EX-99.1 2 p75934exv99w1.htm EX-99.1 exv99w1
Exhibit 99.1
     
(CAVCO LOGO)
 
     News Release
  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 FISCAL FIRST QUARTER RESULTS
Net sales $35.5 million
Net income $0.9 million
     PHOENIX — (July 24, 2008) – Cavco Industries, Inc. (NASDAQ: CVCO) today announced financial results for the first quarter of its fiscal year 2009 ended June 30, 2008.
     Net sales for the first quarter of fiscal 2009 totaled $35,509,000, down 5% from $37,366,000 for the first quarter of fiscal year 2008.
     Net income for the fiscal 2009 first quarter of $853,000 was 51% below the $1,735,000 reported in the same quarter one year ago. Net income per share based on basic and diluted weighted average shares outstanding was $0.13, versus $0.27 and $0.26, respectively, last year.
     Of these results, Joseph Stegmayer, Chairman, President and Chief Executive Officer, said, “We are glad that we are able to report a profitable quarter in the face of continued depressed market conditions.  Incoming order rates for both HUD and modular built homes have been slow and gross margins remain under pressure.  We have concerns about the impact of inflation as it relates to material and transportation costs in the production of our homes as well as the capability of prospective buyers to make a housing change at this time.”
     Mr. Stegmayer continued, “Given the turmoil in the general economy, the outlook on the housing front cannot be ascertained.  Some portions of the manufactured housing industry appear to be weathering the storm slightly better than others that are suffering considerably.  Cavco will continue to exploit niche markets in the segments that show some vitality and that provide the opportunities necessary to progress through the current downturn.  Given our solid, debt free, financial condition, attractive product line, and the historically large and growing markets we serve, we are confident about our opportunities to grow and prosper as the financial and housing sectors of the economy stabilize.”
     Cavco’s senior management will hold a conference call to review these results tomorrow, July 25, 2008, 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.opencompany.info. 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, which 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 2008 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)
                 
    June 30,     March 31,  
    2008     2008  
    (Unaudited)          
ASSETS
                
Current assets
                
Cash and cash equivalents
   $ 73,405     $ 73,610  
Restricted cash
     691       330  
Accounts receivable
     9,309       10,093  
Inventories
     13,398       11,293  
Prepaid expenses and other current assets
     1,741       1,839  
Deferred income taxes
     3,820       4,033  
 
            
Total current assets
     102,364       101,198  
 
            
 
                
Property, plant and equipment, at cost:
                
Land
     6,050       6,050  
Buildings and improvements
     7,351       7,290  
Machinery and equipment
     7,993       7,979  
 
            
 
     21,394       21,319  
Accumulated depreciation
     (8,840 )     (8,613 )
 
            
 
     12,554       12,706  
 
            
Goodwill
     67,346       67,346  
 
            
 
                
Total assets
   $ 182,264     $ 181,250  
 
            
 
                
LIABILITIES AND STOCKHOLDERS’ EQUITY
                
Current liabilities
                
Accounts payable
   $ 2,571     $ 2,147  
Accrued liabilities
     17,329       18,005  
 
            
Total current liabilities
     19,900       20,152  
 
            
 
                
Deferred income taxes
     15,120       14,747  
 
                
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 6,468,157 and 6,452,415 shares, respectively
     65       65  
Additional paid-in capital
     124,854       124,814  
Retained earnings
     22,325       21,472  
 
            
Total stockholders’ equity
     147,244       146,351  
 
            
 
                
Total liabilities and stockholders’ equity
   $ 182,264     $ 181,250  
 
            
(more)

 

 

CAVCO INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share amounts)
(Unaudited)
                 
    Three Months Ended  
    June 30,  
    2008     2007  
Net sales
   $ 35,509     $ 37,366  
Cost of sales
     31,321       31,926  
 
            
Gross profit
     4,188       5,440  
Selling, general and administrative expenses
     3,101       3,574  
 
            
Income from operations
     1,087       1,866  
Interest income
     294       671  
 
            
Income before income taxes
     1,381       2,537  
Income tax expense
     528       802  
 
            
 
                
Net income
   $ 853     $ 1,735  
 
            
 
                
Net income per share:
                
Basic
   $ 0.13     $ 0.27  
 
            
Diluted
   $ 0.13     $ 0.26  
 
            
 
                
Weighted average shares outstanding:
                
Basic
     6,460,992       6,400,536  
 
            
Diluted
     6,696,158       6,656,460  
 
            
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CAVCO INDUSTRIES, INC.
OTHER OPERATING DATA – CONTINUING OPERATIONS
(Dollars in thousands, except average sales price amounts)
(Unaudited)
                 
    Three Months Ended  
    June 30,  
    2008     2007  
Net sales
                
Manufacturing
   $ 34,083     $ 36,238  
Retail
     2,516       2,610  
Less: Intercompany
     (1,090 )     (1,482 )
 
            
Net sales
   $ 35,509     $ 37,366  
 
            
 
                
Floor shipments — manufacturing
     1,289       1,339  
 
            
Average sales price per floor — manufacturing
   $ 26,441     $ 27,063  
 
            
 
                
Home shipments — manufacturing
     855       856  
 
            
Average sales price per home — manufacturing
   $ 39,863     $ 42,334  
 
            
 
                
Home shipments — retail
     23       29  
 
            
 
                
Capital expenditures
   $ 75     $ 276  
 
            
Depreciation
   $ 227     $ 190  
 
            
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