PHOENIX, Jan. 30, 2025 (GLOBE NEWSWIRE) -- Cavco Industries, Inc. (NASDAQ:CVCO) ("we," "our," the "Company" or "Cavco") today announced financial results for the third fiscal quarter ended December 28, 2024.

Quarterly Highlights

Net revenue was $522 million, up $75 million or 16.8% compared to $447 million in the third quarter of the prior year, primarily on home sales volume growth.
Home sales volume is up 21.6% and capacity utilization is up to approximately 75% from approximately 60% in the third quarter of the prior year.
Factory-built housing Gross profit as a percentage of Net revenue was 23.6%, compared to 22.4% in the prior year period.
Financial services Gross profit as a percentage of Net revenue was 55.5%, compared to Gross profit of 36.8% in the prior year period.
Income before income taxes was $69.3 million, up $25.4 million, or 57.9% compared to $43.9 million in the prior year period.
The effective tax rate was 18.6% with the difference from the statutory rate driven primarily by higher than expected production of Energy Star homes year to date.
Net income per diluted share attributable to Cavco common stockholders was $6.90, up 62%, compared to $4.27 in the prior year quarter on higher Factory-built housing volume and stronger Financial services results.
Backlogs totaled $224 million at the end of the quarter representing 6-8 weeks of production.
Stock repurchases were approximately $42 million in the quarter.

Commenting on the quarter, President and Chief Executive Officer Bill Boor said, "Our pre-tax profit improved significantly on increased home shipments and a strong recovery in Financial services. The outstanding EPS performance was further boosted by positive tax items and our continuing use of buybacks to manage the balance sheet."

He continued, "While the third quarter is typically strong for our insurance operation, pricing and underwriting improvements implemented earlier in the year came to fruition and led to one of the strongest Financial services quarters in several years. In Factory-built housing, we executed our plan to utilize backlogs to ramp up production in anticipation of continued market improvement. Across the board, we are very well set-up going into the new calendar year."

Financial Results

	Three Months Ended
($ in thousands, except revenue per home sold)	December 28, 2024		December 30, 2023		Change
Net revenue
Factory-built housing	$	500,860	$	426,939	$	73,921		17.3%
Financial services		21,180		19,830		1,350		6.8%
	$	522,040	$	446,769	$	75,271		16.8%

Factory-built modules sold		8,378		6,806		1,572		23.1%

Factory-built homes sold (consisting of one or more modules)		5,059		4,160		899		21.6%

Net factory-built housing revenue per home sold	$	99,004	$	102,630	$	(3,626	)	(3.5)%

	Nine Months Ended
($ in thousands, except revenue per home sold)	December 28, 2024		December 30, 2023		Change
Net revenue
Factory-built housing	$	1,445,251	$	1,318,114	$	127,137		9.6%
Financial services		61,849		56,560		5,289		9.4%
	$	1,507,100	$	1,374,674	$	132,426		9.6%

Factory-built modules sold		24,168		21,124		3,044		14.4%

Factory-built homes sold (consisting of one or more modules)		14,693		12,990		1,703		13.1%

Net factory-built housing revenue per home sold	$	98,363	$	101,471	$	(3,108	)	(3.1)%

In the factory-built housing segment, the increase in Net revenue in both periods was due to higher home sales volume, partially offset by a decrease in Net revenue per home sold primarily caused by a lower proportion of homes sold through our Company-owned stores.
Financial services segment Net revenue increased in both periods from higher insurance premiums.

	Three Months Ended
($ in thousands)	December 28, 2024			December 30, 2023			Change
Gross profit
Factory-built housing	$	118,193		$	95,756		$	22,437		23.4%
Financial services		11,757			7,295			4,462		61.2%
	$	129,950		$	103,051		$	26,899		26.1%

Gross profit as % of Net revenue
Consolidated		24.9	%		23.1	%	N/A			1.8%
Factory-built housing		23.6	%		22.4	%	N/A			1.2%
Financial services		55.5	%		36.8	%	N/A			18.7%

Selling, general and administrative expenses
Factory-built housing	$	60,409		$	57,854		$	2,555		4.4%
Financial services		5,571			5,458			113		2.1%
	$	65,980		$	63,312		$	2,668		4.2%

Income from operations
Factory-built housing	$	57,784		$	37,902		$	19,882		52.5%
Financial services		6,186			1,837			4,349		236.7%
	$	63,970		$	39,739		$	24,231		61.0%

	Nine Months Ended
($ in thousands)	December 28, 2024			December 30, 2023			Change
Gross profit
Factory-built housing	$	333,223		$	309,631		$	23,592		7.6%
Financial services		16,251			18,256			(2,005	)	(11.0)%
	$	349,474		$	327,887		$	21,587		6.6%

Gross profit as % of Net revenue
Consolidated		23.2	%		23.9	%	N/A			(0.7)%
Factory-built housing		23.1	%		23.5	%	N/A			(0.4)%
Financial services		26.3	%		32.3	%	N/A			(6.0)%

Selling, general and administrative expenses
Factory-built housing	$	181,569		$	170,330		$	11,239		6.6%
Financial services		16,259			16,168			91		0.6%
	$	197,828		$	186,498		$	11,330		6.1%

Income from operations
Factory-built housing	$	151,654		$	139,301		$	12,353		8.9%
Financial services		(8	)		2,088			(2,096	)	(100.4)%
	$	151,646		$	141,389		$	10,257		7.3%

In the factory-built housing segment, Gross profit as a percent of Net revenue for the three months increased due to lower input costs per unit and efficiencies gained on increased production, partially offset by lower average selling price. Gross profit as a percent of Net revenue for the nine months decreased due to lower average selling price, partially offset by lower input costs per unit.
In the financial services segment, Gross profit and Income from operations for the three months increased due to higher insurance premiums and lower claim losses. Gross profit and Income from operations for the nine months decreased due to higher storm and fire activity, partially offset by higher insurance premiums.
Selling, general and administrative expenses increased for both periods as a result of increases in variable compensation driven by higher incentive compensation and increases in expense from acquired retail locations, partially offset by lower legal expenses.


	Three Months Ended
($ in thousands, except per share amounts)	December 28, 2024		December 30, 2023		Change
Interest Income	$	5,353	$	5,234	$	119	2.3%
Net income attributable to Cavco common stockholders	$	56,462	$	35,987	$	20,475	56.9%
Diluted net income per share	$	6.90	$	4.27	$	2.63	61.6%

	Nine Months Ended
($ in thousands, except per share amounts)	December 28, 2024		December 30, 2023		Change
Interest Income	$	16,556	$	15,664	$	892	5.7%
Net income attributable to Cavco common stockholders	$	134,706	$	123,883	$	10,823	8.7%
Diluted net income per share	$	16.25	$	14.34	$	1.91	13.3%

Items ancillary to our core operations had the following impact on the results of operations:

	Three Months Ended						Nine Months Ended
($ in millions)	December 28, 2024			December 30, 2023			December 28, 2024			December 30, 2023
Net revenue
Unrealized (losses) gains recognized during the period on securities held in the financial services segment	$	(2.4	)	$	0.4		$	(1.9	)	$	0.4
Selling, general and administrative expenses
Legal and other expense related to the SEC inquiry, including indemnified costs of a former officer		—			(2.0	)		—			(3.0	)
Other income, net
Unrealized (losses) gains on corporate equity securities		(0.2	)		2.0			(0.1	)		0.3

Conference Call Details

Cavco's management will hold a conference call to review these results tomorrow, January 31, 2025, 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 at 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 March 30, 2024 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)

	December 28, 2024			March 30, 2024
ASSETS	(Unaudited)
Current assets
Cash and cash equivalents	$	362,863		$	352,687
Restricted cash, current		15,178			15,481
Accounts receivable, net		91,840			77,123
Short-term investments		16,062			18,270
Current portion of consumer loans receivable, net		33,242			20,713
Current portion of commercial loans receivable, net		34,892			40,787
Current portion of commercial loans receivable from affiliates, net		1,358			2,529
Inventories		243,299			241,339
Prepaid expenses and other current assets		79,253			82,870
Total current assets		877,987			851,799
Restricted cash		585			585
Investments		18,287			17,316
Consumer loans receivable, net		20,394			23,354
Commercial loans receivable, net		51,305			45,660
Commercial loans receivable from affiliates, net		6,798			2,065
Property, plant and equipment, net		226,126			224,199
Goodwill		121,969			121,934
Other intangibles, net		27,068			28,221
Operating lease right-of-use assets		35,248			39,027
Total assets	$	1,385,767		$	1,354,160
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable	$	26,088		$	33,531
Accrued expenses and other current liabilities		259,134			239,736
Total current liabilities		285,222			273,267
Operating lease liabilities		31,472			35,148
Other liabilities		7,206			7,759
Deferred income taxes		4,642			4,575
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 9,422,969 and 9,389,953 shares, respectively; Outstanding 8,066,549 and 8,320,718, respectively		94			94
Treasury stock, at cost; 1,356,420 and 1,069,235 shares, respectively		(391,128	)		(274,693	)
Additional paid-in capital		286,573			281,216
Retained earnings		1,161,833			1,027,127
Accumulated other comprehensive loss		(147	)		(333	)
Total stockholders' equity		1,057,225			1,033,411
Total liabilities and stockholders' equity	$	1,385,767		$	1,354,160

CAVCO INDUSTRIES, INC.

CONSOLIDATED STATEMENTS OF INCOME

(Dollars in thousands, except per share amounts)

(Unaudited)

	Three Months Ended						Nine Months Ended
	December 28, 2024			December 30, 2023			December 28, 2024			December 30, 2023
Net revenue	$	522,040		$	446,769		$	1,507,100		$	1,374,674
Cost of sales		392,090			343,718			1,157,626			1,046,787
Gross profit		129,950			103,051			349,474			327,887
Selling, general and administrative expenses		65,980			63,312			197,828			186,498
Income from operations		63,970			39,739			151,646			141,389
Interest income		5,353			5,234			16,556			15,664
Interest expense		(155	)		(842	)		(370	)		(1,365	)
Other income, net		168			(224	)		315			557
Income before income taxes		69,336			43,907			168,147			156,245
Income tax expense		(12,874	)		(7,920	)		(33,441	)		(32,274	)
Net income		56,462			35,987			134,706			123,971
Less: net income attributable to redeemable noncontrolling interest		—			—			—			88
Net income attributable to Cavco common stockholders	$	56,462		$	35,987		$	134,706		$	123,883

Net income per share attributable to Cavco common stockholders
Basic	$	6.97		$	4.31		$	16.42		$	14.47
Diluted	$	6.90		$	4.27		$	16.25		$	14.34
Weighted average shares outstanding
Basic		8,096,538			8,358,389			8,203,448			8,561,209
Diluted		8,186,814			8,432,471			8,291,647			8,640,288

CAVCO INDUSTRIES, INC.

OTHER OPERATING DATA

(Dollars in thousands)

(Unaudited)

	Three Months Ended				Nine Months Ended
	December 28, 2024		December 30, 2023		December 28, 2024		December 30, 2023
Capital expenditures	$	5,434	$	4,767	$	15,253	$	13,237
Depreciation	$	4,407	$	4,228	$	13,151	$	12,677
Amortization of other intangibles	$	377	$	392	$	1,154	$	1,177

For additional information, contact:

Mark Fusler

Corporate Controller and Investor Relations

investor_relations@cavco.com

Phone: 602-256-6263

On the Internet: www.cavcoindustries.com

Cavco Industries Reports Fiscal 2025 Third Quarter Results