Manufactured housing and park model RV company Cavco announced financial results for the first fiscal quarter ended June 28.
Quarterly Highlights
- Net revenue was $557 million, up $79 million or 16.6% compared to $478 million in the first quarter of the prior year, primarily on home sales volume growth.
- Home sales volume was up 14.7% and capacity utilization increased to approximately 75% from approximately 65% in the first quarter of the prior year.
- Factory-built housing Gross profit as a percentage of Net revenue was 22.6%, unchanged from the same period in the prior year.
- Financial services Gross profit as a percentage of Net revenue was 40.9%, compared to Gross profit of (0.6)% in the same period in the prior year.
- Income before income taxes was $65.3 million, up $21.4 million, or 48.9% compared to $44 million in the same period in the prior year.
- Net income per diluted share attributable to Cavco common stockholders was $6.42, up 56%, compared to $4.11 in the prior year quarter on higher factory-built housing volume and stronger Financial services results.
- Backlogs totaled $200 million at the end of the quarter representing 5-7 weeks of production.
- Stock repurchases were approximately $50 million in the quarter. $178 million remains available for repurchases under its previously announced board authorizations.
Commenting on the quarter, President and Chief Executive Officer Bill Boor said, “Our plants have been increasing run rates over the past few quarters in anticipation of continued order growth, where order rates and backlogs have supported. This quarter rewarded those decisions with higher shipments and stable quarter-to-quarter consolidated backlog. Financial services also contributed to the strong results. The market remains uncertain and our flexible business model makes us well positioned to adjust as needed.”
He continued, “As previously announced this month, we entered into a definitive agreement to acquire American Homestar Corporation. Operational excellence like our team demonstrated this quarter, and the solid balance sheet we have maintained through the years has given us the ability to pursue exciting opportunities like this. At Cavco, we couldn’t be more excited to join forces with the America Homestar team and expand our reach in the South Central U.S. as we continue to put more families into affordable homes.”
View the full report here.
