Plano, TX, Oct. 22, 2024 (GLOBE NEWSWIRE) -- For additional information, contact:Mark FuslerCorporate Controller and Investor Relationsinvestor_relations@cavco.comNews ReleasePhone: 602-256-6263On the Internet: www.cavcohomes.com FOR IMMEDIATE RELEASE CAVCO INDUSTRIES RELEASES 2024 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT Cavco Industries unveils its 2024 Environmental, Social and Governance Report, emphasizing its dedication to affordable housing solutions, environmental sustainability and transparent g ...

After dropping to their lowest level in two years following the Federal Reserve's September rate cut announcement, 30-year fixed-rate mortgages have climbed higher once again. Nonetheless, the environment is looking more favorable for homebuilding companies, as buyers are incentivized to make offers, and companies are better able to access loans to fund development projects and growth. The top homebuilder stocks include major operations like D.R. Horton Inc. NYSE: DHI and Lennar Corp. NYSE: LEN, each of whi ...

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Financial Performance - For the three months ended June 29, 2024, net factory-built housing revenue increased to $477.6 million, a 0.4% increase from $475.9 million in the same period last year[72]. - Gross profit for factory-built housing decreased to $103.5 million, an 8.7% decline from $113.4 million in the prior year[76]. - Selling, general and administrative expenses increased to $64.9 million, a 5.1% increase from $61.7 million in the same period last year[77]. - The average net revenue per factory-built home sold was $97,024, down 2.7% from $99,762 in the previous year[72]. - Financial services net revenue increased to $19.6 million, a 4.2% increase from $18.8 million in the same period last year[72]. - The gross profit margin as a percentage of net revenue for factory-built housing was 22.6%, down from 24.8% in the previous year[76]. Backlog and Shipments - The backlog at June 29, 2024, was $232 million, up $41 million from $191 million at March 30, 2024, and up $55 million compared to $177 million at July 1, 2023[71]. - The manufactured housing industry saw a 19.4% increase in home shipments year-to-date through May 2024, totaling 42,650 shipments compared to 35,714 in the same period last year[64]. Cash Flow and Financing - Net cash provided by operating activities decreased by $34,900,000 to $368,753,000 for the three months ended June 29, 2024, compared to $283,490,000 for the same period in 2023[85][86]. - Cash, cash equivalents, and restricted cash at the end of the period increased by $12,558,000 to $378,937,000 compared to $366,379,000 at the end of the same period in 2023[85]. - Net cash used in financing activities was primarily for the repurchase of common stock, totaling $31,863,000 for the three months ended June 29, 2024[87]. - The company maintains a $50 million Revolving Credit Facility with no amounts outstanding as of June 29, 2024, and may seek additional financing depending on operating results and strategic opportunities[82]. Tax and Interest - Income tax expense decreased by $4,834,000, or 33.9%, to $9,432,000 due to lower profit before tax and a lower effective tax rate of 21.5% compared to 23.5% in the prior year[80][81]. - Interest income increased by $893,000, or 19.3%, to $5,511,000 for the three months ended June 29, 2024, compared to $4,618,000 for the same period in 2023[80]. Strategic Focus and Operations - The company operates 31 homebuilding production lines across various states and has a significant retail presence with 79 Company-owned stores[63]. - The company is focused on building energy-efficient homes and expanding its market presence through niche opportunities and commercial loan programs[66]. - The company expects to continue evaluating potential acquisitions and strategic investments to support growth opportunities[82]. Accounting and Controls - There were no significant changes to critical accounting estimates during the three months ended June 29, 2024[88]. - The company’s disclosure controls and procedures were deemed effective as of June 29, 2024[91]. Consumer Loans - Consumer loan originations decreased by $15.9 million to $20.8 million for the three months ended June 29, 2024, from $36.7 million for the same period in 2023[86].

Cavco Industries, Inc. (NASDAQ:CVCO) Q1 2025 Earnings Conference Call August 2, 2024 1:00 PM ET Company Participants Mark Fusler – Corporate Controller and Investor Relations Bill Boor – President and Chief Executive Officer Allison Aden – Executive Vice President and Chief Financial Officer Paul Bigbee – Chief Accounting Officer Conference Call Participants Daniel Moore – CJS Securities Greg Palm – Craig-Hallum Jay McCanless – Wedbush Operator Good day and thank you for standing by. Welcome to the First Qu ...

Company Performance - Cavco reported quarterly earnings of $4.11 per share, missing the Zacks Consensus Estimate of $4.97 per share, and down from $5.29 per share a year ago, representing an earnings surprise of -17.30% [1] - The company posted revenues of $477.6 million for the quarter ended June 2024, missing the Zacks Consensus Estimate by 2.09%, and slightly up from $475.88 million year-over-year [2] - Over the last four quarters, Cavco has not surpassed consensus EPS estimates and has topped consensus revenue estimates only once [2] Stock Performance and Outlook - Cavco shares have increased approximately 19.6% since the beginning of the year, outperforming the S&P 500's gain of 15.8% [3] - The company's earnings outlook is crucial for investors, with current consensus EPS estimates at $5.35 for the coming quarter and $19.77 for the current fiscal year [7] Industry Context - The Building Products - Mobile Homes and RV Builders industry, to which Cavco belongs, is currently ranked in the bottom 4% of over 250 Zacks industries, indicating potential challenges ahead [8] - The performance of Cavco's stock may be influenced by the overall outlook for the industry, as research shows that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [8]

[Cavco Industries Fiscal 2025 First Quarter Results](index=1&type=section&id=Cavco%20Industries%20Fiscal%202025%20First%20Quarter%20Results) [Quarterly Highlights](index=1&type=section&id=Quarterly%20Highlights) Cavco's Q1 FY2025 net revenue increased slightly to $478M, but diluted EPS fell to $4.11 due to financial services losses from high claims | Financial Metric | Q1 FY2025 | Q1 FY2024 | Change | | :--- | :--- | :--- | :--- | | Net Revenue | $478M | $476M | +0.4% | | Income Before Income Taxes | $44M | $61M | -27.9% | | Diluted EPS | $4.11 | $5.29 | -22.3% | | Backlog (End of Quarter) | $232M | N/A | +21.4% (QoQ) | - The financial services segment incurred a pretax net loss of **$5.2 million**, reducing diluted EPS by approximately **$0.49** after tax, attributed to unusually high insurance claims from weather events in Texas and wildfires in New Mexico[2](index=2&type=chunk) - Operational momentum in the housing segment was strong, with home sales volume up **20%** sequentially and factory capacity utilization increasing from approximately **60%** to **65%**[2](index=2&type=chunk) - The company repurchased approximately **$29 million** of its stock during the quarter[3](index=3&type=chunk) [Management Commentary](index=1&type=section&id=Management%20Commentary) Management noted strong housing segment momentum and growing backlog, despite high weather-related insurance claims impacting consolidated results - Management confirmed that strong momentum from the end of fiscal 2024 continued into the first quarter, evidenced by increasing orders, production, and a growing backlog[3](index=3&type=chunk) - Consolidated results were negatively impacted by very high claims costs in the insurance operations, driven by unusual storm activity in Texas and fires in New Mexico[3](index=3&type=chunk) - Despite the unpredictable nature of weather events, the CEO stated that the insurance operation has performed well over time and exposure is actively managed[3](index=3&type=chunk) [Financial Performance Analysis](index=2&type=section&id=Financial%20Performance%20Analysis) Financial performance was mixed, with housing revenue up slightly but gross margin compressed, while financial services swung to a loss due to high claims [Revenue Analysis](index=2&type=section&id=Revenue%20Analysis) Overall net revenue increased slightly by 0.4%, driven by a modest rise in both factory-built housing and financial services segments | Segment | Q1 FY2025 Revenue | Q1 FY2024 Revenue | Change (%) | | :--- | :--- | :--- | :--- | | Factory-built housing | $458.0M | $457.1M | +0.2% | | Financial services | $19.6M | $18.8M | +4.2% | | **Total Net Revenue** | **$477.6M** | **$475.9M** | **+0.4%** | - The increase in factory-built housing revenue was driven by a **3.0%** rise in homes sold (**4,721** vs. **4,582**), which was partially offset by a **2.7%** decrease in the net revenue per home sold[4](index=4&type=chunk) - Financial services revenue increased due to a higher number of insurance policies in force compared to the prior year[5](index=5&type=chunk) [Profitability Analysis](index=2&type=section&id=Profitability%20Analysis) Gross profit and income from operations significantly declined due to lower housing margins and substantial losses in financial services | Profitability Metric | Q1 FY2025 | Q1 FY2024 | Change (%) | | :--- | :--- | :--- | :--- | | **Gross Profit** | | | | | Factory-built housing | $103.5M | $113.4M | -8.7% | | Financial services | $(0.1)M | $4.5M | -102.4% | | **Total Gross Profit** | **$103.4M** | **$117.9M** | **-12.3%** | | **Income from Operations** | | | | | Factory-built housing | $43.8M | $57.3M | -23.6% | | Financial services | $(5.2)M | $(1.1)M | -356.4% | | **Total Income from Operations** | **$38.6M** | **$56.2M** | **-31.4%** | - The gross margin for factory-built housing declined to **22.6%** from **24.8%** year-over-year, primarily due to lower average selling prices, which was partially offset by lower input costs[2](index=2&type=chunk)[6](index=6&type=chunk) - The financial services segment's profitability was severely impacted by higher insurance claims from weather-related events, causing its gross margin to plummet from **24.0%** to **-0.6%**[6](index=6&type=chunk)[7](index=7&type=chunk) - Selling, general and administrative (SG&A) expenses rose **5.1%** to **$64.9 million**, mainly from increased compensation related to acquired retail locations[6](index=6&type=chunk)[8](index=8&type=chunk) [Net Income and EPS](index=3&type=section&id=Net%20Income%20and%20EPS) Net income attributable to Cavco and diluted EPS both decreased significantly year-over-year | Metric | Q1 FY2025 | Q1 FY2024 | Change (%) | | :--- | :--- | :--- | :--- | | Net Income Attributable to Cavco | $34.4M | $46.4M | -25.7% | | Diluted Net Income Per Share | $4.11 | $5.29 | -22.3% | [Financial Statements](index=5&type=section&id=Financial%20Statements) Unaudited financial statements show stable assets at $1.38 billion but a decline in net income to $34.4 million due to profitability pressures [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) The balance sheet shows an increase in total assets to $1.38 billion and stable stockholders' equity | Balance Sheet Item | June 29, 2024 | March 30, 2024 | | :--- | :--- | :--- | | Total Current Assets | $877.6M | $851.8M | | **Total Assets** | **$1,380.7M** | **$1,354.2M** | | Total Current Liabilities | $296.0M | $273.3M | | **Total Liabilities** | **$342.1M** | **$320.8M** | | **Total Stockholders' Equity** | **$1,038.5M** | **$1,033.4M** | - Cash and cash equivalents increased to **$359.3 million** from **$352.7 million** at the end of the prior fiscal year[14](index=14&type=chunk) [Consolidated Statements of Income](index=6&type=section&id=Consolidated%20Statements%20of%20Income) The income statement reflects stable net revenue but significant declines in gross profit and net income | Income Statement Item | Q1 FY2025 | Q1 FY2024 | | :--- | :--- | :--- | | Net Revenue | $477.6M | $475.9M | | Gross Profit | $103.4M | $117.9M | | Income from Operations | $38.6M | $56.2M | | Income Before Income Taxes | $43.9M | $60.7M | | **Net Income** | **$34.4M** | **$46.4M** | [Other Operating Data](index=6&type=section&id=Other%20Operating%20Data) Capital expenditures and depreciation remained relatively consistent year-over-year | Operating Data | Q1 FY2025 | Q1 FY2024 | | :--- | :--- | :--- | | Capital Expenditures | $4.9M | $4.2M | | Depreciation | $4.4M | $4.2M | | Amortization of other intangibles | $0.4M | $0.4M | [Corporate Information](index=3&type=section&id=Corporate%20Information) This section outlines Cavco's core business, upcoming investor call details, and standard forward-looking statement disclaimers [About Cavco](index=3&type=section&id=About%20Cavco) Cavco Industries is a major US producer of manufactured and modular homes, offering related financial services through subsidiaries - Cavco Industries, Inc. is a major US producer of manufactured and modular homes, marketed under brands including Cavco, Fleetwood, and Palm Harbor[12](index=12&type=chunk) - The company's subsidiaries provide related financial services: CountryPlace Mortgage offers home loans, and Standard Casualty provides property and casualty insurance to manufactured homeowners[12](index=12&type=chunk) [Conference Call Information](index=3&type=section&id=Conference%20Call%20Information) Management will host a conference call on August 2, 2024, to discuss the first quarter results - Management will host a conference call to review the Q1 results on August 2, 2024, at 1:00 p.m. Eastern Time[11](index=11&type=chunk) [Forward-Looking Statements](index=4&type=section&id=Forward-Looking%20Statements) The report includes forward-looking statements subject to risks and uncertainties, advising readers to consult SEC filings - The report contains forward-looking statements regarding future business and financial performance, which are subject to risks and uncertainties; readers are advised to consult the company's SEC filings for a full understanding of these risks[13](index=13&type=chunk)

Core Insights - Cavco Industries, Inc. reported a net revenue of $478 million for the first fiscal quarter ended June 29, 2024, reflecting a slight increase of 0.4% compared to $476 million in the same quarter of the previous year, driven primarily by growth in home sales volume [1][3] - The company experienced a significant sequential increase in home sales volume of 20% and improved capacity utilization, rising to approximately 65% from about 60% [1] - However, the financial services segment reported a gross loss of (0.6)% of net revenue, a stark contrast to a gross profit of 24.0% in the prior year, largely due to high insurance claims from weather-related events [1][4] Financial Performance - Net income attributable to Cavco common stockholders was $34.4 million, down 25.7% from $46.4 million in the prior year quarter, resulting in a diluted net income per share of $4.11 compared to $5.29 [5][11] - Income before income taxes decreased by 27.9% to $44 million from $61 million in the prior year [1][11] - The gross profit margin as a percentage of net revenue fell to 21.7% from 24.8% in the previous year, with factory-built housing gross profit margin at 22.6%, down from 24.8% [4][11] Operational Highlights - Backlogs at the end of the quarter totaled $232 million, an increase of 21.4% from $191 million three months prior, with modules in the backlog growing by 22% [1] - The factory-built housing segment saw a slight increase in net revenue to $458 million, up 0.2% from $457 million, while the financial services segment's revenue increased by 4.2% to $19.6 million [3][11] - Selling, general, and administrative expenses rose by 5.1% to $64.9 million, attributed to increased compensation costs [4][11] Market Commentary - The CEO noted that the momentum from the previous quarter continued into the first quarter, with increasing orders leading to production increases and a growing backlog [2] - The company is actively managing its exposure to insurance claims, which were significantly impacted by severe weather events in Texas and wildfires in New Mexico [2]

Industry Overview - The US housing industry is currently experiencing a favorable dynamic due to expectations of interest rate cuts, which could lead to lower mortgage rates and increased demand for homebuilders [1][3] - The homebuilder industry has outperformed the broader market, with companies like NVR also benefiting from this trend [1] Company Analysis: Cavco Industries - Cavco Industries has seen significant benefits from the current housing market dynamics, as homeowners are reluctant to sell their homes due to high mortgage rates, directing demand towards homebuilders [2][6] - The company targets consumers seeking affordable housing options, which is increasingly relevant as housing affordability remains low and many consumers are trading down in their spending [6][13] - Despite missing revenue and EPS expectations in Q4, management remains optimistic about the underlying business, highlighting strong order growth for six consecutive quarters [17] Market Dynamics - The current 30-year fixed mortgage rate is around 7%, which has been stable for several months, making it less appealing for homeowners to sell and buy new homes at higher rates [2] - As interest rates are expected to fall, demand may split between new and existing homes, potentially impacting the favorable dynamics currently benefiting Cavco [3] - The affordability of housing has slightly improved, but remains low compared to historical levels, pushing consumers towards more affordable housing options like those offered by Cavco [3][11] Consumer Behavior - The US consumer is showing signs of weakness, with decreased savings and lower consumer confidence, leading to a trend of trading down in spending habits [11][20] - A significant portion of consumers are changing retailers and brands to seek lower prices, which aligns with Cavco's market positioning as an affordable alternative [11][20] Valuation and Future Outlook - Cavco's stock is currently trading above the analyst's target price, but there is optimism for further growth as the housing market dynamics and consumer behavior remain favorable [18] - The anticipated rate cuts by the Federal Reserve are expected to act as a catalyst for increased earnings and stock performance for Cavco [18][20]

Company Overview - Cavco Industries, Inc. is headquartered in Phoenix, Arizona and is a major producer of factory-built housing products in the United States, focusing on manufactured and modular homes based on reported wholesale shipments [2] - The company markets its products under various brand names including Cavco, Fleetwood, Palm Harbor, and others, and is also a leading producer of park model RVs, vacation cabins, and factory-built commercial structures [2] - Cavco's finance subsidiary, CountryPlace Mortgage, offers a range of mortgage products for purchasers of factory-built homes, while its insurance subsidiary, Standard Casualty, provides property and casualty insurance to manufactured home owners [2] Earnings Release Information - Cavco Industries will release its earnings for the first quarter ended June 29, 2024, on August 1, 2024, after the market closes [4] - Senior management will discuss the earnings results in a live webcast scheduled for August 2, 2024, at 1:00 p.m. Eastern Time [4][3]