Cavco Industries, a leading producer of park model RVs and modular homes, has announced its financial results for the first fiscal quarter ended June 30.
Net revenue for the first quarter of fiscal year 2019 totaled $246.4 million, up 19.1 percent from $206.8 million in the first quarter of fiscal year 2018. The increase was primarily from improved home sales volume and higher home selling prices from input cost inflation and modestly larger home sizes.
Current quarter net revenue also includes $6.5 million from this quarter’s required implementation of accounting standards whereby subcontracted pass-through services, such as the preparation of a home site or other home enhancements, are now recognized on a gross basis rather than net of associated costs.
“Cavco’s home order rates continue to benefit from the improving housing market and economy,” said Joseph Stegmayer, chairman, president and CEO. “At the end of the first fiscal quarter, Cavco’s sales order backlog was $196 million compared to $137 million at the end of the same quarter last year. The tight labor market remains a challenge; accordingly, we continue to focus our efforts on talent recruiting, training and retention programs, along with increasing factory production rates by investing in production capacity and efficiency initiatives.”
