Phoenix-based Cavco Industries Inc. struggled on Wall Street last week after the release of some weak second-quarter earnings, which included a staggering 82% year-over-year drop in net income for the first half of the fiscal year, the Phoenix Business Journal reported.

Cavco, a builder of manufactured and modular homes, closed the trading day on Friday (Nov. 2) at $46.13 per share — down by nearly 8%, or $3.94 per share, from the previous day’s close. The 52-week range is $35.81 to $54.11 per share, according to Yahoo! Finance.

The drop in share price echoed the declines in net income, home sales and other earnings figures that Cavco reported Thursday for the second quarter ended Sept. 30.

Net sales of both factory-built homes and financial services, about $110 million, and net income, around $2.68 million, for the second quarter each saw a roughly 15% decline year-over-year, according to the earnings report.

The roughly 1,900 factory-built homes that were sold during the second quarter were also down from last year by almost 11%. However, Cavco sold about 4% more units during the first six months of its fiscal year than last year’s 3,998 units sold.

But the most glaring figure of Cavco’s earnings report is the whopping 82% decline in net income year-over-year during the first six months of the current fiscal year (April 1 to Sept. 30).

In actual numbers, that’s the difference between $4.3 million this year versus $23.86 million last year.

“We continue to operate in a challenging market environment where buyers of manufactured homes remain quite cautious in their purchasing decisions, and elevated unemployment and underemployment rates prevent access to financing for a significant number of potential home buyers,” Joseph Stegmayer, president and CEO of Cavco, said in the earnings report. “To counteract these challenges, we have continued to expand our sales in niche market areas including, among others: workforce housing, homes for rental use in planned communities, multifamily developments and camping cabins.”

Stegmayer said that while revenues were lower year-over-year, gross margins improved to more than 23% in the second quarter compared with 21.7% last year. He also explained reasons for the quarter’s weaker revenues.

“Adversely impacting the number of homes sold was a larger proportion of internally financed wholesale sales, up 49.8% this quarter versus the second quarter last year, resulting in delayed recognition of the related revenue,” he said. “The company also modestly grew the proportion of factory sales to company-owned stores, which defers revenue recognition until the home sale process to the consumer is complete.”