Cavco Industries Posts Net Revenue Up 32% for Fiscal Year
PHOENIX – Cavco Industries Inc. (Nasdaq: CVCO) announced financial results for the fourth quarter and fiscal year ended April 1, 2023. On Jan. 3, 2023, the company completed the acquisition of Solitaire Homes, which operates four manufacturing lines and twenty-two retail locations. Since the acquisition date, the results of Solitaire Homes are included in Cavco’s consolidated financial statements.
• Net revenue and net income of $476 million and $47 million, respectively. Solitaire Homes contributed $28 million of Net revenue and had a pre-tax loss of $0.8 million, which includes expected purchase accounting adjustments.
• Gross profit as a percentage of net revenue was 25.3% with factory-built housing gross profit as a percentage of net revenue at 24.4%, down 30 bps and 10 bps, respectively, from last year’s fourth quarter.
◦ Purchase accounting adjustment related to Solitaire Homes reduced factory-built housing gross margins 40 bps in the current period.
• Earnings per diluted share was $5.39 compared to $5.80 in last year’s fourth quarter.
• Returned nearly $30 million to shareholders through stock repurchases.
Full Fiscal Year Highlights
• Thirteenth straight year of revenue and earnings growth, with net revenue up 32% and Income before income taxes up 45% compared to last year.
• Gross profit as a percentage of Net revenue increased 80 bps to 25.9%, with factory-built housing gross profit as a percentage of Net revenue increasing 140 bps to 25.3%.
• Earnings per diluted share was $26.95 compared to $21.34 last year.
• Backlogs at April 1, 2023 were $244 million, compared to $1.1 billion at April 2, 2022 and $427 million three months ago.
Commenting on the results, Bill Boor, president and chief executive officer, said, “Despite rising interest rates and increased economic challenges the last few quarters, our team has delivered another year of outstanding growth. In addition to solid operating results, we expanded our capacity through the Solitaire acquisition and the Hamlet and Glendale plant startups. The affordable housing problem only worsened over the past year; however, our ability to serve the need for our homes has never been stronger.”