Cavco Q4 2022 Earnings Report
Key Takeaways
Cavco Industries announced financial results for the fourth quarter and fiscal year ended April 2, 2022. The company reported record-breaking net revenue of $505 million and net income of $54 million for the quarter. Earnings per diluted share was $5.80, compared to $2.71 in the prior year's fourth quarter.
Net revenue and Net income reached record levels at $505 million and $54 million, respectively.
Gross profit as a percentage of Net revenue increased to 25.6%.
Earnings per diluted share was $5.80 compared to $2.71 in the prior year's fourth quarter.
Backlogs were $1.1 billion at April 2, 2022, compared to $603 million at April 3, 2021.
Cavco
Cavco
Forward Guidance
Demand for our homes continues to be strong, despite the recent rise in interest rates. As an affordable home builder, we can provide the potential of home ownership that many people aspire to achieve. With these rising interest rates and other inflationary pressures, we believe that our products become more attractive to other forms of home ownership. That is why we continually strive to increase the number of homes we build and deliver on our commitment to provide high-quality, energy-efficient and affordable homes to our customers.
Positive Outlook
- Housing demand remains strong as qualified individuals continue pursuing affordable home-ownership.
- Home order rates have moderated from the extreme highs we saw during the summer of 2020 to the summer of 2021, but still remain above pre-pandemic rates, which we considered to be strong.
- Our backlogs at April 2, 2022 were $1.1 billion, compared to $603 million at April 3, 2021.
- We have reduced our total open production positions by nearly 25% over the past year.
- Total average plant capacity utilization rate to exceeding 80% during the fourth fiscal quarter of 2022, which is above pre-pandemic levels.
Challenges Ahead
- We continue to experience hiring challenges.
- We continue to experience other inefficiencies from building material supply disruptions.
- Financial services segment Net revenue decreased primarily due to lower interest income earned on the acquired consumer loan portfolios that continue to amortize.
- Financial services segment Net revenue decreased primarily due to lower unrealized gains on marketable equity securities in the insurance subsidiary's portfolio.
- Financial services segment Net revenue decreased primarily due to lower volume in home loan sales.