Net Sales $34.2 Million
Net Income $1.3 Million
PHOENIX, May 1, 2008 (PRIME NEWSWIRE) -- Cavco Industries, Inc. (Nasdaq:CVCO) today announced financial results for the fourth quarter and fiscal year 2008 ended March 31, 2008.
Net sales for the fourth quarter of fiscal 2008 totaled $34,204,000, up 1% from $33,812,000 for the fourth quarter of fiscal year 2007.
Net income for the fiscal 2008 fourth quarter of $1,303,000 was 26% below the $1,759,000 reported in the same quarter one year ago. Net income per share based on basic and diluted weighted average shares outstanding was $0.20, versus $0.28 and $0.27, respectively last year.
For the fiscal year ended March 31, 2008, net sales decreased 16% to $141,914,000 from $169,114,000 for fiscal year 2007, and net income declined 45% to $6,312,000 from $11,549,000 last year. For fiscal 2008, net income per share based on basic and diluted weighted average shares outstanding was $0.98 and $0.95, respectively, versus $1.81 and $1.74, respectively for the year-earlier period.
"Our fourth quarter results were adversely impacted by continued declines in industry shipments of factory built homes, particularly in our core markets of Arizona and California. In view of the state of the housing industry and the general economy, we are proud that our people produced profitable financial results and that we achieved some success in market share improvement and expanded distribution," stated Joseph Stegmayer, Chairman, President and Chief Executive Officer of Cavco Industries, Inc.
"Amid the uncertain U.S. economic outlook, it is not possible to predict the conditions we may face in the months ahead. We do believe, however, that the affordable housing we build should play an increasing role in serving our nation's housing needs given the tighter credit markets and the absence of the aggressive mortgage financing of recent years that enabled a disproportionate number of buyers to consider more expensive homes," Mr. Stegmayer continued.
"Meanwhile, Cavco's strong financial condition provides us the flexibility to consider various ways to position ourselves for increased growth opportunities as market conditions improve. At March 31, 2008 cash and cash equivalents were $73.6 million and we had no short or long-term debt outstanding," Mr. Stegmayer concluded.
Cavco's senior management will hold a conference call to review these results tomorrow, May 2, 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 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.
CAVCO INDUSTRIES, INC.
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
March 31, March 31,
2008 2007
--------- ---------
(Unaudited)
ASSETS
Current assets
Cash and cash equivalents $ 73,610 $ 12,976
Short-term investments -- 50,900
Restricted cash 330 339
Accounts receivable 10,093 8,107
Inventories 11,293 13,464
Prepaid expenses and other current assets 1,839 2,273
Deferred income taxes 4,033 3,930
--------- ---------
Total current assets 101,198 91,989
--------- ---------
Property, plant and equipment, at cost:
Land 6,050 6,050
Buildings and improvements 7,290 7,029
Machinery and equipment 7,979 7,617
--------- ---------
21,319 20,696
Accumulated depreciation (8,613) (7,894)
--------- ---------
12,706 12,802
--------- ---------
Goodwill 67,346 67,346
--------- ---------
Total assets $ 181,250 $ 172,137
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $ 2,147 $ 2,868
Accrued liabilities 18,005 18,417
--------- ---------
Total current liabilities 20,152 21,285
--------- ---------
Deferred income taxes 14,747 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 65 64
Additional paid-in capital 124,814 122,868
Retained earnings 21,472 15,160
--------- ---------
Total stockholders' equity 146,351 138,092
--------- ---------
Total liabilities and stockholders' equity $ 181,250 $ 172,137
========= =========
CAVCO INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share amounts)
(Unaudited)
Three Months Ended Year Ended
March 31, March 31,
---------------------- ----------------------
2008 2007 2008 2007
---------- ---------- ---------- ----------
Net sales $ 34,204 $ 33,812 $ 141,914 $ 169,114
Cost of sales 29,404 28,497 121,538 138,813
---------- ---------- ---------- ----------
Gross profit 4,800 5,315 20,376 30,301
Selling, general and
administrative
expenses 3,373 3,407 13,825 15,311
---------- ---------- ---------- ----------
Income from operations 1,427 1,908 6,551 14,990
Interest income 467 605 2,539 2,387
---------- ---------- ---------- ----------
Income from continuing
operations before
income taxes 1,894 2,513 9,090 17,377
Income tax expense 591 754 2,778 5,962
---------- ---------- ---------- ----------
Income from continuing
operations 1,303 1,759 6,312 11,415
Income from
discontinued retail
operations net of
income taxes of $0
and $66 -- -- -- 134
---------- ---------- ---------- ----------
Net income $ 1,303 $ 1,759 $ 6,312 $ 11,549
========== ========== ========== ==========
Net income per share
(basic):
Continuing
operations $ 0.20 $ 0.28 $ 0.98 $ 1.79
Discontinued
retail operations $ -- $ -- $ -- $ 0.02
---------- ---------- ---------- ----------
Net income $ 0.20 $ 0.28 $ 0.98 $ 1.81
========== ========== ========== ==========
Net income per share
(diluted):
Continuing
operations $ 0.20 $ 0.27 $ 0.95 $ 1.72
Discontinued
retail operations $ -- $ -- $ -- $ 0.02
---------- ---------- ---------- ----------
Net income $ 0.20 $ 0.27 $ 0.95 $ 1.74
========== ========== ========== ==========
Weighted average
shares outstanding:
Basic 6,452,415 6,377,247 6,427,264 6,363,368
========== ========== ========== ==========
Diluted 6,674,902 6,624,558 6,664,111 6,629,580
========== ========== ========== ==========
CAVCO INDUSTRIES, INC.
OTHER OPERATING DATA - CONTINUING OPERATIONS
(Dollars in thousands, except average sales price amounts)
(Unaudited)
Three Months Ended Year Ended
March 31, March 31,
--------------------- ---------------------
2008 2007 2008 2007
--------- --------- --------- ---------
Net sales
Manufacturing $ 32,879 $ 32,484 $ 134,301 $ 161,242
Retail 2,328 2,933 12,429 14,807
Less: Intercompany (1,003) (1,605) (4,816) (6,935)
--------- --------- --------- ---------
Net sales $ 34,204 $ 33,812 $ 141,914 $ 169,114
========= ========= ========= =========
Floor shipments -
manufacturing 1,316 1,181 5,104 5,884
========= ========= ========= =========
Average sales price
per floor -
manufacturing $ 24,984 $ 27,506 $ 26,313 $ 27,403
========= ========= ========= =========
Home shipments -
manufacturing 876 746 3,301 3,612
========= ========= ========= =========
Average sales price
per home -
manufacturing $ 37,533 $ 43,544 $ 40,685 $ 44,641
========= ========= ========= =========
Home shipments - retail 27 30 158 145
========= ========= ========= =========
Capital expenditures $ 74 $ 339 $ 689 $ 1,150
========= ========= ========= =========
Depreciation $ 200 $ 173 $ 785 $ 692
========= ========= ========= =========