Cavco Industries Reports Fiscal 2025 First Quarter Results

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]