EX-99.1 2 p74122exv99w1.htm EX-99.1 exv99w1
 

EXHIBIT 99.1
     


(CAVCO 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 FIRST QUARTER RESULTS
Sales $37.4 million
Net income $1.7 million
PHOENIX, AZ — (July 26, 2007) – Cavco Industries, Inc. (NASDAQ: CVCO) today announced financial results for the first quarter of its fiscal year 2008 ended June 30, 2007.
     Net sales for the first quarter of fiscal 2008 were $37,366,000, down 31% from $54,050,000 for the first quarter of fiscal year 2007.
     Net income for the first quarter of $1,735,000 decreased 60% compared with $4,334,000 in the same quarter one year ago and net income per share based on basic weighted average shares outstanding was $0.27 versus $0.68. Net income per share based on diluted weighted average shares outstanding was $0.26 versus $0.65 last year.
     Commenting on the results, Joseph Stegmayer, Chairman, President and Chief Executive Officer, said, “We are pleased to report positive earnings for the first quarter of fiscal 2008. Although net sales are off 31% from the same period last year, they have increased by nearly 11% sequentially compared to the prior quarter. The new Texas plant is now progressing as planned and although it has not yet attained profitability, we are encouraged by the retail interest in our product offering.”
     Mr. Stegmayer continued, “While we have seen a modest increase in order rates and our backlog has lengthened somewhat, we have not experienced meaningful improvement in the overall outlook for housing in the markets we serve. Accordingly, we will remain cautious about the near term until we witness some fundamental improvements in areas such as consumer confidence, housing demand, financing availability and the resale market for existing homes.”
     Cavco’s senior management will hold a conference call to review these results tomorrow, July 27, 2007, at 12:00 noon (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 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, a write-off of all or part of our goodwill 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 and unfavorable zoning ordinances, 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 2007 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)
                 
    June 30,     March 31,  
    2007     2007  
    (Unaudited)          
ASSETS
                
Current assets
                
Cash and cash equivalents
   $ 14,157     $ 12,976  
Short-term investments
     54,400       50,900  
Restricted cash
     127       339  
Accounts receivable
     9,083       8,107  
Inventories
     13,303       13,464  
Prepaid expenses and other current assets
     2,193       2,273  
Deferred income taxes
     4,015       3,930  
 
            
Total current assets
     97,278       91,989  
 
            
 
                
Property, plant and equipment, at cost:
                
Land
     6,050       6,050  
Buildings and improvements
     7,138       7,029  
Machinery and equipment
     7,752       7,617  
 
            
 
     20,940       20,696  
Accumulated depreciation
     (8,052 )     (7,894 )
 
            
 
     12,888       12,802  
 
            
Goodwill
     67,346       67,346  
 
            
 
                
Total assets
   $ 177,512     $ 172,137  
 
            
 
                
LIABILITIES AND STOCKHOLDERS’ EQUITY
                
Current liabilities
                
Accounts payable
   $ 2,440     $ 2,868  
Accrued liabilities
     20,914       18,417  
 
            
Total current liabilities
     23,354       21,285  
 
            
 
                
Deferred income taxes
     13,360       12,760  
 
                
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 6,421,480 and 6,382,980 shares, respectively
     64       64  
Additional paid-in capital
     123,839       122,868  
Retained earnings
     16,895       15,160  
 
            
Total stockholders’ equity
     140,798       138,092  
 
            
 
                
Total liabilities and stockholders’ equity
   $ 177,512     $ 172,137  
 
            
(more)

 

 

CAVCO INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share amounts)
(Unaudited)
                 
    Three Months Ended  
    June 30,  
    2007     2006  
Net sales
   $ 37,366     $ 54,050  
Cost of sales
     31,926       43,431  
 
            
Gross profit
     5,440       10,619  
Selling, general and administrative expenses
     3,574       4,421  
 
            
Income from operations
     1,866       6,198  
Interest income
     671       574  
 
            
Income before income taxes
     2,537       6,772  
Income tax expense
     802       2,438  
 
            
 
                
Net income
   $ 1,735     $ 4,334  
 
            
 
                
Net income per share:
                
Basic
   $ 0.27     $ 0.68  
 
            
Diluted
   $ 0.26     $ 0.65  
 
            
 
                
Weighted average shares outstanding:
                
Basic
     6,400,536       6,355,818  
 
            
Diluted
     6,656,460       6,641,376  
 
            
(more)

 

 

CAVCO INDUSTRIES, INC.
Other Operating Data – Continuing Operations
(Dollars in thousands, except average sales price amounts)
(Unaudited)
                 
    Three Months Ended  
    June 30,  
    2007     2006  
Net sales
                
Manufacturing
   $ 36,238     $ 51,568  
Retail
     2,610       4,319  
Less: Intercompany
     (1,482 )     (1,837 )
 
            
Net sales
   $ 37,366     $ 54,050  
 
            
 
                
Floor shipments — manufacturing
     1,339       1,856  
 
            
Average sales price per floor - manufacturing
   $ 27,063     $ 27,784  
 
            
 
                
Home shipments — manufacturing
     856       1,063  
 
            
Average sales price per home - manufacturing
   $ 42,334     $ 48,512  
 
            
 
                
Home shipments — retail
     29       43  
 
            
 
                
Capital expenditures
   $ 276     $ 500  
 
            
Depreciation
   $ 190     $ 232  
 
            
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