Cavco Industries Reports Fiscal 2017 Third Quarter Results

New Post Public Reply Private Reply Replies (0) Message Board
News Desk 2018
81
Cavco Industries Reports Fiscal 2017 Third Quarter Results

PHOENIX, Feb. 06, 2017 (GLOBE NEWSWIRE) -- Cavco Industries, Inc. (NASDAQ: CVCO ) today announced financial results for the third fiscal quarter ended December 31, 2016.

Financial highlights include the following:

  • Net revenue for the third quarter of fiscal year 2017 totaled $202.3 million, up 11.5% from $181.4 million for the third quarter of fiscal year 2016. The increase is primarily from 8.5% higher home sales during the period. Net revenue for the first nine months of fiscal 2017 was $575.8 million, up 7.6% from $535.1 million for the comparable prior year period, from 7.9% greater home sales volume. The nine month period includes one additional month of Fairmont Homes operations versus the same period last year, as Fairmont Homes was purchased by the Company on May 1, 2015.
  • Income before income taxes was $17.3 million for the third quarter of fiscal 2017, a 44.2% increase from $12.0 million income before income taxes in the comparable quarter last year. The improvement was the result of higher home sales as well as stronger earnings in the financial services segment compared to last year’s third fiscal quarter. Last year’s third quarter was adversely impacted by higher than normal weather-related insurance claims. For the first nine months of fiscal 2017, income before income taxes increased 17.2% to $38.8 million from $33.1 million in the comparable period of the prior year. The increase for the nine month period was primarily from improved home sales volume, partially offset by high claims at the Company's insurance subsidiary generated by multiple unusually severe storms in Texas during the first quarter of fiscal year 2017.
  • Income tax expense was $5.0 million with an effective tax rate of 28.9% for the third quarter of fiscal year 2017 compared to $3.9 million and an effective tax rate of 32.5% in the same quarter of the prior year. The current quarter contains certain manufacturing related deductions as well as research and development tax credits, collectively realized upon filing the Company’s tax returns. For the nine months ended December 31, 2016, income tax expense was $11.7 million for an effective tax rate of 30.3%, compared to income tax expense of $11.6 million and an effective tax rate of 34.9% in the comparable period. During the current nine month period, in addition to the benefits listed above, the Company also recorded initial research and development tax credits that became realizable.
  • Net income was $12.3 million for the third quarter of fiscal year 2017, compared to net income of $8.1 million in the same quarter of the prior year, a 51.9% increase. For the nine months ended December 31, 2016, net income was $27.1 million, up 25.5% from net income of $21.6 million for the first nine months of fiscal 2016. 
  • Net income per share for the third quarter of fiscal 2017, based on basic and diluted weighted average shares outstanding, was $1.37 and $1.35, respectively, compared to net income per share of $0.91 and $0.89, respectively, for the comparable quarter last year. Net income per share for the nine months ended December 31, 2016, based on basic and diluted weighted average shares outstanding, was $3.02 and $2.98, respectively, versus basic and diluted net income per share of $2.43 and $2.38, respectively, for the prior nine month period.

Commenting on the results, Joseph Stegmayer, Chairman, President and Chief Executive Officer said, "Homebuyer demand was on a general uptrend during the first nine months of the fiscal year and continues to be positive. Recently, the Company has been delivering a limited number of units for disaster relief, which enhances Cavco's housing revenue in the otherwise seasonally slower winter months. The manufactured housing industry appears to be in a modest recovery mode from the historically low levels of recent years and we believe we are positioned well to benefit."

Cavco’s management will hold a conference call to review these results tomorrow, February 7, 2017, at 1:00 PM (Eastern Time). Interested parties can access a live webcast of the conference call on the Internet at www.cavco.com  under the Investor Relations link. An archive of the webcast and presentation will be available for 90 days at www.cavco.com  under the Investor Relations link.

Cavco Industries, Inc., headquartered in Phoenix, Arizona, designs and produces factory-built housing products primarily distributed through a network of independent and Company-owned retailers. The Company is one of the largest producers of manufactured homes in the United States, based on reported wholesale shipments, marketed under a variety of brand names including Cavco Homes, Fleetwood Homes, Palm Harbor Homes, Fairmont Homes and Chariot Eagle. The Company is also a leading producer of park model RVs, vacation cabins, and systems-built commercial structures, as well as modular homes built primarily under the Nationwide Custom Homes brand. Cavco’s mortgage subsidiary, CountryPlace Mortgage, is an approved Fannie Mae and Freddie Mac seller/servicer, a Ginnie Mae mortgage backed securities issuer and offers conforming mortgages, non-conforming mortgages and chattel loans to purchasers of factory-built and site-built homes. Its insurance subsidiary, Standard Casualty, provides property and casualty insurance to owners of manufactured homes.

Certain statements contained in this release are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities and Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. In general, all statements that are not historical in nature are forward-looking. Forward-looking statements are typically included, for example, in discussions regarding the manufactured housing and site-built housing industries; our financial performance and operating results; and the expected effect of certain risks and uncertainties on our business, financial condition and results of operations. All forward-looking statements are subject to risks and uncertainties, many of which are beyond our control. As a result, our actual results or performance may differ materially from anticipated results or performance. Factors that could cause such differences to occur include, but are not limited to: adverse industry conditions; our ability to successfully integrate past acquisitions, including the recent acquisitions of Fairmont Homes and Chariot Eagle, and any future acquisition or the ability to attain the anticipated benefits of such acquisitions; the risk that any past or future acquisition may adversely impact our liquidity; involvement in vertically integrated lines of business, including manufactured housing consumer finance, commercial finance and insurance; a constrained consumer financing market; curtailment of available financing for retailers in the manufactured housing industry; our participation in certain wholesale and retail financing programs for the purchase of our products by industry distributors and consumers may expose us to additional risk of credit loss; significant warranty and construction defect claims; our contingent repurchase obligations related to wholesale financing; market forces and declining housing demand; net losses were incurred in certain prior periods and there can be no assurance that we will generate income in the future; a write-off of all or part of our goodwill; the cyclical and seasonal nature of our business; limitations on our ability to raise capital; competition; our ability to maintain relationships with independent distributors; our business and operations being concentrated in certain geographic regions; labor shortages; pricing and availability of raw materials; unfavorable zoning ordinances; loss of any of our executive officers; organizational document provisions delaying or making a change in control more difficult; volatility of stock price; general deterioration in economic conditions and continued turmoil in the credit markets; increased costs of healthcare benefits for employees; governmental and regulatory disruption; information technology failures and data security breaches; extensive regulation affecting manufactured housing; together with all of the other risks described in our filings with the Securities and Exchange Commission. Readers are specifically referred to the Risk Factors described in Item 1A of the 2016 Form 10-K, as may be amended from time to time, which identify important risks that could cause actual results to differ from those contained in the forward-looking statements. Cavco expressly disclaims any obligation to update any forward-looking statements contained in this release, whether as a result of new information, future events or otherwise. Investors should not place any reliance on any such forward-looking statements.

CAVCO INDUSTRIES, INC.
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands, except per share amounts)
  December 31,  2016   April 2,  2016
ASSETS (Unaudited)    
Current assets:      
Cash and cash equivalents $ 119,745     $ 97,766  
Restricted cash, current 9,062     10,218  
Accounts receivable, net 35,736     29,113  
Short-term investments 12,169     10,140  
Current portion of consumer loans receivable, net 31,138     21,918  
Current portion of commercial loans receivable, net 6,495     3,557  
Inventories 86,644     94,813  
Prepaid expenses and other current assets 24,163     22,196  
Deferred income taxes, current 9,415     8,998  
Total current assets 334,567     298,719  
Restricted cash 723     1,082  
Investments 28,855     28,948  
Consumer loans receivable, net 64,016     67,640  
Commercial loans receivable, net 16,911     21,985  
Property, plant and equipment, net 56,889     55,072  
Goodwill and other intangibles, net 80,113     80,389  
Total assets $ 582,074     $ 553,835  
LIABILITIES AND STOCKHOLDERS’ EQUITY      
Current liabilities:      
Accounts payable $ 16,576     $ 18,513  
Accrued liabilities 103,096     100,314  
Current portion of securitized financings and other 6,094     6,262  
Total current liabilities 125,766     125,089  
Securitized financings and other 51,659     54,909  
Deferred income taxes 20,670     20,611  
Stockholders’ equity:      
Preferred stock, $.01 par value; 1,000,000 shares authorized; No shares issued or outstanding      
Common stock, $.01 par value; 40,000,000 shares authorized; Outstanding 8,992,968 and 8,927,989 shares, respectively 90     89  
Additional paid-in capital 244,270     241,662  
Retained earnings 137,253     110,186  
Accumulated other comprehensive income 2,366     1,289  
Total stockholders’ equity 383,979     353,226  
Total liabilities and stockholders’ equity $ 582,074     $ 553,835  
               
CAVCO INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Dollars in thousands, except per share amounts)
(Unaudited)
       
  Three Months Ended   Nine Months Ended
  December 31,  2016   December 26,  2015   December 31,  2016   December 26,  2015
Net revenue $ 202,310     $ 181,427     $ 575,799     $ 535,059  
Cost of sales 158,766     145,037     459,896     427,280  
Gross profit 43,544     36,390     115,903     107,779  
Selling, general and administrative expenses 26,003     23,728     76,119     72,958  
Income from operations 17,541     12,662     39,784     34,821  
Interest expense (1,091 )   (1,244 )   (3,384 )   (3,224 )
Other income, net 829     587     2,407     1,530  
Income before income taxes 17,279     12,005     38,807     33,127  
Income tax expense (4,996 )   (3,907 )   (11,740 )   (11,574 )
Net income $ 12,283     $ 8,098     $ 27,067     $ 21,553  
               
Comprehensive income:              
Net income $ 12,283     $ 8,098     $ 27,067     $ 21,553  
Unrealized gain (loss) on available-for-sale securities, net of tax 253     (37 )   1,077     (742 )
Comprehensive income $ 12,536     $ 8,061     $ 28,144     $ 20,811  
               
Net income per share:              
Basic $ 1.37     $ 0.91     $ 3.02     $ 2.43  
Diluted $ 1.35     $ 0.89     $ 2.98     $ 2.38  
Weighted average shares outstanding:              
Basic 8,992,456     8,903,742     8,970,008     8,881,822  
Diluted 9,102,562     9,064,900     9,096,442     9,040,146  
                       
CAVCO INDUSTRIES, INC.
OTHER OPERATING DATA
(Dollars in thousands)
(Unaudited)
       
  Three Months Ended   Nine Months Ended
  December 31,  2016   December 26,  2015   December 31,  2016   December 26,  2015
Net revenue:              
Factory-built housing $ 188,546     $ 167,280     $ 536,513     $ 492,281  
Financial services 13,764     14,147     39,286     42,778  
Total net revenue $ 202,310     $ 181,427     $ 575,799     $ 535,059  
               
Income before income taxes:              
Factory-built housing $ 12,370     $ 9,703     $ 33,437     $ 26,674  
Financial services 4,909     2,302     5,370     6,453  
Total income before income taxes $ 17,279     $ 12,005     $ 38,807     $ 33,127  
               
Capital expenditures $ 1,238     $ 1,338     $ 4,343     $ 2,447  
Depreciation $ 818     $ 926     $ 2,486     $ 2,499  
Amortization of other intangibles $ 92     $ 112     $ 276     $ 417  
               
Total factory-built homes sold 3,486     3,213     10,123     9,379  
                       

 

For additional information, contact: Dan Urness CFO and Treasurer danu@cavco.com Phone: 602-256-6263 On the Internet: www.cavco.com

Scroll down for more posts ▼

Top 10 Most Recent News Articles

Leapora's Taskeen: Redefining Task Accountability

Updated Category News Views 2

AI's Impact on Workplace Task Management In today’s whirlwind of AI-generated output, transparency is not just a luxury; it’s a necessity. AI systems churn out work that can appear polished but often lacks substance. This doesn't just create headaches; it triggers a ticking bomb in the regulatory department. According to a 2025 survey from Stanford and BetterUp Labs,...

Continue Reading
MRI Surveillance Gains Ground in Lung Cancer Care

Updated Category News Views 7

Shifting the Standard: MRI's Rise in SCLC Treatment Here's a twist that baffles the traditionalists—ditch the prophylactic cranial irradiation (PCI) and catch clearer days with MRI surveillance for small-cell lung cancer (SCLC). The latest international phase III MAVERICK trial might just redraw the lines on what's considered standard care in this relentless disease....

Continue Reading
GORGIE Unleashes Berry Burst: Target's New Drink Star

Updated Category News Views 6

GORGIE Targets Taste Buds with Berry Burst Ever feel like you're missing out on that energy drink everyone seems to be raving about? Well, GORGIE's out there making some noise again, and this time it's got a new punchy player in the game: Berry Burst. It's not just another drink; it's shaking things up in the energy aisle with its exclusive launch at Target. Modern style...

Continue Reading
Compass Unveiled: Power Revolution in Private Equity

Updated Category News Views 5

AI-Driven Insights: Revolutionizing Private Equity Strategies Now this is some spicy news from Huntington Beach! Collective just pulled back the curtain on Compass, their AI-fueled platform that's set to shake up how financial advisors tackle private company equity. If you're an advisor who's sick of staring at nebulous balance sheets filled with unquantifiable private...

Continue Reading
Sean Trahan Joins Citrin Cooperman: New Tax Lead

Updated Category News Views 4

Citrin Cooperman's Strategic Tax Move If there's one phrase that can spark a debate at a financial water cooler, it's 'transfer pricing.' Today, Citrin Cooperman is throwing its hat further into that ring with the appointment of Sean Trahan as head of their new Transfer Pricing and Value Chain Optimization Practice. This isn't just another reshuffling of office...

Continue Reading
FJBio Boosts Antibody Discovery with Sapio AI

Updated Category News Views 2

In the sprawling world of antibody discovery, where every scrap of data can make or break the next big breakthrough, FairJourney Bio (FJBio) is pulling out all the stops. They've teamed up with Sapio Sciences to ditch the paperwork nightmares and usher in a new era of AI-driven efficiency. With operations stretching from Porto to Cambridge to sunny San Diego, they’re...

Continue Reading
PANDAG G1 Debuts: Revolutionizing Lawn Care Efficiency

Updated Category News Views 6

The Future of Landscaping Unveiled Get this—PANDAG is set to shake things up at GaLaBau 2026 with their futuristic G1 autonomous mower. This isn't just another piece of lawn equipment; it's practically a tech marvel on wheels, weaving together LiDAR, AI Vision, RTK, and 4G tech to make it the ultimate multitasker for the landscaping industry. We're talking obstacle...

Continue Reading
The Chemical Industry and EPA: A Broken System?

Updated Category News Views 3

Decades of an Unchecked Revolving Door The Environmental Protection Agency (EPA) and chemical manufacturers—a dance that’s been going on for what seems like forever. But not in the way you might hope. We're talking about a revolving door where execs and lobbyists waltz into regulatory chairs while regulators slide into cushy industry gigs. Wisner Baum LLP, a stickler...

Continue Reading
Dr. Desi Bartlett Teams Up with Glo for Perimenopause Focus

Updated Category News Views 4

Glo Taps Top Wellness Expert for Women's Health Initiative In an industry brimming with wellness voices, it's rare to find one that marries scholarly acumen with authentic, personal teaching. Yet, this is precisely what Dr. Desi Bartlett brings to the table as she partners with Glo to offer new fitness programming specifically targeting women facing perimenopause and...

Continue Reading
First-Time Homeowners: Unseen Pitfalls of Insurance

Updated Category News Views 6

Understanding Homeowners Insurance: Beyond the Basics Most folks diving into homeownership for the first time get caught up in the whirlwind of price tags, loans, and knick-knacks for their new place. Meanwhile, the nitty-gritty of homeowners insurance often gets tossed to the side. But take it from a weary watchdog of financial storms—it’s those details in the policy...

Continue Reading

Top 5 Most Recently Viewed Articles

CampusGuard Partners with VO to Enhance U.S. Market Presence

Updated Category News Views 113

CampusGuard and VO Join Forces for U.S. Expansion CampusGuard, a well-recognized entity in cybersecurity and compliance, has entered into a significant partnership with VO, a software innovator focused on identity and credentialing solutions. This alliance is designed to amplify VO's capabilities and presence within the U.S. market. Leveraging Expertise for Market Growth...

Continue Reading
Cegedim Highlights Financial Progress in Interim Report 2024

Updated Category News Views 145

Cegedim's 2024 Interim Financial Report dropped in mid-2024, giving traders a glimpse of the company’s financials and future direction. But let's be real: how much can you trust what they spin? This isn’t just another report; it’s a peek behind the curtain at a firm that’s been playing in the tech and services arena for healthcare since 1969. Financial Figures:...

Continue Reading
Volvo Group and Daimler Truck Join Forces on Vehicle Innovation

Updated Category News Views 362

Volvo Group and Daimler Truck Enter Groundbreaking Joint Venture In a significant move for the automotive industry, Volvo Group and Daimler Truck have officially signed a binding agreement to create a joint venture that will focus on the development of a state-of-the-art software-defined vehicle platform specifically designed for heavy-duty vehicles. This venture is aimed...

Continue Reading
GameStop's Unique Trading Card Leads to Surprising Bitcoin Win

Updated Category News Views 210

GameStop's Exciting New Venture in Trading Cards In a thrilling development for both collectors and investors, GameStop Corporation (NYSE: GME) has rolled out new trading cards that have caught the eye of the cryptocurrency community. Recently, a customer's incredible find made headlines when they discovered a $33 pack of Cardsmiths Currency Series 1 trading cards...

Continue Reading
Abitibi Metals Reports Promising Results from B26 Deposit Drilling

Updated Category News Views 78

Abitibi Metals Excited About New Drill Results Abitibi Metals Corp., known for its extensive exploration activities, has recently announced impressive drilling results from the B26 Deposit. The company has successfully completed its Phase II drilling program and has provided positive updates that could enhance its resource estimates significantly. Key Highlights from the...

Continue Reading