Cavco(US:CVCO)2024-08-02 20:37Financial 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].