Friday, January 28, 2011


A $266 a day profit for the last 90 days might not seem worth even getting out of bed for but Cavco had a loss of more than $11,444 a day for the same period last year!  Now that's amazing considering they and another investment company are forking out $50,000,000 to Fleetwood Homes so they can invest in Palm Harbor Homes, the parent company of Nationwide Homes.

Here is the third quarter report from Cavco Industries.  There seems to some reason for optimism in the housing industry this month and Cavco's report seems to reinforce it.

PHOENIX, Jan. 27, 2011 (GLOBE NEWSWIRE) -- Cavco Industries, Inc. (Nasdaq:CVCO) today announced financial results for the third quarter and first nine months of its fiscal year 2011 ended December 31, 2010.

Net sales for the third quarter of fiscal 2011 totaled $39,612,000, up 9% from $36,369,000 for the third quarter of fiscal year 2010. Net income attributable to Cavco stockholders for the fiscal 2011 third quarter was $24,000 compared to a net loss of $1,030,000 reported in the same quarter one year ago. Net income per share based on basic and diluted weighted average shares outstanding was four-tenths of one cent, versus basic and diluted net loss per share of $0.16 last year.

For the first nine months of fiscal 2011, net sales increased 68% to $133,005,000 from $79,341,000 for the first nine months of fiscal 2010. The prior year period includes the financial results of Fleetwood Homes since August 17, 2009, the date of acquisition, as previously disclosed. Net income attributable to Cavco stockholders for the first nine months of fiscal 2011 was $1,222,000 compared to a net loss of $2,642,000 last year. For the nine months ended December 31, 2010, net income per share based on basic and diluted weighted average shares outstanding was $0.19 and $0.18, respectively, versus basic and diluted net loss per share of $0.41 for the prior year period.

"Geographic and product-line diversification favorably impacted results during the third quarter compared to the same quarter in the prior year. However, the well-publicized and ongoing housing industry challenges continued to negatively affect our operations. Compared to the second quarter of fiscal year 2011, revenue and backlogs were reduced by low incoming order rates, which caused production inefficiencies unfavorably impacting gross margins. Margins were also pressured by pricing competition and certain raw material cost increases. Currently, our plants have substantial operating leverage and are well-positioned to benefit from any improvement in capacity utilization," said Dan Urness, Vice President and Chief Financial Officer.
During the fiscal quarter ended December 31, 2010 and as previously reported, Fleetwood Homes, Inc., a subsidiary owned 50% by Cavco and 50% by Third Avenue Value Fund (TAVFX), provided a $50 million debtor-in-possession credit facility to Palm Harbor Homes, Inc. Palm Harbor is a manufacturer and marketer of factory-built housing and a provider of related consumer financing and insurance products. Palm Harbor and certain of its subsidiaries filed for chapter 11 bankruptcy protection on November 29, 2010. Subsequently, Fleetwood Homes became the court-approved "stalking horse" bidder to acquire substantially all of Palm Harbor's assets and to assume certain liabilities. Fleetwood Homes' $57.5 million bid is subject to customary conditions to closing, certain post-closing adjustments, and bankruptcy court approval. The asset purchase transaction is expected to be conducted pursuant to an auction process under section 363 of the U.S. Bankruptcy Code.

"We are pleased to have this opportunity to partner with Palm Harbor Homes and look forward to a successful outcome of this process. Our mutual intention is to help Palm Harbor continue its heritage of providing quality home building and retailing, financing, insurance products and outstanding customer service," said Joseph Stegmayer, Chairman, President and Chief Executive Officer. "Meanwhile, we continue to aggressively pursue all markets for systems-built buildings from our ten substantially underutilized factories across the country," Mr. Stegmayer concluded.

1 comment:

Anonymous said...

my husband brings home more than that a day and he works as a laborer for our county. maybe he should own Cavco