Cavco(US:CVCO)2025-01-31 21:08Financial Performance - Net revenue for the three months ended December 28, 2024, was $522,040,000, representing a 16.8% increase from $446,769,000 for the same period in 2023[12]. - Gross profit for the nine months ended December 28, 2024, was $349,474,000, up 6.5% from $327,887,000 in the prior year[12]. - Net income for the nine months ended December 28, 2024, was $134,706,000, a 8.1% increase compared to $123,971,000 for the same period in 2023[12]. - Total net revenue for the nine months ended December 28, 2024, reached $1,507,100,000, a 9.6% increase compared to $1,374,674,000 for the same period in 2023[77]. - Net income attributable to Cavco common stockholders for the three months ended December 28, 2024, was $56,462 thousand, compared to $35,987 thousand for the same period in 2023, representing a 57% increase[57]. - Basic earnings per share for the three months ended December 28, 2024, was $6.97, up from $4.31 in the same period last year, reflecting a 62% increase[57]. - Net income for the nine months ended December 28, 2024, was $134,706 thousand, compared to $123,883 thousand for the same period in 2023, indicating an 8% increase[57]. Assets and Liabilities - Total assets increased to $1,385,767,000 as of December 28, 2024, compared to $1,354,160,000 as of March 30, 2024[10]. - Total current liabilities increased to $285,222,000 as of December 28, 2024, from $273,267,000 as of March 30, 2024[10]. - Accrued expenses and other current liabilities amounted to $259,134,000 as of December 28, 2024, up from $239,736,000 on March 30, 2024[34]. - Cash and cash equivalents at the end of the period were $378,626,000, up from $366,608,000 at the end of the same period last year[14]. - Cash, cash equivalents, and restricted cash at the end of the period increased by $12,018 thousand to $378,626 thousand as of December 28, 2024, compared to $366,608 thousand at the end of the prior year[90]. Stock and Shareholder Activities - The company repurchased common stock totaling $114,446,000 during the nine months ended December 28, 2024[14]. - Common stock repurchases totaled $42,722 thousand for the three months ended December 28, 2024[54]. - In Q3 FY2025, the company repurchased a total of 98,084 shares of common stock at an average price of $424.63 per share, totaling approximately $41.5 million[103]. - The company has announced plans to repurchase an additional 117,954 shares under its publicly announced plans[103]. Loans and Financing - As of December 28, 2024, total consumer loans receivable amounted to $55,649,000, up from $45,656,000 as of March 30, 2024, indicating a growth of 21.5%[28]. - Commercial loans receivable net balance as of December 28, 2024, was $58,103,000, an increase from $47,725,000 as of March 30, 2024, representing a growth of 21.5%[30]. - The total outstanding principal balance of commercial loans receivable was $94,902,000, with no nonperforming loans reported[31]. - Consumer loan originations decreased by $20.1 million to $54.2 million for the nine months ended December 28, 2024, from $74.3 million in the prior year[91]. - Commercial loan originations increased by $4.0 million to $87.5 million for the nine months ended December 28, 2024, from $83.5 million in the prior year[92]. - The company entered into a $75 million revolving credit facility on November 12, 2024, maturing on November 12, 2029[38]. - The company had no borrowings outstanding under the revolving credit facility as of December 28, 2024, and was in compliance with all covenants[44]. Revenue by Segment - Home sales revenue for the nine months ended December 28, 2024, reached $1,378,103,000, compared to $1,250,417,000 for the same period in 2023, reflecting a year-over-year increase of 10.2%[22]. - Factory-built housing net revenue for the three months ended December 28, 2024, was $500,860,000, a 17.3% increase from $426,939,000 in the same period last year[77]. - Financial services net revenue for the three months ended December 28, 2024, was $21,180,000, reflecting a 6.8% increase from $19,830,000 in the prior year[77]. - The number of factory-built homes sold by company-owned retail sales centers increased to 1,075 for the three months ended December 28, 2024, up 4.8% from 1,026 in the previous year[77]. Profitability Metrics - Factory-built housing gross profit increased by $22,437 thousand, or 23.4%, for the three months ended December 28, 2024, compared to the same period in 2023[80]. - Financial services gross profit increased by $4,462 thousand, or 61.2%, for the three months ended December 28, 2024, compared to the same period in 2023[80]. - Consolidated gross profit as a percentage of net revenue increased to 24.9% for the three months ended December 28, 2024, up from 23.1% in the prior year[80]. - Selling, general and administrative expenses increased by $2,668 thousand, or 4.2%, for the three months ended December 28, 2024, compared to the same period in 2023[83]. Market and Industry Insights - The manufactured housing industry saw a 16.3% increase in home shipments for the calendar year through November 2024, totaling 96,240 shipments compared to 82,784 in the same period last year[67]. - The company is focused on building energy-efficient homes and has initiatives to utilize renewable materials, aiming to reduce utility costs for homeowners[69]. - The company continues to face challenges in the secondary market for manufactured home-only loans, which affects borrowing costs and industry growth[72]. - The company maintains a conservative cost structure to enhance the value of its homes and has a strong balance sheet to navigate market opportunities[70]. Accounting and Compliance - The company is currently evaluating the impacts of new accounting standards on its Consolidated Financial Statements, including ASU 2023-09 and ASU 2023-07, which will enhance income tax and segment reporting disclosures[20][21].