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Dec 26, 2020
Cavco Q3 2021 Earnings Report
Cavco Industries' financial performance increased slightly due to revenue growth and managed expenses.
Key Takeaways
Cavco Industries reported a 5.5% increase in net revenue to $288.8 million for the third quarter of fiscal year 2021. Net income decreased by 5.7% to $19.7 million, with diluted net income per share at $2.12. The factory-built housing segment saw revenue increase, offset by lower home sales volume, while the financial services segment also experienced revenue growth.
Net revenue increased by 5.5% to $288.8 million compared to the same quarter last year.
Factory-built housing segment revenue increased by 5.3%, driven by higher home selling prices.
Financial services segment revenue increased by 8.4%, primarily due to unrealized gains on marketable equity investments.
Order backlogs increased by 310% to $472 million due to strong sales order activity.
Revenue by Segment
Forward Guidance
The company is experiencing extraordinary demand for its products and is focused on increasing production to meet the rising order backlogs.
Positive Outlook
- Pent-up demand driven by favorable demographics and housing supply shortage.
- Historically low home-loan interest rates.
- Plants are increasing production under challenging conditions.
- Utilization rate rose to approximately 75% during the third fiscal quarter from 65% in the second fiscal quarter.
- People across Cavco are focused on making a difference for homebuyers.
Challenges Ahead
- Operational efficiencies declined due to managing higher and largely unpredictable factory employee absenteeism.
- Hiring challenges.
- Building material supply shortages.
- Increased orders outpaced the challenging production environment during the quarter.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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