PHOENIX - Cavco Industries , Inc. (NASDAQ: NASDAQ:CVCO) reported its financial results for the fourth quarter ended March 30, 2024, with earnings and revenue falling short of Wall Street expectations.
The company announced a net income of $34 million on net revenue of $420 million for the quarter. This translates to a diluted net income per share of $4.03, which is below the analyst consensus estimate of $4.51. Revenue also missed the mark, coming in at $420.12 million against expectations of $463.48 million.
Compared to the same quarter last year, Cavco's revenue decreased by 11.8%, with factory-built housing revenue dropping by 12.6%. The company's gross profit as a percentage of net revenue declined, with the factory-built housing segment experiencing a decrease of 200 basis points from the previous year's fourth quarter. The overall gross profit margin contracted by 170 basis points to 23.6%.
Bill Boor, President and Chief Executive Officer of Cavco, commented on the quarter's performance, highlighting the challenges faced at the start of the quarter with several plants missing operating days due to thin backlogs. However, he noted improvements in order rates as the quarter progressed. Boor also emphasized the company's solid margins and cash flow despite higher interest rates and economic challenges.
He mentioned the strategic moves made during the year, including capacity increases, retail distribution footprint expansion, and the launch of the Anthem series. Boor stated, "Affordable housing remains a pressing need and our ability to provide affordable homes for families has never been stronger."
The financial services segment of Cavco's business saw a 6.4% increase in net revenue, attributed to more insurance policies in force compared to the prior year. Despite the overall downturn, backlogs as of March 30, 2024, were up by 19.4% to $191 million from three months prior, although they were down from $244 million at the same time last year.
The company's full fiscal year results also reflected a decline, with net revenue down 16.2% to $1,795 million from the previous year's $2,143 million. Net income per diluted share for the full year was reported at $18.37, a decrease from the prior year's $26.95.
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