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Cavco Industries Reports Fiscal 2025 Fourth Quarter and Year End Results

1. CVCO reported net revenue of $508 million, up 21% year-over-year. 2. Adjusted net income for Q4 was $44 million, up 29.4% from last year. 3. Backlogs increased to $197 million, indicating strong future demand. 4. The Board approved a new $150 million stock repurchase program. 5. CEO noted improved market positioning and production readiness.

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Why Bullish?

CVCO's strong quarterly growth and increased stock repurchase indicate company confidence.

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Strong financial performance and positive outlook are critical for CVCO's stock momentum.

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Increased revenue and buybacks likely to positively impact stock price soon.

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CAVMPHMLEN
PHOENIX, May 22, 2025 (GLOBE NEWSWIRE) -- Cavco Industries, Inc. (Nasdaq: CVCO) today announced financial results for the fourth quarter and fiscal year ended March 29, 2025. Quarterly Highlights Net revenue of $508 million up 21% from $420 million in the prior year quarter.Gross profit as a percentage of Net revenue was 22.8% with factory-built housing Gross profit as a percentage of Net revenue at 22.3%, down 80 basis points ("bps") and 10 bps, respectively, from last year's fourth quarter.Net income and Adjusted net income (non-GAAP)* were $36 million and $44 million, respectively. Net income per diluted share attributable to Cavco common stockholders was $4.47 and Adjusted net income (non-GAAP) per diluted share* was $5.40 compared to $4.03 in last year's fourth quarter. Full Fiscal Year Highlights Net revenue was $2,015 million, up $221 million or 12.3% compared to $1,795 million last year.Factory-built housing Gross profit as a percentage of Net revenue was 22.9%, compared to 23.2% in the prior year.Income before income taxes was $211 million, up $12 million or 6.0% compared to $199 million in the prior year.Net income per diluted share attributable to Cavco common stockholders was $20.71 compared to $18.37 last year. Adjusted net income (non-GAAP) per diluted share* for the year ended was $21.63.Backlogs at March 29, 2025 were $197 million, up from $191 million at March 30, 2024.Stock repurchases were approximately $150 million in the year. On May 20, 2025, the Company's Board of Directors approved an additional $150 million stock repurchase program. Commenting on the results, Bill Boor, President and Chief Executive Officer, said, "A significant pickup in activity in March helped close out a solid quarter after unusually harsh weather across the southern states in February impacted the transition into the Spring selling season. We held production levels throughout the quarter and are well positioned to increase from here as the market allows." He continued, “As previously announced, in the 4th quarter, we significantly improved our go-to-market position by unifying our 31 manufacturing facilities under the Cavco name. Going forward, national product lines will logically segment our homes based on specific characteristics, simplifying the home search process for our home buyers. All of this leverages our national marketing efforts and the strength we have built in our Cavco name.” *Adjusted net income (non-GAAP) and adjusted net income (non-GAAP) per diluted share exclude a $10.0 million non-cash charge related to the abandonment of indefinite-lived assets associated with the Company's prior brands. See the Exhibit A for the calculation of adjusted results and the manner in which the adjusted measures are determined in this press release. Three months ended March 29, 2025 compared to three months ended March 30, 2024  Three Months Ended     ($ in thousands, except revenue per home sold)March 29,2025 March 30,2024 ChangeNet revenue        Factory-built housing$487,860 $398,493 $89,367  22.4 %Financial services 20,498  21,625  (1,127) (5.2)% $508,358 $420,118 $88,240  21.0 %         Factory-built modules sold 8,260  6,231  2,029  32.6 %         Factory-built homes sold (consisting of one or more modules) 5,060  3,938  1,122  28.5 %         Net factory-built housing revenue per home sold$96,415 $101,192 $(4,777) (4.7)%   In the factory-built housing segment, the increase in Net revenue was primarily due to higher sales volume, partially offset by a lower proportion of homes sold through our Company-owned stores, lower average selling price primarily caused by product price decreases, and sales mix.Financial services segment Net revenue decreased primarily due to fewer loan sales in the current period compared to the prior year, partially offset by higher insurance premiums.  Three Months Ended     ($ in thousands)March 29,2025 March 30,2024 ChangeGross profit        Factory-built housing$108,573  $89,288  $19,285  21.6 %Financial services 7,544   9,727   (2,183) (22.4)% $116,117  $99,015  $17,102  17.3 %         Gross profit as % of Net revenue        Consolidated 22.8%  23.6% N/A (0.8)%Factory-built housing 22.3%  22.4% N/A (0.1)%Financial services 36.8%  45.0% N/A (8.2)%         Selling, general and administrative expenses        Factory-built housing$71,458  $55,937  $15,521  27.7 %Financial services 6,029   5,485   544  9.9 % $77,487  $61,422  $16,065  26.2 %         Income from operations        Factory-built housing$37,115  $33,351  $3,764  11.3 %Financial services 1,515   4,242   (2,727) (64.3)% $38,630  $37,593  $1,037  2.8 %  In the factory-built housing segment, Gross profit increased from higher sales volume. Selling, general and administrative expenses increased primarily as a result of a $10.0 million one-time, non-cash charge related to the adjustment of certain legacy brand intangibles due to the consolidation of the Company's brand as well as increased incentive compensation on higher earnings.In the financial services segment, Gross profit decreased primarily due to reduced revenue from loan sales compared to the prior year.  Three Months Ended    ($ in thousands, except per share amounts)March 29,2025 March 30,2024 ChangeNet income attributable to Cavco common stockholders$36,330 $33,934 $2,396 7.1%Diluted net income per share$4.47 $4.03 $0.44 10.9%Adjusted net income (non-GAAP) attributable to Cavco common stockholders$43,900 $33,934 $9,966 29.4%Adjusted diluted net income (non-GAAP) per share$5.40 $4.03 $1.37 34.0%  Year ended March 29, 2025 compared to the year ended March 30, 2024  Year Ended     ($ in thousands, except revenue per home sold)March 29,2025 March 30,2024 ChangeNet revenue        Factory-built housing$1,933,111 $1,716,607 $216,504  12.6 %Financial services 82,347  78,185  4,162  5.3 % $2,015,458 $1,794,792 $220,666  12.3 %         Factory-built modules sold 32,428  27,355  5,073  18.5 %         Factory-built homes sold (consisting of one or more modules) 19,753  16,928  2,825  16.7 %         Net factory-built housing revenue per home sold$97,864 $101,406 $(3,542) (3.5)%  In the factory-built housing segment, the year-over-year increase in Net revenue was primarily due to higher home sales volume, partially offset by lower average selling prices.Financial services segment Net revenue increased year-over-year primarily due to higher insurance premiums in the current year compared to the prior year, partially offset by reduced revenue from loan sales.  Year Ended     ($ in thousands)March 29,2025 March 30,2024 ChangeGross profit        Factory-built housing$441,796  $398,919  $42,877  10.7 %Financial services 23,795   27,983   (4,188) (15.0)% $465,591  $426,902  $38,689  9.1 %         Gross profit as % of Net revenue        Consolidated 23.1%  23.8% N/A (0.7)%Factory-built housing 22.9%  23.2% N/A (0.3)%Financial services 28.9%  35.8% N/A (6.9)%         Selling, general and administrative expenses        Factory-built housing$253,027  $226,267  $26,760  11.8 %Financial services 22,288   21,653   635  2.9 % $275,315  $247,920  $27,395  11.0 %         Income from operations        Factory-built housing$188,769  $172,652  $16,117  9.3 %Financial services 1,507   6,330   (4,823) (76.2)% $190,276  $178,982  $11,294  6.3 %  In the factory-built housing segment, Gross profit increased from higher home sales, partially offset by lower average selling prices. Selling, general and administrative expenses increased as a result of higher incentive compensation on higher sales and a $10.0 million one-time, non-cash charge related to the adjustment of certain legacy brand intangibles due to the consolidation of the Company's brand.In the financial services segment, Gross profit decreased primarily due to higher weather related insurance claims and reduced revenue from loan sales.  Year Ended    ($ in thousands, except per share amounts)March 29,2025 March 30,2024 ChangeNet income attributable to Cavco common stockholders$171,036 $157,817 $13,219 8.4%Diluted net income per share$20.71 $18.37 $2.34 12.7%Adjusted net income (non-GAAP) attributable to Cavco common stockholders$178,606 $157,817 $20,789 13.2%Adjusted diluted net income (non-GAAP) per share$21.63 $18.37 $3.26 17.7%  Conference Call Details Cavco's management will hold a conference call to review these results tomorrow, May 23, 2025 at 10:00 a.m. (Eastern Time). Interested parties can access a live webcast of the conference call on the Internet at https://investor.cavco.com or via telephone. To participate by phone, please register here to receive the dial in number and your PIN. An archive of the webcast and presentation will be available for 60 days at https://investor.cavco.com. About Cavco Cavco Industries, Inc., headquartered in Phoenix, Arizona, designs and produces factory-built housing products primarily distributed through a network of independent and Company-owned retailers. We are one of the largest producers of manufactured and modular homes in the United States, based on reported wholesale shipments. We are also a leading producer of park model RVs, vacation cabins and factory-built commercial structures. Cavco's finance subsidiary, CountryPlace Mortgage, is an approved Fannie Mae and Freddie Mac seller/servicer and a Ginnie Mae mortgage-backed securities issuer that offers conforming mortgages, non-conforming mortgages and home-only loans to purchasers of factory-built homes. Our insurance subsidiary, Standard Casualty, provides property and casualty insurance to owners of manufactured homes. Forward-Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that are not historical facts. These forward-looking statements reflect Cavco's current expectations and projections with respect to our expected future business and financial performance, including, among other things: (i) expected financial performance and operating results, such as revenue and gross margin percentage; (ii) our liquidity and financial resources; (iii) our outlook with respect to the Company and the manufactured housing business in general; (iv) the expected effect of certain risks and uncertainties on our business; and (iv) the strength of Cavco's business model. These statements may be preceded by, followed by, or include the words "aim," "anticipate," "believe," "estimate," "expect," "forecast," "future," "goal," "intend," "likely," "outlook," "plan," "potential," "project," "seek," "target," "can," "could," "may," "should," "would," "will," the negatives thereof and other words and terms of similar meaning. A number of factors could cause actual results or outcomes to differ materially from those indicated by these forward-looking statements. These factors include, among other factors, Cavco's ability to manage: (i) customer demand and the availability of financing for our products; (ii) labor shortages and the pricing, availability, or transportation of raw materials; (iii) the impact of local or national emergencies; (iv) excessive health and safety incidents or warranty and construction claims; (v) increases in cancellations of home sales; (vi) information technology failures or cyber incidents; (vii) our ability to maintain the security of personally identifiable information of our customers, (viii) compliance with the numerous laws and regulations applicable to our business, including state, federal, and foreign laws relating manufactured housing, privacy, the internet, and accounting matters; (ix) successful defense against litigation, government inquiries, and investigations, and (x) other risks and uncertainties indicated from time to time in documents filed or to be filed with the Securities and Exchange Commission (the "SEC") by Cavco. The forward-looking statements herein represent the judgment of Cavco as of the date of this release and Cavco disclaims any intent or obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments, or otherwise. This press release should be read in conjunction with the information included in the Company's other press releases, reports, and other filings with the SEC. Readers are specifically referred to the Risk Factors described in Item 1A of the Company's Annual Report on Form 10-K for the year ended March 30, 2024 as may be updated from time to time in future filings on Form 10-Q and other reports filed by the Company pursuant to the Securities Exchange Act of 1934, which identify important risks that could cause actual results to differ from those contained in the forward-looking statements. Understanding the information contained in these filings is important in order to fully understand Cavco's reported financial results and our business outlook for future periods. For additional information, contact: Mark FuslerCorporate Controller and Investor Relationsinvestor_relations@cavco.com Phone: 602-256-6263On the Internet: www.cavcoindustries.com CAVCO INDUSTRIES, INC.CONSOLIDATED BALANCE SHEETS (Dollars in thousands, except per share amounts) March 29,2025 March 30,2024ASSETS(Unaudited)  Current assets   Cash and cash equivalents$356,225  $352,687 Restricted cash, current 18,535   15,481 Accounts receivable, net 105,849   77,123 Short-term investments 19,842   18,270 Current portion of consumer loans receivable, net 35,852   20,713 Current portion of commercial loans receivable, net 43,492   40,787 Current portion of commercial loans receivable from affiliates, net 2,881   2,529 Inventories 252,695   241,339 Prepaid expenses and other current assets 74,815   82,870 Total current assets 910,186   851,799 Restricted cash 585   585 Investments 18,067   17,316 Consumer loans receivable, net 20,685   23,354 Commercial loans receivable, net 48,605   45,660 Commercial loans receivable from affiliates, net 4,768   2,065 Property, plant and equipment, net 227,620   224,199 Goodwill 121,969   121,934 Other intangibles, net 16,731   28,221 Operating lease right-of-use assets 35,576   39,027 Deferred income taxes 1,853   — Total assets$1,406,645  $1,354,160 LIABILITIES AND STOCKHOLDERS' EQUITY   Current liabilities   Accounts payable$37,195  $33,531 Accrued expenses and other current liabilities 265,971   239,736 Total current liabilities 303,166   273,267 Operating lease liabilities 31,538   35,148 Other liabilities 7,359   7,759 Deferred income taxes —   4,575 Total liabilities 342,063   320,749 Stockholders' equity   Preferred stock, $0.01 par value; 1,000,000 shares authorized; No shares issued or outstanding —   — Common stock, $0.01 par value; 40,000,000 shares authorized; Issued 9,436,732 and 9,389,953 shares, respectively; Outstanding 8,008,012 and 8,320,718 shares, respectively 94   94 Treasury stock, at cost; 1,428,720 and 1,069,235 shares, respectively (424,624)  (274,693)Additional paid-in capital 290,940   281,216 Retained earnings 1,198,163   1,027,127 Accumulated other comprehensive income (loss) 9   (333)Total stockholders' equity 1,064,582   1,033,411 Total liabilities and stockholders' equity$1,406,645  $1,354,160   CAVCO INDUSTRIES, INC.CONSOLIDATED STATEMENTS OF INCOME(Dollars in thousands, except per share amounts)(Unaudited) Three Months Ended Year Ended March 29,2025 March 30,2024 March 29,2025 March 30,2024Net revenue$508,358  $420,118  $2,015,458  $1,794,792 Cost of sales 392,241   321,103   1,549,867   1,367,890 Gross profit 116,117   99,015   465,591   426,902 Selling, general and administrative expenses 77,487   61,422   275,315   247,920 Income from operations 38,630   37,593   190,276   178,982 Interest income 4,533   5,334   21,089   20,998 Interest expense (147)  (284)  (517)  (1,649)Other (expense) income, net (93)  292   222   849 Income before income taxes 42,923   42,935   211,070   199,180 Income tax expense (6,593)  (9,001)  (40,034)  (41,275)Net income 36,330   33,934   171,036   157,905 Less: net income attributable to redeemable noncontrolling interest —   —   —   88 Net income attributable to Cavco common stockholders$36,330  $33,934  $171,036  $157,817         Net income per share attributable to Cavco common stockholders       Basic$4.53  $4.07  $20.97  $18.55 Diluted$4.47  $4.03  $20.71  $18.37 Weighted average shares outstanding       Basic 8,015,611   8,338,595   8,157,615   8,506,673 Diluted 8,120,407   8,428,613   8,259,956   8,591,911   CAVCO INDUSTRIES, INC.OTHER OPERATING DATA(Dollars in thousands)(Unaudited) Three Months Ended Year Ended March 29,2025 March 30,2024 March 29,2025 March 30,2024Capital expenditures$6,174 $4,184 $21,427 $17,421Depreciation$4,578 $4,279 $17,729 $16,956Amortization of other intangibles$376 $392 $1,530 $1,569  CAVCO INDUSTRIES, INC.Exhibit A: Unaudited Non-GAAP Financial Measures - Adjusted Net Income and Adjusted Net Income per Diluted Share(Dollars in thousands)(Unaudited) Use of non-GAAP measures To supplement our financial statements presented in accordance with U.S. generally accepted accounting principles (“GAAP”), we report non-GAAP financial measures such as Adjusted net income and Adjusted net income per diluted share. The $10.0 million non-cash charge relates to the adjustment of certain legacy brand indefinite-lived intangible values due to the unification of the Company's extensive manufacturing brand lineup under the Cavco name. This charge is tax effected and excluded from Adjusted net income and Adjusted earnings per diluted share because it is a non-cash charge that is non-recurring and not indicative of the Company's core operational results. These non-GAAP financial measures are not a substitute for GAAP results and should be considered in conjunction with GAAP results.  Three Months Ended Year Ended March 29,2025 March 29,2025Adjusted net income     As reported Net income (GAAP)$36,330  $171,036 Plus after-tax impact(1)of indefinite lived asset charge 7,570   7,570 Adjusted net income (non-GAAP)$43,900  $178,606       Earnings per diluted share     As reported diluted earnings per share (GAAP)$4.47  $20.71 After-tax impact of indefinite lived asset charge 0.93   0.92 Adjusted net income (non-GAAP) per diluted share$5.40  $21.63   (1) The impact to net income reflects the tax effect of the noted item, which is based on the enacted rate in the jurisdiction in which the expense is deductible.

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