Cavco Q2 2022 Earnings Report
Key Takeaways
Cavco Industries reported record net revenue of $360 million and net income of $38 million for the second fiscal quarter ended October 2, 2021. The company's gross profit as a percentage of net revenue increased to 25.0%, with factory-built housing gross profit at 24.1%. Earnings per diluted share was $4.06, and backlogs reached $1.1 billion.
Record breaking Net revenue and Net income of $360 million and $38 million, respectively
Gross profit as a percentage of Net revenue increased to 25.0% with factory-built housing gross profit as a percentage of Net revenue at 24.1%
Earnings per diluted share was $4.06 compared to $1.62 in last year's quarter
Backlogs were $1.1 billion at the end of the quarter, up $315 million from three months earlier. Of this increase, Commodore contributed $279 million
Cavco
Cavco
Cavco Revenue by Segment
Forward Guidance
Cavco continues to monitor housing demand and production updates. Housing demand remains strong as well-qualified individuals continue pursuing home-ownership, bolstered by the low home loan interest rates. Home order rates have moderated from the extreme highs we saw the past few quarters, but still remain above pre-COVID rates, which were considered to be strong.
Positive Outlook
- Housing demand remains strong as well-qualified individuals continue pursuing home-ownership, bolstered by the low home loan interest rates.
- Home order rates have moderated from the extreme highs we saw the past few quarters, but still remain above pre-COVID rates, which were considered to be strong.
- Beneficial geographic addition to Cavco's footprint with strong operations in the Northeast/Midwest/Mid-Atlantic markets, which provide a platform for future growth
- Strong and experienced management team that has implemented manufacturing innovations with reapplication potential across Cavco's operations
- Potential for cost and revenue synergies
Challenges Ahead
- We continue to experience hiring challenges
- Higher and largely unpredictable factory employee absenteeism
- Inefficiencies from building material supply disruptions
- Experienced permitting delays and now expect to begin operations in mid-calendar year 2022.
- Most other product prices have increased significantly.
Revenue & Expenses
Visualization of income flow from segment revenue to net income