Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - CAVCO INDUSTRIES INC. | c11537e8vk.htm |
Exhibit 99.1
|
For additional information, contact: | |
| Joseph Stegmayer | ||
| Chairman and CEO | ||
| Phone: 602-256-6263 | ||
| joes@cavco.com | ||
| On the Internet: www.cavco.com |
FOR IMMEDIATE RELEASE
CAVCO INDUSTRIES REPORTS FISCAL THIRD QUARTER RESULTS
PHOENIX, January 27, 2011 — Cavco Industries, Inc. (NASDAQ: CVCO) today announced financial
results for the third quarter and first nine months of its fiscal year 2011 ended December 31,
2010.
Net sales for the third quarter of fiscal 2011 totaled $39,612,000, up 9% from $36,369,000 for
the third quarter of fiscal year 2010. Net income attributable to Cavco stockholders for the
fiscal 2011 third quarter was $24,000 compared to a net loss of $1,030,000 reported in the same
quarter one year ago. Net income per share based on basic and diluted weighted average shares
outstanding was four-tenths of one cent, versus basic and diluted net loss per share of $0.16 last
year.
For the first nine months of fiscal 2011, net sales increased 68% to $133,005,000 from
$79,341,000 for the first nine months of fiscal 2010. The prior year period includes the financial
results of Fleetwood Homes since August 17, 2009, the date of acquisition, as previously disclosed.
Net income attributable to Cavco stockholders for the first nine months of fiscal 2011 was
$1,222,000 compared to a net loss of $2,642,000 last year. For the nine months ended December 31,
2010, net income per share based on basic and diluted weighted average shares outstanding was $0.19
and $0.18, respectively, versus basic and diluted net loss per share of $0.41 for the prior year
period.
“Geographic and product-line diversification favorably impacted results during the third
quarter compared to the same quarter in the prior year. However, the well-publicized and ongoing
housing industry challenges continued to negatively affect our operations. Compared to the second
quarter of fiscal year 2011, revenue and backlogs were reduced by low incoming order rates, which
caused production inefficiencies unfavorably impacting gross margins. Margins were also pressured
by pricing competition and certain raw material cost increases. Currently, our plants have
substantial operating leverage and are well-positioned to benefit from any improvement in capacity
utilization,” said Dan Urness, Vice President and Chief Financial Officer.
During the fiscal quarter ended December 31, 2010 and as previously reported, Fleetwood Homes,
Inc., a subsidiary owned 50% by Cavco and 50% by Third Avenue Value Fund (TAVFX), provided a $50
million debtor-in-possession credit facility to Palm Harbor Homes, Inc. Palm Harbor is a
manufacturer and marketer of factory-built housing and a provider of related consumer financing and
insurance products. Palm Harbor and certain of its subsidiaries filed for chapter 11 bankruptcy
protection on November 29, 2010. Subsequently, Fleetwood Homes became the court-approved “stalking
horse” bidder to acquire substantially all of Palm Harbor’s assets and to assume certain
liabilities. Fleetwood Homes’ $57.5 million bid is subject to customary conditions to closing,
certain post-closing adjustments, and bankruptcy court approval. The asset purchase transaction is
expected to be conducted pursuant to an auction process under section 363 of the U.S. Bankruptcy
Code.
“We are pleased to have this opportunity to partner with Palm Harbor Homes and look forward to
a successful outcome of this process. Our mutual intention is to help Palm Harbor continue its
heritage of providing quality home building and retailing, financing, insurance products and
outstanding customer service,” said Joseph Stegmayer, Chairman, President and Chief Executive
Officer. “Meanwhile, we continue to aggressively pursue all markets for systems-built buildings
from our ten substantially underutilized factories across the country,” Mr. Stegmayer concluded.
Cavco’s senior management will hold a conference call to review these results tomorrow,
January 28, 2011, at 11:00 AM (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, is one of the largest producers of
HUD code manufactured homes in the United States, based on reported wholesale shipments of both
Cavco and Fleetwood Homes. 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 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; our ability to complete the acquisition of the Palm
Harbor assets and certain liabilities and 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; 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 2010 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.
(more)
CAVCO INDUSTRIES, INC.
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
| December 31, | March 31, | |||||||
| 2010 | 2010 | |||||||
| (Unaudited) | ||||||||
ASSETS |
||||||||
Current assets |
||||||||
Cash and cash equivalents |
$ | 49,162 | $ | 74,988 | ||||
Restricted cash |
213 | 227 | ||||||
Accounts receivable |
4,457 | 9,428 | ||||||
Inventories |
16,804 | 15,751 | ||||||
Prepaid expenses and other current assets |
6,604 | 6,278 | ||||||
Debtor-in-possession note receivable |
38,516 | — | ||||||
Deferred income taxes |
5,223 | 6,240 | ||||||
Total current assets |
120,979 | 112,912 | ||||||
Property, plant and equipment, at cost: |
||||||||
Land |
16,194 | 16,194 | ||||||
Buildings and improvements |
20,275 | 20,345 | ||||||
Machinery and equipment |
11,458 | 10,983 | ||||||
| 47,927 | 47,522 | |||||||
Accumulated depreciation |
(10,896 | ) | (9,933 | ) | ||||
| 37,031 | 37,589 | |||||||
Inventory finance notes receivable, net |
18,413 | 12,929 | ||||||
Goodwill and other intangibles, net |
68,872 | 68,912 | ||||||
Total assets |
$ | 245,295 | $ | 232,342 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
||||||||
Current liabilities |
||||||||
Accounts payable |
$ | 2,318 | $ | 5,375 | ||||
Accrued liabilities |
25,972 | 26,919 | ||||||
Noncontrolling interest note payable |
14,000 | — | ||||||
Total current liabilities |
42,290 | 32,294 | ||||||
Deferred income taxes |
18,412 | 19,694 | ||||||
Commitments and contingencies |
||||||||
Cavco Industries, Inc. 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 6,817,606 and 6,541,684 shares, respectively |
68 | 65 | ||||||
Additional paid-in capital |
129,049 | 127,152 | ||||||
Retained earnings |
19,781 | 18,559 | ||||||
Total Cavco Industries, Inc. stockholders’ equity |
148,898 | 145,776 | ||||||
Noncontrolling interest |
35,695 | 34,578 | ||||||
Total equity |
184,593 | 180,354 | ||||||
Total liabilities and stockholders’ equity |
$ | 245,295 | $ | 232,342 | ||||
(more)
CAVCO INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share amounts)
(Unaudited)
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share amounts)
(Unaudited)
| Three Months Ended | Nine Months Ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| 2010 | 2009 | 2010 | 2009 | |||||||||||||
Net sales |
$ | 39,612 | $ | 36,369 | $ | 133,005 | $ | 79,341 | ||||||||
Cost of sales |
34,269 | 33,106 | 114,042 | 71,836 | ||||||||||||
Gross profit |
5,343 | 3,263 | 18,963 | 7,505 | ||||||||||||
Selling, general and administrative expenses |
5,275 | 4,954 | 16,000 | 11,964 | ||||||||||||
Income (loss) from operations |
68 | (1,691 | ) | 2,963 | (4,459 | ) | ||||||||||
Interest income |
511 | 52 | 957 | 108 | ||||||||||||
Income (loss) before income taxes |
579 | (1,639 | ) | 3,920 | (4,351 | ) | ||||||||||
Income tax (expense) benefit |
(289 | ) | 471 | (1,581 | ) | 1,512 | ||||||||||
Net income (loss) |
290 | (1,168 | ) | 2,339 | (2,839 | ) | ||||||||||
Less: net income (loss) attributable to
noncontrolling interest |
266 | (138 | ) | 1,117 | (197 | ) | ||||||||||
Net income (loss) attributable to Cavco
Industries, Inc. common stockholders |
$ | 24 | $ | (1,030 | ) | $ | 1,222 | $ | (2,642 | ) | ||||||
Net income (loss) per share attributable to Cavco
Industries, Inc. common stockholders: |
||||||||||||||||
Basic |
$ | 0.00 | $ | (0.16 | ) | $ | 0.19 | $ | (0.41 | ) | ||||||
Diluted |
$ | 0.00 | $ | (0.16 | ) | $ | 0.18 | $ | (0.41 | ) | ||||||
Weighted average shares outstanding: |
||||||||||||||||
Basic |
6,651,928 | 6,511,184 | 6,578,732 | 6,508,552 | ||||||||||||
Diluted |
6,841,802 | 6,511,184 | 6,860,385 | 6,508,552 | ||||||||||||
(more)
CAVCO INDUSTRIES, INC.
OTHER OPERATING DATA — CONTINUING OPERATIONS
(Dollars in thousands, except average sales price amounts)
(Unaudited)
OTHER OPERATING DATA — CONTINUING OPERATIONS
(Dollars in thousands, except average sales price amounts)
(Unaudited)
| Three Months Ended | Nine Months Ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| 2010 | 2009 | 2010 | 2009 | |||||||||||||
Net sales |
||||||||||||||||
Manufacturing |
$ | 38,927 | $ | 35,323 | $ | 128,976 | $ | 77,025 | ||||||||
Retail |
2,073 | 1,999 | 7,633 | 6,122 | ||||||||||||
Less: Intercompany |
(1,388 | ) | (953 | ) | (3,604 | ) | (3,806 | ) | ||||||||
Net sales |
$ | 39,612 | $ | 36,369 | $ | 133,005 | $ | 79,341 | ||||||||
Floors sold — manufacturing |
1,745 | 1,565 | 5,713 | 3,280 | ||||||||||||
Average sales price per floor — manufacturing |
$ | 22,308 | $ | 22,571 | $ | 22,576 | $ | 23,483 | ||||||||
Homes sold — manufacturing |
1,140 | 1,026 | 3,668 | 2,184 | ||||||||||||
Average sales price per home — manufacturing |
$ | 34,146 | $ | 34,428 | $ | 35,162 | $ | 35,268 | ||||||||
Homes sold — retail |
24 | 29 | 91 | 88 | ||||||||||||
Capital expenditures |
$ | 221 | $ | 21 | $ | 680 | $ | 178 | ||||||||
Depreciation |
$ | 331 | $ | 334 | $ | 984 | $ | 843 | ||||||||
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