In This Article:
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Net Revenue: $477.6 million, up 0.4% from $475.9 million in the prior year.
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Factory-Built Housing Revenue: $458 million, up 0.2% from $457.1 million in the prior year.
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Financial Services Revenue: Increased 4.2% to $19.6 million from $18.8 million.
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Gross Margin: 21.7%, down 310 basis points from 24.8% in the prior year.
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Factory Utilization: Approximately 65%, nearly 70% excluding scheduled downtime.
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Net Income: $34.4 million, compared to $46.4 million in the prior year.
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Diluted Earnings Per Share: $4.11, down from $5.29 in the prior year.
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Insurance Segment Pretax Loss: $5.2 million due to weather events.
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Cash Balance: $359.3 million, up $6.6 million from the prior fiscal year end.
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Interest Income: $5.5 million, up 19.3% from the prior year quarter.
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SG&A Expenses: $64.9 million or 13.6% of net revenue, up from $61.7 million or 13% of net revenue.
Release Date: August 02, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Cavco Industries Inc (NASDAQ:CVCO) reported a positive order trend, with a 25% sequential increase in orders, leading to a 20% increase in shipments and a 22% rise in backlog.
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The company maintained a steady factory gross margin, which increased by 20 basis points sequentially.
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Net revenue for the first fiscal quarter of 2025 was $477.6 million, a slight increase from the previous year, driven by a 3% increase in homes sold.
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Factory utilization improved to approximately 65%, up from 60% in the prior year period.
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Cavco Industries Inc (NASDAQ:CVCO) has a strong cash position with a balance of $359.3 million, up $6.6 million from the end of the prior fiscal year, allowing for continued investment in operational improvements and stock repurchases.
Negative Points
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The Financial Services segment incurred a pretax net loss of $5.2 million due to high insurance claims from severe weather events, impacting overall profitability.
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Consolidated gross margin decreased to 21.7%, down 310 basis points from the same period last year, primarily due to lower average selling prices and losses in financial services.
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Diluted earnings per share dropped to $4.11 from $5.29 in the previous year's first quarter.
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The Insurance division faced significant challenges due to multiple weather events, resulting in a negative gross margin of 0.6% for the Financial Services segment.
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Selling, general, and administrative expenses increased to $64.9 million, up from $61.7 million in the same quarter last year, partly due to acquisition-related costs and increased employee compensation.