Q1 2025 Cavco Industries Inc Earnings Call Transcript
Key Points
- Cavco Industries Inc (CVCO) reported a positive order trend, with a 25% sequential increase in orders, leading to a 20% increase in shipments and a 22% rise in backlog.
- The company maintained a steady factory gross margin, which increased by 20 basis points sequentially.
- Net revenue for the first fiscal quarter of 2025 was $477.6 million, a slight increase from the previous year, driven by a 3% increase in homes sold.
- Factory utilization improved to approximately 65%, up from 60% in the prior year period.
- Cavco Industries Inc (CVCO) has a strong cash position with a balance of $359.3 million, up $6.6 million from the end of the prior fiscal year, allowing for continued investment in operational improvements and stock repurchases.
- The Financial Services segment incurred a pretax net loss of $5.2 million due to high insurance claims from severe weather events, impacting overall profitability.
- Consolidated gross margin decreased to 21.7%, down 310 basis points from the same period last year, primarily due to lower average selling prices and losses in financial services.
- Diluted earnings per share dropped to $4.11 from $5.29 in the previous year's first quarter.
- The Insurance division faced significant challenges due to multiple weather events, resulting in a negative gross margin of 0.6% for the Financial Services segment.
- Selling, general, and administrative expenses increased to $64.9 million, up from $61.7 million in the same quarter last year, partly due to acquisition-related costs and increased employee compensation.
Good day and thank you for standing by. Welcome to the first-quarter fiscal year 2025 Cavco Industries, Inc. earnings call webcast. (Operator Instructions) Please be advised that today's conference is being recorded.
I would now like to hand the conference over to your speaker today, Mark Fusler, Corporate Controller and Investor Relations. Please go ahead.
Good day and thank you for joining us for Cavco Industries first quarter fiscal year 2025 earnings conference call. During this call, you'll be hearing from Bill Boor, President and Chief Executive Officer; Allison Aden, Executive Vice President and Chief Financial Officer; and Paul Bigbee, Chief Accounting Officer.
Before we begin, we'd like to remind you that comments made during this conference call by management may contain forward-looking statements including statements of expectations or assumptions about Cavco's financial and operational performance, revenues, earnings per share, cash flow or use, cost savings, operational
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