Cavco Industries, Inc. (Nasdaq:CVCO) today announced financial
results for the third quarter and first nine months of its fiscal
year 2012 ended December 31, 2011.
Net sales for the third quarter of fiscal 2012 totaled
$114,564,000, up 189% from $39,612,000 for the third quarter of
fiscal year 2011.
As previously reported, Fleetwood Homes, Inc., a subsidiary
owned 50% by Cavco and 50% by Third Avenue Value Fund (TAVFX),
completed the acquisition of substantially all of the assets and
assumption of certain liabilities of Palm Harbor Homes, Inc. during
the quarter ended June 30, 2011. Palm Harbor had been in the
business of manufacturing and marketing factory-built housing and
providing related consumer financing and insurance products. The
aggregate gross purchase price, exclusive of transaction costs,
specified liabilities assumed and post-closing adjustments, was
$83,900,000. The results of the Palm Harbor operations have
been included in Cavco's Consolidated Financial Statements since
acquisition.
Net income for the fiscal 2012 third quarter was $2,980,000,
compared to $290,000 reported in the same quarter one year ago.
Net income attributable to Cavco stockholders for the fiscal
2012 third quarter was $1,677,000 compared to $24,000 reported in
the same quarter one year ago. Net income per share based on
basic and diluted weighted average shares outstanding was $0.24,
versus basic and diluted net income of four-tenths of one cent per
share last year.
For the first nine months of fiscal 2012, net sales increased
158% to $343,553,000 from $133,005,000 for the comparable prior
year period. Net income for the first nine months of fiscal
2012 was $26,840,000 compared to $2,339,000 for the prior year
period. Included in net income for the nine months ended
December 31, 2011 was a gain on bargain purchase of $22,009,000
resulting from the Palm Harbor transaction, calculated in
accordance with the accounting standards for business combinations.
Net income attributable to Cavco stockholders for the first
nine months of fiscal 2012 was $13,584,000 compared to $1,222,000
last year. For the nine months ended December 31, 2011, net
income per share based on basic and diluted weighted average shares
outstanding was $1.98 and $1.96, respectively, versus $0.19 and
$0.18 for the prior year period, respectively. Net income
attributable to Cavco stockholders for the nine months ended
December 31, 2011 includes one half of the bargain purchase gain
recognized, consistent with Cavco's ownership percentage of
Fleetwood Homes.
Referring to the fiscal third quarter financial results, Joseph
Stegmayer, Chairman, President and Chief Executive Officer said,
"The substantial increase in net sales compared to the same quarter
in the prior year was primarily from this fiscal year's addition of
the Palm Harbor businesses, partially offset by seasonally slow
home sales as we entered the winter months. Although backlogs
were low at the end of the quarter, we look forward to the prospect
of improvement in the latter part of the fourth quarter as the
spring selling season begins. However, economic and housing
headlines highlighting the state of consumer confidence,
unemployment, and housing finance issues serve as reminders that
the ongoing challenges to our industry persist."
"During the quarter, our people remained focused on the
execution of strategic objectives intended to strengthen the
Company's competitive positions and our capabilities to pursue an
increasing variety of sales opportunities. We were
particularly pleased with the ongoing business integration process
since the Palm Harbor transaction earlier in the fiscal
year. The Company began to realize some benefits from the
collaboration of our manufacturing and retail business
units. The financial services segment also continued to
assimilate with the larger organization as well as develop business
growth opportunities in diverse markets with niche products and
services," Mr. Stegmayer concluded.
Cavco's senior management will hold a conference call to review
these results tomorrow, February 3, 2012, at 11:00 AM (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. An archive of the webcast and presentation
will be available for 90 days at www.cavco.com under the Investor
Relations link.
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 the second largest producer of HUD code
manufactured homes in the United States, based on reported
wholesale shipments, marketed under a variety of brand names
including Cavco Homes, Fleetwood Homes and Palm Harbor Homes. The
Company is also a leading producer of park model homes, vacation
cabins, and systems-built commercial structures, as well as modular
homes built primarily under the Nationwide Homes brand. Our
mortgage subsidiary, CountryPlace, is an approved Fannie Mae and
Ginnie Mae seller/servicer and offers conforming mortgages to
purchasers of factory-built and site-built homes. Our insurance
subsidiary, Standard, provides property and casualty insurance to
owners of manufactured homes.
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 deterioration in
economic conditions and continued turmoil in the credit markets; 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; unfavorable zoning ordinances; our
ability to successfully integrate Fleetwood Homes, Palm Harbor, and
any future acquisition or attain the anticipated benefits of such
acquisition; the risk that the acquisition of Fleetwood Homes, Palm
Harbor, and any future acquisition may adversely impact our
liquidity; expansion of retail and manufacturing businesses and
entry into new lines of business, namely manufactured housing
consumer finance and insurance, through the Palm Harbor
transaction; our participation in certain wholesale financing
programs for the purchase of our products by industry retailers may
expose us to additional risk of credit loss; 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 2011 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.
(more)
CAVCO INDUSTRIES,
INC. |
CONSOLIDATED BALANCE
SHEETS |
(Dollars in thousands) |
|
|
December 31, |
March 31, |
|
|
2011 |
2011 |
|
|
(Unaudited) |
|
ASSETS |
|
|
|
Current assets: |
|
|
|
Cash and cash
equivalents |
|
$ 35,397 |
$ 76,513 |
Restricted cash, current |
|
6,271 |
436 |
Accounts receivable, net |
|
12,928 |
6,571 |
Short-term investments |
|
5,121 |
-- |
Current portion of consumer loans
receivable, net |
|
21,619 |
-- |
Inventories |
|
62,334 |
16,036 |
Assets held for sale |
|
5,285 |
-- |
Prepaid expenses and other current
assets |
|
7,919 |
2,495 |
Debtor-in-possession note
receivable |
|
-- |
40,060 |
Deferred income taxes |
|
5,860 |
4,720 |
Total current assets |
|
162,734 |
146,831 |
|
|
|
|
Restricted cash |
|
452 |
-- |
Investments |
|
9,626 |
-- |
Consumer loans receivable, net |
|
101,578 |
-- |
Inventory finance notes receivable, net |
|
21,328 |
17,759 |
Property, plant and equipment, net |
|
50,698 |
35,993 |
Goodwill and other intangibles, net |
|
81,587 |
68,859 |
|
|
|
|
Total assets |
|
$ 428,003 |
$ 269,442 |
|
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY |
|
|
|
Current liabilities: |
|
|
|
Accounts payable |
|
$ 8,421 |
$ 3,495 |
Accrued liabilities |
|
54,864 |
26,245 |
Construction lending lines |
|
5,599 |
-- |
Current portion of securitized
financings |
|
10,797 |
-- |
Noncontrolling interest note
payable |
|
-- |
36,000 |
Total current liabilities |
|
79,681 |
65,740 |
|
|
|
|
Securitized financings |
|
83,376 |
-- |
Deferred income taxes |
|
13,327 |
17,214 |
|
|
|
|
Redeemable noncontrolling interest |
|
85,228 |
35,819 |
|
|
|
|
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 6,890,796
and 6,817,606 shares, respectively |
69 |
68 |
Additional paid-in capital |
|
131,368 |
129,211 |
Retained earnings |
|
34,974 |
21,390 |
Accumulated other comprehensive
loss |
|
(20) |
-- |
Total stockholders' equity |
|
166,391 |
150,669 |
|
|
|
|
Total liabilities, redeemable noncontrolling
interest and |
|
|
|
stockholders' equity |
|
$ 428,003 |
$ 269,442 |
(more)
CAVCO INDUSTRIES,
INC. |
CONSOLIDATED STATEMENTS
OF OPERATIONS |
(Dollars in thousands, except
per share amounts) |
(Unaudited) |
|
|
|
|
|
|
Three Months
Ended |
Nine Months
Ended |
|
December
31, |
December
31, |
|
2011 |
2010 |
2011 |
2010 |
|
|
|
|
|
Net sales |
$ 114,564 |
$ 39,612 |
$ 343,553 |
$ 133,005 |
Cost of sales |
87,642 |
34,269 |
272,243 |
114,042 |
Gross profit |
26,922 |
5,343 |
71,310 |
18,963 |
Selling, general and administrative
expenses |
20,535 |
5,275 |
59,113 |
16,000 |
Income from operations |
6,387 |
68 |
12,197 |
2,963 |
Interest expense |
(2,043) |
-- |
(5,420) |
-- |
Other income |
440 |
511 |
1,055 |
957 |
Gain on bargain purchase |
-- |
-- |
22,009 |
-- |
Income before income taxes |
4,784 |
579 |
29,841 |
3,920 |
Income tax expense |
(1,804) |
(289) |
(3,001) |
(1,581) |
Net income |
2,980 |
290 |
26,840 |
2,339 |
Less: net income attributable to
redeemable |
|
|
|
|
noncontrolling
interest |
1,303 |
266 |
13,256 |
1,117 |
Net income attributable to
Cavco |
|
|
|
|
common
stockholders |
$ 1,677 |
$ 24 |
$ 13,584 |
$ 1,222 |
|
|
|
|
|
Net income per share attributable to
Cavco |
|
|
|
|
common stockholders: |
|
|
|
|
Basic |
$ 0.24 |
$ 0.00 |
$ 1.98 |
$ 0.19 |
Diluted |
$ 0.24 |
$ 0.00 |
$ 1.96 |
$ 0.18 |
|
|
|
|
|
Weighted average shares
outstanding: |
|
|
|
|
Basic |
6,890,517 |
6,651,928 |
6,873,078 |
6,578,732 |
Diluted |
6,951,958 |
6,841,802 |
6,936,054 |
6,860,385 |
(more)
CAVCO INDUSTRIES,
INC. |
OTHER OPERATING
DATA |
(Dollars in thousands) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
Three Months
Ended |
Nine Months
Ended |
|
December
31, |
December
31, |
|
2011 |
2010 |
2011 |
2010 |
Net sales: |
|
|
|
|
Factory-built housing |
$ 104,931 |
$ 39,612 |
$ 317,457 |
$ 133,005 |
Financial services |
9,633 |
-- |
26,096 |
-- |
Total net sales |
$ 114,564 |
$ 39,612 |
$ 343,553 |
$ 133,005 |
|
|
|
|
|
Capital expenditures |
$ 434 |
$ 221 |
$ 2,273 |
$ 680 |
Depreciation |
$ 602 |
$ 331 |
$ 1,667 |
$ 984 |
Amortization of other
intangibles |
$ 880 |
$ 14 |
$ 2,566 |
$ 40 |
|
|
|
|
|
Factory-built homes sold: |
|
|
|
|
by Company owned
stores |
437 |
24 |
1,357 |
91 |
to independent dealers, builders
& developers |
1,535 |
1,115 |
4,613 |
3,600 |
Total factory-built homes
sold |
1,972 |
1,139 |
5,970 |
3,691 |
CONTACT: Joseph Stegmayer
Chairman and CEO
Phone: 602-256-6263
joes@cavco.com
On the Internet:
www.cavco.com
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