Cavco Industries, Inc. (NASDAQ: CVCO) has reported its financial results for the fourth quarter and fiscal year ended March 30, 2024. The company's net revenue for the fourth quarter was $420 million, with a net income of $34 million. This represented a decrease in net revenue of 11.8% compared to the same period in the prior year. Gross profit as a percentage of net revenue was 23.6%, down 1.7% from the prior year's fourth quarter. Net income per diluted share attributable to Cavco common stockholders was $4.03, down from $5.39 in the prior year's fourth quarter.
For the full fiscal year, net revenue was $1,795 million, down 16.2% from the prior year. Income before income taxes was $199 million, down 35.2% compared to the prior year. Net income per diluted share attributable to Cavco common stockholders was $18.37, a decrease from $26.95 in the prior year.
The factory-built housing segment saw a decrease in net revenue primarily due to lower sales volume, with a 12.6% decrease in net revenue compared to the prior year's fourth quarter. Gross profit in this segment also decreased by 19.8%. Financial services segment net revenue increased by 6.4%, primarily due to more insurance policies in force compared to the prior year.
Looking at the year-end results, the factory-built housing segment's net revenue decreased by 17.1% compared to the prior year, primarily due to lower home sales volume and lower selling prices. Gross profit in this segment decreased by 23.8%. The financial services segment saw a 6.7% increase in net revenue primarily due to more insurance policies in force compared to the prior year.
Cavco Industries' President and CEO, Bill Boor, commented on the results, highlighting the challenges faced due to higher interest rates and economic challenges. Despite these challenges, the company continued to deliver solid margins and cash flow.
The company also reported backlogs at March 30, 2024, totaling $191 million, which was up 19.4% compared to three months prior, but down from $244 million at April 1, 2023. Additionally, stock repurchases were approximately $110 million for the year.
Cavco's management will hold a conference call to review these results on May 24, 2024, at 1:00 p.m. (Eastern Time).
Cavco Industries, Inc., headquartered in Phoenix, Arizona, is one of the largest producers of manufactured and modular homes in the United States, and also produces park model RVs, vacation cabins, and factory-built commercial structures. The company's finance subsidiary, CountryPlace Mortgage, offers conforming mortgages, non-conforming mortgages, and home-only loans to purchasers of factory-built homes, while its insurance subsidiary, Standard Casualty, provides property and casualty insurance to owners of manufactured homes. Today the company's shares have moved -1.9% to a price of $347.85. For the full picture, make sure to review Cavco Industries's 8-K report.
