Cavco(US:CVCO)2022-02-06 16:00Revenue and Sales Performance - Net revenue for factory-built housing increased by $318.1 million, or 42.4%, from $749.9 million in 2020 to $1.1 billion in 2022[130] - The average sales price for factory-built homes increased by 24.4%, from $75,166 per home sold to $93,488[130] - The company experienced a 12.0% increase in industry home shipments in 2021 compared to the prior year[112] - Net factory-built housing revenue per home sold increased by 24.9% and 22.8% for the three and nine months ended January 1, 2022, respectively, compared to the same periods in 2020[132] Backlog and Production Capacity - The backlog as of January 1, 2022, was $1.1 billion, up $633 million, or 134.1%, compared to $472 million at December 26, 2020[122] - The company acquired Commodore, contributing $277 million to the year-over-year increase in backlog[122] - Factory utilization for the third fiscal quarter of 2022 reached approximately 80%, up from 75% in the previous four quarters[120] - Home order rates remain above pre-COVID levels, indicating strong housing demand despite moderation from previous highs[121] - The company operates 26 homebuilding production lines across various states in the U.S.[109] Financial Performance - Gross profit for factory-built housing rose to $104.1 million for the three months ended January 1, 2022, up from $47.0 million in the prior year, representing a 80.3% increase[136] - The gross profit margin for factory-built housing improved to 25.2% for the three months ended January 1, 2022, compared to 17.4% in the prior year[136] - The financial services segment reported a revenue increase of $2.0 million, or 4.0%, from $51.7 million in 2020 to $53.7 million in 2022[130] - Financial services segment revenue increased due to higher home loan sales volume, with unrealized gains on marketable equity securities decreasing to $0.5 million for the three months ended January 1, 2022, down from $1.0 million in the prior year[132] Expenses and Cash Flow - Selling, general and administrative expenses for factory-built housing increased by $25.2 million for the three months ended January 1, 2022, primarily due to the acquisition of Commodore and higher compensation expenses[139] - Cash and cash equivalents at January 1, 2022, were $339.3 million, an increase of $83.7 million compared to $255.6 million at December 26, 2020[151] - Net cash provided by operating activities increased to $126.0 million for the nine months ended January 1, 2022, compared to $91.6 million in the previous year, driven by higher net income and consumer loan sales[151] - Consumer loan originations decreased by $1.2 million to $122.9 million for the nine months ended January 1, 2022, compared to $124.1 million for the same period in 2020[152] - Cash receipts, net of amounts loaned, increased cash by $8.1 million, while the prior period net activity provided an additional $6.4 million in cash[153] - Greater cash was used in the current period for the purchase of Craftsman and Commodore, indicating strategic growth acquisitions[154] - Net cash used in financing activities was primarily for the repurchase of common stock and the full payment of secured term loans as of January 1, 2022[155] Strategic Outlook and Challenges - The company plans to evaluate potential acquisitions and strategic investments to support growth, leveraging its strong cash position[148] - The company continues to face challenges related to labor availability and supply chain disruptions affecting production efficiency[124] Tax and Accounting - The effective tax rate for the three months ended January 1, 2022, was a benefit of (35.1)%, significantly lower than 23.9% in the prior year, due to estimated non-recurring net tax credits[143] - There have been no significant changes to critical accounting policies during the nine months ended January 1, 2022, compared to those disclosed in the previous Form 10-K[156] - There were no material changes to contractual obligations as set forth in the Annual Report on Form 10-K[155] - There have been no material changes from the quantitative and qualitative disclosures about market risk previously disclosed in the Form 10-K[160]