Cavco Industries, Inc.

Net income per diluted share was $4.47 and Adjusted net income (non-GAAP) per diluted share was $5.40 after previously announced non-cash charge

PHOENIX, May 22, 2025 (GLOBE NEWSWIRE) -- Cavco Industries, Inc. (Nasdaq: CVCO) today announced financial results for the fourth quarter and fiscal year ended March 29, 2025.

Quarterly Highlights

Net revenue of $508 million up 21% from $420 million in the prior year quarter. Gross profit as a percentage of Net revenue was 22.8% with factory-built housing Gross profit as a percentage of Net revenue at 22.3%, down 80 basis points ("bps") and 10 bps, respectively, from last year's fourth quarter. Net income and Adjusted net income (non-GAAP)* were $36 million and $44 million, respectively. Net income per diluted share attributable to Cavco common stockholders was $4.47 and Adjusted net income (non-GAAP) per diluted share* was $5.40 compared to $4.03 in last year's fourth quarter.

Full Fiscal Year Highlights

Net revenue was $2,015 million, up $221 million or 12.3% compared to $1,795 million last year. Factory-built housing Gross profit as a percentage of Net revenue was 22.9%, compared to 23.2% in the prior year. Income before income taxes was $211 million, up $12 million or 6.0% compared to $199 million in the prior year. Net income per diluted share attributable to Cavco common stockholders was $20.71 compared to $18.37 last year. Adjusted net income (non-GAAP) per diluted share* for the year ended was $21.63. Backlogs at March 29, 2025 were $197 million, up from $191 million at March 30, 2024. Stock repurchases were approximately $150 million in the year.  On May 20, 2025, the Company's Board of Directors approved an additional $150 million stock repurchase program.

Commenting on the results, Bill Boor, President and Chief Executive Officer, said, "A significant pickup in activity in March helped close out a solid quarter after unusually harsh weather across the southern states in February impacted the transition into the Spring selling season. We held production levels throughout the quarter and are well positioned to increase from here as the market allows."

He continued, “As previously announced, in the 4th quarter, we significantly improved our go-to-market position by unifying our 31 manufacturing facilities under the Cavco name. Going forward, national product lines will logically segment our homes based on specific characteristics, simplifying the home search process for our home buyers. All of this leverages our national marketing efforts and the strength we have built in our Cavco name.”

Story Continues

*Adjusted net income (non-GAAP) and adjusted net income (non-GAAP) per diluted share exclude a $10.0 million non-cash charge related to the abandonment of indefinite-lived assets associated with the Company's prior brands. See the Exhibit A for the calculation of adjusted results and the manner in which the adjusted measures are determined in this press release.

Three months ended March 29, 2025 compared to three months ended March 30, 2024

Three Months Ended  ($ in thousands, except revenue per home sold) March 29,
2025  March 30,
2024  Change Net revenue  Factory-built housing $ 487,860  $ 398,493  $ 89,367   22.4  % Financial services  20,498   21,625   (1,127 )  (5.2 ) % $ 508,358  $ 420,118  $ 88,240   21.0  %  Factory-built modules sold  8,260   6,231   2,029   32.6  %  Factory-built homes sold (consisting of one or more modules)  5,060   3,938   1,122   28.5  %  Net factory-built housing revenue per home sold $ 96,415  $ 101,192  $ (4,777 )  (4.7 ) %

In the factory-built housing segment, the increase in Net revenue was primarily due to higher sales volume, partially offset by a lower proportion of homes sold through our Company-owned stores, lower average selling price primarily caused by product price decreases, and sales mix. Financial services segment Net revenue decreased primarily due to fewer loan sales in the current period compared to the prior year, partially offset by higher insurance premiums.

Three Months Ended  ($ in thousands) March 29,
2025  March 30,
2024  Change Gross profit  Factory-built housing $ 108,573   $ 89,288   $ 19,285   21.6  % Financial services  7,544    9,727    (2,183 )  (22.4 ) % $ 116,117   $ 99,015   $ 17,102   17.3  %  Gross profit as % of Net revenue  Consolidated  22.8 %   23.6 %  N/A  (0.8 ) % Factory-built housing  22.3 %   22.4 %  N/A  (0.1 ) % Financial services  36.8 %   45.0 %  N/A  (8.2 ) %  Selling, general and administrative expenses  Factory-built housing $ 71,458   $ 55,937   $ 15,521   27.7  % Financial services  6,029    5,485    544   9.9  % $ 77,487   $ 61,422   $ 16,065   26.2  %  Income from operations  Factory-built housing $ 37,115   $ 33,351   $ 3,764   11.3  % Financial services  1,515    4,242    (2,727 )  (64.3 ) % $ 38,630   $ 37,593   $ 1,037   2.8  %

In the factory-built housing segment, Gross profit increased from higher sales volume. Selling, general and administrative expenses increased primarily as a result of a $10.0 million one-time, non-cash charge related to the adjustment of certain legacy brand intangibles due to the consolidation of the Company's brand as well as increased incentive compensation on higher earnings. In the financial services segment, Gross profit decreased primarily due to reduced revenue from loan sales compared to the prior year.

Three Months Ended  ($ in thousands, except per share amounts) March 29,
2025  March 30,
2024  Change Net income attributable to Cavco common stockholders $ 36,330  $ 33,934  $ 2,396  7.1 % Diluted net income per share $ 4.47  $ 4.03  $ 0.44  10.9 % Adjusted net income (non-GAAP) attributable to Cavco common stockholders $ 43,900  $ 33,934  $ 9,966  29.4 % Adjusted diluted net income (non-GAAP) per share $ 5.40  $ 4.03  $ 1.37  34.0 %

Year ended March 29, 2025 compared to the year ended March 30, 2024

Year Ended  ($ in thousands, except revenue per home sold) March 29,
2025  March 30,
2024  Change Net revenue  Factory-built housing $ 1,933,111  $ 1,716,607  $ 216,504   12.6  % Financial services  82,347   78,185   4,162   5.3  % $ 2,015,458  $ 1,794,792  $ 220,666   12.3  %  Factory-built modules sold  32,428   27,355   5,073   18.5  %  Factory-built homes sold (consisting of one or more modules)  19,753   16,928   2,825   16.7  %  Net factory-built housing revenue per home sold $ 97,864  $ 101,406  $ (3,542 )  (3.5 ) %

In the factory-built housing segment, the year-over-year increase in Net revenue was primarily due to higher home sales volume, partially offset by lower average selling prices. Financial services segment Net revenue increased year-over-year primarily due to higher insurance premiums in the current year compared to the prior year, partially offset by reduced revenue from loan sales.

Year Ended  ($ in thousands) March 29,
2025  March 30,
2024  Change Gross profit  Factory-built housing $ 441,796   $ 398,919   $ 42,877   10.7  % Financial services  23,795    27,983    (4,188 )  (15.0 ) % $ 465,591   $ 426,902   $ 38,689   9.1  %  Gross profit as % of Net revenue  Consolidated  23.1 %   23.8 %  N/A  (0.7 ) % Factory-built housing  22.9 %   23.2 %  N/A  (0.3 ) % Financial services  28.9 %   35.8 %  N/A  (6.9 ) %  Selling, general and administrative expenses  Factory-built housing $ 253,027   $ 226,267   $ 26,760   11.8  % Financial services  22,288    21,653    635   2.9  % $ 275,315   $ 247,920   $ 27,395   11.0  %  Income from operations  Factory-built housing $ 188,769   $ 172,652   $ 16,117   9.3  % Financial services  1,507    6,330    (4,823 )  (76.2 ) % $ 190,276   $ 178,982   $ 11,294   6.3  %

In the factory-built housing segment, Gross profit increased from higher home sales, partially offset by lower average selling prices. Selling, general and administrative expenses increased as a result of higher incentive compensation on higher sales and a $10.0 million one-time, non-cash charge related to the adjustment of certain legacy brand intangibles due to the consolidation of the Company's brand. In the financial services segment, Gross profit decreased primarily due to higher weather related insurance claims and reduced revenue from loan sales.

Year Ended  ($ in thousands, except per share amounts) March 29,
2025  March 30,
2024  Change Net income attributable to Cavco common stockholders $ 171,036  $ 157,817  $ 13,219  8.4 % Diluted net income per share $ 20.71  $ 18.37  $ 2.34  12.7 % Adjusted net income (non-GAAP) attributable to Cavco common stockholders $ 178,606  $ 157,817  $ 20,789  13.2 % Adjusted diluted net income (non-GAAP) per share $ 21.63  $ 18.37  $ 3.26  17.7 %

Conference Call Details

Cavco's management will hold a conference call to review these results tomorrow, May 23, 2025 at 10:00 a.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 60 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. We are one of the largest producers of manufactured and modular homes in the United States, based on reported wholesale shipments. We are 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. Our insurance subsidiary, Standard Casualty, provides property and casualty insurance to owners of manufactured homes.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that are not historical facts. These forward-looking statements reflect Cavco's current expectations and projections with respect to our expected future business and financial performance, including, among other things: (i) expected financial performance and operating results, such as revenue and gross margin percentage; (ii) our liquidity and financial resources; (iii) our outlook with respect to the Company and the manufactured housing business in general; (iv) the expected effect of certain risks and uncertainties on our business; and (iv) the strength of Cavco's business model. These statements may be preceded by, followed by, or include the words "aim," "anticipate," "believe," "estimate," "expect," "forecast," "future," "goal," "intend," "likely," "outlook," "plan," "potential," "project," "seek," "target," "can," "could," "may," "should," "would," "will," the negatives thereof and other words and terms of similar meaning. A number of factors could cause actual results or outcomes to differ materially from those indicated by these forward-looking statements. These factors include, among other factors, Cavco's ability to manage: (i) customer demand and the availability of financing for our products; (ii) labor shortages and the pricing, availability, or transportation of raw materials; (iii) the impact of local or national emergencies; (iv) excessive health and safety incidents or warranty and construction claims; (v) increases in cancellations of home sales; (vi) information technology failures or cyber incidents; (vii) our ability to maintain the security of personally identifiable information of our customers, (viii) compliance with the numerous laws and regulations applicable to our business, including state, federal, and foreign laws relating manufactured housing, privacy, the internet, and accounting matters; (ix) successful defense against litigation, government inquiries, and investigations, and (x) other risks and uncertainties indicated from time to time in documents filed or to be filed with the Securities and Exchange Commission (the "SEC") by Cavco. The forward-looking statements herein represent the judgment of Cavco as of the date of this release and Cavco disclaims any intent or obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments, or otherwise. This press release should be read in conjunction with the information included in the Company's other press releases, reports, and other filings with the SEC. Readers are specifically referred to the Risk Factors described in Item 1A of the Company's Annual Report on Form 10-K for the year ended March 30, 2024 as may be updated from time to time in future filings on Form 10-Q and other reports filed by the Company pursuant to the Securities Exchange Act of 1934, which identify important risks that could cause actual results to differ from those contained in the forward-looking statements. Understanding the information contained in these filings is important in order to fully understand Cavco's reported financial results and our business outlook for future periods.

For additional information, contact:

Mark Fusler Corporate Controller and Investor Relations
[email protected]

Phone: 602-256-6263
On the Internet: www.cavcoindustries.com

CAVCO INDUSTRIES, INC. CONSOLIDATED BALANCE SHEETS (Dollars in thousands, except per share amounts) March 29,
2025  March 30,
2024 ASSETS (Unaudited)  Current assets  Cash and cash equivalents $ 356,225   $ 352,687  Restricted cash, current  18,535    15,481  Accounts receivable, net  105,849    77,123  Short-term investments  19,842    18,270  Current portion of consumer loans receivable, net  35,852    20,713  Current portion of commercial loans receivable, net  43,492    40,787  Current portion of commercial loans receivable from affiliates, net  2,881    2,529  Inventories  252,695    241,339  Prepaid expenses and other current assets  74,815    82,870  Total current assets  910,186    851,799  Restricted cash  585    585  Investments  18,067    17,316  Consumer loans receivable, net  20,685    23,354  Commercial loans receivable, net  48,605    45,660  Commercial loans receivable from affiliates, net  4,768    2,065  Property, plant and equipment, net  227,620    224,199  Goodwill  121,969    121,934  Other intangibles, net  16,731    28,221  Operating lease right-of-use assets  35,576    39,027  Deferred income taxes  1,853    —  Total assets $ 1,406,645   $ 1,354,160  LIABILITIES AND STOCKHOLDERS' EQUITY  Current liabilities  Accounts payable $ 37,195   $ 33,531  Accrued expenses and other current liabilities  265,971    239,736  Total current liabilities  303,166    273,267  Operating lease liabilities  31,538    35,148  Other liabilities  7,359    7,759  Deferred income taxes  —    4,575  Total liabilities  342,063    320,749  Stockholders' equity  Preferred stock, $0.01 par value; 1,000,000 shares authorized; No shares issued or outstanding  —    —  Common stock, $0.01 par value; 40,000,000 shares authorized; Issued 9,436,732 and 9,389,953 shares, respectively; Outstanding 8,008,012 and 8,320,718 shares, respectively  94    94  Treasury stock, at cost; 1,428,720 and 1,069,235 shares, respectively  (424,624 )   (274,693 ) Additional paid-in capital  290,940    281,216  Retained earnings  1,198,163    1,027,127  Accumulated other comprehensive income (loss)  9    (333 ) Total stockholders' equity  1,064,582    1,033,411  Total liabilities and stockholders' equity $ 1,406,645   $ 1,354,160

CAVCO INDUSTRIES, INC. CONSOLIDATED STATEMENTS OF INCOME (Dollars in thousands, except per share amounts) (Unaudited) Three Months Ended  Year Ended March 29,
2025  March 30,
2024  March 29,
2025  March 30,
2024 Net revenue $ 508,358   $ 420,118   $ 2,015,458   $ 1,794,792  Cost of sales  392,241    321,103    1,549,867    1,367,890  Gross profit  116,117    99,015    465,591    426,902  Selling, general and administrative expenses  77,487    61,422    275,315    247,920  Income from operations  38,630    37,593    190,276    178,982  Interest income  4,533    5,334    21,089    20,998  Interest expense  (147 )   (284 )   (517 )   (1,649 ) Other (expense) income, net  (93 )   292    222    849  Income before income taxes  42,923    42,935    211,070    199,180  Income tax expense  (6,593 )   (9,001 )   (40,034 )   (41,275 ) Net income  36,330    33,934    171,036    157,905  Less: net income attributable to redeemable noncontrolling interest  —    —    —    88  Net income attributable to Cavco common stockholders $ 36,330   $ 33,934   $ 171,036   $ 157,817   Net income per share attributable to Cavco common stockholders  Basic $ 4.53   $ 4.07   $ 20.97   $ 18.55  Diluted $ 4.47   $ 4.03   $ 20.71   $ 18.37  Weighted average shares outstanding  Basic  8,015,611    8,338,595    8,157,615    8,506,673  Diluted  8,120,407    8,428,613    8,259,956    8,591,911

CAVCO INDUSTRIES, INC. OTHER OPERATING DATA (Dollars in thousands) (Unaudited) Three Months Ended  Year Ended March 29,
2025  March 30,
2024  March 29,
2025  March 30,
2024 Capital expenditures $ 6,174  $ 4,184  $ 21,427  $ 17,421 Depreciation $ 4,578  $ 4,279  $ 17,729  $ 16,956 Amortization of other intangibles $ 376  $ 392  $ 1,530  $ 1,569

CAVCO INDUSTRIES, INC.
Exhibit A: Unaudited Non-GAAP Financial Measures - Adjusted Net Income and Adjusted Net Income per Diluted Share
(Dollars in thousands)
(Unaudited)

Use of non-GAAP measures

To supplement our financial statements presented in accordance with U.S. generally accepted accounting principles (“GAAP”), we report non-GAAP financial measures such as Adjusted net income and Adjusted net income per diluted share. The $10.0 million non-cash charge relates to the adjustment of certain legacy brand indefinite-lived intangible values due to the unification of the Company's extensive manufacturing brand lineup under the Cavco name. This charge is tax effected and excluded from Adjusted net income and Adjusted earnings per diluted share because it is a non-cash charge that is non-recurring and not indicative of the Company's core operational results. These non-GAAP financial measures are not a substitute for GAAP results and should be considered in conjunction with GAAP results.

Three Months Ended  Year Ended March 29,
2025  March 29,
2025 Adjusted net income  As reported Net income (GAAP) $ 36,330   $ 171,036  Plus after-tax impact(1)of indefinite lived asset charge  7,570    7,570  Adjusted net income (non-GAAP) $ 43,900   $ 178,606   Earnings per diluted share  As reported diluted earnings per share (GAAP) $ 4.47   $ 20.71  After-tax impact of indefinite lived asset charge  0.93    0.92  Adjusted net income (non-GAAP) per diluted share $ 5.40   $ 21.63

(1) The impact to net income reflects the tax effect of the noted item, which is based on the enacted rate in the jurisdiction in which the expense is deductible.

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