Cavco 3Q Financials Repeat Prior-Year Results
Cavco Industries Inc.’s financials for the third quarter of its fiscal year 2013, ended Dec. 29, 2012, mirrored results from the year prior.
Sales for the third quarter totaled $114.6 million compared to $114.6 million for the third quarter of fiscal year 2012. Net income was $3 million compared to $3 million reported in the same quarter one year ago.
For the first nine months of fiscal 2013, sales totaled $343.5 million versus $343.6 million for the comparable prior year period. Net income attributable to Cavco stockholders for the first nine months was $3.6 million compared to $13.6 million last year. The company noted that the previous year’s income reflected one-half, or approximately $11 million, of the bargain purchase gain recognized from the Palm Harbor transaction, which occurred on April 23, 2011.
For the nine months, net income per share based on basic and diluted weighted average shares outstanding was 51 cents versus basic and diluted net income per share of $1.98 and $1.96, respectively, for the prior year period.
Referring to the fiscal 2013 third quarter results, Joseph Stegmayer, chairman, president and CEO, stated, “We are pleased with the continued contributions and progress of our acquired businesses. However, increasing homebuilding component and raw material costs, continued competitive pricing pressures, market demand for smaller and lower price-point homes and a higher income tax provision adversely affected our earnings during the quarter. The average sales price per home was approximately $50,100 during the third quarter of fiscal year 2013 compared to $53,200 during the third quarter last year, a 5.8% decrease. On a positive note, home sales increased this quarter to 2,065 homes, 4.7% higher than 1,972 homes sold during the same quarter last year.”
He concluded, “We continue to expand our presence in key markets in the United States and have made progress in other regions. Our financial services subsidiaries are broadening their product offerings to manufactured home buyers in current and new geographic areas, and continue to be solid contributors to our financial results. Rising apartment occupancy rates and higher rental costs should make affordable manufactured housing an increasingly attractive alternative for many people. As employment and consumer confidence levels improve, we anticipate rising demand for our homes.”
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