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 atApril 1, 2023 . - Stock repurchases were approximately $110 million in the year.
Commenting on the results,
He continued, "Against the backdrop of higher interest rates and economic challenges, our team continued to deliver solid margins and cash flow. During the year, we significantly increased capacity through the successful integration of the Solitaire acquisition and the Hamlet and
Three months ended
Three Months Ended | ||||||||||||
($ in thousands, except revenue per home sold) | 2024 | 2023 | Change | |||||||||
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) | 2024 | 2023 | Change | |||||||||||
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) | 2024 | 2023 | Change | |||||||||
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) | 2024 | 2023 | ||||||
Net 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 | (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
Year Ended | ||||||||||||
($ in thousands, except revenue per home sold) | 2024 | 2023 | Change | |||||||||
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) | 2024 | 2023 | Change | |||||||||||
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) | 2024 | 2023 | Change | |||||||||
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) | 2024 | 2023 | ||||||
Net 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 | (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,
About Cavco
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
CONSOLIDATED BALANCE SHEETS | |||||||
(Dollars in thousands, except per share amounts) | |||||||
2024 | 2023 | ||||||
ASSETS | (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 | |||||
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, | — | — | |||||
Common stock, | 94 | 93 | |||||
(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 | |||
CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||||
(Dollars in thousands, except per share amounts) | |||||||||||||||
(Unaudited) | |||||||||||||||
Three Months Ended | Year Ended | ||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||
Net 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 | |||||||||||
OTHER OPERATING DATA | |||||||||||
(Dollars in thousands) | |||||||||||
(Unaudited) | |||||||||||
Three Months Ended | Year Ended | ||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||
Capital 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.com |
Phone: 602-256-6263 On the Internet: www.cavcoindustries.com |
Source:
2024 GlobeNewswire, Inc., source