Cavco Industries Inc. (CVCO, Financial) filed Quarterly Report for the period ended 2011-12-31.
Cavco Industries Inc. has a market cap of $368.8 million; its shares were traded at around $53.52 with and P/S ratio of 2.1.
Factory-built housing net sales increased 164.9% to $104.9 million from $39.6 million for the comparable quarter last year. For the nine months ended December 31, 2011, factory-built housing net sales increased 138.7% to $317.5 million from $133.0 million for the same period last year. The financial services segment, consisting of CountryPlace and Standard, contributed $9.6 million and $26.1 million in net sales for the three and nine months ended December 31, 2011, respectively.
Gross Profit. Gross profit as a percent of sales increased to 23.5% for the three months ended December 31, 2011 from 13.5% for the same period last year and increased to 20.8% for the nine months ended December 31, 2011 from 14.3% last year. Including the Palm Harbor operations, the Companys combined factory-built housing operations sold 1,972 and 5,970 homes during the three and nine months ended December 31, 2011, respectively, compared to 1,139 and 3,691 homes during the comparable periods last year. While the average sales price per home improved, the improvement in gross profit was mainly the result of the added Palm Harbor retail business, and the finance and insurance subsidiaries, which are generally higher-margin businesses.
Selling, General and Administrative Expenses. Selling, general and administrative expenses increased 289.3% or $15.3 million to $20.5 million, or 17.9% of net sales, for the three months ended December 31, 2011 versus $5.3 million or 13.3% of net sales, for the same period last year. For the nine-month period ended December 31, 2011, selling, general and administrative expenses increased 269.5% or $43.1 million to $59.1 million from $16.0 million last year. The increase is primarily a result of the addition of the Palm Harbor businesses. Costs related to the acquisition of Palm Harbor Florida were $1,000 and $865,000 for the three and nine months ended December 31, 2011, respectively, and were expensed as incurred.
Projected cash to be provided by or used in operations in the coming year is largely dependent on sales volume. Operating activities provided $8.7 million of cash during the nine months ended December 31, 2011, compared to requiring the use of $2.3 million during the same period last year. Cash provided by operating activities during the current period was primarily the result of cash generated by the new finance subsidiaries, including proceeds from sales of consumer loans and collecting principal payments on consumer loans originated, as well as operating income before non-cash charges. These increases were supplemented by increases of accounts payable and accrued liabilities, offset in part by the volume of consumer loans originated and increases in inventory finance receivables, prepaid assets and accounts receivable. Cash used by operating activities during the nine months ended December 31, 2010 was primarily the result of net funding of inventory finance initiatives and decreases in accounts payable, offset in part by operating income before non-cash charges and collections of trade receivables.
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Cavco Industries Inc. has a market cap of $368.8 million; its shares were traded at around $53.52 with and P/S ratio of 2.1.
Highlight of Business Operations:
Net Sales. Total net sales increased 189.2% to $114.6 million for the three months ended December 31, 2011 compared to $39.6 million for the comparable quarter last year. For the nine months ended December 31, 2011, sales increased 158.3% to $343.6 million from $133.0 million for the same period last year. The Palm Harbor operations were acquired on April 23, 2011, and from that date forward are included in the results of fiscal year 2012.Factory-built housing net sales increased 164.9% to $104.9 million from $39.6 million for the comparable quarter last year. For the nine months ended December 31, 2011, factory-built housing net sales increased 138.7% to $317.5 million from $133.0 million for the same period last year. The financial services segment, consisting of CountryPlace and Standard, contributed $9.6 million and $26.1 million in net sales for the three and nine months ended December 31, 2011, respectively.
Gross Profit. Gross profit as a percent of sales increased to 23.5% for the three months ended December 31, 2011 from 13.5% for the same period last year and increased to 20.8% for the nine months ended December 31, 2011 from 14.3% last year. Including the Palm Harbor operations, the Companys combined factory-built housing operations sold 1,972 and 5,970 homes during the three and nine months ended December 31, 2011, respectively, compared to 1,139 and 3,691 homes during the comparable periods last year. While the average sales price per home improved, the improvement in gross profit was mainly the result of the added Palm Harbor retail business, and the finance and insurance subsidiaries, which are generally higher-margin businesses.
Selling, General and Administrative Expenses. Selling, general and administrative expenses increased 289.3% or $15.3 million to $20.5 million, or 17.9% of net sales, for the three months ended December 31, 2011 versus $5.3 million or 13.3% of net sales, for the same period last year. For the nine-month period ended December 31, 2011, selling, general and administrative expenses increased 269.5% or $43.1 million to $59.1 million from $16.0 million last year. The increase is primarily a result of the addition of the Palm Harbor businesses. Costs related to the acquisition of Palm Harbor Florida were $1,000 and $865,000 for the three and nine months ended December 31, 2011, respectively, and were expensed as incurred.
Projected cash to be provided by or used in operations in the coming year is largely dependent on sales volume. Operating activities provided $8.7 million of cash during the nine months ended December 31, 2011, compared to requiring the use of $2.3 million during the same period last year. Cash provided by operating activities during the current period was primarily the result of cash generated by the new finance subsidiaries, including proceeds from sales of consumer loans and collecting principal payments on consumer loans originated, as well as operating income before non-cash charges. These increases were supplemented by increases of accounts payable and accrued liabilities, offset in part by the volume of consumer loans originated and increases in inventory finance receivables, prepaid assets and accounts receivable. Cash used by operating activities during the nine months ended December 31, 2010 was primarily the result of net funding of inventory finance initiatives and decreases in accounts payable, offset in part by operating income before non-cash charges and collections of trade receivables.
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