Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Sep. 28, 2019 | Oct. 25, 2019 | |
Document and Entity Information [Abstract] | ||
Entity Central Index Key | 0000278166 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 28, 2019 | |
Amendment Flag | false | |
Document Transition Report | false | |
Entity File Number | 000-08822 | |
Entity Registrant Name | CAVCO INDUSTRIES INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 56-2405642 | |
Entity Address, Address Line One | 3636 North Central Ave, Ste 1200 | |
Entity Address, City or Town | Phoenix | |
Entity Address, State or Province | AZ | |
Entity Address, Postal Zip Code | 85012 | |
City Area Code | 602 | |
Local Phone Number | 256-6263 | |
Title of 12(b) Security | Common Stock, par value $0.01 | |
Trading Symbol | CVCO | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 9,133,716 | |
Current Fiscal Year End Date | --03-28 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 28, 2019 | Mar. 30, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 190,478 | $ 187,370 |
Restricted cash, current | 14,981 | 12,148 |
Accounts receivable, net | 44,908 | 40,701 |
Short-term investments | 13,375 | 12,620 |
Current portion of consumer loans receivable, net | 35,482 | 30,058 |
Current portion of commercial loans receivable, net | 17,694 | 15,234 |
Inventories | 115,205 | 116,203 |
Assets held for sale | 0 | 3,061 |
Prepaid expenses and other current assets | 54,509 | 44,654 |
Total current assets | 486,632 | 462,049 |
Restricted cash | 350 | 351 |
Investments | 32,381 | 32,137 |
Consumer loans receivable, net | 53,470 | 56,727 |
Commercial loans receivable, net | 28,565 | 27,772 |
Property, plant and equipment, net | 70,199 | 63,484 |
Goodwill and other intangibles, net | 90,509 | 82,696 |
Operating lease right-of-use assets | 11,732 | 0 |
Total assets | 773,838 | 725,216 |
Current liabilities: | ||
Accounts payable | 29,886 | 29,305 |
Accrued liabilities | 137,936 | 125,181 |
Current portion of securitized financings and other | 1,875 | 19,522 |
Total current liabilities | 169,697 | 174,008 |
Operating lease liabilities | 8,735 | 0 |
Deferred income taxes | 8,043 | 7,002 |
Securitized financings and other | 14,359 | 14,618 |
Stockholders' equity: | ||
Preferred stock, $0.01 par value; 1,000,000 shares authorized; No shares issued or outstanding | 0 | 0 |
Common stock, $0.01 par value; 40,000,000 shares authorized; Outstanding 9,127,466 and 9,098,320 shares, respectively | 91 | 91 |
Additional paid-in capital | 250,584 | 249,447 |
Retained earnings | 322,245 | 280,078 |
Accumulated other comprehensive income (loss) | 84 | (28) |
Total stockholders' equity | 573,004 | 529,588 |
Total liabilities and stockholders' equity | $ 773,838 | $ 725,216 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 28, 2019 | Mar. 30, 2019 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 40,000,000 | 40,000,000 |
Common stock, shares outstanding | 9,127,466 | 9,098,320 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | |
Income Statement [Abstract] | ||||
Net revenue | $ 268,675 | $ 241,530 | $ 532,717 | $ 487,933 |
Cost of sales | 210,208 | 192,114 | 413,952 | 387,041 |
Gross profit | 58,467 | 49,416 | 118,765 | 100,892 |
Selling, general and administrative expenses | 36,083 | 30,035 | 71,347 | 59,248 |
Income from operations | 22,384 | 19,381 | 47,418 | 41,644 |
Interest expense | (302) | (941) | (788) | (1,913) |
Other income, net | 5,173 | 1,077 | 7,987 | 3,922 |
Income before income taxes | 27,255 | 19,517 | 54,617 | 43,653 |
Income tax expense | (6,370) | (3,941) | (12,450) | (8,386) |
Net income | 20,885 | 15,576 | 42,167 | 35,267 |
Comprehensive income: | ||||
Net income | 20,885 | 15,576 | 42,167 | 35,267 |
Reclassification adjustment for securities sold or matured | 0 | 24 | 2 | 24 |
Applicable income taxes | 0 | (5) | (1) | (5) |
Net change in unrealized position of investments held | 29 | (57) | 140 | (51) |
Applicable income taxes | (6) | 12 | (29) | 11 |
Comprehensive income | $ 20,908 | $ 15,550 | $ 42,279 | $ 35,246 |
Net income per share attributable to Cavco common stockholders: | ||||
Basic (usd per share) | $ 2.29 | $ 1.72 | $ 4.63 | $ 3.89 |
Diluted (usd per share) | $ 2.25 | $ 1.67 | $ 4.56 | $ 3.80 |
Weighted average shares outstanding: | ||||
Basic (in shares) | 9,119,835 | 9,079,679 | 9,111,260 | 9,064,007 |
Diluted (in shares) | 9,266,085 | 9,304,188 | 9,241,834 | 9,287,730 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Sep. 28, 2019 | Sep. 29, 2018 | |
OPERATING ACTIVITIES | ||
Net income | $ 42,167 | $ 35,267 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 2,648 | 2,274 |
Provision for credit losses | 30 | 459 |
Deferred income taxes | 1,011 | 863 |
Stock-based compensation expense | 1,448 | 2,115 |
Non-cash interest income, net | (694) | (409) |
Gain on sale of property, plant and equipment, net | (3,370) | (51) |
Gain on investments and sale of loans, net | (7,683) | (5,457) |
Changes in operating assets and liabilities: | ||
Accounts receivable | (3,300) | (3,057) |
Consumer loans receivable originated | (80,259) | (64,479) |
Proceeds from sales of consumer loans | 77,182 | 62,245 |
Principal payments on consumer loans receivable | 4,759 | 6,522 |
Inventories | 6,506 | (2,350) |
Prepaid expenses and other current assets | 322 | (4,703) |
Commercial loans receivable | (1,409) | (17,321) |
Accounts payable and accrued liabilities | 4,235 | 5,890 |
Net cash provided by operating activities | 43,593 | 17,808 |
INVESTING ACTIVITIES | ||
Purchases of property, plant and equipment | (3,944) | (3,876) |
Payments to Acquire Businesses, Gross | 15,937 | 0 |
Proceeds from sale of property, plant and equipment and assets held for sale | 64 | 64 |
Purchases of investments | (2,751) | (4,042) |
Proceeds from sale of investments | 4,260 | 4,684 |
Net cash used in investing activities | (18,308) | (3,170) |
FINANCING ACTIVITIES | ||
Payments from exercise of stock options | (311) | (173) |
Proceeds from secured financings and other | 75 | 226 |
Payments on securitized financings and other | (19,109) | (4,254) |
Net cash used in financing activities | (19,345) | (4,201) |
Net increase in cash, cash equivalents and restricted cash | 5,940 | 10,437 |
Cash, cash equivalents and restricted cash at beginning of the fiscal year | 199,869 | 199,258 |
Cash, cash equivalents and restricted cash at end of the period | 205,809 | 209,695 |
Supplemental disclosures of cash flow information: | ||
Cash paid for income taxes | 13,073 | 12,381 |
Cash paid for interest | 473 | 1,300 |
Supplemental disclosures of noncash activity: | ||
Right-of-use assets recognized | 13,464 | 0 |
Operating lease obligations incurred | $ 13,489 | $ 0 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Sep. 28, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited Consolidated Financial Statements of Cavco Industries, Inc. and its subsidiaries (collectively, the "Company" or "Cavco") have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the "SEC") for Quarterly Reports on Form 10-Q and Article 10 of SEC Regulation S-X. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles ("GAAP") have been condensed or omitted pursuant to such rules and regulations. In the opinion of management, these financial statements include all adjustments, including normal recurring adjustments, that Cavco believes are necessary to fairly state the results for the periods presented. Certain prior period amounts have been reclassified to conform to current period classification. The Company has evaluated subsequent events after the balance sheet date through the date of the filing of this report with the SEC, and there were no disclosable subsequent events. These Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and the Notes to the Consolidated Financial Statements included in the Company's 2019 Annual Report on Form 10-K for the year ended March 30, 2019 , filed with the SEC on May 28, 2019 ("Form 10-K"). The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the Consolidated Financial Statements and the accompanying Notes to the Consolidated Financial Statements ("Notes"). Actual results could differ from those estimates. The Consolidated Statements of Comprehensive Income and Consolidated Statements of Cash Flows for the interim periods are not necessarily indicative of the results or cash flows for the full year. The Company operates on a 52-53 week fiscal year ending on the Saturday nearest to March 31 st of each year. Each fiscal quarter consists of 13 weeks, with an occasional fourth quarter extending to 14 weeks, if necessary, for the fiscal year to end on the Saturday nearest to March 31 st . The Company's current fiscal year will end on March 28, 2020 . The Company operates principally in two segments: (1) factory-built housing, which includes wholesale and retail systems-built housing operations, and (2) financial services, which includes manufactured housing consumer finance and insurance. The Company designs and builds a wide variety of affordable manufactured homes, modular homes and park model RVs in 20 factories located throughout the United States, which are sold to a network of independent distributors, through the Company's 39 Company-owned retail stores and to community owners and developers. Our financial services group is comprised of a finance subsidiary, CountryPlace Acceptance Corp. ("CountryPlace"), and an insurance subsidiary, Standard Casualty Co. ("Standard Casualty"). CountryPlace is an approved Federal National Mortgage Association and Federal Home Loan Mortgage Corporation seller/servicer and a Government National Mortgage Association mortgage-backed securities issuer that offers conforming mortgages, non-conforming mortgages and home-only loans to purchasers of factory-built homes. Standard Casualty provides property and casualty insurance primarily to owners of manufactured homes. Adoption of New Accounting Standards. In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-02, Leases ("Topic 842"). This guidance amends previous accounting considerations and treatments for leases to increase transparency and comparability among organizations by requiring the recognition of right-of-use ("ROU") assets and lease liabilities on the balance sheet for both finance leases and operating leases. For finance leases, the lessee recognizes interest expense and amortization of the ROU asset and for operating leases, the lessee recognizes straight-line lease expense. Effective March 31, 2019, the Company adopted Topic 842 using the modified retrospective transition approach. This approach provides a method for recording existing leases at adoption, without restating comparative periods. The Company also elected to adopt the package of practical expedients provided in the guidance, which allowed the Company to retain the historical classification for each lease, and provided relief from reviewing existing or expired contracts to determine if they contain leases under the new guidance. In addition, an accounting policy election was made to account for non-lease and lease components as a single lease component for all asset classes. The Company also made an accounting policy election to exclude ROU assets and lease liabilities for leases with an initial term of twelve months or less from the Consolidated Balance Sheet. Adoption of the new standard resulted in an addition of net operating lease ROU assets and lease liabilities of $13.0 million and $13.5 million , respectively, to the Company’s Consolidated Balance Sheet as of March 31, 2019. The difference between the additional lease assets and lease liabilities reflects existing accrued rent balances that were reclassified to the operating lease ROU asset as of March 31, 2019. The standard did not materially impact our consolidated Net income and had no impact on cash flows. See Note 9 for additional information. Accounting Standards Issued But Not Yet Adopted. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ("ASU 2016-13"). ASU 2016-13 changes the impairment model for most financial assets and certain other instruments, which will now require a forward-looking impairment model based on expected losses rather than incurred losses. The guidance also requires increased disclosures. ASU 2016-13 will be effective beginning with the first quarter of the Company's fiscal year 2021 and will be applied using a modified retrospective transition method. While early adoption is permitted, the Company does not plan to early adopt the guidance. The Company is currently evaluating the effect ASU 2016-13 will have on the Company's Consolidated Financial Statements and disclosures. From time to time, new accounting pronouncements are issued by the FASB and other regulatory bodies that are adopted by the Company as of the specified effective dates. Unless otherwise discussed, management believes that the impact of recently issued standards, which are not yet effective, will not have a material impact on the Company's Consolidated Financial Statements upon adoption. For a description of other significant accounting policies used by the Company in the preparation of its Consolidated Financial Statements, please refer to Note 1 of the Notes to Consolidated Financial Statements included in the Form 10-K. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 6 Months Ended |
Sep. 28, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Revenue from Contracts with Customers The following table summarizes customer contract revenues disaggregated by reportable segment and the source of revenue for the three and six months ended September 28, 2019 and September 29, 2018 (in thousands): Three Months Ended Six Months Ended September 28, 2019 September 29, 2018 September 28, 2019 September 29, 2018 Factory-built housing U.S. Housing and Urban Development code homes $ 207,556 $ 184,687 $ 410,035 $ 371,003 Modular homes 19,412 23,901 38,819 46,348 Park model RVs 11,751 5,979 24,612 17,706 Other (1) 13,971 12,527 27,992 24,799 Net revenue from factory-built housing 252,690 227,094 501,458 459,856 Financial services Insurance agency commissions received from third-party insurance companies 274 643 1,429 1,275 Other (2) 15,711 13,793 29,830 26,802 Net revenue from financial services 15,985 14,436 31,259 28,077 Total Net revenue $ 268,675 $ 241,530 $ 532,717 $ 487,933 (1) Other factory-built housing revenue from ancillary products and services including freight, used homes and other services. (2) Other financial services revenue relates to consumer finance and insurance revenue that is not within the scope of ASU 2014-09, Revenue from Contracts with Customers ("Topic 606") . |
Restricted Cash
Restricted Cash | 6 Months Ended |
Sep. 28, 2019 | |
Cash and Cash Equivalents [Abstract] | |
Restricted Cash | Restricted Cash Restricted cash consisted of the following (in thousands): September 28, March 30, Cash related to CountryPlace customer payments to be remitted to third parties $ 13,948 $ 10,426 Cash related to CountryPlace customer payments on securitized loans to be remitted to bondholders — 634 Other restricted cash 1,383 1,439 $ 15,331 $ 12,499 Corresponding amounts were recorded in accounts payable and accrued liabilities for customer payments and deposits, respectively. The following table provides a reconciliation of Cash and cash equivalents and Restricted cash reported within the accompanying Consolidated Balance Sheets to the combined amounts shown on the Consolidated Statements of Cash Flows (in thousands): September 28, March 30, September 29, March 31, Cash and cash equivalents $ 190,478 $ 187,370 $ 195,488 $ 186,766 Restricted cash, current 14,981 12,148 13,754 11,228 Restricted cash 350 351 453 1,264 Cash, cash equivalents and restricted cash per statement of cash flows $ 205,809 $ 199,869 $ 209,695 $ 199,258 |
Investments
Investments | 6 Months Ended |
Sep. 28, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments Investments consisted of the following (in thousands): September 28, March 30, Available-for-sale debt securities $ 12,181 $ 13,408 Marketable equity securities 12,649 11,073 Non-marketable equity investments 20,926 20,276 $ 45,756 $ 44,757 The Company's investments in marketable equity securities consist of investments in the common stock of industrial and other companies. As of September 28, 2019 and March 30, 2019 , non-marketable equity investments included contributions of $15.0 million to equity-method investments in community-based initiatives that buy and sell our homes and provide home-only financing to residents of certain manufactured home communities. Other non-marketable equity investments included investments in other distribution operations. The Company records investments in fixed maturity securities classified as available-for-sale at fair value and records the difference between fair value and cost in Accumulated other comprehensive income (loss). The following tables summarize the Company's available-for-sale debt securities, gross unrealized gains and losses and fair value, aggregated by investment category (in thousands): September 28, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Residential mortgage-backed securities $ 6,168 $ 22 $ (48 ) $ 6,142 State and political subdivision debt securities 3,706 139 (3 ) 3,842 Corporate debt securities 1,901 4 (8 ) 1,897 U.S. Treasury and government debt securities 300 — — 300 $ 12,075 $ 165 $ (59 ) $ 12,181 March 30, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Residential mortgage-backed securities $ 6,625 $ 3 $ (119 ) $ 6,509 State and political subdivision debt securities 4,883 117 (17 ) 4,983 Corporate debt securities 1,635 3 (19 ) 1,619 U.S. Treasury and government debt securities 300 — (3 ) 297 $ 13,443 $ 123 $ (158 ) $ 13,408 The following tables show gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities had been in a continuous unrealized loss position (in thousands): September 28, 2019 Less than 12 Months 12 Months or Longer Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Residential mortgage-backed securities $ 669 $ — $ 3,197 $ (48 ) $ 3,866 $ (48 ) State and political subdivision debt securities 302 (1 ) 103 (2 ) 405 (3 ) Corporate debt securities — — 1,096 (8 ) 1,096 (8 ) $ 971 $ (1 ) $ 4,396 $ (58 ) $ 5,367 $ (59 ) March 30, 2019 Less than 12 Months 12 Months or Longer Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Residential mortgage-backed securities $ 1,066 $ (9 ) $ 5,206 $ (110 ) $ 6,272 $ (119 ) State and political subdivision debt securities 353 — 2,319 (17 ) 2,672 (17 ) Corporate debt securities 243 (8 ) 1,073 (11 ) 1,316 (19 ) U.S. Treasury and government debt securities — — 297 (3 ) 297 (3 ) $ 1,662 $ (17 ) $ 8,895 $ (141 ) $ 10,557 $ (158 ) Based on the Company's ability and intent to hold the investments for a reasonable period of time sufficient for a forecasted recovery of fair value, the Company does not consider any investments to be other-than-temporarily impaired as of September 28, 2019 . The amortized cost and fair value of the Company's investments in available-for-sale debt securities, by contractual maturity, are shown in the table below (in thousands). Expected maturities differ from contractual maturities as borrowers may have the right to call or prepay obligations, with or without penalties. September 28, 2019 Amortized Cost Fair Value Due in less than one year $ 507 $ 507 Due after one year through five years 3,215 3,218 Due after five years through ten years 263 283 Due after ten years 1,922 2,031 Mortgage-backed securities 6,168 6,142 $ 12,075 $ 12,181 The Company recognizes investment gains and losses on available-for-sale debt securities when it sells or otherwise disposes of securities using the specific identification method. There were no gross gains or losses realized on the sale of available-for-sale debt securities during the three and six months ended September 28, 2019 or September 29, 2018 . The Company recognizes unrealized gains and losses on marketable equity securities from changes in market prices during the period as a component of earnings in the Consolidated Statements of Comprehensive Income. Net investment gains and losses on marketable equity securities for the three and six months ended September 28, 2019 and September 29, 2018 were as follows (in thousands): Three Months Ended Six Months Ended September 28, September 29, September 28, September 29, Marketable equity securities: Net gains (losses) on securities held $ 350 $ (312 ) $ 1,302 $ 1,298 Net losses on securities sold (1 ) (13 ) (2 ) (53 ) Total net gain (loss) on marketable equity securities $ 349 $ (325 ) $ 1,300 $ 1,245 |
Inventories
Inventories | 6 Months Ended |
Sep. 28, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consisted of the following (in thousands): September 28, March 30, Raw materials $ 35,330 $ 33,701 Work in process 12,655 12,212 Finished goods 67,220 70,290 $ 115,205 $ 116,203 |
Consumer Loans Receivable
Consumer Loans Receivable | 6 Months Ended |
Sep. 28, 2019 | |
Receivables [Abstract] | |
Consumer Loans Receivable | Consumer Loans Receivable The following table summarizes consumer loans receivable (in thousands): September 28, March 30, Loans held for investment (at Acquisition Date, defined below) $ 40,983 $ 44,375 Loans held for investment (originated after Acquisition Date) 19,530 20,580 Loans held for sale 16,801 11,288 Construction advances 14,261 12,883 Consumer loans receivable 91,575 89,126 Deferred financing fees and other, net (2,208 ) (1,926 ) Allowance for loan losses (415 ) (415 ) $ 88,952 $ 86,785 The allowance for loan losses is developed at the loan level and allocated to specific individual loans or to impaired loans. A range of probable losses is calculated after giving consideration to, among other things, the loan characteristics and historical loss experience. The Company then makes a determination of the best estimate within the range of loan losses. The allowance for loan losses reflects the Company's judgment of the probable loss exposure on its loans held for investment portfolio. The Company acquired consumer loans receivable as part of its acquisition of Palm Harbor Homes, Inc. ("Palm Harbor") in April 2011 ("Acquisition Date"). As of the Acquisition Date, the Company determined the excess of the loan pool's scheduled contractual principal and interest payments over all cash flows expected as an amount that consists of interest that cannot be accreted into interest income (the non-accretable difference). The cash flow expected to be collected in excess of the carrying value of the acquired loans consists of interest that is accreted into interest income over the remaining life of the loans (accretable yield). Interest income on consumer loans receivable is recognized as Net revenue. September 28, March 30, (in thousands) Consumer loans receivable held for investment – contractual amount $ 91,723 $ 100,595 Purchase discount Accretable (34,108 ) (36,672 ) Non-accretable (16,540 ) (19,502 ) Less consumer loans receivable reclassified as other assets (92 ) (46 ) Total acquired consumer loans receivable held for investment, net $ 40,983 $ 44,375 Over the life of the acquired loans, the Company estimates cash flows expected to be collected to determine if an allowance for loan loss subsequent to the Acquisition Date is required. The weighted averages of assumptions used in the calculation of expected cash flows to be collected were as follows: September 28, March 30, Prepayment rate 16.4 % 17.1 % Default rate 1.1 % 1.1 % Assuming there was a 1% (100 basis point) unfavorable variation from the expected level, for each key assumption, the expected cash flows for the life of the portfolio, as of September 28, 2019 , would decrease by approximately $881,000 and $2.5 million for the expected prepayment rate and expected default rate, respectively. The changes in accretable yield on acquired consumer loans receivable held for investment were as follows (in thousands): Three Months Ended Six Months Ended September 28, September 29, September 28, September 29, Balance at the beginning of the period $ 34,881 $ 42,873 $ 36,672 $ 44,481 Accretion (1,713 ) (1,968 ) (3,480 ) (3,867 ) Reclassifications to non-accretable discount 940 32 916 323 Balance at the end of the period $ 34,108 $ 40,937 $ 34,108 $ 40,937 The consumer loans held for investment had the following characteristics: September 28, March 30, Weighted average contractual interest rate 8.49 % 8.49 % Weighted average effective interest rate 9.20 % 9.11 % Weighted average months to maturity 159 163 The following table disaggregates CountryPlace's gross consumer loans receivable for each class by portfolio segment and credit quality indicator as of the time of origination (in thousands): September 28, 2019 Consumer Loans Held for Investment Securitized 2005 Securitized 2007 Unsecuritized Construction Advances Consumer Loans Held For Sale Total Asset Class Credit Quality Indicator (FICO® score) Home-only loans 0-619 $ 374 $ 228 $ 253 $ — $ — $ 855 620-719 7,615 5,629 10,275 — 87 23,606 720+ 8,344 4,895 7,748 — 162 21,149 Other 46 — 382 — — 428 Subtotal 16,379 10,752 18,658 — 249 46,038 Conforming mortgages 0-619 — — 83 — — 83 620-719 — — 1,550 9,616 8,489 19,655 720+ — — 818 4,645 7,760 13,223 Other — — — — 303 303 Subtotal — — 2,451 14,261 16,552 33,264 Non-conforming mortgages 0-619 76 327 950 — — 1,353 620-719 811 3,915 2,614 — — 7,340 720+ 1,124 2,012 230 — — 3,366 Other — — 182 — — 182 Subtotal 2,011 6,254 3,976 — — 12,241 Other loans — — 32 — — 32 $ 18,390 $ 17,006 $ 25,117 $ 14,261 $ 16,801 $ 91,575 March 30, 2019 Consumer Loans Held for Investment Securitized 2005 Securitized 2007 Unsecuritized Construction Advances Consumer Loans Held For Sale Total Asset Class Credit Quality Indicator (FICO® score) Home-only loans 0-619 $ 401 $ 245 $ 266 $ — $ — $ 912 620-719 8,448 5,996 10,266 — — 24,710 720+ 9,090 5,419 8,436 — 617 23,562 Other 47 — 390 — — 437 Subtotal 17,986 11,660 19,358 — 617 49,621 Conforming mortgages 0-619 — — 83 — 460 543 620-719 — — 2,202 8,061 6,885 17,148 720+ — — 684 4,822 3,326 8,832 Subtotal — — 2,969 12,883 10,671 26,523 Non-conforming mortgages 0-619 78 344 991 — — 1,413 620-719 994 4,008 2,687 — — 7,689 720+ 1,238 2,053 369 — — 3,660 Other — — 214 — — 214 Subtotal 2,310 6,405 4,261 — — 12,976 Other loans — — 6 — — 6 $ 20,296 $ 18,065 $ 26,594 $ 12,883 $ 11,288 $ 89,126 Loan contracts secured by collateral that is geographically concentrated could experience higher rates of delinquencies, default and foreclosure losses than loan contracts secured by collateral that is more geographically dispersed. As of September 28, 2019 , 42% of the outstanding principal balance of the consumer loans receivable portfolio was concentrated in Texas and 12% was concentrated in Florida . As of March 30, 2019 , 44% of the outstanding principal balance of the consumer loans receivable portfolio was concentrated in Texas and 12% was concentrated in Florida. Other than Texas and Florida , no other state had concentrations in excess of 10% of the principal balance of the consumer loans receivable as of September 28, 2019 or March 30, 2019 . Collateral for repossessed loans is acquired through foreclosure or similar proceedings and is recorded at the estimated fair value of the home, less the costs to sell. At repossession, the fair value of the collateral is determined based on the historical recovery rates of previously charged-off loans; the loan is charged off and the loss is recorded to the allowance for loan losses. On a monthly basis, the fair value of the collateral is adjusted to the lower of the amount recorded at repossession or the estimated sales price less estimated costs to sell, based on current information. Repossessed homes totaled approximately $1.0 million and $1.5 million as of September 28, 2019 and March 30, 2019 , respectively, and were included in Prepaid expenses and other current assets in the Consolidated Balance Sheets. Foreclosure or similar proceedings in progress totaled approximately $1.2 million and $1.5 million as of September 28, 2019 and March 30, 2019 , respectively. |
Commercial Loans Receivables an
Commercial Loans Receivables and Allowance for Loan Loss | 6 Months Ended |
Sep. 28, 2019 | |
Receivables [Abstract] | |
Commercial Loans Receivables and Allowance for Loan Loss | Commercial Loans Receivable and Allowance for Loan Losses The Company's commercial loans receivable balance consists of two classes: (i) direct financing arrangements for the home product needs of the Company's independent distributors, communities and developers; and (ii) amounts loaned by the Company under participation financing programs. Under the terms of the direct programs, the Company provides funds for financed home purchases by independent distributors, communities and developers. The notes are secured by the homes as collateral and, in some instances, other security. The other terms of direct arrangements vary depending on the needs of the borrower and the opportunity for the Company. Under the terms of the participation programs, the Company provides loans to independent floor plan lenders, representing a significant portion of the funds that such financiers then lend to distributors to finance their inventory purchases. The participation commercial loan receivables are unsecured general obligations of the independent floor plan lenders. Commercial loans receivable, net consisted of the following, by class of financing notes receivable (in thousands): September 28, March 30, Direct loans receivable $ 46,399 $ 42,899 Participation loans receivable 262 495 Allowance for loan losses (163 ) (180 ) Deferred financing fees, net (239 ) (208 ) $ 46,259 $ 43,006 The commercial loans receivable balance had the following characteristics: September 28, March 30, Weighted average contractual interest rate 5.5 % 5.7 % Weighted average months to maturity 9 7 The Company evaluates the potential for loss from its participation loan programs based on the independent lender's overall financial stability, as well as historical experience, and has determined that an applicable allowance for loan losses was not needed at September 28, 2019 or March 30, 2019 . With respect to direct programs with communities and developers, borrower activity is monitored on a regular basis and contractual arrangements are in place to provide adequate loss mitigation in the event of a default. For direct programs with independent distributors, the risk of loss is spread over numerous borrowers. Borrower activity is monitored in conjunction with third-party service providers, where applicable, to estimate the potential for loss on the related notes receivable, considering potential exposures, including repossession costs, remarketing expenses, impairment of value and the risk of collateral loss. The Company has historically been able to sell repossessed homes, thereby mitigating loss exposure. If a default occurs and collateral is lost, the Company is exposed to loss of the full value of the home loan. If the Company determines that it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement, a specific reserve is determined and recorded within the estimated allowance for loan losses. The Company recorded an allowance for loan losses of $163,000 and $135,000 at September 28, 2019 and September 29, 2018 , respectively. The following table represents changes in the estimated allowance for loan losses, including related additions and deductions to the allowance for loan losses applicable to the direct programs (in thousands): Three Months Ended Six Months Ended September 28, September 29, September 28, September 29, Balance at beginning of period $ 191 $ 113 $ 180 $ 42 Change in estimated loan losses, net (28 ) 22 (17 ) 93 Loans charged off, net of recoveries — — — — Balance at end of period $ 163 $ 135 $ 163 $ 135 The following table disaggregates commercial loans receivable and the estimated allowance for loan losses for each class of financing receivable by evaluation methodology (in thousands): Direct Commercial Loans Participation Commercial Loans September 28, March 30, September 28, March 30, Commercial loans receivable: Collectively evaluated for impairment $ 16,276 $ 18,018 $ — $ — Individually evaluated for impairment 30,123 24,881 262 495 $ 46,399 $ 42,899 $ 262 $ 495 Allowance for loan losses: Collectively evaluated for impairment $ (163 ) $ (180 ) $ — $ — Individually evaluated for impairment — — — — $ (163 ) $ (180 ) $ — $ — Loans are subject to regular review and are given management's attention whenever a problem situation appears to be developing. Loans with indicators of potential performance problems are placed on watch list status and are subject to additional monitoring and scrutiny. Nonperforming status includes loans accounted for on a non-accrual basis and accruing loans with principal payments 90 days or more past due. The Company's policy is to place loans on non-accrual status when interest is past due and remains unpaid 90 days or more or when there is a clear indication that the borrower is unstable or unwilling to make payments as they become due. The Company will resume accrual of interest once these factors have been remedied. At September 28, 2019 , there were no commercial loans 90 days or more past due that were still accruing interest. Payments received on non-accrual loans are recorded on a cash basis, first to interest and then to principal. At September 28, 2019 , the Company was not aware of any potential problem loans that would have a material effect on the commercial loans receivable balance. Charge-offs occur when it becomes probable that outstanding amounts will not be recovered. The following table disaggregates the Company's commercial loans receivable by class and credit quality indicator (in thousands): Direct Commercial Loans Participation Commercial Loans September 28, March 30, September 28, March 30, Risk profile based on payment activity: Performing $ 46,399 $ 42,899 $ 262 $ 495 Watch list — — — — Nonperforming — — — — $ 46,399 $ 42,899 $ 262 $ 495 The Company had concentrations of commercial loans receivables related to factory-built homes in excess of 10% of the commercial loans receivables principal balance located in the following states: September 28, March 30, California 15.7 % 21.1 % Arizona 14.9 % 16.3 % Additionally, at March 30, 2019 , 10.4% of the commercial loans receivables principal balance was concentrated in Oregon. The risks created by these concentrations have been considered in the determination of the adequacy of the allowance for loan losses. As of September 28, 2019 and March 30, 2019 , the Company had concentrations with one independent third-party and its affiliates that equaled 24.4% and 22.0% of the commercial loans receivable principal balance outstanding, respectively, all of which was secured. |
Property, Plant and Equipment
Property, Plant and Equipment | 6 Months Ended |
Sep. 28, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment, net Property, plant and equipment, net, consisted of the following (in thousands): September 28, March 30, Property, plant and equipment, at cost: Land $ 21,723 $ 21,359 Buildings and improvements 49,972 42,976 Machinery and equipment 28,756 27,053 100,451 91,388 Accumulated depreciation (30,252 ) (27,904 ) $ 70,199 $ 63,484 Depreciation expense was $1.3 million and $1.1 million for the three months ended September 28, 2019 and September 29, 2018 , respectively. For the six months ended September 28, 2019 and September 29, 2018 , depreciation expense was $2.4 million and $2.1 million , respectively. Included in the amounts above are certain assets under finance leases. See Note 9 for additional information. |
Leases
Leases | 6 Months Ended |
Sep. 28, 2019 | |
Leases [Abstract] | |
Operating Leases | Leases The Company leases certain production and retail locations, office space and equipment. The Company determines if a contract or arrangement is, or contains, a lease at inception. Lease agreements with an initial term of 12 months or less are not recorded on the Consolidated Balance Sheet. Certain lease agreements include one or more options to renew, with renewal terms that can extend the lease term by one to three years or more. Generally, the exercise of lease renewal options is at the Company’s discretion. Some agreements also include options to purchase the leased property. The estimated life of assets and leasehold improvements is limited by the expected lease term, unless there is a transfer of title or purchase option that the Company is reasonably certain to exercise. Certain of the Company's lease agreements include rental payments adjusted periodically for inflation. These lease agreements do not contain any material residual value guarantees or material restrictive covenants. ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. Since the Company’s leases do not provide a readily determinable implicit interest rate, the Company must estimate an incremental borrowing rate. In determining the estimated incremental borrowing rate, the Company considers the lease period and comparable market interest rates, as well as any other information available at the lease commencement date. The lease term includes options to extend or terminate the lease when it is reasonably certain that the Company will exercise such options. The following table provides information about the financial statement classification of the Company's lease balances reported within the Consolidated Balance Sheets as of September 28, 2019 (in thousands): Classification September 28, ROU assets Operating lease assets Operating lease right-of-use assets $ 11,732 Finance lease assets Property, plant and equipment, net (1) 1,685 Total lease assets $ 13,417 Lease Liabilities Current Operating lease liabilities Accrued liabilities $ 3,786 Finance lease liabilities Current portion of secured financings and other 726 Non-current Operating lease liabilities Operating lease liabilities 8,735 Finance lease liabilities Securitized financings and other 317 Total lease liabilities $ 13,564 (1) Recorded net of accumulated amortization of $89,000 as of September 28, 2019 . The following table provides information about the financial statement classification of the Company's lease expenses reported within the Consolidated Statements of Comprehensive Income for the three and six months ended September 28, 2019 (in thousands): September 28, 2019 Lease Expense Category Classification Three Months Ended Six Months Ended Operating lease expense (1) Cost of sales $ 208 $ 417 Selling, general and administrative expenses 776 1,529 Finance lease expense Amortization of leased assets Cost of sales 10 19 Interest on lease liabilities Interest expense 14 27 Total lease expense $ 1,008 $ 1,992 (1) Excludes short-term and variable lease expenses, which are immaterial. Cash payments for operating leases for the three and six months ended September 28, 2019 were $832,000 and $1.6 million , respectively. Cash payments for finance leases for the three and six months ended September 28, 2019 were $36,000 and $70,000 , respectively. The present value of the minimum payments for future fiscal years under non-cancelable leases as of September 28, 2019 were as follows (in thousands): Operating Leases Finance Leases Total Remainder of 2020 $ 1,746 $ 703 $ 2,449 2021 3,797 79 3,876 2022 2,882 73 2,955 2023 1,875 73 1,948 2024 1,445 73 1,518 Thereafter 2,611 122 2,733 Total lease payments 14,356 1,123 15,479 Less: Amount representing interest (1,835 ) (80 ) (1,915 ) Present value of lease liabilities $ 12,521 $ 1,043 $ 13,564 The following table provides information about the weighted average remaining lease terms and weighted average discount rates as of September 28, 2019 : Remaining Lease Term (Years) Discount Rate Operating leases 4.8 4.5 % Finance leases 2.5 5.0 % Operating Leases pre-Topic 842 adoption : The Company has non-cancelable operating leases with third parties, primarily for administrative and distribution center space and computer equipment. The Company's facilities leases generally provide for periodic rent increases and many contain escalation clauses and renewal options. Rent expense for these third-party operating leases was $5.2 million for the fiscal year ended March 30, 2019 and $5.3 million for each of the fiscal years ended March 31, 2018 and April 1, 2017, and is included in Cost of sales and Selling, general and administrative expenses in the accompanying Consolidated Statements of Comprehensive Income. Future minimum lease commitments for future fiscal years under all non-cancelable operating leases having a remaining term in excess of one year as of March 30, 2019 were as follows (in thousands): 2020 $ 2,292 2021 2,197 2022 1,389 2023 1,072 Thereafter 1,372 Total remaining lease payments $ 8,322 |
Finance Leases | Leases The Company leases certain production and retail locations, office space and equipment. The Company determines if a contract or arrangement is, or contains, a lease at inception. Lease agreements with an initial term of 12 months or less are not recorded on the Consolidated Balance Sheet. Certain lease agreements include one or more options to renew, with renewal terms that can extend the lease term by one to three years or more. Generally, the exercise of lease renewal options is at the Company’s discretion. Some agreements also include options to purchase the leased property. The estimated life of assets and leasehold improvements is limited by the expected lease term, unless there is a transfer of title or purchase option that the Company is reasonably certain to exercise. Certain of the Company's lease agreements include rental payments adjusted periodically for inflation. These lease agreements do not contain any material residual value guarantees or material restrictive covenants. ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. Since the Company’s leases do not provide a readily determinable implicit interest rate, the Company must estimate an incremental borrowing rate. In determining the estimated incremental borrowing rate, the Company considers the lease period and comparable market interest rates, as well as any other information available at the lease commencement date. The lease term includes options to extend or terminate the lease when it is reasonably certain that the Company will exercise such options. The following table provides information about the financial statement classification of the Company's lease balances reported within the Consolidated Balance Sheets as of September 28, 2019 (in thousands): Classification September 28, ROU assets Operating lease assets Operating lease right-of-use assets $ 11,732 Finance lease assets Property, plant and equipment, net (1) 1,685 Total lease assets $ 13,417 Lease Liabilities Current Operating lease liabilities Accrued liabilities $ 3,786 Finance lease liabilities Current portion of secured financings and other 726 Non-current Operating lease liabilities Operating lease liabilities 8,735 Finance lease liabilities Securitized financings and other 317 Total lease liabilities $ 13,564 (1) Recorded net of accumulated amortization of $89,000 as of September 28, 2019 . The following table provides information about the financial statement classification of the Company's lease expenses reported within the Consolidated Statements of Comprehensive Income for the three and six months ended September 28, 2019 (in thousands): September 28, 2019 Lease Expense Category Classification Three Months Ended Six Months Ended Operating lease expense (1) Cost of sales $ 208 $ 417 Selling, general and administrative expenses 776 1,529 Finance lease expense Amortization of leased assets Cost of sales 10 19 Interest on lease liabilities Interest expense 14 27 Total lease expense $ 1,008 $ 1,992 (1) Excludes short-term and variable lease expenses, which are immaterial. Cash payments for operating leases for the three and six months ended September 28, 2019 were $832,000 and $1.6 million , respectively. Cash payments for finance leases for the three and six months ended September 28, 2019 were $36,000 and $70,000 , respectively. The present value of the minimum payments for future fiscal years under non-cancelable leases as of September 28, 2019 were as follows (in thousands): Operating Leases Finance Leases Total Remainder of 2020 $ 1,746 $ 703 $ 2,449 2021 3,797 79 3,876 2022 2,882 73 2,955 2023 1,875 73 1,948 2024 1,445 73 1,518 Thereafter 2,611 122 2,733 Total lease payments 14,356 1,123 15,479 Less: Amount representing interest (1,835 ) (80 ) (1,915 ) Present value of lease liabilities $ 12,521 $ 1,043 $ 13,564 The following table provides information about the weighted average remaining lease terms and weighted average discount rates as of September 28, 2019 : Remaining Lease Term (Years) Discount Rate Operating leases 4.8 4.5 % Finance leases 2.5 5.0 % Operating Leases pre-Topic 842 adoption : The Company has non-cancelable operating leases with third parties, primarily for administrative and distribution center space and computer equipment. The Company's facilities leases generally provide for periodic rent increases and many contain escalation clauses and renewal options. Rent expense for these third-party operating leases was $5.2 million for the fiscal year ended March 30, 2019 and $5.3 million for each of the fiscal years ended March 31, 2018 and April 1, 2017, and is included in Cost of sales and Selling, general and administrative expenses in the accompanying Consolidated Statements of Comprehensive Income. Future minimum lease commitments for future fiscal years under all non-cancelable operating leases having a remaining term in excess of one year as of March 30, 2019 were as follows (in thousands): 2020 $ 2,292 2021 2,197 2022 1,389 2023 1,072 Thereafter 1,372 Total remaining lease payments $ 8,322 |
Goodwill and Other Intangibles
Goodwill and Other Intangibles | 6 Months Ended |
Sep. 28, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangibles | Goodwill and Other Intangibles Goodwill and other intangibles, net, consisted of the following (in thousands): September 28, 2019 March 30, 2019 Gross Accumulated Net Gross Accumulated Net Indefinite-lived: Goodwill $ 75,024 $ — $ 75,024 $ 72,920 $ — $ 72,920 Trademarks and trade names 8,900 — 8,900 7,200 — 7,200 State insurance licenses 1,100 — 1,100 1,100 — 1,100 Total indefinite-lived intangible assets 85,024 — 85,024 81,220 — 81,220 Finite-lived: Customer relationships 11,300 (6,146 ) 5,154 7,100 (5,970 ) 1,130 Other 1,424 (1,093 ) 331 1,384 (1,038 ) 346 $ 97,748 $ (7,239 ) $ 90,509 $ 89,704 $ (7,008 ) $ 82,696 Amortization expense recognized on intangible assets was $151,000 and $80,000 for the three months ending September 28, 2019 and September 29, 2018 , respectively. Amortization expense recognized on intangible assets for the six months ended September 28, 2019 and September 29, 2018 was $231,000 and $164,000 , respectively. |
Accrued Liabilities
Accrued Liabilities | 6 Months Ended |
Sep. 28, 2019 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | Accrued Liabilities Accrued liabilities consisted of the following (in thousands): September 28, March 30, Salaries, wages and benefits $ 25,910 $ 25,257 Customer deposits 22,385 17,804 Unearned insurance premiums 19,375 18,305 Estimated warranties 18,563 17,069 Accrued volume rebates 12,240 10,412 Insurance loss reserves 5,659 6,686 Accrued self-insurance 5,485 5,171 Company repurchase options on certain loans sold 4,512 3,810 Operating lease liabilities 3,786 — Reserve for repurchase commitments 3,011 2,362 Accrued taxes 2,547 1,767 Capital lease obligation — 1,075 Other 14,463 15,463 $ 137,936 $ 125,181 |
Warranties
Warranties | 6 Months Ended |
Sep. 28, 2019 | |
Product Warranties Disclosures [Abstract] | |
Warranties | Warranties Activity in the liability for estimated warranties was as follows (in thousands): Three Months Ended Six Months Ended September 28, September 29, September 28, September 29, Balance at beginning of period $ 17,760 $ 16,670 $ 17,069 $ 16,638 Purchase accounting additions 1,192 — 1,192 — Charged to costs and expenses 6,765 6,713 14,586 12,942 Payments and deductions (7,154 ) (6,478 ) (14,284 ) (12,675 ) Balance at end of period $ 18,563 $ 16,905 $ 18,563 $ 16,905 |
Debt and Finance Lease Obligati
Debt and Finance Lease Obligations | 6 Months Ended |
Sep. 28, 2019 | |
Debt Disclosure [Abstract] | |
Debt and Finance Lease Obligations | Debt and Finance Lease Obligations Debt and finance lease obligations primarily consisted of amounts related to loans sold that did not qualify for loan sale accounting treatment and lease obligations in which it is expected that the Company will obtain ownership of a leased asset at the end of the lease term. The following table summarizes debt and finance lease obligations (in thousands): September 28, March 30, 2007-1 securitized financings (acquired as part of the Palm Harbor transaction) $ — $ 18,364 Secured credit facilities 10,974 11,289 Other secured financings 4,217 4,487 Finance lease liabilities 1,043 — $ 16,234 $ 34,140 Prior to the Company's acquisition of Palm Harbor and CountryPlace, CountryPlace completed an initial securitization (2005-1) and a second securitized borrowing (2007-1). The Company repurchased these loan portfolios in January 2019 and August 2019, respectively, eliminating the related securitized financings. Acquired securitized financings were recorded at fair value at the time of acquisition, which resulted in a discount, and subsequently are accounted for in a manner similar to FASB Accounting Standards Codification ("ASC") 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality to accrete the discount. Prior to the repurchase, over the life of the loans, the Company estimated cash flows expected to be paid on the securitized financings. The Company evaluated at the balance sheet date whether the present value of its securitized financings, determined using the effective interest rate, had increased or decreased. The amount of accretable yield recognized on a prospective basis over the securitized financing's remaining life was adjusted by the present value of any subsequent change in cash flows expected to be paid. The changes in accretable yield on securitized financings were as follows (in thousands): Three Months Ended Six Months Ended September 28, September 29, September 28, September 29, Balance at the beginning of the period $ 206 $ 2,697 $ 491 $ 3,515 Accretion (206 ) (774 ) (577 ) (1,577 ) Adjustment to cash flows — (89 ) 86 (104 ) Balance at the end of the period $ — $ 1,834 $ — $ 1,834 The Company has entered into secured credit facilities with independent third party banks with draw periods from one to fifteen months and maturity dates of ten years after the expiration of the draw periods. This draw down period expired in September 2019. The proceeds are used by the Company to originate and hold consumer home-only loans secured by manufactured homes, which are pledged as collateral to the facilities. Upon completion of the draw down period, the facilities are converted into an amortizing loan based on a 20 or 25 year amortization period with a balloon payment due upon maturity . The maximum advance for loans under this program is 80% of the outstanding collateral principal balance, with the Company providing the remaining funds. As of September 28, 2019 , the outstanding balance of the converted loans was $11.0 million at a weighted average interest rate of 4.91% . See Note 9 for further discussion of the finance lease obligations. |
Reinsurance
Reinsurance | 6 Months Ended |
Sep. 28, 2019 | |
Insurance [Abstract] | |
Reinsurance | Reinsurance Standard Casualty is primarily a specialty writer of manufactured home physical damage insurance. Certain of Standard Casualty's premiums and benefits are assumed from and ceded to other insurance companies under various reinsurance agreements. The ceded reinsurance agreements provide Standard Casualty with increased capacity to write larger risks and maintain its exposure to loss within its capital resources. Standard Casualty remains obligated for amounts ceded in the event that the reinsurers do not meet their obligations. Substantially all of Standard Casualty's assumed reinsurance is with one entity. The effects of reinsurance on premiums written and earned were as follows (in thousands): Three Months Ended September 28, 2019 September 29, 2018 Written Earned Written Earned Direct premiums $ 4,179 $ 4,653 $ 3,820 $ 4,249 Assumed premiums—nonaffiliate 6,760 6,592 6,280 6,350 Ceded premiums—nonaffiliate (3,029 ) (3,029 ) (3,135 ) (3,135 ) Net premiums $ 7,910 $ 8,216 $ 6,965 $ 7,464 Six Months Ended September 28, 2019 September 29, 2018 Written Earned Written Earned Direct premiums $ 9,212 $ 9,223 $ 8,361 $ 8,460 Assumed premiums—nonaffiliate 14,273 13,027 13,214 12,584 Ceded premiums—nonaffiliate (6,016 ) (6,016 ) (5,982 ) (5,982 ) Net premiums $ 17,469 $ 16,234 $ 15,593 $ 15,062 Typical insurance policies written or assumed by Standard Casualty have a maximum coverage of $300,000 per claim, of which Standard Casualty cedes $175,000 of the risk of loss per reinsurance. Therefore, Standard Casualty's risk of loss is limited to $125,000 per claim on typical policies, subject to the reinsurers meeting their obligations. After this limit, amounts are recoverable by Standard Casualty through reinsurance for catastrophic losses in excess of $1.5 million per occurrence, up to a maximum of $43.5 million in the aggregate. Purchasing reinsurance contracts protects Standard Casualty from frequency and/or severity of losses incurred on insurance policies issued, such as in the case of a catastrophe that generates a large number of serious claims on multiple policies at the same time. Under these agreements, the Company may be required to repurchase and reestablish its reinsurance contracts for the remainder of the year to the extent that they have been utilized. The Company has reinsurance reinstatement premium protection coverage, which will assist in reducing premium repurchase expense in the event of a catastrophic weather claim. |
Income Taxes
Income Taxes | 6 Months Ended |
Sep. 28, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company's deferred tax assets primarily result from financial statement accruals not currently deductible for tax purposes and differences in the acquired basis of certain assets, and its deferred tax liabilities primarily result from tax amortization of goodwill and other intangible assets. The Company complies with the provisions of ASC 740, Income Taxes ("ASC 740"), which clarifies the accounting for income taxes by prescribing a minimum recognition threshold a tax position is required to meet before recognition in the financial statements. ASC 740 also provides guidance on derecognizing, measurement, classification, interest and penalties, accounting in interim periods, disclosure and transition. The amount of unrecognized tax benefits recorded by the Company is insignificant and the impact on the effective tax rate if all unrecognized tax benefits were recognized would also be insignificant. The Company classifies interest and penalties related to unrecognized tax benefits in tax expense. Income tax returns are filed in the U.S. federal jurisdiction and in several state jurisdictions. In general, the Company is no longer subject to examination by the Internal Revenue Service for years before fiscal year 2017 or state and local income tax examinations by tax authorities for years before fiscal year 2015. The Company believes that its income tax filing positions and deductions will be sustained on audit and does not anticipate any adjustments that will result in a material change to the Company's financial position. The total amount of unrecognized tax benefit related to any particular tax position is not anticipated to change significantly within the next 12 months. The provision for income taxes generally represents income taxes paid or payable for the current year plus the change in deferred taxes during the year. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Sep. 28, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Repurchase Contingencies . The Company is contingently liable under terms of repurchase agreements with financial institutions providing inventory financing for independent distributors of its products. These arrangements, which are customary in the industry, provide for the repurchase of products sold to distributors in the event of default by the distributor. The risk of loss under these agreements is spread over numerous distributors. The price the Company is obligated to pay generally declines over the period of the agreement ( generally 18 to 36 months, calculated from the date of sale to the distributor ) and the risk of loss is further reduced by the resale value of the repurchased homes. The maximum amount for which the Company was contingently liable under such agreements approximated $ 93.8 million at September 28, 2019 , without reduction for the resale value of the homes. The Company applies ASC 460, Guarantees ("ASC 460"), and ASC 450-20, Loss Contingencies ("ASC 450-20"), to account for its liability for repurchase commitments. Under the provisions of ASC 460, the Company records the greater of the estimated value of the non-contingent obligation (accounted for pursuant to ASC 460) or a contingent liability for each repurchase arrangement (accounted for under the provisions of ASC 450-20). The Company recorded an estimated liability of $3.0 million and $2.4 million at September 28, 2019 and March 30, 2019 , respectively, related to the commitments pertaining to these agreements. Letters of Credit. To secure certain reinsurance contracts, Standard Casualty maintains an irrevocable letter of credit of $11.0 million to provide assurance that Standard Casualty will fulfill its reinsurance obligations. This letter of credit is secured by certain of the Company's investments. There were no amounts outstanding at either September 28, 2019 or March 30, 2019 . Construction-Period Mortgages. CountryPlace funds construction-period mortgages through periodic advances during home construction. At the time of initial funding, CountryPlace commits to fully fund the loan contract in accordance with a predetermined schedule. Subsequent advances are contingent upon the performance of contractual obligations by the seller of the home and the borrower. Cumulative advances on construction-period mortgages are carried on the Consolidated Balance Sheets at the amount advanced less a valuation allowance, and are included in Consumer loans receivable, net. The total loan contract amount, less cumulative advances, represents an off-balance sheet contingent commitment of CountryPlace to fund future advances. Loan contracts with off-balance sheet commitments are summarized below (in thousands): September 28, March 30, Construction loan contract amount $ 32,822 $ 28,230 Cumulative advances (14,261 ) (12,883 ) Remaining construction contingent commitment $ 18,561 $ 15,347 Representations and Warranties of Mortgages Sold . CountryPlace sells loans to Government-Sponsored Enterprises ("GSEs") and whole-loan purchasers and finances certain loans with long-term credit facilities secured by the respective loans. In connection with these activities, CountryPlace provides to the GSEs, whole-loan purchasers and lenders, representations and warranties related to the loans sold or financed. These representations and warranties generally relate to the ownership of the loan, the validity of the lien securing the loan, the loan's compliance with the criteria for inclusion in the sale transactions, including compliance with underwriting standards or loan criteria established by the buyer, and CountryPlace's ability to deliver documentation in compliance with applicable laws. Generally, representations and warranties may be enforced at any time over the life of the loan. Upon a breach of a representation, CountryPlace may be required to repurchase the loan or to indemnify a party for incurred losses. Repurchase demands and claims for indemnification payments are reviewed on a loan-by-loan basis to validate if there has been a breach requiring repurchase. CountryPlace manages the risk of repurchase through underwriting and quality assurance practices and by servicing the mortgage loans to investor standards. CountryPlace maintains a reserve for these contingent repurchase and indemnification obligations. This reserve of $1.0 million as of September 28, 2019 and March 30, 2019 , included in Accrued liabilities, reflects management's estimate of probable loss. CountryPlace considers a variety of assumptions, including borrower performance (both actual and estimated future defaults), historical repurchase demands and loan default rates to estimate the liability for loan repurchases and indemnifications. During the six months ended September 28, 2019 , no claim request resulted in the execution of an indemnification agreement or in the repurchase of a loan. Interest Rate Lock Commitments . In originating loans for sale, CountryPlace issues interest rate lock commitments ("IRLCs") to prospective borrowers. These IRLCs represent an agreement to extend credit to a loan applicant, whereby the interest rate on the loan is set prior to loan closing or sale. These IRLCs bind CountryPlace to fund the approved loan at the specified rate regardless of whether interest rates or market prices for similar loans have changed between the commitment date and the closing date. As such, outstanding IRLCs are subject to interest rate risk and related loan sale price risk during the period from the date of the IRLC through the earlier of the loan sale date or IRLC expiration date. The loan commitments generally range between 30 and 180 days; however, borrowers are not obligated to close the related loans. As a result, CountryPlace is subject to fallout risk related to IRLCs, which is realized if approved borrowers choose not to close on the loans within the terms of the IRLCs unless the commitment is successfully paired with another loan that may mitigate losses from fallout. As of September 28, 2019 , CountryPlace had outstanding IRLCs with a notional amount of $ 18.6 million , which are recorded at fair value in accordance with ASC 815, Derivatives and Hedging ("ASC 815"). ASC 815 clarifies that the expected net future cash flows related to the associated servicing of a loan should be included in the measurement of all written loan commitments that are accounted for at fair value through earnings. The estimated fair value of IRLCs is recorded in Prepaid expenses and other current assets in the Consolidated Balance Sheets. The fair value of IRLCs is based on the value of the underlying loan adjusted for: (1) estimated cost to complete and originate the loan and (2) the estimated percentage of IRLCs that will result in closed loans. The initial and subsequent changes in the value of IRLCs are a component of gain (loss) on loans held for sale. During the three and six months ended September 28, 2019 , CountryPlace recognized losses of $2,000 and $3,000 respectively, on outstanding IRLCs. During the three and six months ended September 29, 2018 , CountryPlace recognized losses of $8,000 and gains of $12,000 , respectively, on outstanding IRLCs. Forward Sales Commitments . CountryPlace manages the risk profiles of a portion of its outstanding IRLCs and mortgage loans held for sale by entering into forward sales of mortgage-backed securities ("MBS") and whole loan sale commitments. As of September 28, 2019 , CountryPlace had $53.9 million in outstanding notional forward sales of MBSs and forward sales commitments. Commitments for forward sales of whole loans are typically in an amount proportionate with the amount of IRLCs expected to close in particular time frames, assuming no change in mortgage interest rates, for the respective loan products intended for whole loan sale. The estimated fair values of forward sales of MBS and forward sale commitments are based on quoted market values and are recorded within Prepaid expenses and other current assets in the Consolidated Balance Sheets. During the three and six months ended September 28, 2019 , CountryPlace recognized gains of $49,000 and $84,000 on forward sales and whole loan sale commitments, respectively. CountryPlace recognized gains of $237,000 and $62,000 on forward sales and whole loan sale commitments during the three and six months ended September 29, 2018 , respectively. Legal Matters. Since August 2018, the Company has been cooperating with an investigation by the SEC's enforcement staff in Los Angeles regarding trading in another public company’s securities by the Company, its former Chief Executive Officer and others outside the Company. The Audit Committee of the Board of Directors conducted and completed an internal investigation led by independent legal counsel and other advisers to assess the Company's trading. The results of the Audit Committee’s work have been shared with the Company’s auditors, listing exchange and with the SEC staff. The Company intends to continue cooperating with the SEC in this matter. The Company is party to certain other legal proceedings that arise in the ordinary course and are incidental to its business. Certain of the claims pending against the Company in these proceedings allege, among other things, breach of contract, product liability and warranty, personal injury and employment. Although litigation is inherently uncertain, based on past experience and the information currently available, management does not believe that the currently pending and threatened litigation or claims will have a material adverse effect on the Company's consolidated financial position, liquidity or results of operations. However, future events or circumstances that may currently be unknown to management will determine whether the resolution of pending or threatened litigation or claims will ultimately have a material effect on the Company's consolidated financial position, liquidity or results of operations in any future reporting periods. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Sep. 28, 2019 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Stockholders' Equity The following table represents changes in stockholders' equity for each quarterly period during the six months ended September 28, 2019 (dollars in thousands): Additional paid-in capital Retained earnings Accumulated other comprehensive income (loss) Total Common Stock Shares Amount Balance, March 30, 2019 9,098,320 $ 91 $ 249,447 $ 280,078 $ (28 ) $ 529,588 Net income — — — 21,282 — 21,282 Issuance of common stock under stock incentive plans 13,304 — (1,252 ) — — (1,252 ) Stock-based compensation — — 630 — — 630 Other comprehensive income, net — — — — 89 89 Balance, June 29, 2019 9,111,624 $ 91 $ 248,825 $ 301,360 $ 61 $ 550,337 Net income — — — 20,885 — 20,885 Issuance of common stock under stock incentive plans 15,842 — 941 — — 941 Stock-based compensation — — 818 — — 818 Other comprehensive income, net — — — — 23 23 Balance, September 28, 2019 9,127,466 $ 91 $ 250,584 $ 322,245 $ 84 $ 573,004 The following table represents changes in stockholders' equity for each quarterly period during the six months ended September 29, 2018 (dollars in thousands): Additional paid-in capital Retained earnings Accumulated other comprehensive income (loss) Total Common Stock Shares Amount Balance, March 31, 2018 9,044,858 $ 90 $ 246,197 $ 209,381 $ 1,438 $ 457,106 Cumulative effect of implementing ASU 2016-01, net — — — 1,621 (1,621 ) — Cumulative effect of implementing ASC 606, net — — — 454 — 454 Net income — — — 19,691 — 19,691 Issuance of common stock under stock incentive plans 16,448 1 (2,169 ) — — (2,168 ) Stock-based compensation — — 599 — — 599 Other comprehensive income, net — — — — 5 5 Balance, June 30, 2018 9,061,306 $ 91 $ 244,627 $ 231,147 $ (178 ) $ 475,687 Net income — — — 15,576 — 15,576 Issuance of common stock under stock incentive plans 36,053 — 1,995 — — 1,995 Stock-based compensation — — 1,516 — — 1,516 Other comprehensive loss, net — — — — (26 ) (26 ) Balance, September 29, 2018 9,097,359 $ 91 $ 248,138 $ 246,723 $ (204 ) $ 494,748 |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Sep. 28, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The Company maintains stock incentive plans whereby stock option grants or awards of restricted stock may be made to certain officers, directors and key employees. The plans, which are shareholder approved, permit the award of up to 1,650,000 shares of the Company's common stock, of which 229,347 shares were still available for grant as of September 28, 2019 . When options are exercised or restricted stock vests, new shares of the Company's common stock are issued, or the restricted stock shares are no longer restricted. Awards may not be granted below 100% of the fair market value of the Company's common stock at the date of grant and generally expire seven years from the date of grant. Stock options and awards of restricted stock vest over a defined period or based on certain performance criteria, as determined by the plan administrator (the Compensation Committee of the Board of Directors, which consists of independent directors), but typically is no more than five years . The stock incentive plans provide for accelerated vesting of stock options and removal of restrictions on restricted stock awards upon a change in control (as defined in the plans). Stock-based compensation cost charged against income for the three and six months ended September 28, 2019 was $818,000 and $1.4 million , respectively. The Company recorded stock-based compensation expense of $1.5 million and $2.1 million for the three and six months ended September 29, 2018 , respectively. As of September 28, 2019 , total unrecognized compensation cost related to stock options was approximately $6.6 million and the related weighted-average period over which it is expected to be recognized is approximately 3.06 years . Stock Options. The fair value of each stock option award is estimated on the date of the grant using the Black-Scholes-Merton option pricing model, which requires the input of assumptions. The Company estimates the risk-free interest rate based on the U.S. Treasury security rate in effect at the time of the grant. The expected life of the options, volatility and dividend rates are estimated based on historical data. The following table summarizes stock option activity for the six months ended September 28, 2019 : Number of Options Outstanding at March 30, 2019 411,111 Granted 74,450 Exercised (47,724 ) Canceled or expired — Outstanding at September 28, 2019 437,837 Exercisable at September 28, 2019 219,838 Restricted Stock Awards. The fair value of restricted stock awards is estimated as the closing price of the Company's common stock on the date of grant. A summary of restricted stock award activity is as follows: Number of Shares Performance-Based Awards Service-Based Awards Total Outstanding at March 30, 2019 — — — Awarded 7,200 4,650 11,850 Released — (400 ) (400 ) Canceled or expired — — — Outstanding at September 28, 2019 7,200 4,250 11,450 Unvested target stock awards that vest based upon performance conditions through fiscal year 2022 7,200 |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Sep. 28, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic earnings per common share is computed based on the weighted-average number of common shares outstanding during the reporting period. Diluted earnings per common share is computed based on the combination of dilutive common share equivalents, comprised of shares issuable under the Company's stock-based compensation plans and the weighted-average number of common shares outstanding during the reporting period. Dilutive common share equivalents include the dilutive effect of in-the-money options to purchase shares, which is calculated based on the average share price for each period using the treasury stock method. The following table sets forth the computation of basic and diluted earnings per share (dollars in thousands, except share and per share amounts): Three Months Ended Six Months Ended September 28, September 29, September 28, September 29, Net income $ 20,885 $ 15,576 $ 42,167 $ 35,267 Weighted average shares outstanding: Basic 9,119,835 9,079,679 9,111,260 9,064,007 Effect of dilutive securities 146,250 224,509 130,574 223,723 Diluted 9,266,085 9,304,188 9,241,834 9,287,730 Net income per share: Basic $ 2.29 $ 1.72 $ 4.63 $ 3.89 Diluted $ 2.25 $ 1.67 $ 4.56 $ 3.80 Anti-dilutive common stock equivalents excluded from the computation of diluted earnings per share for the three and six months ended September 28, 2019 were 22,536 and 42,401 , respectively. In addition, 11,450 outstanding restricted share awards were excluded from the calculation of diluted earnings per share for the six months ended September 28, 2019 because the underlying vesting criteria had not yet been met. For the three and six months ended September 29, 2018 , anti-dilutive common stock equivalents excluded from the computation of diluted earnings per share were 3,751 and 6,682 , respectively. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Sep. 28, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The book value and estimated fair value of the Company's financial instruments were as follows (in thousands): September 28, 2019 March 30, 2019 Book Value Estimated Fair Value Book Value Estimated Fair Value Available-for-sale debt securities (1) $ 12,181 $ 12,181 $ 13,408 $ 13,408 Marketable equity securities (1) 12,649 12,649 11,073 11,073 Non-marketable equity investments (2) 20,926 20,926 20,276 20,276 Consumer loans receivable (3) 88,952 104,294 86,785 101,001 Interest rate lock commitment derivatives (4) 8 8 11 11 Forward loan sale commitment derivatives (4) 25 25 (59 ) (59 ) Commercial loans receivable (5) 46,259 46,801 43,006 43,582 Securitized financings and other (6) (16,234 ) (19,755 ) (34,140 ) (38,101 ) (1) For Level 1 classified securities, the fair value is based on quoted market prices. The fair value of Level 2 securities is based on other inputs, as further described below. (2) The fair value approximates book value based on the non-marketable nature of the investments. (3) Includes consumer loans receivable held for investment, held for sale and construction advances. The fair value of the loans held for investment is based on the discounted value of the remaining principal and interest cash flows. The fair value of the loans held for sale is estimated based on recent GSE mortgage-backed bond prices. The fair value of the construction advances approximates book value and the sales price of these loans. (4) The fair values are based on changes in GSE mortgage-backed bond prices and, additionally for IRLCs, pull through rates. (5) The fair value is estimated using market interest rates of comparable loans. (6) The fair value is estimated using recent public transactions of similar asset-backed securities. In accordance with ASC 820, Fair Value Measurements and Disclosures ("ASC 820"), fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value: Level 1 – Quoted prices in active markets for identical assets or liabilities. Level 2 – Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The Company utilizes the market approach to measure fair value for its financial assets and liabilities. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. When the Company uses observable market prices for identical securities that are traded in less active markets, it classifies such securities as Level 2. When observable market prices for identical securities are not available, the Company prices its marketable debt instruments using non-binding market consensus prices that are corroborated with observable market data; quoted market prices for similar instruments; or pricing models, such as a discounted cash flow model, with all significant inputs derived from or corroborated with observable market data. Non-binding market consensus prices are based on the proprietary valuation models of pricing providers or brokers. These valuation models incorporate a number of inputs, including non-binding and binding broker quotes; observable market prices for identical or similar securities; and the internal assumptions of pricing providers or brokers that use observable market inputs and, to a lesser degree, unobservable market inputs. Assets and liabilities measured at fair value on a recurring basis are summarized below (in thousands): September 28, 2019 Total Level 1 Level 2 Level 3 Securities issued by the U.S Treasury and Government (1) $ 300 $ — $ 300 $ — Mortgage-backed securities (1) 6,142 — 6,142 — Securities issued by states and political subdivisions (1) 3,842 — 3,842 — Corporate debt securities (1) 1,897 — 1,897 — Marketable equity securities (2) 12,649 12,649 — — Interest rate lock commitment derivatives (3) 8 — — 8 Forward loan sale commitment derivatives (3) 25 — — 25 Mortgage servicing rights (4) 1,278 — — 1,278 March 30, 2019 Total Level 1 Level 2 Level 3 Securities issued by the U.S Treasury and Government (1) $ 297 $ — $ 297 $ — Mortgage-backed securities (1) 6,509 — 6,509 — Securities issued by states and political subdivisions (1) 4,983 — 4,983 — Corporate debt securities (1) 1,619 — 1,619 — Marketable equity securities (2) 11,073 11,073 — — Interest rate lock commitment derivatives (3) 11 — — 11 Forward loan sale commitment derivatives (3) (59 ) — — (59 ) Mortgage servicing rights (4) 1,372 — — 1,372 (1) Unrealized gains or losses on investments are recorded in Accumulated other comprehensive income (loss) at each measurement date. (2) Unrealized gains or losses on investments are recorded in earnings at each measurement date. (3) Gains or losses on derivatives are recognized in current period earnings through Cost of sales. (4) Changes in the fair value of mortgage servicing rights are recognized in the current period earnings through Net revenue. No transfers between Level 1, Level 2 or Level 3 occurred during the six months ended September 28, 2019 . The Company's policy regarding the recording of transfers between levels is to record any such transfers at the end of the reporting period. Financial instruments for which fair value is disclosed but not required to be recognized in the balance sheet on a recurring basis are summarized below (in thousands): September 28, 2019 Total Level 1 Level 2 Level 3 Loans held for investment $ 72,546 $ — $ — $ 72,546 Loans held for sale 17,487 — — 17,487 Loans held—construction advances 14,261 — — 14,261 Commercial loans receivable 46,801 — — 46,801 Securitized financings and other (19,755 ) — (19,755 ) — Non-marketable equity investments 20,926 — — 20,926 March 30, 2019 Total Level 1 Level 2 Level 3 Loans held for investment $ 76,319 $ — $ — $ 76,319 Loans held for sale 11,799 — — 11,799 Loans held—construction advances 12,883 — — 12,883 Commercial loans receivable 43,582 — — 43,582 Securitized financings and other (38,101 ) — (38,101 ) — Non-marketable equity investments 20,276 — — 20,276 No recent sales have been executed in an orderly market of manufactured home loan portfolios with comparable product features, credit characteristics or performance. Therefore, loans held for investment are measured using Level 3 inputs that are calculated using estimated discounted future cash flows from the evaluation of loan credit quality and performance history to determine expected prepayments and defaults on the portfolio, discounted with rates considered to reflect current market conditions. Loans held for sale are measured at the lower of cost or fair value using inputs that consist of quoted market prices for mortgage-backed securities or investor purchase commitments for similar types of loan commitments on hand from investors. These loans are held for relatively short periods, typically no more than 45 days . As a result, changes in loan-specific credit risk are not a significant component of the change in fair value and changes are largely driven by changes in interest rates or investor yield requirements. The cost of loans held for sale was lower than the fair value as of September 28, 2019 . As noted above, activity in the manufactured housing asset-backed securities market is infrequent with no reliable market price information. As such, to determine the fair value of securitized financings, management evaluates the credit quality and performance history of the underlying loan assets to estimate the expected prepayment of the debt and credit spreads, based on market activity for similar rated bonds from other asset classes with similar durations. The Company records impairment losses on long-lived assets held for sale when the fair value of such long-lived assets is below their carrying values. The Company records impairment charges on long-lived assets used in operations when events and circumstances indicate that long-lived assets might be impaired and the undiscounted cash flows estimated to be generated by those assets are less than their carrying amounts. No impairment charges were recorded during the six months ended September 28, 2019 . Mortgage Servicing . Mortgage Servicing Rights ("MSRs") are the rights to receive a portion of the interest coupon and fees collected from the mortgagors for performing specified mortgage servicing activities, which consist of collecting loan payments, remitting principal and interest payments to investors, managing escrow accounts, performing loss mitigation activities on behalf of investors and otherwise administering the loan servicing portfolio. MSRs are initially recorded at fair value. Changes in fair value subsequent to the initial capitalization are recorded in the Company's results of operations. The Company recognizes MSRs on all loans sold to investors that meet the requirements for sale accounting and for which servicing rights are retained. The Company applies fair value accounting to MSRs, with all changes in fair value recorded to Net revenue in accordance with ASC 860-50, Servicing Assets and Liabilities . The fair value of MSRs is based on the present value of the expected future cash flows related to servicing these loans. The revenue components of the cash flows are servicing fees, interest earned on custodial accounts and other ancillary income. The expense components include operating costs related to servicing the loans (including delinquency and foreclosure costs) and interest expenses on servicer advances that are consistent with the assumptions major market participants use in valuing MSRs. The expected cash flows are primarily impacted by prepayment estimates, delinquencies and market discounts. Generally, the value of MSRs is expected to increase when interest rates rise and decrease when interest rates decline, due to the effect those changes in interest rates have on prepayment estimates. Other factors noted above as well as the overall market demand for MSRs may also affect the valuation. September 28, March 30, Number of loans serviced with MSRs 4,596 4,557 Weighted average servicing fee (basis points) 31.12 31.59 Capitalized servicing multiple 72.30 % 77.97 % Capitalized servicing rate (basis points) 22.50 24.63 Serviced portfolio with MSRs (in thousands) $ 567,886 $ 556,934 Mortgage servicing rights (in thousands) $ 1,278 $ 1,372 |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Sep. 28, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions The Company has non-marketable equity investments in other distribution operations outside of Company-owned retail locations. In the ordinary course of business, the Company sells homes and lends to certain of these operations through its commercial lending programs. For the three and six months ended September 28, 2019 , the total sales to related parties were $10.4 million and $23.8 million , respectively. Total sales to related parties for the three and six months ended September 29, 2018 were $9.5 million and $21.2 million , respectively. As of September 28, 2019 and March 30, 2019 , there were a total of $8.1 million and $6.2 million of commercial loans outstanding with certain related parties, respectively. |
Acquisition of Destiny Homes
Acquisition of Destiny Homes | 6 Months Ended |
Sep. 28, 2019 | |
Business Combinations [Abstract] | |
Acquisition of Destiny Homes | Acquisition of Destiny Homes On August 2, 2019, the Company purchased certain manufactured housing assets and assumed certain liabilities of Destiny Homes, which operates one manufacturing facility located in Moultrie, Georgia and produces and distributes manufactured and modular homes through a network of independent retailers in the Southeastern United States, further expanding the Company’s reach. The transaction was accounted for as business combination and the results of operations have been included in the accompanying consolidated financial statements since the date of acquisition. The acquisition-date fair value of the total consideration was $16.5 million , which is subject to future adjustments. Neither Destiny Homes nor the Company incurred debt in connection with the purchase or subsequent operations. The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the acquisition date (in thousands). Certain estimated values are not yet finalized and are subject to change, which could be significant. The allocation of the purchase price is still preliminary due to the short duration since the acquisition date and will be finalized upon completion of the analysis of the fair values of Destiny Home’s assets and specified liabilities. The Company will finalize the amounts recognized as we obtain the information necessary to complete the analysis. We expect to finalize these amounts as soon as possible but no later than one year from the acquisition date. August 2, Accounts receivable $ 908 Inventories 5,508 Property, plant and equipment, net 5,244 Other current assets 3,290 Intangible assets (1) 5,940 Total identifiable assets acquired $ 20,890 Accounts payable and accrued liabilities $ (6,527 ) Net identifiable assets acquired 14,363 Goodwill 2,104 Net assets acquired $ 16,467 (1) Includes $1.7 million assigned to trademarks and trade names, which are considered indefinite lived intangible assets and are not subject to amortization and $4.2 million assigned to customer-related intangible subject to a useful life of 10 years amortized on a straight-line basis. Since the acquisition date, Destiny Homes contributed net revenue of $6.4 million and reduced consolidated net income on the Company's Consolidated Statements of Comprehensive Income for the three months ended September 28, 2019 by $136,000 . Net income from the Destiny Homes acquisition included required purchase accounting adjustments whereby home product inventory is recorded at fair value upon acquisition. This had the effect of eliminating profits from the related home sales after the acquisition date. These purchase accounting adjustments are expected to continue into subsequent periods. Pro Forma Impact of Acquisition . The following table presents supplemental pro forma information as if the acquisition of Destiny Homes had occurred on April 1, 2018 (in thousands, except per share data): Three Months Ended Six Months Ended September 28, September 29, September 28, September 29, Net revenue $ 270,239 $ 252,925 $ 543,951 $ 511,369 Net income 21,165 16,250 43,807 37,464 Diluted net income per share 2.28 1.75 4.74 4.03 |
Business Segment Information
Business Segment Information | 6 Months Ended |
Sep. 28, 2019 | |
Segment Reporting [Abstract] | |
Business Segment Information | Business Segment Information The Company operates principally in two segments: (1) factory-built housing, which includes wholesale and retail systems-built housing operations and (2) financial services, which includes manufactured housing consumer finance and insurance. The following table details Net revenue and Income before income taxes by segment (in thousands): Three Months Ended Six Months Ended September 28, September 29, September 28, September 29, Net revenue: Factory-built housing $ 252,690 $ 227,094 $ 501,458 $ 459,856 Financial services 15,985 14,436 31,259 28,077 $ 268,675 $ 241,530 $ 532,717 $ 487,933 Income before income taxes: Factory-built housing $ 22,463 $ 16,880 $ 46,776 $ 38,488 Financial services 4,792 2,637 7,841 5,165 $ 27,255 $ 19,517 $ 54,617 $ 43,653 |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Sep. 28, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Principles of Consolidation | The accompanying unaudited Consolidated Financial Statements of Cavco Industries, Inc. and its subsidiaries (collectively, the "Company" or "Cavco") have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the "SEC") for Quarterly Reports on Form 10-Q and Article 10 of SEC Regulation S-X. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles ("GAAP") have been condensed or omitted pursuant to such rules and regulations. In the opinion of management, these financial statements include all adjustments, including normal recurring adjustments, that Cavco believes are necessary to fairly state the results for the periods presented. Certain prior period amounts have been reclassified to conform to current period classification. The Company has evaluated subsequent events after the balance sheet date through the date of the filing of this report with the SEC, and there were no disclosable subsequent events. These Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and the Notes to the Consolidated Financial Statements included in the Company's 2019 Annual Report on Form 10-K for the year ended March 30, 2019 , filed with the SEC on May 28, 2019 ("Form 10-K"). The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the Consolidated Financial Statements and the accompanying Notes to the Consolidated Financial Statements ("Notes"). Actual results could differ from those estimates. The Consolidated Statements of Comprehensive Income and Consolidated Statements of Cash Flows for the interim periods are not necessarily indicative of the results or cash flows for the full year. The Company operates on a 52-53 week fiscal year ending on the Saturday nearest to March 31 st of each year. Each fiscal quarter consists of 13 weeks, with an occasional fourth quarter extending to 14 weeks, if necessary, for the fiscal year to end on the Saturday nearest to March 31 st . The Company's current fiscal year will end on March 28, 2020 . The Company operates principally in two segments: (1) factory-built housing, which includes wholesale and retail systems-built housing operations, and (2) financial services, which includes manufactured housing consumer finance and insurance. The Company designs and builds a wide variety of affordable manufactured homes, modular homes and park model RVs in 20 factories located throughout the United States, which are sold to a network of independent distributors, through the Company's 39 Company-owned retail stores and to community owners and developers. Our financial services group is comprised of a finance subsidiary, CountryPlace Acceptance Corp. ("CountryPlace"), and an insurance subsidiary, Standard Casualty Co. ("Standard Casualty"). CountryPlace is an approved Federal National Mortgage Association and Federal Home Loan Mortgage Corporation seller/servicer and a Government National Mortgage Association mortgage-backed securities issuer that offers conforming mortgages, non-conforming mortgages and home-only loans to purchasers of factory-built homes. Standard Casualty provides property and casualty insurance primarily to owners of manufactured homes. |
Adoption of New Accounting Standards | Adoption of New Accounting Standards. In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-02, Leases ("Topic 842"). This guidance amends previous accounting considerations and treatments for leases to increase transparency and comparability among organizations by requiring the recognition of right-of-use ("ROU") assets and lease liabilities on the balance sheet for both finance leases and operating leases. For finance leases, the lessee recognizes interest expense and amortization of the ROU asset and for operating leases, the lessee recognizes straight-line lease expense. Effective March 31, 2019, the Company adopted Topic 842 using the modified retrospective transition approach. This approach provides a method for recording existing leases at adoption, without restating comparative periods. The Company also elected to adopt the package of practical expedients provided in the guidance, which allowed the Company to retain the historical classification for each lease, and provided relief from reviewing existing or expired contracts to determine if they contain leases under the new guidance. In addition, an accounting policy election was made to account for non-lease and lease components as a single lease component for all asset classes. The Company also made an accounting policy election to exclude ROU assets and lease liabilities for leases with an initial term of twelve months or less from the Consolidated Balance Sheet. Adoption of the new standard resulted in an addition of net operating lease ROU assets and lease liabilities of $13.0 million and $13.5 million , respectively, to the Company’s Consolidated Balance Sheet as of March 31, 2019. The difference between the additional lease assets and lease liabilities reflects existing accrued rent balances that were reclassified to the operating lease ROU asset as of March 31, 2019. The standard did not materially impact our consolidated Net income and had no impact on cash flows. See Note 9 for additional information. |
Accounting Standards Issued But Not Yet Adopted | Accounting Standards Issued But Not Yet Adopted. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ("ASU 2016-13"). ASU 2016-13 changes the impairment model for most financial assets and certain other instruments, which will now require a forward-looking impairment model based on expected losses rather than incurred losses. The guidance also requires increased disclosures. ASU 2016-13 will be effective beginning with the first quarter of the Company's fiscal year 2021 and will be applied using a modified retrospective transition method. While early adoption is permitted, the Company does not plan to early adopt the guidance. The Company is currently evaluating the effect ASU 2016-13 will have on the Company's Consolidated Financial Statements and disclosures. From time to time, new accounting pronouncements are issued by the FASB and other regulatory bodies that are adopted by the Company as of the specified effective dates. Unless otherwise discussed, management believes that the impact of recently issued standards, which are not yet effective, will not have a material impact on the Company's Consolidated Financial Statements upon adoption. |
Significant Accounting Policies | For a description of other significant accounting policies used by the Company in the preparation of its Consolidated Financial Statements, please refer to Note 1 of the Notes to Consolidated Financial Statements included in the Form 10-K. |
Debt and Finance Lease Obliga_2
Debt and Finance Lease Obligations Debt Obligations (Policies) | 6 Months Ended |
Sep. 28, 2019 | |
Debt Disclosure [Abstract] | |
Accounting policy for debt | Acquired securitized financings were recorded at fair value at the time of acquisition, which resulted in a discount, and subsequently are accounted for in a manner similar to FASB Accounting Standards Codification ("ASC") 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality to accrete the discount. |
Commitments and Contingencies (
Commitments and Contingencies (Policies) | 6 Months Ended |
Sep. 28, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Repurchase Contingencies | Repurchase Contingencies . The Company is contingently liable under terms of repurchase agreements with financial institutions providing inventory financing for independent distributors of its products. These arrangements, which are customary in the industry, provide for the repurchase of products sold to distributors in the event of default by the distributor. The risk of loss under these agreements is spread over numerous distributors. The price the Company is obligated to pay generally declines over the period of the agreement ( generally 18 to 36 months, calculated from the date of sale to the distributor ) and the risk of loss is further reduced by the resale value of the repurchased homes. The maximum amount for which the Company was contingently liable under such agreements approximated $ 93.8 million at September 28, 2019 , without reduction for the resale value of the homes. The Company applies ASC 460, Guarantees ("ASC 460"), and ASC 450-20, Loss Contingencies ("ASC 450-20"), to account for its liability for repurchase commitments. Under the provisions of ASC 460, the Company records the greater of the estimated value of the non-contingent obligation (accounted for pursuant to ASC 460) or a contingent liability for each repurchase arrangement (accounted for under the provisions of ASC 450-20). The Company recorded an estimated liability of $3.0 million and $2.4 million at September 28, 2019 and March 30, 2019 , respectively, related to the commitments pertaining to these agreements. |
Representations and Warranties of Mortgages Sold | Representations and Warranties of Mortgages Sold . CountryPlace sells loans to Government-Sponsored Enterprises ("GSEs") and whole-loan purchasers and finances certain loans with long-term credit facilities secured by the respective loans. In connection with these activities, CountryPlace provides to the GSEs, whole-loan purchasers and lenders, representations and warranties related to the loans sold or financed. These representations and warranties generally relate to the ownership of the loan, the validity of the lien securing the loan, the loan's compliance with the criteria for inclusion in the sale transactions, including compliance with underwriting standards or loan criteria established by the buyer, and CountryPlace's ability to deliver documentation in compliance with applicable laws. Generally, representations and warranties may be enforced at any time over the life of the loan. Upon a breach of a representation, CountryPlace may be required to repurchase the loan or to indemnify a party for incurred losses. Repurchase demands and claims for indemnification payments are reviewed on a loan-by-loan basis to validate if there has been a breach requiring repurchase. CountryPlace manages the risk of repurchase through underwriting and quality assurance practices and by servicing the mortgage loans to investor standards. CountryPlace maintains a reserve for these contingent repurchase and indemnification obligations. This reserve of $1.0 million as of September 28, 2019 and March 30, 2019 , included in Accrued liabilities, reflects management's estimate of probable loss. CountryPlace considers a variety of assumptions, including borrower performance (both actual and estimated future defaults), historical repurchase demands and loan default rates to estimate the liability for loan repurchases and indemnifications. During the six months ended September 28, 2019 |
Derivatives | Interest Rate Lock Commitments . In originating loans for sale, CountryPlace issues interest rate lock commitments ("IRLCs") to prospective borrowers. These IRLCs represent an agreement to extend credit to a loan applicant, whereby the interest rate on the loan is set prior to loan closing or sale. These IRLCs bind CountryPlace to fund the approved loan at the specified rate regardless of whether interest rates or market prices for similar loans have changed between the commitment date and the closing date. As such, outstanding IRLCs are subject to interest rate risk and related loan sale price risk during the period from the date of the IRLC through the earlier of the loan sale date or IRLC expiration date. The loan commitments generally range between 30 and 180 days; however, borrowers are not obligated to close the related loans. As a result, CountryPlace is subject to fallout risk related to IRLCs, which is realized if approved borrowers choose not to close on the loans within the terms of the IRLCs unless the commitment is successfully paired with another loan that may mitigate losses from fallout. As of September 28, 2019 , CountryPlace had outstanding IRLCs with a notional amount of $ 18.6 million , which are recorded at fair value in accordance with ASC 815, Derivatives and Hedging ("ASC 815"). ASC 815 clarifies that the expected net future cash flows related to the associated servicing of a loan should be included in the measurement of all written loan commitments that are accounted for at fair value through earnings. The estimated fair value of IRLCs is recorded in Prepaid expenses and other current assets in the Consolidated Balance Sheets. The fair value of IRLCs is based on the value of the underlying loan adjusted for: (1) estimated cost to complete and originate the loan and (2) the estimated percentage of IRLCs that will result in closed loans. The initial and subsequent changes in the value of IRLCs are a component of gain (loss) on loans held for sale. During the three and six months ended September 28, 2019 , CountryPlace recognized losses of $2,000 and $3,000 respectively, on outstanding IRLCs. During the three and six months ended September 29, 2018 , CountryPlace recognized losses of $8,000 and gains of $12,000 , respectively, on outstanding IRLCs. Forward Sales Commitments . CountryPlace manages the risk profiles of a portion of its outstanding IRLCs and mortgage loans held for sale by entering into forward sales of mortgage-backed securities ("MBS") and whole loan sale commitments. As of September 28, 2019 , CountryPlace had $53.9 million in outstanding notional forward sales of MBSs and forward sales commitments. Commitments for forward sales of whole loans are typically in an amount proportionate with the amount of IRLCs expected to close in particular time frames, assuming no change in mortgage interest rates, for the respective loan products intended for whole loan sale. The estimated fair values of forward sales of MBS and forward sale commitments are based on quoted market values and are recorded within Prepaid expenses and other current assets in the Consolidated Balance Sheets. During the three and six months ended September 28, 2019 |
Stock-Based Compensation Stock-
Stock-Based Compensation Stock-Based Compensation (Policies) | 6 Months Ended |
Sep. 28, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | The Company maintains stock incentive plans whereby stock option grants or awards of restricted stock may be made to certain officers, directors and key employees. The plans, which are shareholder approved, permit the award of up to 1,650,000 shares of the Company's common stock, of which 229,347 shares were still available for grant as of September 28, 2019 . When options are exercised or restricted stock vests, new shares of the Company's common stock are issued, or the restricted stock shares are no longer restricted. Awards may not be granted below 100% of the fair market value of the Company's common stock at the date of grant and generally expire seven years from the date of grant. Stock options and awards of restricted stock vest over a defined period or based on certain performance criteria, as determined by the plan administrator (the Compensation Committee of the Board of Directors, which consists of independent directors), but typically is no more than five years . The stock incentive plans provide for accelerated vesting of stock options and removal of restrictions on restricted stock awards upon a change in control (as defined in the plans). |
Earnings Per Share Earnings Per
Earnings Per Share Earnings Per Share (Policies) | 6 Months Ended |
Sep. 28, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Basic earnings per common share is computed based on the weighted-average number of common shares outstanding during the reporting period. Diluted earnings per common share is computed based on the combination of dilutive common share equivalents, comprised of shares issuable under the Company's stock-based compensation plans and the weighted-average number of common shares outstanding during the reporting period. Dilutive common share equivalents include the dilutive effect of in-the-money options to purchase shares, which is calculated based on the average share price for each period using the treasury stock method. |
Fair Value Measurements (Polici
Fair Value Measurements (Policies) | 6 Months Ended |
Sep. 28, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement and Disclosures | In accordance with ASC 820, Fair Value Measurements and Disclosures ("ASC 820"), fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value: Level 1 – Quoted prices in active markets for identical assets or liabilities. Level 2 – Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The Company utilizes the market approach to measure fair value for its financial assets and liabilities. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. When the Company uses observable market prices for identical securities that are traded in less active markets, it classifies such securities as Level 2. When observable market prices for identical securities are not available, the Company prices its marketable debt instruments using non-binding market consensus prices that are corroborated with observable market data; quoted market prices for similar instruments; or pricing models, such as a discounted cash flow model, with all significant inputs derived from or corroborated with observable market data. Non-binding market consensus prices are based on the proprietary valuation models of pricing providers or brokers. These valuation models incorporate a number of inputs, including non-binding and binding broker quotes; observable market prices for identical or similar securities; and the internal assumptions of pricing providers or brokers that use observable market inputs and, to a lesser degree, unobservable market inputs. |
Fair Value Transfers | The Company's policy regarding the recording of transfers between levels is to record any such transfers at the end of the reporting period. |
Impairment or Disposal of Long-Lived Assets | The Company records impairment losses on long-lived assets held for sale when the fair value of such long-lived assets is below their carrying values. The Company records impairment charges on long-lived assets used in operations when events and circumstances indicate that long-lived assets might be impaired and the undiscounted cash flows estimated to be generated by those assets are less than their carrying amounts. No impairment charges were recorded during the six months ended September 28, 2019 . |
Transfers and Servicing of Financial Assets | Mortgage Servicing . Mortgage Servicing Rights ("MSRs") are the rights to receive a portion of the interest coupon and fees collected from the mortgagors for performing specified mortgage servicing activities, which consist of collecting loan payments, remitting principal and interest payments to investors, managing escrow accounts, performing loss mitigation activities on behalf of investors and otherwise administering the loan servicing portfolio. MSRs are initially recorded at fair value. Changes in fair value subsequent to the initial capitalization are recorded in the Company's results of operations. The Company recognizes MSRs on all loans sold to investors that meet the requirements for sale accounting and for which servicing rights are retained. The Company applies fair value accounting to MSRs, with all changes in fair value recorded to Net revenue in accordance with ASC 860-50, Servicing Assets and Liabilities |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 6 Months Ended |
Sep. 28, 2019 | |
Disaggregation of Revenue [Line Items] | |
Disaggregation of Revenue | The following table summarizes customer contract revenues disaggregated by reportable segment and the source of revenue for the three and six months ended September 28, 2019 and September 29, 2018 (in thousands): Three Months Ended Six Months Ended September 28, 2019 September 29, 2018 September 28, 2019 September 29, 2018 Factory-built housing U.S. Housing and Urban Development code homes $ 207,556 $ 184,687 $ 410,035 $ 371,003 Modular homes 19,412 23,901 38,819 46,348 Park model RVs 11,751 5,979 24,612 17,706 Other (1) 13,971 12,527 27,992 24,799 Net revenue from factory-built housing 252,690 227,094 501,458 459,856 Financial services Insurance agency commissions received from third-party insurance companies 274 643 1,429 1,275 Other (2) 15,711 13,793 29,830 26,802 Net revenue from financial services 15,985 14,436 31,259 28,077 Total Net revenue $ 268,675 $ 241,530 $ 532,717 $ 487,933 (1) Other factory-built housing revenue from ancillary products and services including freight, used homes and other services. |
Restricted Cash (Tables)
Restricted Cash (Tables) | 6 Months Ended |
Sep. 28, 2019 | |
Cash and Cash Equivalents [Abstract] | |
Summary of restricted cash | Restricted cash consisted of the following (in thousands): September 28, March 30, Cash related to CountryPlace customer payments to be remitted to third parties $ 13,948 $ 10,426 Cash related to CountryPlace customer payments on securitized loans to be remitted to bondholders — 634 Other restricted cash 1,383 1,439 $ 15,331 $ 12,499 |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Sep. 28, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments Investments consisted of the following (in thousands): September 28, March 30, Available-for-sale debt securities $ 12,181 $ 13,408 Marketable equity securities 12,649 11,073 Non-marketable equity investments 20,926 20,276 $ 45,756 $ 44,757 The Company's investments in marketable equity securities consist of investments in the common stock of industrial and other companies. As of September 28, 2019 and March 30, 2019 , non-marketable equity investments included contributions of $15.0 million to equity-method investments in community-based initiatives that buy and sell our homes and provide home-only financing to residents of certain manufactured home communities. Other non-marketable equity investments included investments in other distribution operations. The Company records investments in fixed maturity securities classified as available-for-sale at fair value and records the difference between fair value and cost in Accumulated other comprehensive income (loss). The following tables summarize the Company's available-for-sale debt securities, gross unrealized gains and losses and fair value, aggregated by investment category (in thousands): September 28, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Residential mortgage-backed securities $ 6,168 $ 22 $ (48 ) $ 6,142 State and political subdivision debt securities 3,706 139 (3 ) 3,842 Corporate debt securities 1,901 4 (8 ) 1,897 U.S. Treasury and government debt securities 300 — — 300 $ 12,075 $ 165 $ (59 ) $ 12,181 March 30, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Residential mortgage-backed securities $ 6,625 $ 3 $ (119 ) $ 6,509 State and political subdivision debt securities 4,883 117 (17 ) 4,983 Corporate debt securities 1,635 3 (19 ) 1,619 U.S. Treasury and government debt securities 300 — (3 ) 297 $ 13,443 $ 123 $ (158 ) $ 13,408 The following tables show gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities had been in a continuous unrealized loss position (in thousands): September 28, 2019 Less than 12 Months 12 Months or Longer Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Residential mortgage-backed securities $ 669 $ — $ 3,197 $ (48 ) $ 3,866 $ (48 ) State and political subdivision debt securities 302 (1 ) 103 (2 ) 405 (3 ) Corporate debt securities — — 1,096 (8 ) 1,096 (8 ) $ 971 $ (1 ) $ 4,396 $ (58 ) $ 5,367 $ (59 ) March 30, 2019 Less than 12 Months 12 Months or Longer Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Residential mortgage-backed securities $ 1,066 $ (9 ) $ 5,206 $ (110 ) $ 6,272 $ (119 ) State and political subdivision debt securities 353 — 2,319 (17 ) 2,672 (17 ) Corporate debt securities 243 (8 ) 1,073 (11 ) 1,316 (19 ) U.S. Treasury and government debt securities — — 297 (3 ) 297 (3 ) $ 1,662 $ (17 ) $ 8,895 $ (141 ) $ 10,557 $ (158 ) Based on the Company's ability and intent to hold the investments for a reasonable period of time sufficient for a forecasted recovery of fair value, the Company does not consider any investments to be other-than-temporarily impaired as of September 28, 2019 . The amortized cost and fair value of the Company's investments in available-for-sale debt securities, by contractual maturity, are shown in the table below (in thousands). Expected maturities differ from contractual maturities as borrowers may have the right to call or prepay obligations, with or without penalties. September 28, 2019 Amortized Cost Fair Value Due in less than one year $ 507 $ 507 Due after one year through five years 3,215 3,218 Due after five years through ten years 263 283 Due after ten years 1,922 2,031 Mortgage-backed securities 6,168 6,142 $ 12,075 $ 12,181 The Company recognizes investment gains and losses on available-for-sale debt securities when it sells or otherwise disposes of securities using the specific identification method. There were no gross gains or losses realized on the sale of available-for-sale debt securities during the three and six months ended September 28, 2019 or September 29, 2018 . The Company recognizes unrealized gains and losses on marketable equity securities from changes in market prices during the period as a component of earnings in the Consolidated Statements of Comprehensive Income. Net investment gains and losses on marketable equity securities for the three and six months ended September 28, 2019 and September 29, 2018 were as follows (in thousands): Three Months Ended Six Months Ended September 28, September 29, September 28, September 29, Marketable equity securities: Net gains (losses) on securities held $ 350 $ (312 ) $ 1,302 $ 1,298 Net losses on securities sold (1 ) (13 ) (2 ) (53 ) Total net gain (loss) on marketable equity securities $ 349 $ (325 ) $ 1,300 $ 1,245 |
Schedule of Investments | Investments consisted of the following (in thousands): September 28, March 30, Available-for-sale debt securities $ 12,181 $ 13,408 Marketable equity securities 12,649 11,073 Non-marketable equity investments 20,926 20,276 $ 45,756 $ 44,757 |
Available-for-Sale Securities by Investment Category | The following tables summarize the Company's available-for-sale debt securities, gross unrealized gains and losses and fair value, aggregated by investment category (in thousands): September 28, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Residential mortgage-backed securities $ 6,168 $ 22 $ (48 ) $ 6,142 State and political subdivision debt securities 3,706 139 (3 ) 3,842 Corporate debt securities 1,901 4 (8 ) 1,897 U.S. Treasury and government debt securities 300 — — 300 $ 12,075 $ 165 $ (59 ) $ 12,181 March 30, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Residential mortgage-backed securities $ 6,625 $ 3 $ (119 ) $ 6,509 State and political subdivision debt securities 4,883 117 (17 ) 4,983 Corporate debt securities 1,635 3 (19 ) 1,619 U.S. Treasury and government debt securities 300 — (3 ) 297 $ 13,443 $ 123 $ (158 ) $ 13,408 |
Investment Securities in a Continuous Unrealized Loss Position | The following tables show gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities had been in a continuous unrealized loss position (in thousands): September 28, 2019 Less than 12 Months 12 Months or Longer Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Residential mortgage-backed securities $ 669 $ — $ 3,197 $ (48 ) $ 3,866 $ (48 ) State and political subdivision debt securities 302 (1 ) 103 (2 ) 405 (3 ) Corporate debt securities — — 1,096 (8 ) 1,096 (8 ) $ 971 $ (1 ) $ 4,396 $ (58 ) $ 5,367 $ (59 ) March 30, 2019 Less than 12 Months 12 Months or Longer Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Residential mortgage-backed securities $ 1,066 $ (9 ) $ 5,206 $ (110 ) $ 6,272 $ (119 ) State and political subdivision debt securities 353 — 2,319 (17 ) 2,672 (17 ) Corporate debt securities 243 (8 ) 1,073 (11 ) 1,316 (19 ) U.S. Treasury and government debt securities — — 297 (3 ) 297 (3 ) $ 1,662 $ (17 ) $ 8,895 $ (141 ) $ 10,557 $ (158 ) |
Contractual Maturity of Investment Securities | The amortized cost and fair value of the Company's investments in available-for-sale debt securities, by contractual maturity, are shown in the table below (in thousands). Expected maturities differ from contractual maturities as borrowers may have the right to call or prepay obligations, with or without penalties. September 28, 2019 Amortized Cost Fair Value Due in less than one year $ 507 $ 507 Due after one year through five years 3,215 3,218 Due after five years through ten years 263 283 Due after ten years 1,922 2,031 Mortgage-backed securities 6,168 6,142 $ 12,075 $ 12,181 |
Gain (Loss) on Securities | The Company recognizes investment gains and losses on available-for-sale debt securities when it sells or otherwise disposes of securities using the specific identification method. There were no gross gains or losses realized on the sale of available-for-sale debt securities during the three and six months ended September 28, 2019 or September 29, 2018 . The Company recognizes unrealized gains and losses on marketable equity securities from changes in market prices during the period as a component of earnings in the Consolidated Statements of Comprehensive Income. Net investment gains and losses on marketable equity securities for the three and six months ended September 28, 2019 and September 29, 2018 were as follows (in thousands): Three Months Ended Six Months Ended September 28, September 29, September 28, September 29, Marketable equity securities: Net gains (losses) on securities held $ 350 $ (312 ) $ 1,302 $ 1,298 Net losses on securities sold (1 ) (13 ) (2 ) (53 ) Total net gain (loss) on marketable equity securities $ 349 $ (325 ) $ 1,300 $ 1,245 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Sep. 28, 2019 | |
Inventory Disclosure [Abstract] | |
Summary of inventories | Inventories consisted of the following (in thousands): September 28, March 30, Raw materials $ 35,330 $ 33,701 Work in process 12,655 12,212 Finished goods 67,220 70,290 $ 115,205 $ 116,203 |
Consumer Loans Receivable (Tabl
Consumer Loans Receivable (Tables) | 6 Months Ended |
Sep. 28, 2019 | |
Receivables [Abstract] | |
Consumer Loans Receivable | The following table summarizes consumer loans receivable (in thousands): September 28, March 30, Loans held for investment (at Acquisition Date, defined below) $ 40,983 $ 44,375 Loans held for investment (originated after Acquisition Date) 19,530 20,580 Loans held for sale 16,801 11,288 Construction advances 14,261 12,883 Consumer loans receivable 91,575 89,126 Deferred financing fees and other, net (2,208 ) (1,926 ) Allowance for loan losses (415 ) (415 ) $ 88,952 $ 86,785 |
Acquired Consumer Loans Receivable Held for Investment | September 28, March 30, (in thousands) Consumer loans receivable held for investment – contractual amount $ 91,723 $ 100,595 Purchase discount Accretable (34,108 ) (36,672 ) Non-accretable (16,540 ) (19,502 ) Less consumer loans receivable reclassified as other assets (92 ) (46 ) Total acquired consumer loans receivable held for investment, net $ 40,983 $ 44,375 |
Weighted average assumptions | The weighted averages of assumptions used in the calculation of expected cash flows to be collected were as follows: September 28, March 30, Prepayment rate 16.4 % 17.1 % Default rate 1.1 % 1.1 % Assuming there was a 1% (100 basis point) unfavorable variation from the expected level, for each key assumption, the expected cash flows for the life of the portfolio, as of September 28, 2019 , would decrease by approximately $881,000 and $2.5 million for the expected prepayment rate and expected default rate, respectively. |
Accretable Yield Movement on Acquired Consumer Loans Receivable | The changes in accretable yield on acquired consumer loans receivable held for investment were as follows (in thousands): Three Months Ended Six Months Ended September 28, September 29, September 28, September 29, Balance at the beginning of the period $ 34,881 $ 42,873 $ 36,672 $ 44,481 Accretion (1,713 ) (1,968 ) (3,480 ) (3,867 ) Reclassifications to non-accretable discount 940 32 916 323 Balance at the end of the period $ 34,108 $ 40,937 $ 34,108 $ 40,937 |
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score | March 30, 2019 Consumer Loans Held for Investment Securitized 2005 Securitized 2007 Unsecuritized Construction Advances Consumer Loans Held For Sale Total Asset Class Credit Quality Indicator (FICO® score) Home-only loans 0-619 $ 401 $ 245 $ 266 $ — $ — $ 912 620-719 8,448 5,996 10,266 — — 24,710 720+ 9,090 5,419 8,436 — 617 23,562 Other 47 — 390 — — 437 Subtotal 17,986 11,660 19,358 — 617 49,621 Conforming mortgages 0-619 — — 83 — 460 543 620-719 — — 2,202 8,061 6,885 17,148 720+ — — 684 4,822 3,326 8,832 Subtotal — — 2,969 12,883 10,671 26,523 Non-conforming mortgages 0-619 78 344 991 — — 1,413 620-719 994 4,008 2,687 — — 7,689 720+ 1,238 2,053 369 — — 3,660 Other — — 214 — — 214 Subtotal 2,310 6,405 4,261 — — 12,976 Other loans — — 6 — — 6 $ 20,296 $ 18,065 $ 26,594 $ 12,883 $ 11,288 $ 89,126 The following table disaggregates CountryPlace's gross consumer loans receivable for each class by portfolio segment and credit quality indicator as of the time of origination (in thousands): September 28, 2019 Consumer Loans Held for Investment Securitized 2005 Securitized 2007 Unsecuritized Construction Advances Consumer Loans Held For Sale Total Asset Class Credit Quality Indicator (FICO® score) Home-only loans 0-619 $ 374 $ 228 $ 253 $ — $ — $ 855 620-719 7,615 5,629 10,275 — 87 23,606 720+ 8,344 4,895 7,748 — 162 21,149 Other 46 — 382 — — 428 Subtotal 16,379 10,752 18,658 — 249 46,038 Conforming mortgages 0-619 — — 83 — — 83 620-719 — — 1,550 9,616 8,489 19,655 720+ — — 818 4,645 7,760 13,223 Other — — — — 303 303 Subtotal — — 2,451 14,261 16,552 33,264 Non-conforming mortgages 0-619 76 327 950 — — 1,353 620-719 811 3,915 2,614 — — 7,340 720+ 1,124 2,012 230 — — 3,366 Other — — 182 — — 182 Subtotal 2,011 6,254 3,976 — — 12,241 Other loans — — 32 — — 32 $ 18,390 $ 17,006 $ 25,117 $ 14,261 $ 16,801 $ 91,575 |
Commercial Loans Receivables _2
Commercial Loans Receivables and Allowance for Loan Loss (Tables) | 6 Months Ended |
Sep. 28, 2019 | |
Receivables [Abstract] | |
Commercial Loans Receivables | Commercial loans receivable, net consisted of the following, by class of financing notes receivable (in thousands): September 28, March 30, Direct loans receivable $ 46,399 $ 42,899 Participation loans receivable 262 495 Allowance for loan losses (163 ) (180 ) Deferred financing fees, net (239 ) (208 ) $ 46,259 $ 43,006 |
Changes in the Allowance for Loan Losses on Commercial Loans Receivables | The following table represents changes in the estimated allowance for loan losses, including related additions and deductions to the allowance for loan losses applicable to the direct programs (in thousands): Three Months Ended Six Months Ended September 28, September 29, September 28, September 29, Balance at beginning of period $ 191 $ 113 $ 180 $ 42 Change in estimated loan losses, net (28 ) 22 (17 ) 93 Loans charged off, net of recoveries — — — — Balance at end of period $ 163 $ 135 $ 163 $ 135 |
Allowance for Loan Losses and Commercial Loans Receivables By Class Individually and Collectively Evaluated for Impairment | The following table disaggregates commercial loans receivable and the estimated allowance for loan losses for each class of financing receivable by evaluation methodology (in thousands): Direct Commercial Loans Participation Commercial Loans September 28, March 30, September 28, March 30, Commercial loans receivable: Collectively evaluated for impairment $ 16,276 $ 18,018 $ — $ — Individually evaluated for impairment 30,123 24,881 262 495 $ 46,399 $ 42,899 $ 262 $ 495 Allowance for loan losses: Collectively evaluated for impairment $ (163 ) $ (180 ) $ — $ — Individually evaluated for impairment — — — — $ (163 ) $ (180 ) $ — $ — |
Commercial Loans Receivables by Class and Internal Credit Quality Indicator | The following table disaggregates the Company's commercial loans receivable by class and credit quality indicator (in thousands): Direct Commercial Loans Participation Commercial Loans September 28, March 30, September 28, March 30, Risk profile based on payment activity: Performing $ 46,399 $ 42,899 $ 262 $ 495 Watch list — — — — Nonperforming — — — — $ 46,399 $ 42,899 $ 262 $ 495 |
Geographic Concentration of Commercial Loans Receivables in Key States | The Company had concentrations of commercial loans receivables related to factory-built homes in excess of 10% of the commercial loans receivables principal balance located in the following states: September 28, March 30, California 15.7 % 21.1 % Arizona 14.9 % 16.3 % |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 6 Months Ended |
Sep. 28, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, plant and equipment, net, consisted of the following (in thousands): September 28, March 30, Property, plant and equipment, at cost: Land $ 21,723 $ 21,359 Buildings and improvements 49,972 42,976 Machinery and equipment 28,756 27,053 100,451 91,388 Accumulated depreciation (30,252 ) (27,904 ) $ 70,199 $ 63,484 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 6 Months Ended |
Sep. 28, 2019 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | Accrued liabilities consisted of the following (in thousands): September 28, March 30, Salaries, wages and benefits $ 25,910 $ 25,257 Customer deposits 22,385 17,804 Unearned insurance premiums 19,375 18,305 Estimated warranties 18,563 17,069 Accrued volume rebates 12,240 10,412 Insurance loss reserves 5,659 6,686 Accrued self-insurance 5,485 5,171 Company repurchase options on certain loans sold 4,512 3,810 Operating lease liabilities 3,786 — Reserve for repurchase commitments 3,011 2,362 Accrued taxes 2,547 1,767 Capital lease obligation — 1,075 Other 14,463 15,463 $ 137,936 $ 125,181 |
Warranties (Tables)
Warranties (Tables) | 6 Months Ended |
Sep. 28, 2019 | |
Product Warranties Disclosures [Abstract] | |
Activity in the liability for estimated warranties | Activity in the liability for estimated warranties was as follows (in thousands): Three Months Ended Six Months Ended September 28, September 29, September 28, September 29, Balance at beginning of period $ 17,760 $ 16,670 $ 17,069 $ 16,638 Purchase accounting additions 1,192 — 1,192 — Charged to costs and expenses 6,765 6,713 14,586 12,942 Payments and deductions (7,154 ) (6,478 ) (14,284 ) (12,675 ) Balance at end of period $ 18,563 $ 16,905 $ 18,563 $ 16,905 |
Debt Obligations (Tables)
Debt Obligations (Tables) | 6 Months Ended |
Sep. 28, 2019 | |
Debt Disclosure [Abstract] | |
Debt Obligations | Debt and finance lease obligations primarily consisted of amounts related to loans sold that did not qualify for loan sale accounting treatment and lease obligations in which it is expected that the Company will obtain ownership of a leased asset at the end of the lease term. The following table summarizes debt and finance lease obligations (in thousands): September 28, March 30, 2007-1 securitized financings (acquired as part of the Palm Harbor transaction) $ — $ 18,364 Secured credit facilities 10,974 11,289 Other secured financings 4,217 4,487 Finance lease liabilities 1,043 — $ 16,234 $ 34,140 |
Accretable Yield Movement on Acquired Securitized Financings | The changes in accretable yield on securitized financings were as follows (in thousands): Three Months Ended Six Months Ended September 28, September 29, September 28, September 29, Balance at the beginning of the period $ 206 $ 2,697 $ 491 $ 3,515 Accretion (206 ) (774 ) (577 ) (1,577 ) Adjustment to cash flows — (89 ) 86 (104 ) Balance at the end of the period $ — $ 1,834 $ — $ 1,834 |
Reinsurance (Tables)
Reinsurance (Tables) | 6 Months Ended |
Sep. 28, 2019 | |
Insurance [Abstract] | |
Reinsurance Effect on Premiums Written and Earned | The effects of reinsurance on premiums written and earned were as follows (in thousands): Three Months Ended September 28, 2019 September 29, 2018 Written Earned Written Earned Direct premiums $ 4,179 $ 4,653 $ 3,820 $ 4,249 Assumed premiums—nonaffiliate 6,760 6,592 6,280 6,350 Ceded premiums—nonaffiliate (3,029 ) (3,029 ) (3,135 ) (3,135 ) Net premiums $ 7,910 $ 8,216 $ 6,965 $ 7,464 Six Months Ended September 28, 2019 September 29, 2018 Written Earned Written Earned Direct premiums $ 9,212 $ 9,223 $ 8,361 $ 8,460 Assumed premiums—nonaffiliate 14,273 13,027 13,214 12,584 Ceded premiums—nonaffiliate (6,016 ) (6,016 ) (5,982 ) (5,982 ) Net premiums $ 17,469 $ 16,234 $ 15,593 $ 15,062 |
Commitments and Contingencies_2
Commitments and Contingencies (Tables) | 6 Months Ended |
Sep. 28, 2019 | |
Repurchase Contingencies [Roll Forward] | |
Loan Contracts with Off-Balance Sheet Commitments | Letters of Credit. To secure certain reinsurance contracts, Standard Casualty maintains an irrevocable letter of credit of $11.0 million to provide assurance that Standard Casualty will fulfill its reinsurance obligations. This letter of credit is secured by certain of the Company's investments. There were no amounts outstanding at either September 28, 2019 or March 30, 2019 . Construction-Period Mortgages. CountryPlace funds construction-period mortgages through periodic advances during home construction. At the time of initial funding, CountryPlace commits to fully fund the loan contract in accordance with a predetermined schedule. Subsequent advances are contingent upon the performance of contractual obligations by the seller of the home and the borrower. Cumulative advances on construction-period mortgages are carried on the Consolidated Balance Sheets at the amount advanced less a valuation allowance, and are included in Consumer loans receivable, net. The total loan contract amount, less cumulative advances, represents an off-balance sheet contingent commitment of CountryPlace to fund future advances. Loan contracts with off-balance sheet commitments are summarized below (in thousands): September 28, March 30, Construction loan contract amount $ 32,822 $ 28,230 Cumulative advances (14,261 ) (12,883 ) Remaining construction contingent commitment $ 18,561 $ 15,347 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Sep. 28, 2019 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Stockholders Equity | The following table represents changes in stockholders' equity for each quarterly period during the six months ended September 28, 2019 (dollars in thousands): Additional paid-in capital Retained earnings Accumulated other comprehensive income (loss) Total Common Stock Shares Amount Balance, March 30, 2019 9,098,320 $ 91 $ 249,447 $ 280,078 $ (28 ) $ 529,588 Net income — — — 21,282 — 21,282 Issuance of common stock under stock incentive plans 13,304 — (1,252 ) — — (1,252 ) Stock-based compensation — — 630 — — 630 Other comprehensive income, net — — — — 89 89 Balance, June 29, 2019 9,111,624 $ 91 $ 248,825 $ 301,360 $ 61 $ 550,337 Net income — — — 20,885 — 20,885 Issuance of common stock under stock incentive plans 15,842 — 941 — — 941 Stock-based compensation — — 818 — — 818 Other comprehensive income, net — — — — 23 23 Balance, September 28, 2019 9,127,466 $ 91 $ 250,584 $ 322,245 $ 84 $ 573,004 The following table represents changes in stockholders' equity for each quarterly period during the six months ended September 29, 2018 (dollars in thousands): Additional paid-in capital Retained earnings Accumulated other comprehensive income (loss) Total Common Stock Shares Amount Balance, March 31, 2018 9,044,858 $ 90 $ 246,197 $ 209,381 $ 1,438 $ 457,106 Cumulative effect of implementing ASU 2016-01, net — — — 1,621 (1,621 ) — Cumulative effect of implementing ASC 606, net — — — 454 — 454 Net income — — — 19,691 — 19,691 Issuance of common stock under stock incentive plans 16,448 1 (2,169 ) — — (2,168 ) Stock-based compensation — — 599 — — 599 Other comprehensive income, net — — — — 5 5 Balance, June 30, 2018 9,061,306 $ 91 $ 244,627 $ 231,147 $ (178 ) $ 475,687 Net income — — — 15,576 — 15,576 Issuance of common stock under stock incentive plans 36,053 — 1,995 — — 1,995 Stock-based compensation — — 1,516 — — 1,516 Other comprehensive loss, net — — — — (26 ) (26 ) Balance, September 29, 2018 9,097,359 $ 91 $ 248,138 $ 246,723 $ (204 ) $ 494,748 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Sep. 28, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stock Options Activity | The following table summarizes stock option activity for the six months ended September 28, 2019 : Number of Options Outstanding at March 30, 2019 411,111 Granted 74,450 Exercised (47,724 ) Canceled or expired — Outstanding at September 28, 2019 437,837 Exercisable at September 28, 2019 219,838 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Sep. 28, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share Computation | The following table sets forth the computation of basic and diluted earnings per share (dollars in thousands, except share and per share amounts): Three Months Ended Six Months Ended September 28, September 29, September 28, September 29, Net income $ 20,885 $ 15,576 $ 42,167 $ 35,267 Weighted average shares outstanding: Basic 9,119,835 9,079,679 9,111,260 9,064,007 Effect of dilutive securities 146,250 224,509 130,574 223,723 Diluted 9,266,085 9,304,188 9,241,834 9,287,730 Net income per share: Basic $ 2.29 $ 1.72 $ 4.63 $ 3.89 Diluted $ 2.25 $ 1.67 $ 4.56 $ 3.80 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Sep. 28, 2019 | |
Fair Value Disclosures [Abstract] | |
Summary of the Fair Value and Carrying Value of Financial Instruments | The book value and estimated fair value of the Company's financial instruments were as follows (in thousands): September 28, 2019 March 30, 2019 Book Value Estimated Fair Value Book Value Estimated Fair Value Available-for-sale debt securities (1) $ 12,181 $ 12,181 $ 13,408 $ 13,408 Marketable equity securities (1) 12,649 12,649 11,073 11,073 Non-marketable equity investments (2) 20,926 20,926 20,276 20,276 Consumer loans receivable (3) 88,952 104,294 86,785 101,001 Interest rate lock commitment derivatives (4) 8 8 11 11 Forward loan sale commitment derivatives (4) 25 25 (59 ) (59 ) Commercial loans receivable (5) 46,259 46,801 43,006 43,582 Securitized financings and other (6) (16,234 ) (19,755 ) (34,140 ) (38,101 ) (1) For Level 1 classified securities, the fair value is based on quoted market prices. The fair value of Level 2 securities is based on other inputs, as further described below. (2) The fair value approximates book value based on the non-marketable nature of the investments. (3) Includes consumer loans receivable held for investment, held for sale and construction advances. The fair value of the loans held for investment is based on the discounted value of the remaining principal and interest cash flows. The fair value of the loans held for sale is estimated based on recent GSE mortgage-backed bond prices. The fair value of the construction advances approximates book value and the sales price of these loans. (4) The fair values are based on changes in GSE mortgage-backed bond prices and, additionally for IRLCs, pull through rates. (5) The fair value is estimated using market interest rates of comparable loans. (6) The fair value is estimated using recent public transactions of similar asset-backed securities. |
Summary of Assets Measured at Fair Value on a Recurring Basis | measured at fair value on a recurring basis are summarized below (in thousands): September 28, 2019 Total Level 1 Level 2 Level 3 Securities issued by the U.S Treasury and Government (1) $ 300 $ — $ 300 $ — Mortgage-backed securities (1) 6,142 — 6,142 — Securities issued by states and political subdivisions (1) 3,842 — 3,842 — Corporate debt securities (1) 1,897 — 1,897 — Marketable equity securities (2) 12,649 12,649 — — Interest rate lock commitment derivatives (3) 8 — — 8 Forward loan sale commitment derivatives (3) 25 — — 25 Mortgage servicing rights (4) 1,278 — — 1,278 March 30, 2019 Total Level 1 Level 2 Level 3 Securities issued by the U.S Treasury and Government (1) $ 297 $ — $ 297 $ — Mortgage-backed securities (1) 6,509 — 6,509 — Securities issued by states and political subdivisions (1) 4,983 — 4,983 — Corporate debt securities (1) 1,619 — 1,619 — Marketable equity securities (2) 11,073 11,073 — — Interest rate lock commitment derivatives (3) 11 — — 11 Forward loan sale commitment derivatives (3) (59 ) — — (59 ) Mortgage servicing rights (4) 1,372 — — 1,372 (1) Unrealized gains or losses on investments are recorded in Accumulated other comprehensive income (loss) at each measurement date. (2) Unrealized gains or losses on investments are recorded in earnings at each measurement date. (3) Gains or losses on derivatives are recognized in current period earnings through Cost of sales. (4) Changes in the fair value of mortgage servicing rights are recognized in the current period earnings through Net revenue. |
Summary of Assets and Liabilities Measured at Fair Value for Disclosure | Financial instruments for which fair value is disclosed but not required to be recognized in the balance sheet on a recurring basis are summarized below (in thousands): September 28, 2019 Total Level 1 Level 2 Level 3 Loans held for investment $ 72,546 $ — $ — $ 72,546 Loans held for sale 17,487 — — 17,487 Loans held—construction advances 14,261 — — 14,261 Commercial loans receivable 46,801 — — 46,801 Securitized financings and other (19,755 ) — (19,755 ) — Non-marketable equity investments 20,926 — — 20,926 |
Assumptions for Mortgage Servicing Rights | September 28, March 30, Number of loans serviced with MSRs 4,596 4,557 Weighted average servicing fee (basis points) 31.12 31.59 Capitalized servicing multiple 72.30 % 77.97 % Capitalized servicing rate (basis points) 22.50 24.63 Serviced portfolio with MSRs (in thousands) $ 567,886 $ 556,934 Mortgage servicing rights (in thousands) $ 1,278 $ 1,372 |
Business Segment Information (T
Business Segment Information (Tables) | 6 Months Ended |
Sep. 28, 2019 | |
Segment Reporting [Abstract] | |
Business Segment Information | The following table details Net revenue and Income before income taxes by segment (in thousands): Three Months Ended Six Months Ended September 28, September 29, September 28, September 29, Net revenue: Factory-built housing $ 252,690 $ 227,094 $ 501,458 $ 459,856 Financial services 15,985 14,436 31,259 28,077 $ 268,675 $ 241,530 $ 532,717 $ 487,933 Income before income taxes: Factory-built housing $ 22,463 $ 16,880 $ 46,776 $ 38,488 Financial services 4,792 2,637 7,841 5,165 $ 27,255 $ 19,517 $ 54,617 $ 43,653 |
Basis of Presentation (Principl
Basis of Presentation (Principles of Consolidation) (Details) | 6 Months Ended |
Sep. 28, 2019storefactoriesSegment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of operating segments | Segment | 2 |
Number of operating manufacturing facilities | factories | 20 |
Number of Stores | store | 39 |
Basis of Presentation New Accou
Basis of Presentation New Accounting Pronouncements (Details) - Topic 842 Leases $ in Millions | Mar. 31, 2019USD ($) |
Lease right-of-use assets | |
Topic 842 | |
Effect of ASC 842 | $ 13 |
Operating Lease Liabilities | |
Topic 842 | |
Effect of ASC 842 | $ 13.5 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers (Disaggregation of Revenue) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | ||
Disaggregation of Revenue [Line Items] | |||||
Revenues | $ 268,675 | $ 241,530 | $ 532,717 | $ 487,933 | |
Factory-built housing | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 252,690 | 227,094 | 501,458 | 459,856 | |
Factory-built housing | HUD Code | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 207,556 | 184,687 | 410,035 | 371,003 | |
Factory-built housing | Modular | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 19,412 | 23,901 | 38,819 | 46,348 | |
Factory-built housing | Park Model RVs | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 11,751 | 5,979 | 24,612 | 17,706 | |
Factory-built housing | Product and Service, Other | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | [1] | 13,971 | 12,527 | 27,992 | 24,799 |
Financial Services | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 15,985 | 14,436 | 31,259 | 28,077 | |
Financial Services | Insurance Agency Commissions | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 274 | 643 | 1,429 | 1,275 | |
Financial Services | Financial Service, Other | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | [2] | $ 15,711 | $ 13,793 | $ 29,830 | $ 26,802 |
[1] | Other factory-built housing revenue from ancillary products and services including freight, used homes and other services. | ||||
[2] | Other financial services revenue relates to consumer finance and insurance revenue that is not within the scope of ASU 2014-09, Revenue from Contracts with Customers ("Topic 606") . |
Restricted Cash (Details)
Restricted Cash (Details) - USD ($) $ in Thousands | Sep. 28, 2019 | Mar. 30, 2019 | Sep. 29, 2018 | Mar. 31, 2018 |
Summary of restricted cash | ||||
Restricted cash, current | $ 14,981 | $ 12,148 | $ 13,754 | $ 11,228 |
Restricted cash | 350 | 351 | $ 453 | $ 1,264 |
Total restricted cash | 15,331 | 12,499 | ||
Cash related to CountryPlace customer payments to be remitted to third parties | ||||
Summary of restricted cash | ||||
Restricted cash, current | 13,948 | 10,426 | ||
Cash related to CountryPlace customer payments on securitized loans to be remitted to bondholders | ||||
Summary of restricted cash | ||||
Restricted cash, current | 0 | 634 | ||
Other restricted cash | ||||
Summary of restricted cash | ||||
Restricted cash | $ 1,383 | $ 1,439 |
Restricted Cash Reconciliation
Restricted Cash Reconciliation of Cash and cash equivalents and Restricted cash to SOCF (Details) - USD ($) $ in Thousands | Sep. 28, 2019 | Mar. 30, 2019 | Sep. 29, 2018 | Mar. 31, 2018 |
Cash and Cash Equivalents [Abstract] | ||||
Cash and cash equivalents | $ 190,478 | $ 187,370 | $ 195,488 | $ 186,766 |
Restricted cash, current | 14,981 | 12,148 | 13,754 | 11,228 |
Restricted cash | 350 | 351 | 453 | 1,264 |
Cash, cash equivalents and restricted cash | $ 205,809 | $ 199,869 | $ 209,695 | $ 199,258 |
Investments (Details)
Investments (Details) - USD ($) $ in Thousands | Sep. 28, 2019 | Mar. 30, 2019 |
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale debt securities | $ 12,181 | $ 13,408 |
Marketable equity securities | 12,649 | 11,073 |
Non-marketable equity investments | 20,926 | 20,276 |
Investments | 45,756 | 44,757 |
Payments to acquire interest in joint venture | $ 15,000 | $ 15,000 |
Investments (Gross Unrealized G
Investments (Gross Unrealized Gains and Losses by Investment Category) (Details) - USD ($) $ in Thousands | Sep. 28, 2019 | Mar. 30, 2019 |
Available-for-Sale Securities by Investment Category | ||
Amortized Cost | $ 12,075 | $ 13,443 |
Gross Unrealized Gains | 165 | 123 |
Gross Unrealized Losses | (59) | (158) |
Available-for-sale debt securities | 12,181 | 13,408 |
Residential mortgage-backed securities | ||
Available-for-Sale Securities by Investment Category | ||
Amortized Cost | 6,168 | 6,625 |
Gross Unrealized Gains | 22 | 3 |
Gross Unrealized Losses | (48) | (119) |
Available-for-sale debt securities | 6,142 | 6,509 |
State and political subdivision debt securities | ||
Available-for-Sale Securities by Investment Category | ||
Amortized Cost | 3,706 | 4,883 |
Gross Unrealized Gains | 139 | 117 |
Gross Unrealized Losses | (3) | (17) |
Available-for-sale debt securities | 3,842 | 4,983 |
Corporate debt securities | ||
Available-for-Sale Securities by Investment Category | ||
Amortized Cost | 1,901 | 1,635 |
Gross Unrealized Gains | 4 | 3 |
Gross Unrealized Losses | (8) | (19) |
Available-for-sale debt securities | 1,897 | 1,619 |
U.S. Treasury and government debt securities | ||
Available-for-Sale Securities by Investment Category | ||
Amortized Cost | 300 | 300 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | (3) |
Available-for-sale debt securities | $ 300 | $ 297 |
Investments (Unrealized Losses
Investments (Unrealized Losses and Fair Value by Length of Time) (Details) - USD ($) $ in Thousands | Sep. 28, 2019 | Mar. 30, 2019 |
Debt Securities in a Continuous Unrealized Loss Position | ||
Less than 12 Months, Fair Value | $ 971 | $ 1,662 |
Less than 12 month, Unrealized Losses | (1) | (17) |
12 Months or Longer, Fair Value | 4,396 | 8,895 |
12 Months or Longer, Unrealized Losses | (58) | (141) |
Debt Securities, Available-for-sale, Unrealized Loss Position | 5,367 | 10,557 |
Gross Unrealized Losses | (59) | (158) |
Residential mortgage-backed securities | ||
Debt Securities in a Continuous Unrealized Loss Position | ||
Less than 12 Months, Fair Value | 669 | 1,066 |
Less than 12 month, Unrealized Losses | 0 | (9) |
12 Months or Longer, Fair Value | 3,197 | 5,206 |
12 Months or Longer, Unrealized Losses | (48) | (110) |
Debt Securities, Available-for-sale, Unrealized Loss Position | 3,866 | 6,272 |
Gross Unrealized Losses | (48) | (119) |
State and political subdivision debt securities | ||
Debt Securities in a Continuous Unrealized Loss Position | ||
Less than 12 Months, Fair Value | 302 | 353 |
Less than 12 month, Unrealized Losses | (1) | 0 |
12 Months or Longer, Fair Value | 103 | 2,319 |
12 Months or Longer, Unrealized Losses | (2) | (17) |
Debt Securities, Available-for-sale, Unrealized Loss Position | 405 | 2,672 |
Gross Unrealized Losses | (3) | (17) |
Corporate Debt Securities | ||
Debt Securities in a Continuous Unrealized Loss Position | ||
Less than 12 Months, Fair Value | 0 | 243 |
Less than 12 month, Unrealized Losses | 0 | (8) |
12 Months or Longer, Fair Value | 1,096 | 1,073 |
12 Months or Longer, Unrealized Losses | (8) | (11) |
Debt Securities, Available-for-sale, Unrealized Loss Position | 1,096 | 1,316 |
Gross Unrealized Losses | $ (8) | (19) |
U.S. Treasury and government debt securities | ||
Debt Securities in a Continuous Unrealized Loss Position | ||
Less than 12 Months, Fair Value | 0 | |
Less than 12 month, Unrealized Losses | 0 | |
12 Months or Longer, Fair Value | 297 | |
12 Months or Longer, Unrealized Losses | (3) | |
Debt Securities, Available-for-sale, Unrealized Loss Position | 297 | |
Gross Unrealized Losses | $ (3) |
Investments (Contractual Maturi
Investments (Contractual Maturities) (Details) - USD ($) $ in Thousands | Sep. 28, 2019 | Mar. 30, 2019 |
Amortized Cost | ||
Due in less than one year | $ 507 | |
Due after one year through five years | 3,215 | |
Due after five years through ten years | 263 | |
Due after ten years | 1,922 | |
Mortgage-backed securities | 6,168 | |
Amortized Cost | 12,075 | $ 13,443 |
Fair Value | ||
Due in less than one year | 507 | |
Due after one year through five years | 3,218 | |
Due after five years through ten years | 283 | |
Due after ten years | 2,031 | |
Mortgage-backed securities | 6,142 | |
Fair Value | $ 12,181 | $ 13,408 |
Investments (Recognized Gains a
Investments (Recognized Gains and Losses) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | |
Gain (Loss) on Securities | ||||
Value of investments to be other-than-temporarily impaired | $ 0 | |||
Gross gains realized on debt securities | $ 0 | $ 0 | 0 | $ 0 |
Gross losses realized on debt securities | 0 | 0 | 0 | 0 |
Equity Securities gain on investments held | 350 | 1,302 | 1,298 | |
Equity Securities loss on investments held | (312) | |||
Equity Securities loss on investments sold | (1) | (13) | (2) | (53) |
Gain (Loss) on Equity Securities | $ 349 | $ (325) | $ 1,300 | $ 1,245 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Sep. 28, 2019 | Mar. 30, 2019 |
Summary of inventories | ||
Raw materials | $ 35,330 | $ 33,701 |
Work in process | 12,655 | 12,212 |
Finished goods and other | 67,220 | 70,290 |
Total Inventories | $ 115,205 | $ 116,203 |
Consumer Loans Receivable (Summ
Consumer Loans Receivable (Summary of Consumer Loans Receivable) (Details) - USD ($) $ in Thousands | Sep. 28, 2019 | Mar. 30, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment (acquired on Palm Harbor Acquisition Date) | $ 40,983 | $ 44,375 |
Loans held for investment (originated after Palm Harbor Acquisition Date) | 19,530 | 20,580 |
Loans held for sale | 16,801 | 11,288 |
Deferred financing fees and other, net | (2,208) | (1,926) |
Allowance for loan losses | (415) | (415) |
Consumer loans receivable, net | 88,952 | 86,785 |
Construction advances | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivables | 14,261 | 12,883 |
Consumer loans receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivables | $ 91,575 | $ 89,126 |
Consumer Loans Receivable (Su_2
Consumer Loans Receivable (Summary of Acquired Loans Receivable) (Details) - USD ($) $ in Thousands | 3 Months Ended | |||||
Sep. 28, 2019 | Mar. 30, 2019 | Jun. 29, 2019 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Consumer loans receivable held for investment - contractual amount | $ 91,723 | $ 100,595 | ||||
Purchase discount, accretable | (34,108) | (36,672) | $ (34,881) | $ (40,937) | $ (42,873) | $ (44,481) |
Purchase discount, non-accretable | (16,540) | (19,502) | ||||
Less consumer loans receivable reclassified as other assets | (92) | (46) | ||||
Total acquired consumer loans receivable held for investment, net | $ 40,983 | $ 44,375 | ||||
Weighted average prepayment rate | 16.40% | 17.10% | ||||
Weighted average default rate | 1.10% | 1.10% | ||||
Sensitivity Analysis, Change in Prepayment Rate | $ 881 | |||||
Sensitivity Analysis, Change in Default Rate | $ 2,500 | |||||
Unfavorable Variation | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Weighted average prepayment rate | 1.00% | |||||
Weighted average default rate | 1.00% |
Consumer Loans Receivable (Chan
Consumer Loans Receivable (Changes in Accretable Yield on Acquired Loans Receivable) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | |
Accretable Yield Movement on Acquired Consumer Loans Receivable | ||||
Balance at the beginning of the period | $ 34,881 | $ 42,873 | $ 36,672 | $ 44,481 |
Accretion | (1,713) | (1,968) | (3,480) | (3,867) |
Reclassification to non-accretable discount | 940 | 32 | 916 | 323 |
Balance at the end of the period | $ 34,108 | $ 40,937 | $ 34,108 | $ 40,937 |
Consumer Loans Receivable (Loan
Consumer Loans Receivable (Loans Held for investment) (Details) | 3 Months Ended | |
Sep. 28, 2019 | Mar. 30, 2019 | |
Receivables [Abstract] | ||
Weighted average contractual interest rate | 8.49% | 8.49% |
Weighted average effective interest rate | 9.20% | 9.11% |
Weighted average months to maturity | 159 months | 163 months |
Consumer Loans Receivable (Cons
Consumer Loans Receivable (Consumer Loan Receivables by Segment and Credit Quality Indicator) (Details) $ in Thousands | Sep. 28, 2019USD ($)Credit_Quality_Indicator | Mar. 30, 2019USD ($) |
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score | ||
Consumer loans receivable | $ 91,575 | $ 89,126 |
Home-only Loans | ||
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score | ||
Consumer loans receivable | 46,038 | 49,621 |
Home-only loans range one | ||
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score | ||
Consumer loans receivable | $ 855 | 912 |
Home-only loans range one | Minimum | ||
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score | ||
Asset class credit quality indicator | Credit_Quality_Indicator | 0 | |
Home-only loans range one | Maximum | ||
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score | ||
Asset class credit quality indicator | Credit_Quality_Indicator | 619 | |
Home-only loans range two | ||
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score | ||
Consumer loans receivable | $ 23,606 | 24,710 |
Home-only loans range two | Minimum | ||
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score | ||
Asset class credit quality indicator | Credit_Quality_Indicator | 620 | |
Home-only loans range two | Maximum | ||
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score | ||
Asset class credit quality indicator | Credit_Quality_Indicator | 719 | |
Home-only loans range three | ||
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score | ||
Consumer loans receivable | $ 21,149 | 23,562 |
Home-only loans range three | Minimum | ||
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score | ||
Asset class credit quality indicator | Credit_Quality_Indicator | 720 | |
Home-only loans range four | ||
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score | ||
Consumer loans receivable | $ 428 | 437 |
Conforming mortgages | ||
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score | ||
Consumer loans receivable | 33,264 | 26,523 |
Conforming mortgages range one | ||
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score | ||
Consumer loans receivable | $ 83 | 543 |
Conforming mortgages range one | Minimum | ||
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score | ||
Asset class credit quality indicator | Credit_Quality_Indicator | 0 | |
Conforming mortgages range one | Maximum | ||
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score | ||
Asset class credit quality indicator | Credit_Quality_Indicator | 619 | |
Conforming mortgages range two | ||
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score | ||
Consumer loans receivable | $ 19,655 | 17,148 |
Conforming mortgages range two | Minimum | ||
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score | ||
Asset class credit quality indicator | Credit_Quality_Indicator | 620 | |
Conforming mortgages range two | Maximum | ||
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score | ||
Asset class credit quality indicator | Credit_Quality_Indicator | 719 | |
Conforming mortgages range three | ||
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score | ||
Consumer loans receivable | $ 13,223 | 8,832 |
Conforming mortgages range three | Minimum | ||
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score | ||
Asset class credit quality indicator | Credit_Quality_Indicator | 720 | |
Conforming mortgages range four | ||
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score | ||
Consumer loans receivable | $ 303 | |
Non-conforming mortgages | ||
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score | ||
Consumer loans receivable | 12,241 | 12,976 |
Non-conforming mortgages range one | ||
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score | ||
Consumer loans receivable | $ 1,353 | 1,413 |
Non-conforming mortgages range one | Minimum | ||
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score | ||
Asset class credit quality indicator | Credit_Quality_Indicator | 0 | |
Non-conforming mortgages range one | Maximum | ||
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score | ||
Asset class credit quality indicator | Credit_Quality_Indicator | 619 | |
Non-conforming mortgages range two | ||
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score | ||
Consumer loans receivable | $ 7,340 | 7,689 |
Non-conforming mortgages range two | Minimum | ||
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score | ||
Asset class credit quality indicator | Credit_Quality_Indicator | 620 | |
Non-conforming mortgages range two | Maximum | ||
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score | ||
Asset class credit quality indicator | Credit_Quality_Indicator | 719 | |
Non-conforming mortgages range three | ||
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score | ||
Consumer loans receivable | $ 3,366 | 3,660 |
Non-conforming mortgages range three | Minimum | ||
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score | ||
Asset class credit quality indicator | Credit_Quality_Indicator | 720 | |
Non-conforming mortgages range four | ||
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score | ||
Consumer loans receivable | $ 182 | 214 |
Other loans | ||
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score | ||
Consumer loans receivable | 32 | 6 |
Securitized 2005 | ||
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score | ||
Consumer loans receivable | 18,390 | 20,296 |
Securitized 2005 | Home-only Loans | ||
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score | ||
Consumer loans receivable | 16,379 | 17,986 |
Securitized 2005 | Home-only loans range one | ||
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score | ||
Consumer loans receivable | 374 | 401 |
Securitized 2005 | Home-only loans range two | ||
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score | ||
Consumer loans receivable | 7,615 | 8,448 |
Securitized 2005 | Home-only loans range three | ||
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score | ||
Consumer loans receivable | 8,344 | 9,090 |
Securitized 2005 | Home-only loans range four | ||
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score | ||
Consumer loans receivable | 46 | 47 |
Securitized 2005 | Conforming mortgages | ||
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score | ||
Consumer loans receivable | 0 | 0 |
Securitized 2005 | Conforming mortgages range one | ||
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score | ||
Consumer loans receivable | 0 | 0 |
Securitized 2005 | Conforming mortgages range two | ||
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score | ||
Consumer loans receivable | 0 | 0 |
Securitized 2005 | Conforming mortgages range three | ||
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score | ||
Consumer loans receivable | 0 | 0 |
Securitized 2005 | Conforming mortgages range four | ||
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score | ||
Consumer loans receivable | 0 | |
Securitized 2005 | Non-conforming mortgages | ||
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score | ||
Consumer loans receivable | 2,011 | 2,310 |
Securitized 2005 | Non-conforming mortgages range one | ||
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score | ||
Consumer loans receivable | 76 | 78 |
Securitized 2005 | Non-conforming mortgages range two | ||
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score | ||
Consumer loans receivable | 811 | 994 |
Securitized 2005 | Non-conforming mortgages range three | ||
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score | ||
Consumer loans receivable | 1,124 | 1,238 |
Securitized 2005 | Non-conforming mortgages range four | ||
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score | ||
Consumer loans receivable | 0 | 0 |
Securitized 2005 | Other loans | ||
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score | ||
Consumer loans receivable | 0 | 0 |
Securitized 2007 | ||
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score | ||
Consumer loans receivable | 17,006 | 18,065 |
Securitized 2007 | Home-only Loans | ||
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score | ||
Consumer loans receivable | 10,752 | 11,660 |
Securitized 2007 | Home-only loans range one | ||
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score | ||
Consumer loans receivable | 228 | 245 |
Securitized 2007 | Home-only loans range two | ||
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score | ||
Consumer loans receivable | 5,629 | 5,996 |
Securitized 2007 | Home-only loans range three | ||
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score | ||
Consumer loans receivable | 4,895 | 5,419 |
Securitized 2007 | Home-only loans range four | ||
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score | ||
Consumer loans receivable | 0 | 0 |
Securitized 2007 | Conforming mortgages | ||
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score | ||
Consumer loans receivable | 0 | 0 |
Securitized 2007 | Conforming mortgages range one | ||
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score | ||
Consumer loans receivable | 0 | 0 |
Securitized 2007 | Conforming mortgages range two | ||
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score | ||
Consumer loans receivable | 0 | 0 |
Securitized 2007 | Conforming mortgages range three | ||
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score | ||
Consumer loans receivable | 0 | 0 |
Securitized 2007 | Conforming mortgages range four | ||
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score | ||
Consumer loans receivable | 0 | |
Securitized 2007 | Non-conforming mortgages | ||
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score | ||
Consumer loans receivable | 6,254 | 6,405 |
Securitized 2007 | Non-conforming mortgages range one | ||
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score | ||
Consumer loans receivable | 327 | 344 |
Securitized 2007 | Non-conforming mortgages range two | ||
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score | ||
Consumer loans receivable | 3,915 | 4,008 |
Securitized 2007 | Non-conforming mortgages range three | ||
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score | ||
Consumer loans receivable | 2,012 | 2,053 |
Securitized 2007 | Non-conforming mortgages range four | ||
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score | ||
Consumer loans receivable | 0 | 0 |
Securitized 2007 | Other loans | ||
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score | ||
Consumer loans receivable | 0 | 0 |
Unsecuritized | ||
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score | ||
Consumer loans receivable | 25,117 | 26,594 |
Unsecuritized | Home-only Loans | ||
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score | ||
Consumer loans receivable | 18,658 | 19,358 |
Unsecuritized | Home-only loans range one | ||
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score | ||
Consumer loans receivable | 253 | 266 |
Unsecuritized | Home-only loans range two | ||
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score | ||
Consumer loans receivable | 10,275 | 10,266 |
Unsecuritized | Home-only loans range three | ||
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score | ||
Consumer loans receivable | 7,748 | 8,436 |
Unsecuritized | Home-only loans range four | ||
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score | ||
Consumer loans receivable | 382 | 390 |
Unsecuritized | Conforming mortgages | ||
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score | ||
Consumer loans receivable | 2,451 | 2,969 |
Unsecuritized | Conforming mortgages range one | ||
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score | ||
Consumer loans receivable | 83 | 83 |
Unsecuritized | Conforming mortgages range two | ||
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score | ||
Consumer loans receivable | 1,550 | 2,202 |
Unsecuritized | Conforming mortgages range three | ||
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score | ||
Consumer loans receivable | 818 | 684 |
Unsecuritized | Conforming mortgages range four | ||
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score | ||
Consumer loans receivable | 0 | |
Unsecuritized | Non-conforming mortgages | ||
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score | ||
Consumer loans receivable | 3,976 | 4,261 |
Unsecuritized | Non-conforming mortgages range one | ||
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score | ||
Consumer loans receivable | 950 | 991 |
Unsecuritized | Non-conforming mortgages range two | ||
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score | ||
Consumer loans receivable | 2,614 | 2,687 |
Unsecuritized | Non-conforming mortgages range three | ||
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score | ||
Consumer loans receivable | 230 | 369 |
Unsecuritized | Non-conforming mortgages range four | ||
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score | ||
Consumer loans receivable | 182 | 214 |
Unsecuritized | Other loans | ||
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score | ||
Consumer loans receivable | 32 | 6 |
Construction Advances | ||
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score | ||
Consumer loans receivable | 14,261 | 12,883 |
Construction Advances | Home-only Loans | ||
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score | ||
Consumer loans receivable | 0 | 0 |
Construction Advances | Home-only loans range one | ||
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score | ||
Consumer loans receivable | 0 | 0 |
Construction Advances | Home-only loans range two | ||
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score | ||
Consumer loans receivable | 0 | 0 |
Construction Advances | Home-only loans range three | ||
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score | ||
Consumer loans receivable | 0 | 0 |
Construction Advances | Home-only loans range four | ||
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score | ||
Consumer loans receivable | 0 | 0 |
Construction Advances | Conforming mortgages | ||
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score | ||
Consumer loans receivable | 14,261 | 12,883 |
Construction Advances | Conforming mortgages range one | ||
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score | ||
Consumer loans receivable | 0 | 0 |
Construction Advances | Conforming mortgages range two | ||
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score | ||
Consumer loans receivable | 9,616 | 8,061 |
Construction Advances | Conforming mortgages range three | ||
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score | ||
Consumer loans receivable | 4,645 | 4,822 |
Construction Advances | Conforming mortgages range four | ||
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score | ||
Consumer loans receivable | 0 | |
Construction Advances | Non-conforming mortgages | ||
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score | ||
Consumer loans receivable | 0 | 0 |
Construction Advances | Non-conforming mortgages range one | ||
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score | ||
Consumer loans receivable | 0 | 0 |
Construction Advances | Non-conforming mortgages range two | ||
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score | ||
Consumer loans receivable | 0 | 0 |
Construction Advances | Non-conforming mortgages range three | ||
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score | ||
Consumer loans receivable | 0 | 0 |
Construction Advances | Non-conforming mortgages range four | ||
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score | ||
Consumer loans receivable | 0 | 0 |
Construction Advances | Other loans | ||
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score | ||
Consumer loans receivable | 0 | 0 |
Consumer Loans Held For Sale | ||
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score | ||
Consumer loans receivable | 16,801 | 11,288 |
Consumer Loans Held For Sale | Home-only Loans | ||
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score | ||
Consumer loans receivable | 249 | 617 |
Consumer Loans Held For Sale | Home-only loans range one | ||
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score | ||
Consumer loans receivable | 0 | 0 |
Consumer Loans Held For Sale | Home-only loans range two | ||
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score | ||
Consumer loans receivable | 87 | 0 |
Consumer Loans Held For Sale | Home-only loans range three | ||
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score | ||
Consumer loans receivable | 162 | 617 |
Consumer Loans Held For Sale | Home-only loans range four | ||
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score | ||
Consumer loans receivable | 0 | 0 |
Consumer Loans Held For Sale | Conforming mortgages | ||
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score | ||
Consumer loans receivable | 16,552 | 10,671 |
Consumer Loans Held For Sale | Conforming mortgages range one | ||
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score | ||
Consumer loans receivable | 0 | 460 |
Consumer Loans Held For Sale | Conforming mortgages range two | ||
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score | ||
Consumer loans receivable | 8,489 | 6,885 |
Consumer Loans Held For Sale | Conforming mortgages range three | ||
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score | ||
Consumer loans receivable | 7,760 | 3,326 |
Consumer Loans Held For Sale | Conforming mortgages range four | ||
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score | ||
Consumer loans receivable | 303 | |
Consumer Loans Held For Sale | Non-conforming mortgages | ||
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score | ||
Consumer loans receivable | 0 | 0 |
Consumer Loans Held For Sale | Non-conforming mortgages range one | ||
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score | ||
Consumer loans receivable | 0 | 0 |
Consumer Loans Held For Sale | Non-conforming mortgages range two | ||
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score | ||
Consumer loans receivable | 0 | 0 |
Consumer Loans Held For Sale | Non-conforming mortgages range three | ||
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score | ||
Consumer loans receivable | 0 | 0 |
Consumer Loans Held For Sale | Non-conforming mortgages range four | ||
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score | ||
Consumer loans receivable | 0 | 0 |
Consumer Loans Held For Sale | Other loans | ||
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score | ||
Consumer loans receivable | $ 0 | $ 0 |
Consumer Loans Receivable (Narr
Consumer Loans Receivable (Narrative) (Details) - USD ($) $ in Millions | 6 Months Ended | |
Sep. 28, 2019 | Mar. 30, 2019 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percentage concentration of consumer loans receivable | 10.00% | |
Repossessed Homes | $ 1 | $ 1.5 |
Mortgage Loans in Process of Foreclosure, Amount | $ 1.2 | $ 1.5 |
TEXAS | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Consumer Loans Receivable Geographical Concentration Percentage | 42.00% | 44.00% |
FLORIDA | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Consumer Loans Receivable Geographical Concentration Percentage | 12.00% | 12.00% |
Commercial Loans Receivables _3
Commercial Loans Receivables and Allowance for Loan Loss (Commercial Loans Receivables, Net) (Details) - USD ($) $ in Thousands | 3 Months Ended | |||||
Sep. 28, 2019 | Mar. 30, 2019 | Jun. 29, 2019 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | |
Commercial Loans Receivable | ||||||
Allowance for loan loss | $ (163) | $ (180) | $ (191) | $ (135) | $ (113) | $ (42) |
Weighted average contractual interest rate, commercial | 5.50% | 5.70% | ||||
Weighted average months to maturity, commercial | 9 months | 7 months | ||||
Commercial loans receivable | ||||||
Commercial Loans Receivable | ||||||
Allowance for loan loss | $ (163) | $ (180) | ||||
Deferred Discounts, Finance Charges and Interest Included in Receivables | (239) | (208) | ||||
Financing Receivable, after Allowance for Credit Loss | 46,259 | 43,006 | ||||
Direct loans receivable | ||||||
Commercial Loans Receivable | ||||||
Financing Receivable, before Allowance for Credit Loss | 46,399 | 42,899 | ||||
Allowance for loan loss | (163) | (180) | ||||
Direct loans receivable | Commercial loans receivable | ||||||
Commercial Loans Receivable | ||||||
Financing Receivable, before Allowance for Credit Loss | 46,399 | 42,899 | ||||
Participation loans receivable | ||||||
Commercial Loans Receivable | ||||||
Financing Receivable, before Allowance for Credit Loss | 262 | 495 | ||||
Allowance for loan loss | 0 | 0 | ||||
Participation loans receivable | Commercial loans receivable | ||||||
Commercial Loans Receivable | ||||||
Financing Receivable, before Allowance for Credit Loss | $ 262 | $ 495 |
Commercial Loans Receivables _4
Commercial Loans Receivables and Allowance for Loan Loss (Changes in the Estimated Allowance for Loan Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | |
Changes in the Allowance for Loan Losses on Commercial Loans Receivables | ||||
Balance at beginning of period | $ 191 | $ 113 | $ 180 | $ 42 |
Change in estimated loan losses, net | (28) | 22 | (17) | 93 |
Loans charged off, net of recoveries | 0 | 0 | 0 | 0 |
Balance at end of period | $ 163 | $ 135 | $ 163 | $ 135 |
Commercial Loans Receivables _5
Commercial Loans Receivables and Allowance for Loan Loss (Finance Receivables by Evaluation Methodology) (Details) - USD ($) $ in Thousands | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 |
Allowance for loan losses and commercial loans receivables by class individually and collectively evaluated for impairment | ||||||
Allowance for loan loss | $ (163) | $ (191) | $ (180) | $ (135) | $ (113) | $ (42) |
Direct loans receivable | ||||||
Allowance for loan losses and commercial loans receivables by class individually and collectively evaluated for impairment | ||||||
Financing Receivable, Collectively Evaluated for Impairment | 16,276 | 18,018 | ||||
Financing Receivable, Individually Evaluated for Impairment | 30,123 | 24,881 | ||||
Financing Receivable, before Allowance for Credit Loss | 46,399 | 42,899 | ||||
Allowance for loan loss: collectively evaluated for impairment | (163) | (180) | ||||
Allowance for loan loss: individually evaluated for impairment | 0 | 0 | ||||
Allowance for loan loss | (163) | (180) | ||||
Participation loans receivable | ||||||
Allowance for loan losses and commercial loans receivables by class individually and collectively evaluated for impairment | ||||||
Financing Receivable, Collectively Evaluated for Impairment | 0 | 0 | ||||
Financing Receivable, Individually Evaluated for Impairment | 262 | 495 | ||||
Financing Receivable, before Allowance for Credit Loss | 262 | 495 | ||||
Allowance for loan loss: collectively evaluated for impairment | 0 | 0 | ||||
Allowance for loan loss: individually evaluated for impairment | 0 | 0 | ||||
Allowance for loan loss | $ 0 | $ 0 |
Commercial Loans Receivables _6
Commercial Loans Receivables and Allowance for Loan Loss (Commercial Loans Receivables by Class and Credit Quality Indicator) (Details) - USD ($) $ in Thousands | Sep. 28, 2019 | Mar. 30, 2019 |
Direct loans receivable | ||
Risk profile based on payment activity | ||
Financing Receivable, before Allowance for Credit Loss | $ 46,399 | $ 42,899 |
Direct loans receivable | Performing | ||
Risk profile based on payment activity | ||
Financing Receivable, before Allowance for Credit Loss | 46,399 | 42,899 |
Direct loans receivable | Watch list | ||
Risk profile based on payment activity | ||
Financing Receivable, before Allowance for Credit Loss | 0 | 0 |
Direct loans receivable | Nonperforming | ||
Risk profile based on payment activity | ||
Financing Receivable, before Allowance for Credit Loss | 0 | 0 |
Participation loans receivable | ||
Risk profile based on payment activity | ||
Financing Receivable, before Allowance for Credit Loss | 262 | 495 |
Participation loans receivable | Performing | ||
Risk profile based on payment activity | ||
Financing Receivable, before Allowance for Credit Loss | 262 | 495 |
Participation loans receivable | Watch list | ||
Risk profile based on payment activity | ||
Financing Receivable, before Allowance for Credit Loss | 0 | 0 |
Participation loans receivable | Nonperforming | ||
Risk profile based on payment activity | ||
Financing Receivable, before Allowance for Credit Loss | $ 0 | $ 0 |
Commercial Loans Receivables _7
Commercial Loans Receivables and Allowance for Loan Loss (Concentrations of Commercial Loans Receivables) (Details) | Sep. 28, 2019 | Mar. 30, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Concentration with one independent third-party and its affiliates | 24.40% | 22.00% |
CALIFORNIA | ||
Geographic Concentration of Commercial Loans Receivables in Key States | ||
Commercial Loans Receivables Geographic Concentration Percentage | 15.70% | 21.10% |
ARIZONA | ||
Geographic Concentration of Commercial Loans Receivables in Key States | ||
Commercial Loans Receivables Geographic Concentration Percentage | 14.90% | 16.30% |
OREGON | ||
Geographic Concentration of Commercial Loans Receivables in Key States | ||
Commercial Loans Receivables Geographic Concentration Percentage | 10.40% |
Commercial Loans Receivables _8
Commercial Loans Receivables and Allowance for Loan Loss (Narrative) (Details) - USD ($) $ in Thousands | 6 Months Ended | |||||
Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | |
Receivables [Abstract] | ||||||
Allowance for loan loss | $ 163 | $ 191 | $ 180 | $ 135 | $ 113 | $ 42 |
Due days for loans accounted for on a non-accrual basis and accruing loans with principal payments past | 90 days or more | |||||
Due days for loans on nonaccrual status when interest is past due and remains unpaid | 90 days or more | |||||
Percentage concentration of commercial loans receivables | 10.00% | 10.00% |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Sep. 28, 2019 | Mar. 30, 2019 |
Property, plant and equipment | ||
Property, plant and equipment, at cost | $ 100,451 | $ 91,388 |
Accumulated depreciation | (30,252) | (27,904) |
Property, plant and equipment, net | 70,199 | 63,484 |
Land | ||
Property, plant and equipment | ||
Property, plant and equipment, at cost | 21,723 | 21,359 |
Buildings and improvements | ||
Property, plant and equipment | ||
Property, plant and equipment, at cost | 49,972 | 42,976 |
Machinery and equipment | ||
Property, plant and equipment | ||
Property, plant and equipment, at cost | $ 28,756 | $ 27,053 |
Property, Plant and Equipment_3
Property, Plant and Equipment (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | |
Property, Plant and Equipment [Line Items] | ||||
Depreciation | $ 1.3 | $ 1.1 | $ 2.4 | $ 2.1 |
Leases (Lease Assets and Liabil
Leases (Lease Assets and Liabilities) (Details) - USD ($) $ in Thousands | Sep. 28, 2019 | Mar. 30, 2019 | |
Leases [Abstract] | |||
Operating lease assets | $ 11,732 | $ 0 | |
Finance lease assets | [1] | 1,685 | |
Total lease assets | 13,417 | ||
Accumulated Amortization | 89 | ||
Operating lease liabilities, current | 3,786 | 0 | |
Finance lease liabilities, current | 726 | ||
Operating lease liabilities, non-current | 8,735 | $ 0 | |
Finance lease liabilities, non-current | 317 | ||
Total lease liabilities | $ 13,564 | ||
[1] | Recorded net of accumulated amortization of $89,000 as of September 28, 2019 . |
Leases (Lease Expense) (Details
Leases (Lease Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Sep. 28, 2019 | Sep. 28, 2019 | ||
Amortization of leased assets | $ 10 | $ 19 | |
Interest on lease liabilities | 14 | 27 | |
Total lease expense | 1,008 | 1,992 | |
Operating lease payments | 832 | 1,600 | |
Finance lease payments | 36 | 70 | |
Cost of Sales | |||
Operating lease expense | 208 | [1] | 417 |
Selling, General and Administrative Expenses | |||
Operating lease expense | $ 776 | [1] | $ 1,529 |
[1] | Excludes short-term and variable lease expenses, which are immaterial. |
Leases (Future Minimum Payments
Leases (Future Minimum Payments) (Details) - USD ($) $ in Thousands | Sep. 28, 2019 | Mar. 30, 2019 |
Future minimum lease payments | ||
Remainder of 2020 | $ 2,449 | |
2021 | 3,876 | |
2022 | 2,955 | |
2023 | 1,948 | |
2024 | 1,518 | |
Thereafter | 2,733 | |
Total lease payments | 15,479 | |
Less: Amount representing interest | (1,915) | |
Present value of lease liabilities | 13,564 | |
Operating leases | ||
Remainder of 2020 | 1,746 | |
2021 | 3,797 | |
2022 | 2,882 | |
2023 | 1,875 | |
2024 | 1,445 | |
Thereafter | 2,611 | |
Total lease payments | 14,356 | |
Less: Amount representing interest | (1,835) | |
Present value of lease liabilities | 12,521 | |
Finance Leases | ||
Remainder of 2020 | 703 | |
2021 | 79 | |
2022 | 73 | |
2023 | 73 | |
2024 | 73 | |
Thereafter | 122 | |
Total lease payments | 1,123 | |
Less: Amount representing interest | (80) | |
Present value of lease liabilities | $ 1,043 | $ 0 |
Leases (Weighted Average Disclo
Leases (Weighted Average Disclosure) (Details) | Sep. 28, 2019 |
Leases [Abstract] | |
Weighted average remaining lease term, operating leases | 4 years 9 months 18 days |
Weighted average remaining lease term, finance leases | 2 years 6 months |
Weighted average discount rate, operating leases | 4.50% |
Weighted average discount rate, finance leases | 5.00% |
Leases (Pre 842 adoption) (Deta
Leases (Pre 842 adoption) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 30, 2019 | Mar. 31, 2018 | Apr. 01, 2017 | |
Leases [Abstract] | |||
Rent expense | $ 5,200 | $ 5,300 | $ 5,300 |
Future minimum lease payments | |||
2020 | 2,292 | ||
2021 | 2,197 | ||
2022 | 1,389 | ||
2023 | 1,072 | ||
2024 and thereafter | 1,372 | ||
Total remaining lease payments | $ 8,322 |
Goodwill and Other Intangibles
Goodwill and Other Intangibles (Summary of Goodwill and Other Intangibles) (Details) - USD ($) $ in Thousands | Sep. 28, 2019 | Aug. 02, 2019 | Mar. 30, 2019 |
Acquired Finite and Indefinite Lived Intangible Assets [Line Items] | |||
Goodwill | $ 2,104 | ||
Indefinite lived: | |||
Gross Carrying Amount | $ 85,024 | $ 81,220 | |
Net Carrying Amount | 85,024 | 81,220 | |
Finite lived: | |||
Intangible Assets Including Goodwill Gross | 97,748 | 89,704 | |
Accumulated Amortization | (7,239) | (7,008) | |
Intangible Assets, Net (Including Goodwill) | 90,509 | 82,696 | |
Customer relationships | |||
Finite lived: | |||
Gross Carrying Amount | 11,300 | 7,100 | |
Accumulated Amortization | (6,146) | (5,970) | |
Net Carrying Amount | 5,154 | 1,130 | |
Other Intangible Assets | |||
Finite lived: | |||
Gross Carrying Amount | 1,424 | 1,384 | |
Accumulated Amortization | (1,093) | (1,038) | |
Net Carrying Amount | 331 | 346 | |
Goodwill | |||
Acquired Finite and Indefinite Lived Intangible Assets [Line Items] | |||
Goodwill | 75,024 | 72,920 | |
Trademarks and trade names | |||
Acquired Finite and Indefinite Lived Intangible Assets [Line Items] | |||
Indefinite lived intangible assets including goodwill. | 8,900 | 7,200 | |
State insurance licenses | |||
Acquired Finite and Indefinite Lived Intangible Assets [Line Items] | |||
Indefinite lived intangible assets including goodwill. | $ 1,100 | $ 1,100 |
Goodwill and Other Intangible_2
Goodwill and Other Intangibles (Narrative) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | |
Goodwill and Other Intangibles (Textual) [Abstract] | ||||
Amortization expense on intangible assets | $ 151,000 | $ 80,000 | $ 231,000 | $ 164,000 |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) $ in Thousands | Sep. 28, 2019 | Mar. 30, 2019 |
Accrued liabilities | ||
Salaries, wages and benefits | $ 25,910 | $ 25,257 |
Customer deposits | 22,385 | 17,804 |
Unearned insurance premiums | 19,375 | 18,305 |
Estimated warranties | 18,563 | 17,069 |
Accrued volume rebates | 12,240 | 10,412 |
Insurance loss reserves | 5,659 | 6,686 |
Accrued self-insurance | 5,485 | 5,171 |
Company repurchase options on certain loans sold | 4,512 | 3,810 |
Operating lease liability | 3,786 | 0 |
Reserve for repurchase commitments | 3,011 | 2,362 |
Accrued taxes | 2,547 | 1,767 |
Capital lease obligation | 0 | 1,075 |
Other | 14,463 | 15,463 |
Total accrued liabilities | $ 137,936 | $ 125,181 |
Warranties (Activity for Estima
Warranties (Activity for Estimated Warranty Liability) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | |
Accrual for estimated warranties | ||||
Balance at beginning of period | $ 17,760 | $ 16,670 | $ 17,069 | $ 16,638 |
Purchase accounting additions | 1,192 | 0 | 1,192 | 0 |
Charged to costs and expenses | 6,765 | 6,713 | 14,586 | 12,942 |
Payments and deductions | (7,154) | (6,478) | (14,284) | (12,675) |
Balance at end of period | $ 18,563 | $ 16,905 | $ 18,563 | $ 16,905 |
Debt and Finance Lease Obliga_3
Debt and Finance Lease Obligations (Summary of Debt Obligations) (Details) - USD ($) $ in Thousands | Sep. 28, 2019 | Mar. 30, 2019 |
Debt Obligations | ||
Securitized financing 2007-1 | $ 0 | $ 18,364 |
Secured credit facilities | 10,974 | 11,289 |
Other secured financings | 4,217 | 4,487 |
Finance lease liability | 1,043 | 0 |
Total debt obligations | $ 16,234 | $ 34,140 |
Debt and Finance Lease Obliga_4
Debt and Finance Lease Obligations (Changes in Accretable Yield on Securitized Financings) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | |
Accretable Yield Movement on Acquired Securitized Financings | ||||
Balance at the beginning of the period | $ 206 | $ 2,697 | $ 491 | $ 3,515 |
Accretion | (206) | (774) | (577) | (1,577) |
Adjustment to cash flows | 0 | 89 | 86 | (104) |
Balance at the end of the period | $ 0 | $ 1,834 | $ 0 | $ 1,834 |
Debt and Finance Lease Obliga_5
Debt and Finance Lease Obligations (Narrative) (Details) $ in Millions | 6 Months Ended |
Sep. 28, 2019USD ($) | |
Debt Disclosure [Abstract] | |
Secured credit facility frequency of payments | 20 or 25 year amortization period with a balloon payment due upon maturity |
Maximum Advance under Secured Credit Facility | 80.00% |
Secured credit facilities | $ 11 |
Secured credit facility interest rate | 4.91% |
Reinsurance (Details)
Reinsurance (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | |
Reinsurance Effect on Premiums Written and Earned | ||||
Direct premiums Written | $ 4,179 | $ 3,820 | $ 9,212 | $ 8,361 |
Assumed premiums - nonaffiliate Written | 6,760 | 6,280 | 14,273 | 13,214 |
Ceded premiums - nonaffiliate Written | (3,029) | (3,135) | (6,016) | (5,982) |
Net premiums Written | 7,910 | 6,965 | 17,469 | 15,593 |
Direct premiums Earned | 4,653 | 4,249 | 9,223 | 8,460 |
Assumed premiums - nonaffiliate Earned | 6,592 | 6,350 | 13,027 | 12,584 |
Ceded premiums - nonaffiliate Earned | (3,029) | (3,135) | (6,016) | (5,982) |
Premiums Earned, Net | $ 8,216 | $ 7,464 | $ 16,234 | $ 15,062 |
Reinsurance (Details Textual)
Reinsurance (Details Textual) $ in Thousands | 6 Months Ended |
Sep. 28, 2019USD ($) | |
Insurance [Abstract] | |
Insurance policies maximum coverage per claim | $ 300 |
Insurance policies coverage per claim ceded to reinsurers | 175 |
Insurance policy risk of loss maintained per claim | 125 |
Catastrophic losses recoverable in excess of amount | 1,500 |
Aggregate catastrophic losses recoverable in excess of amount | $ 43,500 |
Commitments and Contingencies_3
Commitments and Contingencies (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | Mar. 30, 2019 | |
Loss Contingencies | |||||
Reserves Related to Consumer Loans Sold | $ 1,000 | $ 1,000 | $ 1,000 | ||
IRLC Loan Commitment Range Minimum | 30 days | ||||
IRLC Loan Commitment Range Maximum | 180 days | ||||
Assets Sold under Agreements to Repurchase, Repurchase Liability | 3,011 | $ 3,011 | 2,362 | ||
Product repurchase | |||||
Loss Contingencies | |||||
Repurchase agreements period | generally 18 to 36 months, calculated from the date of sale to the distributor | ||||
Loss contingencies | 3,000 | $ 3,000 | $ 2,400 | ||
Product repurchase | Maximum | |||||
Loss Contingencies | |||||
Loss contingencies | 93,800 | 93,800 | |||
Letter of Credit | |||||
Loss Contingencies | |||||
Loss contingencies | 11,000 | 11,000 | |||
CountryPlace | |||||
Loss Contingencies | |||||
IRLCs recorded at fair value | 18,600 | 18,600 | |||
Recognized gain (loss) on outstanding IRLCs | (2) | $ (8) | (3) | $ 12 | |
Forward Commitments Recorded at Fair Value | 53,900 | 53,900 | |||
Recognized gain (loss) on the forward sales and whole loan commitments | $ 49 | $ 237 | $ 84 | $ 62 |
Commitments and Contingencies_4
Commitments and Contingencies (Loan Contracts with Off-Balance Sheet Commitments) (Details) - USD ($) $ in Thousands | Sep. 28, 2019 | Mar. 30, 2019 |
Loan Contracts with Off-Balance Sheet Commitments | ||
Construction loan contract amount | $ 32,822 | $ 28,230 |
Remaining construction contingent commitment | 18,561 | 15,347 |
Construction advances | ||
Loan Contracts with Off-Balance Sheet Commitments | ||
Financing Receivable, before Allowance for Credit Loss | $ (14,261) | $ (12,883) |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Sep. 28, 2019 | Jun. 29, 2019 | Sep. 29, 2018 | Jun. 30, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning balance, common stock, shares | 9,098,320 | 9,098,320 | ||||
Ending balance, common stock, shares | 9,127,466 | 9,127,466 | ||||
Beginning balance | $ 550,337 | $ 529,588 | $ 475,687 | $ 457,106 | $ 529,588 | $ 457,106 |
Net income | 20,885 | 21,282 | 15,576 | 19,691 | 42,167 | 35,267 |
Issuance of common stock under stock incentive plans | 941 | (1,252) | 1,995 | (2,168) | ||
Stock-based compensation | 818 | 630 | 1,516 | 599 | ||
Other comprehensive income, net | 23 | 89 | (26) | 5 | ||
Ending balance | $ 573,004 | $ 550,337 | $ 494,748 | $ 475,687 | $ 573,004 | $ 494,748 |
Common Stock | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning balance, common stock, shares | 9,111,624 | 9,098,320 | 9,061,306 | 9,044,858 | 9,098,320 | 9,044,858 |
Issuance of common stock under stock incentive plans, shares | 15,842 | 13,304 | 36,053 | 16,448 | ||
Ending balance, common stock, shares | 9,127,466 | 9,111,624 | 9,097,359 | 9,061,306 | 9,127,466 | 9,097,359 |
Beginning balance | $ 91 | $ 91 | $ 91 | $ 90 | $ 91 | $ 90 |
Net income | 0 | 0 | 0 | 0 | ||
Issuance of common stock under stock incentive plans | 0 | 0 | 0 | 1 | ||
Stock-based compensation | 0 | 0 | 0 | 0 | ||
Other comprehensive income, net | 0 | 0 | 0 | 0 | ||
Ending balance | 91 | 91 | 91 | 91 | 91 | 91 |
Additional paid-in capital | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning balance | 248,825 | 249,447 | 244,627 | 246,197 | 249,447 | 246,197 |
Net income | 0 | 0 | 0 | 0 | ||
Issuance of common stock under stock incentive plans | 941 | (1,252) | 1,995 | (2,169) | ||
Stock-based compensation | 818 | 630 | 1,516 | 599 | ||
Other comprehensive income, net | 0 | 0 | 0 | 0 | ||
Ending balance | 250,584 | 248,825 | 248,138 | 244,627 | 250,584 | 248,138 |
Retained earnings | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning balance | 301,360 | 280,078 | 231,147 | 209,381 | 280,078 | 209,381 |
Net income | 20,885 | 21,282 | 15,576 | 19,691 | ||
Issuance of common stock under stock incentive plans | 0 | 0 | 0 | 0 | ||
Stock-based compensation | 0 | 0 | 0 | 0 | ||
Other comprehensive income, net | 0 | 0 | 0 | 0 | ||
Ending balance | 322,245 | 301,360 | 246,723 | 231,147 | 322,245 | 246,723 |
Accumulated other comprehensive income (loss) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning balance | 61 | (28) | (178) | 1,438 | (28) | 1,438 |
Net income | 0 | 0 | 0 | 0 | ||
Issuance of common stock under stock incentive plans | 0 | 0 | 0 | 0 | ||
Stock-based compensation | 0 | 0 | 0 | 0 | ||
Other comprehensive income, net | 23 | 89 | (26) | 5 | ||
Ending balance | $ 84 | $ 61 | $ (204) | (178) | $ 84 | $ (204) |
ASU 2016-01, net | ||||||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | 0 | |||||
ASU 2016-01, net | Common Stock | ||||||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | 0 | |||||
ASU 2016-01, net | Additional paid-in capital | ||||||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | 0 | |||||
ASU 2016-01, net | Retained earnings | ||||||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | 1,621 | |||||
ASU 2016-01, net | Accumulated other comprehensive income (loss) | ||||||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | (1,621) | |||||
ASC 606, net | ||||||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | 454 | |||||
ASC 606, net | Common Stock | ||||||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | 0 | |||||
ASC 606, net | Additional paid-in capital | ||||||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | 0 | |||||
ASC 606, net | Retained earnings | ||||||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | 454 | |||||
ASC 606, net | Accumulated other comprehensive income (loss) | ||||||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | $ 0 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares of Cavco common stock authorized for grant under stock incentive plans | 1,650,000 | 1,650,000 | ||
Number of shares of Cavco common stock available for grant under stock incentive plans | 229,347 | 229,347 | ||
Stock option exercise price as a percent of fair value of common stock | 100.00% | |||
Stock option expiration period | 7 years | |||
Stock-based compensation cost charged against income | $ 818 | $ 1,500 | $ 1,400 | $ 2,100 |
Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation cost related to stock options | $ 6,600 | $ 6,600 | ||
Weighted-average period over stock options expected to be recognized | 3 years 21 days | |||
Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Typical vesting period of stock options and restricted stock awards | 5 years |
Stock-Based Compensation (Stock
Stock-Based Compensation (Stock Option Activity) (Details) | 6 Months Ended |
Sep. 28, 2019shares | |
Restricted Stock Activity, Number of Awards [Roll Forward] | |
Beginning balance, awards outstanding | 0 |
Awarded | 11,850 |
Released | (400) |
Canceled or expired | 0 |
Ending balance, awards outstanding | 11,450 |
Stock Options | |
Stock Option Activity, Number of Shares [Roll Forward] | |
Beginning balance, shares outstanding | 411,111 |
Granted | 74,450 |
Exercised | (47,724) |
Canceled or forfeited | 0 |
Ending balance, shares outstanding | 437,837 |
Shares exercisable | 219,838 |
Performance-Based Awards | |
Restricted Stock Activity, Number of Awards [Roll Forward] | |
Beginning balance, awards outstanding | 0 |
Awarded | 7,200 |
Released | 0 |
Canceled or expired | 0 |
Ending balance, awards outstanding | 7,200 |
Service-based awards | |
Restricted Stock Activity, Number of Awards [Roll Forward] | |
Beginning balance, awards outstanding | 0 |
Awarded | 4,650 |
Released | (400) |
Canceled or expired | 0 |
Ending balance, awards outstanding | 4,250 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Sep. 28, 2019 | Jun. 29, 2019 | Sep. 29, 2018 | Jun. 30, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | |
Earnings Per Share Computation | ||||||
Net income attributable to Cavco common stockholders | $ 20,885 | $ 21,282 | $ 15,576 | $ 19,691 | $ 42,167 | $ 35,267 |
Weighted average shares outstanding: | ||||||
Basic (in shares) | 9,119,835 | 9,079,679 | 9,111,260 | 9,064,007 | ||
Common stock equivalents - treasury stock method (in shares) | 146,250 | 224,509 | 130,574 | 223,723 | ||
Diluted (in shares) | 9,266,085 | 9,304,188 | 9,241,834 | 9,287,730 | ||
Net income per share attributable to Cavco common stockholders: | ||||||
Basic (usd per share) | $ 2.29 | $ 1.72 | $ 4.63 | $ 3.89 | ||
Diluted (usd per share) | $ 2.25 | $ 1.67 | $ 4.56 | $ 3.80 | ||
Stock Options | ||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||
Anti-dilutive stock equivalents excluded from computation | 22,536 | 3,751 | 42,401 | 6,682 | ||
Restricted share awards | ||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||
Anti-dilutive stock equivalents excluded from computation | 11,450 |
Fair Value Measurements (Book V
Fair Value Measurements (Book Value and Estimated Fair Value) (Details) - USD ($) $ in Thousands | Sep. 28, 2019 | Mar. 30, 2019 | |
Book Value | |||
Financial Instruments | |||
Non-marketable equity investments | [1] | $ 20,926 | $ 20,276 |
Consumer loans receivable | [2] | 88,952 | 86,785 |
Interest rate lock commitment derivatives | [3] | 8 | 11 |
Forward loan sale commitment derivatives | [3] | 25 | (59) |
Commercial loans receivable | [4] | 46,259 | 43,006 |
Securitized financings and other | [5] | 16,234 | 34,140 |
Book Value | Available-for-sale debt securities | |||
Financial Instruments | |||
Investments | [6] | 12,181 | 13,408 |
Book Value | Marketable equity securities | |||
Financial Instruments | |||
Investments | [6] | 12,649 | 11,073 |
Estimated fair value | |||
Financial Instruments | |||
Non-marketable equity investments | [1] | 20,926 | 20,276 |
Consumer loans receivable | [2] | 104,294 | 101,001 |
Interest rate lock commitment derivatives | [3] | 8 | 11 |
Forward loan sale commitment derivatives | [3] | 25 | (59) |
Commercial loans receivable | [4] | 46,801 | 43,582 |
Securitized financings and other | [5] | 19,755 | 38,101 |
Estimated fair value | Available-for-sale debt securities | |||
Financial Instruments | |||
Investments | [6] | 12,181 | 13,408 |
Estimated fair value | Marketable equity securities | |||
Financial Instruments | |||
Investments | [6] | $ 12,649 | $ 11,073 |
[1] | The fair value approximates book value based on the non-marketable nature of the investments. | ||
[2] | Includes consumer loans receivable held for investment, held for sale and construction advances. The fair value of the loans held for investment is based on the discounted value of the remaining principal and interest cash flows. The fair value of the loans held for sale is estimated based on recent GSE mortgage-backed bond prices. The fair value of the construction advances approximates book value and the sales price of these loans. | ||
[3] | The fair values are based on changes in GSE mortgage-backed bond prices and, additionally for IRLCs, pull through rates. | ||
[4] | The fair value is estimated using market interest rates of comparable loans. | ||
[5] | The fair value is estimated using recent public transactions of similar asset-backed securities. | ||
[6] | For Level 1 classified securities, the fair value is based on quoted market prices. The fair value of Level 2 securities is based on other inputs, as further described below. |
Fair Value Measurements (Assets
Fair Value Measurements (Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Thousands | Sep. 28, 2019 | Mar. 30, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Mortgage servicing rights | $ 1,278 | $ 1,372 | |
Recurring | U.S. Treasury and Government Agencies | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Investments | [1] | 300 | 297 |
Recurring | Residential mortgage-backed securities | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Investments | [1] | 6,142 | 6,509 |
Recurring | Securities issued by states and political subdivisions | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Investments | [1] | 3,842 | 4,983 |
Recurring | Corporate debt securities | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Investments | [1] | 1,897 | 1,619 |
Recurring | Marketable equity securities | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Investments | [2] | 12,649 | 11,073 |
Recurring | Interest rate lock commitment derivatives | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Derivatives (asset) | [3] | 8 | 11 |
Recurring | Forward loan sale commitment derivatives | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Derivatives (asset) | [3] | 25 | |
Derivatives (liability) | [3] | (59) | |
Recurring | Mortgage servicing rights | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Mortgage servicing rights | [4] | 1,278 | 1,372 |
Level 1 | Recurring | U.S. Treasury and Government Agencies | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Investments | [1] | 0 | 0 |
Level 1 | Recurring | Residential mortgage-backed securities | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Investments | [1] | 0 | 0 |
Level 1 | Recurring | Securities issued by states and political subdivisions | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Investments | [1] | 0 | 0 |
Level 1 | Recurring | Corporate debt securities | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Investments | [1] | 0 | 0 |
Level 1 | Recurring | Marketable equity securities | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Investments | [2] | 12,649 | 11,073 |
Level 1 | Recurring | Interest rate lock commitment derivatives | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Derivatives (asset) | [3] | 0 | 0 |
Level 1 | Recurring | Forward loan sale commitment derivatives | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Derivatives (asset) | [3] | 0 | |
Derivatives (liability) | [3] | 0 | |
Level 1 | Recurring | Mortgage servicing rights | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Mortgage servicing rights | [4] | 0 | 0 |
Level 2 | Recurring | U.S. Treasury and Government Agencies | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Investments | [1] | 300 | 297 |
Level 2 | Recurring | Residential mortgage-backed securities | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Investments | [1] | 6,142 | 6,509 |
Level 2 | Recurring | Securities issued by states and political subdivisions | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Investments | [1] | 3,842 | 4,983 |
Level 2 | Recurring | Corporate debt securities | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Investments | [1] | 1,897 | 1,619 |
Level 2 | Recurring | Marketable equity securities | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Investments | [2] | 0 | 0 |
Level 2 | Recurring | Interest rate lock commitment derivatives | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Derivatives (asset) | [3] | 0 | 0 |
Level 2 | Recurring | Forward loan sale commitment derivatives | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Derivatives (asset) | [3] | 0 | |
Derivatives (liability) | [3] | 0 | |
Level 2 | Recurring | Mortgage servicing rights | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Mortgage servicing rights | [4] | 0 | 0 |
Level 3 | Recurring | U.S. Treasury and Government Agencies | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Investments | [1] | 0 | 0 |
Level 3 | Recurring | Residential mortgage-backed securities | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Investments | [1] | 0 | 0 |
Level 3 | Recurring | Securities issued by states and political subdivisions | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Investments | [1] | 0 | 0 |
Level 3 | Recurring | Corporate debt securities | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Investments | [1] | 0 | 0 |
Level 3 | Recurring | Marketable equity securities | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Investments | [2] | 0 | 0 |
Level 3 | Recurring | Interest rate lock commitment derivatives | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Derivatives (asset) | [3] | 8 | 11 |
Level 3 | Recurring | Forward loan sale commitment derivatives | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Derivatives (asset) | [3] | 25 | |
Derivatives (liability) | [3] | (59) | |
Level 3 | Recurring | Mortgage servicing rights | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Mortgage servicing rights | [4] | $ 1,278 | $ 1,372 |
[1] | Unrealized gains or losses on investments are recorded in Accumulated other comprehensive income (loss) at each measurement date | ||
[2] | Unrealized gains or losses on investments are recorded in earnings at each measurement date. | ||
[3] | Gains or losses on derivatives are recognized in current period earnings through Cost of sales. | ||
[4] | Changes in the fair value of mortgage servicing rights are recognized in the current period earnings through Net revenue. |
Fair Value Measurements (Asse_2
Fair Value Measurements (Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis (Details) - USD ($) $ in Thousands | Sep. 28, 2019 | Mar. 30, 2019 |
Summary of Assets and Liabilities Measured at Fair Value for Disclosure | ||
Non-marketable equity investments | $ 20,926 | $ 20,276 |
Non Recurring | ||
Summary of Assets and Liabilities Measured at Fair Value for Disclosure | ||
Loans held for investment | 72,546 | 76,319 |
Loans held for sale | 17,487 | 11,799 |
Construction Loan | 14,261 | 12,883 |
Commercial loans receivable | 46,801 | 43,582 |
Securitized financings and other | (19,755) | (38,101) |
Non-marketable equity investments | 20,926 | 20,276 |
Level 1 | Non Recurring | ||
Summary of Assets and Liabilities Measured at Fair Value for Disclosure | ||
Loans held for investment | 0 | 0 |
Loans held for sale | 0 | 0 |
Construction Loan | 0 | 0 |
Commercial loans receivable | 0 | 0 |
Securitized financings and other | 0 | 0 |
Non-marketable equity investments | 0 | 0 |
Level 2 | Non Recurring | ||
Summary of Assets and Liabilities Measured at Fair Value for Disclosure | ||
Loans held for investment | 0 | 0 |
Loans held for sale | 0 | 0 |
Construction Loan | 0 | 0 |
Commercial loans receivable | 0 | 0 |
Securitized financings and other | (19,755) | (38,101) |
Non-marketable equity investments | 0 | 0 |
Level 3 | Non Recurring | ||
Summary of Assets and Liabilities Measured at Fair Value for Disclosure | ||
Loans held for investment | 72,546 | 76,319 |
Loans held for sale | 17,487 | 11,799 |
Construction Loan | 14,261 | 12,883 |
Commercial loans receivable | 46,801 | 43,582 |
Securitized financings and other | 0 | 0 |
Non-marketable equity investments | $ 20,926 | $ 20,276 |
Fair Value Measurements (Assump
Fair Value Measurements (Assumptions for Mortgage Servicing Rights) (Details) $ in Thousands | Sep. 28, 2019USD ($)Loans | Mar. 30, 2019USD ($)Loans |
Fair Value Disclosures [Abstract] | ||
Number of loans serviced with MSRs | Loans | 4,596 | 4,557 |
Weighted average servicing fee | 0.3112% | 0.3159% |
Capitalized servicing multiple | 72.30% | 77.97% |
Capitalized servicing rate | 0.225% | 0.2463% |
Serviced portfolio with MSRs | $ 567,886 | $ 556,934 |
Mortgage servicing rights | $ 1,278 | $ 1,372 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) | 6 Months Ended |
Sep. 28, 2019USD ($) | |
Fair Value Measurements (Textual) [Abstract] | |
Fair Value, Assets, Level 1, Level 2, or Level 3 Transfers, Amount | $ 0 |
Impairment charges on assets held for sale or held and used | $ 0 |
Typical period a loan is held for sale | 45 days |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | Mar. 30, 2019 | |
Related Party Transactions [Abstract] | |||||
Net Revenue | $ 10.4 | $ 9.5 | $ 23.8 | $ 21.2 | |
Financing receivable, net | $ 8.1 | $ 8.1 | $ 6.2 |
Acquisition of Destiny Homes (D
Acquisition of Destiny Homes (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Sep. 28, 2019 | Aug. 02, 2019 | ||
Business Combinations [Abstract] | |||
Consideration transferred | $ 16,500 | ||
Accounts receivable | $ 908 | ||
Inventories | 5,508 | ||
Property, plant and equipment, net | 5,244 | ||
Other current assets | 3,290 | ||
Intangible assets | [1] | 5,940 | |
Total identifiable assets acquired | 20,890 | ||
Accounts payable and accrued liabilities | (6,527) | ||
Net identifiable assets acquired | 14,363 | ||
Goodwill | 2,104 | ||
Net assets acquired | 16,467 | ||
Destiny Homes net revenue | 6,400 | ||
Destiny Homes net income | $ 136 | ||
Trademarks and trade names | 1,700 | ||
Customer-related intangible | $ 4,200 | ||
Customer-related intangible useful life | 10 years | ||
[1] | (1) Includes $1.7 million assigned to trademarks and trade names, which are considered indefinite lived intangible assets and are not subject to amortization and $4.2 million assigned to customer-related intangible subject to a useful life of 10 years amortized on a straight-line basis. |
Acquisition of Destiny Homes Pr
Acquisition of Destiny Homes Pro-forma (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | |
Business Combinations [Abstract] | ||||
Net revenue | $ 270,239 | $ 252,925 | $ 543,951 | $ 511,369 |
Net income | $ 21,165 | $ 16,250 | $ 43,807 | $ 37,464 |
Diluted net income per share | $ 2.28 | $ 1.75 | $ 4.74 | $ 4.03 |
Business Segment Information (D
Business Segment Information (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 28, 2019USD ($) | Sep. 29, 2018USD ($) | Sep. 28, 2019USD ($)Segment | Sep. 29, 2018USD ($) | |
Business Segment Information | ||||
Number of operating segments | Segment | 2 | |||
Net revenue | $ 268,675 | $ 241,530 | $ 532,717 | $ 487,933 |
Income before income taxes | 27,255 | 19,517 | 54,617 | 43,653 |
Factory-built housing | ||||
Business Segment Information | ||||
Net revenue | 252,690 | 227,094 | 501,458 | 459,856 |
Income before income taxes | 22,463 | 16,880 | 46,776 | 38,488 |
Financial services | ||||
Business Segment Information | ||||
Net revenue | 15,985 | 14,436 | 31,259 | 28,077 |
Income before income taxes | $ 4,792 | $ 2,637 | $ 7,841 | $ 5,165 |