Financial Data and Key Metrics Changes - Revenue increased by 9.5% year over year and 16.6% sequentially, reaching $556.9 million [5][15] - Operating profit rose approximately 50% compared to both the previous quarter and the same quarter last year [5] - Net income was $51.6 million, compared to $34.4 million in the previous year, with diluted earnings per share at $6.42 versus $4.11 [20] Business Line Data and Key Metrics Changes - Factory Built Housing segment net revenue was $535.7 million, up 17% from $458 million in the prior quarter, driven by a 14.7% increase in homes sold [15] - Financial Services segment net revenue increased to $21.2 million, up 8.2% from $19.6 million in the prior year, primarily due to higher insurance premium rates [15][19] Market Data and Key Metrics Changes - The Southeast region experienced a slight lag in orders, with Q1 shipments slightly below the preceding quarter [7][30] - Average selling price (ASP) increased due to a shift towards multi-section homes and true price appreciation, marking a significant upward move after a period of modest declines [10][11] Company Strategy and Development Direction - The company is focused on increasing production rates to meet demand, with a record of 5,416 homes shipped this quarter [6][7] - An agreement to purchase American HomeStar for approximately $184 million in cash was announced, expected to close early in the third quarter, aimed at cost reduction and product optimization [12][13] - The company continues its share repurchase program, having repurchased $50 million of stock this quarter, totaling 16.6% of outstanding shares since the program's inception [14][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the execution of their plan despite uncertainties in future demand, noting that the current order trends remain positive [6][28] - The company acknowledged challenges in the Southeast region, particularly in Florida, but emphasized a steady performance in other areas [30][32] - Management highlighted improvements in financial services, attributing the turnaround to better underwriting criteria and favorable weather conditions [11][19] Other Important Information - Consolidated gross margin increased to 23.3%, up 160 basis points from the previous year [16] - The effective income tax rate decreased to 20.9% from 21.5% in the prior year [20] - The company generated $55.5 million in cash from operating activities, reflecting solid performance [22] Q&A Session Summary Question: Is the level of ordering continuing into fiscal Q2? - Management noted that while summer months may see a seasonal slowdown, there is a continuation of positive trends without indications of a drop [27][28] Question: Are there specific states in the Southeast experiencing softness? - Management clarified that Florida has been struggling, but other Southeastern states are performing steadily, with a focus on monitoring production levels [30][32] Question: What is the impact of tariffs on costs? - The estimated impact of tariffs on costs was about $700,000 for Q1, with potential increases expected if proposed tariffs are implemented [51][75] Question: What are the expectations for growth in Texas? - Management expressed confidence in Texas as a key market for manufactured housing, anticipating continued growth and opportunities for value creation [105][106]