8-K

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):
May 2, 2007

Cavco Industries, Inc.

(Exact name of registrant as specified in its charter)

Delaware	000-08822	56-2405642
(State or other jurisdiction	(Commission File Number)	(IRS Employer
of incorporation)		Identification No.)

1001 North Central Avenue, Suite 800, Phoenix, Arizona	85004
(Address of principal executive offices)	(Zip Code)
Registrant’s telephone number including area code: (602) 256-6263

Not applicable
(Former name or former address if changed from last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

TABLE OF CONTENTS

Item 2.02.	Results of Operations and Financial Condition
Item 9.01.	Financial Statements and Exhibits
SIGNATURES
EXHIBIT INDEX
Exhibit 99.1 Press Release

Item 2.02.      Results of Operations and Financial Condition

     On May 2, 2007, Cavco Industries, Inc., a Delaware corporation (the “Corporation”), announced its financial results for its fiscal fourth quarter and fiscal year ended March 31, 2007. A copy of the Corporation’s press release announcing these financial results is attached as Exhibit 99.1 hereto and incorporated in this Item 2.02 by reference.

Item 9.01.     Financial Statements and Exhibits

Exhibit
Number	Description
99.1	Press Release dated May 2, 2007

Page 2

SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	CAVCO INDUSTRIES, INC. (Registrant)
	By:	/s/ Daniel L. Urness
		Name:	Daniel L. Urness
Date: May 2, 2007		Title:	Chief Financial Officer

Page 3

EXHIBIT INDEX

Exhibit
Number	Description
99.1	Press Release dated May 2, 2007

Page 4

EX-99.1

EXHIBIT 99.1

	For additional information, contact: Joseph Stegmayer Chairman and CEO Phone: 602-256-6263 joes@cavco.com
N e w s   R e l e a s e	On the Internet: www.cavco.com

FOR IMMEDIATE RELEASE

CAVCO INDUSTRIES REPORTS FOURTH QUARTER RESULTS
Sales $33.8 million
Net income $1.8 million

PHOENIX, AZ — (May 2, 2007) – Cavco Industries, Inc. (NASDAQ: CVCO) today announced financial results for the fourth quarter and fiscal year ended March 31, 2007.

     Net sales for the fourth quarter of fiscal 2007 were $33,812,000, down 34% from $51,216,000 for the fourth quarter of fiscal year 2006.

     Net income for the fourth quarter of $1,759,000 decreased 58% compared with $4,216,000 in the same quarter one year ago and net income per share based on basic weighted average shares outstanding was $0.28 versus $0.66. Net income per share based on diluted weighted average shares outstanding was $0.27 versus $0.62 last year.

     For the fiscal year ended March 31, 2007, net sales decreased 11% to $169,114,000 from $189,503,000 for fiscal 2006 and net income declined 23% to $11,549,000 from $15,049,000 last year. For fiscal 2007, net income per share based on basic weighted average shares outstanding was $1.81 versus $2.38 last year, and net income per share based on diluted weighted average shares outstanding was $1.74 versus $2.23 last year.

     “The overall residential housing market continued its steep decline during the quarter and demand for manufactured homes fared no better,” said Joseph Stegmayer, Chairman, President and Chief Executive Officer. “When reported later this month, industry shipments of manufactured homes for the first quarter of the calendar year are anticipated to be more than 35% below the same period last year. Housing analysts forecast that 2007 shipments will, at best, be even with those of 2006.”

     Mr. Stegmayer continued, “Fortunately, our diverse product line of quality, value oriented homes, our strong distribution base and careful cost control efforts enabled us to post results that we believe exceeded industry norms. However, it is very hard to estimate when manufactured housing will rebound, although it is clear that difficult conditions will persist in the months ahead. Accordingly, we will continue to execute the operating strategies we have in place while pursuing opportunities that will enhance our growth potential when market conditions improve.”

     Cavco’s senior management will hold a conference call to review these results tomorrow, May 3, 2007, 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 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. Readers are specifically referred to the Risk Factors described in Item 1A of the 2006 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)

	March 31,			March 31,
	2007			2006
	(Unaudited)
ASSETS
Current assets
Cash and cash equivalents	$	12,976		$	15,122
Short-term investments		50,900			42,900
Restricted cash		339			1,223
Accounts receivable		8,107			11,568
Inventories		13,464			12,733
Prepaid expenses and other current assets		2,273			1,446
Deferred income taxes		3,930			4,040
Total current assets		91,989			89,032
Property, plant and equipment, at cost:
Land		6,050			6,050
Buildings and improvements		7,029			6,744
Machinery and equipment		7,617			6,752
		20,696			19,546
Accumulated depreciation		(7,894	)		(7,202	)
		12,802			12,344
Goodwill		67,346			67,346
Total assets	$	172,137		$	168,722
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	2,868		$	6,269
Accrued liabilities		18,417			26,384
Total current liabilities		21,285			32,653
Deferred income taxes		12,760			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 6,382,980 and 6,352,980 shares, respectively		64			64
Additional paid-in capital		122,868			121,354
Retained earnings		15,160			3,611
Total stockholders’ equity		138,092			125,029
Total liabilities and stockholders’ equity	$	172,137		$	168,722

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CAVCO INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share amounts)
(Unaudited)

	Three Months Ended				Year Ended
	March 31,				March 31,
	2007		2006		2007		2006
Net sales	$	33,812	$	51,216	$	169,114	$	189,503
Cost of sales		28,497		41,057		138,813		151,143
Gross profit		5,315		10,159		30,301		38,360
Selling, general and administrative expenses		3,407		4,102		15,311		16,367
Income from operations		1,908		6,057		14,990		21,993
Interest income		605		446		2,387		1,479
Income from continuing operations before income taxes		2,513		6,503		17,377		23,472
Income tax expense		754		2,287		5,962		8,675
Income from continuing operations		1,759		4,216		11,415		14,797
Income from discontinued retail operations net of income taxes of $66 and $148		—		—		134		252
Net income	$	1,759	$	4,216	$	11,549	$	15,049
Net income per share (basic):
Continuing operations	$	0.28	$	0.66	$	1.79	$	2.34
Discontinued retail operations	$	—	$	—	$	0.02	$	0.04
Net income	$	0.28	$	0.66	$	1.81	$	2.38
Net income per share (diluted):
Continuing operations	$	0.27	$	0.62	$	1.72	$	2.19
Discontinued retail operations	$	—	$	—	$	0.02	$	0.04
Net income	$	0.27	$	0.62	$	1.74	$	2.23
Weighted average shares outstanding:
Basic		6,377,247		6,345,980		6,363,368		6,318,070
Diluted		6,624,558		6,803,723		6,629,580		6,746,356

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CAVCO INDUSTRIES, INC.
Other Operating Data – Continuing Operations
(Dollars in thousands, except average sales price amounts)
(Unaudited)

	Three Months Ended						Year Ended
	March 31,						March 31,
	2007			2006			2007			2006
Net sales
Manufacturing	$	32,484		$	49,749		$	161,242		$	183,672
Retail		2,933			4,235			14,807			14,446
Less: Intercompany		(1,605	)		(2,768	)		(6,935	)		(8,615	)
Net sales	$	33,812		$	51,216		$	169,114		$	189,503
Floor shipments — manufacturing		1,181			1,887			5,884			7,256
Average sales price per floor — manufacturing	$	27,506		$	26,364		$	27,403		$	25,313
Home shipments — manufacturing		746			1,083			3,612			4,251
Average sales price per home — manufacturing	$	43,544		$	45,936		$	44,641		$	43,207
Home shipments — retail		30			47			145			169
Capital expenditures	$	339		$	583		$	1,150		$	5,795
Depreciation	$	173		$	227		$	692		$	923

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