Cavco Industries Second Quarter Fiscal 2024 Earnings Release

Cavco Industries, Inc. (“we,” “our,” the “Company” or “Cavco”) announced financial results for the second fiscal quarter ended September 30, 2023.

Second Quarter Summary

• Net revenue was $452 million, down 21.7% compared to $577 million in the second quarter of the prior year.
• Factory-built housing gross profit as a percentage of Net revenue was 23.2%, compared to 26.7% in the prior year.
• Financial services Gross profit as a percentage of Net revenue was 35.9% compared to 44.6% in the prior year.
• Income before income taxes was $52 million, down 44.1% compared to $93 million in the prior year period.
• Net income per diluted share attributable to Cavco common stockholders was $4.76 compared to $8.25 in the prior year quarter.
• Backlogs were $170 million at the end of the quarter, down $7 million from $177 million three months prior.
• Returned nearly $47 million to shareholders through stock repurchases.

Commenting on the quarter, President and Chief Executive Officer Bill Boor said, “Backlogs have stabilized at about 6 weeks, reflecting modest improvement in wholesale orders while capacity utilization remained essentially unchanged from Q1. Our plants, and operations overall, continue to do an outstanding job maintaining healthy margins and generating strong cash flow despite market conditions.”

He continued, “Prospective homeowners have gotten no relief from the impact of rising interest rates and the affordable housing crisis is intensifying. At Cavco, we continue to manage the near-term challenges with a steady focus on improving the customer experience, deepening our distribution partnerships and developing innovative products and finance solutions so we can get more families into homes.”

Financial Results

• In the factory-built housing segment, the decrease in Net revenue for the three and six months was due to lower home sales volume and lower home selling prices, partially offset by the addition of Solitaire Homes.
• Financial services segment Net revenue increased for the three and six months from more insurance policies in force in the current period compared to the prior year.
• In the factory-built housing segment, Gross profit as a percent of Net revenue for the three and six months was down primarily due to lower average selling price, partially offset by lower input costs.
• In the financial services segment, Gross profit and Income from operations for the three and six months were negatively affected by higher insurance claims from weather related events.
• Selling, general and administrative expenses decreased for the three and six months primarily as a result of lower incentive compensation on reduced sales and lower professional expenses.

For the full second quarter results, click here.

About Cavco Industries

Cavco Industries, Inc., headquartered in Phoenix, Arizona, designs and produces factory-built housing products primarily distributed through a network of independent and Company-owned retailers. We are one of the largest producers of manufactured and modular homes in the United States, based on reported wholesale shipments. Our products are marketed under a variety of brand names including Cavco, Fleetwood, Palm Harbor, Nationwide, Fairmont, Friendship, Chariot Eagle, Destiny, Commodore, Colony, Pennwest, R-Anell, Manorwood, MidCountry and Solitaire. We are also a leading producer of park model RVs, vacation cabins and factory-built commercial structures. Cavco’s finance subsidiary, CountryPlace Mortgage, is an approved Fannie Mae and Freddie Mac seller/servicer and a Ginnie Mae mortgage-backed securities issuer that offers conforming mortgages, non-conforming mortgages and home-only loans to purchasers of factory-built homes. Our insurance subsidiary, Standard Casualty, provides property and casualty insurance to owners of manufactured homes.

Contact:

Mark Fusler – Corporate Controller & Investor Relations – investor_relations@cavco.com

Source: Cavco Industries, Inc.