Cavco Industries Reports Q1 Results, $100M Stock Repurchase – RVBusiness – Breaking RV Industry News

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A Park Model RV by Cavco.

PHOENIX – Cavco Industries Inc. (Nasdaq: CVCO) announced financial results for the first fiscal quarter ended July 1, 2023.

First Quarter Summary

Net revenue was $476 million, down 19% compared to $588 million in the first quarter of the prior year.
Factory-built housing Gross profit as a percentage of Net revenue was 24.8%, compared to 24.4% in the prior year. The current year period was impacted by purchase accounting adjustments on acquired inventory related to Solitaire Homes, which reduced Factory-built housing margins by 40 basis points.
Financial services Gross profit as a percentage of Net revenue was 24.0% compared to 32.6% in the prior year. The decrease was the result of higher insurance claims from weather related events.
Income before income taxes was $61 million, down 23% compared to $79 million in the prior year period.
Net income per diluted share attributable to Cavco common stockholders was $5.29 compared to $6.63 in the prior year quarter.
Backlogs were $177 million at the end of the quarter, down $67 million from $244 million three months prior.

Cavco Industries’ President and CEO Bill Boor (L) and Tim Gage, national vice president of Cavco’s park model RV sales and marketing

Commenting on the quarter, President and Chief Executive Officer Bill Boor said, “Demand during the quarter continued to show the effects of diminished affordability. Despite the challenging market environment, strong management across our businesses generated solid cash flow again this quarter. Our plants continue to demonstrate their ability to maintain margins by keeping costs as variable as possible, which is core to our operating philosophy. Our healthy financial position enables us to maintain our strategic focus throughout the cycle and we expect to emerge from this downturn stronger due to our focus on the undeniable need for affordable housing.”

He continued, “I’m also encouraged by the success of our digital marketplace, www.cavcohomes.com. We recently surpassed one million visitors in just six months since its launch, which is enabling us to funnel quality leads to our retailers. This shows that customers are out there shopping and the platform is another example of how we are executing our strategy of helping them buy homes.”

2023 Stock Repurchase Program

On August 1, 2023, 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 $135.7 million including the amount remaining under the program announced in 2022.

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.

Source: https://rvbusiness.com/cavco-industries-reports-q1-results-100m-stock-repurchase/