Cavco Industries Inc. today (Nov. 1) announced financial results for the second quarter and first six months ended Sept. 30, of its fiscal year 2013.
Net sales for the second quarter of fiscal 2013 totaled $110 million, down 15.3% from $130 million for the second quarter of fiscal year 2012. Net income for the fiscal 2013 second quarter was $2.7 million compared to $3.2 million reported in the same quarter one year ago.
Net income per share based on basic and diluted weighted average shares outstanding for the quarter was 18 cents, versus basic and diluted net income per share the previous year of 24 cents.
For the first six months of fiscal 2013, net sales totaled $228.8 million versus $229 million for the comparable prior year period. Net income for the first half of fiscal 2013 was $2.1 million compared to $11.9 million last year. Net income for the six months ended Sept. 30, 2011, included one-half (or approximately $11 million) of the bargain purchase gain recognized from the Palm Harbor transaction, which closed on April 23, 2011. This bargain purchase gain allocation was consistent with Cavco’s ownership percentage of Palm Harbor.
For the six months ended Sept. 30, 2012, net income per share based on basic and diluted weighted average shares outstanding was 30 cents versus basic and diluted net income per share of $1.73 and $1.72, respectively, for the prior year period.
Referring to the fiscal 2013 second quarter results, Joseph Stegmayer, chairman, president and CEO, said, “Net sales were lower for the second quarter of fiscal year 2013 compared to the same quarter in the prior year for various reasons. These include fewer homes sold this quarter, lower average sales prices from a product mix skewed toward lower price-point homes, and competitive pricing pressures. Adversely impacting the number of homes sold was a larger proportion of internally financed wholesale sales, up 49.8% this quarter versus the second quarter last year, resulting in delayed recognition of the related revenue, consistent with applicable accounting principles. The company also modestly grew the proportion of factory sales to company-owned stores, which defers revenue recognition until the home sale process to the consumer is complete.”