Attached files
| file | filename |
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| 8-K - 8-K - CAVCO INDUSTRIES INC. | cvco-2014329x8k.htm |
 | For additional information, contact: | |
Joseph Stegmayer Chairman and CEO joes@cavco.com | Daniel Urness CFO and Treasurer danu@cavco.com | |
News Release | Phone: 602-256-6263 On the Internet: www.cavco.com | |
FOR IMMEDIATE RELEASE
CAVCO INDUSTRIES REPORTS FISCAL 2014 FOURTH QUARTER AND YEAR END RESULTS
PHOENIX, May 22, 2014 – Cavco Industries, Inc. (NASDAQ: CVCO) today announced financial results for the fourth quarter and year ended March 29, 2014.
Net revenue for the fourth quarter of fiscal year 2014 totaled $131.2 million, up 20.6% from $108.8 million for the fourth quarter of fiscal year 2013. Net income was $4.2 million for the fiscal 2014 fourth quarter compared to $3.0 million reported in the same quarter one year ago.
Net income attributable to Cavco stockholders for the fiscal 2014 fourth quarter was $4.2 million, compared to $1.4 million reported in the same quarter of the prior year. The prior year amount was net of $1.6 million of net income attributable to redeemable noncontrolling interest. As previously reported, Cavco purchased the noncontrolling interest during the second quarter of fiscal year 2014 and Cavco now owns 100% of its consolidated subsidiaries; accordingly all of the fiscal 2014 fourth quarter consolidated net income is attributable to Cavco stockholders. Net income per share based on basic and diluted weighted average shares outstanding for the quarter ended March 29, 2014 was $0.48 and $0.47, respectively, versus basic and diluted net income per share of $0.20 for the quarter ended March 30, 2013.
For the fiscal year ended March 29, 2014, net revenue increased 17.9% to $533.3 million from $452.3 million for fiscal year 2013. Net income attributable to Cavco stockholders for fiscal year 2014 was $16.2 million compared to $5.0 million last year. For fiscal year 2014, net income per share based on basic and diluted weighted average shares outstanding was $1.97 and $1.94, respectively, versus basic and diluted net income per share of $0.71 for the prior year period.
Commenting on the results, Joseph Stegmayer, Chairman, President and Chief Executive Officer said, “The execution of our strategic plans during the past five years positioned Cavco to benefit from the quite modest improvement the manufactured home industry experienced this past year. Fiscal 2014's net income attributable to common shareholders was also positively influenced by this year’s buyout of all noncontrolling interests related to past acquisitions. We are pleased to report that our improved annual financial results were from increased earnings in both our factory-built housing and financial services segments as homes sold increased 13.6% from the prior year.”
Mr. Stegmayer continued, "We were gratified to finish our fiscal year by being named the 2014 Manufacturer of the Year by the Manufactured Housing Institute, as voted by our peers in the factory-built home industry's national trade organization. This is the fifth consecutive year that we have been so honored. We appreciate the recognition the award brings to our company as we share this distinction with our valued employees, customers and vendors."
Cavco’s management will hold a conference call to review these results tomorrow, May 23, 2014, at 12:00 NOON (Eastern Daylight 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. The Company is one of the largest producers 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. Cavco’s 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. Its insurance subsidiary, Standard Casualty, 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, CountryPlace, Standard Casualty and any future acquisition or attain the anticipated benefits of such acquisition; the risk that the acquisition of Fleetwood Homes, Palm Harbor, CountryPlace, Standard Casualty 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; our participation in certain wholesale and retail financing programs for the purchase of our products by industry retailers and consumers may expose us to additional risk of credit loss; governmental and regulatory disruption; information technology failures and data security breaches; 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 2013 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, except per share amounts)
March 29, 2014 | March 30, 2013 | ||||||
ASSETS | (Unaudited) | ||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 72,949 | $ | 47,823 | |||
Restricted cash, current | 7,213 | 6,773 | |||||
Accounts receivable, net | 20,766 | 18,710 | |||||
Short-term investments | 8,289 | 6,929 | |||||
Current portion of consumer loans receivable, net | 19,893 | 20,188 | |||||
Current portion of inventory finance notes receivable, net | 2,941 | 3,983 | |||||
Inventories | 69,729 | 68,805 | |||||
Assets held for sale | 1,130 | 4,180 | |||||
Prepaid expenses and other current assets | 12,623 | 10,267 | |||||
Deferred income taxes, current | 12,313 | 6,724 | |||||
Total current assets | 227,846 | 194,382 | |||||
Restricted cash | 1,188 | 1,179 | |||||
Investments | 17,165 | 10,769 | |||||
Consumer loans receivable, net | 78,391 | 90,802 | |||||
Inventory finance notes receivable, net | 18,367 | 18,967 | |||||
Property, plant and equipment, net | 48,227 | 46,223 | |||||
Goodwill and other intangibles, net | 78,055 | 79,435 | |||||
Deferred income taxes | — | 2,742 | |||||
Total assets | $ | 469,239 | $ | 444,499 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 15,287 | $ | 14,118 | |||
Accrued liabilities | 73,519 | 62,718 | |||||
Current portion of securitized financings | 10,187 | 10,169 | |||||
Total current liabilities | 98,993 | 87,005 | |||||
Securitized financings | 59,865 | 72,118 | |||||
Deferred income taxes | 19,948 | 16,492 | |||||
Redeemable noncontrolling interest | — | 91,994 | |||||
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 8,844,824 and 6,967,954 shares, respectively | 88 | 70 | |||||
Additional paid-in capital | 232,081 | 135,053 | |||||
Retained earnings | 57,828 | 41,590 | |||||
Accumulated other comprehensive income | 436 | 177 | |||||
Total stockholders’ equity | 290,433 | 176,890 | |||||
Total liabilities, redeemable noncontrolling interest and stockholders’ equity | $ | 469,239 | $ | 444,499 | |||
CAVCO INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Dollars in thousands, except per share amounts)
(Unaudited)
Three Months Ended | Year Ended | ||||||||||||||
March 29, 2014 | March 30, 2013 | March 29, 2014 | March 30, 2013 | ||||||||||||
Net revenue | $ | 131,209 | $ | 108,832 | $ | 533,339 | $ | 452,300 | |||||||
Cost of sales | 102,577 | 84,814 | 413,856 | 351,945 | |||||||||||
Gross profit | 28,632 | 24,018 | 119,483 | 100,355 | |||||||||||
Selling, general and administrative expenses | 21,357 | 18,913 | 87,938 | 79,313 | |||||||||||
Income from operations | 7,275 | 5,105 | 31,545 | 21,042 | |||||||||||
Interest expense | (1,174 | ) | (1,317 | ) | (4,845 | ) | (5,973 | ) | |||||||
Other income | 432 | 380 | 1,105 | 1,579 | |||||||||||
Income before income taxes | 6,533 | 4,168 | 27,805 | 16,648 | |||||||||||
Income tax expense | (2,323 | ) | (1,191 | ) | (9,099 | ) | (6,351 | ) | |||||||
Net income | 4,210 | 2,977 | 18,706 | 10,297 | |||||||||||
Less: net income attributable to redeemable noncontrolling interest | — | 1,585 | 2,468 | 5,334 | |||||||||||
Net income attributable to Cavco common stockholders | $ | 4,210 | $ | 1,392 | $ | 16,238 | $ | 4,963 | |||||||
Comprehensive income: | |||||||||||||||
Net income | $ | 4,210 | $ | 2,977 | $ | 18,706 | $ | 10,297 | |||||||
Unrealized gain on available-for-sale securities, net of tax | 272 | 250 | 82 | 238 | |||||||||||
Comprehensive income | 4,482 | 3,227 | 18,788 | 10,535 | |||||||||||
Comprehensive income attributable to redeemable noncontrolling interest | — | 1,710 | 2,392 | 5,453 | |||||||||||
Comprehensive income attributable to Cavco common stockholders | $ | 4,482 | $ | 1,517 | $ | 16,396 | $ | 5,082 | |||||||
Net income per share attributable to Cavco common stockholders: | |||||||||||||||
Basic | $ | 0.48 | $ | 0.20 | $ | 1.97 | $ | 0.71 | |||||||
Diluted | $ | 0.47 | $ | 0.20 | $ | 1.94 | $ | 0.71 | |||||||
Weighted average shares outstanding: | |||||||||||||||
Basic | 8,841,943 | 6,967,954 | 8,262,688 | 6,956,706 | |||||||||||
Diluted | 9,019,603 | 7,040,916 | 8,379,024 | 7,027,204 | |||||||||||
CAVCO INDUSTRIES, INC.
OTHER OPERATING DATA
(Dollars in thousands)
(Unaudited)
Three Months Ended | Year Ended | ||||||||||||||
March 29, 2014 | March 30, 2013 | March 29, 2014 | March 30, 2013 | ||||||||||||
Net revenue: | |||||||||||||||
Factory-built housing | $ | 119,548 | $ | 97,272 | $ | 485,897 | $ | 408,094 | |||||||
Financial services | 11,661 | 11,560 | 47,442 | 44,206 | |||||||||||
Total net revenue | $ | 131,209 | $ | 108,832 | $ | 533,339 | $ | 452,300 | |||||||
Capital expenditures | $ | 594 | $ | 192 | $ | 2,265 | $ | 755 | |||||||
Depreciation | $ | 691 | $ | 622 | $ | 2,620 | $ | 2,530 | |||||||
Amortization of other intangibles | $ | 345 | $ | 344 | $ | 1,380 | $ | 1,480 | |||||||
Factory-built homes sold: | |||||||||||||||
by Company owned retail sales centers | 513 | 464 | 2,127 | 1,933 | |||||||||||
to independent retailers, builders, communities & developers | 1,810 | 1,712 | 7,410 | 6,465 | |||||||||||
Total factory-built homes sold | 2,323 | 2,176 | 9,537 | 8,398 | |||||||||||
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