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Posts Tagged ‘Chief Financial Officer’

Cavco Industries, Second Largest Producer of Manufactured and Modular Homes, Reports Quarterly Results

August 11th, 2016 Comments off
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Photo credit, Cavco IR report.

Phoenix, Arizona based Cavco Industries, Inc. (NASDAQ:CVCO) released key figures and financial highlights for the first fiscal quarter, which ended July 2, 2016.

Cavco management followed their August 09, 2016 release of SEC reported filings with a conference call to discuss the results in further detail

Key points released by the nation’s number two producer of manufactured and modular homes addressed both the upward promise of housing demand, with a cautionary historic note on insurance claims affecting the financial services division of their operations.

Seeking Alpha provided a transcript to MHProNews, some highlights and key facts from the company’s SEC reports follow.

Dan Urness, Chief Financial Officer

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Dan Urness – Chief Financial Officer, Vice President and Treasurer
Cavco Industries, Inc., credit AZBigMedia.

Net revenue for the first fiscal quarter was $185.1 million, up 14.5% compared to $161.7 million during the first quarter of fiscal year 2016. The increase was from achieving 3,395 home sales this quarter, a 17% increase from 2,902 homes during the comparable period last year. The current quarter contained one additional month of Fairmont Homes operations as Fairmont Homes was purchased by the company last year on May 01, 2015.”

Pre-tax income saw a decrease of 2.3% compared to last year, although the factory-built segment increased some $2.7 million for the same period.

Net income remained unchanged and consistent from the prior year at $5.4 million, as did the net income of $0.61 per share for basic and $0.60 for diluted weighted average of shares outstanding.

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Still from a video interview with Joe Stegmayer, click here or the photo above to read A Cup of Coffee with Joe… Stegmayer (left, L. A. ‘Tony’ Kovach – publisher of MHProNews and MHLivingNews, right).

 

Joe Stegmayer, Chairman & CEO

Joseph Stegmayer, Chairman, President and Chief Executive Officer commented on the broader picture of the housing and manufactured homes industry as well as its effects on Cavco:

Overall housing demand continued to improve during the quarter, as reflected in the higher sales volume we are pleased to report. Although significant insurance claims activity from unpredictably extreme weather adversely impacted our financial services segment’s results this quarter, the long-term prospects for this business remain positive. We look forward to the improved market opportunities available to our businesses and expect to continue to benefit from them during the fiscal year.”

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Screen capture from Cavco’s quarterly report, click above to download.

As regular Daily Business News readers know, Cavco Industries, Inc., is headquartered in Phoenix, Arizona.  They design and produce factory-built housing – manufactured and modular homes – primarily distributed through a network of independent and Company-owned retailers.
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Cavco operates 19 production facilities, which build some of the most recognized brands in the HUD Code manufactured housing and modular homes industry, including: Fleetwood Homes, Palm Harbor Homes, Nationwide Homes, Fairmont Homes and Chariot Eagle.  Cavco’s manufactured and modular home divisions have won numerous awards in recent years.

Subsidiaries of the group include: Standard Casualty, it’s insurance branch, as well as its related finance arm – CountryPlace Mortgage.

Further details can be found with the downloads attached, as shown below.

The Cavco ticker shown below was at the time shown, and Cavco is one of several manufactured housing related stocks tracked daily by MHProNews, yesterday’s results are posted here.

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Image credit, MarketWatch.

The transcript of the call is available from this link.  For the interview with the firm’s chairman and CEO – A Cup of Coffee with…Joe Stegmayer, please click here. ##

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Frank Griffin, Daily Business News, MHProNews.

Submitted by Frank Griffin, to Daily Business News  for MHProNews.

Drew Industries: Shopping for Acquisitions?

November 5th, 2013 Comments off

As MHProNews reported Nov. 1, Drew Industries, Inc. announced revenue and net income gains for Q3 2013 over last year’s numbers, and has spent $3 million to increase its internal steel stamping capacity in the first nine months of this year, according to amm.com. Chief Financial Officer (CFO) Joseph S. Giordano says the company has $52 million in cash, no debt, unused lines of credit and is considering acquisitions. Through its subsidiaries, Lippert Components and Kinro, Drew supplies components to the manufactured housing and recreational vehicle industries through 31 facilities across the nation. Meanwhile, tickerreport.com stated Nov. 4 Zacks downgraded shares of Drew from outperform to a neutral rating. In trading on Nov. 4 the stock gained +4.18% to close at 51.88.

(Photo credit: Wikipedia–manufactured housing chassis)

Manufactured Housing Component Producer Grows

July 15th, 2013 Comments off

Lippert Components, Inc., (LCI), a subsidiary of Drew Industries, Inc., has acquired certain assets and the engineering team of Midstates Tool and Die and Engineering, Inc. in Elkhart, Ind. Now renamed Lippert Automation, Tool and Die, the company builds automated equipment, production tooling, and progressive and one-hit stamping dies, and currently employs 12 people, all of whom will remain. Joe Giordano III, chief financial officer of Drew, says, “We haven’t done a big acquisition to date. We’ve done them with small steps, and this is just another one of those in that long history of small steps.” Lippert has over 4,800 employees in northern Ind., and as southbendtribune informs MHProNews, anticipates that will grow to 5,300 by the end of 2016. Jason Lippert, CEO of Drew, a component maker to the manufactured housing industry, says, “The Midstates team has developed a strong reputation for quality workmanship, and we expect to build on that strength.”

(Image credit: Lippert Components, Inc.)

Housing Recovery, Not

October 16th, 2012 Comments off

CNNMoney tells MHProNews while Citigroup reported a net profit of $468 million for the third quarter, including several significant losses, their mortgage originations, unlike other large lenders, fell 15 percent from a year earlier to $14.5 billion. Chief Financial Officer John Gerspach, admitting his company did not increase staff quickly enough, is also skeptical that a true housing recovery is under way. He says some stabilization is occurring, but there are important challenges that must be addressed. Taking issue with JPMorgan Chase CEO Jamie Dimon who says “the housing market has turned a corner,” Gerspach says, “I don’t like phrases like turned the corner. I have difficulty seeing corners.” Citi’s stock is up almost 37 percent on the year. It rose over four percent in afternoon trading Monday, Oct.

(Image credit: Fotosearch)

Cavco Announces Q1 Financials

August 3rd, 2012 Comments off

MarketWatch says Phoenix-based Cavco Industries, Inc. (CVCO: +3.63% Aug. 2) reported net sales for the first quarter of fiscal year (FY) 2013 totaled $118,781,000, representing a 20% increase over the $98,981,000 net sales for the first quarter of FY 2012. First quarter 2013 net income was $1,618,000 as compared to $20,688,000 for the same period in 2012. Included in net income for the first quarter of FY 2012 was $22,009,000 representing Cavco’s ownership percentage of the Palm Harbor transaction that occurred April 23, 2011. Commenting on the first quarter results, Vice president and Chief Financial Officer Dan Urness said, “Gross profit as a percentage of net sales increased 4.0% to 20.3% for the first quarter of fiscal 2013 versus 16.3% for the same quarter in the prior year. The increase is primarily attributable to having the full quarter benefit of the generally higher margin Palm Harbor retail and finance businesses versus a partial quarter last year, given the transaction closing date of April 23, 2011.” Cavco will hold a conference call Fri. Aug 3, 2012 at 12:00 noon eastern time to discuss these results. As MHProNews has learned, Cavco designs and produces manufactured and modular homes as well as park model homes, vacation cabins, and commercial structures, and also provides financial services to consumers. Cavco gained +0.25% on the stock market today.

(Image credit: Cavco Industries, Inc.)

Triad CEO Glisson Appointed to Board

May 15th, 2012 Comments off

InsuranceNewsNet says Don Glisson, Jr. Chairman and CEO of Triad Financial Services has been appointed to the Board of Governors of the state-run Citizens Property Insurance Corp. by Florida Chief Financial Officer Jeff Atwater. Citizens offers insurance to homeowners who cannot obtain coverage through private markets, many of whom live in manufactured housing communities, often on the coast where they are vulnerable to hurricanes. Triad is the oldest manufactured housing finance company in existence. In June of 2010 Glisson was named by the Jacksonville Business Journal as a “Ultimate CEO.” A May 8, 2012 story by MHProNews.com told how Citizens, which is now the largest insurer in the state with nearly 1.5 million policies, is reducing its client base so private insurers will return to the market.

(Photo credit: Triad Financial Services)

Dearing announces Sun’s dividend and new revolving credit facility

October 3rd, 2011 Comments off

Sun_Communiities_logoMHProNews has learned that Sun Communities Inc. (SUI) announced today that its Board of Directors declared a quarterly dividend of $0.63 per share for the third quarter of 2011.  According to Karen J. Dearing, Chief Financial Officer,  the dividend is payable October 21, 2011 to shareholders of record October 13, 2011.  Sun Communities has 21.7 million shares outstanding. Sun is a Real Estate Investment Trust (REIT) that currently owns and operates a portfolio of 155 manufactured home and RV communities comprising approximately 53,600 developed sites.  In other corporate news, Sun also announced today it has entered into a senior secured revolving credit facility in the amount of $130.0 million (the “Facility”) with the Company’s bank group led by Bank of America, N.A. (Administrative Agent) and Merrill Lynch, Pierce, Fenner & Smith Incorporated (Sole Lead Arranger and Sole Book Manager). The Facility replaces the Company’s $115.0 Million revolving line of credit scheduled to mature on October 1, 2011.  The Facility is secured primarily by a first priority lien on all of the Company’s equity interests in each entity that owns all or a portion of the properties constituting the borrowing base.  The Facility has a built in accordion feature allowing up to $20.0 million in additional borrowings and a year extension option, both at the Company’s discretion.  The Facility will bear interest at a floating rate based on Eurodollar plus a margin determined on the Company’s leverage ratio calculated in accordance with the Facility, which ranges from 2.25% to 2.95%. Based on the Company’s current leverage ratio, the margin will be 2.75%.  Other banks participating in the transaction include Fifth Third Bank (Syndication Agent), PNC Bank, The PrivateBank, Citibank, N.A. and Comerica Bank.  At the time of the closing, there were $95.0 million of borrowings under the Facility, including letters of credit issued in the normal course of the Company’s business.  Sun Communities Inc. stock (SUI) is tracked by the market report in our Daily Business News.

(Graphic credit: Sun Corporate Logo)

Canada bank profits surprisingly strong in Q3, but are storm clouds ahead?

September 2nd, 2011 Comments off

Reuters reports that while quarterly profits looked good, gloomier times are ahead for Canada’s resilient banks.  Canada’s banks stayed strong through the financial crisis which largely beat analysts’ expectations with their third-quarter results. Analysts expect narrow lending margins and increased caution by already overstretched borrowers in the months ahead. “The next four quarters will not be as powerful as the last four quarters for the sector,” said CIBC World Markets analyst Robert Sedran. Canada’s banking is dominated by a half dozen big banks which are both protected from foreign takeovers and from merging with each other. They generate billions in profits from domestic branch-bank businesses and required no bailouts during the 2008-09 crisis. Canada’s No. 2 lender said earnings growth should moderate in coming quarters due to slower loan volume growth and margin pressure. “Obviously there’s a lot of uncertainly given what’s going on in the world,” said Chief Financial Officer Colleen Johnston at Toronto-Dominion Bank.  Europe’s banks are in the grip of a debt crisis, while U.S. banks are selling assets to build up capital. Even Canada, which has ridden a strong housing sector to a relatively even-keel economic performance over the past two years, experienced an unexpected economic contraction in the second quarter, data this week showed.

(Photo credit: UWAC)