Cavco Industries, a maker of manufactured housing, announced its financial results for the third fiscal quarter ended Dec. 30, 2017, showing 9.4 percent increase in net revenue.
On April 3, 2017, the company completed the acquisition of Lexington Homes, which operates a manufactured housing plant in Lexington, Miss. Since the acquisition date, the results from this new business are included in Cavco’s consolidated financial statements presented herein.
“We are pleased with this quarter’s results which were aided by improved order rates during traditionally slower holiday months,” said Joseph Stegmayer, chairman, president and CEO of Cavco. “Strong new single-family housing demand continued to drive opportunities for increased unit sales volume. In response, our manufacturing facilities raised production levels by increasing our workforce size and capabilities.”
Net revenue for the third quarter totaled $221.4 million, up from $202.3 million for the third quarter of fiscal year 2017. Net revenue for the first nine months of fiscal 2018 was $628.7 million, up 9.2 percent from $575.8 million for the comparable prior year period. The increase was from improved home sales volume and a larger proportion of higher priced homes sold.
Income before income taxes was $23.7 million, a 37 percent increase from $17.3 million in the comparable quarter last year.
Net income was $21.4 million for the third quarter, compared to net income of $12.3 million in the same quarter of the prior year, a 74 percent increase.
“Our home production systems utilize labor and materials more efficiently than many other home construction alternatives,” said Stegmayer. “The company has the ability to raise sales prices of its home offerings in response to rising input costs, although larger-than-normal home order backlogs have caused some delay in fully realizing the benefits of higher home product pricing.”