated Balance Sheets

	August 3, 2013			November 3, 2012
	(Unaudited)
Assets
Current assets:
Cash and cash equivalents	$	9,855,173		$	7,352,480
Short-term investments		462,073			320,946
Accounts and notes receivable		1,309,003			2,850,276
Mortgage notes receivable, current		3,841			3,483
Inventories		5,242,583			5,781,880
Pre-owned homes, current		2,037,428			2,503,164
Prepaid expenses and other current assets		788,612			480,055
Deferred income taxes		572,849			679,745
Total current assets		20,271,562			19,972,029
Property, plant and equipment, net		3,714,523			3,801,552
Pre-owned homes		4,869,813			4,430,833
Mortgage notes receivable, long term		184,461			186,516
Income tax receivable		248,164			248,164
Other investments		2,973,219			3,106,970
Deferred income taxes		1,344,151			1,237,255
Other assets		2,771,906			2,687,540
Total assets	$	36,377,799		$	35,670,859
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	251,877		$	404,546
Accrued compensation		112,540			112,372
Accrued expenses and other current liabilities		617,542			514,520
Customer deposits		876,505			350,677
Total current liabilities		1,858,464			1,382,115
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		10,628,681			10,618,542
Retained earnings		32,652,003			32,572,678
Accumulated other comprehensive income		247,217			106,090
Less treasury stock at cost, 1,307,854 shares in 2013 and 2012		(9,545,057	)		(9,545,057	)
Total stockholders’ equity		34,519,335			34,288,744
Total liabilities and stockholders’ equity	$	36,377,799		$	35,670,859

The accompanying notes are an integral part of these financial statements

3

NOBILITY HOMES, INC.

Consolidated Statements of Comprehensive Income (Loss)

(Unaudited)

	Three Months Ended						Nine Months Ended
	August 3, 2013			August 4, 2012			August 3, 2013			August 4, 2012
Net sales	$	4,758,456		$	3,828,400		$	11,973,742		$	11,446,802
Cost of goods sold		(3,854,816	)		(3,314,488	)		(9,946,333	)		(9,553,196	)
Gross profit		903,640			513,912			2,027,409			1,893,606
Selling, general and administrative expenses		(748,700	)		(628,517	)		(1,928,218	)		(1,873,685	)
Operating income (loss)		154,940			(114,605	)		99,191			19,921
Other income (loss):
Interest income		11,398			16,593			40,344			49,361
Undistributed earnings in joint venture - Majestic 21		29,180			20,796			89,380			63,346
Losses from investments in retirement community limited partnerships		(93,290	)		(110,342	)		(223,131	)		(259,727	)
Miscellaneous		19,273			30,521			73,541			68,223
Total other loss		(33,439	)		(42,432	)		(19,866	)		(78,797	)
Income (loss) before provision for income taxes		121,501			(157,037	)		79,325			(58,876	)
Income tax		—			—			—			—
Net income (loss)		121,501			(157,037	)		79,325			(58,876	)
Other comprehensive income (loss)
Unrealized investment gain (loss)		96,497			(4,821	)		141,127			(896	)
Comprehensive income (loss)	$	217,998		$	(161,858	)	$	220,452		$	(59,772	)
Weighed average number of shares outstanding:
Basic		4,057,053			4,057,053			4,057,053			4,056,773
Diluted		4,057,053			4,057,053			4,057,053			4,056,733
Income (loss) per share:
Basic	$	0.03		$	(0.04	)	$	0.02		$	(0.01	)
Diluted	$	0.03		$	(0.04	)	$	0.02		$	(0.01	)

The accompanying notes are an integral part of these financial statements

4

NOBILITY HOMES, INC.

Consolidated Statements of Cash Flows

(Unaudited)

	Nine Months Ended
	August 3, 2013			August 4, 2012
Cash flows from operating activities:
Net income (loss)	$	79,325		$	(58,876	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation		90,058			100,663
Amortization of bond premium/discount		—			1,668
Undistributed earnings in joint venture - Majestic 21		(89,380	)		(63,346	)
Losses from investments in retirement community limited partnerships		223,131			259,727
Increase in cash surrender value of life insurance		(84,366	)		(71,100	)
Stock-based compensation		10,139			34,034
Decrease (increase) in:
Accounts receivable - trade		1,541,273			(95,542	)
Inventories		539,297			718,272
Pre-owned homes		26,756			1,477,081
Prepaid expenses and other assets		(308,557	)		(216,378	)
(Decrease) increase in:
Accounts payable		(152,669	)		(103,556	)
Accrued compensation		168			(1,751	)
Accrued expenses and other current liabilities		103,022			(398,287	)
Customer deposits		525,828			43,125
Net cash provided by operating activities		2,504,025			1,625,734
Cash flows from investing activities:
Purchase of property, plant and equipment		(3,029	)		(57,872	)
Decrease in mortgage notes receivable		1,697			564
Proceeds from maturity of long-term investment		—			505,000
Net cash provided by (used in) investing activities		(1,332	)		447,692
Increase in cash and cash equivalents		2,502,693			2,073,426
Cash and cash equivalents at beginning of year		7,352,480			6,206,218
Cash and cash equivalents at end of quarter	$	9,855,173		$	8,279,644

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 for the three and nine months ended August 3, 2013 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 operations for the three and nine months ended August 3, 2013 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 financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended November 3, 2012.

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. In addition, an allocation of depreciation and amortization is included in cost of goods sold. 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 market value.

Pre-owned inventory is valued at the lower of the Company’s cost to acquire the inventory plus refurbishment costs incurred to date to bring the inventory to a more saleable state, or market value.

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

6

Inventories were as follows:

	August 3, 2013			November 3, 2012
Raw materials	$	523,286		$	505,122
Work-in-process		99,589			90,444
Finished homes		4,594,507			5,140,200
Model home furniture and others		25,201			46,114
Inventories, net	$	5,242,583		$	5,781,880
Pre-owned homes	$	9,740,463		$	10,335,524
Inventory impairment reserve		(2,833,222	)		(3,401,527	)
		6,907,241			6,933,997
Less homes expected to sell in 12 months		(2,037,428	)		(2,503,164	)
Pre-owned homes, long-term	$	4,869,813		$	4,430,833

Finance Revenue Sharing Agreement – During fiscal 2004, the Company entered into a finance revenue sharing agreement (FRSA) between 21^st Mortgage Corporation (“21^st Mortgage”), Prestige Home Centers, Inc., and Majestic Homes, Inc. without forming a separate entity. In connection with this FRSA, mortgage financing is provided on manufactured homes sold through the Company’s retail centers to customers who qualify for such mortgage financing. Under the FRSA, prior to the execution of the Seventh Amendment as described below, the Company had agreed to repurchase any repossessed homes and related collateral from 21^st Mortgage that was financed under the agreement. Prior to the Seventh Amendment, the FRSA contained certain provisions that would reimburse the Company for a portion of any repossessed homes and related collateral sold.

In October 2011, the Company entered into the Seventh Amendment to the FRSA. As a result, the Company’s obligation to buyback contracts on repossessed homes ceased and any homes that had not yet been re-sold are to be liquidated by the Company and there will be no reimbursement from the FRSA escrow for any expenses or losses upon sale of the home.

The following table summarizes certain key statistics regarding repurchased homes and subsequent sale of those homes under the FRSA. These homes and land are reflected as pre-owned homes in the consolidated balance sheets.

	Three Months Ended				Nine Months Ended
	August 3, 2013		August 4, 2012		August 3, 2013		August 4, 2012
Homes repurchased		0		0		0		3
Cost of repurchased homes	$	0	$	0	$	0	$	192,417
Number of repurchased homes sold		8		9		17		25
Cost of repurchased homes sold	$	541,682	$	748,175	$	1,101,407	$	1,756,087
Liquidation costs of repurchased homes sold	$	263,558	$	116,965	$	424,972	$	196,330
Impact upon results of operations*	$	0	$	0	$	0	$	0

7

Note 3 Short-term Investments

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

	August 3, 2013
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Equity securities in a public company	$	167,930	$	294,143	$	—	$	462,073

	November 3, 2012
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Equity securities in a public company	$	167,930	$	153,016	$	—	$	320,946

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 receivables, accounts payable and accrued expenses approximates fair value because of the short maturity of those instruments. Short-term investments (available for sale) are carried at fair value.

FASB ASC No. 820 “Fair Value Measurements” 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 No. 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 No. 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.

8

The following tables present the Company’s assets and liabilities which are measured at fair value on a recurring basis at August 3, 2013 and November 3, 2012.

	August 3, 2013
	Level 1		Level 2		Level 3
Short-term investments
Equity securities in a public company	$	462,073	$	—	$	—

	November 3, 2012
	Level 1		Level 2		Level 3
Short-term investments
Equity securities in a public company	$	320,946	$	—	$	—

Note 5 Investments in Retirement Community Limited Partnerships

The Company’s investment in retirement community limited partnerships include a 31.9% interest in Walden Woods South LLC (“South”) and a 48.5% interest in CRF III, Ltd. (“Cypress Creek”). The fair value of the Cypress Creek investment was $534,793 and $757,924 at August 3, 2013 and November 3, 2012, respectively. The fair value of the South investment is zero at both August 3, 2013 and November 3, 2012.

The following is summarized financial information of South and Cypress Creek*:

	June 30,			September 30,
	2013			2012
Total Assets	$	13,729,968		$	14,159,361
Total Liabilities	$	15,154,769		$	14,829,587
Total Equity	$	(1,424,801	)	$	(670,226	)

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

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						Nine Months Ended
	August 3, 2013			August 4, 2012			August 3, 2013			August 4, 2012
Beginning accrued warranty expense	$	75,000		$	75,000		$	75,000		$	75,000
Less: reduction for payments		(43,202	)		(39,283	)		(127,384	)		(128,730	)
Plus: additions to accrual		43,202			39,283			127,384			128,730
Ending accrued warranty expense	$	75,000		$	75,000		$	75,000		$	75,000

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.

9

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.

Note 7 Earnings (Loss) Per Share

Basic net income (loss) per share is computed by dividing net income available to common shareholders by the weighted-average number of common shares outstanding. Diluted net income (loss) per share is computed similarly to basic net income (loss) per share except that the denominator is increased to include the number of additional shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive. For the three and nine months ended August 3, 2013 and August 4, 2012, options to purchase 54,150 and 78,900 shares, respectively, have been excluded from the computation of potentially dilutive securities as the effect on earnings (loss) per share is antidilutive.

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.

10

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

Results of Operations

The following table summarizes certain key sales statistics and percent of gross profit for the three and nine months ended August 3, 2013 and August 4, 2012.

	Three Months Ended						Nine Months Ended
	August 3, 2013			August 4, 2012			August 3, 2013			August 4, 2012
Homes sold through Company owned sales centers		25			10			62			49
Pre-owned homes sold through Company owned sales centers		15			12			33			33
Homes sold to independent dealers		47			61			148			166
Total new factory built homes produced		72			66			204			201
Average new manufactured home price - retail	$	65,248		$	62,991		$	58,854		$	65,194
Average new manufactured home price - wholesale	$	31,767		$	26,556		$	29,497		$	27,532
As a percent of net sales:
Gross profit from the Company owned retail sales centers		12	%		10	%		13	%		13	%
Gross profit from the manufacturing facilities - including intercompany sales		19	%		14	%		15	%		16	%

Total net sales in the third quarter of 2013 were $4,758,456, up 24% compared to $3,828,400 in the third quarter of 2012, which includes sales of pre-owned homes of $946,865 and $978,125, respectively. Total net sales for the first nine months of 2013 were $11,973,742, up 5% compared to $11,446,802 for the first nine months of 2012, which includes sales of pre-owned homes of $2,018,780 and $2,264,420, respectively. Sales to two publicly traded REIT’S (Real Estate Investment Trusts) and other companies which own multiple retirement communities in our market area accounted for approximately 28% and 33% of our sales for the nine months ended August 3, 2013 and August 4, 2012, respectively. Accounts receivable due from these customers were approximately $990,073 at August 3, 2013.

According to the Florida Manufactured Housing Association, shipments in Florida for the period from November 2012 through May 2013 were up approximately 14% from the same period last year. Our sales and operations continue to be impacted by our country’s economic conditions and those in the state of Florida. Although the immediate outlook for the manufactured housing industry in Florida and the nation is uncertain, the long-term demographic trends still favor future growth in the Florida market area we serve. Our 46 years of experience in the Florida market and consumers’ increased need for more affordable housing should serve us well in the coming years. We remain convinced that our specific geographic market is one of the best long-term growth areas in the country. The country must experience a better economy with less uncertainty, improved sales in the existing home market, declining unemployment, increased consumer confidence and more retail financing for the sales of our affordable homes to improve significantly.

11

We understand that during this very complex economic environment, maintaining our strong financial position is vital for future growth and success. Because of the recent historical poor business conditions in our market area and the lack of any clarity as to when today’s economic challenges will improve measurably, we will continue to evaluate Prestige’s retail model centers in Florida, along with all other expenses and react in a manner consistent with maintaining our strong financial position.

We have specialized for 46 years in the design and production of quality, affordable manufactured homes at our plant located in central Florida. With our multiple retail sales centers, a finance company joint venture, an insurance subsidiary, and investments in retirement manufactured home communities, we are the only vertically integrated manufactured home company headquartered in Florida.

Insurance agent commission revenues in the third quarter of 2013 were $49,566 compared to $43,249 in the third quarter of 2012. Total insurance agent commission revenues for the first nine months of 2013 were $152,926 compared to $155,179 for the first nine months of 2012. The decline in insurance agent commission’s year to date in 2013 resulted from a decline in renewals. 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 is deemed necessary for policy cancellations at August 3, 2013 and November 3, 2012.

The revenues from construction lending operations in third quarter of 2013 was $10,592 compared to $7,098 in the third quarter of 2012 and was $24,299 for the first nine months of 2013 compared to $25,736 for the first nine months of 2012. The decrease in revenues year to date in 2013 was due to fewer homes sales in fiscal year 2013 financed with a construction loan.

Gross profit as a percentage of net sales was 19% in third quarter of 2013 compared to 13% in third quarter of 2012 and was 17% for the first nine months of 2013 and 2012. The gross profit in third quarter of 2013 was $903,640 compared to $513,912 in the third quarter of 2012 and was $2,027,409 for the first nine months of 2013 compared to $1,893,606 for the first nine months of 2012. The increase in gross profit was primarily due to the increased sales volume and increases in the average wholesale new manufactured home selling price.

Selling, general and administrative expenses as a percent of net sales was 16% in third quarter of 2013 and 2012 and was 16% for the first nine months of 2013 and 2012. We continue our efforts to reduce our overhead costs, which included closing two retail sales centers in fiscal year 2012.

Our earnings from Majestic 21 in the third quarter of 2013 were $29,180, compared to $20,796 for the third quarter of 2012. Our earnings from Majestic 21 for the first nine months of 2013 were $89,380, compared to $63,346 for the first nine months of 2012. The earnings from Majestic 21 represent the allocation of profit and losses which are owned 50% by 21st Mortgage and 50% by the Company. The increase in earnings in fiscal year 2013 is due to the lower cost of funds on the portfolio.

We earned interest on cash, cash equivalents and short-term investments in the amount of $11,398 for the third quarter of 2013 compared to $16,593 for the third quarter of 2012. For the first nine months of 2013 interest earned on cash, cash equivalents and short-term investments were $40,344 compared to $49,361 in the first nine months of 2012. Interest income is dependent on our cash balance and available rates of return.

We reported non-cash losses from our investment in retirement community limited partnerships of $93,290 for the third quarter of 2013 compared to $110,342 for the third quarter of 2012. For the first nine months of 2013, losses were $223,131 compared to $259,727 in the first nine months of 2012. We expect similar losses for the remainder of 2013 as the community continues to see slow growth in new home sales.

12

We reported net income of $121,501 for the third quarter of 2013, or $0.03 per share, compared to a net loss of $157,037, or $0.04 per share, for the third quarter of 2012. For the first nine months of 2013 net income was $79,325, or $0.02 per share, compared to a net loss of $58,876, or $0.01 per share, in the first nine months of 2012.

Liquidity and Capital Resources

Cash and cash equivalents were $9,855,173 at August 3, 2013 compared to $7,352,480 at November 3, 2012. Short-term investments were $462,073 at August 3, 2013 compared to $320,946 at November 3, 2012. Working capital was $18,413,098 at August 3, 2013 as compared to $18,589,914 at November 3, 2012. 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.

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 $2.5 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.

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, including our statement that working capital requirements will be met with internal sources. 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, continued excess retail inventory, increase in repossessions, 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, impact of labor shortage, impact of materials shortage, increasing labor cost, cyclical nature of the manufactured housing industry, impact of rising 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.

13

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures. The Company’s Chief Executive Officer and Chief Financial Officer have evaluated the effectiveness of the Company’s disclosure controls and procedures (as such term is defined in Rules 13a – 15e and 15d – 15e 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 as of the Evaluation Date, our Chief Executive Officer and Chief Financial Officer have concluded that the Company’s disclosure controls and procedures were effective for the period ended August 3, 2013.

Changes in Internal Control over Financial Reporting. We made no changes in our internal control over financial reporting (as defined in Rules 13a-15(f)) and 15d-15(f) under the Exchange Act) identified in connection with the evaluation of our internal controls that occurred during our last fiscal quarter that has materially affected, or which is reasonably likely to materially affect our internal controls over financial reporting.

14

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

15

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: September 10, 2013	By:	/s/ Terry E. Trexler
	Terry E. Trexler, Chairman, President and Chief Executive Officer
DATE: September 10, 2013	By:	/s/ Thomas W. Trexler
	Thomas W. Trexler, Executive Vice President, and Chief Financial Officer
DATE: September 10, 2013	By:	/s/ Lynn J. Cramer, Jr.
	Lynn J. Cramer, Jr., Treasurer and Principal Accounting Officer

16

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: September 10, 2013	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: September 10, 2013	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 August 3, 2013 (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: September 10, 2013	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 August 3, 2013 (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: September 10, 2013	By:	/s/ Thomas W. Trexler
	Thomas W. Trexler, Executive Vice President, and Chief Financial Officer

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Fair Value of Financial Instruments (Tables)

9 Months Ended

Aug. 03, 2013

Fair Value Disclosures [Abstract]

Summary of Financial Assets and Liabilities Carried at Fair Value

The following tables present the Company’s assets and liabilities which are measured at fair value on a recurring basis at August 3, 2013 and November 3, 2012.

	August 3, 2013
	Level 1		Level 2		Level 3
Short-term investments
Equity securities in a public company	$	462,073	$	—	$	—

	November 3, 2012
	Level 1		Level 2		Level 3
Short-term investments
Equity securities in a public company	$	320,946	$	—	$	—

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Consolidated Statements of Comprehensive Income (Loss) (USD $)	3 Months Ended		9 Months Ended
	Aug. 03, 2013	Aug. 04, 2012	Aug. 03, 2013	Aug. 04, 2012
Income Statement [Abstract]
Net sales	$ 4,758,456	$ 3,828,400	$ 11,973,742	$ 11,446,802
Cost of goods sold	(3,854,816)	(3,314,488)	(9,946,333)	(9,553,196)
Gross profit	903,640	513,912	2,027,409	1,893,606
Selling, general and administrative expenses	(748,700)	(628,517)	(1,928,218)	(1,873,685)
Operating income (loss)	154,940	(114,605)	99,191	19,921
Other income (loss):
Interest income	11,398	16,593	40,344	49,361
Undistributed earnings in joint venture - Majestic 21	29,180	20,796	89,380	63,346
Losses from investments in retirement community limited partnerships	(93,290)	(110,342)	(223,131)	(259,727)
Miscellaneous	19,273	30,521	73,541	68,223
Total other loss	(33,439)	(42,432)	(19,866)	(78,797)
Income (loss) before provision for income taxes	121,501	(157,037)	79,325	(58,876)
Income tax
Net income (loss)	121,501	(157,037)	79,325	(58,876)
Other comprehensive income (loss)
Unrealized investment gain (loss)	96,497	(4,821)	141,127	(896)
Comprehensive income (loss)	$ 217,998	$ (161,858)	$ 220,452	$ (59,772)
Weighted average number of shares outstanding:
Basic	4,057,053	4,057,053	4,057,053	4,056,773
Diluted	4,057,053	4,057,053	4,057,053	4,056,733
Income (loss) per share:
Basic	$ 0.03	$ (0.04)	$ 0.02	$ (0.01)
Diluted	$ 0.03	$ (0.04)	$ 0.02	$ (0.01)

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Investments in Retirement Community Limited Partnerships

9 Months Ended

Aug. 03, 2013

Text Block [Abstract]

Investments in Retirement Community Limited Partnerships

Note 5 Investments in Retirement Community Limited Partnerships

The Company’s investment in retirement community limited partnerships include a 31.9% interest in Walden Woods South LLC (“South”) and a 48.5% interest in CRF III, Ltd. (“Cypress Creek”). The fair value of the Cypress Creek investment was $534,793 and $757,924 at August 3, 2013 and November 3, 2012, respectively. The fair value of the South investment is zero at both August 3, 2013 and November 3, 2012.

The following is summarized financial information of South and Cypress Creek*:

	June 30,			September 30,
	2013			2012
Total Assets	$	13,729,968		$	14,159,361
Total Liabilities	$	15,154,769		$	14,829,587
Total Equity	$	(1,424,801	)	$	(670,226	)

* Due to South and Cypress Creek 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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Fair Value of Financial Instruments - Summary of Financial Assets and Liabilities Carried at Fair Value (Detail) (Investment in Publicly Traded Equity Securities [Member], USD $)	Aug. 03, 2013	Nov. 03, 2012
Level 1 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Equity securities in a public company	$ 462,073	$ 320,946
Level 2 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Equity securities in a public company
Level 3 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Equity securities in a public company

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Investments in Retirement Community Limited Partnerships (Tables)

9 Months Ended

Aug. 03, 2013

Text Block [Abstract]

Summarized Financial Information of South and Cypress Creek

The following is summarized financial information of South and Cypress Creek*:

	June 30,			September 30,
	2013			2012
Total Assets	$	13,729,968		$	14,159,361
Total Liabilities	$	15,154,769		$	14,829,587
Total Equity	$	(1,424,801	)	$	(670,226	)

* Due to South and Cypress Creek 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 - Summary of Amount Related to Limited Warranty (Detail) (USD $)	3 Months Ended		9 Months Ended
	Aug. 03, 2013	Aug. 04, 2012	Aug. 03, 2013	Aug. 04, 2012
Product Warranties Disclosures [Abstract]
Beginning accrued warranty expense	$ 75,000	$ 75,000	$ 75,000	$ 75,000
Less: reduction for payments	(43,202)	(39,283)	(127,384)	(128,730)
Plus: additions to accrual	43,202	39,283	127,384	128,730
Ending accrued warranty expense	$ 75,000	$ 75,000	$ 75,000	$ 75,000

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Investments in Retirement Community Limited Partnerships - Summarized Financial Information of South and Cypress Creek (Detail) (USD $)	Jun. 30, 2013	Sep. 30, 2012
Investments In Retirement Community Limited Partnerships [Abstract]
Total Assets	$ 13,729,968	$ 14,159,361
Total Liabilities	15,154,769	14,829,587
Total Equity	$ (1,424,801)	$ (670,226)

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Investments in Retirement Community Limited Partnerships - Additional Information (Detail) (USD $)	Aug. 03, 2013	Nov. 03, 2012
Accounts, Notes, Loans and Financing Receivable [Line Items]
Percentage of interest in investments in retirement community limited partnerships	50.00%
Walden Woods South LLC [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Percentage of interest in investments in retirement community limited partnerships	31.90%
Amount invested in retirement community	$ 0	$ 0
CRF III Ltd [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Percentage of interest in investments in retirement community limited partnerships	48.50%
Amount invested in retirement community	$ 534,793	$ 757,924

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Basis of Presentation and Accounting Policies

9 Months Ended

Aug. 03, 2013

Accounting Policies [Abstract]

Basis of Presentation and Accounting Policies

Note 1 Basis of Presentation and Accounting Policies

The accompanying unaudited consolidated financial statements for the three and nine months ended August 3, 2013 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 operations for the three and nine months ended August 3, 2013 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 financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended November 3, 2012.

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Short-term Investments

9 Months Ended

Aug. 03, 2013

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):

	August 3, 2013
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Equity securities in a public company	$	167,930	$	294,143	$	—	$	462,073

	November 3, 2012
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Equity securities in a public company	$	167,930	$	153,016	$	—	$	320,946

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

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Warranty Costs

9 Months Ended

Aug. 03, 2013

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						Nine Months Ended
	August 3, 2013			August 4, 2012			August 3, 2013			August 4, 2012
Beginning accrued warranty expense	$	75,000		$	75,000		$	75,000		$	75,000
Less: reduction for payments		(43,202	)		(39,283	)		(127,384	)		(128,730	)
Plus: additions to accrual		43,202			39,283			127,384			128,730
Ending accrued warranty expense	$	75,000		$	75,000		$	75,000		$	75,000

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.

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Fair Value of Financial Instruments

9 Months Ended

Aug. 03, 2013

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 receivables, accounts payable and accrued expenses approximates fair value because of the short maturity of those instruments. Short-term investments (available for sale) are carried at fair value.

FASB ASC No. 820 “Fair Value Measurements” 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 No. 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 No. 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 present the Company’s assets and liabilities which are measured at fair value on a recurring basis at August 3, 2013 and November 3, 2012.

	August 3, 2013
	Level 1		Level 2		Level 3
Short-term investments
Equity securities in a public company	$	462,073	$	—	$	—

	November 3, 2012
	Level 1		Level 2		Level 3
Short-term investments
Equity securities in a public company	$	320,946	$	—	$	—

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Earnings (Loss) Per Share - Additional Information (Detail)	3 Months Ended	9 Months Ended
	Aug. 03, 2013	Aug. 04, 2012
Earnings Per Share [Abstract]
Options to purchase excluded from the computation of potentially dilutive securities	54,150	78,900

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Consolidated Balance Sheets (Parenthetical) (USD $)	Aug. 03, 2013	Nov. 03, 2012
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	1,307,854	1,307,854

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Fair Value of Financial Instruments (Policies)

9 Months Ended

Aug. 03, 2013

Fair Value Disclosures [Abstract]

Fair Value Measurements

FASB ASC No. 820 “Fair Value Measurements” 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 No. 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 No. 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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Consolidated Statements of Cash Flows (USD $)	9 Months Ended
	Aug. 03, 2013	Aug. 04, 2012
Cash flows from operating activities:
Net income (loss)	$ 79,325	$ (58,876)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation	90,058	100,663
Amortization of bond premium/discount		1,668
Undistributed earnings in joint venture - Majestic 21	(89,380)	(63,346)
Losses from investments in retirement community limited partnerships	223,131	259,727
Increase in cash surrender value of life insurance	(84,366)	(71,100)
Stock-based compensation	10,139	34,034
Decrease (increase) in:
Accounts receivable - trade	1,541,273	(95,542)
Inventories	539,297	718,272
Pre-owned homes	26,756	1,477,081
Prepaid expenses and other assets	(308,557)	(216,378)
(Decrease) increase in:
Accounts payable	(152,669)	(103,556)
Accrued compensation	168	(1,751)
Accrued expenses and other current liabilities	103,022	(398,287)
Customer deposits	525,828	43,125
Net cash provided by operating activities	2,504,025	1,625,734
Cash flows from investing activities:
Purchase of property, plant and equipment	(3,029)	(57,872)
Decrease in mortgage notes receivable	1,697	564
Proceeds from maturity of long-term investment		505,000
Net cash provided by (used in) investing activities	(1,332)	447,692
Increase in cash and cash equivalents	2,502,693	2,073,426
Cash and cash equivalents at beginning of year	7,352,480	6,206,218
Cash and cash equivalents at end of quarter	$ 9,855,173	$ 8,279,644

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Consolidated Balance Sheets (USD $)	Aug. 03, 2013	Nov. 03, 2012
Current assets:
Cash and cash equivalents	$ 9,855,173	$ 7,352,480
Short-term investments	462,073	320,946
Accounts and notes receivable	1,309,003	2,850,276
Mortgage notes receivable, current	3,841	3,483
Inventories	5,242,583	5,781,880
Pre-owned homes, current	2,037,428	2,503,164
Prepaid expenses and other current assets	788,612	480,055
Deferred income taxes	572,849	679,745
Total current assets	20,271,562	19,972,029
Property, plant and equipment, net	3,714,523	3,801,552
Pre-owned homes	4,869,813	4,430,833
Mortgage notes receivable, long term	184,461	186,516
Income tax receivable	248,164	248,164
Other investments	2,973,219	3,106,970
Deferred income taxes	1,344,151	1,237,255
Other assets	2,771,906	2,687,540
Total assets	36,377,799	35,670,859
Current liabilities:
Accounts payable	251,877	404,546
Accrued compensation	112,540	112,372
Accrued expenses and other current liabilities	617,542	514,520
Customer deposits	876,505	350,677
Total current liabilities	1,858,464	1,382,115
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	10,628,681	10,618,542
Retained earnings	32,652,003	32,572,678
Accumulated other comprehensive income	247,217	106,090
Less treasury stock at cost, 1,307,854 shares in 2013 and 2012	(9,545,057)	(9,545,057)
Total stockholders' equity	34,519,335	34,288,744
Total liabilities and stockholders' equity	$ 36,377,799	$ 35,670,859

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Revenues by Products and Service - Revenues by Net Sales from Manufactured Housing, Insurance Agent Commissions and Construction Lending Operations (Detail) (USD $)	3 Months Ended		9 Months Ended
	Aug. 03, 2013	Aug. 04, 2012	Aug. 03, 2013	Aug. 04, 2012
Sales Information [Line Items]
Total net sales	$ 4,758,456	$ 3,828,400	$ 11,973,742	$ 11,446,802
Manufactured Housing [Member]
Sales Information [Line Items]
Total net sales	3,751,433	2,799,928	9,777,737	9,001,467
Pre-owned Homes-FRSA [Member]
Sales Information [Line Items]
Total net sales	685,222	819,448	1,373,418	1,906,725
Trade in and Other Pre-owned Homes [Member]
Sales Information [Line Items]
Total net sales	261,643	158,677	645,362	357,695
Insurance Agent Commissions [Member]
Sales Information [Line Items]
Total net sales	49,566	43,249	152,926	155,179
Construction Lending Operations [Member]
Sales Information [Line Items]
Total net sales	$ 10,592	$ 7,098	$ 24,299	$ 25,736

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Short-term Investments - Summary of Short-term Investments (Detail) (Equity Securities in a Public Company [Member], USD $)	Aug. 03, 2013	Nov. 03, 2012
Equity Securities in a Public Company [Member]
Schedule of Investments [Line Items]
Available-for-sale Securities, Amortized Cost	$ 167,930	$ 167,930
Available-for-sale Securities, Gross Unrealized Gains	294,143	153,016
Available-for-sale Securities, Gross Unrealized Losses
Available-for-sale Securities, Estimated Fair Value	$ 462,073	$ 320,946

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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.

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Revenues by Products and Service - Additional Information (Detail) (USD $)	9 Months Ended
	Aug. 03, 2013
Segment Reporting [Abstract]
Percentage of joint venture loan guaranteed by company	50.00%
Guarantee obligations note payable principal amount	$ 5,000,000
Percentage interest owns by company	50.00%
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	2,138,500
Collateral value for pool of loan securing note payable by joint venture	$ 2,827,525

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Short-term Investments (Tables)

9 Months Ended

Aug. 03, 2013

Investments Debt And Equity Securities [Abstract]

Summary of Short-term Investments

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

	August 3, 2013
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Equity securities in a public company	$	167,930	$	294,143	$	—	$	462,073

	November 3, 2012
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Equity securities in a public company	$	167,930	$	153,016	$	—	$	320,946

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Earnings (Loss) Per Share

9 Months Ended

Aug. 03, 2013

Earnings Per Share [Abstract]

Earnings (Loss) Per Share

Note 7 Earnings (Loss) Per Share

Basic net income (loss) per share is computed by dividing net income available to common shareholders by the weighted-average number of common shares outstanding. Diluted net income (loss) per share is computed similarly to basic net income (loss) per share except that the denominator is increased to include the number of additional shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive. For the three and nine months ended August 3, 2013 and August 4, 2012, options to purchase 54,150 and 78,900 shares, respectively, have been excluded from the computation of potentially dilutive securities as the effect on earnings (loss) per share is antidilutive.

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Inventories

9 Months Ended

Aug. 03, 2013

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. In addition, an allocation of depreciation and amortization is included in cost of goods sold. 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 market value.

Pre-owned inventory is valued at the lower of the Company’s cost to acquire the inventory plus refurbishment costs incurred to date to bring the inventory to a more saleable state, or market value.

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

Inventories were as follows:

	August 3, 2013			November 3, 2012
Raw materials	$	523,286		$	505,122
Work-in-process		99,589			90,444
Finished homes		4,594,507			5,140,200
Model home furniture and others		25,201			46,114
Inventories, net	$	5,242,583		$	5,781,880
Pre-owned homes	$	9,740,463		$	10,335,524
Inventory impairment reserve		(2,833,222	)		(3,401,527	)
		6,907,241			6,933,997
Less homes expected to sell in 12 months		(2,037,428	)		(2,503,164	)
Pre-owned homes, long-term	$	4,869,813		$	4,430,833

Finance Revenue Sharing Agreement – During fiscal 2004, the Company entered into a finance revenue sharing agreement (FRSA) between 21^st Mortgage Corporation (“21^st Mortgage”), Prestige Home Centers, Inc., and Majestic Homes, Inc. without forming a separate entity. In connection with this FRSA, mortgage financing is provided on manufactured homes sold through the Company’s retail centers to customers who qualify for such mortgage financing. Under the FRSA, prior to the execution of the Seventh Amendment as described below, the Company had agreed to repurchase any repossessed homes and related collateral from 21^st Mortgage that was financed under the agreement. Prior to the Seventh Amendment, the FRSA contained certain provisions that would reimburse the Company for a portion of any repossessed homes and related collateral sold.

In October 2011, the Company entered into the Seventh Amendment to the FRSA. As a result, the Company’s obligation to buyback contracts on repossessed homes ceased and any homes that had not yet been re-sold are to be liquidated by the Company and there will be no reimbursement from the FRSA escrow for any expenses or losses upon sale of the home.

The following table summarizes certain key statistics regarding repurchased homes and subsequent sale of those homes under the FRSA. These homes and land are reflected as pre-owned homes in the consolidated balance sheets.

	Three Months Ended				Nine Months Ended
	August 3, 2013		August 4, 2012		August 3, 2013		August 4, 2012
Homes repurchased		0		0		0		3
Cost of repurchased homes	$	0	$	0	$	0	$	192,417
Number of repurchased homes sold		8		9		17		25
Cost of repurchased homes sold	$	541,682	$	748,175	$	1,101,407	$	1,756,087
Liquidation costs of repurchased homes sold	$	263,558	$	116,965	$	424,972	$	196,330
Impact upon results of operations*	$	0	$	0	$	0	$	0

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Warranty Costs (Tables)

9 Months Ended

Aug. 03, 2013

Guarantees [Abstract]

Summary of Amounts Related to Limited Warranty

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

	Three Months Ended						Nine Months Ended
	August 3, 2013			August 4, 2012			August 3, 2013			August 4, 2012
Beginning accrued warranty expense	$	75,000		$	75,000		$	75,000		$	75,000
Less: reduction for payments		(43,202	)		(39,283	)		(127,384	)		(128,730	)
Plus: additions to accrual		43,202			39,283			127,384			128,730
Ending accrued warranty expense	$	75,000		$	75,000		$	75,000		$	75,000

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Inventories (Tables)

9 Months Ended

Aug. 03, 2013

Inventory Disclosure [Abstract]

Summary of Inventories

Inventories were as follows:

	August 3, 2013			November 3, 2012
Raw materials	$	523,286		$	505,122
Work-in-process		99,589			90,444
Finished homes		4,594,507			5,140,200
Model home furniture and others		25,201			46,114
Inventories, net	$	5,242,583		$	5,781,880
Pre-owned homes	$	9,740,463		$	10,335,524
Inventory impairment reserve		(2,833,222	)		(3,401,527	)
		6,907,241			6,933,997
Less homes expected to sell in 12 months		(2,037,428	)		(2,503,164	)
Pre-owned homes, long-term	$	4,869,813		$	4,430,833

Summary of repurchased homes and subsequent sale of those homes under the Finance Revenue Sharing Agreement

The following table summarizes certain key statistics regarding repurchased homes and subsequent sale of those homes under the FRSA. These homes and land are reflected as pre-owned homes in the consolidated balance sheets.

	Three Months Ended				Nine Months Ended
	August 3, 2013		August 4, 2012		August 3, 2013		August 4, 2012
Homes repurchased		0		0		0		3
Cost of repurchased homes	$	0	$	0	$	0	$	192,417
Number of repurchased homes sold		8		9		17		25
Cost of repurchased homes sold	$	541,682	$	748,175	$	1,101,407	$	1,756,087
Liquidation costs of repurchased homes sold	$	263,558	$	116,965	$	424,972	$	196,330
Impact upon results of operations*	$	0	$	0	$	0	$	0

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Inventories - Summary of repurchased homes and subsequent sale of those homes under the Finance Revenue Sharing Agreement (Detail) (USD $)	3 Months Ended		9 Months Ended
	Aug. 03, 2013 Home	Aug. 04, 2012 Home	Aug. 03, 2013 Home	Aug. 04, 2012 Home
Inventory Disclosure [Abstract]
Homes repurchased	0	0	0	3
Cost of repurchased homes	$ 0	$ 0	$ 0	$ 192,417
Number of repurchased homes sold	8	9	17	25
Cost of repurchased homes sold	541,682	748,175	1,101,407	1,756,087
Liquidation costs of repurchased homes sold	263,558	116,965	424,972	196,330
Impact upon results of operations	$ 0	$ 0	$ 0	$ 0

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Revenues by Products and Service (Tables)

9 Months Ended

Aug. 03, 2013

Segment Reporting [Abstract]

Revenues by Net Sales from Manufactured Housing, Insurance Agent Commissions and Construction Lending Operations

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

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Document and Entity Information	9 Months Ended
	Aug. 03, 2013	Sep. 09, 2013
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Aug. 03, 2013
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	Q3
Entity Registrant Name	NOBILITY HOMES INC
Entity Central Index Key	0000072205
Current Fiscal Year End Date	--11-02
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		4,057,053

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Inventories - Summary of Inventories (Detail) (USD $)	Aug. 03, 2013	Nov. 03, 2012
Inventory Disclosure [Abstract]
Raw materials	$ 523,286	$ 505,122
Work-in-process	99,589	90,444
Finished homes	4,594,507	5,140,200
Model home furniture and others	25,201	46,114
Inventories, net	5,242,583	5,781,880
Pre-owned homes	9,740,463	10,335,524
Inventory impairment reserve	(2,833,222)	(3,401,527)
Pre-owned homes, net	6,907,241	6,933,997
Less homes expected to sell in 12 months	(2,037,428)	(2,503,164)
Pre-owned homes, long-term	$ 4,869,813	$ 4,430,833