Cavco Industries, Inc. Reports Unaudited Consolidated Earnings Results for the Third Quarter and Nine Months Ended Dec. 30, 2017; Provides Tax Rate Guidance for the Fiscal Year Ending March 2018 and 2019
February 07, 2018 at 02:48 am IST
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Cavco Industries, Inc. reported unaudited consolidated earnings results for the third quarter and nine months ended Dec. 30, 2017. For the quarter, the company reported net revenue of $221,383,000 compared to $202,310,000 a year ago. Income before income taxes was $23,669,000 compared to $17,279,000 a year ago. Net income was $21,427,000 or $2.33 per diluted share compared to $12,283,000 or $1.35 per diluted share a year ago. Capital expenditures were $1,246,000 compared to $1,238,000 a year ago. Net revenue for the third fiscal quarter was $221 million, up 9% compared to $202 million during the third quarter of fiscal year 2017. Breaking this increase down by business segment, factory-built housing net revenue increased $18.6 million from improved home sales volume, including incremental sales from the company's new Lexington Homes factory in Mississippi and a larger proportion of higher-priced homes.
For the nine months, the company reported net revenue of $628,706,000 compared to $575,799,000 a year ago. The increase was from improved home sales volume and a larger proportion of higher priced homes sold. Income before income taxes was $47,819,000 compared to $38,807,000 a year ago. The improvements were from increased home sales volume and pricing, a $3.4 million favorable dispute settlement resolution during the third fiscal quarter, and improved earnings in the financial services segment. Net income was $39,362,000 or $4.28 per diluted share compared to $27,067,000 or $2.98 per diluted share a year ago. Capital expenditures were $3,025,000 compared to $4,343,000 a year ago.
The final fiscal quarter that ending March 2018 is expected to have an estimated tax rate of approximately 30%, which reflects the blended rates before and after the new tax law, which span the company's fiscal year.
Fiscal year 2019 should benefit fully from lower income tax rates and reflect an estimated effective tax rate in the low 20s.
Cavco Industries, Inc. designs and produces factory-built homes. Its segments include Factory-built Housing and Financial Services. The Factory-built Housing segment includes wholesale and retail factory-built housing operations. The Financial Services segment includes manufactured housing consumer finance and insurance. Its factory-built homes are distributed through a network of independent and Company-owned retailers, planned community operators and residential developers. Its manufactured homes are marketed under a variety of brand names, including Cavco, Fleetwood, Palm Harbor, Nationwide, Fairmont, Friendship, Chariot Eagle, Destiny, Commodore, Colony, Pennwest, R-Anell, Manorwood, MidCountry and Solitaire. It is also a producer of park model recreational vehicle (RVs), vacation cabins and factory-built commercial structures, as well as modular homes. CountryPlace Acceptance Corp. is its finance subsidiary and Standard Casualty Co. (Standard Casualty) is its insurance subsidiary.
Cavco Industries, Inc. Reports Unaudited Consolidated Earnings Results for the Third Quarter and Nine Months Ended Dec. 30, 2017; Provides Tax Rate Guidance for the Fiscal Year Ending March 2018 and 2019