NASDAQ$CVCO

Cavco Industries Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Cavco reported record results driven by strong demand and increased production efficiency.

Cavco Industries reported record third quarter results for fiscal year 2022, with net revenue reaching $432 million and net income at $80 million. The results were positively impacted by a $29.9 million net benefit from estimated non-recurring tax credits. Factory utilization improved to approximately 80%, and backlogs remained high at $1.1 billion.

  • Net revenue and net income reached record levels of $432 million and $80 million, respectively.
  • Gross profit as a percentage of net revenue increased to 26.7%.
  • Earnings per diluted share was $8.57, including a $3.23 impact from non-recurring energy efficient home tax credits.
  • Backlogs were $1.1 billion at the end of the quarter.

Headline financials

Total Revenue

$432M

Previous: $289M+49.5%
EPS (adj)

$5.34

Previous: $2.12+151.9%
Factory-built modules sold

7.6K

No prior period
Factory-built homes sold

4.4K

Previous: 3.6K+22.8%
Backlog

$1.1B

Previous: $472M+133.1%
Capital Expenditures

-$8.94M

Previous: -$5.82M-53.7%
Free Cash Flow

$70.5M

Previous: $13.9M+407.6%
Net Income

$79.4M

Previous: $19.7M+303.1%
Operating Income

$54.9M

Previous: $23.8M+130.4%
Gross Profit

$115M

Previous: $59.2M+94.5%
Cash & Equivalents

$267M

Previous: $327M-18.4%
Total Assets

$1.11B

Previous: $907M+22.7%
Stock-Based Comp

$1.04M

Previous: $887K+17.6%

Revenue & EPS history

Cavco · Revenue · Quarterly

$432M

Q3 2022+49.5%vs Q3 2021
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Cavco · $432M total across 2 segments · Q3 2022

  • Factory-built housing
    $414M+52.7%
  • Financial services
    $18.1M+1.0%

Forward guidance

Cavco is making progress on the new Glendale, Arizona facility that focuses on park model production and is expected to begin operations in mid-calendar year 2022. Housing demand remains strong.

Tailwinds

  • Housing demand remains strong.
  • Home order rates have moderated from the extreme highs we saw the past few quarters, but still remain above pre-COVID rates.
  • Backlogs at January 1, 2022 were $1.1 billion, consistent with second fiscal quarter of 2022 and up $633 million, or 134.1%, compared to $472 million at December 26, 2020.
  • The year over year increase includes $277 million attributable to Commodore.
  • Total average plant capacity utilization rate was approximately 80% during the third fiscal quarter of 2022, back to pre-pandemic levels and improved from approximately 75% during the second fiscal quarter of 2022 and the third fiscal quarter of 2021.

Headwinds

  • Continue to experience hiring challenges.
  • Higher and largely unpredictable factory employee absenteeism.
  • Inefficiencies from building material supply disruptions.
  • Home order rates have moderated from the extreme highs we saw the past few quarters
  • The credit expired in its current format as of December 31, 2021.

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 Q3 2022

Historical avgQ3 2022

+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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro