Cavco Industries, Inc. has recently released its 10-Q report, providing a detailed insight into its financial condition and operations. The company, headquartered in Phoenix, Arizona, is primarily involved in designing, producing, and retailing factory-built homes in the United States. It operates in two segments, Factory-Built Housing, and Financial Services, marketing its products under various brand names including Cavco, Fleetwood, Palm Harbor, and Nationwide. Additionally, the company provides conforming and non-conforming mortgages and home-only loans to purchasers of its factory-built homes, as well as property and casualty insurance to owners of manufactured homes.
In the 10-Q report, Cavco Industries discusses forward-looking statements, emphasizing the potential risks and uncertainties that may impact its financial performance and operating results. The report also provides an overview of the company's operations, highlighting its efforts to identify niche market opportunities and focus on building quality, energy-efficient homes. Cavco Industries emphasizes its conservative cost structure and solid financial position, aiming to avoid liquidity problems and effectively respond to market opportunities or challenges.
The report includes a detailed discussion of the results of operations for the three and nine months ended December 28, 2024. It reveals that the company's net factory-built housing revenue increased due to higher home sales volume, while financial services net revenue increased primarily due to higher insurance premiums. The gross profit as a percentage of net revenue also showed an increase, with factory-built housing gross profit being positively impacted by lower input costs per unit and efficiencies gained on increased production.
Selling, general, and administrative expenses for factory-built housing increased, but as a percentage of net revenue, they decreased for both the three and nine months ended December 28, 2024. The company also reported a backlog of $224 million at the end of December 28, 2024, compared to $276 million at the end of September 28, 2024, and $160 million at the end of December 30, 2023.
The market has reacted to these announcements by moving the company's shares 6.7% to a price of $508.64. For the full picture, make sure to review Cavco Industries's 10-Q report.
