NASDAQ$CVCO

Cavco Industries Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Cavco achieved record net revenue and net income, driven by strong performance in factory-built housing and increased capacity utilization.

Cavco Industries reported record-breaking net revenue of $588 million and net income of $60 million for the first quarter of fiscal year 2023. The company's factory utilization increased to over 85%, and backlogs reached $1.0 billion. Cavco also completed the acquisition of a manufacturing facility in Hamlet, North Carolina.

  • Net revenue reached a record $588 million, and net income was $60 million.
  • Gross profit as a percentage of net revenue increased to 24.6%.
  • Earnings per diluted share were $6.63, up from $2.92 in the previous year's first quarter.
  • Backlogs totaled $1.0 billion, an increase of $206 million year-over-year.

Headline financials

Total Revenue

$588M

Previous: $330M+78.1%
EPS (adj)

$6.63

Previous: $2.92+127.1%
Factory-built modules sold

9.2K

Previous: 6.3K+46.3%
Factory-built homes sold

5.3K

Previous: 3.7K+44.5%
Backlog

$1B

Previous: $792M+26.3%
Capital Expenditures

-$25M

Previous: -$2.59M-864.4%
Free Cash Flow

$34.6M

Previous: $24.5M+41.5%
Net Income

$59.6M

Previous: $27M+120.4%
Operating Income

$78.6M

Previous: $33.2M+136.8%
Gross Profit

$145M

Previous: $74M+95.5%
Cash & Equivalents

$238M

Previous: $330M-27.8%
Total Assets

$1.18B

Previous: $971M+21.9%
Stock-Based Comp

$1.43M

Previous: $1.1M+29.5%

Revenue & EPS history

Cavco · Revenue · Quarterly

$588M

Q1 2023+78.1%vs Q1 2022
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Cavco · $588M total across 2 segments · Q1 2023

  • Factory-built housing
    $573M
  • Financial services
    $15.7M

Forward guidance

Cavco is well-positioned in an environment of rising interest rates and general inflation, with the benefits of factory-built solutions and the need for what they do never been greater.

Tailwinds

  • Achieving greater than 85% capacity utilization in production plants.
  • Acquisition of Commodore contributed significantly to revenue.
  • Efforts in product simplification and production staffing improvement increased total average plant capacity utilization.
  • Settlement in principle with the staff of the Securities and Exchange Commission.
  • Progress on the development of new Glendale, Arizona facility that will focus on park model production.

Headwinds

  • Home order rates have moderated from the extreme highs.
  • Financial services segment Net revenue decreased primarily due to unrealized losses on marketable equity securities.
  • Higher weather related claims in the financial services segment.
  • Expenses incurred in engaging third-party consultants in relation to the non-recurring energy efficient home tax credits.
  • Legal and other expense related to the SEC inquiry, net of recovery.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

+1.1%

Avg return

Earnings day

+3.9%

Avg return

5 days after

+5.3%

Avg return

30 days after

59%

38 / 64 earnings

Positive

+18.0%

Q3 2018

Best reaction

-23.5%

Q2 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2026+3.4%+11.1%+22.3%
Q3 2026-20.3%-18.1%-6.5%
Q2 2026+6.4%+11.1%+18.2%
Q1 2026+4.9%+11.7%+31.4%
Q4 2025-5.4%-12.9%-20.4%
Q3 2025+6.7%+12.0%+10.0%
Q2 2025+7.9%+10.6%+24.3%
Q1 2025-7.6%-12.3%-0.3%
Q4 2024-1.7%-1.3%+1.1%
Q3 2024+3.4%+6.3%+14.2%
Q2 2024+9.0%+5.5%+17.4%
Q1 2024+1.3%+3.9%-0.6%
Q4 2023-6.1%-4.3%-6.6%
Q3 2023-0.5%+5.6%+6.6%
Q2 2023-1.1%+3.8%+17.8%
Q1 2023+9.2%+9.9%-11.1%
Q4 2022+4.4%+5.9%-5.3%
Q3 2022+6.0%+7.2%-1.4%
Q2 2022+3.2%+13.8%+19.3%
Q1 2022+4.0%+5.6%+5.8%
Q4 2021+4.0%+5.0%+4.3%
Q3 2021+3.6%+12.1%+15.9%
Q2 2021-1.5%+10.5%+7.3%
Q1 2021+4.0%+7.2%+0.7%
Q4 2020+9.8%+1.9%-1.6%
Q3 2020+2.8%+3.1%-7.5%
Q2 2020-4.8%-3.9%-2.1%
Q1 2020+8.0%+8.1%+11.2%
Q4 2019+17.5%+13.5%+19.1%
Q3 2019-17.1%-13.9%-22.0%
Q2 2019-23.5%-22.2%-30.4%
Q1 2019+5.0%+6.8%+16.0%
Q4 2018+10.2%+19.4%+12.5%
Q3 2018+18.0%+10.9%+20.1%
Q2 2018-3.8%-5.0%-5.1%
Q1 2018+2.5%-7.1%-1.5%
Q4 2017+11.2%+11.5%+11.8%
Q3 2017+10.6%+14.3%+20.0%
Q2 2017+3.6%+4.7%+12.2%
Q1 2017-0.8%+2.6%+6.4%
Q4 2016+5.6%+4.7%-6.2%
Q3 2016+5.9%
Q2 2016+17.9%
Q1 2016-0.5%
Q4 2015+1.7%
Q3 2015-0.1%
Q2 2015+0.1%
Q1 2015-2.6%
Q4 2014+6.6%
Q3 2014+5.3%
Q2 2014-5.5%
Q1 2014+5.3%
Q4 2013+3.3%
Q3 2013+0.5%
Q2 2013-4.0%
Q1 2013-3.4%
Q4 2010+0.9%
Q3 2012-1.4%
Q3 2011-1.4%
Q2 2012-3.5%
Q4 2011-12.1%
Q2 2011-12.1%
Q1 2012-12.1%
Q1 2011-12.1%

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