PHOENIX, Oct. 31, 2024 (GLOBE NEWSWIRE) -- Cavco Industries, Inc. (Nasdaq: CVCO) ("we," "our," the "Company" or "Cavco") today announced financial results for the second fiscal quarter ended September 28, 2024.
Quarterly Highlights
- Net revenue was $507 million, up $55 million or 12.3% compared to $452 million in the second quarter of the prior year, primarily on home sales volume growth.
- Home sales volume is up 15.7% and capacity utilization is up to approximately 70% from approximately 60% in the second quarter of the prior year.
- Factory-built housing Gross profit as a percentage of Net revenue was 22.9%, compared to 23.2% in the prior year period.
- Financial services Gross profit as a percentage of Net revenue was 21.8%, compared to Gross profit of 35.9% in the prior year period.
- Income before income taxes was $55.0 million, up $3.3 million or 6.4% compared to $51.7 million in the prior year period.
- Net income per diluted share attributable to Cavco common stockholders was $5.28 compared to $4.76 in the prior year quarter.
- Backlogs totaled $276 million at the end of the quarter, up $44 million, or 19%, from $232 million three months ago, with modules in the backlog growing 20%.
- Stock repurchases were approximately $44 million in the quarter.
- On October 29, 2024, the Company's Board of Directors approved an additional $100 million stock repurchase program.
He continued, "Our continuing prayers and support are with all those affected by Hurricanes Helene and Milton. Thankfully, our employees and their families remained safe; however, many suffered devastating property damage. While dealing with their personal challenges, our Cavco teammates resumed operations, minimizing any negative home shipment effects. Our thanks go out to all our dedicated co-workers in the region for their grit and commitment to providing homes for our customers. The critical importance of that work has never been more apparent than in the aftermath of these catastrophes."
Financial Results
| Three Months Ended | |||||||||||||||
| ($ in thousands, except revenue per home sold) | September 28,
2024 | September 30, 2023 | Change | ||||||||||||
| Net revenue | |||||||||||||||
| Factory-built housing | $ | 486,343 | $ | 434,066 | $ | 52,277 | 12.0 | % | |||||||
| Financial services | 21,118 | 17,964 | 3,154 | 17.6 | % | ||||||||||
| $ | 507,461 | $ | 452,030 | $ | 55,431 | 12.3 | % | ||||||||
| Factory-built modules sold | 8,119 | 6,912 | 1,207 | 17.5 | % | ||||||||||
| Factory-built homes sold (consisting of one or more modules) | 4,913 | 4,248 | 665 | 15.7 | % | ||||||||||
| Net factory-built housing revenue per home sold | $ | 98,991 | $ | 102,181 | $ | (3,190 | ) | (3.1 | )% | ||||||
| Six Months Ended | |||||||||||||||
| ($ in thousands, except revenue per home sold) | September 28,
2024 | September 30,
2023 | Change | ||||||||||||
| Net revenue | |||||||||||||||
| Factory-built housing | $ | 944,391 | $ | 891,175 | $ | 53,216 | 6.0 | % | |||||||
| Financial services | 40,669 | 36,730 | 3,939 | 10.7 | % | ||||||||||
| $ | 985,060 | $ | 927,905 | $ | 57,155 | 6.2 | % | ||||||||
| Factory-built modules sold | 15,790 | 14,318 | 1,472 | 10.3 | % | ||||||||||
| Factory-built homes sold (consisting of one or more modules) | 9,634 | 8,830 | 804 | 9.1 | % | ||||||||||
| Net factory-built housing revenue per home sold | $ | 98,027 | $ | 100,926 | $ | (2,899 | ) | (2.9 | )% | ||||||
- In the factory-built housing segment, the increase in Net revenue for the three and six months periods was due to higher home sales volume, partially offset by a decrease in revenue per home sold primarily due to a lower proportion of homes sold through our Company-owned stores and, to a lesser extent, product pricing decreases.
- Financial services segment Net revenue increased for the three and six month periods from higher insurance premiums.
| Three Months Ended | |||||||||||||||
| ($ in thousands) | September 28,
2024 | September 30, 2023 | Change | ||||||||||||
| Gross profit | |||||||||||||||
| Factory-built housing | $ | 111,520 | $ | 100,507 | $ | 11,013 | 11.0 | % | |||||||
| Financial services | 4,602 | 6,450 | (1,848 | ) | (28.7 | )% | |||||||||
| $ | 116,122 | $ | 106,957 | $ | 9,165 | 8.6 | % | ||||||||
| Gross profit as % of Net revenue | |||||||||||||||
| Consolidated | 22.9 | % | 23.7 | % | N/A | (0.8 | )% | ||||||||
| Factory-built housing | 22.9 | % | 23.2 | % | N/A | (0.3 | )% | ||||||||
| Financial services | 21.8 | % | 35.9 | % | N/A | (14.1 | )% | ||||||||
| Selling, general and administrative expenses | |||||||||||||||
| Factory-built housing | $ | 61,440 | $ | 56,455 | $ | 4,985 | 8.8 | % | |||||||
| Financial services | 5,557 | 5,051 | 506 | 10.0 | % | ||||||||||
| $ | 66,997 | $ | 61,506 | $ | 5,491 | 8.9 | % | ||||||||
| Income from operations | |||||||||||||||
| Factory-built housing | $ | 50,080 | $ | 44,052 | $ | 6,028 | 13.7 | % | |||||||
| Financial services | (955 | ) | 1,399 | (2,354 | ) | (168.3 | )% | ||||||||
| $ | 49,125 | $ | 45,451 | $ | 3,674 | 8.1 | % | ||||||||
| Six Months Ended | |||||||||||||||
| ($ in thousands) | September 28,
2024 | September 30, 2023 | Change | ||||||||||||
| Gross profit | |||||||||||||||
| Factory-built housing | $ | 215,030 | $ | 213,875 | $ | 1,155 | 0.5 | % | |||||||
| Financial services | 4,494 | 10,961 | (6,467 |
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