EX-99.1 2 p13397exv99w1.htm EX-99.1 exv99w1
Exhibit 99.1
     
(CAVCO LOGO)
  For additional information, contact:

Joseph Stegmayer
Chairman and CEO
Phone: 602-256-6263
joes@cavco.com

On the Internet:
www.cavco.com
FOR IMMEDIATE RELEASE     
CAVCO INDUSTRIES REPORTS FISCAL SECOND QUARTER RESULTS
Net sales $30 million
Net income $0.5 million
     PHOENIX — (October 23, 2008) – Cavco Industries, Inc. (NASDAQ: CVCO) today announced financial results for the second quarter and first six months of its fiscal year 2009 ended September 30, 2008.
     Net sales for the second quarter of fiscal 2009 totaled $30,030,000, down 22% from $38,435,000 for the second quarter of fiscal year 2008.
     Net income for the fiscal 2009 second quarter of $518,000 was 73% below the $1,909,000 reported in the same quarter one year ago. Net income per share based on basic and diluted weighted average shares outstanding was $0.08, versus $0.30 and $0.29, respectively, last year.
     For the first six months of fiscal 2009, net sales decreased 14% to $65,539,000 from $75,801,000 for the comparable prior year period, and net income declined 62% to $1,371,000 from $3,644,000 last year. For the first half of fiscal 2009, net income per share based on basic and diluted weighted average shares outstanding was $0.21 and $0.20, respectively, versus $0.57 and $0.55, respectively for the prior year period.
     “The continued deterioration in housing and the accelerated decline in the financial markets had a heavy impact on the Company’s performance in the second quarter. That we remained profitable for the quarter demonstrates the strength of our distribution base, broad product offering and the quality and service we provide,” said Joseph Stegmayer, Chairman, President and Chief Executive Officer.
     “Industry projections indicate that manufactured home shipments may decline by 10% or more in calendar year 2008 compared to 2007’s level, which was a 46-year historic low. Recently, shipments in our largest markets are down even more than these projections. However, given the strength of our debt-free balance sheet and our focus on doing the right things to position the Company well for the challenging near-term and the more promising years ahead, we remain confident that we will weather these turbulent times and emerge prepared to prosper as economic conditions improve.”
     Cavco’s senior management will hold a conference call to review these results tomorrow, October 24, 2008, 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.opencompany.info. 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; general economic conditions; a write-off of all or part of our goodwill, which 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 2008 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,  
    2008     2008  
    (Unaudited)          
ASSETS
                
Current assets
                
Cash and cash equivalents
   $ 75,701     $ 73,610  
Restricted cash
     151       330  
Accounts receivable
     7,812       10,093  
Inventories
     12,489       11,293  
Prepaid expenses and other current assets
     1,761       1,839  
Deferred income taxes
     3,778       4,033  
 
            
Total current assets
     101,692       101,198  
 
            
 
                
Property, plant and equipment, at cost:
                
Land
     6,580       6,050  
Buildings and improvements
     7,379       7,290  
Machinery and equipment
     8,114       7,979  
 
            
 
     22,073       21,319  
Accumulated depreciation
     (8,991 )     (8,613 )
 
            
 
     13,082       12,706  
 
            
Goodwill
     67,346       67,346  
 
            
 
                
Total assets
   $ 182,120     $ 181,250  
 
            
 
                
LIABILITIES AND STOCKHOLDERS’ EQUITY
                
Current liabilities
                
Accounts payable
   $ 1,834     $ 2,147  
Accrued liabilities
     16,227       18,005  
 
            
Total current liabilities
     18,061       20,152  
 
            
 
                
Deferred income taxes
     15,642       14,747  
 
                
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 6,496,460 and 6,452,415 shares, respectively
     65       65  
Additional paid-in capital
     125,509       124,814  
Retained earnings
     22,843       21,472  
 
            
Total stockholders’ equity
     148,417       146,351  
 
            
 
                
Total liabilities and stockholders’ equity
   $ 182,120     $ 181,250  
 
            
(more)

 

 

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,  
    2008     2007     2008     2007  
Net sales
   $ 30,030     $ 38,435     $ 65,539     $ 75,801  
Cost of sales
     26,329       32,887       57,650       64,813  
 
                        
Gross profit
     3,701       5,548       7,889       10,988  
Selling, general and administrative expenses
     3,145       3,555       6,246       7,129  
 
                        
Income from operations
     556       1,993       1,643       3,859  
Interest income
     285       718       579       1,389  
 
                        
Income before income taxes
     841       2,711       2,222       5,248  
Income tax expense
     323       802       851       1,604  
 
                        
 
                                
Net income
   $ 518     $ 1,909     $ 1,371     $ 3,644  
 
                        
 
                                
Net income per share:
                                
Basic
   $ 0.08     $ 0.30     $ 0.21     $ 0.57  
 
                        
Diluted
   $ 0.08     $ 0.29     $ 0.20     $ 0.55  
 
                        
 
                                
Weighted average shares outstanding:
                                
Basic
     6,484,362       6,423,387       6,472,677       6,411,961  
 
                        
Diluted
     6,705,005       6,660,242       6,695,902       6,656,135  
 
                        
(more)

 

 

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,  
    2008     2007     2008     2007  
Net sales
                                
Manufacturing
   $ 29,888     $ 35,130     $ 63,971     $ 71,368  
Retail
     1,808       4,414       4,324       7,024  
Less: Intercompany
     (1,666 )     (1,109 )     (2,756 )     (2,591 )
 
                        
Net sales
   $ 30,030     $ 38,435     $ 65,539     $ 75,801  
 
                        
 
                                
Floor shipments — manufacturing
     1,168       1,317       2,457       2,656  
 
                        
Average sales price per floor — manufacturing
   $ 25,589     $ 26,674     $ 26,036     $ 26,870  
 
                        
 
                                
Home shipments — manufacturing
     751       823       1,606       1,679  
 
                        
Average sales price per home — manufacturing
   $ 39,798     $ 42,685     $ 39,833     $ 42,506  
 
                        
 
                                
Home shipments — retail
     37       67       60       96  
 
                        
 
                                
Capital expenditures
   $ 742     $ 225     $ 817     $ 501  
 
                        
Depreciation
   $ 198     $ 197     $ 425     $ 387  
 
                        
###