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Cavco Industries Reports Fiscal 2025 First Quarter Results

PHOENIX, Aug. 01, 2024 (GLOBE NEWSWIRE) — Cavco Industries, Inc. (Nasdaq: CVCO) (“we,” “our,” the “Company” or “Cavco”) today announced financial results for the first fiscal quarter ended June 29, 2024.

Quarterly Highlights

Commenting on the quarter, President and Chief Executive Officer Bill Boor said, “The momentum we experienced exiting the fourth quarter carried through the first quarter. Orders continued to increase, resulting in production increases and a growing backlog.”

He continued, “While our factory-built housing results showed continuing improvement, our consolidated results were negatively impacted by very high claims costs in our insurance operations. Those claims were driven by unusually high storm activity in Texas and the Ruidoso fires in New Mexico. While weather related events are unpredictable, our insurance operation has performed well over time, and we continue to actively manage our exposure. Overall, teams across the Company are stepping up to continued market improvement and the opportunity to help more families achieve homeownership.”

Financial Results

  Three Months Ended        
($ in thousands, except revenue per home sold) June 29,
2024
  July 1,
2023
  Change
Net revenue              
Factory-built housing $ 458,048   $ 457,109   $ 939     0.2 %
Financial services   19,551     18,766     785     4.2 %
  $ 477,599   $ 475,875   $ 1,724     0.4 %
               
Factory-built modules sold   7,671     7,406     265     3.6 %
               
Factory-built homes sold (consisting of one or more modules)   4,721     4,582     139     3.0 %
               
Net factory-built housing revenue per home sold $ 97,024   $ 99,762   $ (2,738 )   (2.7 )%
  Three Months Ended        
($ in thousands) June 29,
2024
  July 1,
2023
  Change
Gross profit              
Factory-built housing $ 103,510     $ 113,368     $ (9,858 )   (8.7 )%
Financial services   (108 )     4,511       (4,619 )   (102.4 )%
  $ 103,402     $ 117,879     $ (14,477 )   (12.3 )%
                 
Gross profit as % of Net revenue                
Consolidated   21.7 %     24.8 %     N/A     (3.1 )%
Factory-built housing   22.6 %     24.8 %     N/A     (2.2 )%
Financial services   (0.6 )%     24.0 %     N/A     (24.6 )%
               
Selling, general and administrative expenses              
Factory-built housing $ 59,720     $ 56,021     $ 3,699     6.6 %
Financial services   5,131       5,659       (528 )   (9.3 )%
  $ 64,851     $ 61,680     $ 3,171     5.1 %
               
Income from operations              
Factory-built housing $ 43,790     $ 57,347     $ (13,557 )   (23.6 )%
Financial services   (5,239 )     (1,148 )     (4,091 )   356.4 %
  $ 38,551     $ 56,199     $ (17,648 )   (31.4 )%
  Three Months Ended          
($ in thousands, except per share amounts) June 29,
2024
  July 1,
2023
  Change
Net income attributable to Cavco common stockholders $ 34,429   $ 46,357   $ (11,928 )   (25.7 )%
Diluted net income per share $ 4.11   $ 5.29   $ (1.18 )   (22.3 )%

Items ancillary to our core operations had the following impact on the results of operations:

    Three Months Ended
($ in millions) June 29,
2024
  July 1,
2023
Net revenue
Unrealized gains recognized during the period on securities held in the financial services segment $ 0.9     $ 0.3  
Selling, general and administrative expenses    
Legal and other expense related to the Securities and Exchange Commission inquiry         (0.3 )
Other (expense) income, net
Unrealized (losses) gains on corporate equity securities   (0.1 )     0.1  

Conference Call Details

Cavco’s management will hold a conference call to review these results tomorrow, August 2, 2024, at 1:00 p.m. (Eastern Time). Interested parties can access a live webcast of the conference call on the Internet at https://investor.cavco.com or via telephone. To participate by phone, please register at Here to receive the dial in number and your PIN. An archive of the webcast and presentation will be available for 60 days at https://investor.cavco.com.

About Cavco

Cavco Industries, Inc., headquartered in Phoenix, Arizona, designs and produces factory-built housing products primarily distributed through a network of independent and Company-owned retailers. We are one of the largest producers of manufactured and modular homes in the United States, based on reported wholesale shipments. Our products are marketed under a variety of brand names including Cavco, Fleetwood, Palm Harbor, Nationwide, Fairmont, Friendship, Chariot Eagle, Destiny, Commodore, Colony, Pennwest, R-Anell, Manorwood, MidCountry and Solitaire. We are also a leading producer of park model RVs, vacation cabins and factory-built commercial structures. Cavco’s finance subsidiary, CountryPlace Mortgage, is an approved Fannie Mae and Freddie Mac seller/servicer and a Ginnie Mae mortgage-backed securities issuer that offers conforming mortgages, non-conforming mortgages and home-only loans to purchasers of factory-built homes. Our insurance subsidiary, Standard Casualty, provides property and casualty insurance to owners of manufactured homes.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that are not historical facts. These forward-looking statements reflect Cavco’s current expectations and projections with respect to our expected future business and financial performance, including, among other things: (i) expected financial performance and operating results, such as revenue and gross margin percentage; (ii) our liquidity and financial resources; (iii) our outlook with respect to the Company and the manufactured housing business in general; (iv) the expected effect of certain risks and uncertainties on our business; and (iv) the strength of Cavco’s business model. These statements may be preceded by, followed by, or include the words “aim,” “anticipate,” “believe,” “estimate,” “expect,” “forecast,” “future,” “goal,” “intend,” “likely,” “outlook,” “plan,” “potential,” “project,” “seek,” “target,” “can,” “could,” “may,” “should,” “would,” “will,” the negatives thereof and other words and terms of similar meaning. A number of factors could cause actual results or outcomes to differ materially from those indicated by these forward-looking statements. These factors include, among other factors, Cavco’s ability to manage: (i) customer demand and the availability of financing for our products; (ii) labor shortages and the pricing, availability, or transportation of raw materials; (iii) the impact of local or national emergencies; (iv) excessive health and safety incidents or warranty and construction claims; (v) increases in cancellations of home sales; (vi) information technology failures or cyber incidents; (vii) our ability to maintain the security of personally identifiable information of our customers, (viii) comply with the numerous laws and regulations applicable to our business, including state, federal, and foreign laws relating manufactured housing, privacy, the internet, and accounting matters; (ix) successfully defend against litigation, government inquiries, and investigations, and (x) other risks and uncertainties indicated from time to time in documents filed or to be filed with the Securities and Exchange Commission (the “SEC”) by Cavco. The forward-looking statements herein represent the judgment of Cavco as of the date of this release and Cavco disclaims any intent or obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments, or otherwise. This press release should be read in conjunction with the information included in the Company’s other press releases, reports, and other filings with the SEC. Readers are specifically referred to the Risk Factors described in Item 1A of the Company’s Annual Report on Form 10-K for the year ended March 30, 2024 as may be updated from time to time in future filings on Form 10-Q and other reports filed by the Company pursuant to the Securities Exchange Act of 1934, which identify important risks that could cause actual results to differ from those contained in the forward-looking statements. Understanding the information contained in these filings is important in order to fully understand Cavco’s reported financial results and our business outlook for future periods.

       
CAVCO INDUSTRIES, INC.
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands, except per share amounts)
       
  June 29,
2024
  March 30,
2024
ASSETS (Unaudited)    
Current assets      
Cash and cash equivalents $ 359,296     $ 352,687  
Restricted cash, current   19,056       15,481  
Accounts receivable, net   85,051       77,123  
Short-term investments   20,671       18,270  
Current portion of consumer loans receivable, net   28,887       20,713  
Current portion of commercial loans receivable, net   40,363       40,787  
Current portion of commercial loans receivable from affiliates, net   1,784       2,529  
Inventories   244,844       241,339  
Prepaid expenses and other current assets   77,622       82,870  
Total current assets   877,574       851,799  
Restricted cash   585       585  
Investments   14,916       17,316  
Consumer loans receivable, net   22,151       23,354  
Commercial loans receivable, net   50,918       45,660  
Commercial loans receivable from affiliates, net   2,279       2,065  
Property, plant and equipment, net   224,749       224,199  
Goodwill   121,969       121,934  
Other intangibles, net   27,829       28,221  
Operating lease right-of-use assets   37,712       39,027  
Total assets $ 1,380,682     $ 1,354,160  
LIABILITIES AND STOCKHOLDERS’ EQUITY      
Current liabilities      
Accounts payable $ 31,431     $ 33,531  
Accrued expenses and other current liabilities   264,574       239,736  
Total current liabilities   296,005       273,267  
Operating lease liabilities   33,873       35,148  
Other liabilities   7,666       7,759  
Deferred income taxes   4,598       4,575  
Stockholders’ equity      
Preferred stock, $0.01 par value; 1,000,000 shares authorized; No shares issued or outstanding          
Common stock, $0.01 par value; 40,000,000 shares authorized; Issued 9,401,057 and 9,389,953 shares, respectively; Outstanding 8,251,522 and 8,320,718, respectively   94       94  
Treasury stock, at cost; 1,149,535 and 1,069,235 shares, respectively   (303,897 )     (274,693 )
Additional paid-in capital   281,062       281,216  
Retained earnings   1,061,556       1,027,127  
Accumulated other comprehensive loss   (275 )     (333 )
Total stockholders’ equity   1,038,540       1,033,411  
Total liabilities and stockholders’ equity $ 1,380,682     $ 1,354,160  
   
CAVCO INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except per share amounts)
(Unaudited)
   
  Three Months Ended
  June 29,
2024
  July 1,
2023
Net revenue $ 477,599     $ 475,875  
Cost of sales   374,197       357,996  
Gross profit   103,402       117,879  
Selling, general and administrative expenses   64,851       61,680  
Income from operations   38,551       56,199  
Interest income   5,511       4,618  
Interest expense   (90 )     (266 )
Other (expense) income, net   (111 )     126  
Income before income taxes   43,861       60,677  
Income tax expense   (9,432 )     (14,266 )
Net income   34,429       46,411  
Less: net income attributable to redeemable noncontrolling interest         54  
Net income attributable to Cavco common stockholders $ 34,429     $ 46,357  
       
Net income per share attributable to Cavco common stockholders      
Basic $ 4.15     $ 5.35  
Diluted $ 4.11     $ 5.29  
Weighted average shares outstanding      
Basic   8,286,476       8,670,434  
Diluted   8,372,254       8,758,080  
   
CAVCO INDUSTRIES, INC.
OTHER OPERATING DATA
(Dollars in thousands)
(Unaudited)
   
  Three Months Ended
  June 29,
2024
  July 1,
2023
Capital expenditures $ 4,914     $ 4,183  
Depreciation $ 4,369     $ 4,174  
Amortization of other intangibles $ 392     $ 392  

For additional information, contact:

Mark Fusler
Corporate Controller and Investor Relations
investor_relations@cavco.com

Phone: 602-256-6263
On the Internet: www.cavcoindustries.com


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