NASDAQ$CVCO

Cavco Industries Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Cavco's financial performance significantly improved in the second quarter of fiscal year 2023, driven by increased net revenue and a higher gross profit margin.

Cavco Industries reported a strong second quarter in fiscal year 2023, with net revenue increasing by 60.6% to $577 million and net income attributable to Cavco common stockholders increasing by 97.1% to $74 million. The company's gross profit margin also improved, and it commenced operations at a new park model manufacturing facility. The company also signed a binding agreement to acquire Solitaire Homes, Inc.

  • Net revenue increased to $577 million, a 60.6% increase compared to the prior year.
  • Net income attributable to Cavco common stockholders rose to $74 million, a 97.1% increase year-over-year.
  • Earnings per diluted share reached $8.25, compared to $4.06 in the prior year quarter.
  • Backlogs decreased to $651 million, a $347 million decrease from the previous quarter.

Headline financials

Total Revenue

$577M

Previous: $360M+60.6%
EPS (adj)

$8.25

Previous: $4.06+103.2%
Factory-built modules sold

8.9K

Previous: 6.3K+41.7%
Factory-built homes sold

5.1K

Previous: 3.6K+42.1%
Backlog

$651M

Previous: $1.1B-40.8%
Capital Expenditures

-$33.2M

Previous: -$4.67M-610.5%
Free Cash Flow

$40.9M

Previous: $32.9M+24.3%
Net Income

$74.1M

Previous: $37.6M+97.1%
Operating Income

$90.7M

Previous: $44.6M+103.6%
Gross Profit

$158M

Previous: $89.9M+75.3%
Cash & Equivalents

$333M

Previous: $224M+48.6%
Total Assets

$1.26B

Previous: $1.06B+19.7%
Stock-Based Comp

$2.1M

Previous: $1.32M+59.5%

Revenue & EPS history

Cavco · Revenue · Quarterly

$577M

Q2 2023+60.6%vs Q2 2022
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

Cavco · $550M total across 2 segments · Q4 2026

  • Factory-Built Housing
    $528M
  • Financial Services
    $22.1M

Forward guidance

Cavco anticipates near-term demand to be impacted by rising interest rates, inflation, and other economic drivers. However, the company believes there are still opportunities for manufactured housing and remains focused on the long-term need for affordable housing.

Tailwinds

  • Strategic acquisitions like Solitaire Homes will strengthen their position in the Southwest.
  • Recent start-ups of the Hamlet and Glendale plants are in line with their strategy to grow their impact on the affordable housing problem.
  • Committed $244 million to strategic acquisitions since the beginning of fiscal 2022.
  • Committed $52 million to internal capital projects including Hamlet and Glendale since the beginning of fiscal 2022.
  • Committed $99 million to share repurchases since the beginning of fiscal 2022.

Headwinds

  • Near-term demand is being impacted by rising interest rates.
  • Near-term demand is being impacted by inflation.
  • Near-term demand is being impacted by other economic drivers.
  • Lower home order rates, net of cancellations, which are down from the extreme highs we saw during the summer of 2020 to the summer of 2021.
  • Compared to the sequential quarter, the lower utilization is due to market and weather driven downtime.

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 2023

Historical avgQ2 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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