-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, HNeVmlEaqx1eXUGDBdIEESk9z0RrT9L4EBgNdb2Xw+4o5LLedfAiSONg8su9ps9e FzmvsFe/jYq8RjInEPTY5Q== 0000950153-96-000086.txt : 19960216 0000950153-96-000086.hdr.sgml : 19960216 ACCESSION NUMBER: 0000950153-96-000086 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19951231 FILED AS OF DATE: 19960214 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: CAVCO INDUSTRIES INC CENTRAL INDEX KEY: 0000278166 STANDARD INDUSTRIAL CLASSIFICATION: MOBILE HOMES [2451] IRS NUMBER: 860214910 STATE OF INCORPORATION: AZ FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-08822 FILM NUMBER: 96518506 BUSINESS ADDRESS: STREET 1: 301 E BETHANY HOME RD STE C-178 CITY: PHOENIX STATE: AZ ZIP: 85012 BUSINESS PHONE: 6022650580 MAIL ADDRESS: STREET 1: 301 EAST BETHANY HOME ROAD STREET 2: SUITE C-178 CITY: PHOENIX STATE: AZ ZIP: 85012 10-Q 1 QUARTERLY REPORT FOR THE QUARTER ENDED 12/31/95 1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC. 20549 Form 10-Q QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For Quarter Ended December 31, 1995 Commission File Number 0-8822 Cavco Industries, Inc. ------------------------------------------------------------------------------ (Exact name of registrant as specified in its charter) Arizona 86-0214910 - -------------------------------- ------------------------------------ (State or other jurisdiction of (I.R.S. Employer Identification No.) incorporation or organization) 301 East Bethany Home Road, Suite C-178 Phoenix, Arizona 85012 - -------------------------------------------------------------------------------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code (602) 265-0580 n/a - -------------------------------------------------------------------------------- Former name, former address and former fiscal year, if changed since last report. Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes /x/ No / / APPLICABLE ONLY TO CORPORATE ISSUERS: Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the close of the period covered by this report.
Class Shares Outstanding ----- ------------------ Common Stock, $.05 Par Value 3,382,977
2 CAVCO INDUSTRIES, INC. AND SUBSIDIARIES Index
PART I. Consolidated Financial Information Page No. -------- Item 1. Financial Statements Consolidated Balance Sheets December 31, 1995 and September 30, 1995 3-4 Consolidated Statements of Earnings Quarter ended December 31, 1995 and 1994 5 Consolidated Statements of Cash Flows Quarter ended December 31, 1995 and 1994 6 Notes to Consolidated Financial Statements 7 Item 2. Management's Discussion and Analysis of Results of Operations and Financial Condition 8 PART II. Other Information 9 Item 6. Exhibits and Reports on Form 8-K
2 3 CAVCO INDUSTRIES, INC. AND SUBSIDIARIES Consolidated Balance Sheets Assets
December 31, September 30, 1995 1995 ------------ ------------- Current Assets Cash $ 5,231,481 8,140,730 Accounts and notes receivable 9,275,676 4,185,533 Inventories Manufacturing: Raw materials 3,212,511 2,971,581 Work in process 840,153 807,949 Held for sale or lease 89,340 80,438 Real estate held for sale 6,778,714 6,133,089 ----------- ---------- Total inventories 10,920,718 9,993,057 ----------- ---------- Prepaid expenses 948,603 834,713 Deferred tax charge 552,981 552,981 ----------- ---------- Total current assets 26,929,459 23,707,014 ----------- ---------- Property. plant and equipment, at cost 14,437,761 14,285,539 Less accumulated depreciation 4,968,560 4,666,351 ----------- ---------- Net property, plant and equipment 9,469,201 9,619,188 ----------- ---------- Assets under lease 15,816,076 14,285,700 Less accumulated depreciation 684,129 596,007 ----------- ---------- Net assets under lease 15,131,947 13,689,693 ----------- ---------- Notes receivable, net of current portion 1,353,420 1,162,415 Investment in partnerships 2,889,400 2,534,703 Other assets 824,114 1,098,926 ----------- ---------- $56,597,541 51,811,939 =========== ==========
3 4 CAVCO INDUSTRIES, INC. AND SUBSIDIARIES Consolidated Balance Sheets Liabilities and Stockholders' Equity
December 31, September 30, 1995 1995 ------------ ------------- Current liabilities Notes payable $ 1,251,022 1,022,864 Current installments of long term debt 3,244,240 2,444,248 Accounts payable 3,709,943 5,009,125 Accrued expenses 6,834,992 6,939,129 Income taxes 1,033,004 42,418 ----------- ---------- Total current liabilities 16,073,201 15,457,784 ----------- ---------- Long term debt, excluding current installments 15,192,907 12,692,661 Deferred taxes and other liabilities 1,285,236 1,278,299 Stockholders' equity: Common stock, $.05 par value; 8,000,000 shares authorized; 3,382,977 shares issued and outstanding 169,149 169,149 Capital in excess of par 312,054 312,054 Retained earnings 23,564,994 21,901,992 ----------- ---------- Net stockholders' equity 24,046,197 22,383,195 ----------- ---------- $56,597,541 51,811,939 =========== ==========
4 5 CAVCO INDUSTRIES, INC. AND SUBSIDIARIES Consolidated Statements of Earnings Quarter Ended December 31, 1995 and 1994
1995 1994 ---- ---- Net sales $30,899,885 30,140,661 Cost of sales 24,355,984 24,098,177 ----------- ---------- Gross profit 6,543,901 6,042,484 Selling, general and administrative expenses 3,547,674 3,405,971 ----------- ---------- Operating income 2,996,227 2,636,513 Other income (expense) Interest income 77,040 128,710 Interest expense (343,893) (65,940) Miscellaneous 50,814 27,566 ----------- ---------- (216,039) 90,336 ----------- ---------- Income from continuing operations before income taxes 2,780,188 2,726,849 Income taxes 1,107,420 1,098,700 ----------- ---------- Income from continuing operations 1,672,768 1,628,149 Loss from discontinued operations, net of tax credit of $6,800 in 1995 and $49,000 in 1994 (9,766) (166,415) ----------- ---------- Net income $1,663,002 1,461,734 =========== ========== Income per share from continuing operations .49 .48 === === Income per share from discontinued operations -- (.05) ==== Net income per share .49 .43 === ===
5 6 CAVCO INDUSTRIES, INC. AND SUBSIDIARIES Consolidated Statements of Cash Flows Quarter Ended December 31, 1995 and 1994
1995 1994 ---- ---- Net cash used in operations $(4,568,032) (5,430,738) Cash flows from investing activities: Purchases of property, plant and equipment (298,906) (752,952) Purchases of assets under lease (2,141,691) (1,504,399) Proceeds from sales of property, plant and equipment 103,992 -- Proceeds from sales of assets under lease 217,926 155,013 Proceeds from collections on notes receivable 603,763 146,997 Additions to investment in partnerships (354,697) (1,036,809) ----------- ---------- Net cash used in investing activities (1,869,613) (2,992,150) ----------- ---------- Cash flows from financing activities: Borrowings under lines of credit 1,352,635 411,275 Repayments on lines of credit (1,124,477) (680,601) Proceeds from long term borrowings 4,000,000 -- Repayment of long term debt (699,762) (193,847) ----------- ---------- Net cash provided by (used in) financing activities 3,528,396 (463,173) ----------- ---------- Decrease in cash (2,909,249) (8,886,061) Cash at beginning of period 8,140,730 9,006,600 ----------- ---------- Cash at end of period $ 5,231,481 120,539 =========== ========== Supplemental disclosure of cash flow information: Cash paid during the period for - Interest $ 492,509 147,995 Income taxes $ 117,634 2,517,000
6 7 CAVCO INDUSTRIES, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 1. The consolidated financial statements include the accounts of the Company and its subsidiaries, Action Healthcare Management Services, Inc. (Action), Sun Built Homes, Inc. (Sun Built) and National Security Containers, Inc. (NSC). The information reflected in the consolidated financial statements has not been examined by independent accountants and necessarily in some respects is based upon estimates which are subject to adjustment in annual closing of accounts. In the opinion of the Company, all adjustments (consisting of only normal recurring adjustments and primary eliminations of all significant intercompany transactions) necessary to present fairly the financial position for the periods presented have been included. These financial statements have been prepared in accordance with the instructions to the Form 10-Q and therefore do not include all information and footnotes necessary for a fair presentation in conformity with generally accepted accounting principles. These financial statements should be read in conjunction with the financial statements and related disclosures contained in the Corporation's Annual Report on Form 10-K for the year ended September 30, 1995, filed with the Securities and Exchange Commission. 2. The number of shares used in computing earnings per common share for both quarters presented, based on the weighted average number of shares outstanding, was 3,382,977. The number of shares reflects a three-for-two stock split which occured in December 1994. 3. The results of operations for the quarter ended December 31, 1995 are not necessarily indicative of the results to be expected for the full year. 7 8 CAVCO INDUSTRIES, INC. AND SUBSIDIARIES MANAGEMENT DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION First Quarter 1995 Compared to First Quarter 1994 For the quarter ended December 31, 1995, the Company's net sales increased $759,224 (2.5%) over the corresponding quarter of the previous year. While manufactured housing sales remained comparable, significant growth emanated from the leasing division. NSC's revenues increased from $1,077,698 for the first quarter of 1994 to $2,250,897 for the first quarter of 1995. The growth is contributed by three new branch locations. In addition, Sun Built's sales increased over $700,000 from the prior year quarter, a result of a single subdivision project which completed in December. Gross profit margins increased to 21.2 percent compared to 20.0 percent reported for the same quarter of the previous year. The increase is due, in large part, to the growing impact of the leasing division, which attained a 50.6 percent gross margin for the current quarter. Margins in the manufacturing operations remained comparable between years (18.1% in 1995, 18.8% in 1994). Selling, general and administrative expenses increased in 1995 to $3,547,674, compared to $3,405,971 in 1994, but remain consistent as a percent of sales. The increase is attributed primarily to additional NSC branch locations. The increase in interest expense is a result of borrowings to fund additions to the lease fleet. The Company recognized a $.01 increase in earnings per share from continuing operations over that for the same quarter of the previous year: $.49 compared to $.48. Income from continuing operations was $1,672,768 and $1,628,149 for the first quarters of 1995 and 1994, respectively. Net income increased from $1,461,734 for the first quarter of 1994 to $1,663,002 for the first quarter of 1995, providing a $.06 increase in net income per share: $.49 compared to $.43. Liquidity and Capital Resources The Company finished the quarter ended December 31, 1995 with cash of $5,231,481 and working capital of $10,856,258. Net cash flow from operations was negative due primarily to a $5.5 million increase in accounts receivable, in the manufacturing and leasing operations. The cash and working capital positions tend to fluctuate due to the expansion of the lease fleet. The Company borrowed $1,352,635 from its lines of credit during the quarter. The Company used $800,000 to temporarily fund some of the lease fleet expansion and the increase in receivables, while Sun Built used $552,635 from its line for additions to real estate held for sale. The Company also received $4,000,000 from its long term funding source. Uses of cash during the quarter include $2,141,691 for additions to the lease fleet, $354,697 for additions to investment in partnerships, and $298,906 for purchases of property, plant and equipment. The Company also repaid $1,124,477 on its lines of credit and $699,762 of long term debt. The Company continues to expand its lease fleet, and has $3,000,000 available to draw from its long term funding source. Other capital expenditures for the remainder of the year are expected to be only those necessary for normal replacement of machinery and equipment. The Company believes that its existing cash, available lines of credit, and cash generated from operations will be sufficient to meet capital expenditure and debt service requirements. 8 9 PART II. Other Information Item 6. Exhibits and Reports on Form 8-K (a) Exhibits EX-27 Financial Data Schedule - Three months ended December 31, 1995 (b) Reports on Form 8-K The Company did not file any Form 8-K's during the quarter ended December 31, 1995. There has not been any additional information with respect to items listed in the Index, related to the periods being reported, which has not been previously reported or which, in the opinion of management, is of significance to investors. 9 10 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 thereunto duly authorized. Cavco Industries, Inc. ------------------------------------- (Registrant) Date February 12, 1996 /s/ Robert Ward - -------------------------- ------------------------------------- (Signature) Robert Ward, Vice President, Treasurer and Chief Financial Officer 10 EX-27 2 FINANCIAL DATA SCHEDULE WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM BALANCE SHEET AND STATEMENT OF EARNINGS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FORM 10-Q FOR QUARTER ENDED DECEMBER 31, 1995. 3-MOS SEP-30-1996 OCT-01-1995 DEC-01-1995 5,231,481 0 9,486,664 210,988 10,920,718 26,929,459 14,437,761 4,968,560 56,597,541 16,073,201 15,192,907 0 0 169,149 23,877,048 56,597,541 29,049,495 30,899,885 23,571,721 24,355,984 3,547,674 0 343,893 2,780,188 1,107,420 1,672,768 (9,766) 0 0 1,663,002 .49 .49
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