Manufactured Housing and park model RV builder Cavco Industries Inc. reported a 9.4% gain in revenue for its fiscal third quarter, ended Dec. 30.
The company noted that on April 3 it completed the acquisition of Lexington Homes, Inc. which operates a manufactured housing plant in Lexington, Miss. Since the acquisition date, the results from this new business are included in Cavco’s consolidated financial statements.
Financial highlights include the following:
- Net revenue for the third quarter of fiscal year 2018 totaled $221.4 million, up 9.4% from $202.3 million for the third quarter of fiscal year 2017. Net revenue for the first nine months of fiscal 2018 was $628.7 million, up 9.2% from $575.8 million for the comparable prior year period. The increase was from improved home sales volume and a larger proportion of higher priced homes sold.
- Net income was $21.4 million for the third quarter of fiscal year 2018, compared to net income of $12.3 million in the same quarter of the prior year, a 74.0% increase. For the nine months ended December 30, 2017, net income was $39.4 million, up 45.4% from net income of $27.1 million in the year-ago period.
- Income before income taxes was $23.7 million, a 37% increase from $17.3 million in the comparable quarter last year. For the first nine months, income before income taxes increased 23.2% to $47.8 million from $38.8 million in the comparable period of the prior year. The improvements were from increased home sales volume and pricing, a $3.4 million favorable dispute settlement resolution during the third fiscal quarter, and improved earnings in the financial services segment.
- Net income per diluted share for the third quarter was $2.33 compared to $1.35 for the comparable quarter last year. Net income per diluted share for the nine months was $4.28 versus $2.98 for the prior nine month period.
Chairman, President and Chief Executive Officer Joseph Stegmayer, stated, “We are pleased with this quarter’s results which were aided by improved order rates during traditionally slower holiday months. Strong new single-family housing demand continued to drive opportunities for increased unit sales volume. In response, our manufacturing facilities raised production levels by increasing our workforce size and capabilities.”
He continued, “The constrained labor market coupled with continued cost increases for raw materials remain key challenges to further increasing production rates and financial performance. However, our home production systems utilize labor and materials more efficiently than many other home construction alternatives. The company has the ability to raise sales prices of its home offerings in response to rising input costs, although larger-than-normal home order backlogs have caused some delay in fully realizing the benefits of higher home product pricing.”