EX-99.1 2 p73795exv99w1.htm EXHIBIT 99.1 PRESS RELEASE exv99w1
 

EXHIBIT 99.1
     
(CAVCO LOGO)
  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  
 
            
(more)

 

 

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  
 
                        
(more)

 

 

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  
 
                        
###