Financial Data and Key Metrics Changes - Net revenue for Q3 FY2026 was $581 million, an increase of $59 million or 11.3% from $522 million in the prior year quarter [16] - Consolidated gross margin as a percentage of net revenue decreased to 23.4% from 24.9% in the same period last year [18] - Net income was $44.1 million, down from $56.5 million in the same quarter of the prior year, with diluted earnings per share at $5.58 compared to $6.90 [20] Business Line Data and Key Metrics Changes - Factory-built housing segment net revenue was $558.5 million, up 11.5% from $500.9 million in the prior year quarter, primarily due to the addition of American Homestar [16] - Financial services segment net revenue increased to $22.5 million, up 6.2% from $21.2 million in the prior year quarter, driven by higher insurance premium rates [17] Market Data and Key Metrics Changes - Industry shipments slowed in October and November, down 13% from the calendar 2024 period, with Cavco's volume down about 4% compared to last year [6][8] - The Southeast region saw higher volume in Q3 versus Q2, while most other regions experienced declining shipments [8] Company Strategy and Development Direction - The company is focused on integrating American Homestar, with estimated annual synergies above $10 million, half of which has been achieved [12][14] - The company continues to enhance its digital marketing infrastructure and rebranding efforts to improve market presence and customer engagement [24][25] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the spring selling season, citing healthy leading indicators such as quotes and retail traffic [10][86] - The company noted that while there is uncertainty in the market, the tone from operations and market feedback remains positive [10] Other Important Information - The company repurchased $44 million of common shares during the quarter, maintaining a healthy unrestricted cash balance of $225 million [15][20] - SG&A expenses increased due to the addition of American Homestar and higher compensation costs, expected to decline as synergies are realized [19] Q&A Session Summary Question: What caused the lower utilization and production adjustments? - Management noted that the industry experienced a significant downtick in October and November, with the Southeast region performing better than others [28][30] Question: How is the gross margin impacted by acquisition accounting? - Management clarified that there was no impact on gross margins from the acquisition, with year-over-year declines attributed to increases in input costs [38][65] Question: What are the updated synergy targets from the American Homestar acquisition? - Management indicated that the annualized synergy target is $10 million, with approximately half already actioned, expected to contribute positively in Q4 [95][96]