Cavco Industries Reports Fiscal First Quarter Results

PHOENIX, Aug. 2, 2012 (GLOBE NEWSWIRE) -- Cavco Industries, Inc. (Nasdaq:CVCO) today announced financial results for the first quarter ended June 30, 2012 of its fiscal year 2013.

Net sales for the first quarter of fiscal 2013 totaled $118,781,000, up 20.0% from $98,981,000 for the first quarter of fiscal year 2012. This quarter's results are compared to the prior year quarter, which included only 68 days of post-Palm Harbor acquisition activity, as that transaction closed on April 23, 2011.

Net income for the fiscal 2013 first quarter was $1,618,000, compared to $20,688,000 reported in the same quarter one year ago. As previously reported, included in net income for the first quarter of fiscal 2012 was a gain on bargain purchase of $22,009,000, as adjusted, resulting from the Palm Harbor transaction, calculated in accordance with the accounting standards for business combinations.

Net income attributable to Cavco stockholders for the fiscal 2013 first quarter was $860,000 compared to net income of $10,222,000 reported in the same quarter one year ago. Net income attributable to Cavco stockholders for the quarter ended June 30, 2011 includes one half of the bargain purchase gain recognized, consistent with Cavco's ownership percentage of Palm Harbor. Net income per share based on basic and diluted weighted average shares outstanding for the quarter ended June 30, 2012 was $0.12, versus basic and diluted net income per share for the quarter ended June 30, 2011, including the effect of the bargain purchase gain, of $1.49 and $1.48, respectively.

Referring to the quarter results, Dan Urness, Vice President and Chief Financial Officer said, "Gross profit as a percentage of net sales increased 4.0% to 20.3% for the first quarter of fiscal 2013 versus 16.3% for the same quarter in the prior year. The increase is primarily attributable to having the full quarter benefit of the generally higher margin Palm Harbor retail and finance businesses versus a partial quarter last year, given the transaction closing date of April 23, 2011. We also benefited from production overhead leverage on higher revenue. The margin improvement was partially offset by a larger mix of lower price-point homes."

Commenting on the first quarter of fiscal year 2013, Joseph Stegmayer, Chairman, President and Chief Executive Officer said, "Manufactured home industry unit shipments increased 24.8% during the period from January to May 2012 compared to the same period in the prior year. While welcomed, the percent improvement is calculated from historically low industry shipment levels. Intense competition for home sales within our underutilized industry and ongoing economic turmoil continue to be challenging. In order to succeed in this difficult market environment, our homebuilding activities remain focused on producing high quality homes that incorporate flexible housing designs to fit homebuyer interests, establishing and maintaining strengths in niche market areas and striving to provide excellent service after the sale of each home."

Cavco's management will hold a conference call to review these results tomorrow, August 3, 2012, 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. An archive of the webcast and presentation will be available for 90 days at www.cavco.com under the Investor Relations link.

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 the second largest producer of manufactured homes in the United States, based on reported wholesale shipments, marketed under a variety of brand names including Cavco Homes, Fleetwood Homes and Palm Harbor Homes. The Company is also a leading producer of park model homes, vacation cabins, and systems-built commercial structures, as well as modular homes built primarily under the Nationwide Homes brand. Our mortgage subsidiary, CountryPlace, is an approved Fannie Mae and Ginnie Mae seller/servicer and offers conforming mortgages to purchasers of factory-built and site-built homes. Our insurance subsidiary, Standard, provides property and casualty insurance to owners of manufactured homes.

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 deterioration in economic conditions and continued turmoil in the credit markets; 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; unfavorable zoning ordinances; increased costs of healthcare benefits to employees; our ability to successfully integrate Fleetwood Homes, Palm Harbor, and any future acquisition or attain the anticipated benefits of such acquisition; the risk that the acquisition of Fleetwood Homes, Palm Harbor, and any future acquisition may adversely impact our liquidity; expansion of retail and manufacturing businesses and entry into new lines of business, namely manufactured housing consumer finance and insurance, through the Palm Harbor transaction; our participation in certain wholesale financing programs for the purchase of our products by industry retailers may expose us to additional risk of credit loss; 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 2012 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.

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