Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Apr. 02, 2022 | May 20, 2022 | Oct. 02, 2021 | |
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Annual Report | true | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --04-02 | ||
Document Period End Date | Apr. 2, 2022 | ||
Document Transition Report | false | ||
Entity File Number | 000-08822 | ||
Entity Central Index Key | 0000278166 | ||
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 Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 1,182,534,831 | ||
Entity Common Stock, Shares Outstanding | 8,887,465 | ||
Documents Incorporated by Reference | Portions of Cavco Industries, Inc.'s Definitive Proxy Statement relating to its 2022 Annual Meeting of Stockholders, which is expected to be filed within 120 days following the end of the registrant's fiscal year ended April 2, 2022, are incorporated by reference into Part III hereof. | ||
Auditor Name | RSM US LLP | ||
Auditor Location | Phoenix, Arizona | ||
Auditor Firm ID | 49 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Apr. 02, 2022 | Apr. 03, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 244,150 | $ 322,279 |
Restricted cash, current | 14,849 | 16,693 |
Accounts receivable, net | 96,052 | 47,396 |
Short-term investments | 20,086 | 19,496 |
Current portion of consumer loans receivable, net | 20,639 | 37,690 |
Current portion of commercial loans receivable, net | 32,272 | 14,568 |
Current portion of commercial loans receivable from affiliates, net | 372 | 4,664 |
Inventories | 243,971 | 131,234 |
Prepaid expenses and other current assets | 71,726 | 57,779 |
Total current assets | 744,117 | 651,799 |
Restricted cash | 335 | 335 |
Investments | 34,933 | 35,010 |
Consumer loans receivable, net | 29,245 | 37,108 |
Commercial loans receivable, net | 33,708 | 20,281 |
Commercial loans receivable from affiliate, net | 2,214 | 4,801 |
Property, plant and equipment, net | 164,016 | 96,794 |
Goodwill | 100,993 | 75,090 |
Other intangibles, net | 28,459 | 14,363 |
Operating lease right-of-use assets | 16,952 | 16,252 |
Total assets | 1,154,972 | 951,833 |
Current liabilities: | ||
Accounts payable | 43,082 | 32,120 |
Accrued expenses and other current liabilities | 250,304 | 203,133 |
Current portion of secured financings and other | 784 | 1,851 |
Total current liabilities | 294,170 | 237,104 |
Operating lease liabilities | 13,158 | 13,361 |
Secured financings and other | 10,836 | 10,335 |
Deferred income taxes | 5,528 | 7,393 |
Redeemable noncontrolling interest | 825 | 0 |
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; Issued 9,292,278 and 9,241,256 shares, respectively | 93 | 92 |
Treasury stock, at cost; 241,773 and 6,600 shares, respectively | (61,040) | (1,441) |
Additional paid-in capital | 263,049 | 253,835 |
Retained earnings | 628,756 | 431,057 |
Accumulated other comprehensive (loss) income | (403) | 97 |
Total stockholders' equity | 830,455 | 683,640 |
Total liabilities, redeemable noncontrolling interest and stockholders' equity | $ 1,154,972 | $ 951,833 |
Number of shares and par value | ||
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, Issued | 9,292,278 | 9,241,256 |
Treasury stock, shares | 241,773 | 6,600 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 02, 2022 | Apr. 03, 2021 | Mar. 28, 2020 | |
Income Statement [Abstract] | |||
Net revenue | $ 1,627,158 | $ 1,108,051 | $ 1,061,774 |
Cost of sales | 1,218,409 | 869,074 | 831,256 |
Gross profit | 408,749 | 238,977 | 230,518 |
Selling, general and administrative expenses | 206,253 | 150,152 | 145,611 |
Income from operations | 202,496 | 88,825 | 84,907 |
Interest expense | (702) | (738) | (1,495) |
Other income, net | 10,195 | 8,825 | 9,567 |
Income before income taxes | 211,989 | 96,912 | 92,979 |
Income tax expense | (14,247) | (20,266) | (17,913) |
Net income | 197,742 | 76,646 | 75,066 |
Less: net income attributable to redeemable noncontrolling interest | 43 | 0 | 0 |
Net income attributable to Cavco common stockholders | 197,699 | 76,646 | 75,066 |
Comprehensive income: | |||
Net income | 197,742 | 76,646 | 75,066 |
Reclassification adjustment for securities sold | (17) | 19 | 18 |
Applicable income taxes | 4 | (4) | (4) |
Net change in unrealized position of investments held | (616) | (10) | 132 |
Applicable income taxes | 129 | 2 | (28) |
Comprehensive income | 197,242 | 76,653 | 75,184 |
Less: comprehensive income attributable to redeemable noncontrolling interest | 43 | 0 | 0 |
Comprehensive income attributable to Cavco common stockholders | $ 197,199 | $ 76,653 | $ 75,184 |
Net income per share attributable to Cavco common stockholders: | |||
Basic (usd per share) | $ 21.54 | $ 8.34 | $ 8.22 |
Diluted (usd per share) | $ 21.34 | $ 8.25 | $ 8.10 |
Weighted average shares outstanding: | |||
Basic (in shares) | 9,178,593 | 9,189,052 | 9,129,639 |
Diluted (in shares) | 9,264,153 | 9,293,134 | 9,268,784 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity and Redeemable Noncontrolling Interest Statement - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Stock | Common StockCumulative Effect, Period of Adoption, Adjustment | Treasury Stock | Treasury StockCumulative Effect, Period of Adoption, Adjustment | Additional paid-in capital | Additional paid-in capitalCumulative Effect, Period of Adoption, Adjustment | Retained earnings | Retained earningsCumulative Effect, Period of Adoption, Adjustment | Accumulated other comprehensive (loss) income | Accumulated other comprehensive (loss) incomeCumulative Effect, Period of Adoption, Adjustment |
Beginning balance, common stock, shares at Mar. 30, 2019 | 9,098,320 | |||||||||||
Beginning balance at Mar. 30, 2019 | $ 529,588 | $ 91 | $ 0 | $ 249,447 | $ 280,078 | $ (28) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net income attributable to Cavco common stockholders | 75,066 | 0 | 0 | 0 | 75,066 | 0 | ||||||
Other comprehensive loss, net | 118 | $ 0 | 0 | 0 | 0 | 118 | ||||||
Issuance of common stock under stock incentive plans, shares | 74,922 | |||||||||||
Issuance of common stock under stock incentive plans, value | (1,067) | $ 1 | 0 | (1,068) | 0 | 0 | ||||||
Stock-based compensation | 3,881 | $ 0 | 0 | 3,881 | 0 | 0 | ||||||
Ending balance, common stock, shares at Mar. 28, 2020 | 9,173,242 | |||||||||||
Ending balance at Mar. 28, 2020 | 607,586 | $ 92 | 0 | 252,260 | 355,144 | 90 | ||||||
Ending balance (Accounting Standards Update 2016-13) at Mar. 28, 2020 | $ (733) | $ 0 | $ 0 | $ 0 | $ (733) | $ 0 | ||||||
Beginning balance at Mar. 30, 2019 | 0 | |||||||||||
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | ||||||||||||
Net income | 0 | |||||||||||
Ending balance at Mar. 28, 2020 | 0 | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net income attributable to Cavco common stockholders | 76,646 | 0 | 0 | 0 | 76,646 | 0 | ||||||
Other comprehensive loss, net | 7 | $ 0 | 0 | 0 | 0 | 7 | ||||||
Issuance of common stock under stock incentive plans, shares | 68,014 | |||||||||||
Issuance of common stock under stock incentive plans, value | (2,817) | $ 0 | 0 | (2,817) | 0 | 0 | ||||||
Stock-based compensation | 4,392 | 0 | 0 | 4,392 | 0 | 0 | ||||||
Common stock repurchases | (1,441) | $ 0 | 1,441 | 0 | 0 | 0 | ||||||
Ending balance, common stock, shares at Apr. 03, 2021 | 9,241,256 | |||||||||||
Ending balance at Apr. 03, 2021 | 683,640 | $ 92 | (1,441) | 253,835 | 431,057 | 97 | ||||||
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | ||||||||||||
Net income | 0 | |||||||||||
Ending balance at Apr. 03, 2021 | 0 | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net income attributable to Cavco common stockholders | 197,699 | 0 | 0 | 0 | 197,699 | 0 | ||||||
Other comprehensive loss, net | (500) | $ 0 | 0 | 0 | 0 | (500) | ||||||
Issuance of common stock under stock incentive plans, shares | 51,022 | |||||||||||
Issuance of common stock under stock incentive plans, value | 4,156 | $ 1 | 0 | 4,155 | 0 | 0 | ||||||
Stock-based compensation | 5,059 | 0 | 0 | 5,059 | 0 | 0 | ||||||
Common stock repurchases | (59,599) | $ 0 | 59,599 | 0 | 0 | 0 | ||||||
Ending balance, common stock, shares at Apr. 02, 2022 | 9,292,278 | |||||||||||
Ending balance at Apr. 02, 2022 | 830,455 | $ 93 | $ (61,040) | $ 263,049 | $ 628,756 | $ (403) | ||||||
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | ||||||||||||
Initial value of noncontrolling interest upon transaction | 1,235 | |||||||||||
Net income | 43 | |||||||||||
Distributions | (375) | |||||||||||
Subsequent change in redemption value | (78) | |||||||||||
Ending balance at Apr. 02, 2022 | $ 825 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 02, 2022 | Apr. 03, 2021 | Mar. 28, 2020 | |
OPERATING ACTIVITIES | |||
Net income | $ 197,742 | $ 76,646 | $ 75,066 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 11,017 | 6,324 | 5,783 |
Provision for credit losses | (325) | (1,193) | 1,348 |
Deferred income taxes | (1,732) | 326 | 261 |
Stock-based compensation expense | 5,059 | 4,392 | 3,881 |
Non-cash interest income, net | (1,629) | (3,312) | (1,411) |
(Gain) loss on sale or retirement of property, plant and equipment, net | (220) | 116 | (3,409) |
Gain on investments and sale of loans, net | (18,364) | (22,037) | (10,977) |
Changes in operating assets and liabilities: | |||
Accounts receivable | (27,268) | (4,597) | (1,442) |
Consumer loans receivable originated | (158,988) | (161,562) | (157,090) |
Proceeds from sales of consumer loans | 184,849 | 167,067 | 159,632 |
Principal payments received on consumer loans receivable | 11,553 | 14,126 | 10,632 |
Inventories | (73,804) | (17,699) | 8,250 |
Prepaid expenses and other current assets | (28,309) | 6,380 | 6,683 |
Commercial loans receivable | 6,415 | 1,825 | (1,914) |
Accounts payable and accrued expenses and other current liabilities | 38,228 | 47,229 | 6,444 |
Net cash provided by operating activities | 144,224 | 114,031 | 101,737 |
INVESTING ACTIVITIES | |||
Purchases of property, plant and equipment | (18,653) | (25,537) | (14,340) |
Payments for acquisitions, net | (141,429) | 0 | (15,937) |
Proceeds from sale of property, plant and equipment and assets held for sale | 1,329 | 240 | 6,541 |
Purchases of investments | 12,799 | 17,518 | 11,699 |
Proceeds from sale of investments | 12,450 | 19,466 | 10,192 |
Net cash used in investing activities | (159,102) | (23,349) | (25,243) |
FINANCING ACTIVITIES | |||
Proceeds from (payments for) exercise of stock options | 4,156 | (2,817) | (1,067) |
Proceeds from secured financings and other | 106 | 64 | 227 |
Payments on secured financings and other | (9,383) | (2,788) | (19,916) |
Payments for common stock repurchases | (59,599) | (1,441) | 0 |
Payments to Noncontrolling Interests | (375) | 0 | 0 |
Net cash used in financing activities | (65,095) | (6,982) | (20,756) |
Net (decrease) increase in cash, cash equivalents and restricted cash | (79,973) | 83,700 | 55,738 |
Cash, cash equivalents and restricted cash at beginning of the fiscal year | 339,307 | 255,607 | 199,869 |
Cash, cash equivalents and restricted cash at end of the fiscal year | 259,334 | 339,307 | 255,607 |
Supplemental disclosures of cash flow information: | |||
Cash paid during the year for income taxes | 31,415 | 19,469 | 18,839 |
Cash paid during the year for interest | 451 | 468 | 736 |
Supplemental disclosure of noncash financing activity: | |||
Change in GNMA loans eligible for repurchase | (16,238) | 18,339 | 3,634 |
Right-of-use assets recognized | 4,414 | 5,985 | 18,498 |
Operating lease obligations incurred | 4,414 | 5,985 | 18,523 |
Fair value of assets acquired under finance lease | 7,158 | 0 | 0 |
Finance lease obligations incurred | $ 6,351 | $ 0 | $ 0 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Apr. 02, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Principles of Consolidation. These Consolidated Financial Statements include the accounts of Cavco Industries, Inc. and its consolidated subsidiaries (collectively, "we," "us," "our," the "Company" or "Cavco"). All significant intercompany transactions and balances have been eliminated in consolidation. We have evaluated subsequent events after the balance sheet date of April 2, 2022, through the date of the filing of this report with the Securities and Exchange Commission (the "SEC") and there were no disclosable subsequent events . In addition, references throughout to numbered "Notes" refer to these Notes to Consolidated Financial Statements, unless otherwise stated. Nature of Operations. Headquartered in Phoenix, Arizona, we design and produce factory-built housing products primarily distributed through a network of independent distributors located throughout the continental United States, as well as through Company-owned retail stores which offer our homes to retail customers. Our financial services segment is comprised of: a mortgage subsidiary, CountryPlace Acceptance Corp. ("CountryPlace"), which is an approved Federal National Mortgage Association ("Fannie Mae") and Federal Home Loan Mortgage Corporation ("Freddie Mac") seller/servicer and a Government National Mortgage Association ("Ginnie Mae" or "GNMA") mortgage-backed securities issuer that offers conforming mortgages, non-conforming mortgages and home-only loans to purchasers of factory-built homes; and an insurance subsidiary, Standard Casualty Co. ("Standard Casualty"), which provides property and casualty insurance primarily to owners of manufactured homes. Fiscal 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 . Th e current fiscal year ended on April 2, 2022 and includes 52 weeks, whereas fiscal year 2021 consisted of 53 weeks and fiscal year 2020 consisted of 52 weeks. Accounting Estimates. Preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Due to uncertainties, a ctual results could differ from the estimates and assumptions used in preparation of the consolidated financial statements. Factory-Built Housing Revenue Recognition - Wholesale . Revenue from homes sold to independent distributors, builders, communities and developers is generally recognized when the home is shipped, at which time title passes and it is probable that substantially all of the consideration will be received. Homes sold to independent distributors are generally either paid upon shipment or floor plan financed by the independent distributor through standard industry financing arrangements, which can include repurchase agreements. Manufacturing sales financed under floor plan arrangements that include repurchase agreements are reduced by a provision for estimated repurchase obligations (see Note 16). Some of our independent distributors operate multiple sales outlets. No independent distributor accounted for 10% or more of factory-built housing revenue during any fiscal year within the three-year period ended April 2, 2022. Factory-Built Housing Revenue Recognition - Retail . Sales by Company-owned retail stores are generally recognized when the customer has entered into a legally binding sales contract, the home is delivered and permanently located at the customer's site, the home is accepted by the customer, title has transferred and funding is probable. Financial Services Revenue Recognition. Premium amounts collected on policies issued and assumed by Standard Casualty are amortized on a straight-line basis into Net revenue over the life of the policy. Premiums earned are net of reinsurance ceded. Policy acquisition costs are also amortized in Cost of sales over the life of the policy. Insurance agency commissions received from third-party insurance companies are recognized as revenue upon execution of the insurance policy as we have no future or ongoing obligation with respect to such policies. Interest income on consumer loans receivables is recognized in Net revenue. Upon acquisition of the previously securitized loan portfolios (the "Acquisition Date"), we evaluated the existing consumer loans receivable held for investment to determine whether there was evidence of deterioration of credit quality and the probability that we would be able to collect all amounts due according to the loans' contractual terms. We also considered expected prepayments and estimated the amount and timing of undiscounted principal, interest and other cash flows. We determined the excess of the loan pool's scheduled contractual principal and interest payments over the undiscounted expected cash flows as of the Acquisition Date as an amount that is not 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 was accreted into interest income over the remaining life of the loans (referred to as accretable yield). We adopted Financial Accounting Standards Board ("FASB") Accounting Standards Update ("ASU") 2016-13, Financial Instruments - Credit Losses (Topic 326) : Measurement of Credit Losses on Financial Instruments ("ASU 2016-13") on March 29, 2020. Upon adoption, we determined that $1.7 million of the existing purchase discount for such consumer loans was related to credit factors and was reclassified to the allowance for loan losses upon adoption. The remaining discount on the acquired consumer loans was determined to be related to non-credit factors and will continue to be accreted into interest income over the life of the loans (see Note 6). For loans originated and held for sale, loan origination fees and gains or losses on sales are recognized in Net revenue upon title transfer of the loans. We provide third-party servicing of mortgages and earn s ervicing fees each month based on the aggregate outstanding balances. Servicing fees are recognized in Net revenue when earned. Cash and Cash Equivalents . Highly liquid investments with insignificant interest rate risk and original maturities of three months or less, when purchased, are classified as cash equivalents. Our cash equivalents are primarily comprised of U.S. Treasury and other money market funds and other depository accounts, some of which are in excess of Federal Deposit Insurance Corporation insured limits. Restricted Cash . Restricted cash primarily represents cash related to CountryPlace customer payments to be remitted to third parties and deposits received from retail customers required to be held in trust accounts. These funds cannot be accessed for general operating purposes (see Note 3). Accounts Receivable. We extend competitive credit terms on a customer-by-customer basis in the normal course of business, subject to normal industry risk, with many requiring a cash deposit with a sales order or payment upon delivery of a home. We review accounts receivable for estimated losses that may result from customers' inability to pay. As of April 2, 2022 and April 3, 2021, there were no allowances for doubtful accounts. Investments. Management determines the appropriate classification of its investment securities at the time of purchase. Our investments include marketable debt and equity securities and non-marketable equity investments. Changes in unrealized net holding gains and losses on equity securities are reported in earnings. Unrealized net holding gains and losses on available-for-sale debt securities are recorded in Accumulated other comprehensive income (loss) ("AOCI") in the Consolidated Balance Sheets. Realized gains and losses from the sale of securities are determined using the specific identification method (see Note 4). As discussed above, we adopted ASU 2016-13 on March 29, 2020. Under this standard, declines in the fair value of individual available-for-sale debt securities that are related to credit losses are recorded as a valuation allowance against the investment balance, with the loss recorded in earnings. As of April 2, 2022, we have determined that all losses on available-for-sale debt securities were from market factors, and therefore we had no valuation allowance. Consumer Loans Receivable. Consumer loans receivable consist primarily of manufactured housing loans originated by CountryPlace (held for investment or held for sale) and construction advances on mortgages. Loans held for investment consist of loan contracts collateralized by the borrowers' homes and, in some instances, related land. Construction loans in progress are stated at the aggregate amount of cumulative funded advances. Loans held for sale are loans that, at the time of origination, are originated with the intent to resell to investors with which the Company has pre-existing purchase agreements, such as Fannie Mae and Freddie Mac, or to sell as part of a Ginnie Mae insured pool of loans and consist of loan contracts collateralized by single-family residential mortgages. Loans held for sale are stated at the lower of cost or market on an aggregate basis. Combined land and home mortgages are further disaggregated by the type of loan documentation: those conforming to the requirements of Government-Sponsored Enterprises ("GSEs") and those that are non-conforming. In most instances, our mortgages are secured by a first-lien position and are provided for the consumer purchase of a home. Consumer loans held for investment include home-only personal property loans originated under our home-only lending programs. Accordingly, we classify our loans receivable as follows: conforming mortgages, non-conforming mortgages and home-only loans. In measuring credit quality within each segment and class, we use commercially available credit scores (such as FICO®). At the time of each loan's origination, we obtain credit scores from each of the three primary credit bureaus, if available. To evaluate credit quality of individual loans, we use the mid-point of the available credit scores or, if only two scores are available, we use the lower of the two. We do not update credit bureau scores after the time of origination. Commercial Loans Receivable. Our commercial loans receivable balance consists of amounts loaned under commercial loan programs for the benefit of our independent distributors and community operators' home purchasing needs. Under the terms of certain programs, we have entered into direct commercial loan arrangements with independent distributors and community operators wherein we provide funds to purchase home inventory or homes for placement in communities. Interest income on commercial loans receivable is recognized in Other income, net in the Consolidated Statements of Comprehensive Income on an accrual basis. Allowance for Loan Losses. ASU 2016-13 requires a forward-looking impairment model based on expected losses rather than incurred losses. The primary portion of the allowance for loan losses reflects our judgment of the incurred loss exposure on our consumer loans receivable. As of April 2, 2022, we had an allowance for loan losses of $2.1 million . Our allowance for loan losses as of April 3, 2021 was $3.2 million (see Note 6). Another portion of the allowance for loan losses relates to our commercial loans receivables as of the end of the reporting period. We have historically been able to resell repossessed homes, thereby mitigating loss exposure. If a default occurs and collateral is lost, we are exposed to loss of the full value of the home loan. To determine the appropriate level of the allowance for loan loss, we collectively evaluate loans based on their terms and duration. In addition to the allowance calculated under ASU 2016-13, if we determine that it is probable that a borrower will default, a specific reserve is determined and recorded within the estimated allowance for loan losses. We recorded allowance for loan losses of $1.0 million and $816,000 at April 2, 2022 and April 3, 2021, respectively, related to commercial loans receivable (see Note 7). Inventories. Raw material inventories are valued at the lower of cost or market, using the first in, first out method. Finished goods and work-in-process inventories are valued at the lower of cost or market, using the specific identification method. Property, Plant and Equipment. Property, plant and equipment are carried at cost. Depreciation is calculated using the straight-line method over the estimated useful life of each asset. Estimated useful lives for significant classes of assets are as follows: buildings and improvements, 10 to 39 years; and machinery and equipment, 3 to 25 years. Repairs and maintenance charges are expensed as incurred. We sell miscellaneous property, plant and equipment in the normal course of business. Asset Impairment . We periodically evaluate the carrying value of long-lived assets to be held and used and held for sale for impairment when events and circumstances warrant such a review. The carrying value of a long-lived asset is considered impaired when the anticipated undiscounted cash flow from such asset is less than its carrying value. In that event, a loss is recognized based on the amount by which the carrying value exceeds the fair value of the long-lived asset group. Fair value is determined primarily using the anticipated cash flows discounted at a rate commensurate with the risk involved. Losses on long-lived assets to be disposed of are primarily determined based on independent appraisals and preliminary or definitive contractual arrangements less costs to dispose. There were no impairment losses recognized in fiscal years 2022, 2021 or 2020 . Goodwill and Other Intangibles. We account for business combinations using the acquisition method of accounting, which allocates the fair value of the purchase consideration to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values. In the fair value evaluation of intangible assets acquired, there are significant estimates and assumptions, including forecasts of future cash flows, pre-tax income and revenue growth rates, as well as the selection of the royalty rates and discount rates. The excess of the purchase consideration over the fair values of these identifiable assets and liabilities is recorded as goodwill. We account for goodwill and other intangible assets in accordance with the provisions of FASB Accounting Standards Codification ("ASC") 350, Intangibles—Goodwill and Other . As such, we test goodwill annually for impairment. The Company has two reporting segments: factory-built housing and financial services. As of April 2, 2022, all of our goodwill is attributable to the factory-built housing reporting segment. Certain intangibles are considered indefinite-lived and others are finite-lived and are amortized over their useful lives. Finite-lived intangibles are amortized over 3 to 15 years on a straight-line basis and are reviewed for possible impairment whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable. Indefinite-lived intangible assets are assessed annually for impairment first by making a qualitative assessment, and if necessary, performing a quantitative assessment and recording an impairment charge if the fair value of the asset is less than its carrying amount. We performed our annual goodwill impairment analysis as of April 2, 2022, and the analysis determined that the fair value of the reporting unit was greater than the carrying value. There was no impairment recognized during fiscal years 2022, 2021 or 2020. Warranties. We provide retail home buyers, builders or developers with a one year warranty for manufacturing defects from the date of sale to the retail customer. Nonstructural components of a cosmetic nature are warranted for 120 days, except in specific cases where state laws require longer warranty terms. Estimated warranty costs are accrued in Cost of sales at the time of sale. The warranty provision and reserves are based on estimates of the amounts necessary to settle existing and future claims on homes sold as of the balance sheet date. Factors used to calculate the warranty obligation are the estimated amount of homes still under warranty including homes in distributor inventories, homes purchased by consumers still within the one year warranty period, the timing in which work orders are completed and the historical average costs incurred to service a home. Volume Rebates . Certain distributors, builders and developers can qualify for cash rebates generally based on the level of sales attained during a twelve-month period on specified products. Volume rebates are accrued at the time of sale and are recorded as a reduction of Net revenue. Freight. Substantially all freight costs are recovered from our distributors and are included in Net revenue. Freight charges of $41.5 million, $29.3 million and $30.9 million were recognized in fiscal years 2022, 2021 and 2020, respectively. Reserve for Repurchase Commitment. We are contingently liable under terms of repurchase agreements with the financial institutions that provide inventory financing to certain distributors of our products. These arrangements, which are customary in the industry, provide the lender a guarantee that we will repurchase our products in the event of default by the distributor. Our obligation under these repurchase agreements ceases upon the purchase of the home by the retail customer. The risk of loss under these agreements is spread over numerous distributors and the repurchase price generally declines over the period of the agreement (generally 18 to 24 months), further reduced by the resale value of repurchased homes. We apply FASB ASC 460, Guarantees ("ASC 460") to account for our liability for repurchase commitments. Following the inception of the commitment, the recorded reserve is reduced over the repurchase period in conjunction with applicable curtailment arrangements and is eliminated once the distributor sells the home. Changes in the reserve are recorded as an adjustment to Net revenue. See Note 16 for further discussion. Reserve for Property Casualty Insurance Claims and Claims Expense. Standard Casualty establishes reserves for claims and claims expense on reported and unreported claims of insured losses. Our reserve process takes into account known facts and interpretations of circumstances and factors, including experience with similar cases, actual claims paid, historical trends involving claim payment patterns and pending levels of unpaid claims, loss management programs, product mix, contractual terms, changes in law and regulation, judicial decisions and economic conditions. In the normal course of business, we may also supplement our claims processes by utilizing third party adjusters, appraisers, engineers, inspectors and other professionals and information sources to assess and settle catastrophe and non-catastrophe related claims. The effects of inflation are implicitly considered in the reserving process. The applicable reserve balance was $8.1 million and $7.5 million as of April 2, 2022 and April 3, 2021, respectively, of which $3.8 million and $3.7 million related to incurred but not reported ("IBNR") losses, respectively. Insurance. We are self-insured for a significant portion of our general and products liability, auto liability, health, property and workers' compensation liability coverage. Insurance is maintained for catastrophic exposures and those risks required to be insured by law. Estimated self-insurance costs are accrued for incurred claims and estimated IBNR losses. A reserve for products liability is actuarially determined and reflected in Accrued expenses and other current liabilities in the accompanying Consolidated Balance Sheets. The determination of claims and expenses and the appropriateness of the related liabilities are regularly reviewed and updated. Advertising. Advertising costs are expensed as incurred and were $1.4 million in fiscal year 2022, $807,000 in fiscal year 2021 and $900,000 in fiscal year 2020. Fair Value of Financial Instruments. Our financial instruments consist of cash and cash equivalents, restricted cash, accounts receivable, investments, consumer loans receivable, commercial loans receivable, accounts payable, certain accrued expenses and other current liabilities and secured credit facilities and other financings. In accordance with FASB 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 carrying amount of cash and cash equivalents approximates fair value because their maturity is less than three months. The carrying amounts of restricted cash, accounts receivable, accounts payable and certain accrued expenses and other current liabilities approximate fair value due to the short-term maturity of the amounts. See Note 19 for the fair values of our other financial instruments and the inputs used. Income Taxes. We account for income taxes pursuant to FASB ASC 740, Income Taxes ("ASC 740") and provide for income taxes utilizing the asset and liability approach. Under this approach, deferred taxes represent the future tax consequences expected to occur when the reported amounts of assets and liabilities are recovered or paid. 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. Deferred taxes result from differences between the financial and tax bases of the Company's assets and liabilities and are adjusted for changes in tax rates and tax laws when changes are enacted. The calculation of tax liabilities involves considering uncertainties in the application of complex tax regulations. We recognize liabilities for anticipated tax audit issues based on our estimate of whether, and the extent to which, additional taxes will be due. If payment of these amounts ultimately proves to be unnecessary, the reversal of the liabilities would result in tax benefits being recognized in the period of derecognition. If the estimate of tax liabilities proves to be less than the ultimate assessment, a further charge to expense would result. We use a two-step approach to evaluate uncertain tax positions. This approach involves recognizing any tax positions that are more likely than not to occur and then measuring those positions to determine the amounts to be recognized in the Consolidated Financial Statements. Other Income, net. Other income primarily consists of realized and unrealized gains and losses on corporate investments, interest income related to commercial loan receivables and earned on cash balances, gains and losses on the sale of property, plant and equipment or assets held for sale and impairment of such assets, if necessary. Stock-Based Compensation . Stock-based compensation is measured based on the fair value of the award on the date of grant and the corresponding expense is recognized over the period during which an employee is required to provide service in exchange for the award. Stock-based compensation expense is classified in the same line item of our Consolidated Statements of Comprehensive Income as other payroll-related expenses specific to the employee. Compensation expense related to service-based restricted stock units ("RSUs") is recognized on a straight-line basis over the requisite service period for the entire award. Compensation expense related to performance-based RSUs is recognized on a straight-line basis over the requisite service period for each separately vesting portion of the award as if the award was, in-substance, multiple awards (i.e., a graded vesting basis). We use historical data to estimate pre-vesting forfeitures and record stock-based compensation cost, using the straight-line attribution method, only for those awards that are expected to vest. Compensation expense related to performance-based awards is based on management's estimate of the probability of the performance criteria being satisfied, adjusted at each balance sheet date (see Note 17). Redeemable Noncontrolling Interest. We have a 70% interest in Craftsman Homes, LLC and Craftsman Homes Development, LLC (collectively known as "Craftsman" or the "Entities"). See Note 22 for a description of the transaction. As a result, we consolidate the Entities while recognizing a noncontrolling interest for the remaining third party ("Craftsman Seller") ownership. An additional 20% of the remaining equity of Craftsman is to be purchased on December 31, 2023 by us for cash. As mandatory redemption of this ownership interest is required, the fair value of this portion of the noncontrolling interest is recorded in the long-term liabilities section of the Consolidated Balance Sheet within Secured financings and other. In each reporting period hereafter, until purchased by the Company, the mandatorily redeemable noncontrolling interest is adjusted to its current redemption value, based on a predetermined formula. Adjustments in the redemption value to the mandatorily redeemable noncontrolling interest are recorded to Interest expense. The Craftsman Seller can require us to purchase their remaining 10% ownership ("Put Right"), after December 31, 2023, for an amount specified in the Craftsman Purchase Agreement that is designed to approximate fair value. Likewise, we can require the Craftsman Seller to sell us their remaining 10% ownership ("Call Right") based on the same timing as described above for the Put Right. As redemption of this remaining ownership is not a current obligation, the fair value of this portion of the noncontrolling interest is classified as a temporary equity mezzanine item between liabilities and stockholders' equity in the Consolidated Balance Sheets as Redeemable noncontrolling interest. The amount of income attributable to this noncontrolling interest is included on the face of the Consolidated Statements of Comprehensive Income. Accumulated Other Comprehensive Income (loss). AOCI is comprised of unrealized gains and losses on available-for-sale debt securities (see Note 4), and is presented net of tax. Accumulated unrealized loss on available-for-sale debt securities at the end of fiscal year 2022 was $510,000 before tax, with an associated tax amount of $107,000, resulting in a net unrealized loss of $403,000. Unrealized gain on available-for-sale debt securities for fiscal year 2021 was $123,000, with an associated tax amount of $26,000, for a net unrealized gain of $97,000. Treasury Stock. We record repurchases of our common stock as treasury stock at cost. As we do not have a formal retirement plan for the shares acquired, and the ultimate disposition has not yet been decided, we show the cost of the acquired stock separately as a deduction from equity. Net Income 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 (see Note 18). Recently Issued or Adopted Accounting Pronouncements. From time to time, new accounting pronouncements are issued by the FASB and other regulatory bodies that are adopted 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. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 12 Months Ended |
Apr. 02, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customer | Revenue from Contracts with Customers Revenues are recognized when a good or service is transferred to a customer. A good or service is transferred when, or as, the customer obtains control of that good or service. Revenues are based on the consideration expected to be received in connection with our promises to deliver goods and services to the customers. Site Improvements on Retail Sales. We recognize sales of subcontracted ancillary services, such as preparation of the home site or other exterior enhancements. Such services are provided as a convenience to the customer. As we are involved in the selection of subcontractors, under FASB ASC 606, Revenue from Contracts with Customers , we recognize the sale of these ancillary services on a gross basis. The revenues associated with these programs for fiscal years 2022, 2021 and 2020 were $43.9 million, $41.1 million and $30.0 million, respectively. Additional Items . Expected consideration, and therefore revenue, reflects reductions for returns, allowances and other incentives, some of which may be contingent on future events. Additionally, our volume rebates are accrued at the time of sale and are recorded as a reduction of Net revenue. In customer contracts for retail sales of manufactured homes, consideration includes certain state and local excise taxes billed to customers when those taxes are levied directly upon us by the taxing authorities. Expected consideration excludes sales and other taxes collected on behalf of taxing authorities. We elect to treat consideration for freight performed as a fulfillment activity. Therefore, Net revenue includes consideration for freight and other fulfillment activities performed prior to the customer obtaining control of the goods. Practical Expedients and Exemptions. We generally expense sales commissions when incurred because the amortization period would be one-year or less. These costs are recorded within Selling, general and administrative expenses. In addition, we do not disclose the value of unsatisfied performance obligations for contracts with an expected length of one-year or less. Disaggregation of Revenue . The following table summarizes customer contract revenues disaggregated by reportable segment and source (in thousands). All revenue from customers is recognized at a point in time, either when the customer takes delivery or when a third-party insurance contract is executed, as more fully discussed above. April 2, April 3, March 28, Factory-built housing U.S. Housing and Urban Development code homes $ 1,335,904 $ 842,515 $ 813,074 Modular homes 117,817 91,896 84,498 Park model RVs 42,219 46,862 46,427 Other 60,343 56,616 55,341 1,556,283 1,037,889 999,340 Financial services Insurance agency commissions received from third-party insurance companies 4,055 3,102 3,352 All other sources 66,820 67,060 59,082 70,875 70,162 62,434 $ 1,627,158 $ 1,108,051 $ 1,061,774 |
Restricted Cash
Restricted Cash | 12 Months Ended |
Apr. 02, 2022 | |
Cash and Cash Equivalents [Abstract] | |
Restricted Cash | Restricted Cash Restricted cash consisted of the following (in thousands): April 2, April 3, Cash related to CountryPlace customer payments to be remitted to third parties $ 13,857 $ 16,049 Other restricted cash 1,327 979 15,184 17,028 Less current portion (14,849) (16,693) $ 335 $ 335 Corresponding amounts for customer payments to be remitted to third parties are recorded in Accounts payable. The following table provides a reconciliation of Cash and cash equivalents and Restricted cash reported within the Consolidated Balance Sheets to the combined amounts shown in the Consolidated Statements of Cash Flows (in thousands): April 2, April 3, March 28, Cash and cash equivalents $ 244,150 $ 322,279 $ 241,826 Restricted cash 15,184 17,028 13,781 $ 259,334 $ 339,307 $ 255,607 |
Investments
Investments | 12 Months Ended |
Apr. 02, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments Investments consisted of the following (in thousands): April 2, April 3, Available-for-sale debt securities $ 17,760 $ 14,946 Marketable equity securities 16,780 17,600 Non-marketable equity investments 20,479 21,960 55,019 54,506 Less short-term investments (20,086) (19,496) $ 34,933 $ 35,010 Investments in marketable equity securities consist of investments in the common stock of industrial and other companies. Our non-marketable equity investments include investments in community-based initiatives that buy and sell our homes and provide home-only financing to residents of certain manufactured home communities and other distribution operations. We record investments in fixed maturity securities classified as available-for-sale at fair value and record the difference between fair value and cost in AOCI. The amortized cost and fair value of our investments in available-for-sale debt securities, by security type are shown in the table below (in thousands): April 2, 2022 Amortized Gross Gross Fair Residential mortgage-backed securities $ 1,668 $ 2 $ (57) $ 1,613 State and political subdivision debt securities 10,100 38 (232) 9,906 Corporate debt securities 6,502 1 (262) 6,241 $ 18,270 $ 41 $ (551) $ 17,760 April 3, 2021 Amortized Gross Gross Fair Residential mortgage-backed securities $ 2,787 $ 30 $ (13) $ 2,804 State and political subdivision debt securities 7,239 125 (19) 7,345 Corporate debt securities 4,797 11 (11) 4,797 $ 14,823 $ 166 $ (43) $ 14,946 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): April 2, 2022 Less than 12 Months 12 Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized Residential mortgage-backed securities $ 1,048 $ (45) $ 289 $ (12) $ 1,337 $ (57) State and political subdivision debt securities 3,884 (164) 1,246 (68) 5,130 (232) Corporate debt securities 5,215 (231) 598 (31) 5,813 (262) $ 10,147 $ (440) $ 2,133 $ (111) $ 12,280 $ (551) April 3, 2021 Less than 12 Months 12 Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized Residential mortgage-backed securities $ 927 $ (6) $ 450 $ (7) $ 1,377 $ (13) State and political subdivision debt securities 3,013 (19) — — 3,013 (19) Corporate debt securities 2,153 (10) 249 (1) 2,402 (11) $ 6,093 $ (35) $ 699 $ (8) $ 6,792 $ (43) We are not aware of any changes to the securities or issuers that would indicate the losses above are indicative of credit impairment as of April 2, 2022. Further, we do not intend to sell the investments, and it is more likely than not that we will not be required to sell the investments, before recovery of their amortized cost. The amortized cost and fair value of our 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. April 2, 2022 Amortized Fair Due in less than one year $ 3,300 $ 3,302 Due after one year through five years 11,394 10,901 Due after five years through ten years 1,261 1,281 Due after ten years 647 663 Mortgage-backed securities 1,668 1,613 $ 18,270 $ 17,760 We recognize investment gains and losses on available-for-sale debt securities when we sell or otherwise dispose of securities using the specific identification method. Gross gains realized on the sale of available-for-sale debt securities totaled $2,000 for fiscal year 2022, and there were none in 2021 or 2020. There were no gross losses realized on the sale of available-for-sale debt securities in fiscal year 2022. Gross losses in fiscal year 2021 were $6,000 and there were none in fiscal year 2020. We recognize 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. See Note 1 for further discussion. Net investment gains and losses on marketable equity securities for fiscal years 2022, 2021 and 2020 were as follows (in thousands): Year Ended April 2, April 3, March 28, 2020 Marketable equity securities: Net gain (loss) recognized during the period $ 2,160 $ 8,515 $ (2,264) Less: Net (gains) losses recognized on securities sold during the period (551) (2,191) 232 Unrealized gains (losses) recognized during the period on securities still held $ 1,609 $ 6,324 $ (2,032) |
Inventories
Inventories | 12 Months Ended |
Apr. 02, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consisted of the following (in thousands): April 2, April 3, Raw materials $ 95,929 $ 54,336 Work in process 30,638 19,149 Finished goods 117,404 57,749 $ 243,971 $ 131,234 |
Consumer Loans Receivable
Consumer Loans Receivable | 12 Months Ended |
Apr. 02, 2022 | |
Receivables [Abstract] | |
Consumer Loans Receivable | Consumer Loans Receivable The following table summarizes consumer loans receivable (in thousands): April 2, April 3, Loans held for investment, previously securitized $ 26,014 $ 31,949 Loans held for investment 14,771 18,690 Loans held for sale 8,500 15,587 Construction advances 3,547 13,801 52,832 80,027 Deferred financing fees and other, net (833) (2,041) Allowance for loan losses (2,115) (3,188) 49,884 74,798 Less current portion (20,639) (37,690) $ 29,245 $ 37,108 The allowance for loan losses reflects our judgment of the probable loss exposure on loans held for investment. The following table represents changes in the estimated allowance for loan losses, including related additions and deductions to the allowance for loan losses (in thousands): April 2, April 3, Allowance for loan losses at beginning of period $ 3,188 $ 1,767 Impact of adoption of ASU 2016-13 — 2,276 Change in estimated loan losses, net (541) (655) Charge-offs (532) (201) Recoveries — 1 Allowance for loan losses at end of period $ 2,115 $ 3,188 The consumer loans held for investment had the following characteristics: April 2, April 3, Weighted average contractual interest rate 8.32 % 8.26 % Weighted average effective interest rate 9.21 % 9.34 % Weighted average months to maturity 151 162 The following table is a consolidated summary of the delinquency status of the outstanding amortized cost of consumer loans receivable (in thousands): April 2, April 3, Current $ 49,546 $ 76,378 31 to 60 days 1,202 508 61 to 90 days 41 21 91+ days 2,043 3,120 $ 52,832 $ 80,027 The following table disaggregates gross consumer loans receivable by credit quality indicator and fiscal year of origination (in thousands): April 2, 2022 2022 2021 2020 2019 2018 Prior Total Prime- FICO score 680 and greater $ 8,155 $ 1,615 $ 2,371 $ 1,339 $ 853 $ 20,485 $ 34,818 Near Prime- FICO score 620-679 1,661 1,274 1,413 1,976 617 9,266 16,207 Sub-Prime- FICO score less than 620 45 20 52 — — 1,318 1,435 No FICO score — — — 26 — 346 372 $ 9,861 $ 2,909 $ 3,836 $ 3,341 $ 1,470 $ 31,415 $ 52,832 April 3, 2021 2021 2020 2019 2018 2017 Prior Total Prime- FICO score 680 and greater $ 18,250 $ 3,575 $ 1,718 $ 971 $ 1,959 $ 23,375 $ 49,848 Near Prime- FICO score 620-679 10,227 2,744 1,794 1,364 500 10,401 27,030 Sub-Prime- FICO score less than 620 348 53 — — 84 1,579 2,064 No FICO score 576 — 28 — — 481 1,085 $ 29,401 $ 6,372 $ 3,540 $ 2,335 $ 2,543 $ 35,836 $ 80,027 Loan contracts secured by geographically concentrated collateral could experience higher rates of delinquencies, default and foreclosure losses than loan contracts secured by collateral that is more geographically dispersed. As of April 2, 2022, 39% of the outstanding principal balance of the consumer loans receivable portfolio was concentrated in Texas and 17% was concentrated in Florida. As of April 3, 2021, 35% of the outstanding principal balance of the consumer loans receivable portfolio was concentrated in Texas and 20% was concentrated in Florida. Other than Texas and Florida, no state had concentrations in excess of 10% of the principal balance of consumer loans receivable as of April 2, 2022 or April 3, 2021. Collateral for repossessed loans is acquired through foreclosure or similar proceedings and is recorded at the estimated fair value of the home l ess the estimated 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 $499,000 as of April 2, 2022 and $518,000 as of April 3, 2021, and are included in Pre paid expenses and other current assets in the Consolidated Balance Sheets. Foreclosure or similar proceedings in progress totaled approximately $1.1 million as of April 2, 2022 and April 3, 2021. |
Commercial Loans Receivables
Commercial Loans Receivables | 12 Months Ended |
Apr. 02, 2022 | |
Receivables [Abstract] | |
Commercial Loans Receivable | Commercial Loans Receivable The commercial loans receivable balance consists of direct financing arrangements for the home product needs of our independent distributors, community owners and developers . We also provide loans to independent floor plan lenders that then lend to distributors to finance their inventory purchases. The notes are secured by the homes as collateral and, in some instances, other security. Other terms of direct arrangements vary, depending on the needs of the borrower and the opportunity for the Company. Commercial loans receivable, net consisted of the following, by class of financing notes receivable (in thousands): April 2, April 3, Loans receivable $ 69,693 $ 45,377 Allowance for loan losses (1,011) (816) Deferred financing fees, net (116) (247) 68,566 44,314 Less current portion of commercial loans receivable (including from affiliates), net (32,644) (19,232) $ 35,922 $ 25,082 The commercial loans receivable balance had the following characteristics: April 2, April 3, Weighted average contractual interest rate 6.4 % 6.4 % Weighted average months outstanding 9 11 The risk of loss is spread over numerous borrowers. 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. Historically, we have been able to sell repossessed homes, thereby mitigating loss exposure. If a default occurs and collateral is lost, we are exposed to loss of the full value of the home loan. We evaluate the potential for loss from the commercial loan programs on a collective basis, aggregating similar loans based on their terms. Our evaluation also considers the borrower's risk rating, overall financial stability, historical experience and estimates of other economic factors. The following table represents changes in the e stimated allowance for loan losses, including related additions and deductions to the allowance for loan losses (in thousands): April 2, April 3, Balance at beginning of period $ 816 $ 393 Impact of adoption of ASU 2016-13 — 435 Purchase accounting additions 408 — Change in estimated loan losses, net (213) (12) Loans charged off, net of recoveries — — Balance at end of period $ 1,011 $ 816 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. Our policy is to place loans on nonaccrual status when interest is past due and remains unpaid 90 days or more or when there is a clear indication that the borrower is unable or unwilling to make payments as they become due. We will resume accrual of interest once these factors have been remedied. Payments received on non-accrual loans are recorded on a cash basis, first to interest and then to principal, and charge-offs occur when it becomes probable that outstanding amounts will not be recovered. At April 2, 2022, there were no commercial loans 90 days or more past due that were still accruing interest, and we were not aware of any potential problem loans that would have a material effect on the commercial loans receivable balance. The following table disaggregates our commercial loans receivable by credit quality indicator and fiscal year of origination (in thousands): April 2, 2022 2022 2021 2020 2019 2018 Total Performing $ 52,592 $ 10,181 $ 4,031 $ 1,391 $ 1,498 $ 69,693 April 3, 2021 2021 2020 2019 2018 2017 Total Performing $ 30,627 $ 8,677 $ 3,206 $ 1,864 $ 1,003 $ 45,377 As of April 2, 2022, 24.9% of our outstanding commercial loans receivable principal balance was concentrated in New York. As of April 3, 2021, 13.1% of the outstanding commercial loans receivable principal balance was concentrated in Arizona. No other state had concentrations in excess of 10% of the principal balance of the commercial loans receivable as of April 2, 2022 or April 3, 2021. We had concentrations with one independent third-party and its affiliates that equaled 13.7% and 17.8% of the net commercial loans receivables principal balance outstanding, all of which was secured, as of April 2, 2022 and April 3, 2021, respectively. The risks created by these concentrations have been considered in the determination of the adequacy of the allowance for loan losses. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Apr. 02, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment, net | Property, Plant and Equipment, net Property, plant and equipment, net, consisted of the following (in thousands): April 2, April 3, Property, plant and equipment, at cost: Land $ 32,154 $ 28,314 Buildings and improvements 100,775 52,174 Machinery and equipment 48,638 32,528 Construction in progress 29,281 21,271 210,848 134,287 Accumulated depreciation (46,832) (37,493) $ 164,016 $ 96,794 Depreciation expense was $9.6 million in fiscal year 2022, $5.6 million in fiscal year 2021 and $5.2 million in fiscal year 2020. Included in the balances above are certain assets under finance leases. See Note 9 for additional information. |
Leases
Leases | 12 Months Ended |
Apr. 02, 2022 | |
Leases [Abstract] | |
Operating Leases | Leases We lease certain production and retail locations, office space and equipment. We determine 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 in the Consolidated Balance Sheets. 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 our 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 we are reasonably certain to exercise. Certain of our lease agreements include rental payments adjusted periodically for inflation. These lease agreements do not contain any material residual value guarantees or material restrictive covenants. Right Of Use ("ROU") assets represent the right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments in accordance with 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 our leases do not provide a readily determinable implicit interest rate, we estimate an incremental borrowing rate. In determining the estimated incremental borrowing rate, we consider 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 we will exercise such options. The following table provides information about the financial statement classification of our lease balances reported within the Consolidated Balance Sheets as of April 2, 2022 and April 3, 2021 (in thousands): Classification April 2, April 3, ROU assets Operating lease assets Operating lease right-of-use assets $ 16,952 $ 16,252 Finance lease assets Property, plant and equipment, net (1) 7,070 986 Total lease assets $ 24,022 $ 17,238 Lease Liabilities Current: Operating lease liabilities Accrued expenses and other current liabilities $ 5,085 $ 4,184 Finance lease liabilities Current portion of secured credit facilities and other 347 71 Non-current: Operating lease liabilities Operating lease liabilities 13,158 13,361 Finance lease liabilities Secured credit facilities and other 5,969 233 Total lease liabilities $ 24,559 $ 17,849 (1) Recorded net of accumulated amortization of $87,000 and $143,000 as of April 2, 2022 and April 3, 2021, respectively. The following table provides information about the financial statement classification of our lease expenses reported within the Consolidated Statements of Comprehensive Income for the years ended April 2, 2022, April 3, 2021 and March 28, 2020 (in thousands): Year Ended Lease Expense Category Classification April 2, April 3, March 28, Operating lease expense (2) Cost of sales $ 1,160 $ 1,105 $ 834 Selling, general and administrative expenses 3,636 3,327 3,119 Finance lease expense: Amortization of leased assets Cost of sales 109 39 39 Interest on lease liabilities Interest expense 151 17 52 Total lease expense $ 5,056 $ 4,488 $ 4,044 (2) Excludes short-term and variable lease expenses, which are immaterial. Cash payments for operating and finance leases were as follows (in thousands): April 2, April 3, March 28, Operating leases $ 4,794 $ 4,164 $ 3,375 Finance leases 220 79 142 The present value minimum payments for future fiscal years under non-cancelable leases as of April 2, 2022 was as follows (in thousands): Operating Leases Finance Leases Total 2023 $ 5,214 $ 356 $ 5,570 2024 4,727 356 5,083 2025 3,691 356 4,047 2026 3,369 356 3,725 2027 1,220 356 1,576 Thereafter 2,056 10,941 12,997 20,277 12,721 32,998 Less: Amount representing interest (2,034) (6,405) (8,439) $ 18,243 $ 6,316 $ 24,559 The following table provides information about the weighted average remaining lease terms and weighted average discount rates as of April 2, 2022: Remaining Lease Term (Years) Discount Rate Operating leases 4.7 4.5 % Finance leases 35.7 4.5 % |
Finance Leases | Leases We lease certain production and retail locations, office space and equipment. We determine 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 in the Consolidated Balance Sheets. 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 our 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 we are reasonably certain to exercise. Certain of our lease agreements include rental payments adjusted periodically for inflation. These lease agreements do not contain any material residual value guarantees or material restrictive covenants. Right Of Use ("ROU") assets represent the right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments in accordance with 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 our leases do not provide a readily determinable implicit interest rate, we estimate an incremental borrowing rate. In determining the estimated incremental borrowing rate, we consider 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 we will exercise such options. The following table provides information about the financial statement classification of our lease balances reported within the Consolidated Balance Sheets as of April 2, 2022 and April 3, 2021 (in thousands): Classification April 2, April 3, ROU assets Operating lease assets Operating lease right-of-use assets $ 16,952 $ 16,252 Finance lease assets Property, plant and equipment, net (1) 7,070 986 Total lease assets $ 24,022 $ 17,238 Lease Liabilities Current: Operating lease liabilities Accrued expenses and other current liabilities $ 5,085 $ 4,184 Finance lease liabilities Current portion of secured credit facilities and other 347 71 Non-current: Operating lease liabilities Operating lease liabilities 13,158 13,361 Finance lease liabilities Secured credit facilities and other 5,969 233 Total lease liabilities $ 24,559 $ 17,849 (1) Recorded net of accumulated amortization of $87,000 and $143,000 as of April 2, 2022 and April 3, 2021, respectively. The following table provides information about the financial statement classification of our lease expenses reported within the Consolidated Statements of Comprehensive Income for the years ended April 2, 2022, April 3, 2021 and March 28, 2020 (in thousands): Year Ended Lease Expense Category Classification April 2, April 3, March 28, Operating lease expense (2) Cost of sales $ 1,160 $ 1,105 $ 834 Selling, general and administrative expenses 3,636 3,327 3,119 Finance lease expense: Amortization of leased assets Cost of sales 109 39 39 Interest on lease liabilities Interest expense 151 17 52 Total lease expense $ 5,056 $ 4,488 $ 4,044 (2) Excludes short-term and variable lease expenses, which are immaterial. Cash payments for operating and finance leases were as follows (in thousands): April 2, April 3, March 28, Operating leases $ 4,794 $ 4,164 $ 3,375 Finance leases 220 79 142 The present value minimum payments for future fiscal years under non-cancelable leases as of April 2, 2022 was as follows (in thousands): Operating Leases Finance Leases Total 2023 $ 5,214 $ 356 $ 5,570 2024 4,727 356 5,083 2025 3,691 356 4,047 2026 3,369 356 3,725 2027 1,220 356 1,576 Thereafter 2,056 10,941 12,997 20,277 12,721 32,998 Less: Amount representing interest (2,034) (6,405) (8,439) $ 18,243 $ 6,316 $ 24,559 The following table provides information about the weighted average remaining lease terms and weighted average discount rates as of April 2, 2022: Remaining Lease Term (Years) Discount Rate Operating leases 4.7 4.5 % Finance leases 35.7 4.5 % |
Goodwill and Other Intangibles
Goodwill and Other Intangibles | 12 Months Ended |
Apr. 02, 2022 | |
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): April 2, 2022 April 3, 2021 Gross Accumulated Net Gross Accumulated Net Indefinite-lived: Goodwill $ 100,993 $ — $ 100,993 $ 75,090 $ — $ 75,090 Trademarks and trade names 15,680 — 15,680 8,900 — 8,900 State insurance licenses 1,100 — 1,100 1,100 — 1,100 117,773 — 117,773 85,090 — 85,090 Finite lived: Customer relationships 19,500 (8,392) 11,108 11,300 (7,097) 4,203 Other 1,924 (1,353) 571 1,424 (1,264) 160 $ 139,197 $ (9,745) $ 129,452 $ 97,814 $ (8,361) $ 89,453 Changes in the carrying amount of Goodwill were as follows for the year ended April 2, 2022 (in thousands). See Note 22 for further information. April 2, Balance at beginning of period $ 75,090 Goodwill recognized on Craftsman acquisition 4,595 Goodwill recognized on Commodore (as defined in Note 22) acquisition 21,308 Balance at end of period $ 100,993 Amortization expense recognized on intangible assets was $1.4 million during fiscal year 2022, $747,000 during fiscal year 2021 and $606,000 during fiscal year 2020. Expected amortization for future fiscal years is as follows (in thousands): 2023 $ 2,013 2024 1,339 2025 1,300 2026 1,258 2027 1,185 Thereafter 4,584 |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 12 Months Ended |
Apr. 02, 2022 | |
Payables and Accruals [Abstract] | |
Accrued Expenses and Other Current Liabilities | Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consisted of the following (in thousands): April 2, April 3, Customer deposits $ 56,318 $ 41,835 Salaries, wages and benefits 54,172 37,737 Estimated warranties 26,250 18,032 Unearned insurance premiums 24,917 22,643 Accrued volume rebates 18,641 12,132 Company repurchase options on certain loans sold 9,375 25,938 Other 60,631 44,816 $ 250,304 $ 203,133 |
Warranties
Warranties | 12 Months Ended |
Apr. 02, 2022 | |
Product Warranties Disclosures [Abstract] | |
Warranties | Warranties Activity in the liability for estimated warranties for fiscal years 2022, 2021 and 2020 was as follows (in thousands): April 2, April 3, March 28, Balance at beginning of period $ 18,032 $ 18,678 $ 17,069 Purchase accounting additions 5,909 — 1,192 Charged to costs and expenses 40,678 28,352 29,885 Payments and deductions (38,369) (28,998) (29,468) Balance at end of period $ 26,250 $ 18,032 $ 18,678 |
Secured Financings and Other
Secured Financings and Other | 12 Months Ended |
Apr. 02, 2022 | |
Debt Disclosure [Abstract] | |
Secured Financings and Other | Secured Financings and Other The following table summarizes secured financings and other obligations (in thousands): April 2, April 3, Finance lease payables $ 6,316 $ 304 Other secured financing 2,933 3,672 Mandatorily redeemable noncontrolling interest 2,371 — Secured term loans — 8,210 11,620 12,186 Less current portion (784) (1,851) $ 10,836 $ 10,335 We previously entered into secured credit facilities with independent third-party banks to originate and hold consumer home-only loans secured by manufactured homes Those facilities were then converted into amortizing loans, which were paid in full as of April 2, 2022. Scheduled maturities for future fiscal years of the Company's obligations consist of the following (in thousands): 2023 $ 510 2024 2,828 2025 416 2026 379 2027 341 Thereafter 7,146 Actual payments may vary from those above, resulting from prepayments or other factors. See Note 9 for further discussion of the finance lease obligations. |
Reinsurance and Insurance Loss
Reinsurance and Insurance Loss Reserves | 12 Months Ended |
Apr. 02, 2022 | |
Insurance [Abstract] | |
Reinsurance and Insurance Loss Reserves | Reinsurance and Insurance Loss Reserves Standard Casualty is primarily a specialty writer of manufactured home physical damage insurance. Certain of our premiums and benefits are assumed from and ceded to other insurance companies under various reinsurance agreements. The ceded reinsurance agreements provide increased capacity to write larger risks while maintaining exposure to loss within our capital resources. We remain obligated for amounts ceded in the event that the reinsurers do not meet their obligations. Substantially all of the assumed reinsurance is with one entity. The effects of reinsurance on premiums written and earned were as follows (in thousands): Year Ended April 2, 2022 April 3, 2021 Written Earned Written Earned Direct premiums $ 27,639 $ 25,543 $ 23,226 $ 21,424 Assumed premiums—nonaffiliated 31,693 30,579 29,167 28,160 Ceded premiums—nonaffiliated (15,232) (15,232) (12,604) (12,604) $ 44,100 $ 40,890 $ 39,789 $ 36,980 Typical insurance policies written or assumed have a maximum coverage of $300,000 per claim, of which we cede $125,000 of the risk of loss per reinsurance. Therefore, our risk of loss is limited to $175,000 per claim on typical policies, subject to the reinsurers meeting their obligations. After this limit, amounts are recoverable through reinsurance for catastrophic losses in excess of $2.0 million per occurrence, up to a maximum of $70.0 million in the aggregate for that occurrence. Purchasing reinsurance contracts mitigates the 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, we may be required to repurchase and reestablish the reinsurance contracts for the remainder of the year to the extent that they have been utilized. Standard Casualty establishes reserves for claims and claims expense on reported and IBNR claims of non-reinsured losses. The following details the activity in the reserve for fiscal years 2022, 2021 and 2020 (in thousands): April 2, April 3, March 28, Balance at beginning of period $ 7,451 $ 5,582 $ 6,686 Net incurred losses during the year 25,962 23,041 16,961 Net claim payments during the year (25,264) (21,172) (18,065) Balance at end of period $ 8,149 $ 7,451 $ 5,582 |
Income Taxes
Income Taxes | 12 Months Ended |
Apr. 02, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes 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. The following details the provision for income taxes for fiscal years 2022, 2021 and 2020 (in thousands): 2022 2021 2020 Current Federal $ 7,271 $ 16,823 $ 14,625 State 8,768 3,128 3,084 16,039 19,951 17,709 Deferred Federal (1,257) 302 246 State (535) 13 (42) (1,792) 315 204 $ 14,247 $ 20,266 $ 17,913 A reconciliation of income taxes computed by applying the expected federal statutory income tax rate of 21% for fiscal years 2022, 2021 and 2020 to income before income taxes reported in the Consolidated Statements of Comprehensive Income is as follows (in thousands): 2022 2021 2020 Federal income tax at statutory rate $ 44,518 $ 20,351 $ 19,525 State income taxes, net of federal benefit 8,075 3,422 3,297 Stock-based compensation (1,421) (2,710) (2,994) Tax credits (37,488) (1,356) (2,401) Other 563 559 486 $ 14,247 $ 20,266 $ 17,913 Net deferred tax assets and liabilities were as follows (in thousands): April 2, April 3, Net deferred tax (liabilities) assets Goodwill $ (16,675) $ (16,327) Property, plant and equipment (7,030) (5,121) Warranty reserves 5,913 4,277 Lease - Operating lease liability 4,270 4,123 Lease - Right of use assets (3,968) (3,820) Salaries and wages 3,924 3,065 Accrued volume rebates 2,600 1,494 Stock-based compensation 2,199 2,177 Inventory 2,192 1,271 Unrealized gains on marketable equity investments (1,715) (1,695) Loan discount 1,275 1,631 Other intangibles — (1,538) Other 1,487 3,070 $ (5,528) $ (7,393) The effective income tax rate for the current year was positively impacted by the recognition of tax credits and stock option exercises. The net tax credit benefit predominantly related to the sale of energy efficient homes between fiscal year 2018 and fiscal third quarter 2022 available under the Internal Revenue Code §45L. Of the total tax credit benefit, $30.6 million relates to fiscal year 2018 through fiscal year 2021 and $6.4 million relates to fiscal year 2022, which includes non-recurring credits that were recognized during the 2022 fiscal year. The remaining $500,000 relates to the Research and Development and Work Opportunity Tax Credits. The §45L tax credit was initially established under the Federal Energy Policy Act of 2005 and most recently extended in the Consolidated Appropriations Act, 2021. The §45L credit expired in its current form as of December 31, 2021. The Company determined eligibility for the program in consultation with third-party qualified experts and recognized the benefit for the five eligible years during fiscal year 2022. We recorded an insignificant amount of unrecognized tax benefits during fiscal years 2022, 2021 and 2020, and there would be an insignificant effect on the effective tax rate if all unrecognized tax benefits were recognized. We classify interest and penalties related to unrecognized tax benefits in income tax expense. The total amount of unrecognized tax benefit related to any particular tax position is not anticipated to change significantly within the next 12 months. We believe that our income tax filing positions and deductions will be sustained on audit and we do not anticipate any adjustments that will result in a material change to our financial position. We periodically evaluate the deferred tax assets based on the requirements established in ASC 740, which requires the recording of a valuation allowance when it is more likely than not that some portion or all of the deferred tax assets will not be realized. The determination of the need for, or amount of, any valuation allowance involves significant management judgment and is based upon the evaluation of both positive and negative evidence, including management projections of anticipated taxable income. At April 2, 2022, we had state net operating loss carryforwards that total $8.6 million, which begin to expire in 2038. We recorded a $308,000 valuation allowance against the related deferred tax asset. At April 2, 2022, we evaluated our historical profits earned and forecasted taxable income and determined that, except as described above, all of the deferred tax assets would be utilized in future periods. Ultimate realization of the deferred tax assets depends on our ability to continue to earn profits, as we have historically, and to meet these forecasts in future periods. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Apr. 02, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Repurchase Contingencies . We are contingently liable under terms of repurchase agreements with financial institutions providing inventory financing to independent distributors of our 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 we may be obligated to pay generally declines over the period of the agreement (generally 18 to 24 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 liable under such agreements approximated $141.0 million and $74.2 million at April 2, 2022 and April 3, 2021, respectively, without reduction for the resale value of the homes. We had a reserve for repurchase commitments of $3.6 million and $2.3 million at April 2, 2022 and April 3, 2021, respectively. Constru ction-Period Mortgages. We fund construction-period mortgages through periodic advances during home construction. At the time of initial funding, we commit 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 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 to fund future advances. Loan contracts with off-balance sheet commitments are summarized below (in thousands): April 2, April 3, Construction loan contract amount $ 9,330 $ 37,628 Cumulative advances (3,547) (13,801) $ 5,783 $ 23,827 Representations and Warranties of Mortgages Sold . We sell loans to GSEs and whole-loan purchasers and finance certain loans with long-term credit facilities secured by the respective loans. In connection with these activities, we provide to GSEs and 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 transaction, including compliance with underwriting standards or loan criteria established by the buyer, and our 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, we may be required to repurchase the loan or to indemnif y 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. We manage the risk of repurchase through underwriting and quality assurance practices and by servicing the mortgage loans to investor standards. We maintain a reserve for these contingent repurchase and indemnification obligations. This reserve of $866,000 as of April 2, 2022 and $1.2 million as of April 3, 2021, included in Accrued expenses and other current liabilities, reflects management's estimate of probable loss. We consider 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. There were no claim requests that resulted in the repurchase of a loan during the year ended April 2, 2022. In addition, we are subject to minimum net worth requirements and was in compliance for the year ended April 2, 2022. Interest Rate Lock Commitments . In originating loans for sale, we issue 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 us 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 lock commitments generally range between 30 and 180 days; however, borrowers are not obligated to close the related loans. As a result, we are 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 April 2, 2022, we had outstanding IRLCs with a notional amount of $51.7 million, which are recorded at fair value in accordance with FASB 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, if in a net favorable position, or Accrued expenses and other current liabilities, if in a net unfavorable position, 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 fiscal year 2022, we recognized a non-cash gain of $1,000 on outstanding IRLCs. During fiscal years 2021 and 2020, we recognized a non-cash loss of $208,000 and non-cash gain of $153,000, respectively, on outstanding IRLCs. Forward Sales Commitments . We manage the risk profiles of a portion of the outstanding IRLCs and mortgage loans held for sale by entering into forward sales of mortgage-backed securities and whole loan sale commitments (collectively "Commitments"). As of April 2, 2022, we had $16.7 million in outstanding 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 Commitments are based on quoted market values and are recorded within Prepaid expenses and other current assets in the Consolidated Balance Sheets. During the year ended April 2, 2022, we recognized a non-cash loss of $92,000 on Commitments. During the fiscal years ended April 3, 2021 and March 28, 2020, we recognized a non-cash gain of $1.4 million and a non-cash loss of $951,000, r espectively, on Commitments. Legal Matters . On September 2, 2021, the SEC filed a civil complaint in the United States District Court, District of Arizona, naming the Company along with the Company's former Chairman, President & Chief Executive Officer ("CEO") and the Company's former Chief Financial Officer, alleging violations of the antifraud and internal accounting control provisions of the Securities Exchange Act of 1934 based on trading in the shares of another company directed by the former CEO that resulted in an unrealized gain of approximately $260,000. In the prior year, the Company recorded an accrual relating to this loss contingency. The SEC action follows an investigation that began in 2018. On November 2, 2021, the Company filed a motion to dismiss the claim. On January 25, 2022, the court denied the motion to dismiss and the matter is now in the discovery phase of litigation. While the Company cannot predict with certainty the resolution of this matter, we do not believe that this proceeding will have a material adverse effect on the Company's Consolidated Financial Statements. We are party to certain other lawsuits in the ordinary course of business. Based on management's present knowledge of the facts and (in certain cases) advice of outside counsel, management does not believe that loss contingencies arising from pending matters are likely to have a material adverse effect on our consolidated financial position, liquidity or results of operations after taking into account any existing reserves, which reserves are included in Accrued expenses and other current liabilities in the Consolidated Balance Sheets. 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 our consolidated financial position, liquidity or results of operations in any future reporting periods. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Apr. 02, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The Company maintains stock incentive plans whereby stock option grants or awards of RSUs 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 283,208 shares were still available for grant as of April 2, 2022. Upon option exercise, new shares of the Company's common stock are issued and when RSUs vest, unrestricted shares are issued. The exercise price of stock option awards may not be below 100% of the fair market value of the Company's common stock at the date of grant. Stock options generally expire seven years from the date of grant. Stock options and awards of RSUs 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 option awards and RSUs upon a change in control (as defined in the plans). We apply the fair value recognition provisions of ASC 718. Stock compensation expense was approximately $5.1 million, $4.4 million and $3.9 million for fiscal years 2022, 2021 and 2020, respectively. As of April 2, 2022, total unrecognized compensation cost was approximately $6.3 million and the related weighted-average period over which it is expected to be recognized is approximately 1.87 years. Stock Options. The following table summarizes stock option activity for fiscal years 2022, 2021 and 2020: Number Weighted Weighted Aggregate Outstanding at March 30, 2019 411,111 $ 102.71 Granted 74,750 145.24 Exercised (120,687) 63.66 Canceled or expired (1,000) 99.65 Outstanding at March 28, 2020 364,174 $ 123.93 4.02 $ 49,000 Granted 39,800 177.61 Exercised (131,567) 90.49 Canceled or expired (20,658) 148.95 Outstanding at April 3, 2021 251,749 $ 146.86 4.04 $ 34,266 Granted — — Exercised (53,550) 107.58 Canceled or expired (5,286) 164.49 Outstanding at April 2, 2022 192,913 $ 157.23 3.34 $ 16,724 Exercisable at March 28, 2020 179,133 $ 100.82 2.83 $ 25,423 Exercisable at April 3, 2021 108,588 $ 132.48 3.22 $ 15,549 Exercisable at April 2, 2022 126,948 $ 149.90 2.82 $ 11,941 There were no grants of stock options in fiscal year 2022. The weighted-average estimated fair value of employee stock options granted during fiscal years 2021 and 2020 was $69.65 and $46.84 per share, respectively, using the following weighted average assumptions: Fiscal Year 2021 2020 Volatility 47.5 % 36.0 % Risk-free interest rate 0.3 % 2.0 % Dividend yield — % — % Expected option life in years 4.56 4.33 Estimated forfeiture rate 7.0 % 7.0 % The total intrinsic value of options exercised during fiscal years 2022, 2021 and 2020 was $7.9 million, $16.7 million and $15.7 million, respectively. Restricted Stock Awards. A summary of RSU activity for fiscal years 2022, 2021 and 2020 is as follows: Number of Shares Performance-Based Awards Service-Based Awards Total Outstanding at March 30, 2019 — — — Awarded 7,305 4,900 12,205 Released — (400) (400) Canceled or expired — — — Outstanding at March 28, 2020 7,305 4,500 11,805 Awarded 7,450 3,550 11,000 Released — (3,465) (3,465) Canceled or expired (1,816) — (1,816) Outstanding at April 3, 2021 12,939 4,585 17,524 Awarded 7,920 16,902 24,822 Released — (3,335) (3,335) Canceled or expired (805) (505) (1,310) Outstanding at April 2, 2022 20,054 17,647 37,701 Unvested target performance-based RSUs that may vest based upon performance conditions through fiscal year 2022 6,333 Unvested target performance-based RSUs that may vest based upon performance conditions through fiscal year 2023 6,201 Unvested target performance-based RSUs that may vest based upon performance conditions through fiscal year 2024 7,520 |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Apr. 02, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The following table sets forth the computation of basic and diluted earnings per share for fiscal years 2022, 2021 and 2020 (dollars in thousands, except per share amounts): Fiscal Year 2022 2021 2020 Net income attributable to Cavco common stockholders $ 197,699 $ 76,646 $ 75,066 Weighted average shares outstanding: Basic 9,178,593 9,189,052 9,129,639 Effect of dilutive securities 85,560 104,082 139,145 Diluted 9,264,153 9,293,134 9,268,784 Net income per share attributable to Cavco common stockholders Basic $ 21.54 $ 8.34 $ 8.22 Diluted $ 21.34 $ 8.25 $ 8.10 Anti-dilutive common stock equivalents excluded 405 19,440 23,336 Outstanding RSUs excluded, as underlying performance criteria has not yet been met 20,054 12,939 7,305 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Apr. 02, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The book value and estimated fair value of our financial instruments were as follows (in thousands): April 2, 2022 April 3, 2021 Book Estimated Book Estimated Available-for-sale debt securities (1) $ 17,760 $ 17,760 $ 14,946 $ 14,946 Marketable equity securities (2) 16,780 16,780 17,600 17,600 Non-marketable equity investments (3) 20,479 20,479 21,960 21,960 Consumer loans receivable (4) (5) 49,884 53,354 74,798 86,209 Commercial loans receivable (5) 68,566 65,942 44,314 42,379 Secured credit facilities and other (6) (11,620) (11,806) (12,186) (12,340) (1) Level 2: The fair value is based on observable market prices for identical securities. When observable market prices for identical securities are not available, we price our 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. (2) Level 1: The fair value is based on quoted market prices. (3) Level 3: The fair value approximates book value based on the non-marketable nature of the investments. (4) Level 3: Includes consumer loans receivable held for investment, held for sale and construction advances. (5) Level 3: The fair value is estimated using market interest rates of comparable loans. (6) L evel 2: The fair value is based on the discounted value of the expected remaining principal and interest cash flows. Consumer 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, less costs to sell, 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. The cost of loans held for sale was lower than the fair value as of April 2, 2022. 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 recorded at fair value in Prepaid expenses and other current assets in the Consolidated Balance Sheets based on the present value of the expected future cash flows related to servicing these loans. April 2, April 3, Number of loans serviced with MSRs 4,346 4,647 Weighted average servicing fee (basis points) 34.76 33.57 Capitalized servicing multiple 85.07 % 45.93 % Capitalized servicing rate (basis points) 29.57 15.42 Serviced portfolio with MSRs (in thousands) $ 560,178 $ 593,939 MSRs (in thousands) $ 1,656 $ 916 |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Apr. 02, 2022 | |
Compensation Related Costs [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans We have self-funded group medical plans which are administered by third-party administrators. The medical plans have reinsurance coverage limiting liability for general individual employee loss to a maximum of $400,000. Incurred claims identified under the third-party administrator's incident reporting system and IBNR claims are accrued based on estimates that incorporate claim experience, as well as other considerations such as the nature of each claim or incident, relevant trend factors and advice from consulting actuaries when necessary. Medical claims expense was $22.8 million, $15.8 million and $15.7 million for fiscal years 2022, 2021 and 2020, respectively. We sponsor an employee savings plan (the "401k Plan") that is intended to provide participating employees with additional income upon retirement. Employees may contribute their eligible compensation up to federal limits to the 401k Plan. The Company match is discretionary and may be up to 50% of the first 5% of eligible compensation contributed by employees up to a maximum of $1,000. For calendar year 2021, the Company match was 20% of the first 5% of eligible compensation contributed by employees. Employees are eligible to participate on the first of the month following 90 days of service and employer matching contributions are vested progressively over 4 years. Employer matching contribution expense was $1.3 million in fiscal year 2022 and $1.1 million each in fiscal year 2021 and 2020. Certain Commodore (as defined in Note 22) manufacturing facilities participate in the IAM National Pension Fund, a multiemployer defined benefit plan. Participation in this plan is available to all hourly employees who are members of the participating collective bargaining unit. Beginning January 1, 2022, we contribute to the plan a specified amount per hour worked for each eligible employee. Benefits under this plan are based on a fixed monthly benefit rate per year of credited service. The risks of participating in this multiemployer plan differ from single-employer plans. The potential risks include, but are not limited to, the use of the Company's contributions to provide benefits to employees of other participating employers, the Company becoming obligated for other participating employers' unfunded obligations and, upon the Company's withdrawal from the plan, the Company being required to pay the plan an amount based on the underfunded status of the plan, referred to as a withdrawal liability. The Company's participation in multiemployer plans for the fiscal year ended April 2, 2022 is outlined in the table below, with the following information: • The Employer Identification Number is 51-6031295 and the three-digit plan number assigned to a plan by the Internal Revenue Service is 002. • The most recent Pension Protection Act Zone Status available is for plan years that ended in calendar years 2021 and 2020, based on information provided to the Company by the plan. A plan in the "red" zone has been determined to be in "critical status," based on criteria established under the Internal Revenue Code ("Code"), and is generally less than 65% funded. • The "RP Status Pending/Implemented" column indicates whether a Rehabilitation Plan ("RP") for plans in the "red" zone, as required by the Code, is pending or has been implemented by the plan as of the end of the plan year that ended in calendar year 2021. • The "Surcharge Imposed" column indicates whether the Company contribution rate for its fiscal year that ended on April 2, 2022 included an amount in addition to the contribution rate specified in the applicable collective bargaining agreement ("CBA"), as imposed by a plan in "critical status," in accordance with the requirements of the Code. Pension Protection Act Zone Status RP Status Pending / Implemented Contributions by the Company by fiscal year (in thousands) Expiration Date of CBAs Pension Fund 2021 2020 2022 2021 2020 Surcharge Imposed IAM National Pension Fund Red Red Implemented $ 312 $ — $ — Yes (1) |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Apr. 02, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions We have non-marketable equity investments in other distribution operations outside of Company-owned retail stores. In the ordinary course of business, we sell homes and lend to certain of these operations through our commercial lending programs. For the years ended April 2, 2022 , April 3, 2021 and March 28, 2020, the total amount of sales to related parties was $58.1 million , $46.7 million and $51.0 million, respectively. As of April 2, 2022, receivables from related parties included $3.3 million of accounts receivable and $2.6 million of commercial loans outstanding. As of April 3, 2021, receivables from related parties included $4.7 million of accounts receivable and $9.5 million of commercial loans outstanding. |
Acquisitions
Acquisitions | 12 Months Ended |
Apr. 02, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions | Acquisitions Craftsman Acquisition In fiscal year 2017, we purchased a 50% ownership interest in Craftsman for $1.3 million to expand our retail presence in Nevada. At that time, we concluded that we were not considered to be the primary beneficiary and therefore did not consolidate the Entities. Since the date of acquisition, we previously had recorded a non-marketable equity investment for the ownership, with changes to that investment for earnings and distributions from the Entities. On July 4, 2021, we obtained an additional 20% ownership interest in the Entities utilizing the same pre-tax income multiple as the 2017 purchase. As we now have a controlling interest, we have consolidated the Entities and remeasured the Entities' assets and liabilities to fair value, including our previous equity investment of $2.9 million in the Entities. As a result of the remeasurement, we recorded a gain of $3.3 million in Other income, net in the Consolidated Statements of Comprehensive Income. The purchase price on July 4, 2021 for 20% ownership was $2.5 million, valuing the Entities at $12.4 million. The following table summarizes the fair values of the assets acquired and liabilities assumed at the acquisition date (in thousands). July 4, Cash $ 6,466 Accounts receivable 577 Inventories 7,146 Property, plant and equipment 205 Other current assets 416 Indefinite lived intangible assets (1) 2,980 Total identifiable assets acquired 17,790 Accounts payable and accrued liabilities 10,028 Net identifiable assets acquired 7,762 Goodwill (2) 4,595 Net assets acquired $ 12,357 (1) Includes $3.0 million assigned to trademarks and trade names, which are considered indefinite lived intangible assets and are not subject to amortization. (2) Attributable to the Factory-built housing segment, all of which will be deductible for income tax purposes. We recorded a Redeemable noncontrolling interest for the remaining 30% ownership. As 20% of this is considered mandatorily redeemable per the Craftsman Purchase Agreement, $2.5 million for the acquisition date fair value of this portion of the noncontrolling interest was recorded in the long-term liabilities section of the Consolidated Balance Sheet within Secured financings and other. As we are not currently obligated for the redemption of the remaining 10% ownership, $1.2 million for the acquisition date fair value of this portion of the noncontrolling interest is classified as a temporary equity mezzanine item between liabilities and stockholders' equity in the Consolidated Balance Sheets as Redeemable noncontrolling interest. Since the acquisition date, Craftsman contributed Net revenue and Net income of $13.8 million and $0.4 million, respectively, for the fiscal year ended April 2, 2022. Cost of sales from the Craftsman acquisition included required purchase accounting adjustments whereby home product inventory is recorded at fair value upon acquisition. Commodore Acquisition On September 24, 2021, we purchased certain manufactured housing assets and assumed certain liabilities of The Commodore Corporation ("Commodore"), including its six manufacturing facilities and two wholly-owned retail locations. In addition to manufacturing, Commodore also participates in commercial lending operations with its dealers. The transaction was accounted for as a business combination and the results of operations have been included in the accompanying Consolidated Financial Statements since the date of acquisition. The acquisition of Commodore brings beneficial geographic addition to our footprint with strong operations in the Northeast/Midwest/Mid-Atlantic markets and provides a platform for future growth, with the potential for cost and revenue synergies. The acquisition-date fair value of the total consideration was $146.2 million , subject to future adjustments upon the finalization of closing financial statements. During the period, certain adjustments were made to these closing financial statements, which resulted in changes to the initial purchase price allocation and impacted the amount of goodwill recognized. We have expensed $2.7 million in acquisition related transaction costs in Selling, general and administrative expenses i n the Consolidated Statements of Comprehensive Income , and have not 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 time between the acquisition date and reporting date and will be finalized upon completion of the analysis of the fair values of Commodore's acquired commercial loans, intangible assets and resulting goodwill and deferred taxes. We expect to finalize these amounts as soon as possible but no later than one year from the acquisition date. September 24, Cash $ 619 Accounts receivable 20,930 Commercial loans 30,922 Inventories 31,787 Property, plant and equipment (1) 59,106 Other current assets 534 Intangible assets (2) 12,500 Total identifiable assets acquired 156,398 Accounts payable and accrued liabilities 31,536 Net identifiable assets acquired 124,862 Goodwill (3) 21,308 Net assets acquired $ 146,170 (1) Includes assets acquired under finance leases. See Note 9 for additional information. (2) Includes $7.2 million assigned to customer-related intangibles, subject to a useful life of 11 years amortized on a straight-line basis; $3.8 million assigned to trademarks and trade names, which are considered indefinite lived intangible assets and are not subject to amortization; $1.0 million for acquired sales order backlogs that will be amortized over the period to produce the associated backlog; and $0.5 million for a covenant not to compete from the sellers, amortized on a straight-line basis over the term of 5 years. (3) Attributable to the Factory-built housing segment, all of which will be deductible for income tax purposes. Since the acquisition date, Commodore contributed Net revenue and Net income of $166.7 million and $6.6 million, respectively, for the fiscal year ended April 2, 2022. Cost of sales from the Commodore acquisition included required purchase accounting adjustments whereby home product inventory is recorded at fair value upon acquisition. Pro Forma Impact of Acquisitions (Unaudited) . The following table presents supplemental pro forma information as if the above acquisitions occurred on March 29, 2020 (in thousands, except per share data): Year Ended April 2, April 3, Net revenue $ 1,793,247 $ 1,369,244 Net income attributable to Cavco common stockholders 199,820 84,448 Diluted net income per share 21.57 9.09 |
Business Segment Information
Business Segment Information | 12 Months Ended |
Apr. 02, 2022 | |
Segment Reporting [Abstract] | |
Business Segment Information | Business Segment Information We operate principally in two segments: (1) factory-built housing, which includes wholesale and retail factory-built housing operations and (2) financial services, which includes manufactured housing consumer finance and insurance. The following tables provide selected financial data by segment (dollars in thousands): Fiscal Year Ended April 2, April 3, March 28, Net revenue: Factory-built housing $ 1,556,283 $ 1,037,889 $ 999,340 Financial services 70,875 70,162 62,434 $ 1,627,158 $ 1,108,051 $ 1,061,774 Net revenue for financial services consists of: Finance $ 23,004 $ 24,195 $ 24,894 Insurance 47,871 45,967 37,540 $ 70,875 $ 70,162 $ 62,434 Income before income taxes: Factory-built housing $ 197,282 $ 78,937 $ 78,531 Financial services 14,707 17,975 14,448 $ 211,989 $ 96,912 $ 92,979 Depreciation: Factory-built housing $ 9,451 $ 5,450 $ 5,120 Financial services 182 127 57 $ 9,633 $ 5,577 $ 5,177 Amortization: Factory-built housing $ 1,270 $ 560 $ 419 Financial services 114 187 187 $ 1,384 $ 747 $ 606 Income tax expense: Factory-built housing $ 10,853 $ 16,204 $ 14,574 Financial services 3,394 4,062 3,339 $ 14,247 $ 20,266 $ 17,913 Capital expenditures: Factory-built housing $ 18,574 $ 25,465 $ 13,211 Financial services 79 72 1,129 $ 18,653 $ 25,537 $ 14,340 April 2, April 3, Total assets: Factory-built housing $ 929,535 $ 711,579 Financial services 225,437 240,254 $ 1,154,972 $ 951,833 April 2, April 3, March 28, Gross margin %: Consolidated 25.1 % 21.6 % 21.7 % Factory-built housing 23.9 % 19.2 % 19.5 % Financial services 51.5 % 56.1 % 56.5 % |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Apr. 02, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Principles of Consolidation | Principles of Consolidation. These Consolidated Financial Statements include the accounts of Cavco Industries, Inc. and its consolidated subsidiaries (collectively, "we," "us," "our," the "Company" or "Cavco"). All significant intercompany transactions and balances have been eliminated in consolidation. We have evaluated subsequent events after the balance sheet date of April 2, 2022, through the date of the filing of this report with the Securities and Exchange Commission (the "SEC") and there were no disclosable subsequent events . In addition, references throughout to numbered "Notes" refer to these Notes to Consolidated Financial Statements, unless otherwise stated. |
Nature of Operations | Nature of Operations. Headquartered in Phoenix, Arizona, we design and produce factory-built housing products primarily distributed through a network of independent distributors located throughout the continental United States, as well as through Company-owned retail stores which offer our homes to retail customers. Our financial services segment is comprised of: a mortgage subsidiary, CountryPlace Acceptance Corp. ("CountryPlace"), which is an approved Federal National Mortgage Association ("Fannie Mae") and Federal Home Loan Mortgage Corporation ("Freddie Mac") seller/servicer and a Government National Mortgage Association ("Ginnie Mae" or "GNMA") mortgage-backed securities issuer that offers conforming mortgages, non-conforming mortgages and home-only loans to purchasers of factory-built homes; and an insurance subsidiary, Standard Casualty Co. ("Standard Casualty"), which provides property and casualty insurance primarily to owners of manufactured homes. |
Fiscal Year | Fiscal 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 . Th e current fiscal year ended on April 2, 2022 and includes 52 weeks, whereas fiscal year 2021 consisted of 53 weeks and fiscal year 2020 consisted of 52 weeks. |
Accounting Estimate | Accounting Estimates. Preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Due to uncertainties, a ctual results could differ from the estimates and assumptions used in preparation of the consolidated financial statements. |
Revenue Recognition | Factory-Built Housing Revenue Recognition - Wholesale . Revenue from homes sold to independent distributors, builders, communities and developers is generally recognized when the home is shipped, at which time title passes and it is probable that substantially all of the consideration will be received. Homes sold to independent distributors are generally either paid upon shipment or floor plan financed by the independent distributor through standard industry financing arrangements, which can include repurchase agreements. Manufacturing sales financed under floor plan arrangements that include repurchase agreements are reduced by a provision for estimated repurchase obligations (see Note 16). Some of our independent distributors operate multiple sales outlets. No independent distributor accounted for 10% or more of factory-built housing revenue during any fiscal year within the three-year period ended April 2, 2022. Factory-Built Housing Revenue Recognition - Retail . Sales by Company-owned retail stores are generally recognized when the customer has entered into a legally binding sales contract, the home is delivered and permanently located at the customer's site, the home is accepted by the customer, title has transferred and funding is probable. Financial Services Revenue Recognition. Premium amounts collected on policies issued and assumed by Standard Casualty are amortized on a straight-line basis into Net revenue over the life of the policy. Premiums earned are net of reinsurance ceded. Policy acquisition costs are also amortized in Cost of sales over the life of the policy. Insurance agency commissions received from third-party insurance companies are recognized as revenue upon execution of the insurance policy as we have no future or ongoing obligation with respect to such policies. Interest income on consumer loans receivables is recognized in Net revenue. Upon acquisition of the previously securitized loan portfolios (the "Acquisition Date"), we evaluated the existing consumer loans receivable held for investment to determine whether there was evidence of deterioration of credit quality and the probability that we would be able to collect all amounts due according to the loans' contractual terms. We also considered expected prepayments and estimated the amount and timing of undiscounted principal, interest and other cash flows. We determined the excess of the loan pool's scheduled contractual principal and interest payments over the undiscounted expected cash flows as of the Acquisition Date as an amount that is not 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 was accreted into interest income over the remaining life of the loans (referred to as accretable yield). We adopted Financial Accounting Standards Board ("FASB") Accounting Standards Update ("ASU") 2016-13, Financial Instruments - Credit Losses (Topic 326) : Measurement of Credit Losses on Financial Instruments ("ASU 2016-13") on March 29, 2020. Upon adoption, we determined that $1.7 million of the existing purchase discount for such consumer loans was related to credit factors and was reclassified to the allowance for loan losses upon adoption. The remaining discount on the acquired consumer loans was determined to be related to non-credit factors and will continue to be accreted into interest income over the life of the loans (see Note 6). For loans originated and held for sale, loan origination fees and gains or losses on sales are recognized in Net revenue upon title transfer of the loans. We provide third-party servicing of mortgages and earn s ervicing fees each month based on the aggregate outstanding balances. Servicing fees are recognized in Net revenue when earned. |
Cash and Cash Equivalents | Cash and Cash Equivalents . Highly liquid investments with insignificant interest rate risk and original maturities of three months or less, when purchased, are classified as cash equivalents. Our cash equivalents are primarily comprised of U.S. Treasury and other money market funds and other depository accounts, some of which are in excess of Federal Deposit Insurance Corporation insured limits. |
Restricted Cash | Restricted Cash . Restricted cash primarily represents cash related to CountryPlace customer payments to be remitted to third parties and deposits received from retail customers required to be held in trust accounts. These funds cannot be accessed for general operating purposes (see Note 3). |
Accounts Receivable | Accounts Receivable. We extend competitive credit terms on a customer-by-customer basis in the normal course of business, subject to normal industry risk, with many requiring a cash deposit with a sales order or payment upon delivery of a home. We review accounts receivable for estimated losses that may result from customers' inability to pay. As of April 2, 2022 and April 3, 2021, there were no allowances for doubtful accounts. |
Investments | Investments. Management determines the appropriate classification of its investment securities at the time of purchase. Our investments include marketable debt and equity securities and non-marketable equity investments. Changes in unrealized net holding gains and losses on equity securities are reported in earnings. Unrealized net holding gains and losses on available-for-sale debt securities are recorded in Accumulated other comprehensive income (loss) ("AOCI") in the Consolidated Balance Sheets. Realized gains and losses from the sale of securities are determined using the specific identification method (see Note 4). As discussed above, we adopted ASU 2016-13 on March 29, 2020. Under this standard, declines in the fair value of individual available-for-sale debt securities that are related to credit losses are recorded as a valuation allowance against the investment balance, with the loss recorded in earnings. As of April 2, 2022, we have determined that all losses on available-for-sale debt securities were from market factors, and therefore we had no valuation allowance. |
Consumer Loans Receivables | Consumer Loans Receivable. Consumer loans receivable consist primarily of manufactured housing loans originated by CountryPlace (held for investment or held for sale) and construction advances on mortgages. Loans held for investment consist of loan contracts collateralized by the borrowers' homes and, in some instances, related land. Construction loans in progress are stated at the aggregate amount of cumulative funded advances. Loans held for sale are loans that, at the time of origination, are originated with the intent to resell to investors with which the Company has pre-existing purchase agreements, such as Fannie Mae and Freddie Mac, or to sell as part of a Ginnie Mae insured pool of loans and consist of loan contracts collateralized by single-family residential mortgages. Loans held for sale are stated at the lower of cost or market on an aggregate basis. Combined land and home mortgages are further disaggregated by the type of loan documentation: those conforming to the requirements of Government-Sponsored Enterprises ("GSEs") and those that are non-conforming. In most instances, our mortgages are secured by a first-lien position and are provided for the consumer purchase of a home. Consumer loans held for investment include home-only personal property loans originated under our home-only lending programs. Accordingly, we classify our loans receivable as follows: conforming mortgages, non-conforming mortgages and home-only loans. In measuring credit quality within each segment and class, we use commercially available credit scores (such as FICO®). At the time of each loan's origination, we obtain credit scores from each of the three primary credit bureaus, if available. To evaluate credit quality of individual loans, we use the mid-point of the available credit scores or, if only two scores are available, we use the lower of the two. We do not update credit bureau scores after the time of origination. |
Commercial Loans Receivable | Commercial Loans Receivable. Our commercial loans receivable balance consists of amounts loaned under commercial loan programs for the benefit of our independent distributors and community operators' home purchasing needs. Under the terms of certain programs, we have entered into direct commercial loan arrangements with independent distributors and community operators wherein we provide funds to purchase home inventory or homes for placement in communities. Interest income on commercial loans receivable is recognized in Other income, net in the Consolidated Statements of Comprehensive Income on an accrual basis. |
Allowance for Loan Losses | Allowance for Loan Losses. ASU 2016-13 requires a forward-looking impairment model based on expected losses rather than incurred losses. The primary portion of the allowance for loan losses reflects our judgment of the incurred loss exposure on our consumer loans receivable. As of April 2, 2022, we had an allowance for loan losses of $2.1 million . Our allowance for loan losses as of April 3, 2021 was $3.2 million (see Note 6). Another portion of the allowance for loan losses relates to our commercial loans receivables as of the end of the reporting period. We have historically been able to resell repossessed homes, thereby mitigating loss exposure. If a default occurs and collateral is lost, we are exposed to loss of the full value of the home loan. To determine the appropriate level of the allowance for loan loss, we collectively evaluate loans based on their terms and duration. In addition to the allowance calculated under ASU 2016-13, if we determine that it is probable that a borrower will default, a specific reserve is determined and recorded within the estimated allowance for loan losses. We recorded allowance for loan losses of $1.0 million and $816,000 at April 2, 2022 and April 3, 2021, respectively, related to commercial loans receivable (see Note 7). |
Inventories | Inventories. Raw material inventories are valued at the lower of cost or market, using the first in, first out method. Finished goods and work-in-process inventories are valued at the lower of cost or market, using the specific identification method. |
Property, Plant and Equipment | Property, Plant and Equipment. Property, plant and equipment are carried at cost. Depreciation is calculated using the straight-line method over the estimated useful life of each asset. Estimated useful lives for significant classes of assets are as follows: buildings and improvements, 10 to 39 years; and machinery and equipment, 3 to 25 years. Repairs and maintenance charges are expensed as incurred. We sell miscellaneous property, plant and equipment in the normal course of business. |
Asset Impairment | Asset Impairment . We periodically evaluate the carrying value of long-lived assets to be held and used and held for sale for impairment when events and circumstances warrant such a review. The carrying value of a long-lived asset is considered impaired when the anticipated undiscounted cash flow from such asset is less than its carrying value. In that event, a loss is recognized based on the amount by which the carrying value exceeds the fair value of the long-lived asset group. Fair value is determined primarily using the anticipated cash flows discounted at a rate commensurate with the risk involved. Losses on long-lived assets to be disposed of are primarily determined based on independent appraisals and preliminary or definitive contractual arrangements less costs to dispose. There were no impairment losses recognized in fiscal years 2022, 2021 or 2020 . |
Goodwill and Other Intangibles | Goodwill and Other Intangibles. We account for business combinations using the acquisition method of accounting, which allocates the fair value of the purchase consideration to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values. In the fair value evaluation of intangible assets acquired, there are significant estimates and assumptions, including forecasts of future cash flows, pre-tax income and revenue growth rates, as well as the selection of the royalty rates and discount rates. The excess of the purchase consideration over the fair values of these identifiable assets and liabilities is recorded as goodwill. We account for goodwill and other intangible assets in accordance with the provisions of FASB Accounting Standards Codification ("ASC") 350, Intangibles—Goodwill and Other . As such, we test goodwill annually for impairment. The Company has two reporting segments: factory-built housing and financial services. As of April 2, 2022, all of our goodwill is attributable to the factory-built housing reporting segment. Certain intangibles are considered indefinite-lived and others are finite-lived and are amortized over their useful lives. Finite-lived intangibles are amortized over 3 to 15 years on a straight-line basis and are reviewed for possible impairment whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable. Indefinite-lived intangible assets are assessed annually for impairment first by making a qualitative assessment, and if necessary, performing a quantitative assessment and recording an impairment charge if the fair value of the asset is less than its carrying amount. We performed our annual goodwill impairment analysis as of April 2, 2022, and the analysis determined that the fair value of the reporting unit was greater than the carrying value. There was no impairment recognized during fiscal years 2022, 2021 or 2020. |
Warranties | Warranties. We provide retail home buyers, builders or developers with a one year warranty for manufacturing defects from the date of sale to the retail customer. Nonstructural components of a cosmetic nature are warranted for 120 days, except in specific cases where state laws require longer warranty terms. Estimated warranty costs are accrued in Cost of sales at the time of sale. The warranty provision and reserves are based on estimates of the amounts necessary to settle existing and future claims on homes sold as of the balance sheet date. Factors used to calculate the warranty obligation are the estimated amount of homes still under warranty including homes in distributor inventories, homes purchased by consumers still within the one year warranty period, the timing in which work orders are completed and the historical average costs incurred to service a home. |
Revenue Recognition - rebates and freight | Volume Rebates . Certain distributors, builders and developers can qualify for cash rebates generally based on the level of sales attained during a twelve-month period on specified products. Volume rebates are accrued at the time of sale and are recorded as a reduction of Net revenue. Freight. Substantially all freight costs are recovered from our distributors and are included in Net revenue. Freight charges of $41.5 million, $29.3 million and $30.9 million were recognized in fiscal years 2022, 2021 and 2020, respectively. |
Reserve for Repurchase Commitment | Reserve for Repurchase Commitment. We are contingently liable under terms of repurchase agreements with the financial institutions that provide inventory financing to certain distributors of our products. These arrangements, which are customary in the industry, provide the lender a guarantee that we will repurchase our products in the event of default by the distributor. Our obligation under these repurchase agreements ceases upon the purchase of the home by the retail customer. The risk of loss under these agreements is spread over numerous distributors and the repurchase price generally declines over the period of the agreement (generally 18 to 24 months), further reduced by the resale value of repurchased homes. We apply FASB ASC 460, Guarantees ("ASC 460") to account for our liability for repurchase commitments. Following the inception of the commitment, the recorded reserve is reduced over the repurchase period in conjunction with applicable curtailment arrangements and is eliminated once the distributor sells the home. Changes in the reserve are recorded as an adjustment to Net revenue. See Note 16 for further discussion. |
Reserve for Property Casualty Insurance Claims and Claims Expense | Reserve for Property Casualty Insurance Claims and Claims Expense. Standard Casualty establishes reserves for claims and claims expense on reported and unreported claims of insured losses. Our reserve process takes into account known facts and interpretations of circumstances and factors, including experience with similar cases, actual claims paid, historical trends involving claim payment patterns and pending levels of unpaid claims, loss management programs, product mix, contractual terms, changes in law and regulation, judicial decisions and economic conditions. In the normal course of business, we may also supplement our claims processes by utilizing third party adjusters, appraisers, engineers, inspectors and other professionals and information sources to assess and settle catastrophe and non-catastrophe related claims. The effects of inflation are implicitly considered in the reserving process. The applicable reserve balance was $8.1 million and $7.5 million as of April 2, 2022 and April 3, 2021, respectively, of which $3.8 million and $3.7 million related to incurred but not reported ("IBNR") losses, respectively. |
Insurance | Insurance. We are self-insured for a significant portion of our general and products liability, auto liability, health, property and workers' compensation liability coverage. Insurance is maintained for catastrophic exposures and those risks required to be insured by law. Estimated self-insurance costs are accrued for incurred claims and estimated IBNR losses. A reserve for products liability is actuarially determined and reflected in Accrued expenses and other current liabilities in the accompanying Consolidated Balance Sheets. The determination of claims and expenses and the appropriateness of the related liabilities are regularly reviewed and updated. |
Advertising | Advertising. Advertising costs are expensed as incurred and were $1.4 million in fiscal year 2022, $807,000 in fiscal year 2021 and $900,000 in fiscal year 2020. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments. Our financial instruments consist of cash and cash equivalents, restricted cash, accounts receivable, investments, consumer loans receivable, commercial loans receivable, accounts payable, certain accrued expenses and other current liabilities and secured credit facilities and other financings. In accordance with FASB 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 carrying amount of cash and cash equivalents approximates fair value because their maturity is less than three months. The carrying amounts of restricted cash, accounts receivable, accounts payable and certain accrued expenses and other current liabilities approximate fair value due to the short-term maturity of the amounts. See Note 19 for the fair values of our other financial instruments and the inputs used. |
Income Taxes | Income Taxes. We account for income taxes pursuant to FASB ASC 740, Income Taxes ("ASC 740") and provide for income taxes utilizing the asset and liability approach. Under this approach, deferred taxes represent the future tax consequences expected to occur when the reported amounts of assets and liabilities are recovered or paid. 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. Deferred taxes result from differences between the financial and tax bases of the Company's assets and liabilities and are adjusted for changes in tax rates and tax laws when changes are enacted. |
Other Income, net | Other Income, net. Other income primarily consists of realized and unrealized gains and losses on corporate investments, interest income related to commercial loan receivables and earned on cash balances, gains and losses on the sale of property, plant and equipment or assets held for sale and impairment of such assets, if necessary. |
Stock-Based Compensation | Stock-Based Compensation . Stock-based compensation is measured based on the fair value of the award on the date of grant and the corresponding expense is recognized over the period during which an employee is required to provide service in exchange for the award. Stock-based compensation expense is classified in the same line item of our Consolidated Statements of Comprehensive Income as other payroll-related expenses specific to the employee. Compensation expense related to service-based restricted stock units ("RSUs") is recognized on a straight-line basis over the requisite service period for the entire award. Compensation expense related to performance-based RSUs is recognized on a straight-line basis over the requisite service period for each separately vesting portion of the award as if the award was, in-substance, multiple awards (i.e., a graded vesting basis). We use historical data to estimate pre-vesting forfeitures and record stock-based compensation cost, using the straight-line attribution method, only for those awards that are expected to vest. Compensation expense related to performance-based awards is based on management's estimate of the probability of the performance criteria being satisfied, adjusted at each balance sheet date (see Note 17). |
Reedemable noncontrolling interest | Redeemable Noncontrolling Interest. We have a 70% interest in Craftsman Homes, LLC and Craftsman Homes Development, LLC (collectively known as "Craftsman" or the "Entities"). See Note 22 for a description of the transaction. As a result, we consolidate the Entities while recognizing a noncontrolling interest for the remaining third party ("Craftsman Seller") ownership. An additional 20% of the remaining equity of Craftsman is to be purchased on December 31, 2023 by us for cash. As mandatory redemption of this ownership interest is required, the fair value of this portion of the noncontrolling interest is recorded in the long-term liabilities section of the Consolidated Balance Sheet within Secured financings and other. In each reporting period hereafter, until purchased by the Company, the mandatorily redeemable noncontrolling interest is adjusted to its current redemption value, based on a predetermined formula. Adjustments in the redemption value to the mandatorily redeemable noncontrolling interest are recorded to Interest expense. The Craftsman Seller can require us to purchase their remaining 10% ownership ("Put Right"), after December 31, 2023, for an amount specified in the Craftsman Purchase Agreement that is designed to approximate fair value. Likewise, we can require the Craftsman Seller to sell us their remaining 10% ownership ("Call Right") based on the same timing as described above for the Put Right. As redemption of this remaining ownership is not a current obligation, the fair value of this portion of the noncontrolling interest is classified as a temporary equity mezzanine item between liabilities and stockholders' equity in the Consolidated Balance Sheets as Redeemable noncontrolling interest. The amount of income attributable to this noncontrolling interest is included on the face of the Consolidated Statements of Comprehensive Income. |
Stockholders' Equity | Accumulated Other Comprehensive Income (loss). AOCI is comprised of unrealized gains and losses on available-for-sale debt securities (see Note 4), and is presented net of tax. Accumulated unrealized loss on available-for-sale debt securities at the end of fiscal year 2022 was $510,000 before tax, with an associated tax amount of $107,000, resulting in a net unrealized loss of $403,000. Unrealized gain on available-for-sale debt securities for fiscal year 2021 was $123,000, with an associated tax amount of $26,000, for a net unrealized gain of $97,000. Treasury Stock. We record repurchases of our common stock as treasury stock at cost. As we do not have a formal retirement plan for the shares acquired, and the ultimate disposition has not yet been decided, we show the cost of the acquired stock separately as a deduction from equity. |
Net Income Per Share | Net Income 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 (see Note 18). |
Recently Issued or Adopted Accounting Pronouncements | Recently Issued or Adopted Accounting Pronouncements. From time to time, new accounting pronouncements are issued by the FASB and other regulatory bodies that are adopted 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. |
Leases (Policies)
Leases (Policies) | 12 Months Ended |
Apr. 02, 2022 | |
Leases [Abstract] | |
Leases | We lease certain production and retail locations, office space and equipment. We determine 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 in the Consolidated Balance Sheets. 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 our 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 we are reasonably certain to exercise. Certain of our lease agreements include rental payments adjusted periodically for inflation. These lease agreements do not contain any material residual value guarantees or material restrictive covenants. Right Of Use ("ROU") assets represent the right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments in accordance with 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 our leases do not provide a readily determinable implicit interest rate, we estimate an incremental borrowing rate. In determining the estimated incremental borrowing rate, we consider 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 we will exercise such options. |
Commitment and Contingencies (P
Commitment and Contingencies (Policies) | 12 Months Ended |
Apr. 02, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Repurchase Contingencies | Repurchase Contingencies . We are contingently liable under terms of repurchase agreements with financial institutions providing inventory financing to independent distributors of our 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 we may be obligated to pay generally declines over the period of the agreement (generally 18 to 24 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 liable under such agreements approximated $141.0 million and $74.2 million at April 2, 2022 and April 3, 2021, respectively, without reduction for the resale value of the homes. We had a reserve for repurchase commitments of $3.6 million and $2.3 million at April 2, 2022 and April 3, 2021, respectively. |
Representations and Warranties of Mortgages Sold | Representations and Warranties of Mortgages Sold . We sell loans to GSEs and whole-loan purchasers and finance certain loans with long-term credit facilities secured by the respective loans. In connection with these activities, we provide to GSEs and 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 transaction, including compliance with underwriting standards or loan criteria established by the buyer, and our 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, we may be required to repurchase the loan or to indemnif y 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. We manage the risk of repurchase through underwriting and quality assurance practices and by servicing the mortgage loans to investor standards. We maintain a reserve for these contingent repurchase and indemnification obligations. This reserve of $866,000 as of April 2, 2022 and $1.2 million as of April 3, 2021, included in Accrued expenses and other current liabilities, reflects management's estimate of probable loss. We consider 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. There were no claim requests that resulted in the repurchase of a loan during the year ended April 2, 2022. In addition, we are subject to minimum net worth requirements and was in compliance for the year ended April 2, 2022. |
Interest Rate Lock and Forward Sales Commitments | Interest Rate Lock Commitments . In originating loans for sale, we issue 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 us 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 lock commitments generally range between 30 and 180 days; however, borrowers are not obligated to close the related loans. As a result, we are 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 April 2, 2022, we had outstanding IRLCs with a notional amount of $51.7 million, which are recorded at fair value in accordance with FASB 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, if in a net favorable position, or Accrued expenses and other current liabilities, if in a net unfavorable position, 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 fiscal year 2022, we recognized a non-cash gain of $1,000 on outstanding IRLCs. During fiscal years 2021 and 2020, we recognized a non-cash loss of $208,000 and non-cash gain of $153,000, respectively, on outstanding IRLCs. Forward Sales Commitments . We manage the risk profiles of a portion of the outstanding IRLCs and mortgage loans held for sale by entering into forward sales of mortgage-backed securities and whole loan sale commitments (collectively "Commitments"). As of April 2, 2022, we had $16.7 million in outstanding 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 Commitments are based on quoted market values and are recorded within Prepaid expenses and other current assets in the Consolidated Balance Sheets. During the year ended April 2, 2022, we recognized a non-cash loss of $92,000 on Commitments. During the fiscal years ended April 3, 2021 and March 28, 2020, we recognized a non-cash gain of $1.4 million and a non-cash loss of $951,000, r espectively, on Commitments. |
Fair Value Measurements (Polici
Fair Value Measurements (Policies) | 12 Months Ended |
Apr. 02, 2022 | |
Fair Value Disclosures [Abstract] | |
Mortgage Servicing Rights | 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 recorded at fair value in Prepaid expenses and other current assets in the Consolidated Balance Sheets based on the present value of the expected future cash flows related to servicing these loans. |
Revenue from Contracts with C_2
Revenue from Contracts with Customers Disaggregation of Revenue (Tables) | 12 Months Ended |
Apr. 02, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | Disaggregation of Revenue . The following table summarizes customer contract revenues disaggregated by reportable segment and source (in thousands). All revenue from customers is recognized at a point in time, either when the customer takes delivery or when a third-party insurance contract is executed, as more fully discussed above. April 2, April 3, March 28, Factory-built housing U.S. Housing and Urban Development code homes $ 1,335,904 $ 842,515 $ 813,074 Modular homes 117,817 91,896 84,498 Park model RVs 42,219 46,862 46,427 Other 60,343 56,616 55,341 1,556,283 1,037,889 999,340 Financial services Insurance agency commissions received from third-party insurance companies 4,055 3,102 3,352 All other sources 66,820 67,060 59,082 70,875 70,162 62,434 $ 1,627,158 $ 1,108,051 $ 1,061,774 |
Restricted Cash (Tables)
Restricted Cash (Tables) | 12 Months Ended |
Apr. 02, 2022 | |
Cash and Cash Equivalents [Abstract] | |
Summary of restricted cash | Restricted cash consisted of the following (in thousands): April 2, April 3, Cash related to CountryPlace customer payments to be remitted to third parties $ 13,857 $ 16,049 Other restricted cash 1,327 979 15,184 17,028 Less current portion (14,849) (16,693) $ 335 $ 335 |
Reconciliation to SOCF | The following table provides a reconciliation of Cash and cash equivalents and Restricted cash reported within the Consolidated Balance Sheets to the combined amounts shown in the Consolidated Statements of Cash Flows (in thousands): April 2, April 3, March 28, Cash and cash equivalents $ 244,150 $ 322,279 $ 241,826 Restricted cash 15,184 17,028 13,781 $ 259,334 $ 339,307 $ 255,607 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Apr. 02, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Investments | Investments consisted of the following (in thousands): April 2, April 3, Available-for-sale debt securities $ 17,760 $ 14,946 Marketable equity securities 16,780 17,600 Non-marketable equity investments 20,479 21,960 55,019 54,506 Less short-term investments (20,086) (19,496) $ 34,933 $ 35,010 |
Available-for-sale debt securities by investment category | The amortized cost and fair value of our investments in available-for-sale debt securities, by security type are shown in the table below (in thousands): April 2, 2022 Amortized Gross Gross Fair Residential mortgage-backed securities $ 1,668 $ 2 $ (57) $ 1,613 State and political subdivision debt securities 10,100 38 (232) 9,906 Corporate debt securities 6,502 1 (262) 6,241 $ 18,270 $ 41 $ (551) $ 17,760 April 3, 2021 Amortized Gross Gross Fair Residential mortgage-backed securities $ 2,787 $ 30 $ (13) $ 2,804 State and political subdivision debt securities 7,239 125 (19) 7,345 Corporate debt securities 4,797 11 (11) 4,797 $ 14,823 $ 166 $ (43) $ 14,946 |
Debt Securities, Available-for-Sale, Unrealized Loss Position, Fair Value | 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): April 2, 2022 Less than 12 Months 12 Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized Residential mortgage-backed securities $ 1,048 $ (45) $ 289 $ (12) $ 1,337 $ (57) State and political subdivision debt securities 3,884 (164) 1,246 (68) 5,130 (232) Corporate debt securities 5,215 (231) 598 (31) 5,813 (262) $ 10,147 $ (440) $ 2,133 $ (111) $ 12,280 $ (551) April 3, 2021 Less than 12 Months 12 Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized Residential mortgage-backed securities $ 927 $ (6) $ 450 $ (7) $ 1,377 $ (13) State and political subdivision debt securities 3,013 (19) — — 3,013 (19) Corporate debt securities 2,153 (10) 249 (1) 2,402 (11) $ 6,093 $ (35) $ 699 $ (8) $ 6,792 $ (43) |
Contractual Maturity of Investment Securities | The amortized cost and fair value of our 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. April 2, 2022 Amortized Fair Due in less than one year $ 3,300 $ 3,302 Due after one year through five years 11,394 10,901 Due after five years through ten years 1,261 1,281 Due after ten years 647 663 Mortgage-backed securities 1,668 1,613 $ 18,270 $ 17,760 |
Gain (Loss) on Securities | Net investment gains and losses on marketable equity securities for fiscal years 2022, 2021 and 2020 were as follows (in thousands): Year Ended April 2, April 3, March 28, 2020 Marketable equity securities: Net gain (loss) recognized during the period $ 2,160 $ 8,515 $ (2,264) Less: Net (gains) losses recognized on securities sold during the period (551) (2,191) 232 Unrealized gains (losses) recognized during the period on securities still held $ 1,609 $ 6,324 $ (2,032) |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Apr. 02, 2022 | |
Inventory Disclosure [Abstract] | |
Summary of inventories | Inventories consisted of the following (in thousands): April 2, April 3, Raw materials $ 95,929 $ 54,336 Work in process 30,638 19,149 Finished goods 117,404 57,749 $ 243,971 $ 131,234 |
Consumer Loans Receivable (Tabl
Consumer Loans Receivable (Tables) | 12 Months Ended |
Apr. 02, 2022 | |
Receivables [Abstract] | |
Consumer Loans Receivable | The following table summarizes consumer loans receivable (in thousands): April 2, April 3, Loans held for investment, previously securitized $ 26,014 $ 31,949 Loans held for investment 14,771 18,690 Loans held for sale 8,500 15,587 Construction advances 3,547 13,801 52,832 80,027 Deferred financing fees and other, net (833) (2,041) Allowance for loan losses (2,115) (3,188) 49,884 74,798 Less current portion (20,639) (37,690) $ 29,245 $ 37,108 |
Allowance for loan loss | The following table represents changes in the estimated allowance for loan losses, including related additions and deductions to the allowance for loan losses (in thousands): April 2, April 3, Allowance for loan losses at beginning of period $ 3,188 $ 1,767 Impact of adoption of ASU 2016-13 — 2,276 Change in estimated loan losses, net (541) (655) Charge-offs (532) (201) Recoveries — 1 Allowance for loan losses at end of period $ 2,115 $ 3,188 |
Consumer Loans Held for Investment Characteristics | The consumer loans held for investment had the following characteristics: April 2, April 3, Weighted average contractual interest rate 8.32 % 8.26 % Weighted average effective interest rate 9.21 % 9.34 % Weighted average months to maturity 151 162 |
Deliquency Status of Consumer Loans | The following table is a consolidated summary of the delinquency status of the outstanding amortized cost of consumer loans receivable (in thousands): April 2, April 3, Current $ 49,546 $ 76,378 31 to 60 days 1,202 508 61 to 90 days 41 21 91+ days 2,043 3,120 $ 52,832 $ 80,027 |
Gross Consumer Loans Receivable by Credit Quality and Fiscal Year of Origination | The following table disaggregates gross consumer loans receivable by credit quality indicator and fiscal year of origination (in thousands): April 2, 2022 2022 2021 2020 2019 2018 Prior Total Prime- FICO score 680 and greater $ 8,155 $ 1,615 $ 2,371 $ 1,339 $ 853 $ 20,485 $ 34,818 Near Prime- FICO score 620-679 1,661 1,274 1,413 1,976 617 9,266 16,207 Sub-Prime- FICO score less than 620 45 20 52 — — 1,318 1,435 No FICO score — — — 26 — 346 372 $ 9,861 $ 2,909 $ 3,836 $ 3,341 $ 1,470 $ 31,415 $ 52,832 April 3, 2021 2021 2020 2019 2018 2017 Prior Total Prime- FICO score 680 and greater $ 18,250 $ 3,575 $ 1,718 $ 971 $ 1,959 $ 23,375 $ 49,848 Near Prime- FICO score 620-679 10,227 2,744 1,794 1,364 500 10,401 27,030 Sub-Prime- FICO score less than 620 348 53 — — 84 1,579 2,064 No FICO score 576 — 28 — — 481 1,085 $ 29,401 $ 6,372 $ 3,540 $ 2,335 $ 2,543 $ 35,836 $ 80,027 |
Geographic Concentration of Consumer Loans Receivable | Loan contracts secured by geographically concentrated collateral could experience higher rates of delinquencies, default and foreclosure losses than loan contracts secured by collateral that is more geographically dispersed. As of April 2, 2022, 39% of the outstanding principal balance of the consumer loans receivable portfolio was concentrated in Texas and 17% was concentrated in Florida. As of April 3, 2021, 35% of the outstanding principal balance of the consumer loans receivable portfolio was concentrated in Texas and 20% was concentrated in Florida. Other than Texas and Florida, no state had concentrations in excess of 10% of the principal balance of consumer loans receivable as of April 2, 2022 or April 3, 2021. |
Commercial Loans Receivables (T
Commercial Loans Receivables (Tables) | 12 Months Ended |
Apr. 02, 2022 | |
Receivables [Abstract] | |
Commercial Loans Receivables | Commercial loans receivable, net consisted of the following, by class of financing notes receivable (in thousands): April 2, April 3, Loans receivable $ 69,693 $ 45,377 Allowance for loan losses (1,011) (816) Deferred financing fees, net (116) (247) 68,566 44,314 Less current portion of commercial loans receivable (including from affiliates), net (32,644) (19,232) $ 35,922 $ 25,082 |
Commercial Loans Receivable Characteristics | The commercial loans receivable balance had the following characteristics: April 2, April 3, Weighted average contractual interest rate 6.4 % 6.4 % Weighted average months outstanding 9 11 |
Changes in the Allowance for Loan Losses on Commercial Loans Receivables | The following table represents changes in the e stimated allowance for loan losses, including related additions and deductions to the allowance for loan losses (in thousands): April 2, April 3, Balance at beginning of period $ 816 $ 393 Impact of adoption of ASU 2016-13 — 435 Purchase accounting additions 408 — Change in estimated loan losses, net (213) (12) Loans charged off, net of recoveries — — Balance at end of period $ 1,011 $ 816 |
Commercial Loans Receivables by Class and Internal Credit Quality Indicator | The following table disaggregates our commercial loans receivable by credit quality indicator and fiscal year of origination (in thousands): April 2, 2022 2022 2021 2020 2019 2018 Total Performing $ 52,592 $ 10,181 $ 4,031 $ 1,391 $ 1,498 $ 69,693 April 3, 2021 2021 2020 2019 2018 2017 Total Performing $ 30,627 $ 8,677 $ 3,206 $ 1,864 $ 1,003 $ 45,377 |
Geographic Concentration of Commercial Loans Receivables in Key States | As of April 2, 2022, 24.9% of our outstanding commercial loans receivable principal balance was concentrated in New York. As of April 3, 2021, 13.1% of the outstanding commercial loans receivable principal balance was concentrated in Arizona. No other state had concentrations in excess of 10% of the principal balance of the commercial loans receivable as of April 2, 2022 or April 3, 2021. |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Apr. 02, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment, net | Property, plant and equipment, net, consisted of the following (in thousands): April 2, April 3, Property, plant and equipment, at cost: Land $ 32,154 $ 28,314 Buildings and improvements 100,775 52,174 Machinery and equipment 48,638 32,528 Construction in progress 29,281 21,271 210,848 134,287 Accumulated depreciation (46,832) (37,493) $ 164,016 $ 96,794 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Apr. 02, 2022 | |
Leases [Abstract] | |
Lease, Cost | The following table provides information about the financial statement classification of our lease expenses reported within the Consolidated Statements of Comprehensive Income for the years ended April 2, 2022, April 3, 2021 and March 28, 2020 (in thousands): Year Ended Lease Expense Category Classification April 2, April 3, March 28, Operating lease expense (2) Cost of sales $ 1,160 $ 1,105 $ 834 Selling, general and administrative expenses 3,636 3,327 3,119 Finance lease expense: Amortization of leased assets Cost of sales 109 39 39 Interest on lease liabilities Interest expense 151 17 52 Total lease expense $ 5,056 $ 4,488 $ 4,044 (2) Excludes short-term and variable lease expenses, which are immaterial. Cash payments for operating and finance leases were as follows (in thousands): April 2, April 3, March 28, Operating leases $ 4,794 $ 4,164 $ 3,375 Finance leases 220 79 142 |
Operating lease liability maturities | The present value minimum payments for future fiscal years under non-cancelable leases as of April 2, 2022 was as follows (in thousands): Operating Leases Finance Leases Total 2023 $ 5,214 $ 356 $ 5,570 2024 4,727 356 5,083 2025 3,691 356 4,047 2026 3,369 356 3,725 2027 1,220 356 1,576 Thereafter 2,056 10,941 12,997 20,277 12,721 32,998 Less: Amount representing interest (2,034) (6,405) (8,439) $ 18,243 $ 6,316 $ 24,559 |
Finance lease liability maturities | The present value minimum payments for future fiscal years under non-cancelable leases as of April 2, 2022 was as follows (in thousands): Operating Leases Finance Leases Total 2023 $ 5,214 $ 356 $ 5,570 2024 4,727 356 5,083 2025 3,691 356 4,047 2026 3,369 356 3,725 2027 1,220 356 1,576 Thereafter 2,056 10,941 12,997 20,277 12,721 32,998 Less: Amount representing interest (2,034) (6,405) (8,439) $ 18,243 $ 6,316 $ 24,559 |
Goodwill and Other Intangibles
Goodwill and Other Intangibles (Tables) | 12 Months Ended |
Apr. 02, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangibles | Goodwill and other intangibles, net, consisted of the following (in thousands): April 2, 2022 April 3, 2021 Gross Accumulated Net Gross Accumulated Net Indefinite-lived: Goodwill $ 100,993 $ — $ 100,993 $ 75,090 $ — $ 75,090 Trademarks and trade names 15,680 — 15,680 8,900 — 8,900 State insurance licenses 1,100 — 1,100 1,100 — 1,100 117,773 — 117,773 85,090 — 85,090 Finite lived: Customer relationships 19,500 (8,392) 11,108 11,300 (7,097) 4,203 Other 1,924 (1,353) 571 1,424 (1,264) 160 $ 139,197 $ (9,745) $ 129,452 $ 97,814 $ (8,361) $ 89,453 |
Expected Amortization for Future Fiscal Years | Expected amortization for future fiscal years is as follows (in thousands): 2023 $ 2,013 2024 1,339 2025 1,300 2026 1,258 2027 1,185 Thereafter 4,584 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 12 Months Ended |
Apr. 02, 2022 | |
Payables and Accruals [Abstract] | |
Accrued expenses and other current liabilities | Accrued expenses and other current liabilities consisted of the following (in thousands): April 2, April 3, Customer deposits $ 56,318 $ 41,835 Salaries, wages and benefits 54,172 37,737 Estimated warranties 26,250 18,032 Unearned insurance premiums 24,917 22,643 Accrued volume rebates 18,641 12,132 Company repurchase options on certain loans sold 9,375 25,938 Other 60,631 44,816 $ 250,304 $ 203,133 |
Warranties (Tables)
Warranties (Tables) | 12 Months Ended |
Apr. 02, 2022 | |
Product Warranties Disclosures [Abstract] | |
Activity in the liability for estimated warranties | Activity in the liability for estimated warranties for fiscal years 2022, 2021 and 2020 was as follows (in thousands): April 2, April 3, March 28, Balance at beginning of period $ 18,032 $ 18,678 $ 17,069 Purchase accounting additions 5,909 — 1,192 Charged to costs and expenses 40,678 28,352 29,885 Payments and deductions (38,369) (28,998) (29,468) Balance at end of period $ 26,250 $ 18,032 $ 18,678 |
Secured Financings and Other (T
Secured Financings and Other (Tables) | 12 Months Ended |
Apr. 02, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | April 2, April 3, Finance lease payables $ 6,316 $ 304 Other secured financing 2,933 3,672 Mandatorily redeemable noncontrolling interest 2,371 — Secured term loans — 8,210 11,620 12,186 Less current portion (784) (1,851) $ 10,836 $ 10,335 |
Schedule of Maturities of Long-term Debt | Scheduled maturities for future fiscal years of the Company's obligations consist of the following (in thousands): 2023 $ 510 2024 2,828 2025 416 2026 379 2027 341 Thereafter 7,146 |
Reinsurance and Insurance Los_2
Reinsurance and Insurance Loss Reserves (Tables) | 12 Months Ended |
Apr. 02, 2022 | |
Insurance [Abstract] | |
Reinsurance Effect on Premiums Written and Earned | The effects of reinsurance on premiums written and earned were as follows (in thousands): Year Ended April 2, 2022 April 3, 2021 Written Earned Written Earned Direct premiums $ 27,639 $ 25,543 $ 23,226 $ 21,424 Assumed premiums—nonaffiliated 31,693 30,579 29,167 28,160 Ceded premiums—nonaffiliated (15,232) (15,232) (12,604) (12,604) $ 44,100 $ 40,890 $ 39,789 $ 36,980 |
Activity in property casualty reserve | The following details the activity in the reserve for fiscal years 2022, 2021 and 2020 (in thousands): April 2, April 3, March 28, Balance at beginning of period $ 7,451 $ 5,582 $ 6,686 Net incurred losses during the year 25,962 23,041 16,961 Net claim payments during the year (25,264) (21,172) (18,065) Balance at end of period $ 8,149 $ 7,451 $ 5,582 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Apr. 02, 2022 | |
Income Tax Disclosure [Abstract] | |
Provision for income taxes | The following details the provision for income taxes for fiscal years 2022, 2021 and 2020 (in thousands): 2022 2021 2020 Current Federal $ 7,271 $ 16,823 $ 14,625 State 8,768 3,128 3,084 16,039 19,951 17,709 Deferred Federal (1,257) 302 246 State (535) 13 (42) (1,792) 315 204 $ 14,247 $ 20,266 $ 17,913 |
Reconciliations of income taxes | A reconciliation of income taxes computed by applying the expected federal statutory income tax rate of 21% for fiscal years 2022, 2021 and 2020 to income before income taxes reported in the Consolidated Statements of Comprehensive Income is as follows (in thousands): 2022 2021 2020 Federal income tax at statutory rate $ 44,518 $ 20,351 $ 19,525 State income taxes, net of federal benefit 8,075 3,422 3,297 Stock-based compensation (1,421) (2,710) (2,994) Tax credits (37,488) (1,356) (2,401) Other 563 559 486 $ 14,247 $ 20,266 $ 17,913 |
Net deferred tax assets and liabilities | Net deferred tax assets and liabilities were as follows (in thousands): April 2, April 3, Net deferred tax (liabilities) assets Goodwill $ (16,675) $ (16,327) Property, plant and equipment (7,030) (5,121) Warranty reserves 5,913 4,277 Lease - Operating lease liability 4,270 4,123 Lease - Right of use assets (3,968) (3,820) Salaries and wages 3,924 3,065 Accrued volume rebates 2,600 1,494 Stock-based compensation 2,199 2,177 Inventory 2,192 1,271 Unrealized gains on marketable equity investments (1,715) (1,695) Loan discount 1,275 1,631 Other intangibles — (1,538) Other 1,487 3,070 $ (5,528) $ (7,393) |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Apr. 02, 2022 | |
Repurchase Contingencies [Roll Forward] | |
Loan Contracts with Off-Balance Sheet Commitments | Loan contracts with off-balance sheet commitments are summarized below (in thousands): April 2, April 3, Construction loan contract amount $ 9,330 $ 37,628 Cumulative advances (3,547) (13,801) $ 5,783 $ 23,827 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Apr. 02, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Stock Options Activity | Stock Options. The following table summarizes stock option activity for fiscal years 2022, 2021 and 2020: Number Weighted Weighted Aggregate Outstanding at March 30, 2019 411,111 $ 102.71 Granted 74,750 145.24 Exercised (120,687) 63.66 Canceled or expired (1,000) 99.65 Outstanding at March 28, 2020 364,174 $ 123.93 4.02 $ 49,000 Granted 39,800 177.61 Exercised (131,567) 90.49 Canceled or expired (20,658) 148.95 Outstanding at April 3, 2021 251,749 $ 146.86 4.04 $ 34,266 Granted — — Exercised (53,550) 107.58 Canceled or expired (5,286) 164.49 Outstanding at April 2, 2022 192,913 $ 157.23 3.34 $ 16,724 Exercisable at March 28, 2020 179,133 $ 100.82 2.83 $ 25,423 Exercisable at April 3, 2021 108,588 $ 132.48 3.22 $ 15,549 Exercisable at April 2, 2022 126,948 $ 149.90 2.82 $ 11,941 |
Stock Options, Weighted Average Assumptions | There were no grants of stock options in fiscal year 2022. The weighted-average estimated fair value of employee stock options granted during fiscal years 2021 and 2020 was $69.65 and $46.84 per share, respectively, using the following weighted average assumptions: Fiscal Year 2021 2020 Volatility 47.5 % 36.0 % Risk-free interest rate 0.3 % 2.0 % Dividend yield — % — % Expected option life in years 4.56 4.33 Estimated forfeiture rate 7.0 % 7.0 % |
Restricted Stock Unit Activity | Restricted Stock Awards. A summary of RSU activity for fiscal years 2022, 2021 and 2020 is as follows: Number of Shares Performance-Based Awards Service-Based Awards Total Outstanding at March 30, 2019 — — — Awarded 7,305 4,900 12,205 Released — (400) (400) Canceled or expired — — — Outstanding at March 28, 2020 7,305 4,500 11,805 Awarded 7,450 3,550 11,000 Released — (3,465) (3,465) Canceled or expired (1,816) — (1,816) Outstanding at April 3, 2021 12,939 4,585 17,524 Awarded 7,920 16,902 24,822 Released — (3,335) (3,335) Canceled or expired (805) (505) (1,310) Outstanding at April 2, 2022 20,054 17,647 37,701 Unvested target performance-based RSUs that may vest based upon performance conditions through fiscal year 2022 6,333 Unvested target performance-based RSUs that may vest based upon performance conditions through fiscal year 2023 6,201 Unvested target performance-based RSUs that may vest based upon performance conditions through fiscal year 2024 7,520 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Apr. 02, 2022 | |
Earnings Per Share [Abstract] | |
Basic earnings per share | The following table sets forth the computation of basic and diluted earnings per share for fiscal years 2022, 2021 and 2020 (dollars in thousands, except per share amounts): Fiscal Year 2022 2021 2020 Net income attributable to Cavco common stockholders $ 197,699 $ 76,646 $ 75,066 Weighted average shares outstanding: Basic 9,178,593 9,189,052 9,129,639 Effect of dilutive securities 85,560 104,082 139,145 Diluted 9,264,153 9,293,134 9,268,784 Net income per share attributable to Cavco common stockholders Basic $ 21.54 $ 8.34 $ 8.22 Diluted $ 21.34 $ 8.25 $ 8.10 Anti-dilutive common stock equivalents excluded 405 19,440 23,336 Outstanding RSUs excluded, as underlying performance criteria has not yet been met 20,054 12,939 7,305 |
Diluted earnings per share | The following table sets forth the computation of basic and diluted earnings per share for fiscal years 2022, 2021 and 2020 (dollars in thousands, except per share amounts): Fiscal Year 2022 2021 2020 Net income attributable to Cavco common stockholders $ 197,699 $ 76,646 $ 75,066 Weighted average shares outstanding: Basic 9,178,593 9,189,052 9,129,639 Effect of dilutive securities 85,560 104,082 139,145 Diluted 9,264,153 9,293,134 9,268,784 Net income per share attributable to Cavco common stockholders Basic $ 21.54 $ 8.34 $ 8.22 Diluted $ 21.34 $ 8.25 $ 8.10 Anti-dilutive common stock equivalents excluded 405 19,440 23,336 Outstanding RSUs excluded, as underlying performance criteria has not yet been met 20,054 12,939 7,305 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Apr. 02, 2022 | |
Fair Value Disclosures [Abstract] | |
Summary of the Fair Value and Carrying Value of Financial Instruments | The book value and estimated fair value of our financial instruments were as follows (in thousands): April 2, 2022 April 3, 2021 Book Estimated Book Estimated Available-for-sale debt securities (1) $ 17,760 $ 17,760 $ 14,946 $ 14,946 Marketable equity securities (2) 16,780 16,780 17,600 17,600 Non-marketable equity investments (3) 20,479 20,479 21,960 21,960 Consumer loans receivable (4) (5) 49,884 53,354 74,798 86,209 Commercial loans receivable (5) 68,566 65,942 44,314 42,379 Secured credit facilities and other (6) (11,620) (11,806) (12,186) (12,340) (1) Level 2: The fair value is based on observable market prices for identical securities. When observable market prices for identical securities are not available, we price our 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. (2) Level 1: The fair value is based on quoted market prices. (3) Level 3: The fair value approximates book value based on the non-marketable nature of the investments. (4) Level 3: Includes consumer loans receivable held for investment, held for sale and construction advances. (5) Level 3: The fair value is estimated using market interest rates of comparable loans. (6) L evel 2: The fair value is based on the discounted value of the expected remaining principal and interest cash flows. |
Capitalized Mortgage Servicing Rights | April 2, April 3, Number of loans serviced with MSRs 4,346 4,647 Weighted average servicing fee (basis points) 34.76 33.57 Capitalized servicing multiple 85.07 % 45.93 % Capitalized servicing rate (basis points) 29.57 15.42 Serviced portfolio with MSRs (in thousands) $ 560,178 $ 593,939 MSRs (in thousands) $ 1,656 $ 916 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Apr. 02, 2022 | |
Compensation Related Costs [Abstract] | |
Multiemployer Plan | The Company's participation in multiemployer plans for the fiscal year ended April 2, 2022 is outlined in the table below, with the following information: • The Employer Identification Number is 51-6031295 and the three-digit plan number assigned to a plan by the Internal Revenue Service is 002. • The most recent Pension Protection Act Zone Status available is for plan years that ended in calendar years 2021 and 2020, based on information provided to the Company by the plan. A plan in the "red" zone has been determined to be in "critical status," based on criteria established under the Internal Revenue Code ("Code"), and is generally less than 65% funded. • The "RP Status Pending/Implemented" column indicates whether a Rehabilitation Plan ("RP") for plans in the "red" zone, as required by the Code, is pending or has been implemented by the plan as of the end of the plan year that ended in calendar year 2021. • The "Surcharge Imposed" column indicates whether the Company contribution rate for its fiscal year that ended on April 2, 2022 included an amount in addition to the contribution rate specified in the applicable collective bargaining agreement ("CBA"), as imposed by a plan in "critical status," in accordance with the requirements of the Code. Pension Protection Act Zone Status RP Status Pending / Implemented Contributions by the Company by fiscal year (in thousands) Expiration Date of CBAs Pension Fund 2021 2020 2022 2021 2020 Surcharge Imposed IAM National Pension Fund Red Red Implemented $ 312 $ — $ — Yes (1) (1) The CBA for the Clarion and Colony manufacturing facilities expires in April 2023. The expiration date of the CBA for the Pennwest manufacturing facility is February 2024. |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Apr. 02, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Acquisitions | Craftsman Acquisition In fiscal year 2017, we purchased a 50% ownership interest in Craftsman for $1.3 million to expand our retail presence in Nevada. At that time, we concluded that we were not considered to be the primary beneficiary and therefore did not consolidate the Entities. Since the date of acquisition, we previously had recorded a non-marketable equity investment for the ownership, with changes to that investment for earnings and distributions from the Entities. On July 4, 2021, we obtained an additional 20% ownership interest in the Entities utilizing the same pre-tax income multiple as the 2017 purchase. As we now have a controlling interest, we have consolidated the Entities and remeasured the Entities' assets and liabilities to fair value, including our previous equity investment of $2.9 million in the Entities. As a result of the remeasurement, we recorded a gain of $3.3 million in Other income, net in the Consolidated Statements of Comprehensive Income. The purchase price on July 4, 2021 for 20% ownership was $2.5 million, valuing the Entities at $12.4 million. The following table summarizes the fair values of the assets acquired and liabilities assumed at the acquisition date (in thousands). July 4, Cash $ 6,466 Accounts receivable 577 Inventories 7,146 Property, plant and equipment 205 Other current assets 416 Indefinite lived intangible assets (1) 2,980 Total identifiable assets acquired 17,790 Accounts payable and accrued liabilities 10,028 Net identifiable assets acquired 7,762 Goodwill (2) 4,595 Net assets acquired $ 12,357 (1) Includes $3.0 million assigned to trademarks and trade names, which are considered indefinite lived intangible assets and are not subject to amortization. (2) Attributable to the Factory-built housing segment, all of which will be deductible for income tax purposes. We recorded a Redeemable noncontrolling interest for the remaining 30% ownership. As 20% of this is considered mandatorily redeemable per the Craftsman Purchase Agreement, $2.5 million for the acquisition date fair value of this portion of the noncontrolling interest was recorded in the long-term liabilities section of the Consolidated Balance Sheet within Secured financings and other. As we are not currently obligated for the redemption of the remaining 10% ownership, $1.2 million for the acquisition date fair value of this portion of the noncontrolling interest is classified as a temporary equity mezzanine item between liabilities and stockholders' equity in the Consolidated Balance Sheets as Redeemable noncontrolling interest. Since the acquisition date, Craftsman contributed Net revenue and Net income of $13.8 million and $0.4 million, respectively, for the fiscal year ended April 2, 2022. Cost of sales from the Craftsman acquisition included required purchase accounting adjustments whereby home product inventory is recorded at fair value upon acquisition. Commodore Acquisition On September 24, 2021, we purchased certain manufactured housing assets and assumed certain liabilities of The Commodore Corporation ("Commodore"), including its six manufacturing facilities and two wholly-owned retail locations. In addition to manufacturing, Commodore also participates in commercial lending operations with its dealers. The transaction was accounted for as a business combination and the results of operations have been included in the accompanying Consolidated Financial Statements since the date of acquisition. The acquisition of Commodore brings beneficial geographic addition to our footprint with strong operations in the Northeast/Midwest/Mid-Atlantic markets and provides a platform for future growth, with the potential for cost and revenue synergies. The acquisition-date fair value of the total consideration was $146.2 million , subject to future adjustments upon the finalization of closing financial statements. During the period, certain adjustments were made to these closing financial statements, which resulted in changes to the initial purchase price allocation and impacted the amount of goodwill recognized. We have expensed $2.7 million in acquisition related transaction costs in Selling, general and administrative expenses i n the Consolidated Statements of Comprehensive Income , and have not 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 time between the acquisition date and reporting date and will be finalized upon completion of the analysis of the fair values of Commodore's acquired commercial loans, intangible assets and resulting goodwill and deferred taxes. We expect to finalize these amounts as soon as possible but no later than one year from the acquisition date. September 24, Cash $ 619 Accounts receivable 20,930 Commercial loans 30,922 Inventories 31,787 Property, plant and equipment (1) 59,106 Other current assets 534 Intangible assets (2) 12,500 Total identifiable assets acquired 156,398 Accounts payable and accrued liabilities 31,536 Net identifiable assets acquired 124,862 Goodwill (3) 21,308 Net assets acquired $ 146,170 (1) Includes assets acquired under finance leases. See Note 9 for additional information. (2) Includes $7.2 million assigned to customer-related intangibles, subject to a useful life of 11 years amortized on a straight-line basis; $3.8 million assigned to trademarks and trade names, which are considered indefinite lived intangible assets and are not subject to amortization; $1.0 million for acquired sales order backlogs that will be amortized over the period to produce the associated backlog; and $0.5 million for a covenant not to compete from the sellers, amortized on a straight-line basis over the term of 5 years. (3) Attributable to the Factory-built housing segment, all of which will be deductible for income tax purposes. Since the acquisition date, Commodore contributed Net revenue and Net income of $166.7 million and $6.6 million, respectively, for the fiscal year ended April 2, 2022. Cost of sales from the Commodore acquisition included required purchase accounting adjustments whereby home product inventory is recorded at fair value upon acquisition. |
Pro Forma Impact of Acquisitions | Pro Forma Impact of Acquisitions (Unaudited) . The following table presents supplemental pro forma information as if the above acquisitions occurred on March 29, 2020 (in thousands, except per share data): Year Ended April 2, April 3, Net revenue $ 1,793,247 $ 1,369,244 Net income attributable to Cavco common stockholders 199,820 84,448 Diluted net income per share 21.57 9.09 |
Business Segment Information (T
Business Segment Information (Tables) | 12 Months Ended |
Apr. 02, 2022 | |
Segment Reporting [Abstract] | |
Business Segment Information | The following tables provide selected financial data by segment (dollars in thousands): Fiscal Year Ended April 2, April 3, March 28, Net revenue: Factory-built housing $ 1,556,283 $ 1,037,889 $ 999,340 Financial services 70,875 70,162 62,434 $ 1,627,158 $ 1,108,051 $ 1,061,774 Net revenue for financial services consists of: Finance $ 23,004 $ 24,195 $ 24,894 Insurance 47,871 45,967 37,540 $ 70,875 $ 70,162 $ 62,434 Income before income taxes: Factory-built housing $ 197,282 $ 78,937 $ 78,531 Financial services 14,707 17,975 14,448 $ 211,989 $ 96,912 $ 92,979 Depreciation: Factory-built housing $ 9,451 $ 5,450 $ 5,120 Financial services 182 127 57 $ 9,633 $ 5,577 $ 5,177 Amortization: Factory-built housing $ 1,270 $ 560 $ 419 Financial services 114 187 187 $ 1,384 $ 747 $ 606 Income tax expense: Factory-built housing $ 10,853 $ 16,204 $ 14,574 Financial services 3,394 4,062 3,339 $ 14,247 $ 20,266 $ 17,913 Capital expenditures: Factory-built housing $ 18,574 $ 25,465 $ 13,211 Financial services 79 72 1,129 $ 18,653 $ 25,537 $ 14,340 April 2, April 3, Total assets: Factory-built housing $ 929,535 $ 711,579 Financial services 225,437 240,254 $ 1,154,972 $ 951,833 April 2, April 3, March 28, Gross margin %: Consolidated 25.1 % 21.6 % 21.7 % Factory-built housing 23.9 % 19.2 % 19.5 % Financial services 51.5 % 56.1 % 56.5 % |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Revenue Recognition) (Details) | 12 Months Ended | ||
Apr. 02, 2022 | Apr. 03, 2021 | Mar. 28, 2020 | |
Revenue Recognition [Abstract] | |||
Concentration Risk on Factory Built Housing Description | No independent distributor accounted for 10% or more of factory-built housing revenue | No independent distributor accounted for 10% or more of factory-built housing revenue | No independent distributor accounted for 10% or more of factory-built housing revenue |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Receivables and Allowances) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 02, 2022 | Apr. 03, 2021 | Mar. 28, 2020 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Allowance for credit loss on available-for-sale debt securities | $ 0 | ||
Allowance for loan loss, consumer | 2,100 | $ 3,200 | |
Allowance for loan losses, commercial | 1,011 | 816 | $ 393 |
Accounting Standards Update 2016-13 | Consumer loans | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Impact of adoption of ASU 2016-13 | 0 | 2,276 | |
Factory-built housing | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Allowance for doubtful accounts receivable | 0 | $ 0 | |
Loans held at acquisition date | Accounting Standards Update 2016-13 | Consumer loans | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Impact of adoption of ASU 2016-13 | $ 1,700 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Long Lived Assets) (Details) - USD ($) | 12 Months Ended | ||
Apr. 02, 2022 | Apr. 03, 2021 | Mar. 28, 2020 | |
Property, Plant and Equipment [Line Items] | |||
Impairment losses on assets held and used | $ 0 | $ 0 | $ 0 |
Buildings and improvements | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Useful lives | 10 years | ||
Buildings and improvements | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Useful lives | 39 years | ||
Machinery and Equipment | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Useful lives | 3 years | ||
Machinery and Equipment | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Useful lives | 25 years |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Goodwill and Other Intangibles) (Details) | 12 Months Ended | ||
Apr. 02, 2022USD ($)Segment | Apr. 03, 2021USD ($) | Mar. 28, 2020USD ($) | |
Finite-Lived Intangible Assets [Line Items] | |||
Number of Operating Segments | Segment | 2 | ||
Impairment losses on assets held and used | $ 0 | $ 0 | $ 0 |
Goodwill and Intangible Asset Impairment | $ 0 | $ 0 | $ 0 |
Minimum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 3 years | ||
Maximum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 15 years |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies (Warranties) (Details) | 12 Months Ended |
Apr. 02, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Warranty period for manufacturing defects | 1 year |
Nonstructural Component Warranty Description | 120 days |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies (Insurance) (Details) - USD ($) $ in Thousands | Apr. 02, 2022 | Apr. 03, 2021 | Mar. 28, 2020 | Mar. 30, 2019 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Insurance loss reserves | $ 8,149 | $ 7,451 | $ 5,582 | $ 6,686 |
Balance of incurred but not reported losses | $ 3,800 | $ 3,700 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies (Advertising, Freight and Other Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 02, 2022 | Apr. 03, 2021 | Mar. 28, 2020 | |
Advertising costs | $ 1,400 | $ 807 | $ 900 |
Freight | |||
Cost of Goods and Services Sold | $ 41,500 | $ 29,300 | $ 30,900 |
Summary of Significant Accou_10
Summary of Significant Accounting Policies (Noncontrolling Interest) (Details) - Craftsman | Dec. 31, 2023 | Apr. 02, 2022 | Jul. 04, 2021 |
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | |||
Ownership interest in Craftsman | 70.00% | ||
Additional ownership in Craftsman | 20.00% | ||
Forecast | Mandatorily redeemable noncontrolling interest | |||
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | |||
Additional ownership in Craftsman | 20.00% | ||
Forecast | Reedemable noncontrolling interest | |||
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | |||
Additional ownership in Craftsman | 10.00% |
Summary of Significant Accou_11
Summary of Significant Accounting Policies (Stockholder's Equity) (Details) - USD ($) $ in Thousands | Apr. 02, 2022 | Apr. 03, 2021 |
Accounting Policies [Abstract] | ||
Gross unrealized gain (loss), available for sale debt securities | $ (510) | $ 123 |
Deferred tax asset | 107 | |
Deferred tax expense | (26) | |
Accumulated other comprehensive (loss) income | $ (403) | $ 97 |
Revenue from Contracts with C_3
Revenue from Contracts with Customer Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 02, 2022 | Apr. 03, 2021 | Mar. 28, 2020 | |
Disaggregation of Revenue | |||
Net revenue | $ 1,627,158 | $ 1,108,051 | $ 1,061,774 |
Site improvements on Retail Sales | |||
Disaggregation of Revenue | |||
Net revenue | $ 43,900 | $ 41,100 | $ 30,000 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 02, 2022 | Apr. 03, 2021 | Mar. 28, 2020 | |
Disaggregation of Revenue | |||
Net revenue | $ 1,627,158 | $ 1,108,051 | $ 1,061,774 |
Factory-built housing | |||
Disaggregation of Revenue | |||
Net revenue | 1,556,283 | 1,037,889 | 999,340 |
Financial Services | |||
Disaggregation of Revenue | |||
Net revenue | 70,875 | 70,162 | 62,434 |
HUD Code | Factory-built housing | |||
Disaggregation of Revenue | |||
Net revenue | 1,335,904 | 842,515 | 813,074 |
Modular | Factory-built housing | |||
Disaggregation of Revenue | |||
Net revenue | 117,817 | 91,896 | 84,498 |
Park Model RVs | Factory-built housing | |||
Disaggregation of Revenue | |||
Net revenue | 42,219 | 46,862 | 46,427 |
Factory-built housing, other | Factory-built housing | |||
Disaggregation of Revenue | |||
Net revenue | 60,343 | 56,616 | 55,341 |
Insurance Agency Commissions | Financial Services | |||
Disaggregation of Revenue | |||
Net revenue | 4,055 | 3,102 | 3,352 |
Financial service, other | Financial Services | |||
Disaggregation of Revenue | |||
Net revenue | $ 66,820 | $ 67,060 | $ 59,082 |
Restricted Cash (Details)
Restricted Cash (Details) - USD ($) $ in Thousands | Apr. 02, 2022 | Apr. 03, 2021 | Mar. 28, 2020 |
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Restricted cash | $ 14,849 | $ 16,693 | |
Other restricted cash | 335 | 335 | |
Total restricted cash | 15,184 | 17,028 | $ 13,781 |
Less current portion | (14,849) | (16,693) | |
Restricted cash, noncurrent | 335 | 335 | |
Cash related to CountryPlace customer payments to be remitted to third parties [Member] | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Total restricted cash | 13,857 | 16,049 | |
Other restricted cash | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Total restricted cash | $ 1,327 | $ 979 |
Restricted Cash (Reconciliation
Restricted Cash (Reconciliation to SOCF) (Details) - USD ($) $ in Thousands | Apr. 02, 2022 | Apr. 03, 2021 | Mar. 28, 2020 | Mar. 30, 2019 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract] | ||||
Cash and cash equivalents | $ 244,150 | $ 322,279 | $ 241,826 | |
Restricted Cash and Cash Equivalents | 15,184 | 17,028 | 13,781 | |
Cash, cash equivalents and restricted cash | $ 259,334 | $ 339,307 | $ 255,607 | $ 199,869 |
Investments (Summary) (Details)
Investments (Summary) (Details) - USD ($) $ in Thousands | Apr. 02, 2022 | Apr. 03, 2021 |
Investment summary | ||
Available-for-sale debt securities | $ 17,760 | $ 14,946 |
Marketable equity securities | 16,780 | 17,600 |
Non-marketable equity investments | 20,479 | 21,960 |
Investments | 55,019 | 54,506 |
Short-term Investments | 20,086 | 19,496 |
Long-term Investments | $ 34,933 | $ 35,010 |
Investments (Available-for-sale
Investments (Available-for-sale Summary) (Details) - USD ($) $ in Thousands | Apr. 02, 2022 | Apr. 03, 2021 |
Available-for-Sale Securities by Investment Category | ||
Total Amortized Cost | $ 18,270 | $ 14,823 |
Gross Unrealized Gains | 41 | 166 |
Gross Unrealized Losses | (551) | (43) |
Total Fair Value | 17,760 | 14,946 |
Residential mortgage-backed securities | ||
Available-for-Sale Securities by Investment Category | ||
Total Amortized Cost | 1,668 | 2,787 |
Gross Unrealized Gains | 2 | 30 |
Gross Unrealized Losses | (57) | (13) |
Total Fair Value | 1,613 | 2,804 |
States and political subdivision debt securities | ||
Available-for-Sale Securities by Investment Category | ||
Total Amortized Cost | 10,100 | 7,239 |
Gross Unrealized Gains | 38 | 125 |
Gross Unrealized Losses | (232) | (19) |
Total Fair Value | 9,906 | 7,345 |
Corporate debt securities | ||
Available-for-Sale Securities by Investment Category | ||
Total Amortized Cost | 6,502 | 4,797 |
Gross Unrealized Gains | 1 | 11 |
Gross Unrealized Losses | (262) | (11) |
Total Fair Value | $ 6,241 | $ 4,797 |
Investments (Continuous Unreali
Investments (Continuous Unrealized Loss Positions) (Details) - USD ($) $ in Thousands | Apr. 02, 2022 | Apr. 03, 2021 |
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Less than 12 months, fair value | $ 10,147 | $ 6,093 |
Unrealized losses, less than 12 months | (440) | (35) |
12 months or longer, fair value | 2,133 | 699 |
Unrealized losses, 12 months or longer | (111) | (8) |
Debt securities in unrealized loss position, fair value | 12,280 | 6,792 |
Debt securities in unrealized loss position, accumulated loss | 551 | 43 |
Residential mortgage-backed securities | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Less than 12 months, fair value | 1,048 | 927 |
Unrealized losses, less than 12 months | (45) | (6) |
12 months or longer, fair value | 289 | 450 |
Unrealized losses, 12 months or longer | (12) | (7) |
Debt securities in unrealized loss position, fair value | 1,337 | 1,377 |
Debt securities in unrealized loss position, accumulated loss | 57 | 13 |
States and political subdivision debt securities | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Less than 12 months, fair value | 3,884 | 3,013 |
Unrealized losses, less than 12 months | (164) | (19) |
12 months or longer, fair value | 1,246 | 0 |
Unrealized losses, 12 months or longer | (68) | 0 |
Debt securities in unrealized loss position, fair value | 5,130 | 3,013 |
Debt securities in unrealized loss position, accumulated loss | 232 | 19 |
Corporate debt securities | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Less than 12 months, fair value | 5,215 | 2,153 |
Unrealized losses, less than 12 months | (231) | (10) |
12 months or longer, fair value | 598 | 249 |
Unrealized losses, 12 months or longer | (31) | (1) |
Debt securities in unrealized loss position, fair value | 5,813 | 2,402 |
Debt securities in unrealized loss position, accumulated loss | $ 262 | $ 11 |
Investments (Debt Securities by
Investments (Debt Securities by Maturity) (Details) - USD ($) $ in Thousands | Apr. 02, 2022 | Apr. 03, 2021 |
Contractual Maturity of Investment Securities | ||
Due in less than one year, Amortized Cost | $ 3,300 | |
Due after one year through five years, Amortized Cost | 11,394 | |
Due after five years through ten years, Amortized Cost | 1,261 | |
Due after ten years, Amortized Cost | 647 | |
Mortgage-backed securities, Amortized Cost | 1,668 | |
Total Amortized Cost | 18,270 | $ 14,823 |
Due in less than one year, Fair Value | 3,302 | |
Due after one year through five years, Fair Value | 10,901 | |
Due after five years through ten years, Fair Value | 1,281 | |
Due after ten years, Fair Value | 663 | |
Mortgage-backed securities, Fair Value | 1,613 | |
Total Fair Value | $ 17,760 | $ 14,946 |
Investments (Gains (losses) on
Investments (Gains (losses) on securities) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 02, 2022 | Apr. 03, 2021 | Mar. 28, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |||
Gross gains realized on debt securities | $ 2 | $ 0 | $ 0 |
Gross losses realized on debt securities | 0 | (6) | 0 |
Net gain (loss) recognized during the period | 2,160 | 8,515 | (2,264) |
Less: Net (gains) losses recognized on securities sold during the period | (551) | (2,191) | 232 |
Unrealized gains (losses) recognized during the period on securities still held | $ 1,609 | $ 6,324 | $ (2,032) |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Apr. 02, 2022 | Apr. 03, 2021 |
Summary of inventories | ||
Raw materials | $ 95,929 | $ 54,336 |
Work in process | 30,638 | 19,149 |
Finished goods | 117,404 | 57,749 |
Total Inventories | $ 243,971 | $ 131,234 |
Consumer Loans Receivable (Summ
Consumer Loans Receivable (Summary of Consumer Loans Receivable) (Details) - USD ($) $ in Thousands | Apr. 02, 2022 | Apr. 03, 2021 |
Receivables [Abstract] | ||
Loans held for investment (at Acquisition Date) | $ 26,014 | $ 31,949 |
Loans held for investment (originated after Acquisition Date) | 14,771 | 18,690 |
Loans held for sale | 8,500 | 15,587 |
Construction Advances | 3,547 | 13,801 |
Consumer loans receivable | 52,832 | 80,027 |
Deferred financing fees and other, net | (833) | (2,041) |
Allowance for loan losses | (2,115) | (3,188) |
Consumer loans receivable | 49,884 | 74,798 |
Less current portion | (20,639) | (37,690) |
Consumer loans receivable, net | $ 29,245 | $ 37,108 |
Consumer Loans Receivable (Allo
Consumer Loans Receivable (Allowance For Loan Loss Rollforward) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Apr. 02, 2022 | Apr. 03, 2021 | |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Allowance for loan loss at beginning of period | $ 3,188 | |
Allowance for loan loss at end of period | 2,115 | $ 3,188 |
Consumer loans | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Allowance for loan loss at beginning of period | 3,188 | 1,767 |
Change in estimated loan losses, net | (541) | (655) |
Charge-offs | (532) | (201) |
Recoveries | 0 | 1 |
Allowance for loan loss at end of period | 2,115 | 3,188 |
Accounting Standards Update 2016-13 | Consumer loans | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Impact of adoption of ASU 2016-13 | $ 0 | $ 2,276 |
Consumer Loans Receivable (Weig
Consumer Loans Receivable (Weighted Averages) (Details) | 12 Months Ended | |
Apr. 02, 2022 | Apr. 03, 2021 | |
Receivables [Abstract] | ||
Weighted average contractual interest rate | 8.32% | 8.26% |
Weighted average effective interest rate | 9.21% | 9.34% |
Weighted average months to maturity | 151 months | 162 months |
Consumer Loans Receivable (Deli
Consumer Loans Receivable (Delinquency Status of Consumer Loans) (Details) - USD ($) $ in Thousands | Apr. 02, 2022 | Apr. 03, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Consumer loans receivable | $ 52,832 | $ 80,027 |
Current | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Consumer loans receivable | 49,546 | 76,378 |
31 to 60 days past due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Consumer loans receivable | 1,202 | 508 |
61 to 90 days past due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Consumer loans receivable | 41 | 21 |
91+ days past due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Consumer loans receivable | $ 2,043 | $ 3,120 |
Consumer Loans Receivable (Cons
Consumer Loans Receivable (Consumer Loan Receivables by Segment and Credit Quality Indicator) (Details) - USD ($) $ in Thousands | Apr. 02, 2022 | Apr. 03, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Consumer loans receivable | $ 52,832 | $ 80,027 |
Prime- FICO score 680 and greater | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Consumer loans receivable | 34,818 | 49,848 |
Near Prime- FICO score 620-679 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Consumer loans receivable | 16,207 | 27,030 |
Sub-Prime- FICO score less than 620 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Consumer loans receivable | 1,435 | 2,064 |
No FICO score | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Consumer loans receivable | 372 | 1,085 |
Current fiscal year | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Consumer loans receivable | 9,861 | 29,401 |
Current fiscal year | Prime- FICO score 680 and greater | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Consumer loans receivable | 8,155 | 18,250 |
Current fiscal year | Near Prime- FICO score 620-679 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Consumer loans receivable | 1,661 | 10,227 |
Current fiscal year | Sub-Prime- FICO score less than 620 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Consumer loans receivable | 45 | 348 |
Current fiscal year | No FICO score | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Consumer loans receivable | 0 | 576 |
Prior fiscal year | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Consumer loans receivable | 2,909 | 6,372 |
Prior fiscal year | Prime- FICO score 680 and greater | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Consumer loans receivable | 1,615 | 3,575 |
Prior fiscal year | Near Prime- FICO score 620-679 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Consumer loans receivable | 1,274 | 2,744 |
Prior fiscal year | Sub-Prime- FICO score less than 620 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Consumer loans receivable | 20 | 53 |
Prior fiscal year | No FICO score | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Consumer loans receivable | 0 | 0 |
Fiscal 2019 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Consumer loans receivable | 3,836 | 3,540 |
Fiscal 2019 | Prime- FICO score 680 and greater | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Consumer loans receivable | 2,371 | 1,718 |
Fiscal 2019 | Near Prime- FICO score 620-679 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Consumer loans receivable | 1,413 | 1,794 |
Fiscal 2019 | Sub-Prime- FICO score less than 620 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Consumer loans receivable | 52 | 0 |
Fiscal 2019 | No FICO score | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Consumer loans receivable | 0 | 28 |
Fiscal 2018 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Consumer loans receivable | 3,341 | 2,335 |
Fiscal 2018 | Prime- FICO score 680 and greater | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Consumer loans receivable | 1,339 | 971 |
Fiscal 2018 | Near Prime- FICO score 620-679 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Consumer loans receivable | 1,976 | 1,364 |
Fiscal 2018 | Sub-Prime- FICO score less than 620 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Consumer loans receivable | 0 | 0 |
Fiscal 2018 | No FICO score | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Consumer loans receivable | 26 | 0 |
Fiscal 2017 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Consumer loans receivable | 1,470 | 2,543 |
Fiscal 2017 | Prime- FICO score 680 and greater | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Consumer loans receivable | 853 | 1,959 |
Fiscal 2017 | Near Prime- FICO score 620-679 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Consumer loans receivable | 617 | 500 |
Fiscal 2017 | Sub-Prime- FICO score less than 620 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Consumer loans receivable | 0 | 84 |
Fiscal 2017 | No FICO score | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Consumer loans receivable | 0 | 0 |
Fiscal 2016 and prior | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Consumer loans receivable | 31,415 | 35,836 |
Fiscal 2016 and prior | Prime- FICO score 680 and greater | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Consumer loans receivable | 20,485 | 23,375 |
Fiscal 2016 and prior | Near Prime- FICO score 620-679 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Consumer loans receivable | 9,266 | 10,401 |
Fiscal 2016 and prior | Sub-Prime- FICO score less than 620 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Consumer loans receivable | 1,318 | 1,579 |
Fiscal 2016 and prior | No FICO score | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Consumer loans receivable | $ 346 | $ 481 |
Consumer Loans Receivable (Conc
Consumer Loans Receivable (Concentration of Consumer Loan Receivables by Geographic Region) (Details) | 12 Months Ended | |
Apr. 02, 2022 | Apr. 03, 2021 | |
Geographic Concentration of Consumer Loans Receivable in Key States | ||
Percentage of Principal Balance of Consumer Loans Receivable | 10.00% | |
TEXAS | ||
Geographic Concentration of Consumer Loans Receivable in Key States | ||
Portfolio concentration | 39.00% | 35.00% |
FLORIDA | ||
Geographic Concentration of Consumer Loans Receivable in Key States | ||
Portfolio concentration | 17.00% | 20.00% |
Consumer Loans Receivable (Narr
Consumer Loans Receivable (Narrative) (Details) - USD ($) $ in Thousands | Apr. 02, 2022 | Apr. 03, 2021 |
Receivables [Abstract] | ||
Repossessed homes | $ 499 | $ 518 |
Foreclosure or similar proceedings in progress | $ 1,100 | $ 1,100 |
Commercial Loans Receivables (C
Commercial Loans Receivables (Commercial Loans Notes Receivables, Net) (Details) - USD ($) $ in Thousands | Apr. 02, 2022 | Apr. 03, 2021 | Mar. 28, 2020 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Allowance for loan losses | $ (1,011) | $ (816) | $ (393) |
Commercial Loans Receivable (including from affiliates), Current | (32,644) | (19,232) | |
Commercial Loans Receivable (including from affiliates), Noncurrent | 35,922 | 25,082 | |
Commercial Portfolio Segment | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Commercial loans receivable, gross | 69,693 | 45,377 | |
Allowance for loan losses | (1,011) | (816) | |
Deferred financing fees, net | (116) | (247) | |
Commercial loans receivable, net | $ 68,566 | $ 44,314 |
Commercial Loans Receivables Ch
Commercial Loans Receivables Characteristics (Details)) | 12 Months Ended | |
Apr. 02, 2022 | Apr. 03, 2021 | |
Receivables [Abstract] | ||
Weighted average contractual interest rate | 6.40% | 6.40% |
Weighted average months to maturity | 9 months | 11 months |
Commercial Loans Receivables _2
Commercial Loans Receivables (Changes in the Estimated Allowance for Loan Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Apr. 02, 2022 | Apr. 03, 2021 | |
Changes in the Allowance for Loan Losses on Commercial Loans Receivables [Line Items] | ||
Balance at beginning of period | $ 816 | $ 393 |
Purchase accounting additions | 0 | |
Loans charged off, net of recoveries | 0 | 0 |
Balance at end of period | 1,011 | 816 |
Commodore | ||
Changes in the Allowance for Loan Losses on Commercial Loans Receivables [Line Items] | ||
Purchase accounting additions | 408 | |
Commercial Portfolio Segment | ||
Changes in the Allowance for Loan Losses on Commercial Loans Receivables [Line Items] | ||
Balance at beginning of period | 816 | |
Change in estimated loan losses, net | (213) | (12) |
Balance at end of period | 1,011 | 816 |
Accounting Standards Update 2016-13 | Commercial Portfolio Segment | ||
Changes in the Allowance for Loan Losses on Commercial Loans Receivables [Line Items] | ||
Impact of adoption of ASU 2016-13 | $ 0 | $ 435 |
Commercial Loans Receivables _3
Commercial Loans Receivables (Commercial Loans Receivables by Credit Quality Indicator and Year of Origination) (Details) - Performing - USD ($) $ in Thousands | Apr. 02, 2022 | Apr. 03, 2021 |
Financing Receivable Recorded Investment [Line Items] | ||
Commercial loans receivable, gross | $ 69,693 | $ 45,377 |
Current fiscal year | ||
Financing Receivable Recorded Investment [Line Items] | ||
Commercial loans receivable, gross | 52,592 | 30,627 |
Prior fiscal year | ||
Financing Receivable Recorded Investment [Line Items] | ||
Commercial loans receivable, gross | 10,181 | 8,677 |
Fiscal 2020 | ||
Financing Receivable Recorded Investment [Line Items] | ||
Commercial loans receivable, gross | 4,031 | |
Fiscal 2019 | ||
Financing Receivable Recorded Investment [Line Items] | ||
Commercial loans receivable, gross | 1,391 | 3,206 |
Fiscal 2018 | ||
Financing Receivable Recorded Investment [Line Items] | ||
Commercial loans receivable, gross | $ 1,498 | 1,864 |
Fiscal 2017 | ||
Financing Receivable Recorded Investment [Line Items] | ||
Commercial loans receivable, gross | $ 1,003 |
Commercial Loans Receivables _4
Commercial Loans Receivables (Concentrations of Commerical Loans Receivables) (Details) | Apr. 02, 2022 | Apr. 03, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Concentration risk percentage | 10.00% | 10.00% |
Concentration with affiliates | 13.70% | 17.80% |
NEW YORK | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Geographic concentration | 24.90% | |
ARIZONA | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Geographic concentration | 13.10% |
Commercial Loans Receivables (N
Commercial Loans Receivables (Narrative) (Details) $ in Thousands | 12 Months Ended |
Apr. 02, 2022USD ($) | |
Receivables [Abstract] | |
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 |
Commercial loans 90 days past due still accruing interest | $ 0 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 02, 2022 | Apr. 03, 2021 | Mar. 28, 2020 | |
Property, plant and equipment, at cost: | |||
Property, plant and equipment, at cost | $ 210,848 | $ 134,287 | |
Accumulated depreciation | (46,832) | (37,493) | |
Property, plant and equipment, net | 164,016 | 96,794 | |
Depreciation | 9,633 | 5,577 | $ 5,177 |
Land | |||
Property, plant and equipment, at cost: | |||
Property, plant and equipment, at cost | 32,154 | 28,314 | |
Buildings and improvements | |||
Property, plant and equipment, at cost: | |||
Property, plant and equipment, at cost | 100,775 | 52,174 | |
Machinery and Equipment | |||
Property, plant and equipment, at cost: | |||
Property, plant and equipment, at cost | 48,638 | 32,528 | |
Construction in progress | |||
Property, plant and equipment, at cost: | |||
Property, plant and equipment, at cost | $ 29,281 | $ 21,271 |
Leases (Lease Assets and Liabil
Leases (Lease Assets and Liabilities) (Details) - USD ($) $ in Thousands | Apr. 02, 2022 | Apr. 03, 2021 | |
Leases [Abstract] | |||
Operating lease assets | $ 16,952 | $ 16,252 | |
Finance lease assets | [1] | 7,070 | 986 |
Total lease assets | 24,022 | 17,238 | |
Financed lease asset accumulated amortization | 87 | 143 | |
Operating Lease, Liability, Current | 5,085 | 4,184 | |
Finance lease liabilities, current | 347 | 71 | |
Operating lease liabilities, non-current | 13,158 | 13,361 | |
Finance lease liabilities, non-current | 5,969 | 233 | |
Total lease liabilities | $ 24,559 | $ 17,849 | |
Finance lease assets, location | Property, Plant and Equipment, Net | ||
Operating lease liability, current, location | Accrued Liabilities, Current | ||
Finance lease liability, current, location | Secured Debt, Current | ||
Operating lease liability, noncurrent, location | Operating lease liabilities, non-current | ||
Finance lease liability, noncurrent, location | Secured financings and other | ||
[1] | Recorded net of accumulated amortization of $87,000 and $143,000 as of April 2, 2022 and April 3, 2021, respectively. |
Leases (Lease Expense) (Details
Leases (Lease Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Apr. 02, 2022 | Apr. 03, 2021 | Mar. 28, 2020 | ||
Amortization of leased assets | $ 109 | $ 39 | $ 39 | |
Interest on lease liabilities | 151 | 17 | 52 | |
Total lease expense | 5,056 | 4,488 | 4,044 | |
Operating lease payments | 4,794 | 4,164 | 3,375 | |
Finance lease payments | 220 | 79 | 142 | |
Cost of sales | ||||
Operating lease expense | [1] | 1,160 | 1,105 | 834 |
Selling, general and administrative expenses | ||||
Operating lease expense | [1] | $ 3,636 | $ 3,327 | $ 3,119 |
[1] | Excludes short-term and variable lease expenses, which are immaterial. |
Leases (Future Minimum Lease Pa
Leases (Future Minimum Lease Payments) (Details) - USD ($) $ in Thousands | Apr. 02, 2022 | Apr. 03, 2021 |
Leases [Abstract] | ||
Operating lease payments FY22 | $ 5,214 | |
Operating lease payments FY23 | 4,727 | |
Operating lease payments FY24 | 3,691 | |
Operating lease payments FY25 | 3,369 | |
Operating lease payments FY26 | 1,220 | |
Operating lease payments thereafter | 2,056 | |
Total operating lease payments | 20,277 | |
Less: Amount representing interest | (2,034) | |
Present value of lease liabilities | 18,243 | |
Finance lease payments FY22 | 356 | |
Finance lease payments FY23 | 356 | |
Finance lease payments FY24 | 356 | |
Finance lease payments FY25 | 356 | |
Finance lease payments FY26 | 356 | |
Finance lease payments thereafter | 10,941 | |
Total finance lease payments | 12,721 | |
Less: Amount representing interest | (6,405) | |
Present value of lease liabilities | 6,316 | $ 304 |
2023 | 5,570 | |
2024 | 5,083 | |
2025 | 4,047 | |
2026 | 3,725 | |
2027 | 1,576 | |
Thereafter | 12,997 | |
Total lease payments | 32,998 | |
Less: Amount representing interest | (8,439) | |
Present value of lease liabilities | $ 24,559 | $ 17,849 |
Leases (Weighted Average Disclo
Leases (Weighted Average Disclosures) (Details) | Apr. 02, 2022 |
Leases [Abstract] | |
Weighted average remaining lease term, operating leases | 4 years 8 months 12 days |
Weighted average remaining lease term, finance leases | 35 years 8 months 12 days |
Weighted average discount rate, operating leases | 4.50% |
Weighted average discount rate, finance leases | 4.50% |
Goodwill and Other Intangible_2
Goodwill and Other Intangibles (Summary of Goodwill and Other Intangibles) (Details) - USD ($) $ in Thousands | Apr. 02, 2022 | Apr. 03, 2021 |
Indefinite lived: | ||
Gross Carrying Amount | $ 100,993 | $ 75,090 |
Gross Carrying Amount | 117,773 | 85,090 |
Net Carrying Amount | 117,773 | 85,090 |
Finite lived: | ||
Accumulated Amortization | (9,745) | (8,361) |
Gross Carrying Amount | 139,197 | 97,814 |
Net Carrying Amount | 129,452 | 89,453 |
Customer relationships | ||
Finite lived: | ||
Gross Carrying Amount | 19,500 | 11,300 |
Accumulated Amortization | (8,392) | (7,097) |
Net Carrying Amount | 11,108 | 4,203 |
Other Intangible Assets | ||
Finite lived: | ||
Gross Carrying Amount | 1,924 | 1,424 |
Accumulated Amortization | (1,353) | (1,264) |
Net Carrying Amount | 571 | 160 |
Goodwill | ||
Indefinite lived: | ||
Gross Carrying Amount | 100,993 | 75,090 |
Trademarks and trade names | ||
Indefinite lived: | ||
Net Carrying Amount | 15,680 | 8,900 |
State insurance licenses | ||
Indefinite lived: | ||
Net Carrying Amount | $ 1,100 | $ 1,100 |
Goodwill and Other Intangible_3
Goodwill and Other Intangibles Rollforward (Details) $ in Thousands | 12 Months Ended |
Apr. 02, 2022USD ($) | |
Schedule of Acquired Finite and Indefinite Lived Intangible Asset by Major Class [Line Items] | |
Beginning Balance | $ 75,090 |
Ending Balance | 100,993 |
Craftsman | |
Schedule of Acquired Finite and Indefinite Lived Intangible Asset by Major Class [Line Items] | |
Goodwill, Acquired During Period | 4,595 |
Commodore | |
Schedule of Acquired Finite and Indefinite Lived Intangible Asset by Major Class [Line Items] | |
Goodwill, Acquired During Period | 21,308 |
Goodwill [Member] | |
Schedule of Acquired Finite and Indefinite Lived Intangible Asset by Major Class [Line Items] | |
Beginning Balance | 75,090 |
Ending Balance | $ 100,993 |
Goodwill and Other Intangible_4
Goodwill and Other Intangibles (Amortization Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 02, 2022 | Apr. 03, 2021 | Mar. 28, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization of Intangible Assets | $ 1,400 | $ 747 | $ 606 |
Expected Amortization for Future Fiscal Years [Abstract] | |||
2023 | 2,013 | ||
2024 | 1,339 | ||
2025 | 1,300 | ||
2026 | 1,258 | ||
2027 | 1,185 | ||
Thereafter | $ 4,584 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Apr. 02, 2022 | Apr. 03, 2021 |
Accrued expenses and other current liabilities | ||
Customer deposits | $ 56,318 | $ 41,835 |
Salaries, wages and benefits | 54,172 | 37,737 |
Estimated warranties | 26,250 | 18,032 |
Unearned insurance premiums | 24,917 | 22,643 |
Accrued volume rebates | 18,641 | 12,132 |
Company repurchase options on certain loans sold | 9,375 | 25,938 |
Other | 60,631 | 44,816 |
Total accrued expenses and other current liabilities | $ 250,304 | $ 203,133 |
Warranties (Activity for Estima
Warranties (Activity for Estimated Warranty Liability) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 02, 2022 | Apr. 03, 2021 | Mar. 28, 2020 | |
Accrual for estimated warranties | |||
Balance at beginning of period | $ 18,032 | $ 18,678 | $ 17,069 |
Purchase accounting additions | 5,909 | 0 | 1,192 |
Charged to costs and expenses | 40,678 | 28,352 | 29,885 |
Payments and deductions | (38,369) | (28,998) | (29,468) |
Balance at end of period | $ 26,250 | $ 18,032 | $ 18,678 |
Secured Financings and Other (D
Secured Financings and Other (Details) - USD ($) $ in Thousands | Apr. 02, 2022 | Apr. 03, 2021 |
Debt Disclosure [Abstract] | ||
Finance lease payables | $ 6,316 | $ 304 |
Other secured financing | 2,933 | 3,672 |
Mandatorily redeemable noncontrolling interest | 2,371 | 0 |
Secured term loans | 0 | 8,210 |
Total Debt | 11,620 | 12,186 |
Less current portion | (784) | (1,851) |
Secured financings and other | $ 10,836 | $ 10,335 |
Secured Financings and Other _2
Secured Financings and Other (Details) $ in Thousands | Apr. 02, 2022USD ($) |
Debt Disclosure [Abstract] | |
2023 | $ 510 |
2024 | 2,828 |
2025 | 416 |
2026 | 379 |
2027 | 341 |
Thereafter | $ 7,146 |
Reinsurance and Insurance Los_3
Reinsurance and Insurance Loss Reserves (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Apr. 02, 2022 | Apr. 03, 2021 | |
Reinsurance Effect on Premiums Written and Earned | ||
Direct premiums Written | $ 27,639 | $ 23,226 |
Assumed premiums - nonaffiliate Written | 31,693 | 29,167 |
Ceded premiums - nonaffiliate Written | (15,232) | (12,604) |
Net premiums Written | 44,100 | 39,789 |
Direct premiums Earned | 25,543 | 21,424 |
Assumed premiums - nonaffiliate Earned | 30,579 | 28,160 |
Ceded premiums - nonaffiliate Earned | (15,232) | (12,604) |
Net premiums Earned | $ 40,890 | $ 36,980 |
Reinsurance and Insurance Los_4
Reinsurance and Insurance Loss Reserves (Details Textual) $ in Thousands | 12 Months Ended |
Apr. 02, 2022USD ($) | |
Insurance [Abstract] | |
Insurance policies maximum coverage per claim | $ 300 |
Insurance policies coverage per claim ceded to reinsurers | 125 |
Insurance policy risk of loss maintained per claim | 175 |
Catastrophic losses recoverable in excess of amount | 2,000 |
Aggregate catastrophic losses recoverable in excess of amount | $ 70,000 |
Reinsurance and Insurance Los_5
Reinsurance and Insurance Loss Reserves (Activity in Property Casualty Reserve) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 02, 2022 | Apr. 03, 2021 | Mar. 28, 2020 | |
Insurance [Abstract] | |||
Balance at beginning of period | $ 7,451 | $ 5,582 | $ 6,686 |
Net incurred losses during the year | 25,962 | 23,041 | 16,961 |
Net claim payments during the year | (25,264) | (21,172) | (18,065) |
Balance at end of period | $ 8,149 | $ 7,451 | $ 5,582 |
Income Taxes (Provision (Benefi
Income Taxes (Provision (Benefit) for Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 02, 2022 | Apr. 03, 2021 | Mar. 28, 2020 | |
Current | |||
Federal | $ 7,271 | $ 16,823 | $ 14,625 |
State | 8,768 | 3,128 | 3,084 |
Current Income Tax Expense | 16,039 | 19,951 | 17,709 |
Deferred | |||
Federal | (1,257) | 302 | 246 |
State | (535) | 13 | (42) |
Deferred Income Tax (Benefit) Expense | (1,792) | 315 | 204 |
Income Tax Expense | $ 14,247 | $ 20,266 | $ 17,913 |
Income Taxes (Reconciliation of
Income Taxes (Reconciliation of Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 02, 2022 | Apr. 03, 2021 | Mar. 28, 2020 | |
Income Tax Disclosure [Abstract] | |||
Statutory tax rate | 21.00% | 21.00% | 21.00% |
Federal income tax at statutory rate | $ 44,518 | $ 20,351 | $ 19,525 |
State income taxes, net of federal benefit | 8,075 | 3,422 | 3,297 |
Stock-based compensation | (1,421) | (2,710) | (2,994) |
Tax credits | 37,488 | 1,356 | 2,401 |
Other | 563 | 559 | 486 |
Income Tax Expense | 14,247 | 20,266 | $ 17,913 |
Tax Credit - 45L | 6,400 | $ 30,600 | |
Tax credits - Research and Development | $ 500 |
Income Taxes (Components of Def
Income Taxes (Components of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Apr. 02, 2022 | Apr. 03, 2021 |
Net deferred tax (liabilities) assets | ||
Goodwill | $ (16,675) | $ (16,327) |
Property, plant and equipment | (7,030) | (5,121) |
Warranty reserves | 5,913 | 4,277 |
Lease - Operating lease liability | 4,270 | 4,123 |
Lease - Right of use assets | (3,968) | (3,820) |
Salaries and wages | 3,924 | 3,065 |
Accrued volume rebates | 2,600 | 1,494 |
Stock-based compensation | 2,199 | 2,177 |
Inventory | 2,192 | 1,271 |
Unrealized gains on marketable equity investments | (1,715) | (1,695) |
Loan discount | 1,275 | 1,631 |
Other intangibles | 0 | (1,538) |
Other | 1,487 | 3,070 |
Deferred Tax Liabilities, Net | $ (5,528) | $ (7,393) |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) $ in Thousands | Apr. 02, 2022USD ($) |
Income Tax Disclosure [Abstract] | |
Net operating loss carryforwards | $ 8,600 |
Operating loss carryforward valuation allowance | $ 308 |
Commitments and Contingencies_2
Commitments and Contingencies (Loan Contracts with Off-Balance Sheet Commitments) (Details) - USD ($) $ in Thousands | Apr. 02, 2022 | Apr. 03, 2021 |
Loan Contracts with Off-Balance Sheet Commitments | ||
Construction loan contract amount | $ 9,330 | $ 37,628 |
Cumulative advances | (3,547) | (13,801) |
Remaining construction contingent commitment | $ 5,783 | $ 23,827 |
Commitments and Contingencies_3
Commitments and Contingencies (Details Textual) Claim in Thousands, $ in Thousands | 12 Months Ended | ||
Apr. 02, 2022USD ($)Claim | Apr. 03, 2021USD ($) | Mar. 28, 2020USD ($) | |
Loss Contingencies [Line Items] | |||
Repurchase agreements period, minimum | 18 months | ||
Repurchase agreements period, maximum | 24 months | ||
Repurchase agreements maximum amount contingently liable | $ 141,000 | $ 74,200 | |
Reserve for repurchase commitments | 3,600 | 2,300 | |
Reserves Related to Consumer Loans Sold | $ 866 | 1,200 | |
Loan Repurchase | |||
Loss Contingencies [Line Items] | |||
New Claims for Mortgages Sold | Claim | 0 | ||
CountryPlace | |||
Loss Contingencies [Line Items] | |||
IRLCs recorded at fair value | $ 51,700 | ||
Gain on IRLCs | 1 | $ 153 | |
Loss on IRLCs | (208) | ||
Forward Commitments Recorded at Fair Value | 16,700 | ||
Recognized gain (loss) on forward commitments | $ (92) | $ 1,400 | $ (951) |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 02, 2022 | Apr. 03, 2021 | Mar. 28, 2020 | |
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 | ||
Number of shares of Cavco common stock available for grant under stock incentive plans | 283,208 | ||
Stock option exercise price as a percent of fair value of common stock | 100.00% | ||
Stock option expiration period | 7 years | ||
Maximum vesting period for stock options and restricted stock awards | 5 years | ||
Unrecognized compensation cost related to stock options | $ 6.3 | ||
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation cost charged against income | $ 5.1 | $ 4.4 | $ 3.9 |
Weighted-average period over stock options expected to be recognized | 1 year 10 months 13 days |
Stock-Based Compensation (Stock
Stock-Based Compensation (Stock Option Activity) (Details) - Stock Options - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Apr. 02, 2022 | Apr. 03, 2021 | Mar. 28, 2020 | |
Stock Option Activity, Number of Shares [Roll Forward] | |||
Beginning balance, shares outstanding | 251,749 | 364,174 | 411,111 |
Granted | 0 | 39,800 | 74,750 |
Exercised | (53,550) | (131,567) | (120,687) |
Canceled or forfeited | (5,286) | (20,658) | (1,000) |
Ending balance, shares outstanding | 192,913 | 251,749 | 364,174 |
Shares exercisable | 126,948 | 108,588 | 179,133 |
Stock Option Activity, Weighted Average Exercise Price [Roll Forward] | |||
Beginning balance, weighted average exercise price | $ 146.86 | $ 123.93 | $ 102.71 |
Granted | 0 | 177.61 | 145.24 |
Exercised | 107.58 | 90.49 | 63.66 |
Canceled or forfeited | 164.49 | 148.95 | 99.65 |
Ending balance, weighted average exercise price | 157.23 | 146.86 | 123.93 |
Exercisable, weighted average exercise price | $ 149.90 | $ 132.48 | $ 100.82 |
Options outstanding, weighted average remaining contractual term | 3 years 4 months 2 days | 4 years 14 days | 4 years 7 days |
Options exercisable, weighted average remaining contractual term | 2 years 9 months 25 days | 3 years 2 months 19 days | 2 years 9 months 29 days |
Options outstanding, aggregate intrinsic value | $ 16,724 | $ 34,266 | $ 49,000 |
Options exercisable, aggregate intrinsic value | 11,941 | $ 15,549 | $ 25,423 |
Weighted-average estimated fair value of employee stock options granted | $ 69.65 | $ 46.84 | |
Total intrinsic value of options exercised | $ 7,900 | $ 16,700 | $ 15,700 |
Stock-Based Compensation (Sto_2
Stock-Based Compensation (Stock Options, Fair Value Assumptions) (Details) - Stock Options | 12 Months Ended | |
Apr. 03, 2021 | Mar. 28, 2020 | |
Fair Value Assumptions and Methodology [Abstract] | ||
Volatility | 47.50% | 36.00% |
Risk-free interest rate | 0.30% | 2.00% |
Dividend yield | 0.00% | 0.00% |
Expected option life in years | 4 years 6 months 21 days | 4 years 3 months 29 days |
Estimated forfeiture rate | 7.00% | 7.00% |
Stock-Based Compensation Restri
Stock-Based Compensation Restricted Stock (Details) - shares | 12 Months Ended | |||
Apr. 02, 2022 | Apr. 03, 2021 | Mar. 28, 2020 | Jul. 02, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Outstanding | 17,524 | 11,805 | 0 | |
Awarded | 24,822 | 11,000 | 12,205 | |
Released | (3,335) | (3,465) | (400) | |
Canceled or expired | (1,310) | (1,816) | 0 | |
Outstanding | 37,701 | 17,524 | 11,805 | |
Performance-Based Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Outstanding | 12,939 | 7,305 | 0 | |
Awarded | 7,920 | 7,450 | 7,305 | |
Released | 0 | 0 | 0 | |
Canceled or expired | (805) | (1,816) | 0 | |
Outstanding | 20,054 | 12,939 | 7,305 | |
Performance-Based Awards | Forecast | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Additional performance shares expected to vest in subsequent period | 2,489 | |||
Performance-Based Awards | Unvested target performance-based RSUs that may vest based upon performance conditions through fiscal year 2022 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Outstanding | 6,333 | |||
Performance-Based Awards | Unvested target performance-based RSUs that may vest based upon performance conditions through fiscal year 2023 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Outstanding | 6,201 | |||
Performance-Based Awards | Unvested target performance-based RSUs that may vest based upon performance conditions through fiscal year 2024 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Outstanding | 7,520 | |||
Service-Based Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Outstanding | 4,585 | 4,500 | 0 | |
Awarded | 16,902 | 3,550 | 4,900 | |
Released | (3,335) | (3,465) | (400) | |
Canceled or expired | (505) | 0 | 0 | |
Outstanding | 17,647 | 4,585 | 4,500 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Apr. 02, 2022 | Apr. 03, 2021 | Mar. 28, 2020 | |
Earnings Per Share Computation | |||
Net income | $ 197,699 | $ 76,646 | $ 75,066 |
Weighted average shares outstanding: | |||
Basic (in shares) | 9,178,593 | 9,189,052 | 9,129,639 |
Effect of dilutive securities | 85,560 | 104,082 | 139,145 |
Diluted (in shares) | 9,264,153 | 9,293,134 | 9,268,784 |
Net income per basic share attributable to Cavco common stockholders: | |||
Basic (usd per share) | $ 21.54 | $ 8.34 | $ 8.22 |
Net income per diluted share attributable to Cavco common stockholders: | |||
Diluted (usd per share) | $ 21.34 | $ 8.25 | $ 8.10 |
Stock Options | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive stock equivalents excluded from computation | 405 | 19,440 | 23,336 |
Fair Value Measurements (Book V
Fair Value Measurements (Book Value and Estimated Fair Value) (Details) - USD ($) $ in Thousands | Apr. 02, 2022 | Apr. 03, 2021 | |
Summary of the Fair Value and Carrying Value of Financial Instruments | |||
Available-for-sale debt securities | $ 17,760 | $ 14,946 | |
Marketable equity securities | 16,780 | 17,600 | |
Book Value | Level 2 | |||
Summary of the Fair Value and Carrying Value of Financial Instruments | |||
Available-for-sale debt securities | [1] | 17,760 | 14,946 |
Securitized financings and other | [2] | (11,620) | (12,186) |
Book Value | Level 1 | |||
Summary of the Fair Value and Carrying Value of Financial Instruments | |||
Marketable equity securities | [3] | 16,780 | 17,600 |
Book Value | Level 3 | |||
Summary of the Fair Value and Carrying Value of Financial Instruments | |||
Non-marketable equity investments | [4] | 20,479 | 21,960 |
Consumer loans receivable | [5],[6] | 49,884 | 74,798 |
Commercial loans receivable | [6] | 68,566 | 44,314 |
Estimated Fair Value | Level 2 | |||
Summary of the Fair Value and Carrying Value of Financial Instruments | |||
Available-for-sale debt securities | [1] | 17,760 | 14,946 |
Securitized financings and other | [2] | (11,806) | (12,340) |
Estimated Fair Value | Level 1 | |||
Summary of the Fair Value and Carrying Value of Financial Instruments | |||
Marketable equity securities | [3] | 16,780 | 17,600 |
Estimated Fair Value | Level 3 | |||
Summary of the Fair Value and Carrying Value of Financial Instruments | |||
Non-marketable equity investments | [4] | 20,479 | 21,960 |
Consumer loans receivable | [5],[6] | 53,354 | 86,209 |
Commercial loans receivable | [6] | $ 65,942 | $ 42,379 |
[1] | Level 2: The fair value is based on observable market prices for identical securities. When observable market prices for identical securities are not available, we price our 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. | ||
[2] | L evel 2: The fair value is based on the discounted value of the expected remaining principal and interest cash flows. | ||
[3] | Level 1: The fair value is based on quoted market prices. | ||
[4] | Level 3: The fair value approximates book value based on the non-marketable nature of the investments. | ||
[5] | Level 3: Includes consumer loans receivable held for investment, held for sale and construction advances. | ||
[6] | Level 3: The fair value is estimated using market interest rates of comparable loans. |
Fair Value Measurements (Assump
Fair Value Measurements (Assumptions for Mortgage Servicing Rights) (Details) $ in Thousands | Apr. 02, 2022USD ($)Loans | Apr. 03, 2021USD ($)Loans |
Fair Value Disclosures [Abstract] | ||
Number of loans serviced with MSRs | Loans | 4,346 | 4,647 |
Weighted average servicing fee | 0.3159% | 0.3203% |
Capitalized servicing multiple | 85.07% | 45.93% |
Capitalized servicing rate | 0.2463% | 0.2715% |
Serviced portfolio with MSRs (in thousands) | $ 560,178 | $ 593,939 |
MSRs (in thousands) | $ 1,656 | $ 916 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 02, 2022 | Apr. 03, 2021 | Mar. 28, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Maximum loss per emolyee under insurance claims | $ 400 | ||
Medical claims expenses | $ 22,800 | $ 15,800 | $ 15,700 |
401K Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employer matching percentage | 20.00% | ||
Employee contribution rate, subject to match | 5.00% | ||
Vesting period | 4 years | ||
Employer matching contribution expense | $ 1,300 | $ 1,100 | $ 1,100 |
Maximum | 401K Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employer matching percentage | 50.00% | ||
Employee contribution rate, subject to match | 5.00% | ||
Employer maximum match per employee | $ 1 |
Multi-employer Plan (Details)
Multi-employer Plan (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 02, 2022 | Apr. 03, 2021 | Mar. 28, 2020 | |
Compensation Related Costs [Abstract] | |||
Pension Fund | IAM National Pension Fund [Member] | ||
Pension Protection Act Zone Status | Red | Red | |
RP Status Pending / Implemented | Implemented | ||
Contributions by the Company | $ 312 | $ 0 | $ 0 |
Surcharge imposed | Yes |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 02, 2022 | Apr. 03, 2021 | Mar. 28, 2020 | |
Related Party Transactions [Abstract] | |||
Net revenue | $ 58,100 | $ 46,700 | $ 51,000 |
Accounts Receivable, Related Parties | 3,300 | 4,700 | |
Commercial loans receivable from affiliates | $ 2,600 | $ 9,500 |
Acquisitions (Details)
Acquisitions (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Apr. 02, 2022 | Apr. 03, 2021 | Mar. 28, 2020 | Sep. 24, 2021 | Jul. 04, 2021 | ||
Business Acquisition [Line Items] | ||||||
Craftsman investment before purchase | $ 20,479 | $ 21,960 | ||||
Purchase price | 141,429 | 0 | $ 15,937 | |||
Goodwill | $ 100,993 | $ 75,090 | ||||
Craftsman | ||||||
Business Acquisition [Line Items] | ||||||
Initial ownership of Craftsman | 50.00% | |||||
Initial investment in Craftsman | $ 1,300 | |||||
Acquisition Date | Jul. 4, 2021 | |||||
Additional ownership in Craftsman | 20.00% | |||||
Craftsman investment before purchase | $ 2,900 | |||||
Craftsman remeasurement gain | $ 3,300 | |||||
Purchase price | 2,500 | |||||
Cash | 6,466 | |||||
Accounts receivable | 577 | |||||
Inventories | 7,146 | |||||
Property, plant and equipment | 205 | |||||
Other current assets | 416 | |||||
Intangible assets | [1] | 2,980 | ||||
Total identifiable assets acquired | 17,790 | |||||
Accounts payable and accrued liabilities | 10,028 | |||||
Net identifiable assets acquired | 7,762 | |||||
Goodwill | [2] | 4,595 | ||||
Net assets acquired | $ 12,357 | |||||
Net revenue since acquisition | 13,800 | |||||
Net income since acquisition | $ 400 | |||||
Craftsman | Minority Interest | ||||||
Business Acquisition [Line Items] | ||||||
Reedemable nonctrolling interest percentage | 30.00% | |||||
Craftsman | Mandatorily redeemable noncontrolling interest | ||||||
Business Acquisition [Line Items] | ||||||
FV of Noncontrolling interest at acquisition | $ 2,500 | |||||
Craftsman | Mandatorily redeemable noncontrolling interest | Minority Interest | ||||||
Business Acquisition [Line Items] | ||||||
Reedemable nonctrolling interest percentage | 20.00% | |||||
Craftsman | Reedemable noncontrolling interest | ||||||
Business Acquisition [Line Items] | ||||||
FV of Noncontrolling interest at acquisition | $ 1,200 | |||||
Craftsman | Reedemable noncontrolling interest | Minority Interest | ||||||
Business Acquisition [Line Items] | ||||||
Reedemable nonctrolling interest percentage | 10.00% | |||||
Craftsman | Trademarks and trade names | ||||||
Business Acquisition [Line Items] | ||||||
Trademarks and trade names | $ 3,000 | |||||
Commodore | ||||||
Business Acquisition [Line Items] | ||||||
Acquisition Date | Sep. 24, 2021 | |||||
Purchase price | $ 146,200 | |||||
Acquisition related transaction costs | 2,700 | |||||
Cash | $ 619 | |||||
Accounts receivable | 20,930 | |||||
Commercial loans | 30,922 | |||||
Inventories | 31,787 | |||||
Property, plant and equipment | [3] | 59,106 | ||||
Other current assets | 534 | |||||
Intangible assets | [4] | 12,500 | ||||
Total identifiable assets acquired | 156,398 | |||||
Accounts payable and accrued liabilities | 31,536 | |||||
Net identifiable assets acquired | 124,862 | |||||
Goodwill | [5] | $ 21,308 | ||||
Net assets acquired | 146,170 | |||||
Net revenue since acquisition | 166,700 | |||||
Net income since acquisition | $ 6,600 | |||||
Commodore | Customer-Related Intangible Assets | ||||||
Business Acquisition [Line Items] | ||||||
Finite lived intangible assets acquired | 7,200 | |||||
Finite-lived intangible asset useful life | 11 years | |||||
Commodore | Order or Production Backlog | ||||||
Business Acquisition [Line Items] | ||||||
Finite lived intangible assets acquired | 1,000 | |||||
Commodore | Noncompete Agreements | ||||||
Business Acquisition [Line Items] | ||||||
Finite lived intangible assets acquired | 500 | |||||
Finite-lived intangible asset useful life | 5 years | |||||
Commodore | Trademarks and trade names | ||||||
Business Acquisition [Line Items] | ||||||
Trademarks and trade names | $ 3,800 | |||||
[1] | Includes $3.0 million assigned to trademarks and trade names, which are considered indefinite lived intangible assets and are not subject to amortization. | |||||
[2] | Attributable to the Factory-built housing segment, all of which will be deductible for income tax purposes. | |||||
[3] | Includes assets acquired under finance leases. See Note 9 for additional information. | |||||
[4] | Includes $7.2 million assigned to customer-related intangibles, subject to a useful life of 11 years amortized on a straight-line basis; $3.8 million assigned to trademarks and trade names, which are considered indefinite lived intangible assets and are not subject to amortization; $1.0 million for acquired sales order backlogs that will be amortized over the period to produce the associated backlog; and $0.5 million for a covenant not to compete from the sellers, amortized on a straight-line basis over the term of 5 years. | |||||
[5] | Attributable to the Factory-built housing segment, all of which will be deductible for income tax purposes. |
Acquisitions Pro Forma (Details
Acquisitions Pro Forma (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Apr. 02, 2022 | Apr. 03, 2021 | |
Business Combination and Asset Acquisition [Abstract] | ||
Net revenue | $ 1,793,247 | $ 1,369,244 |
Net income attributable to Cavco common stockholders | $ 199,820 | $ 84,448 |
Diluted net income per share | $ 21.57 | $ 9.09 |
Business Segment Information (D
Business Segment Information (Details) $ in Thousands | 12 Months Ended | ||
Apr. 02, 2022USD ($)Segment | Apr. 03, 2021USD ($) | Mar. 28, 2020USD ($) | |
Business Segment Information | |||
Number of operating segments | Segment | 2 | ||
Net revenue | $ 1,627,158 | $ 1,108,051 | $ 1,061,774 |
Income before income taxes | 211,989 | 96,912 | 92,979 |
Depreciation | 9,633 | 5,577 | 5,177 |
Amortization | 1,384 | 747 | 606 |
Income tax expense | 14,247 | 20,266 | 17,913 |
Capital expenditures | 18,653 | 25,537 | $ 14,340 |
Total assets | $ 1,154,972 | $ 951,833 | |
Gross margin % | 25.10% | 21.60% | 21.70% |
Factory-built housing | |||
Business Segment Information | |||
Net revenue | $ 1,556,283 | $ 1,037,889 | $ 999,340 |
Income before income taxes | 197,282 | 78,937 | 78,531 |
Depreciation | 9,451 | 5,450 | 5,120 |
Amortization | 1,270 | 560 | 419 |
Income tax expense | 10,853 | 16,204 | 14,574 |
Capital expenditures | 18,574 | 25,465 | $ 13,211 |
Total assets | $ 929,535 | $ 711,579 | |
Gross margin % | 23.90% | 19.20% | 19.50% |
Financial services | |||
Business Segment Information | |||
Net revenue | $ 70,875 | $ 70,162 | $ 62,434 |
Income before income taxes | 14,707 | 17,975 | 14,448 |
Depreciation | 182 | 127 | 57 |
Amortization | 114 | 187 | 187 |
Income tax expense | 3,394 | 4,062 | 3,339 |
Capital expenditures | 79 | 72 | $ 1,129 |
Total assets | $ 225,437 | $ 240,254 | |
Gross margin % | 51.50% | 56.10% | 56.50% |
Finance | |||
Business Segment Information | |||
Net revenue | $ 23,004 | $ 24,195 | $ 24,894 |
Insurance | |||
Business Segment Information | |||
Net revenue | $ 47,871 | $ 45,967 | $ 37,540 |