False000027816600002781662024-10-312024-10-31


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): October 31, 2024
CAVCO INDUSTRIES INC.
(Exact name of registrant as specified in its charter)
Delaware000-0882256-2405642
(State or other jurisdiction
of incorporation)		(Commission
File Number)		(IRS Employer
Identification No.)
3636 North Central Avenue, Suite 1200
Phoenix
Arizona
85012
(Address of principal executive offices, including zip code)
Registrant's telephone number, including area code: (602) 256-6263
Not applicable
(Former name or former address, if changed from last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading SymbolName of each exchange on which registered
Common Stock, par value $0.01CVCOThe Nasdaq Stock Market LLC
(Nasdaq Global Select Market)

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐




Item 2.02.    Results of Operations and Financial Condition

On October 31, 2024, Cavco Industries, Inc., a Delaware corporation (the "Company"), announced financial results for its fiscal second quarter ended September 28, 2024. A copy of the Company’s press release announcing these financial results is attached as Exhibit 99.1 hereto and incorporated in this Item 2.02 by reference.
Item 8.01

On October 29, 2024, the Company's Board of Directors approved a new $100 million stock repurchase program which was also announced in the press release attached as Exhibit 99.1 hereto. The purchases may be made in the open market or one or more privately negotiated transactions in compliance with applicable securities laws and other legal requirements. The actual timing, number and value of shares repurchased under the program will be determined by the Company in its discretion and will depend on a number of factors, including market conditions, applicable legal requirements and other strategic capital needs and opportunities. The program does not obligate Cavco to acquire any particular amount of common stock and may be suspended or discontinued at any time. The Company expects to finance the program from existing cash resources.
Item 9.01.    Financial Statements and Exhibits
Exhibit NumberDescription
104Cover Page Interactive Data File (embedded within the Inline XBRL document)



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 hereunto duly authorized.
CAVCO INDUSTRIES, INC.
By:/s/ Allison K. Aden
Allison K. Aden
Executive Vice President, Chief Financial Officer & Treasurer
Date:October 31, 2024



cavco_logoa.jpg
For additional information, contact:
Mark Fusler
Corporate Controller and Investor Relations
investor_relations@cavco.com
News Release
Phone: 602-256-6263
On the Internet: www.cavcoindustries.com
FOR IMMEDIATE RELEASE
CAVCO INDUSTRIES REPORTS FISCAL 2025 SECOND QUARTER RESULTS AND ANNOUNCES NEW $100 MILLION STOCK REPURCHASE PROGRAM
PHOENIX, October 31, 2024 (GLOBE NEWSWIRE) – Cavco Industries, Inc. (Nasdaq: CVCO) ("we," "our," the "Company" or "Cavco") today announced financial results for the second fiscal quarter ended September 28, 2024.
Quarterly Highlights
•Net revenue was $507 million, up $55 million or 12.3% compared to $452 million in the second quarter of the prior year, primarily on home sales volume growth.
•Home sales volume is up 15.7% and capacity utilization is up to approximately 70% from approximately 60% in the second quarter of the prior year.
•Factory-built housing Gross profit as a percentage of Net revenue was 22.9%, compared to 23.2% in the prior year period.
•Financial services Gross profit as a percentage of Net revenue was 21.8%, compared to Gross profit of 35.9% in the prior year period.
•Income before income taxes was $55.0 million, up $3.3 million or 6.4% compared to $51.7 million in the prior year period.
•Net income per diluted share attributable to Cavco common stockholders was $5.28 compared to $4.76 in the prior year quarter.
•Backlogs totaled $276 million at the end of the quarter, up $44 million, or 19%, from $232 million three months ago, with modules in the backlog growing 20%.
•Stock repurchases were approximately $44 million in the quarter.
•On October 29, 2024, the Company's Board of Directors approved an additional $100 million stock repurchase program.

Commenting on the quarter, President and Chief Executive Officer Bill Boor said, "Our second quarter results were strong as our plants ramped production in line with order growth. Additionally, our Financial Services segment showed improvement following the previously communicated $4 million in claims resulting from Hurricane Beryl early in the period.

He continued, "Our continuing prayers and support are with all those affected by Hurricanes Helene and Milton. Thankfully, our employees and their families remained safe; however, many suffered devastating property damage. While dealing with their personal challenges, our Cavco teammates resumed operations, minimizing any negative home shipment effects. Our thanks go out to all our dedicated co-workers in the region for their grit and commitment to providing homes for our customers. The critical importance of that work has never been more apparent than in the aftermath of these catastrophes."




Financial Results
Three Months Ended
($ in thousands, except revenue per home sold)September 28,
2024		September 30,
2023		Change
Net revenue
Factory-built housing$486,343 $434,066 $52,277 12.0 %
Financial services21,118 17,964 3,154 17.6 %
$507,461 $452,030 $55,431 12.3 %
Factory-built modules sold8,119 6,912 1,207 17.5 %
Factory-built homes sold (consisting of one or more modules)4,913 4,248 665 15.7 %
Net factory-built housing revenue per home sold$98,991 $102,181 $(3,190)(3.1)%
 Six Months Ended
($ in thousands, except revenue per home sold)September 28,
2024		September 30,
2023		Change
Net revenue
Factory-built housing$944,391 $891,175 $53,216 6.0 %
Financial services40,669 36,730 3,939 10.7 %
$985,060 $927,905 $57,155 6.2 %
Factory-built modules sold15,790 14,318 1,472 10.3 %
Factory-built homes sold (consisting of one or more modules)9,634 8,830 804 9.1 %
Net factory-built housing revenue per home sold$98,027 $100,926 $(2,899)(2.9)%
•In the factory-built housing segment, the increase in Net revenue for the three and six months periods was due to higher home sales volume, partially offset by a decrease in revenue per home sold primarily due to a lower proportion of homes sold through our Company-owned stores and, to a lesser extent, product pricing decreases.
•Financial services segment Net revenue increased for the three and six month periods from higher insurance premiums.


Three Months Ended
($ in thousands)September 28,
2024		September 30,
2023		Change
Gross profit
Factory-built housing$111,520 $100,507 $11,013 11.0 %
Financial services4,602 6,450 (1,848)(28.7)%
$116,122 $106,957 $9,165 8.6 %
Gross profit as % of Net revenue
Consolidated22.9 %23.7 %N/A(0.8)%
Factory-built housing22.9 %23.2 %N/A(0.3)%
Financial services21.8 %35.9 %N/A(14.1)%
Selling, general and administrative expenses
Factory-built housing$61,440 $56,455 $4,985 8.8 %
Financial services5,557 5,051 506 10.0 %
$66,997 $61,506 $5,491 8.9 %
Income from operations
Factory-built housing$50,080 $44,052 $6,028 13.7 %
Financial services(955)1,399 (2,354)(168.3)%
$49,125 $45,451 $3,674 8.1 %
 Six Months Ended
($ in thousands)September 28,
2024		September 30,
2023		Change
Gross profit
Factory-built housing$215,030 $213,875 $1,155 0.5 %
Financial services4,494 10,961 (6,467)(59.0)%
$219,524 $224,836 $(5,312)(2.4)%
Gross profit as % of Net revenue
Consolidated22.3 %24.2 %N/A(1.9)%
Factory-built housing22.8 %24.0 %N/A(1.2)%
Financial services11.1 %29.8 %N/A(18.7)%
Selling, general and administrative expenses
Factory-built housing$121,160 $112,476 $8,684 7.7 %
Financial services10,688 10,710 (22)(0.2)%
$131,848 $123,186 $8,662 7.0 %
Income from operations
Factory-built housing$93,870 $101,399 $(7,529)(7.4)%
Financial services(6,194)251 (6,445)(2,567.7)%
$87,676 $101,650 $(13,974)(13.7)%
•In the factory-built housing segment, Gross profit as a percent of Net revenue for the three and six months ended September 28, 2024 decreased primarily due to lower average selling price, partially offset by lower input costs per unit.


•In the financial services segment, Gross profit and Income from operations for the three and six months ended September 28, 2024 was negatively impacted by high insurance claims from Hurricane Beryl in July and multiple weather events in Texas, as well as the wildfires in New Mexico in the first fiscal quarter of this year.
•Selling, general and administrative expenses increased for the three months ended September 28, 2024 as a result of increases in variable compensation driven by higher incentive compensation and as a result of increases in expense from acquired retail locations. Selling, general and administrative expenses increased for the six months ended September 28, 2024 as a result of increases in expense from acquired retail locations.
Three Months Ended
($ in thousands, except per share amounts)September 28,
2024		September 30,
2023		Change
Interest Income$5,692 $5,812 $(120)(2.1)%
Net income attributable to Cavco common stockholders$43,815 $41,539 $2,276 5.5 %
Diluted net income per share$5.28 $4.76 $0.52 10.9 %
 Six Months Ended
($ in thousands, except per share amounts)September 28,
2024		September 30,
2023		Change
Interest Income$11,203 $10,430 $773 7.4 %
Net income attributable to Cavco common stockholders$78,244 $87,896 $(9,652)(11.0)%
Diluted net income per share$9.38 $10.05 $(0.67)(6.7)%
Items ancillary to our core operations had the following impact on the results of operations:
Three Months EndedSix Months Ended
($ in millions)September 28,
2024		September 30,
2023		September 28,
2024		September 30,
2023
Net revenue
Unrealized (loss) gains recognized during the period on securities held in the financial services segment$(0.4)$(0.3)$0.5 $— 
Selling, general and administrative expenses
Legal and other expense related to the SEC inquiry, including indemnified costs of a former officer— (0.7)— (1.0)
Other income, net
Unrealized gains on corporate equity securities0.2 — 0.1 0.1 


Conference Call Details

Cavco's management will hold a conference call to review these results tomorrow, November 1, 2024, at 1:00 p.m. (Eastern Time). Interested parties can access a live webcast of the conference call on the Internet at https://investor.cavco.com or via telephone. To participate by phone, please register at
https://register.vevent.com/register/BI8027130d78cd43a583d368caa437db57 to receive the dial in number and your PIN. An archive of the webcast and presentation will be available for 60 days at https://investor.cavco.com.

About Cavco
Cavco Industries, Inc., headquartered in Phoenix, Arizona, designs and produces factory-built housing products primarily distributed through a network of independent and Company-owned retailers. We are one of the largest producers of manufactured and modular homes in the United States, based on reported wholesale shipments. Our products are marketed under a variety of brand names including Cavco, Fleetwood, Palm Harbor, Nationwide, Fairmont, Friendship, Chariot Eagle, Destiny, Commodore, Colony, Pennwest, R-Anell, Manorwood, MidCountry and Solitaire. We are also a leading producer of park model RVs, vacation cabins and factory-built commercial structures. Cavco's finance subsidiary, CountryPlace Mortgage, is an approved Fannie Mae and Freddie Mac seller/servicer and a Ginnie Mae mortgage-backed securities issuer that offers conforming mortgages, non-conforming mortgages and home-only loans to purchasers of factory-built homes. Our insurance subsidiary, Standard Casualty, provides property and casualty insurance to owners of manufactured homes.


Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that are not historical facts. These forward-looking statements reflect Cavco's current expectations and projections with respect to our expected future business and financial performance, including, among other things: (i) expected financial performance and operating results, such as revenue and gross margin percentage; (ii) our liquidity and financial resources; (iii) our outlook with respect to the Company and the manufactured housing business in general; (iv) the expected effect of certain risks and uncertainties on our business; and (iv) the strength of Cavco's business model. These statements may be preceded by, followed by, or include the words "aim," "anticipate," "believe," "estimate," "expect," "forecast," "future," "goal," "intend," "likely," "outlook," "plan," "potential," "project," "seek," "target," "can," "could," "may," "should," "would," "will," the negatives thereof and other words and terms of similar meaning. A number of factors could cause actual results or outcomes to differ materially from those indicated by these forward-looking statements. These factors include, among other factors, Cavco's ability to manage: (i) customer demand and the availability of financing for our products; (ii) labor shortages and the pricing, availability, or transportation of raw materials; (iii) the impact of local or national emergencies; (iv) excessive health and safety incidents or warranty and construction claims; (v) increases in cancellations of home sales; (vi) information technology failures or cyber incidents; (vii) our ability to maintain the security of personally identifiable information of our customers, (viii) comply with the numerous laws and regulations applicable to our business, including state, federal, and foreign laws relating manufactured housing, privacy, the internet, and accounting matters; (ix) successfully defend against litigation, government inquiries, and investigations, and (x) other risks and uncertainties indicated from time to time in documents filed or to be filed with the Securities and Exchange Commission (the "SEC") by Cavco. The forward-looking statements herein represent the judgment of Cavco as of the date of this release and Cavco disclaims any intent or obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments, or otherwise. This press release should be read in conjunction with the information included in the Company's other press releases, reports, and other filings with the SEC. Readers are specifically referred to the Risk Factors described in Item 1A of the Company's Annual Report on Form 10-K for the year ended March 30, 2024 as may be updated from time to time in future filings on Form 10-Q and other reports filed by the Company pursuant to the Securities Exchange Act of 1934, which identify important risks that could cause actual results to differ from those contained in the forward-looking statements. Understanding the information contained in these filings is important in order to fully understand Cavco's reported financial results and our business outlook for future periods.



CAVCO INDUSTRIES, INC.
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands, except per share amounts)
September 28,
2024		March 30,
2024
ASSETS(Unaudited)
Current assets
Cash and cash equivalents$364,113 $352,687 
Restricted cash, current21,519 15,481 
Accounts receivable, net94,296 77,123 
Short-term investments24,574 18,270 
Current portion of consumer loans receivable, net30,899 20,713 
Current portion of commercial loans receivable, net36,887 40,787 
Current portion of commercial loans receivable from affiliates, net2,894 2,529 
Inventories244,025 241,339 
Prepaid expenses and other current assets82,758 82,870 
Total current assets901,965 851,799 
Restricted cash585 585 
Investments12,845 17,316 
Consumer loans receivable, net20,770 23,354 
Commercial loans receivable, net47,192 45,660 
Commercial loans receivable from affiliates, net3,933 2,065 
Property, plant and equipment, net225,121 224,199 
Goodwill121,969 121,934 
Other intangibles, net27,445 28,221 
Operating lease right-of-use assets36,378 39,027 
Total assets$1,398,203 $1,354,160 
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable$39,252 $33,531 
Accrued expenses and other current liabilities272,228 239,736 
Total current liabilities311,480 273,267 
Operating lease liabilities32,485 35,148 
Other liabilities7,529 7,759 
Deferred income taxes4,732 4,575 
Stockholders' equity
Preferred stock, $0.01 par value; 1,000,000 shares authorized; No shares issued or outstanding— — 
Common stock, $0.01 par value; 40,000,000 shares authorized; Issued 9,417,332 and 9,389,953 shares, respectively; Outstanding 8,267,797 and 8,320,718, respectively
94 94 
Treasury stock, at cost; 1,149,535 and 1,069,235 shares, respectively
(348,406)(274,693)
Additional paid-in capital284,995 281,216 
Retained earnings1,105,371 1,027,127 
Accumulated other comprehensive loss(77)(333)
Total stockholders' equity1,041,977 1,033,411 
Total liabilities and stockholders' equity$1,398,203 $1,354,160 


CAVCO INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except per share amounts)
(Unaudited)
 Three Months EndedSix Months Ended
 September 28,
2024		September 30,
2023		September 28,
2024		September 30,
2023
Net revenue$507,461 $452,030 $985,060 $927,905 
Cost of sales391,339 345,073 765,536 703,069 
Gross profit116,122 106,957 219,524 224,836 
Selling, general and administrative expenses66,997 61,506 131,848 123,186 
Income from operations49,125 45,451 87,676 101,650 
Interest income5,692 5,812 11,203 10,430 
Interest expense(125)(257)(215)(523)
Other income, net258 655 147 781 
Income before income taxes54,950 51,661 98,811 112,338 
Income tax expense(11,135)(10,088)(20,567)(24,354)
Net income43,815 41,573 78,244 87,984 
Less: net income attributable to redeemable noncontrolling interest— 34 — 88 
Net income attributable to Cavco common stockholders$43,815 $41,539 $78,244 $87,896 
Net income per share attributable to Cavco common stockholders
Basic$5.33 $4.80 $9.48 $10.15 
Diluted$5.28 $4.76 $9.38 $10.05 
Weighted average shares outstanding
Basic8,226,298 8,656,537 8,256,664 8,663,430 
Diluted8,305,326 8,731,419 8,337,671 8,742,734 


CAVCO INDUSTRIES, INC.
OTHER OPERATING DATA
(Dollars in thousands)
(Unaudited)
Three Months EndedSix Months Ended
September 28,
2024		September 30,
2023		September 28,
2024		September 30,
2023
Capital expenditures$4,905 $4,287 $9,819 $8,470 
Depreciation$4,375 $4,275 $8,744 $8,449 
Amortization of other intangibles$385 $393 $777 $785 

###

v3.24.3
Document and Entity Information Document and Entity Information
Oct. 31, 2024
Document and Entity Information [Abstract]  
Document Type 8-K
Amendment Flag false
Document Period End Date Oct. 31, 2024
Entity Registrant Name CAVCO INDUSTRIES INC.
Entity Central Index Key 0000278166
Entity Emerging Growth Company false
Entity File Number 000-08822
Entity Incorporation, State or Country Code DE
Entity Tax Identification Number 56-2405642
Entity Address, Address Line One 3636 North Central Avenue, Suite 1200
Entity Address, City or Town Phoenix
Entity Address, State or Province AZ
Entity Address, Postal Zip Code 85012
City Area Code 602
Local Phone Number 256-6263
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock, par value $0.01
Trading Symbol CVCO
Security Exchange Name NASDAQ
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