Cavco Industries announced financial results for the second fiscal quarter ended Sept. 26.
Quarterly Highlights
- Net revenue was $656.4 million, up $100 million or 17.9% compared to $556.5 million in the second quarter of the prior year, primarily on home sales volume and average selling price per home growth.
- Home sales volume was up 15.3% and capacity utilization remained consistent year over year at approximately 75%.
- Factory-built housing gross profit as a percentage of net revenue was 21.1%, down from 22.9% in the same period in the prior year.
- Financial services gross profit as a percentage of net revenue was 60.2%, compared to gross profit of 55.6% in the same period in the prior year.
- Selling, general and administrative expenses include a one-time $7 million benefit from a return of insurance premium which favorably impacts net income per diluted share by $0.70.
- Income before income taxes was $73 million, up $6 million, or 9.1% compared to $67 million in the same period in the prior year.
- Net income per diluted share was $7.17, up 9%, compared to $6.55 in the prior year quarter.
- Backlogs totaled $348 million at the end of the quarter representing 8-10 weeks of production, up $50 million sequentially from $298 million.
- Stock repurchases were approximately $30 million in the quarter. At the end of the second quarter, $158 million remains available for repurchases under our previously announced board authorizations.
Commenting on the quarter, President and Chief Executive Officer Bill Boor said, “This is our second consecutive quarter of record revenue and unit volume. While orders were off the preceding quarter pace, they remained healthy and backlogs continued to grow. This positions us very well going into the seasonally slower winter months with the ability to adjust production depending on order trends. While materials inflation continued and is expected to remain a challenge going forward, during Q2, selling price increases were in excess of cost pressures, resulting in a small sequential gross margin improvement. Additionally, we began to see data center workforce housing orders and shipments during the quarter which are contributing to healthy backlogs.”
He continued, “A highlight this quarter was showing Cavco’s Grande Arbor, the first off-chassis HUD-Code home, at HUD’s Innovative Housing Showcase in Washington, D.C. Increasing federal and state-level support through the ROAD to Housing Act and other reforms will be opening exciting opportunities for factory-built housing in the years ahead.”
