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Cavco Income From Continuing Operations
Increases 80% -- Stock Up 83.8%
04/28/2004
Cavco Industries today reported that income from continuing
operations increased 80%. Sales increased 25%. Subscribers
who bought the stock when we sent out our buy signal have
made a gain of 83.8%. Below is an excerpt from the company's
earnings statement:
PHOENIX, April 28 /PRNewswire-FirstCall/
-- Cavco Industries, Inc. (Nasdaq: CVCO) today announced financial
results for the fourth quarter and fiscal year ended March
31, 2004. Cavco, headquartered in Phoenix, Arizona, is the
largest producer of manufactured homes in Arizona, based on
wholesale shipments. The company is also the largest producer
of park model homes in the United States.
Net sales for the fourth quarter of fiscal
2004 increased 25% to $35,033,000 versus $27,971,000 last
year. Net income for the fourth quarter this year increased
to $1,554,000 compared with a net loss of $6,845,000 for the
same period a year ago, which did not include any income tax
effect. Last year's net loss includes losses of $8,282,000
from the Company's discontinued manufacturing and retail operations
which included two idled manufacturing facilities no longer
held by the Company and retail sales centers to be disposed
of in fiscal 2004 and 2005.
Net income per share for the fourth quarter
this year was $0.49 based on basic weighted average shares
outstanding and $0.48 per share based on diluted weighted
average shares versus a proforma net loss per share of $1.33
last year based on the 3,089,269 shares distributed by Centex
on June 30, 2003.
Pre-tax income from continuing operations
for the fourth quarter of this year was $2,593,000 compared
with $1,437,000 for the fourth quarter last year. After-tax
income from continuing operations increased 80% to $1,554,000
or $0.49 per share versus $862,000 or $0.28 per share for
the same period last year assuming a proforma income tax provision.
Commenting on the results, Joseph Stegmayer,
President and Chief Executive Officer, said, "We are
gratified with the results of our manufacturing operations,
particularly in view of industry conditions that remain challenging.
The pursuit of new markets, the introduction of innovative
products and our focus on quality and production efficiency
continued to benefit our bottom line."
Mr. Stegmayer continued, "Although
industry shipments for the first two months of calendar 2004
continued to decline from the prior year, we anticipate some
positive trends developing as the year progresses, based on
the reduction we see in retailer inventories and the potential
for slight improvement in the availability of consumer financing.
The most significant immediate concern is with the sharp and
rapid increases we are experiencing in the price of raw materials,
particularly wood, steel and gypsum. While we have initiated
sales price increases to reflect the higher construction costs,
the timing of these changes and competitive factors will make
unavoidable some adverse impact to our profit margins in the
first quarter. Because of the unpredictability of raw material
prices and availability going forward, we are unable to assess
the duration or extent of this issue's impact on our performance
for fiscal 2005." Stegmayer concluded.
Commenting on the company's financial condition,
Sean Nolen, Chief Financial Officer, said, "For fiscal
2004, we generated approximately $8 million or $2.50 per share
in after-tax cash flow, which along with strict control over
our balance sheet, increased our available cash to nearly
$31 million. We concluded the fiscal year with no debt outstanding."
Certain statements contained in this release
are forward-looking statements within the meaning of Section
27A of the Securities Act of 1933, Section 21E of the Securities
and Exchange Act of 1934 and the Private Securities Litigation
Reform Act of 1995. In general, all statements that are not
historical in nature are forward-looking. Forward-looking
statements are typically included, for example, in discussions
regarding the manufactured housing industry; our financial
performance and operating results; and the expected effect
of certain risks and uncertainties on our business, financial
condition and results of operations. All forward-looking statements
are subject to risks and uncertainties, many of which are
beyond our control. As a result, our actual results or performance
may differ materially from anticipated results or performance.
Factors that could cause such differences to occur include,
but are not limited to, adverse industry conditions, the cyclical
nature of our business, limitations on our ability to raise
capital, curtailment of available financing in the manufactured
housing industry; competition, our ability to maintain relationships
with retailers, availability of raw materials and our lack
of recent operating history as an independent public company,
together with all of the other risks described in our filing
with the Securities and Exchange Commission. Cavco expressly
disclaims any obligation to update any forward-looking statements
contained in this release whether as a result of new information,
future events or otherwise. Investors should not place any
reliance on any such forward- looking statements.
For further information, please contact:
Joseph Stegmayer, Chairman and CEO of Cavco Industries, Inc.,
+1-602-256-6263, joes@cavco.com.
SOURCE: Cavco Industries, Inc.
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