Cavco Industries Reports Fiscal 2025 First Quarter Results

Cavco Industries, Inc. (“we,” “our,” the “Company” or “Cavco”) announced financial results for the first fiscal quarter ended June 29, 2024.

Quarterly Highlights

• Net revenue was $478 million, up $2 million or 0.4% compared to $476 million in the first quarter of the prior year, primarily on home sales volume growth.
• Sequentially, home sales volume is up 20% and capacity utilization is up to approximately 65% from approximately 60%.
• Factory-built housing Gross profit as a percentage of Net revenue was 22.6%, compared to 24.8% in the prior year.
• Financial services Gross loss as a percentage of Net revenue was (0.6)%, compared to Gross profit of 24.0% in the prior year. The segment pretax net loss of $5.2 million resulted in a reduction in Diluted net income per share of approximately $0.49 on an after tax basis. The loss was caused by unusually high insurance claims from multiple weather events in Texas, as well as the wildfires in New Mexico.
• Income before income taxes was $44 million, down $17 million or 27.9% compared to $61 million in the prior year period.
• Net income per diluted share attributable to Cavco common stockholders was $4.11 compared to $5.29 in the prior year quarter.
• Backlogs totaled $232 million at the end of the quarter, up $41 million, or 21.4%, from $191 million three months ago, with modules in the backlog growing 22%.
• Stock repurchases were approximately $29 million in the quarter.

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

• In the factory-built housing segment, the increase in Net revenue for the three months was due to higher home sales volume, partially offset by lower home selling prices.
• Financial services segment Net revenue increased for the three months from more insurance policies
  in force in the current period compared to the prior year, partially offset by reduced revenue from loan sales.
• In the factory-built housing segment, Gross profit as a percent of Net revenue for the three months was down primarily due to lower average selling price, partially offset by lower input costs.
• In the financial services segment, Gross profit and Income from operations for the three months ended was negatively impacted by higher insurance claims from weather related events.
• Selling, general and administrative expenses increased for the three months as a result of increases in compensation including acquired retail locations, partially offset by reduced incentive compensation from lower earnings.

For full results click here.

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.

Contact:

Mark Fusler – Corporate Controller & Investor Relations – investor_relations@cavco.com – (602) 256-6263

Source: Cavco Industries, Inc.