Manufactured housing company Cavco announced financial results for the for the first fiscal quarter ended June 29.
Quarterly Highlights
- Net revenue was $478 million, up $2 million or 0.4% compared to $476 million in the first quarter of the prior year, primarily on home sales volume growth.
- Sequentially, home sales volume is up 20% and capacity utilization is up to approximately 65% from approximately 60%.
- Factory-built housing gross profit as a percentage of net revenue was 22.6%, compared to 24.8% in the prior year.
- Financial services gross loss as a percentage of net revenue was (0.6)%, compared to Gross profit of 24.0% in the prior year. The segment pretax net loss of $5.2 million resulted in a reduction in diluted net income per share of approximately $0.49 on an after tax basis. The loss was caused by unusually high insurance claims from multiple weather events in Texas, as well as the wildfires in New Mexico.
- Income before income taxes was $44 million, down $17 million or 27.9% compared to $61 million in the prior year period.
- Net income per diluted share attributable to Cavco common stockholders was $4.11 compared to $5.29 in the prior year quarter.
- Backlogs totaled $232 million at the end of the quarter, up $41 million, or 21.4%, from $191 million three months ago, with modules in the backlog growing 22%.
- Stock repurchases were approximately $29 million in the quarter.
Commenting on the quarter, President and CEO Bill Boor said, “The momentum we experienced exiting the fourth quarter carried through the first quarter. Orders continued to increase, resulting in production increases and a growing backlog.”
He continued, “While our factory-built housing results showed continuing improvement, our consolidated results were negatively impacted by very high claims costs in our insurance operations. Those claims were driven by unusually high storm activity in Texas and the Ruidoso fires in New Mexico. While weather related events are unpredictable, our insurance operation has performed well over time, and we continue to actively manage our exposure. Overall, teams across the company are stepping up to continued market improvement and the opportunity to help more families achieve homeownership.
View the full report here.
