Cavco Industries Inc., a builder of manufactured housing and park model RVs, reported a 22.5% increase in sales its fourth quarter, ended March 31, 2018.
• Net revenue totaled $242.5 million compared with $198 million a year ago. The increase was the result of higher home prices and sales volume.
• Income before income taxes was $30.7 million, an 86.1% increase over $16.5 million the previous year. Current quarter results include $4.5 million of other income from gains realized in the sale of corporate investments.
• Net income grew 102.8% to $22.1 million compared to $10.9 million.
• Net income per share, based on basic and diluted weighted average shares outstanding, was $2.45 and $2.40, respectively, versus $1.21 and $1.19.
• Net revenue was $871.2 million, 12.6% higher than $773.8 million a year ago. The increase was primarily from a larger proportion of higher priced homes sold and improved home sales volume.
• Income before income taxes increased 42% to $78.5 million as compared to $55.3 million a year ago.
• Net income was $61.5 million, up 61.8% from $38 million a year ago.
• Net income per share, based on basic and diluted weighted average shares outstanding, was $6.82 and $6.68, respectively, versus basic and diluted net income per share of $4.23 and $4.17, respectively.
Chairman, President and CEO Joseph Stegmayer said, “We were pleased to complete the fiscal year with improved income from operations and growth in product sales. Fourth-quarter gross profit as a percentage of revenue improved from home sales prices gradually increasing throughout the year to address rapidly rising material and labor input costs. Still, we work to keep prices competitive and affordable through efficient factory production processes and cost controls. We are also focused on improving production workforce size and productivity to raise home building levels further.”
Stegmayer continued, “Fiscal year 2019 begins with optimism about demand for housing as home ownership rates, currently at a low 64.2%, are reported to be trending higher. With housing prices and rental rates also on the rise, we believe systems-built housing will be an increasingly sought after option for affordable living.”
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