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Cavco Industries Reports Fiscal 2024 Fourth Quarter and Year End Results
المصدر: Nasdaq GlobeNewswire / 23 مايو 2024 15:05:00 America/Chicago
PHOENIX, May 23, 2024 (GLOBE NEWSWIRE) -- Cavco Industries, Inc. (Nasdaq: CVCO) today announced financial results for the fourth quarter and fiscal year ended March 30, 2024.
Quarterly Highlights
- Net revenue and Net income of $420 million and $34 million, respectively.
- Gross profit as a percentage of Net revenue was 23.6% with factory-built housing Gross profit as a percentage of Net revenue at 22.4%, down 170 bps and 200 bps, respectively, from last year's fourth quarter.
- Net income per diluted share attributable to Cavco common stockholders was $4.03 compared to $5.39 in last year's fourth quarter.
Full Fiscal Year Highlights
- Net revenue was $1,795 million, down $348 million or 16.2% compared to $2,143 million last year.
- Factory-built housing Gross profit as a percentage of Net revenue was 23.2%, compared to 25.3% in the prior year.
- Income before income taxes was $199 million, down $108 million or 35.2% compared to $307 million in the prior year
- Net income per diluted share attributable to Cavco common stockholders was $18.37 compared to $26.95 last year.
- Backlogs at March 30, 2024 were $191 million, up $31 million or 19.4% compared to $160 million three months ago and down from $244 million at April 1, 2023.
- Stock repurchases were approximately $110 million in the year.
Commenting on the results, Bill Boor, President and Chief Executive Officer, said, "The quarter started with several plants missing operating days due to thin backlogs coming out of the holidays. However, as the quarter progressed, order rates improved and almost all plants were back to 5-day operations."
He continued, "Against the backdrop of higher interest rates and economic challenges, our team continued to deliver solid margins and cash flow. During the year, we significantly increased capacity through the successful integration of the Solitaire acquisition and the Hamlet and Glendale plant startups; we expanded our retail distribution footprint; we rolled out our new Anthem series, the first nationally available HUD-approved manufactured duplex; and we responsibly managed our balance sheet with approximately $110 million of share repurchases. Affordable housing remains a pressing need and our ability to provide affordable homes for families has never been stronger."
Three months ended March 30, 2024 compared to three months ended April 1, 2023
Three Months Ended ($ in thousands, except revenue per home sold) March 30,
2024April 1,
2023Change Net revenue Factory-built housing $ 398,493 $ 456,058 $ (57,565 ) (12.6 )% Financial services 21,625 20,322 1,303 6.4 % $ 420,118 $ 476,380 $ (56,262 ) (11.8 )% Factory-built modules sold 6,231 7,236 (1,005 ) (13.9 )% Factory-built homes sold (consisting of one or more modules) 3,938 4,477 (539 ) (12.0 )% Net factory-built housing revenue per home sold $ 101,192 $ 101,867 $ (675 ) (0.7 )% - In the factory-built housing segment, the decrease in Net revenue was primarily due to lower sales volume.
- Financial services segment Net revenue increased primarily due to more insurance policies in force in the current period compared to the prior year, partially offset by reduced revenue from loan sales.
Three Months Ended ($ in thousands) March 30,
2024April 1,
2023Change Gross profit Factory-built housing $ 89,288 $ 111,355 $ (22,067 ) (19.8 )% Financial services 9,727 9,286 441 4.7 % $ 99,015 $ 120,641 $ (21,626 ) (17.9 )% Gross profit as % of Net revenue Consolidated 23.6 % 25.3 % N/A (1.7 )% Factory-built housing 22.4 % 24.4 % N/A (2.0 )% Financial services 45.0 % 45.7 % N/A (0.7 )% Selling, general and administrative expenses Factory-built housing $ 55,937 $ 61,208 $ (5,271 ) (8.6 )% Financial services 5,485 5,181 304 5.9 % $ 61,422 $ 66,389 $ (4,967 ) (7.5 )% Income from operations Factory-built housing $ 33,351 $ 50,147 $ (16,796 ) (33.5 )% Financial services 4,242 4,105 137 3.3 % $ 37,593 $ 54,252 $ (16,659 ) (30.7 )% - In the factory-built housing segment, Gross profit decreased from lower sales volume. Selling, general and administrative expenses decreased primarily as a result of decreases in non-recurring expenses related to third-party consultants fees for energy efficient home tax credits, lower costs in the current year related to the ongoing litigation between an indemnified former officer and the Securities and Exchange Commission (the "SEC"), Solitaire acquisition costs in the prior year period, as well as lower compensation on reduced earnings.
- In the financial services segment, Gross profit increased primarily due to higher revenue from more insurance policies in force in the current period compared to the prior year and fewer weather related events compared to the prior year.
Three Months Ended ($ in thousands, except per share amounts) March 30,
2024April 1,
2023Change Net income attributable to Cavco common stockholders $ 33,934 $ 47,312 $ (13,378 ) (28.3 )% Diluted net income per share $ 4.03 $ 5.39 $ (1.36 ) (25.2 )% Items ancillary to our core operations had the following impact on the results of operations:
Three Months Ended ($ in millions) March 30,
2024April 1,
2023Net revenue Unrealized gains recognized during the period on marketable equity securities held in the financial services segment $ 0.9 $ 0.4 Selling, general and administrative expenses Expenses incurred in engaging third-party consultants in relation to the non-recurring energy efficient home tax credits — (2.2 ) Legal and other expense related to the SEC inquiry, including indemnified costs of a former officer (0.4 ) (1.9 ) Acquisition related transaction costs — (1.9 ) Other income, net Corporate unrealized gains recognized during the period on securities held — 2.0 Income tax expense Energy efficient home tax credits, net — 3.0 Tax benefits from stock option exercises 0.2 0.5 Year ended March 30, 2024 compared to the year ended April 1, 2023
Year Ended ($ in thousands, except revenue per home sold) March 30,
2024April 1,
2023Change Net revenue Factory-built housing $ 1,716,607 $ 2,069,450 $ (352,843 ) (17.1 )% Financial services 78,185 73,263 4,922 6.7 % $ 1,794,792 $ 2,142,713 $ (347,921 ) (16.2 )% Factory-built modules sold 27,355 32,885 (5,530 ) (16.8 )% Factory-built homes sold (consisting of one or more modules) 16,928 19,376 (2,448 ) (12.6 )% Net factory-built housing revenue per home sold $ 101,406 $ 106,805 $ (5,399 ) (5.1 )% - In the factory-built housing segment, the year-over-year decrease in Net revenue was primarily due to lower home sales volume and lower selling prices, partially offset by full year activity from the Solitaire Homes acquisition compared to only three months of activity in the prior year.
- Financial services segment Net revenue increased year-over-year primarily due to more insurance policies in force in the current year compared to the prior year, partially offset by reduced revenue from loan sales.
Year Ended ($ in thousands) March 30,
2024April 1,
2023Change Gross profit Factory-built housing $ 398,919 $ 523,529 $ (124,610 ) (23.8 )% Financial services 27,983 31,403 (3,420 ) (10.9 )% $ 426,902 $ 554,932 $ (128,030 ) (23.1 )% Gross profit as % of Net revenue Consolidated 23.8 % 25.9 % N/A (2.1 )% Factory-built housing 23.2 % 25.3 % N/A (2.1 )% Financial services 35.8 % 42.9 % N/A (7.1 )% Selling, general and administrative expenses Factory-built housing $ 226,267 $ 237,898 $ (11,631 ) (4.9 )% Financial services 21,653 20,425 1,228 6.0 % $ 247,920 $ 258,323 $ (10,403 ) (4.0 )% Income from operations Factory-built housing $ 172,652 $ 285,631 $ (112,979 ) (39.6 )% Financial services 6,330 10,978 (4,648 ) (42.3 )% $ 178,982 $ 296,609 $ (117,627 ) (39.7 )% - In the factory-built housing segment, Gross profit decreased from lower home sales and lower selling prices. Selling, general and administrative expenses decreased as a result of lower incentive compensation on reduced sales.
- In the financial services segment, Gross profit decreased primarily due to higher weather related insurance claims and reduced revenue from loan sales.
Year Ended ($ in thousands, except per share amounts) March 30,
2024April 1,
2023Change Net income attributable to Cavco common stockholders $ 157,817 $ 240,554 $ (82,737 ) (34.4 )% Diluted net income per share $ 18.37 $ 26.95 $ (8.58 ) (31.8 )% Items ancillary to our core operations had the following impact on the results of operations:
Year Ended ($ in millions) March 30,
2024April 1,
2023Net revenue Unrealized gains (losses) recognized during the period on securities held in the financial services segment $ 1.3 $ (0.1 ) Selling, general and administrative expenses Expenses incurred in engaging third-party consultants in relation to the non-recurring energy efficient home tax credits — (7.3 ) Legal and other expense related to the SEC inquiry, net of recovery (3.4 ) (5.5 ) Acquisition transaction costs — (2.5 ) Other income, net Gains recognized during the period on corporate securities 0.3 0.8 Income tax expense Energy efficient home tax credits, net — 8.1 Tax benefits from stock option exercises 1.3 0.9 Conference Call Details
Cavco's management will hold a conference call to review these results tomorrow, May 24, 2024 at 1:00 p.m. (Eastern Time). Interested parties can access a live webcast of the conference call on the Internet at https://investor.cavco.com or via telephone. To participate by phone, please register here to receive the dial in number and your PIN. An archive of the webcast and presentation will be available for 60 days at https://investor.cavco.com.
About Cavco
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. We are one of the largest producers of manufactured and modular homes in the United States, based on reported wholesale shipments. Our products are marketed under a variety of brand names including Cavco, Fleetwood, Palm Harbor, Nationwide, Fairmont, Friendship, Chariot Eagle, Destiny, Commodore, Colony, Pennwest, R-Anell, Manorwood, MidCountry and Solitaire. We are also a leading producer of park model RVs, vacation cabins and factory-built commercial structures. Cavco's finance subsidiary, CountryPlace Mortgage, is an approved Fannie Mae and Freddie Mac seller/servicer and a Ginnie Mae mortgage-backed securities issuer that offers conforming mortgages, non-conforming mortgages and home-only loans to purchasers of factory-built homes. Our insurance subsidiary, Standard Casualty, provides property and casualty insurance to owners of manufactured homes.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that are not historical facts. These forward-looking statements reflect Cavco’s current expectations and projections with respect to our expected future business and financial performance, including, among other things: (i) expected financial performance and operating results, such as revenue and gross margin percentage; (ii) our liquidity and financial resources; (iii) our outlook with respect to the Company and the manufactured housing business in general; (iv) the expected effect of certain risks and uncertainties on our business; and (iv) the strength of Cavco’s business model. These statements may be preceded by, followed by, or include the words "aim," "anticipate," "believe," "estimate," "expect," "forecast," "future," "goal," "intend," "likely," "outlook," "plan," "potential," "project," "seek," "target," "can," "could," "may," "should," "would," "will," the negatives thereof and other words and terms of similar meaning. A number of factors could cause actual results or outcomes to differ materially from those indicated by these forward-looking statements. These factors include, among other factors, Cavco’s ability to manage: (i) customer demand and the availability of financing for our products; (ii) labor shortages and the pricing, availability, or transportation of raw materials; (iii) the impact of local or national emergencies; (iv) excessive health and safety incidents or warranty and construction claims; (v) increases in cancellations of home sales; (vi) information technology failures or cyber incidents; (vii) our ability to maintain the security of personally identifiable information of our customers, (viii) comply with the numerous laws and regulations applicable to our business, including state, federal, and foreign laws relating manufactured housing, privacy, the internet, and accounting matters; (ix) successfully defend against litigation, government inquiries, and investigations, and (x) other risks and uncertainties indicated from time to time in documents filed or to be filed with the Securities and Exchange Commission (the "SEC") by Cavco. The forward-looking statements herein represent the judgment of Cavco as of the date of this release and Cavco disclaims any intent or obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments, or otherwise. This press release should be read in conjunction with the information included in the Company's other press releases, reports, and other filings with the SEC. Readers are specifically referred to the Risk Factors described in Item 1A of the Company's Annual Report on Form 10-K for the year ended April 1, 2023 as may be updated from time to time in future filings on Form 10-Q and other reports filed by the Company pursuant to the Securities Exchange Act of 1934, which identify important risks that could cause actual results to differ from those contained in the forward-looking statements. Understanding the information contained in these filings is important in order to fully understand Cavco’s reported financial results and our business outlook for future periods.
CAVCO INDUSTRIES, INC. CONSOLIDATED BALANCE SHEETS (Dollars in thousands, except per share amounts) March 30,
2024April 1,
2023ASSETS (Unaudited) Current assets Cash and cash equivalents $ 352,687 $ 271,427 Restricted cash, current 15,481 11,728 Accounts receivable, net 77,123 89,347 Short-term investments 18,270 14,978 Current portion of consumer loans receivable, net 20,713 17,019 Current portion of commercial loans receivable, net 40,787 43,414 Current portion of commercial loans receivable from affiliates, net 2,529 640 Inventories 241,339 263,150 Prepaid expenses and other current assets 82,870 92,876 Total current assets 851,799 804,579 Restricted cash 585 335 Investments 17,316 18,639 Consumer loans receivable, net 23,354 27,129 Commercial loans receivable, net 45,660 53,890 Commercial loans receivable from affiliates, net 2,065 4,033 Property, plant and equipment, net 224,199 228,278 Goodwill 121,934 114,547 Other intangibles, net 28,221 29,790 Operating lease right-of-use assets 39,027 26,755 Total assets $ 1,354,160 $ 1,307,975 LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST, AND STOCKHOLDERS' EQUITY Current liabilities Accounts payable $ 33,531 $ 30,730 Accrued expenses and other current liabilities 239,736 262,661 Total current liabilities 273,267 293,391 Operating lease liabilities 35,148 21,678 Other liabilities 7,759 7,820 Deferred income taxes 4,575 7,581 Redeemable noncontrolling interest — 1,219 Stockholders' equity Preferred stock, $0.01 par value; 1,000,000 shares authorized; No shares issued or outstanding — — Common stock, $0.01 par value; 40,000,000 shares authorized; Issued 9,389,953 and 9,337,125 shares, respectively; Outstanding 8,320,718 and 8,665,324 shares, respectively 94 93 Treasury stock, at cost; 1,069,235 and 671,801 shares, respectively (274,693 ) (164,452 ) Additional paid-in capital 281,216 271,950 Retained earnings 1,027,127 869,310 Accumulated other comprehensive loss (333 ) (615 ) Total stockholders' equity 1,033,411 976,286 Total liabilities, redeemable noncontrolling interest and stockholders' equity $ 1,354,160 $ 1,307,975 CAVCO INDUSTRIES, INC. CONSOLIDATED STATEMENTS OF INCOME (Dollars in thousands, except per share amounts) (Unaudited) Three Months Ended Year Ended March 30,
2024April 1,
2023March 30,
2024April 1,
2023Net revenue $ 420,118 $ 476,380 $ 1,794,792 $ 2,142,713 Cost of sales 321,103 355,739 1,367,890 1,587,781 Gross profit 99,015 120,641 426,902 554,932 Selling, general and administrative expenses 61,422 66,389 247,920 258,323 Income from operations 37,593 54,252 178,982 296,609 Interest income 5,334 3,933 20,998 10,679 Interest expense (284 ) (300 ) (1,649 ) (910 ) Other income, net 292 676 849 385 Income before income taxes 42,935 58,561 199,180 306,763 Income tax expense (9,001 ) (11,201 ) (41,275 ) (65,922 ) Net income 33,934 47,360 157,905 240,841 Less: net income attributable to redeemable noncontrolling interest — 48 88 287 Net income attributable to Cavco common stockholders $ 33,934 $ 47,312 $ 157,817 $ 240,554 Net income per share attributable to Cavco common stockholders Basic $ 4.07 $ 5.45 $ 18.55 $ 27.20 Diluted $ 4.03 $ 5.39 $ 18.37 $ 26.95 Weighted average shares outstanding Basic 8,338,595 8,683,376 8,506,673 8,844,326 Diluted 8,428,613 8,781,079 8,591,911 8,924,452 CAVCO INDUSTRIES, INC. OTHER OPERATING DATA (Dollars in thousands) (Unaudited) Three Months Ended Year Ended March 30,
2024April 1,
2023March 30,
2024April 1,
2023Capital expenditures $ 4,184 $ 3,256 $ 17,421 $ 44,106 Depreciation $ 4,279 $ 4,170 $ 16,956 $ 14,833 Amortization of other intangibles $ 392 $ 559 $ 1,569 $ 2,070 For additional information, contact: Mark Fusler
Corporate Controller and Investor Relations
investor_relations@cavco.comPhone: 602-256-6263
On the Internet: www.cavcoindustries.com
