Cavco Q1 2023 Earnings Report
Key Takeaways
Cavco Industries reported record-breaking net revenue of $588 million and net income of $60 million for the first quarter of fiscal year 2023. The company's factory utilization increased to over 85%, and backlogs reached $1.0 billion. Cavco also completed the acquisition of a manufacturing facility in Hamlet, North Carolina.
Net revenue reached a record $588 million, and net income was $60 million.
Gross profit as a percentage of net revenue increased to 24.6%.
Earnings per diluted share were $6.63, up from $2.92 in the previous year's first quarter.
Backlogs totaled $1.0 billion, an increase of $206 million year-over-year.
Cavco
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Cavco Revenue by Segment
Forward Guidance
Cavco is well-positioned in an environment of rising interest rates and general inflation, with the benefits of factory-built solutions and the need for what they do never been greater.
Positive Outlook
- Achieving greater than 85% capacity utilization in production plants.
- Acquisition of Commodore contributed significantly to revenue.
- Efforts in product simplification and production staffing improvement increased total average plant capacity utilization.
- Settlement in principle with the staff of the Securities and Exchange Commission.
- Progress on the development of new Glendale, Arizona facility that will focus on park model production.
Challenges Ahead
- Home order rates have moderated from the extreme highs.
- Financial services segment Net revenue decreased primarily due to unrealized losses on marketable equity securities.
- Higher weather related claims in the financial services segment.
- Expenses incurred in engaging third-party consultants in relation to the non-recurring energy efficient home tax credits.
- Legal and other expense related to the SEC inquiry, net of recovery.
Revenue & Expenses
Visualization of income flow from segment revenue to net income