Posts Tagged ‘Cavco Homes’

Cavco Industries Releasing Quarterly Numbers May 26

May 25th, 2016 Comments off

cavco-lapsiding-manufactured-homeMHProNews has learned from globenewswire that manufactured and modular home producer Cavco Industries, Inc. will release its financials for the fourth quarter of fiscal year 2016 on Thurs., May 26, 2016, after the close of the market.

On Fri., May 27, 2016, at 1 PM eastern daylight time, senior management will host a live webcast to discuss the results. Listen via Internet: under the Investor Relations link, where the webcast will be archived for 90 days.

Based in Phoenix, AZ, Cavco (Nasdaq:CVCO) is one of the largest producers of manufactured homes in the U. S. They marketed under Cavco Homes, Fleetwood Homes, Palm Harbor Homes Fairmont Homes and Chariot Eagle, and distributed through a network of independent and company-owned retailers.

The company also produces park model RVs, modular homes, cabins and systems-built commercial structures, selling through its financial arm, CountryWide Mortgage, and offering insurance through Standard Casualty. ##

(Image credit: Cavco lap-sided manufactured home)

matthew-silver-daily-business-news-mhpronews-comArticle submitted by Matthew J. Silver to Daily Business News-MHProNews.

Deer Valley Stock Worth the Risk

March 21st, 2016 Comments off

deer_valley_chart__3_2015__seekingalpha__creditWriting in seekingalpha, Brian Grosso tells MHProNews Deer Valley Corp. (OTCQX:DVLY) common stock is undervalued and may be a good investment because the stock is trading so low for no apparent reason. The company survived the disastrous downturn following the housing bubble, during which a number of manufactured and modular homebuilders closed their doors. It continues to sell homes in 14 states in the south eastern and south central U. S.

Now, tailwinds are pushing the industry forward and the company, located in Guin, Alabama, has been steadily advancing. Although considered a nano-cap, it competes effectively from one location with Clayton Homes, Cavco Homes, and Nobility Homes.

With revenue up 14 percent in year-to-date 2015, and operating income nearly tripled, Grosso does not understand why the stock is so low priced. He says operating leverage is good, as DVLY is only using 53 percent of its manufacturing capacity, making it ripe for an upturn in production.

In 2006 a group of investors led by Charles Masters and John Steven Lawler bought Deer Valley and took it public. In response to the downturn, the company closed its Sulligent, Ala. facility, and because credit for dealers all but dried up, DVLY started its own financing subsidiary, offering 24 month inventory-secured financing to dealers. Financed sales have since fallen from 36 percent of sales in 2013 to 22 percent in 2014 as lenders have slowly returned, freeing up working capital for DVLY.

Towards the end of 2014, Peerless Systems acquired 80 percent of the company through its acquisition of a hedge fund that was being liquidated, and Peerless, in turn, was acquired by another hedge fund in early 2015. In Dec., 2015, DVLY announced a $4mm convertible venture loan bearing 5% interest to an affiliated company that is making a $14,000 fiberglass car in Italy at a facility for auto manufacturing not being used.

While Grosso says, “Shipments and inventory of manufactured houses are near historic lows,” in fact they have been rising since Aug. 2011, although they are not near the 300k that were selling in the late 1990s. In any case, he notes the weakness in the MH market is due to loose credit offered low-income people during the housing bubble that lured them away from MH to site-built homes and condos they could ultimately not afford. The Recession itself hurt people at the lower reaches of the income scale more than others, and older couples who might be interested in an MH are waiting for home prices to rise before they move.

Noting that MH get a bad rap for not appreciating, Grosso says he has lived in a multi-sectional home and does not understand why they do not appreciate in value. “I suspect that a traditional home would have a lot of problems after 50-60 years too if you didn’t put any major work into it,” he added. He thinks, giving the nature of homes being manufactured inside a facility with advancements in technology, MH will grow and DVLY’s profits and cash flow will rise around ten percent.

The stock has only traded on 25 days since late Aug., 2015, which amounts to less than $300 a day in volume, which would turn away investors and appeal mostly to small individual investors, which Grosso says he is one.

At the same time, he is a little concerned that Deer Valley has invested all of its cash in a venture capital investment in a foreign company, although Google Ventures and Kleiner Perkins are part of the funding. Nonetheless, he refutes the notion that MH is on a decline, realizing that housing is a cyclical market, and while Deer Valley is skating a little on thin ice with its foreign investment, its stock at $.40 to $.70 a share is definitely worth the risk.

In today’s trading, March 21, Deer Valley fell -0.08 points, -11.59%, to close at 0.61. ##

(Graphic credit: seekingalpha)

matthew-silver-daily-business-news-mhpronews-comArticle submitted by Matthew J. Silver to Daily Business News-MHProNews.




Palm Harbor Constructing tougher Modular Home to Withstand Hurricanes

September 1st, 2015 Comments off

palm-harbor-homes logoThe Insurance Institute for Business and Home Safety (IBHS) has officially recognized Palm Harbor Homes for its production of the first ever disaster resistant modular home designed to significantly reduce property damage during a severe storm.

Produced in Palm Harbor’s facility in Plant City, Florida, realestaerama tells MHProNews this is the first factory in the country to earn the FORTIFIED Home™ – Hurricane certification from IBHS. The first three homes of what Palm Harbor will call its Discovery Florida line of homes have been shipped to south Florida.

Homes earning the FORTIFIED Home label must meet very stringent building standards based on IBHS’ years of engineering research and study, and are inspected in the factory and in the field by an independent FORTIFIED Evaluator.

We are very proud to be the first U.S. manufacturing plant to attain the FORTIFIED certification,” said Mark Kelly, Vice President Sales and Marketing at Palm Harbor Homes. “Our homes have a strong history of weathering extreme storms and now we will be the first to offer homeowners in hurricane-prone areas the option to purchase a stronger modular home that will be more disaster resistant.

Palm Harbor Homes is part of Phoenix, AZ-based Cavco Industries, Inc., one of the largest producers of manufactured and modular homes in the nation. ##

(Image credit: Palm Harbor Homes)

matthew-silver-daily-business-news-mhpronews-comArticle submitted by Matthew J. Silver to Daily Business News-MHProNews.

Cavco Industries Reports Financials for First Fiscal Quarter of 2016

August 6th, 2015 Comments off

cavco-lapsiding-manufactured-homeIn its report of first quarter 2016 financial results, Cavco Industries, Inc. (NASDAQ:CVCO) says net income per share, based on basic and diluted weighted average shares outstanding, was $0.61 and $0.60 respectively, as compared to $0.65 and $0.64 for the same quarter 2014.

According to cnnmoney, net revenue for Q1 2016 was $161.7 million, an increase of 16.2 percent over the $139.2 million reported in the comparable period of 2015. The increase is attributed to sales resulting from Cavco’s acquisitions of Chariot Eagle and Fairmont Homes this year, both of which are manufactured home (MH) producers. In addition, both Chariot and Fairmont manufacture Park Model recreational vehicles (RVs); Fairmont produces modular homes as well.

Income before taxes was $8.6 million for Q1 2016, a $0.3 million drop from the $8.9 million reported in Q1 2015, largely due to the manufactured home insurance subsidiary’s claims generated by the excessive storms in Texas. Rainfall in the first six months of 2015 was 80 percent higher than normal, marking the wettest year-to-date. Net income dropped slightly from $5.8 million in the previous year’s first quarter to $5.4 million Q1 2016.

Joseph Stegmayer, Chairman, President and Chief Executive Officer said, “We continue to be excited about the opportunities these businesses (Fairmont and Chariot) bring to our family of companies and expect future revenue and earnings growth as the integration process continues. The financial services segment’s earnings were significantly impacted this quarter by unpredictably high insurance claims activity.

Mr. Stegmayer concluded, “The Company has expanded to provide a broad range of systems-built housing solutions in most of the key market regions in the United States and Canada. Meanwhile, Cavco has maintained a solid financial structure to support continued growth. While the manufactured housing industry is still faced with challenging economic and regulatory conditions, we believe that our organization is well positioned in the current environment as well as for the longer term.

As MHProNews knows, Cavco is the second largest producer of manufactured and modular homes in the nation. ##

(Image credit: Cavco Industries, Inc.–Cavco lapsided home)

matthew-silver-daily-business-news-mhpronews-comArticle submitted by Matthew J. Silver to Daily Business News-MHProNews.

Cavco Homes to have Modular Home on TV Design Competition

April 9th, 2014 Comments off

The one-hour reality competition series “American Dream Builders” will include Cavco Homes, Inc., (NASDAQ:CVCO) and Palm Harbor Homes in an upcoming episode to air on Sunday, April 13, on NBC. Hosted by renowned designer Nate Berkus, Cavco built modular homes they call Eco Cottages for one competition episode of the show, according to Although Cavco designs and sells many homes over 3,000 square feet, their green cottage entry will be showcased and decorated on the upcoming “American Dream Builders.”

Joe Stegmayer, Chairman, President & Chief Executive Officer of Cavco Industries, Inc., noting Cavco is the first modular home builder to work with the show in its inaugural season, says, “We are always excited about opportunities to showcase the unique flexibility and quality of modular home construction. Smaller, more energy efficient homes are a growing part of our industry.” After the episode, the Eco cottages will be used as recreational rental cottages at KOA Ventura Ranch Resort in Santa Paula, California. Additionally, the winning designer’s home will be featured in an upcoming issue of “Better Homes and Gardens.” As MHProNews knows, Cavco is one of the largest producers of manufactured homes in the United States.

(Image credit: Palm Harbor Homes)

Both Parties in Congress Favor Revising Dodd-Frank

April 24th, 2013 Comments off

MHProNews has learned from the Wall Street Journal there is rare bipartisan support in Congress to roll back a provision in the Dodd-Frank Act that could produce a decline in manufactured home lending, thereby hurting builders, lenders, and owners. A part of Dodd-Frank sets a threshold for interest rates beyond which loans are considered “high cost” by the Consumer Financial Protection Bureau (CFPB) and do not offer legal protections. Many of the loans for manufactured homes fall into this category because they carry interest rates above ten percent, and since purchasers of manufactured homes generally have lower incomes, they are more likely to default. In addition, manufactured homes may lose value over time in some scenarios, and if the home goes into foreclosure the lender will recover less money. Tim Williams, CEO of 21st Mortgage, the largest lender to MH buyers, says a third of his loans from 2010 to 2011 would have landed beyond the CFPB’s threshold. He says the bureau’s restrictions will harm those of modest means in rural areas and will also make it more difficult for individuals to sell their homes. House and Senate lawmakers are working on legislation to make fewer loans “high cost.” Sen. Sherrod Brown (D-OH), noting manufactured homes represent a different consumer base than buyers of traditional homes, says the measure he will introduce would “bring regulations for manufactured housing in line with their place in the market.” Joe Stegmeyer, CEO of Cavco Homes, Inc., the second largest producer of manufactured and modular homes, noting companies are already having tough time, says, “If we see that financing dwindle…it certainly will mean closure of a number of plants.”

(Image credit: bloombergbusinessweek)

Positive Housing News in VA

December 31st, 2012 Comments off

In its wrap-up of good deed events in Franklin County, Vir. for 2012, The Franklin News Post reports two of the stories are housing related. In Jan. 2012, Ply Gem Inc. in Rocky Mount donated the exteriors to seven new homes that were featured on ABC TV’s “Extreme Makeover: Home Edition.” In that episode, seven homes were built in seven days in Joplin, Missouri where the tragic tornado of May 22, 2011 wreaked death and destruction. In addition to the $330,000 value of the materials, Ply Gem sent 50 associates to the site to assist in the project, some from the Rocky Mount facility. The second event, as MHProNews reported Dec. 17, 2012, was the contract with Cavco Homes, Inc.’s plant in Rocky Mount to provide 30 manufactured homes for a foundation named in honor of a fireman who died at the Twin Towers on 9-11. Fifteen of the homes shipped before Christmas to New Milford, Conn. to house Staten Island, NY survivors of Hurricane Sandy who were willing to relocate and have a free place to live. Cavco discounted the homes by $300,000.

(Photo credit: Stacey Hairston/The Franklin News Post–Cavco Homes in Rocky Mount, VA)

Stegmayer’s Statement Suggests Slow Dance to Replace Long

November 23rd, 2011 Comments off

Joe_Stegmayer,_Cavco_CEO_and_Chairman_of_the_Manufactured_Housing_Institute,_credit_MHProNewsCavco CEO and Manufactured Housing Institute (MHI) Chairman Joe Stegmayer’s exclusive statement to last week sent the clear signal that no rapid appointment for a replacement to former MHI President Thayer Long should be expected.  His message was underscored in a conference call with the Manufactured Housing Executive Committee (MHEC) members the next day. Some have lobbied for ‘favorite son’ candidates from their state or industry segment, which is not unwelcome by MHI’s leadership according to reports that they want to make the best possible selection. One person has boldly lobbied quite publicly for himself – with indirect/direct pushes from others in support – but that effort is opposed for sound reasons described by a senior, award winning, MHI member in an exclusive Industry Voices guest blog post. As one respected state executive told MHProNews, “Joe sees no reason to rush the decision, and I agree.” We expect to hear more from Chairman Stegmayer at the Louisville Show, where he plans an address during his appearance there, as well as planning to discuss the plans and progress in the search for a solid replacement for Thayer Long.  Some industry observers are seeing this thoughtful pause in the search of Long’s replacement to lead MHI as a vote of confidence in the rest of the MHI staff, which has kept their ship of state running smoothly.

(Photo credit: