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 $42 million in the quarter.
He continued, "While the third quarter is typically strong for our insurance operation, pricing and underwriting improvements implemented earlier in the year came to fruition and led to one of the strongest Financial services quarters in several years. In Factory-built housing, we executed our plan to utilize backlogs to ramp up production in anticipation of continued market improvement. Across the board, we are very well set-up going into the new calendar year.”
Financial Results
| Three Months Ended | |||||||||||
| ($ 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 |
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