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Jan 01, 2022
Cavco Q3 2022 Earnings Report
Cavco reported record results driven by strong demand and increased production efficiency.
Key Takeaways
Cavco Industries reported record third quarter results for fiscal year 2022, with net revenue reaching $432 million and net income at $80 million. The results were positively impacted by a $29.9 million net benefit from estimated non-recurring tax credits. Factory utilization improved to approximately 80%, and backlogs remained high at $1.1 billion.
Net revenue and net income reached record levels of $432 million and $80 million, respectively.
Gross profit as a percentage of net revenue increased to 26.7%.
Earnings per diluted share was $8.57, including a $3.23 impact from non-recurring energy efficient home tax credits.
Backlogs were $1.1 billion at the end of the quarter.
Cavco
Cavco
Cavco Revenue by Segment
Revenue by Segment
Factory-Built Housing Revenue
CapyFin.comFinancial Services Revenue
CapyFin.com Forward Guidance
Cavco is making progress on the new Glendale, Arizona facility that focuses on park model production and is expected to begin operations in mid-calendar year 2022. Housing demand remains strong.
Positive Outlook
- Housing demand remains strong.
- Home order rates have moderated from the extreme highs we saw the past few quarters, but still remain above pre-COVID rates.
- Backlogs at January 1, 2022 were $1.1 billion, consistent with second fiscal quarter of 2022 and up $633 million, or 134.1%, compared to $472 million at December 26, 2020.
- The year over year increase includes $277 million attributable to Commodore.
- Total average plant capacity utilization rate was approximately 80% during the third fiscal quarter of 2022, back to pre-pandemic levels and improved from approximately 75% during the second fiscal quarter of 2022 and the third fiscal quarter of 2021.
Challenges Ahead
- Continue to experience hiring challenges.
- Higher and largely unpredictable factory employee absenteeism.
- Inefficiencies from building material supply disruptions.
- Home order rates have moderated from the extreme highs we saw the past few quarters
- The credit expired in its current format as of December 31, 2021.
Revenue & Expenses
Visualization of income flow from segment revenue to net income