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Financial Performance - Net revenue for fiscal year 2025 was $2,015,458 thousand, a 12.3% increase from $1,794,792 thousand in fiscal year 2024 [192]. - Total homes sold increased to 19,753 in fiscal year 2025, up 16.7% from 16,928 in fiscal year 2024 [192]. - Gross profit for factory-built housing increased to $441,796 thousand, a 10.7% rise from $398,919 thousand in the previous year [195]. - Income before income taxes for fiscal year 2025 was $211,070 thousand, reflecting a 6.0% increase from $199,180 thousand in fiscal year 2024 [200]. - The effective tax rate for fiscal year 2025 was 19.0%, down from 20.7% in fiscal year 2024, attributed to increased tax credits [201]. Order Backlog - The company's home order backlog as of March 29, 2025, was approximately $197 million, an increase of $6 million from $191 million a year earlier [185]. Expenses - Selling, general and administrative expenses rose to $275,315 thousand, an 11.0% increase from $247,920 thousand in fiscal year 2024 [196]. Cash Flow - Cash and cash equivalents at the beginning of fiscal year 2025 were $368.8 million, an increase from $283.5 million in fiscal year 2024, representing a change of $85.3 million [205]. - Net cash provided by operating activities decreased by $46.2 million to $178.5 million in fiscal year 2025, primarily due to increased working capital needs [205]. - Net cash used in financing activities increased by $40.2 million to $147.9 million in fiscal year 2025, primarily related to common stock repurchases [209]. Loan Originations - Consumer loan originations decreased by $24.7 million to $66.1 million in fiscal year 2025, down from $90.8 million in fiscal year 2024 [206]. - Commercial loan originations increased by $32.1 million to $143.4 million in fiscal year 2025, compared to $111.2 million in fiscal year 2024 [207]. Financial Services - The financial services segment's net revenue increased by 5.3% to $82,347 thousand, primarily due to higher insurance premiums [194]. Market Challenges - The company continues to face challenges in the secondary market for manufactured home-only loans, impacting industry growth [188]. Production and Workforce Management - The company is focused on balancing production levels and workforce size with demand to maximize efficiencies [185]. Debt and Credit Facilities - The company has a $75.0 million revolving credit facility, with no amounts outstanding as of March 29, 2025 [203]. - The company anticipates compliance with its debt covenants, projecting cash availability to exceed operational needs for the next year [203]. Interest Rate and Exchange Rate Sensitivity - A 1% unfavorable change in average interest rates would reduce the fair value of consumer loans receivable by approximately $1.2 million [221]. - A 10% change in exchange rates could have resulted in a revaluation loss of approximately $0.7 million as of March 29, 2025 [223].

Financial Data and Key Metrics Changes - Net revenue for Q4 FY2025 was $508.4 million, an increase of $88.2 million or 21% compared to $420.1 million in the prior year [11] - Consolidated gross margin decreased to 22.8%, down 80 basis points from 23.6% in the same period last year [13] - Net income was $36.3 million compared to $33.9 million in the same quarter of the prior year, with diluted earnings per share at $4.47 versus $4.03 [15] Business Line Data and Key Metrics Changes - In the factory-built housing segment, net revenue was $487.9 million, up 22.4% from $398.5 million in the prior year quarter, driven by a 28.5% increase in homes sold [11][12] - Financial Services segment net revenue decreased to $20.5 million, down 5.2% from $21.6 million in the prior year, due to fewer loan sales and insurance policies [12] Market Data and Key Metrics Changes - Unit shipments increased by almost 29% year over year, indicating a positive market activity across retail channels [7][18] - The backlog was down sequentially but showed a healthy increase in March, with plants holding 5 to 7 weeks of backlog [8] Company Strategy and Development Direction - The company is focusing on a rebranding strategy, renaming manufacturing plants to the Cavco name to improve customer recognition and streamline product lines [9][43] - Continued strategic investments in plant improvements and acquisitions have increased production capacity, supported by strong cash generation and a debt-free balance sheet [9][10] Management's Comments on Operating Environment and Future Outlook - Management noted economic uncertainty in Q4 but highlighted a positive uptick in buyer activity in March, indicating a potential recovery in demand [5][7] - The company remains confident in its ability to manage production rates and backlogs, with expectations for increased production in the upcoming quarters [25] Other Important Information - The company repurchased approximately $33 million of stock in Q4, cumulatively buying back 15.5% of outstanding shares since the program's inception [10][16] - The effective income tax rate decreased to 15.4% for Q4, attributed to higher ENERGY STAR tax credits and stock option exercise benefits [15] Q&A Session Summary Question: Expectations for production rates in Q1 relative to Q4 - Management indicated that production rates are expected to remain consistent with Q4, with some plants looking to increase production based on backlog growth [22][25] Question: Impact of February weather on production and margins - Management acknowledged that February's unusual weather caused lost production days, which may have exerted downward pressure on gross margins, but the impact was not deemed significant [36][38] Question: Details on pricing competition and market dynamics - Management noted that pricing competition is more pronounced in lower-priced homes, particularly single wides, while overall pricing pressure has not been widespread across the country [60][64] Question: Impact of tariffs on cost of goods sold - Management confirmed that tariffs did not impact Q4 results, but they expect limited effects in Q1 and potentially more significant impacts in Q2 as tariffs take effect [79][80] Question: Insights from recent congressional hearings on housing supply - Management emphasized the importance of focusing on supply issues in the housing market and highlighted potential legislative changes that could benefit the industry [84][86]

Financial Data and Key Metrics Changes - Net revenue for Q4 FY2025 was $508.4 million, an increase of $88.2 million or 21% compared to $420.1 million in the prior year [12] - Consolidated gross margin decreased to 22.8%, down 80 basis points from 23.6% in the same period last year [14] - Net income was $36.3 million compared to $33.9 million in the same quarter of the prior year, with diluted earnings per share at $4.47 versus $4.03 [15] Business Line Data and Key Metrics Changes - Factory built housing segment net revenue was $487.9 million, up 22.4% from $398.5 million in the prior year quarter, driven by a 28.5% increase in homes sold [12][13] - Financial Services segment net revenue decreased to $20.5 million, down 5.2% from $21.6 million in the prior year, due to fewer loan sales and insurance policies [13] Market Data and Key Metrics Changes - Unit shipments increased by almost 29% year over year, indicating a positive market activity across retail channels [7][19] - The backlog was down sequentially, with five to seven weeks of backlog across the system [8] Company Strategy and Development Direction - The company is focusing on a rebranding strategy to unify its manufacturing plants under the Cavco name, enhancing customer search efficiency and leveraging digital marketing [10][41] - Continued strategic investments in plant improvements and acquisitions have increased production capacity, supported by strong cash generation and a debt-free balance sheet [10] Management's Comments on Operating Environment and Future Outlook - Management noted economic uncertainty in Q4 but highlighted a positive uptick in orders in March, indicating buyer activity in the housing market [5][7] - The company remains confident in its ability to manage production rates and backlogs, with expectations for increasing production rates across many plants [25] Other Important Information - The company repurchased approximately $33 million of stock in Q4, cumulatively buying back 15.5% of outstanding shares since the buyback program began [11][16] - The effective income tax rate decreased to 15.4% due to higher ENERGY STAR tax credits and greater tax benefits from stock option exercises [15] Q&A Session Summary Question: Expectations for production rates for fiscal first quarter - Management indicated production rates are expected to remain consistent with Q4, with some plants looking to increase production based on backlog growth [23][25] Question: Impact on gross margin and operating margins in Q1 - Management noted that while there was downward pressure from reduced average selling prices, lower input costs could help stabilize margins [29][30] Question: Details on February's lost production days - Management confirmed that unusual weather in February affected production, particularly in Texas and Southeast states, resulting in about 24 lost operating days [35][36] Question: Clarification on pricing seasonality - Management stated that pricing does not typically show seasonality, and while there has been some price pressure, it is not uniform across all regions [72][73] Question: Impact of tariffs on cost of goods sold - Management confirmed that tariffs did not impact Q4 results, but potential effects could be seen in Q1 and Q2 as costs adjust [77][78] Question: Activity in March and April compared to site builders - Management noted that the manufactured housing market is less affected by inventory dynamics compared to site builders, leading to stronger demand [96][97]

Cavco (CVCO) came out with quarterly earnings of $5.40 per share, beating the Zacks Consensus Estimate of $5.23 per share. This compares to earnings of $4.03 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 3.25%. A quarter ago, it was expected that this homebuilder would post earnings of $4.12 per share when it actually produced earnings of $6.90, delivering a surprise of 67.48%.Over the last four quarters, the company has sur ...

Net income per diluted share was $4.47 and Adjusted net income (non-GAAP) per diluted share was $5.40 after previously announced non-cash chargePHOENIX, May 22, 2025 (GLOBE NEWSWIRE) -- Cavco Industries, Inc. (Nasdaq: CVCO) today announced financial results for the fourth quarter and fiscal year ended March 29, 2025. Quarterly Highlights Net revenue of $508 million up 21% from $420 million in the prior year quarter.Gross profit as a percentage of Net revenue was 22.8% with factory-built housing Gross profit ...

Core Viewpoint - Cavco Industries, Inc. is set to release its earnings for the fourth quarter and fiscal year ending March 29, 2025, on May 22, 2025, with a subsequent live discussion scheduled for May 23, 2025 [1]. Company Overview - Cavco Industries, Inc. is headquartered in Phoenix, Arizona, and specializes in designing and producing factory-built housing products, primarily distributed through a network of independent and company-owned retailers [3]. - The company is recognized as one of the largest producers of manufactured and modular homes in the United States, based on reported wholesale shipments [3]. - Cavco also leads in the production of park model RVs, vacation cabins, and factory-built commercial structures [3]. - The finance subsidiary, CountryPlace Mortgage, is an approved seller/servicer for Fannie Mae and Freddie Mac, and a Ginnie Mae mortgage-backed securities issuer, offering various mortgage products [3]. - The insurance subsidiary, Standard Casualty, provides property and casualty insurance to owners of manufactured homes [3].

Group 1 - Cavco Industries, Inc. celebrates 60 years in the affordable housing market and introduces a new tagline, "Where Exceptional Meets Affordable" [5] - The company is unifying its manufacturing brand lineup under the Cavco name to strengthen national brand identity and recognition [6] - Product segmentation will be streamlined to enhance digital marketing effectiveness and simplify the homebuying process, allowing easier identification of Cavco-built homes [7] Group 2 - The strategic brand realignment aims to improve customer experience and market approach, leveraging investments in digital marketing [8] - As a result of the brand realignment, Cavco will incur a non-cash charge of approximately $9.9 million in pre-tax earnings and a reduction of about $7.6 million in net income [8] - Cavco is one of the largest producers of manufactured and modular homes in the U.S., with a significant presence in park model RVs and factory-built commercial structures [9]

Core Viewpoint - Investors are seeking growth stocks that can deliver above-average growth and exceptional returns, but identifying such stocks can be challenging due to inherent volatility and risks [1] Group 1: Company Overview - Cavco (CVCO) is highlighted as a recommended growth stock with a favorable Growth Score and a top Zacks Rank [2] - The company has a historical EPS growth rate of 29.4%, with projected EPS growth of 19.4% this year, significantly outperforming the industry average of 5.4% [5] Group 2: Financial Metrics - Cavco's asset utilization ratio (sales-to-total-assets ratio) is 1.4, indicating that the company generates $1.4 in sales for every dollar in assets, surpassing the industry average of 1.23 [6] - The company's sales are expected to grow by 13.2% this year, while the industry average is projected at 0% [7] Group 3: Earnings Estimates - There has been a positive trend in earnings estimate revisions for Cavco, with the Zacks Consensus Estimate for the current year increasing by 21.8% over the past month [9] - Cavco has earned a Growth Score of B and carries a Zacks Rank 1 due to these positive earnings estimate revisions, positioning it well for potential outperformance [11]

Core Insights - Three stocks are highlighted with strong buy rankings and positive momentum characteristics for investors to consider on February 5th Group 1: Cavco Industries (CVCO) - Cavco Industries designs and produces factory-built housing products, primarily distributed through independent and company-owned retailers [1] - The company has a Zacks Rank of 1 (Strong Buy) and a 3.1% increase in the Zacks Consensus Estimate for current year earnings over the last 60 days [1] - Shares gained 12.7% over the last three months, outperforming the S&P 500's gain of 4.3%, and possesses a Momentum Score of A [2] Group 2: Shore Bancshares (SHBI) - Shore Bancshares is a bank holding company engaged in banking through two subsidiaries [2] - The company also has a Zacks Rank of 1 and a 6.3% increase in the Zacks Consensus Estimate for current year earnings over the last 60 days [2] - Shares gained 10.7% over the last three months, again outperforming the S&P 500's gain of 4.3%, and possesses a Momentum Score of A [2] Group 3: Flexsteel Industries (FLXS) - Flexsteel Industries is involved in the design, manufacture, and sale of a broad line of quality upholstered furniture for various uses [3] - The company holds a Zacks Rank of 1 and an 8.6% increase in the Zacks Consensus Estimate for current year earnings over the last 60 days [3] - Shares gained 5.4% over the last three months, slightly outperforming the S&P 500's gain of 4.3%, and possesses a Momentum Score of B [4]