EX-99.1 2 p74890exv99w1.htm EX-99.1 exv99w1
 

Exhibit 99.1
(CAVCO NEWS RELEASE GRAPHIC)
FOR IMMEDIATE RELEASE
CAVCO INDUSTRIES REPORTS THIRD QUARTER RESULTS
Sales $31.9 million
Net income $1.4 million
PHOENIX, AZ — (January 24, 2008) — Cavco Industries, Inc. (NASDAQ: CVCO) today announced financial results for the third quarter and first nine months of fiscal 2008 ended December 31, 2007.
     Net sales for the third quarter totaled $31,909,000, down 16% from $38,189,000 for the third quarter of fiscal year 2007.
     Net income for the third quarter of $1,365,000 was 39% below the $2,239,000 reported in the same quarter one year ago. Net income per share based on basic and diluted weighted average shares outstanding was $0.21 and $0.20, respectively, versus $0.35 and $0.34, respectively last year.
     For the first nine months of fiscal 2008, net sales decreased 20% to $107,710,000 from $135,302,000 for the comparable prior year period, and net income declined 49% to $5,009,000 from $9,790,000 last year. For the first nine months of fiscal 2008, net income per share based on basic and diluted weighted average shares outstanding was $0.78 and $0.75, respectively, versus $1.54 and $1.48, respectively for the year-earlier period.
     Commenting on the results, Joseph Stegmayer, Chairman, President and Chief Executive Officer, said, “The third quarter presented a myriad of challenges. Industry wide sales of new homes remained very weak, sales of existing homes were slow and the mortgage markets were unstable. Considering the difficult environment we are pleased that the company maintained its profitable performance.”
     Mr. Stegmayer concluded, “It is unclear how the housing market will perform in the months ahead. We plan to do whatever it takes from a product offering, marketing, and operating efficiency standpoint to achieve our objective of positive results during these uncertain times for the housing industry and the general economy.”
     Cavco’s senior management will hold a conference call to review these results tomorrow, January 25, 2008, at 11:00 AM (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, general economic 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.
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CAVCO INDUSTRIES, INC.
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
                 
    December 31,     March 31,  
    2007     2007  
    (Unaudited)        
ASSETS
                
Current assets
                
Cash and cash equivalents
   $ 69,591     $ 12,976  
Short-term investments
     —       50,900  
Restricted cash
     230       339  
Accounts receivable
     8,897       8,107  
Inventories
     13,349       13,464  
Prepaid expenses and other current assets
     2,313       2,273  
Deferred income taxes
     3,970       3,930  
 
            
Total current assets
     98,350       91,989  
 
            
 
                
Property, plant and equipment, at cost:
                
Land
     6,050       6,050  
Buildings and improvements
     7,254       7,029  
Machinery and equipment
     7,941       7,617  
 
            
 
     21,245       20,696  
Accumulated depreciation
     (8,413 )     (7,894 )
 
            
 
     12,832       12,802  
 
            
Goodwill
     67,346       67,346  
 
            
 
                
Total assets
   $ 178,528     $ 172,137  
 
            
 
                
LIABILITIES AND STOCKHOLDERS’ EQUITY
                
Current liabilities
                
Accounts payable
   $ 1,936     $ 2,868  
Accrued liabilities
     17,506       18,417  
 
            
Total current liabilities
     19,442       21,285  
 
            
 
                
Deferred income taxes
     14,300       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 6,452,415 and 6,382,980 shares, respectively
     64       64  
Additional paid-in capital
     124,553       122,868  
Retained earnings
     20,169       15,160  
 
            
Total stockholders’ equity
     144,786       138,092  
 
            
 
                
Total liabilities and stockholders’ equity
   $ 178,528     $ 172,137  
 
            
(more)

 

 

CAVCO INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share amounts)
(Unaudited)
                                 
    Three Months Ended     Nine Months Ended  
    December 31,     December 31,  
    2007     2006     2007     2006  
Net sales
   $ 31,909     $ 38,189     $ 107,710     $ 135,302  
Cost of sales
     27,321       31,871       92,134       110,316  
 
                        
Gross profit
     4,588       6,318       15,576       24,986  
Selling, general and administrative expenses
     3,323       3,765       10,452       11,904  
 
                        
Income from operations
     1,265       2,553       5,124       13,082  
Interest income
     683       589       2,072       1,782  
 
                        
Income from continuing operations before income taxes
     1,948       3,142       7,196       14,864  
Income tax expense
     583       1,037       2,187       5,208  
 
                        
Income from continuing operations
     1,365       2,105       5,009       9,656  
Income from discontinued retail operations net of income taxes of $0 and $66
     —       134       —       134  
 
                        
Net income
   $ 1,365     $ 2,239     $ 5,009     $ 9,790  
 
                        
 
                                
Net income per share (basic):
                                
Continuing operations
   $ 0.21     $ 0.33     $ 0.78     $ 1.52  
Discontinued retail operations
   $ —     $ 0.02     $ —     $ 0.02  
 
                        
Net income
   $ 0.21     $ 0.35     $ 0.78     $ 1.54  
 
                        
 
                                
Net income per share (diluted):
                                
Continuing operations
   $ 0.20     $ 0.32     $ 0.75     $ 1.46  
Discontinued retail operations
   $ —     $ 0.02     $ —     $ 0.02  
 
                        
Net income
   $ 0.20     $ 0.34     $ 0.75     $ 1.48  
 
                        
 
                                
Weighted average shares outstanding:
                                
Basic
     6,433,419       6,361,869       6,419,189       6,358,889  
 
                        
Diluted
     6,677,167       6,615,263       6,664,458       6,625,725  
 
                        
(more)

 

 

CAVCO INDUSTRIES, INC.
Other Operating Data — Continuing Operations
(Dollars in thousands, except average sales price amounts)
(Unaudited)
                                 
    Three Months Ended     Nine Months Ended  
    December 31,     December 31,  
    2007     2006     2007     2006  
Net sales
                                
Manufacturing
   $ 30,054     $ 35,814     $ 101,422     $ 128,758  
Retail
     3,077       4,078       10,101       11,874  
Less: Intercompany
     (1,222 )     (1,703 )     (3,813 )     (5,330 )
 
                        
Net sales
   $ 31,909     $ 38,189     $ 107,710     $ 135,302  
 
                        
 
                                
Floor shipments — manufacturing
     1,132       1,353       3,788       4,703  
 
                        
Average sales price per floor — manufacturing
   $ 26,549     $ 26,470     $ 26,775     $ 27,378  
 
                        
 
                                
Home shipments — manufacturing
     746       898       2,425       2,866  
 
                        
Average sales price per home — manufacturing
   $ 40,287     $ 39,882     $ 41,824     $ 44,926  
 
                        
 
                                
Home shipments — retail
     35       39       131       115  
 
                        
 
                                
Capital expenditures
   $ 114     $ 97     $ 615     $ 811  
 
                        
Depreciation
   $ 198     $ 147     $ 585     $ 519  
 
                        
###