PHOENIX, Oct. 23, 2008 (GLOBE NEWSWIRE) -- Cavco Industries, Inc. (Nasdaq:CVCO) today announced financial results for the second quarter and first six months of its fiscal year 2009 ended September 30, 2008.
Net sales for the second quarter of fiscal 2009 totaled $30,030,000, down 22% from $38,435,000 for the second quarter of fiscal year 2008.
Net income for the fiscal 2009 second quarter of $518,000 was 73% below the $1,909,000 reported in the same quarter one year ago. Net income per share based on basic and diluted weighted average shares outstanding was $0.08, versus $0.30 and $0.29, respectively, last year.
For the first six months of fiscal 2009, net sales decreased 14% to $65,539,000 from $75,801,000 for the comparable prior year period, and net income declined 62% to $1,371,000 from $3,644,000 last year. For the first half of fiscal 2009, net income per share based on basic and diluted weighted average shares outstanding was $0.21 and $0.20, respectively, versus $0.57 and $0.55, respectively for the prior year period.
"The continued deterioration in housing and the accelerated decline in the financial markets had a heavy impact on the Company's performance in the second quarter. That we remained profitable for the quarter demonstrates the strength of our distribution base, broad product offering and the quality and service we provide," said Joseph Stegmayer, Chairman, President and Chief Executive Officer.
"Industry projections indicate that manufactured home shipments may decline by 10% or more in calendar year 2008 compared to 2007's level, which was a 46-year historic low. Recently, shipments in our largest markets are down even more than these projections. However, given the strength of our debt-free balance sheet and our focus on doing the right things to position the Company well for the challenging near-term and the more promising years ahead, we remain confident that we will weather these turbulent times and emerge prepared to prosper as economic conditions improve."
Cavco's senior management will hold a conference call to review these results tomorrow, October 24, 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.
CAVCO INDUSTRIES, INC.
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
Sept. 30, March 31,
2008 2008
--------- ---------
(Unaudited)
ASSETS
Current assets
Cash and cash equivalents $ 75,701 $ 73,610
Restricted cash 151 330
Accounts receivable 7,812 10,093
Inventories 12,489 11,293
Prepaid expenses and other current assets 1,761 1,839
Deferred income taxes 3,778 4,033
--------- ---------
Total current assets 101,692 101,198
--------- ---------
Property, plant and equipment, at cost:
Land 6,580 6,050
Buildings and improvements 7,379 7,290
Machinery and equipment 8,114 7,979
--------- ---------
22,073 21,319
Accumulated depreciation (8,991) (8,613)
--------- ---------
13,082 12,706
--------- ---------
Goodwill 67,346 67,346
--------- ---------
Total assets $ 182,120 $ 181,250
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $ 1,834 $ 2,147
Accrued liabilities 16,227 18,005
--------- ---------
Total current liabilities 18,061 20,152
--------- ---------
Deferred income taxes 15,642 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 6,496,460 and 6,452,415
shares, respectively 65 65
Additional paid-in capital 125,509 124,814
Retained earnings 22,843 21,472
--------- ---------
Total stockholders' equity 148,417 146,351
--------- ---------
Total liabilities and stockholders' equity $ 182,120 $ 181,250
========= =========
CAVCO INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share amounts)
(Unaudited)
Three Months Ended Six Months Ended
September 30, September 30,
-------------------- --------------------
2008 2007 2008 2007
--------- --------- --------- ---------
Net sales $ 30,030 $ 38,435 $ 65,539 $ 75,801
Cost of sales 26,329 32,887 57,650 64,813
--------- --------- --------- ---------
Gross profit 3,701 5,548 7,889 10,988
Selling, general and
administrative
expenses 3,145 3,555 6,246 7,129
--------- --------- --------- ---------
Income from
operations 556 1,993 1,643 3,859
Interest income 285 718 579 1,389
--------- --------- --------- ---------
Income before income
taxes 841 2,711 2,222 5,248
Income tax expense 323 802 851 1,604
--------- --------- --------- ---------
Net income $ 518 $ 1,909 $ 1,371 $ 3,644
========= ========= ========= =========
Net income per share:
Basic $ 0.08 $ 0.30 $ 0.21 $ 0.57
========= ========= ========= =========
Diluted $ 0.08 $ 0.29 $ 0.20 $ 0.55
========= ========= ========= =========
Weighted average shares
outstanding:
Basic 6,484,362 6,423,387 6,472,677 6,411,961
========= ========= ========= =========
Diluted 6,705,005 6,660,242 6,695,902 6,656,135
========= ========= ========= =========
CAVCO INDUSTRIES, INC.
OTHER OPERATING DATA - CONTINUING OPERATIONS
(Dollars in thousands, except average sales price amounts)
(Unaudited)
Three Months Ended Six Months Ended
September 30, September 30,
-------------------- --------------------
2008 2007 2008 2007
--------- --------- --------- ---------
Net sales
Manufacturing $ 29,888 $ 35,130 $ 63,971 $ 71,368
Retail 1,808 4,414 4,324 7,024
Less: Intercompany (1,666) (1,109) (2,756) (2,591)
--------- --------- --------- ---------
Net sales $ 30,030 $ 38,435 $ 65,539 $ 75,801
========= ========= ========= =========
Floor shipments -
manufacturing 1,168 1,317 2,457 2,656
========= ========= ========= =========
Average sales price
per floor -
manufacturing $ 25,589 $ 26,674 $ 26,036 $ 26,870
========= ========= ========= =========
Home shipments -
manufacturing 751 823 1,606 1,679
========= ========= ========= =========
Average sales price
per home -
manufacturing $ 39,798 $ 42,685 $ 39,833 $ 42,506
========= ========= ========= =========
Home shipments -
retail 37 67 60 96
========= ========= ========= =========
Capital expenditures $ 742 $ 225 $ 817 $ 501
========= ========= ========= =========
Depreciation $ 198 $ 197 $ 425 $ 387
========= ========= ========= =========