[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]

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 ...

[Financial Performance Overview](index=1&type=section&id=Financial%20Performance%20Overview) This section provides a comprehensive review of Cavco's financial results for Q4 and the full fiscal year 2024, including key highlights, management commentary, and detailed segment analysis [Q4 & Fiscal Year 2024 Highlights](index=1&type=section&id=Q4%20%26%20Fiscal%20Year%202024%20Highlights) Cavco reported a year-over-year decline in financial performance for both the fourth quarter and the full fiscal year 2024, with Q4 net revenue at **$420 million** and full-year net revenue at **$1.8 billion** Q4 FY2024 Financial Performance | Metric | Q4 FY2024 | Q4 FY2023 | Change | | :--- | :--- | :--- | :--- | | Net Revenue | $420M | $476M | (11.8)% | | Net Income | $34M | $47M | (28.3)% | | Diluted EPS | $4.03 | $5.39 | (25.2)% | | Gross Profit Margin | 23.6% | 25.3% | (170 bps) | FY2024 Financial Performance | Metric | FY2024 | FY2023 | Change | | :--- | :--- | :--- | :--- | | Net Revenue | $1,795M | $2,143M | (16.2)% | | Income Before Taxes | $199M | $307M | (35.2)% | | Diluted EPS | $18.37 | $26.95 | (31.8)% | | Factory-built Housing Gross Margin | 23.2% | 25.3% | (210 bps) | - Backlogs increased by **19.4% sequentially to $191 million** from **$160 million** three months prior, but were down from **$244 million** at the end of fiscal 2023[7](index=7&type=chunk) - The company executed approximately **$110 million** in stock repurchases during fiscal year 2024[7](index=7&type=chunk) [Management Commentary](index=1&type=section&id=Management%20Commentary) CEO Bill Boor highlighted improved order rates and a return to full production, emphasizing the company's resilience, solid margins, successful capacity expansion, new product launches, and significant share repurchases - The quarter began with operational slowdowns due to thin backlogs, but order rates improved as the quarter progressed[6](index=6&type=chunk) - Key strategic achievements during the year include: - Increased capacity via the Solitaire acquisition and new plant startups in Hamlet and Glendale[6](index=6&type=chunk) - Expanded retail distribution footprint[6](index=6&type=chunk) - Launched the Anthem series, a nationally available HUD-approved manufactured duplex[6](index=6&type=chunk) - Repurchased approximately **$110 million** of company shares[6](index=6&type=chunk) [Detailed Financial Analysis - Q4 FY2024](index=2&type=section&id=Detailed%20Financial%20Analysis%20-%20Q4%20FY2024) In Q4 FY2024, total net revenue decreased by **11.8%** year-over-year to **$420.1 million**, primarily driven by a **12.6%** decline in the factory-built housing segment from lower sales volume [Revenue Analysis (Q4 FY2024)](index=2&type=section&id=Revenue%20Analysis%20(Q4%20FY2024)) Q4 total net revenue fell to **$420.1 million**, with factory-built housing revenue decreasing **12.6%** while financial services revenue increased **6.4%** due to more insurance policies in force Revenue by Segment (Q4) | Revenue by Segment (Q4) | FY2024 | FY2023 | Change | | :--- | :--- | :--- | :--- | | Factory-built housing | $398.5M | $456.1M | (12.6)% | | Financial services | $21.6M | $20.3M | 6.4% | | **Total Net Revenue** | **$420.1M** | **$476.4M** | **(11.8)%** | - The number of factory-built homes sold decreased by **12.0%** to **3,938 units** from **4,477 units** in the prior-year quarter[8](index=8&type=chunk) - The increase in financial services revenue was primarily due to more insurance policies in force[9](index=9&type=chunk) [Profitability Analysis (Q4 FY2024)](index=2&type=section&id=Profitability%20Analysis%20(Q4%20FY2024)) Consolidated gross profit for Q4 decreased **17.9%** to **$99.0 million**, with the gross margin contracting **170 basis points** to **23.6%**, while SG&A expenses decreased **7.5%** Profitability by Segment (Q4) | Profitability by Segment (Q4) | FY2024 | FY2023 | Change | | :--- | :--- | :--- | :--- | | **Gross Profit** | | | | | Factory-built housing | $89.3M | $111.4M | (19.8)% | | Financial services | $9.7M | $9.3M | 4.7% | | **Income from Operations** | | | | | Factory-built housing | $33.4M | $50.1M | (33.5)% | | Financial services | $4.2M | $4.1M | 3.3% | - The consolidated gross profit margin decreased to **23.6%** from **25.3%** in Q4 of the prior year[10](index=10&type=chunk) - SG&A expenses in the factory-built housing segment decreased primarily due to lower non-recurring consultant fees for energy tax credits, reduced SEC litigation costs, and lower compensation[10](index=10&type=chunk) [Net Income and EPS (Q4 FY2024)](index=3&type=section&id=Net%20Income%20and%20EPS%20(Q4%20FY2024)) For the fourth quarter, net income attributable to common stockholders was **$33.9 million**, a **28.3%** decrease, resulting in a diluted net income per share of **$4.03**, down **25.2%** Net Income and EPS (Q4) | Metric (Q4) | FY2024 | FY2023 | Change | | :--- | :--- | :--- | :--- | | Net Income Attributable to Cavco | $33.9M | $47.3M | (28.3)% | | Diluted Net Income per Share | $4.03 | $5.39 | (25.2)% | [Detailed Financial Analysis - Full Year FY2024](index=3&type=section&id=Detailed%20Financial%20Analysis%20-%20Full%20Year%20FY2024) For the full fiscal year 2024, net revenue declined **16.2%** to **$1.8 billion**, leading to a **39.7%** drop in income from operations and a **31.8%** decrease in diluted EPS [Revenue Analysis (Full Year FY2024)](index=3&type=section&id=Revenue%20Analysis%20(Full%20Year%20FY2024)) Full-year net revenue was **$1.79 billion**, a **16.2%** decrease, primarily due to a **17.1%** fall in factory-built housing revenue, partially offset by a **6.7%** growth in financial services revenue Revenue by Segment (Full Year) | Revenue by Segment (Full Year) | FY2024 | FY2023 | Change | | :--- | :--- | :--- | :--- | | Factory-built housing | $1,716.6M | $2,069.5M | (17.1)% | | Financial services | $78.2M | $73.3M | 6.7% | | **Total Net Revenue** | **$1,794.8M** | **$2,142.7M** | **(16.2)%** | - The number of factory-built homes sold decreased by **12.6%** to **16,928 units** for the full year[13](index=13&type=chunk) - The decline in factory-built housing revenue was attributed to lower home sales volume and selling prices, partially offset by the Solitaire Homes acquisition[13](index=13&type=chunk) [Profitability Analysis (Full Year FY2024)](index=4&type=section&id=Profitability%20Analysis%20(Full%20Year%20FY2024)) Full-year consolidated gross profit fell **23.1%** to **$426.9 million**, with the gross margin declining **210 basis points** to **23.8%**, and financial services income from operations decreased **42.3%** due to higher weather-related claims Profitability by Segment (Full Year) | Profitability by Segment (Full Year) | FY2024 | FY2023 | Change | | :--- | :--- | :--- | :--- | | **Gross Profit** | | | | | Factory-built housing | $398.9M | $523.5M | (23.8)% | | Financial services | $28.0M | $31.4M | (10.9)% | | **Income from Operations** | | | | | Factory-built housing | $172.7M | $285.6M | (39.6)% | | Financial services | $6.3M | $11.0M | (42.3)% | - The financial services segment's gross profit decline was mainly due to higher weather-related insurance claims and reduced revenue from loan sales[15](index=15&type=chunk) [Net Income and EPS (Full Year FY2024)](index=4&type=section&id=Net%20Income%20and%20EPS%20(Full%20Year%20FY2024)) For the full fiscal year 2024, net income attributable to common stockholders decreased by **34.4%** to **$157.8 million**, with diluted net income per share falling **31.8%** to **$18.37** Net Income and EPS (Full Year) | Metric (Full Year) | FY2024 | FY2023 | Change | | :--- | :--- | :--- | :--- | | Net Income Attributable to Cavco | $157.8M | $240.6M | (34.4)% | | Diluted Net Income per Share | $18.37 | $26.95 | (31.8)% | [Financial Statements](index=7&type=section&id=Financial%20Statements) This section presents Cavco's key financial statements, including the consolidated balance sheets, statements of income, and other operating data, providing a detailed view of the company's financial position and performance [Consolidated Balance Sheets](index=7&type=section&id=Consolidated%20Balance%20Sheets) As of March 30, 2024, Cavco's balance sheet remained strong with total assets of **$1.35 billion**, an increase from **$1.31 billion** a year prior, and total stockholders' equity grew to **$1.03 billion** Consolidated Balance Sheet Summary | Balance Sheet Item | March 30, 2024 | April 1, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $352.7M | $271.4M | | Total current assets | $851.8M | $804.6M | | Total assets | $1,354.2M | $1,308.0M | | Total current liabilities | $273.3M | $293.4M | | Total stockholders' equity | $1,033.4M | $976.3M | - Inventories decreased to **$241.3 million** from **$263.2 million** in the prior year[22](index=22&type=chunk) - Treasury stock increased to **$274.7 million** from **$164.5 million**, reflecting the company's share repurchase program[22](index=22&type=chunk) [Consolidated Statements of Income](index=8&type=section&id=Consolidated%20Statements%20of%20Income) The consolidated income statement shows a year-over-year decline in performance, with fiscal year 2024 net revenue at **$1.8 billion** and net income attributable to stockholders decreasing to **$157.8 million** Consolidated Statements of Income Summary | Income Statement (Full Year) | FY2024 | FY2023 | | :--- | :--- | :--- | | Net revenue | $1,794.8M | $2,142.7M | | Gross profit | $426.9M | $554.9M | | Income from operations | $179.0M | $296.6M | | Net income attributable to Cavco | $157.8M | $240.6M | | Diluted EPS | $18.37 | $26.95 | [Other Operating Data](index=8&type=section&id=Other%20Operating%20Data) For the full fiscal year 2024, capital expenditures were significantly lower at **$17.4 million** compared to **$44.1 million** in the prior year, while depreciation increased slightly Other Operating Data Summary | Operating Data (Full Year) | FY2024 | FY2023 | | :--- | :--- | :--- | | Capital expenditures | $17.4M | $44.1M | | Depreciation | $17.0M | $14.8M | | Amortization of other intangibles | $1.6M | $2.1M | [Corporate Information](index=5&type=section&id=Corporate%20Information) This section provides an overview of Cavco Industries, including its business operations, product offerings, and details regarding the upcoming conference call for fiscal year 2024 results [About Cavco Industries](index=5&type=section&id=About%20Cavco%20Industries) Cavco Industries, Inc., headquartered in Phoenix, Arizona, is a leading U.S. producer of factory-built housing products, operating under various brand names and offering complementary finance and insurance services - Cavco is one of the largest producers of manufactured and modular homes in the United States[19](index=19&type=chunk) - The company's brands include Cavco, Fleetwood, Palm Harbor, and Solitaire, among others[19](index=19&type=chunk) - Cavco operates integrated financial services through CountryPlace Mortgage and Standard Casualty insurance[19](index=19&type=chunk) [Conference Call Information](index=5&type=section&id=Conference%20Call%20Information) Cavco management will host a conference call on May 24, 2024, at 1:00 p.m. Eastern Time to review the fiscal 2024 fourth quarter and year-end results, accessible via webcast - A conference call to discuss the results is scheduled for May 24, 2024, at **1:00 p.m. (Eastern Time)**[18](index=18&type=chunk) - A webcast and presentation archive will be available for **60 days** on the investor relations website[18](index=18&type=chunk)

Core Viewpoint - Cavco's quarterly earnings of $4.03 per share fell short of the Zacks Consensus Estimate of $5.13 per share, marking a -21.44% earnings surprise [1][2] Financial Performance - The company reported revenues of $420.12 million for the quarter ended March 2024, missing the Zacks Consensus Estimate by 15.89% and down from $476.38 million a year ago [2] - Over the last four quarters, Cavco has not surpassed consensus EPS estimates and has topped revenue estimates only once [2] Stock Performance - Cavco shares have increased by approximately 2.1% since the beginning of the year, compared to the S&P 500's gain of 11.3% [3] Future Outlook - The company's earnings outlook is crucial for investors, with current consensus EPS estimates at $6.92 for the coming quarter and $23.96 for the current fiscal year [7] - The Zacks Rank for Cavco is currently 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Building Products - Mobile Homes and RV Builders industry is currently in the bottom 31% of Zacks industries, suggesting potential challenges for stock performance [8] - Another company in the same industry, Winnebago Industries, is expected to report a significant decline in earnings, with a projected EPS of $1.31, down 38.5% year-over-year [9]

Core Insights - Cavco Industries, Inc. reported financial results for the fourth quarter and fiscal year ended March 30, 2024, showing a decline in net revenue and net income compared to the previous year [1][4]. Quarterly Highlights - Net revenue for the three months ended March 30, 2024, was $420.1 million, down 11.8% from $476.4 million in the same period last year [5][6]. - Net income attributable to Cavco common stockholders for the quarter was $33.9 million, a decrease of 28.3% from $47.3 million in the prior year [9][24]. - The gross profit margin for the quarter was 23.6%, down from 25.3% in the previous year [6][24]. - Factory-built housing revenue decreased by 12.6% to $398.5 million, primarily due to lower sales volume [5][10]. Full Fiscal Year Highlights - For the fiscal year ended March 30, 2024, net revenue was $1.795 billion, a decrease of 16.2% from $2.143 billion in the previous year [6][12]. - Net income for the year was $157.8 million, down 34.4% from $240.6 million in the prior year [16][24]. - The gross profit margin for the full year was 23.8%, compared to 25.9% in the previous year [13][24]. - The factory-built housing segment saw a revenue decline of 17.1% year-over-year, attributed to lower home sales volume and selling prices [12][13]. Operational Insights - The company successfully integrated the Solitaire acquisition and launched new products, including the Anthem series, which is the first nationally available HUD-approved manufactured duplex [4][10]. - Backlogs increased to $191 million, up 19.4% from $160 million three months prior, but down from $244 million a year ago [6][12]. - The financial services segment reported a revenue increase of 6.7% year-over-year, primarily due to more insurance policies in force [12][7]. Cost Management - Selling, general, and administrative expenses decreased by 7.5% for the quarter and 4.9% for the fiscal year, reflecting lower non-recurring expenses and reduced compensation [10][13]. - The company repurchased approximately $110 million in shares during the fiscal year, indicating a commitment to returning value to shareholders [4][6].

Company Overview - Cavco Industries, Inc. is headquartered in Phoenix, Arizona and is a major player in the factory-built housing market in the United States, recognized as one of the largest producers of manufactured and modular homes based on reported wholesale shipments [3] - The company designs and produces a variety of housing products distributed through independent and company-owned retailers, with brands including Cavco, Fleetwood, Palm Harbor, and others [3] - Cavco also produces park model RVs, vacation cabins, and factory-built commercial structures, and operates a finance subsidiary, CountryPlace Mortgage, which offers various mortgage products [3] Upcoming Earnings Release - Cavco Industries will release its earnings for the fourth quarter and fiscal year ended March 30, 2024, on May 23, 2024, after the market closes [1] - Senior management will discuss the results in a live webcast on May 24, 2024, at 1:00 p.m. Eastern Time [1]