Cavco(US:CVCO)2024-05-24 20:51Financial 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].