EX-99.1 2 p72632exv99w1.htm EX-99.1 PRESS RELEASE exv99w1
 

EXHIBIT 99.1
     
(CAVCO LOGO)
N e w s     R e l e a s e
  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 FIRST QUARTER RESULTS
Sales increase 18% to $54.1 million
Net income up 22% to $4.3 million
PHOENIX, AZ — (July 20, 2006) – Cavco Industries, Inc. (NASDAQ: CVCO) today announced financial results for the first quarter of fiscal 2007 ended June 30, 2006.
     Net sales for the first quarter of fiscal year 2007 rose 18% to $54,050,000, up from $45,876,000 for the first quarter of fiscal year 2006.
     Net income for the first quarter increased to $4,334,000 compared with $3,542,000 in the same period one year ago. For the first quarter of fiscal 2007, net income per basic weighted average share outstanding was $0.68 versus $0.56 last year, and net income per diluted weighted average share outstanding was $0.65 versus $0.53 last year.
     Joseph Stegmayer, Chairman, President and Chief Executive Officer, said, “We are pleased to announce strong financial results for the first quarter of the new fiscal year. While the quarter was marked by an attractive increase in the average selling price per home and excellent operating margins, we began to experience a decline in the incoming order rates for homes. As a result we experienced a reduction in order backlogs and we reduced production levels slightly. At June 30, 2006, the backlog was approximately $11 million.”
     Mr. Stegmayer also commented, “Industry sales have slowed considerably in California, an important market for us while Arizona has experienced a more modest decline in sales activity. In general, we have concerns about the impact of inflation including high material and transportation costs, as well as elevated land prices and rising interest rates. Unlike the prior fiscal year, the current market climate may not be as conducive to passing through higher material costs. Still, we believe that Cavco is prepared for the challenges currently being faced within our industry and in the overall economy. With our demonstrated ability to provide a wide variety of attractive homes that represent a great value to the consumer, our strong market position and our financial strength, we believe we are well positioned for long-term success.”
     Cavco’s senior management will hold a conference call to review these results tomorrow, July 21, 2006, at 1:00 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 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 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.
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CAVCO INDUSTRIES, INC.
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
                 
    June 30,     March 31,  
    2006     2006  
ASSETS
                
Current assets
                
Cash and cash equivalents
   $ 15,930     $ 15,122  
Short-term investments
     47,400       42,900  
Restricted cash
     422       1,223  
Accounts receivable
     10,313       11,568  
Inventories
     14,570       12,733  
Prepaid expenses and other current assets
     806       1,446  
Deferred income taxes
     4,180       4,040  
 
            
Total current assets
     93,621       89,032  
 
            
 
                
Property, plant and equipment, at cost:
                
Land
     6,050       6,050  
Buildings and improvements
     6,913       6,744  
Machinery and equipment
     7,083       6,752  
 
            
 
     20,046       19,546  
Accumulated depreciation
     (7,434 )     (7,202 )
 
            
 
     12,612       12,344  
 
            
Goodwill
     67,346       67,346  
 
            
 
                
Total assets
   $ 173,579     $ 168,722  
 
            
 
                
LIABILITIES AND STOCKHOLDERS’ EQUITY
                
Current liabilities
                
Accounts payable
   $ 5,285     $ 6,269  
Accrued liabilities
     27,031       26,384  
 
            
Total current liabilities
     32,316       32,653  
 
            
 
                
Deferred income taxes
     11,450       11,040  
 
                
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 6,358,980 and 6,352,980 shares, respectively
     64       64  
Additional paid-in capital
     121,804       121,354  
Retained earnings
     7,945       3,611  
 
            
Total stockholders’ equity
     129,813       125,029  
 
            
 
                
Total liabilities and stockholders’ equity
   $ 173,579     $ 168,722  
 
            
(more)

 

 

CAVCO INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share amounts)
                 
    Three Months Ended  
    June 30,  
    2006     2005  
Net sales
   $ 54,050     $ 45,876  
Cost of sales
     43,431       36,239  
 
            
Gross profit
     10,619       9,637  
Selling, general and administrative expenses
     4,421       4,112  
 
            
Income from operations
     6,198       5,525  
Interest income
     574       282  
 
            
Income before income taxes
     6,772       5,807  
Income tax expense
     2,438       2,265  
 
            
 
                
Net income
   $ 4,334     $ 3,542  
 
            
 
                
Net income per share:
                
Basic
   $ 0.68     $ 0.56  
 
            
Diluted
   $ 0.65     $ 0.53  
 
            
 
                
Weighted average shares outstanding:
                
Basic
     6,355,818       6,288,730  
 
            
Diluted
     6,641,376       6,646,042  
 
            
(more)

 

 

CAVCO INDUSTRIES, INC.
Other Operating Data – Continuing Operations
(Dollars in thousands)
                 
    Three Months Ended  
    June 30,  
    2006     2005  
Net sales
                
Manufacturing
   $ 51,568     $ 44,788  
Retail
     4,319       3,038  
Less: Intercompany
     (1,837 )     (1,950 )
 
            
Net sales
   $ 54,050     $ 45,876  
 
            
 
                
Floor shipments - manufacturing
     1,856       1,812  
 
            
Average sales price per floor - manufacturing
   $ 27,784     $ 24,717  
 
            
 
                
Home shipments - manufacturing
     1,063       1,068  
 
            
Average sales price per home - manufacturing
   $ 48,512     $ 41,936  
 
            
 
                
Home shipments - retail
     43       41  
 
            
 
                
Capital expenditures
   $ 500     $ 199  
 
            
Depreciation
   $ 232     $ 233  
 
            
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