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Sep 26, 2020
Cavco Q2 2021 Earnings Report
Cavco's financial performance declined due to COVID-19 related production inefficiencies and higher weather-related claims, despite strong order rates.
Key Takeaways
Cavco Industries reported a decrease in net revenue and net income for the second quarter of fiscal year 2021, primarily due to production inefficiencies related to COVID-19 and higher weather-related claims in the financial services segment. However, sales order activity improved, leading to a significant increase in order backlogs.
Net revenue decreased by 4.0% to $258.0 million compared to the same quarter last year.
Net income decreased by 28.2% to $15.0 million compared to the same quarter of the prior year.
Order backlogs increased by 134% to $321 million due to strong incoming order rates.
The company announced a new $100 million stock repurchase program.
Revenue by Segment
Forward Guidance
The company is working to increase production by addressing significant labor challenges. Priorities for capital remain unchanged and the company have the opportunity to return value directly to our stockholders without compromising our ability to create long-term value through investment. The company remains committed to growth, both organically and through acquisitions
Positive Outlook
- Sustained and unprecedented level of orders.
- Demand is clearly indicative of the long-term shortage of affordable housing.
- Demand has been enabled by record low interest rates.
- The company demonstrated ability to generate cash
- Strong financial position continues to support our strategic direction.
Challenges Ahead
- Ability to produce homes has been hampered by labor challenges,
- Ability to produce homes has been hampered by supply challenges.
- Operational efficiencies declined from adjusting home production processes to comply with health guidelines
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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