Stock News Alert: Cavco Industries (NASDAQ:CVCO) declares financial results

Finance Technology

Cavco Industries (NASDAQ:CVCO) spotted trading -40.29% off 52-week high price. On the other end, the stock has been noted 39.56% away from the low price over the last 52-weeks. The stock changed 14.85% to recent value of $156.31. The stock transacted 314924 shares during most recent day however it has an average volume of 97.64K shares. The company has 9.33M of outstanding shares and 8.54M shares were floated in the market.  

Cavco Industries (NASDAQ:CVCO) reported financial results for the fourth quarter and fiscal year ended March 30, 2019.

Three months ended March 30, 2019 compared to the three months ended March 31, 2018

Net revenue was $241.1 million, down 0.6% from $242.5 million in the prior year period. Net revenue for the three months ended March 30, 2019 includes subcontracted pass-through services of $6.2 million, which are now recognized on a gross basis rather than net of associated costs. Current period revenue was lower from reduced home sales volume, largely offset by price increases and product mix. In the prior year period, the Company recognized $14.8 million of home sales revenue from early commercial loan payoffs received under Cavco’s wholesale lending programs, in addition to completion of disaster-relief units for the Federal Emergency Management Agency.

Income before income taxes was $26.1 million, a 15.0% decrease from $30.7 million. During the period, the Company experienced higher gross profit margins from increased prices coupled with declining home production materials input costs. Additionally, gross profit margins were enhanced by improved earnings in the financial services segment. In the prior year quarter, the Company recognized $4.5 million of other income from gains realized on the sale of corporate investments.

Income tax expense was $6.1 million, resulting in an effective tax rate of 23.4% compared to $8.6 million and an effective tax rate of 27.9% in the prior year period.

Net income was $20.0 million compared to $22.1 million, a 9.5% decrease. Diluted net income per share was $2.17 versus $2.40 for the comparable period last year.

Twelve months ended March 30, 2019 compared to the twelve months ended March 31, 2018

Net revenue was $962.7 million, up 10.5% from $871.2 million in the prior year. Current year Net revenue includes subcontracted pass-through services of $24.9 million, which is recognized on a gross basis, rather than net of associated costs in the prior year presentation. The remaining increase was primarily from higher home selling prices and product mix.

Income before income taxes increased 10.4% to $86.7 million as compared to $78.5 million. The improvement was from higher gross profit margins from home sales, as well as improved earnings in the financial services segment. In the prior year, the Company received a $3.4 million favorable dispute settlement resolution that reduced cost of sales and also recognized $4.5 million of other income from gains realized on the sale of corporate investments.

Income tax expense was $18.1 million, an effective tax rate of 20.8%, compared to income tax expense of $17.0 million and an effective rate of 21.7% in the prior year. The current period benefited from the Tax Cuts and Jobs Act (the “Tax Act”), while the prior year benefited from the requisite revaluation of the net deferred income tax balance as a result of the Tax Act, whereby the Company recorded a net income tax benefit of $4.8 million.

Net income was $68.6 million, up 11.5% from net income of $61.5 million. Diluted net income per share was $7.40 versus $6.68 in the prior year.

 Its earnings per share (EPS) expected to touch remained 47.80% for this year while earning per share for the next 5-years is expected to reach at 30.00%. CVCO has a gross margin of 21.20% and an operating margin of 8.90% while its profit margin remained 7.30% for the last 12 months. 

 According to the most recent quarter its current ratio was 2.4 that represents company’s ability to meet its current financial obligations. The price moved ahead of 25.47% from the mean of 20 days, 26.67% from mean of 50 days SMA and performed -7.27% from mean of 200 days price. Company’s performance for the week was 28.45%, 27.03% for month and YTD performance remained 19.89%.

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