Manufactured housing and park model builder Cavco Industries Inc. Thursday (Nov. 5) reported a 2% drop in sales and a net loss for the second quarter ending Sept. 30. The Phoenix, Ariz-based builder said sales totaled $29.4 million, down from $30 million a year ago.
Net loss attributable to Cavco stockholders for the quarter was $163,000 compared to net income of $518,000 reported in the same quarter one year ago. During the quarter Cavco incurred $711,000 in non-recurring acquisition related costs for the purchase of the Fleetwood Homes assets.
For the first six months of fiscal 2010, net sales decreased 34% to $42.9 million from $65.5 million for the comparable prior year period. Net loss attributable to Cavco stockholders for the first half of fiscal 2010 was $1.6 million compared to net income of $1.37 million last year.
As previously reported, Cavco and an investment partner, Third Avenue Value Fund, acquired certain manufactured housing assets of Fleetwood Enterprises Inc. on Aug. 17 through their jointly owned corporation, FH Holding Inc., now named Fleetwood Homes Inc.
The transaction included seven manufactured housing plants and all related equipment, accounts receivable, inventory, certain trademarks and trade names, intellectual property, and specified contracts and leases and assumed express warranty liabilities pertaining to certain of the previous operations. The purchase price of the transaction was $25.8 million and was paid in cash by the subsidiary. Neither Cavco nor Fleetwood Homes incurred debt in connection with the purchase or subsequent operations.
Financial information for Fleetwood Homes is included in the Cavco consolidated financial statements since the date of acquisition.