EX-99.1 2 p74511exv99w1.htm EX-99.1 exv99w1
 

Exhibit 99.1
       
(CAVCO INDUSTRIES INC LOGO)
     For additional information, contact:
     
    Joseph Stegmayer
    Chairman and CEO
    Phone: 602-256-6263
    joes@cavco.com
News Release
      
    On the Internet:
 
    www.cavco.com
       
FOR IMMEDIATE RELEASE
CAVCO INDUSTRIES REPORTS SECOND QUARTER RESULTS
Sales $38.4 million
Net income $1.9 million
PHOENIX, AZ — (October 25, 2007) — Cavco Industries, Inc. (NASDAQ: CVCO) today announced financial results for the second quarter and first six months of fiscal 2008 ended September 30, 2007.
          Net sales for the second quarter totaled $38,435,000, down 11% from $43,063,000 for the second quarter of fiscal year 2007.
          Net income for the second quarter of $1,909,000 was 41% below the $3,217,000 reported in the same quarter one year ago. Net income per share based on basic and diluted weighted average shares outstanding was $0.30 and $0.29, respectively, versus $0.51 and $0.49, respectively last year.
          For the first six months of fiscal 2008, net sales decreased 22% to $75,801,000 from $97,113,000 for the comparable prior year period, and net income declined 52% to $3,644,000 from $7,551,000 last year. For the first half of fiscal 2008, net income per share based on basic and diluted weighted average shares outstanding was $0.57 and $0.55, respectively, versus $1.19 and $1.14, respectively for the year-earlier period.
          Commenting on the results, Joseph Stegmayer, Chairman, President and Chief Executive Officer, said, “The second quarter of fiscal 2008 has proven to be difficult, as expected. The reported turmoil in the mortgage loan markets and the overall housing sector weakness continue to affect our order rates and sales volume. While we have been successful in maintaining market share in our core region, the market itself remains depressed, with manufactured home shipments for the first eight months of the calendar year down 23% nationally and 43% in Arizona and California.”
          Mr. Stegmayer concluded, “Although the strong headwinds in the market place will continue to be a challenge, we will remain focused on expanding the value and diversity of our product offerings. Tailoring homes to meet the needs of our customers coupled with a strong commitment to customer satisfaction and service are core competencies that will contribute to our long term success.”
          Cavco’s senior management will hold a conference call to review these results tomorrow, October 26, 2007, at 12:00 noon (Eastern Time). Interested parties can access a live webcast of the conference call on the Internet at www.cavco.com under the Investor Relations link, or the web site www.earnings.com. An archive of the webcast and presentation will be available for 90 days at these website addresses.
          Cavco Industries, Inc., headquartered in Phoenix, is the largest producer of manufactured homes in Arizona, based on wholesale shipments. The Company is also a leading producer of park model homes and vacation cabins in the United States.

 

 

          Certain statements contained in this release are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities and Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. In general, all statements that are not historical in nature are forward-looking. Forward-looking statements are typically included, for example, in discussions regarding the manufactured housing and site-built housing industries; our financial performance and operating results; and the expected effect of certain risks and uncertainties on our business, financial condition and results of operations. All forward-looking statements are subject to risks and uncertainties, many of which are beyond our control. As a result, our actual results or performance may differ materially from anticipated results or performance. Factors that could cause such differences to occur include, but are not limited to, adverse industry conditions, a write-off of all or part of our goodwill could adversely affect operating results and net worth, the cyclical and seasonal nature of our business, limitations on our ability to raise capital, curtailment of available financing in the manufactured housing industry, our contingent repurchase obligations related to wholesale financing, competition, our ability to maintain relationships with retailers, labor shortages, pricing and availability of raw materials and unfavorable zoning ordinances, together with all of the other risks described in our filings with the Securities and Exchange Commission. Readers are specifically referred to the Risk Factors described in Item 1A of the 2007 Form 10-K, as may be amended from time to time, which identify important risks that could cause actual results to differ from those contained in the forward-looking statements. Cavco expressly disclaims any obligation to update any forward-looking statements contained in this release, whether as a result of new information, future events or otherwise. Investors should not place any reliance on any such forward-looking statements.
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CAVCO INDUSTRIES, INC.
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
                 
    September 30,     March 31,  
    2007     2007  
    (Unaudited)          
ASSETS
                
Current assets
                
Cash and cash equivalents
   $ 6,640     $ 12,976  
Short-term investments
     64,675       50,900  
Restricted cash
     323       339  
Accounts receivable
     8,641       8,107  
Inventories
     11,689       13,464  
Prepaid expenses and other current assets
     1,874       2,273  
Deferred income taxes
     4,018       3,930  
 
            
Total current assets
     97,860       91,989  
 
            
 
                
Property, plant and equipment, at cost:
                
Land
     6,050       6,050  
Buildings and improvements
     7,207       7,029  
Machinery and equipment
     7,874       7,617  
 
            
 
     21,131       20,696  
Accumulated depreciation
     (8,215 )     (7,894 )
 
            
 
     12,916       12,802  
 
            
Goodwill
     67,346       67,346  
 
            
 
                
Total assets
   $ 178,122     $ 172,137  
 
            
 
                
LIABILITIES AND STOCKHOLDERS’ EQUITY
                
Current liabilities
                
Accounts payable
   $ 2,479     $ 2,868  
Accrued liabilities
     18,934       18,417  
 
            
Total current liabilities
     21,413       21,285  
 
            
 
                
Deferred income taxes
     13,802       12,760  
 
                
Commitments and contingencies
                
 
                
Stockholders’ equity
                
Preferred Stock, $.01 par value; 1,000,000 shares authorized; No shares issued or outstanding
     —       —  
Common Stock, $.01 par value; 20,000,000 shares authorized; Outstanding 6,425,165 and 6,382,980 shares, respectively
     64       64  
Additional paid-in capital
     124,039       122,868  
Retained earnings
     18,804       15,160  
 
            
Total stockholders’ equity
     142,907       138,092  
 
            
 
                
Total liabilities and stockholders’ equity
   $ 178,122     $ 172,137  
 
            
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CAVCO INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share amounts)
(Unaudited)
                                 
    Three Months Ended     Six Months Ended  
    September 30,     September 30,  
    2007     2006     2007     2006  
 
Net sales
   $ 38,435     $ 43,063     $ 75,801     $ 97,113  
Cost of sales
     32,887       35,014       64,813       78,445  
 
                        
Gross profit
     5,548       8,049       10,988       18,668  
Selling, general and administrative expenses
     3,555       3,718       7,129       8,139  
 
                        
Income from operations
     1,993       4,331       3,859       10,529  
Interest income
     718       619       1,389       1,193  
 
                        
Income before income taxes
     2,711       4,950       5,248       11,722  
Income tax expense
     802       1,733       1,604       4,171  
 
                        
 
                                
Net income
   $ 1,909     $ 3,217     $ 3,644     $ 7,551  
 
                        
 
                                
Net income per share:
                                
Basic
   $ 0.30     $ 0.51     $ 0.57     $ 1.19  
 
                        
Diluted
   $ 0.29     $ 0.49     $ 0.55     $ 1.14  
 
                        
 
                                
Weighted average shares outstanding:
                                
Basic
     6,423,387       6,358,980       6,411,961       6,357,399  
 
                        
Diluted
     6,660,242       6,602,291       6,656,135       6,623,719  
 
                        
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CAVCO INDUSTRIES, INC.
Other Operating Data — Continuing Operations
(Dollars in thousands, except average sales price amounts)
(Unaudited)
                                 
    Three Months Ended     Six Months Ended  
    September 30,     September 30,  
    2007     2006     2007     2006  
Net sales
                                
Manufacturing
   $ 35,130     $ 41,376     $ 71,368     $ 92,944  
Retail
     4,414       3,477       7,024       7,796  
Less: Intercompany
     (1,109 )     (1,790 )     (2,591 )     (3,627 )
 
                        
Net sales
   $ 38,435     $ 43,063     $ 75,801     $ 97,113  
 
                        
 
                                
Floor shipments — manufacturing
     1,317       1,494       2,656       3,350  
 
                        
Average sales price per floor - manufacturing
   $ 26,674     $ 27,695     $ 26,870     $ 27,744  
 
                        
 
                                
Home shipments — manufacturing
     823       905       1,679       1,968  
 
                        
Average sales price per home - manufacturing
   $ 42,685     $ 45,719     $ 42,506     $ 47,228  
 
                        
 
                                
Home shipments — retail
     67       33       96       76  
 
                        
 
                                
Capital expenditures
   $ 225     $ 214     $ 501     $ 714  
 
                        
Depreciation
   $ 197     $ 140     $ 387     $ 372  
 
                        
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