Palm Harbor Homes Inc. (PHHM, Financial) filed Quarterly Report for the period ended 2010-09-24.
Palm Harbor Homes Inc. has a market cap of $11.72 million; its shares were traded at around $0.51 with and P/S ratio of 0.04.
Net Sales. Net sales decreased 4.2% to $150.6 million in the first six months of fiscal 2011 from $157.2 million in the first six months of fiscal 2010. Factory-built housing net sales decreased $5.6 million while financial services net revenues decreased $1.0 million. The decrease in factory-built housing net sales is primarily due to decreases in the average selling prices of new manufactured and modular homes offset by a 9.4% increase in the total number of factory-built homes sold. Average selling prices declined as a result of depressed appraisal values, consumer demand for smaller, less expensive homes and a 47.5% increase in the number of single wide manufactured homes sold. The decrease in financial services net revenues reflects a decline in the average consumer loans balance from $187.9 million in the first six months of fiscal 2010 to $172.5 million in the first six months of fiscal 2011 resulting from the normal amortization and prepayment of loans.
Interest Expense. Interest expense decreased 2.7% to $8.8 million in the first six months of fiscal 2011 from $9.0 million in the first six months of fiscal 2010. Interest expense decreased by $0.8 million due to the warrants on the fiscal 2010 promissory notes and further by $0.7 million, $0.4 million and $0.4 million due to lower principal balances of convertible senior notes, securitized financings and floor plan payable, respectively. This decline was partially offset by interest expense on the new Virgo debt of $1.5 million.
Cash and cash equivalents totaled $9.5 million at September 24, 2010, down $17.2 million from $26.7 million at March 26, 2010. Net cash used in operating activities was $1.9 million in the first six months of fiscal 2011 as compared to $13.0 million provided by operating activities in the first six months of fiscal 2010. During the first six months of fiscal 2011, net cash used in operating activities of $1.9 million resulted primarily from operating losses and decreases in accrued liabilities and was offset by extended payables and principal payments received on loans. Decreases in accrued liabilities were the result of declines in customer deposits and deferred revenues.
Net cash provided by investing activities was $0.6 million in the first six months of fiscal 2011 as compared to $5.2 million in the first six months of fiscal 2010. Net cash provided by investing activities in the first six months of fiscal 2011 was primarily the result of $0.8 million in net cash received from the sale of investments and is offset by $0.2 million from net purchases of property, plant and equipment. Net cash provided by investing activities in the first six months of fiscal 2010 was primarily the result of $4.3 million in net cash received from the sale of investments and $0.9 million from net disposals of property, plant and equipment.
Net cash used in financing activities was $15.8 million in the first six months of fiscal 2011 as compared to $13.3 million in the first six months of fiscal 2010. Net cash used in financing activities in the first six months of fiscal 2011 was the result of $8.2 million used to pay down the Textron floor plan facility, $8.3 million used for payments on securitized financings, $0.3 million used to repay the Virgo debt and is offset by $1.0 million in net proceeds from the construction lending lines. Net cash used in the first six months of fiscal 2010 was the result of $4.9 million used to pay down the Textron floor plan facility and $9.3 million used for payments on securitized financings, and is offset by $0.9 million in proceeds from the construction lending lines.
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Palm Harbor Homes Inc. has a market cap of $11.72 million; its shares were traded at around $0.51 with and P/S ratio of 0.04.
Highlight of Business Operations:
Net Sales. Net sales decreased 11.4% to $66.3 million in the second quarter of fiscal 2011 from $74.8 million in the second quarter of fiscal 2010. Factory-built housing net sales decreased $7.9 million while financial services net revenues decreased $0.6 million. The decrease in factory-built housing net sales is primarily due to a 6.3% decrease in the total number of factory-built homes sold coupled with decreases in the average selling prices of new manufactured and modular homes. Average selling prices declined as a result of depressed appraisal values, consumer demand for smaller, less expensive homes, and a 13.5% increase in the number of single wide manufactured homes sold. The decrease in financial services net revenues reflects a decline in the average consumer loans balance from $186.6 million in the second quarter of fiscal 2010 to $171.3 million in the second quarter of fiscal 2011 resulting from the normal amortization and prepayment of loans.Net Sales. Net sales decreased 4.2% to $150.6 million in the first six months of fiscal 2011 from $157.2 million in the first six months of fiscal 2010. Factory-built housing net sales decreased $5.6 million while financial services net revenues decreased $1.0 million. The decrease in factory-built housing net sales is primarily due to decreases in the average selling prices of new manufactured and modular homes offset by a 9.4% increase in the total number of factory-built homes sold. Average selling prices declined as a result of depressed appraisal values, consumer demand for smaller, less expensive homes and a 47.5% increase in the number of single wide manufactured homes sold. The decrease in financial services net revenues reflects a decline in the average consumer loans balance from $187.9 million in the first six months of fiscal 2010 to $172.5 million in the first six months of fiscal 2011 resulting from the normal amortization and prepayment of loans.
Interest Expense. Interest expense decreased 2.7% to $8.8 million in the first six months of fiscal 2011 from $9.0 million in the first six months of fiscal 2010. Interest expense decreased by $0.8 million due to the warrants on the fiscal 2010 promissory notes and further by $0.7 million, $0.4 million and $0.4 million due to lower principal balances of convertible senior notes, securitized financings and floor plan payable, respectively. This decline was partially offset by interest expense on the new Virgo debt of $1.5 million.
Cash and cash equivalents totaled $9.5 million at September 24, 2010, down $17.2 million from $26.7 million at March 26, 2010. Net cash used in operating activities was $1.9 million in the first six months of fiscal 2011 as compared to $13.0 million provided by operating activities in the first six months of fiscal 2010. During the first six months of fiscal 2011, net cash used in operating activities of $1.9 million resulted primarily from operating losses and decreases in accrued liabilities and was offset by extended payables and principal payments received on loans. Decreases in accrued liabilities were the result of declines in customer deposits and deferred revenues.
Net cash provided by investing activities was $0.6 million in the first six months of fiscal 2011 as compared to $5.2 million in the first six months of fiscal 2010. Net cash provided by investing activities in the first six months of fiscal 2011 was primarily the result of $0.8 million in net cash received from the sale of investments and is offset by $0.2 million from net purchases of property, plant and equipment. Net cash provided by investing activities in the first six months of fiscal 2010 was primarily the result of $4.3 million in net cash received from the sale of investments and $0.9 million from net disposals of property, plant and equipment.
Net cash used in financing activities was $15.8 million in the first six months of fiscal 2011 as compared to $13.3 million in the first six months of fiscal 2010. Net cash used in financing activities in the first six months of fiscal 2011 was the result of $8.2 million used to pay down the Textron floor plan facility, $8.3 million used for payments on securitized financings, $0.3 million used to repay the Virgo debt and is offset by $1.0 million in net proceeds from the construction lending lines. Net cash used in the first six months of fiscal 2010 was the result of $4.9 million used to pay down the Textron floor plan facility and $9.3 million used for payments on securitized financings, and is offset by $0.9 million in proceeds from the construction lending lines.
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