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]

Date: August 2, 2024 Listen via Telephone: To participate in the call, please register here to receive the dial-in number and your unique PIN. 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 o ...

Financial Performance - Net revenue for fiscal year 2024 was $1,794.8 million, a decrease of 16.2% from $2,142.7 million in fiscal year 2023, primarily due to lower sales volume and selling prices in the factory-built housing segment [56]. - Total homes sold decreased by 12.6% to 16,928 in fiscal year 2024 from 19,376 in fiscal year 2023 [56]. - Gross profit for fiscal year 2024 was $426.9 million, down 23.1% from $554.9 million in fiscal year 2023, with gross profit margin decreasing to 23.8% from 25.9% [60]. - The factory-built housing segment's gross profit decreased by 23.8% to $398.9 million, attributed to lower home sales prices and fewer units sold [60]. - Income before income taxes for fiscal year 2024 was $199.2 million, a decrease of 35.1% from $306.8 million in fiscal year 2023 [68]. Expenses and Costs - Selling, general and administrative expenses as a percentage of net revenue increased to 13.8% in fiscal year 2024 from 12.1% in fiscal year 2023 [61]. - Selling, general and administrative expenses decreased by $19.5 million due to lower wages and benefits, offset by a $19.1 million increase from the acquisition of Solitaire operations [67]. Cash and Liquidity - Cash, cash equivalents, and restricted cash at the end of fiscal year 2024 increased to $368.8 million, up $85.3 million from $283.5 million at the end of fiscal year 2023 [75]. - Net cash provided by operating activities decreased by $31.0 million to $224.7 million in fiscal year 2024 compared to $255.7 million in fiscal year 2023 [75]. - The company maintains a $50.0 million revolving credit facility, with no amounts outstanding as of March 30, 2024 [73]. - The company anticipates compliance with its debt covenants, projecting cash availability to exceed operational needs for the next year [73]. Interest and Loans - Interest income rose to $21.0 million in fiscal year 2024 from $10.7 million in fiscal year 2023, driven by higher interest rates [63]. - Consumer loan originations decreased by $87.2 million to $90.8 million in fiscal year 2024, while proceeds from the sale of consumer loans decreased by $94.5 million [76]. - Commercial loan originations decreased by $20.8 million to $111.2 million in fiscal year 2024, with proceeds from collections increasing by $19.1 million [77]. - A 1% increase in average interest rates could reduce the fair value of consumer loans receivable by approximately $1.1 million [94]. Backlog and Market Focus - The home order backlog as of March 30, 2024, was approximately $191 million, down $53 million from $244 million a year earlier [47]. - The company continues to focus on balancing production levels and workforce size with demand to maximize efficiencies [47]. - The company is investing in community-based lending initiatives to expand lending availability in the manufactured home industry [51]. Taxation - Effective tax rate for fiscal year 2024 was 20.7%, down from 21.5% in fiscal year 2023, primarily due to $4.2 million in tax credits related to energy-efficient homes [66].

Cavco Industries, Inc. (NASDAQ:CVCO) Q4 2024 Earnings Conference Call May 24, 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 Greg Palm - Craig-Hallum Jay McCanless - Wedbush Securities Daniel Moore - CJS Securities Michael Chapman - Aviance Capital Partners Operator Good day an ...

Phone: 602-256-6263 On the Internet: www.cavcoindustries.com FOR IMMEDIATE RELEASE News Release For additional information, contact: Mark Fusler Corporate Controller and Investor Relations investor_relations@cavco.com CAVCO INDUSTRIES REPORTS FISCAL 2024 FOURTH QUARTER AND YEAR END RESULTS PHOENIX, May 23, 2024 (GLOBE NEWSWIRE) – Cavco Industries, Inc. (Nasdaq: CVCO) today announced financial results for the fourth quarter and fiscal year ended March 30, 2024. Quarterly Highlights Full Fiscal Year Highlight ...

Cavco, which belongs to the Zacks Building Products - Mobile Homes and RV Builders industry, posted revenues of $420.12 million for the quarter ended March 2024, missing the Zacks Consensus Estimate by 15.89%. This compares to year-ago revenues of $476.38 million. The company has topped consensus revenue estimates just once over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on mana ...

PHOENIX, May 23, 2024 (GLOBE NEWSWIRE) -- Cavco Industries, Inc. (Nasdaq: CVCO) today announced financial results for the fourth quarter and fiscal year ended March 30, 2024. Quarterly Highlights Full Fiscal Year Highlights Commenting on the results, Bill Boor, President and Chief Executive Officer, said, "The quarter started with several plants missing operating days due to thin backlogs coming out of the holidays. However, as the quarter progressed, order rates improved and almost all plants were back to ...

Date: May 24, 2024 Time: 1:00 p.m. ET Listen via Internet: https://investor.cavco.com/ Listen via Telephone: To participate in the call, please register here to receive the dial-in number and your unique PIN. If you are unable to participate during the live webcast, the call will be available for 90 days on https://investor.cavco.com/. Cavco Industries, Inc., headquartered in Phoenix, Arizona, designs and produces factory-built housing products primarily distributed through a network of independent and Comp ...

Cavco (CVCO) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #2 (Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.Individual investor ...