Cavco Industries Inc. announced Thursday (Jan. 30) that net revenue was up 17.1% for the third quarter of fiscal 2020, according to a press release.
Net revenue for the third quarter of fiscal year 2020 was $273.7 million, up 17.1% from $233.7 million for the third quarter of fiscal year 2019. The increase was from improved home sales volume, including homes sold from the new Destiny acquisition, changes in product mix and higher home selling prices compared to the prior year, stated Cavco officials.
Net revenue for the first nine months of fiscal 2020 was $806.4 million, an 11.8% increase from $721.6 million in the comparable prior-year period.
On Aug. 2, Cavco completed the acquisition of Destiny Homes, which operates a manufactured and modular housing factory in Moultrie, Ga.
Financial highlights include the following:
• Income from operations increased 26.4% to $23.0 million for the third quarter of fiscal year 2020 compared to $18.2 million in the same quarter last year. The improvement was the result of sales increases in the factory-built housing segment and decreased weather-related claims volume in the financial services segment compared to the same period in the prior year. The increase was partially offset by greater amortization of additional director and officer insurance premiums, as the policies were purchased in the last month of the prior-year period, as well as greater sales commissions and incentive compensation. Income from operations for the first nine months of fiscal 2020 was $70.4 million, a 17.7% increase from $59.8 million in the comparable prior-year period.
• Net income was $20.9 million for the third quarter of fiscal year 2020, compared to net income of $13.4 million in the same quarter of the prior year, a 56% increase. These results were further benefited by greater unrealized gains on corporate equity investments compared to the prior-year quarter, lower effective income tax rates largely from tax credits enacted during the period and lower interest expense resulting from securitized bond repurchases earlier in the fiscal year. For the nine months ended Dec. 28, net income was $63.1 million, up 29.6% from $48.7 million in the prior-year period. Diluted net income per share was $2.25 and $6.81 for the three and nine months ended Dec. 28, respectively, compared to $1.44 and $5.24 for the comparable periods last year.
The release noted that factory-built housing shipments have increased in recent months, helping to bring elevated sales order backlogs down to approximately six weeks of production, or $115 million. This is compared to approximately seven weeks, or $137 million, at the end of the most recent quarter on Sept. 28, and down from approximately 10 weeks of production, or $166 million, on Dec. 29, 2018.
At six weeks of production, the company views the current backlog to be healthy and still above ideal levels.
Click the link to read the full release: CVCO Earnings Release Q3 FY20