NASDAQ$CVCO

Cavco Industries Inc · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Cavco's financial performance declined due to COVID-19 related production inefficiencies and higher weather-related claims, despite strong order rates.

Cavco Industries reported a decrease in net revenue and net income for the second quarter of fiscal year 2021, primarily due to production inefficiencies related to COVID-19 and higher weather-related claims in the financial services segment. However, sales order activity improved, leading to a significant increase in order backlogs.

  • Net revenue decreased by 4.0% to $258.0 million compared to the same quarter last year.
  • Net income decreased by 28.2% to $15.0 million compared to the same quarter of the prior year.
  • Order backlogs increased by 134% to $321 million due to strong incoming order rates.
  • The company announced a new $100 million stock repurchase program.

Headline financials

Total Revenue

$258M

Previous: $269M-4.0%
EPS (adj)

$1.62

Previous: $2.25-28.0%
Factory-built homes sold

3.4K

Previous: 3.8K-9.4%
Backlog

$321M

No prior period
Capital Expenditures

-$3.77M

Previous: -$3.94M+4.3%
Free Cash Flow

$11.3M

Previous: $16.9M-33.4%
Net Income

$15M

Previous: $20.9M-27.9%
Operating Income

$18.1M

Previous: $22.4M-19.2%
Gross Profit

$53.5M

Previous: $58.5M-8.4%
Cash & Equivalents

$312M

Previous: $190M+63.9%
Total Assets

$883M

Previous: $774M+14.0%
Stock-Based Comp

$1.1M

Previous: $818K+34.8%

Revenue & EPS history

Cavco · Revenue · Quarterly

$258M

Q2 2021-4%vs Q2 2020
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Cavco · $258M total across 2 segments · Q2 2021

  • Factory-built housing
    $241M
  • Financial services
    $17M

Forward guidance

The company is working to increase production by addressing significant labor challenges. Priorities for capital remain unchanged and the company have the opportunity to return value directly to our stockholders without compromising our ability to create long-term value through investment. The company remains committed to growth, both organically and through acquisitions

Tailwinds

  • Sustained and unprecedented level of orders.
  • Demand is clearly indicative of the long-term shortage of affordable housing.
  • Demand has been enabled by record low interest rates.
  • The company demonstrated ability to generate cash
  • Strong financial position continues to support our strategic direction.

Headwinds

  • Ability to produce homes has been hampered by labor challenges,
  • Ability to produce homes has been hampered by supply challenges.
  • Operational efficiencies declined from adjusting home production processes to comply with health guidelines
  • Managing higher factory employee absenteeism
  • Limited new-hire availability and certain building material supply shortages

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 Q2 2021

Historical avgQ2 2021

+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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