Cavco Announces Q3 Results, $100M Stock Repurchase Plan – RVBusiness – Breaking RV Industry News
PHOENIX – Cavco Industries, Inc. (Nasdaq: CVCO) today announced financial results for the third fiscal quarter ended Dec. 30, 2023.
Third Quarter Summary
- Net revenue was $447 million, down $54 million or 10.8% compared to $501 million in the third quarter of the prior year.
- Factory-built housing gross profit as a percentage of net revenue was 22.4%, compared to 25.5% in the prior year.
- Financial services gross profit as a percentage of net revenue was 36.8%, compared to 46.6% in the prior year.
- Income before income taxes was $44 million, down $32 million or 42.1% compared to $76 million in the prior year period.
- Net income per diluted share attributable to Cavco common stockholders was $4.27 compared to $6.66 in the prior year quarter.
- Backlogs totaled $160 million at the end of the quarter, with modules in backlog growing 3% from the September quarter. Due to a decrease in backlog average selling price, the backlog value was down $10 million, or 5.9%, sequentially from $170 million.
- Stock repurchases were approximately $50 million in the quarter.
Commenting on the quarter, President and Chief Executive Officer Bill Boor said, “Despite winter months typically being slower, our orders written this quarter, on a same-plant basis, were the highest in the last six quarters. Dealer orders continue to improve while the return of community orders still lies ahead. Our manufacturing and retail operations have executed very well through this downturn, and each of our plants is positioned to respond to improving conditions.”
He continued, “Our continuing strong cash flow has enabled us to remain focused on the underlying critical need for quality, affordable homes. To that end, in December we were excited to announce our new Anthem series, the first nationally available HUD-approved manufactured duplex. This is a great example of how we are working with developers and community operators on innovative solutions to improve housing affordability.”
2024 Stock Repurchase Program
On Jan. 30, 2024, the company’s Board of Directors approved a new $100 million stock repurchase program that may be used to purchase its outstanding common stock. This increases the total available to $139 million including the amount remaining under the program announced in 2023.
The purchases may be made in the open market or one or more privately negotiated transactions in compliance with applicable securities laws and other legal requirements. While there is no expiration date, the actual timing, number and value of shares repurchased under the program will be determined by the Company in its discretion and will depend on a number of factors, including market conditions, applicable legal requirements and other strategic capital needs and opportunities. The plan does not obligate Cavco to acquire any particular amount of common stock and may be suspended or discontinued at any time. The Company expects to finance the program from existing cash resources.
Conference Call Details
Cavco’s management will hold a conference call to review these results today, February 2, 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 90 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. Cavco is one of the largest producers of manufactured and modular homes in the United States, based on reported wholesale shipments. Cavco 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. The company is 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. Its insurance subsidiary, Standard Casualty, provides property and casualty insurance to owners of manufactured homes.
