EX-99.1 2 p72236exv99w1.htm EXHIBIT 99.1 PRESS RELEASE exv99w1
 

Exhibit 99.1

(CAVCO INDUSTRIES, INC. 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 FOURTH QUARTER RESULTS
Sales increase 16% to $51.2 million
Income from continuing operations rises to $4.2 million
PHOENIX, AZ — (May 1, 2006) – Cavco Industries, Inc. (NASDAQ: CVCO) today announced financial results for the fourth quarter and fiscal year ended March 31, 2006.
     Net sales for the fourth quarter of fiscal 2006 rose 16% to $51,216,000 from $44,043,000 for the fourth quarter of last year.
     Net income for the fourth quarter increased to $4,216,000 compared with $4,030,000 in the same period one year ago. Net income per share for the fourth quarter this year was $0.66 versus $0.64 last year based on basic weighted average shares outstanding and $0.62 versus $0.61 per share based on diluted weighted average shares outstanding. Net Income for the fourth quarter of fiscal 2005 included income from discontinued retail operations of $400,000 or $0.06 per share. Excluding the results of discontinued operations, income from continuing operations in the fourth quarter of last year was $3,630,000, or $0.58 per basic weighted average share and $0.55 per diluted weighted average share.
     For the fiscal year ended March 31, 2006, net sales climbed 20% to $189,503,000 from $157,435,000 for fiscal year 2005. Net income for the year increased 49% to $15,049,000 versus $10,127,000 for 2005. Net income per share was $2.38 based on basic weighted average shares outstanding and $2.23 based on diluted weighted average shares for fiscal year 2006 versus $1.61 and $1.54, respectively, for fiscal year 2005.
     Commenting on the quarter, Joseph Stegmayer, Chairman, President and Chief Executive Officer, said, “We are pleased to report excellent results for the fourth quarter and the fiscal year. We maintained a strong gross profit percentage although this measure was negatively impacted by higher raw material prices and by the start-up costs of the new Texas plant. The upward price movement of our purchased materials has shown no sign of relenting and while we are generally able to adjust our selling prices there is a time delay between the higher costs incurred and our realization of higher sales prices.”
     Mr. Stegmayer continued, “The Texas manufacturing facility has generated interest among buyers of park model and cabin homes and its start-up is progressing as planned. Our three plants in Arizona performed very well during the quarter. New models introduced at recent home shows were well received. Although we did experience a modest slowing of orders from the California market during the quarter, it remains healthy. Meanwhile we have seen continued improvement in demand in Arizona and Nevada. While we are certainly concerned about rising energy prices and the impact on our raw material, transportation, operating costs and on the economy in general, we are optimistic for continued growth in fiscal 2007.”
     Cavco’s senior management will hold a conference call to review these results tomorrow, May 2, 2006, at 12:00 p.m. (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 industry; 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, the cyclical nature of our business, limitations on our ability to raise capital, curtailment of available financing in the manufactured housing industry, competition, our ability to maintain relationships with retailers, pricing and availability of raw materials and our lack of recent operating history as an independent public company, together with all of the other risks described in our filings with the Securities and Exchange Commission. 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.

 

 

CAVCO INDUSTRIES, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
                 
    March 31,     March 31,  
    2006     2005  
ASSETS
                
Current assets
                
Cash
   $ 15,122     $ 46,457  
Short-term investments
     42,900       —  
Restricted cash
     1,223       1,028  
Accounts receivable
     11,568       7,545  
Inventories
     12,733       10,262  
Prepaid expenses and other current assets
     1,446       1,202  
Deferred income taxes
     4,040       3,610  
 
            
Total current assets
     89,032       70,104  
 
            
 
                
Property, plant and equipment, at cost:
                
Land
     6,050       2,330  
Buildings and improvements
     6,744       5,045  
Machinery and equipment
     6,752       6,446  
 
            
 
     19,546       13,821  
Accumulated depreciation
     (7,202 )     (6,349 )
 
            
 
     12,344       7,472  
 
            
Goodwill
     67,346       67,346  
 
            
 
                
Total assets
   $ 168,722     $ 144,922  
 
            
 
                
LIABILITIES AND STOCKHOLDERS’ EQUITY
                
Current liabilities
                
Accounts payable
   $ 6,269     $ 5,978  
Accrued liabilities
     26,384       21,544  
 
            
Total current liabilities
     32,653       27,522  
 
            
 
                
Deferred income taxes
     11,040       9,090  
 
                
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; 10,000,000 shares authorized; Outstanding 6,352,980 and 6,288,730 shares, respectively
     64       63  
Additional paid-in capital
     121,417       119,998  
Unamortized value of restricted stock
     (63 )     (313 )
Retained earnings (accumulated deficit)
     3,611       (11,438 )
 
            
Total stockholders’ equity
     125,029       108,310  
 
            
 
                
Total liabilities and stockholders’ equity
   $ 168,722     $ 144,922  
 
            
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CAVCO INDUSTRIES, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share amounts)
                                 
    Three Months Ended     Year Ended  
    March 31,     March 31,  
    2006     2005     2006     2005  
Net sales
   $ 51,216     $ 44,043     $ 189,503     $ 157,435  
Cost of sales
     41,057       34,961       151,143       127,916  
 
                        
Gross profit
     10,159       9,082       38,360       29,519  
Selling, general and administrative expenses
     4,102       3,322       16,367       14,245  
 
                        
Income from operations
     6,057       5,760       21,993       15,274  
Interest income
     446       197       1,479       532  
 
                        
Income from continuing operations before income taxes
     6,503       5,957       23,472       15,806  
Income tax expense
     2,287       2,327       8,675       6,229  
 
                        
Income from continuing operations
     4,216       3,630       14,797       9,577  
Income from discontinued retail operations less income taxes of $148 in the year ended March 31, 2006 and $250 and $350 in the three months and year ended March 31, 2005
     —       400       252       550  
 
                        
Net income
   $ 4,216     $ 4,030     $ 15,049     $ 10,127  
 
                        
 
                                
Net income per share (basic):
                                
Continuing operations
   $ 0.66     $ 0.58     $ 2.34     $ 1.52  
Discontinued retail operations
     —       0.06       0.04       0.09  
 
                        
Net income
   $ 0.66     $ 0.64     $ 2.38     $ 1.61  
 
                        
Net income per share (diluted):
                                
Continuing operations
   $ 0.62     $ 0.55     $ 2.19     $ 1.46  
Discontinued retail operations
     —       0.06       0.04       0.08  
 
                        
Net income
   $ 0.62     $ 0.61     $ 2.23     $ 1.54  
 
                        
 
                                
Weighted average shares outstanding:
                                
Basic
     6,345,980       6,288,730       6,318,070       6,288,730  
 
                        
Diluted
     6,803,723       6,628,932       6,746,356       6,557,819  
 
                        
On January 6, 2005, Cavco Industries, Inc. announced that its Board of Directors had authorized a 2-for-1 split of its common stock in the form of a 100% stock dividend. The dividend was paid on January 31, 2005 to stockholders of record as of January 18, 2005. The information for the three months and year ended March 31, 2005 is presented as if this stock split had been completed as of the beginning of these periods.
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CAVCO INDUSTRIES, INC. AND SUBSIDIARY
Other Operating Data – Continuing Operations
(Dollars in thousands)
                                 
    Three Months Ended     Year Ended  
    March 31,     March 31,  
    2006     2005     2006     2005  
Net sales
                                
 
Manufacturing
   $ 49,749     $ 43,845     $ 183,672     $ 155,691  
Retail
     4,235       2,489       14,446       9,655  
Less: Intercompany
     (2,768 )     (2,291 )     (8,615 )     (7,911 )
 
                        
Net Sales
   $ 51,216     $ 44,043     $ 189,503     $ 157,435  
 
                        
 
                                
Floor shipments — manufacturing
     1,887       1,812       7,256       6,884  
 
                        
Average sales price per floor — manufacturing
   $ 26,364     $ 24,197     $ 25,313     $ 22,616  
 
                        
 
                                
Home shipments — manufacturing
     1,083       1,050       4,251       3,992  
 
                        
Average sales price per home — manufacturing
   $ 45,936     $ 41,757     $ 43,207     $ 39,001  
 
                        
 
                                
Home shipments — retail
     47       31       169       132  
 
                        
 
                                
Capital expenditures
   $ 583     $ 191     $ 5,795     $ 575  
 
                        
Depreciation
   $ 227     $ 225     $ 923     $ 1,053  
 
                        
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