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Dec 31, 2022
Cavco Q3 2023 Earnings Report
Cavco's financial performance reflected growth in net revenue and a decrease in backlog, amidst a shifting market influenced by rising interest rates and economic uncertainty.
Key Takeaways
Cavco Industries reported a 16.0% increase in net revenue to $501 million for the third quarter of fiscal year 2023, compared to $432 million in the prior year. Income before income taxes increased by 29% to $76 million. Net income per diluted share was $6.66, compared to $8.57 in the prior year, which included a favorable benefit from energy efficient home tax credits. Backlogs decreased to $427 million. The company also completed the acquisition of Solitaire Homes subsequent to the quarter end.
Net revenue increased by 16.0% to $501 million compared to the prior year.
Income before income taxes rose by 29% to $76 million.
Net income per diluted share was $6.66, down from $8.57 in the prior year due to a one-time tax benefit in the prior year.
Backlogs decreased to $427 million, reflecting lower home order rates.
Cavco
Cavco
Cavco Revenue by Segment
Revenue by Segment
Factory-Built Housing Revenue
CapyFin.comFinancial Services Revenue
CapyFin.com Forward Guidance
Cavco remains focused on providing quality affordable homes and is well-positioned for growth, leveraging a strong balance sheet and the recent acquisition of Solitaire Homes.
Positive Outlook
- The team continues to deliver outstanding performance.
- Manufacturing and retail operators are staying nimble and tightly managing margins.
- The balance sheet remains strong with over $280 million in cash after the acquisition of Solitaire Homes.
- The company remains focused on providing quality affordable homes.
- The company is well-positioned to continue growing and helping more families achieve the dream of home ownership.
Challenges Ahead
- Rising interest rates.
- High inflation.
- Uncertainty in the general economy.
- The market has clearly shifted over the past few quarters.
- Order rates are down from the extreme highs of 2020-2021.
Revenue & Expenses
Visualization of income flow from segment revenue to net income