Cavco Industries (CVCO) 8-K Results of Operations and Financial Condition

Exhibit 99.1

	For additional information, contact:
	Joseph Stegmayer
	Chairman and CEO
	Phone: 602-256-6263
	joes@cavco.com
News Release
	On the Internet:
	www.cavco.com

FOR IMMEDIATE RELEASE

CAVCO INDUSTRIES REPORTS SECOND QUARTER RESULTS
Sales $38.4 million
Net income $1.9 million

PHOENIX, AZ —(October 25, 2007) — Cavco Industries, Inc. (NASDAQ: CVCO) today announced financial results for the second quarter and first six months of fiscal 2008 ended September 30, 2007.

          Net sales for the second quarter totaled $38,435,000, down 11% from $43,063,000 for the second quarter of fiscal year 2007.

          Net income for the second quarter of $1,909,000 was 41% below the $3,217,000 reported in the same quarter one year ago. Net income per share based on basic and diluted weighted average shares outstanding was $0.30 and $0.29, respectively, versus $0.51 and $0.49, respectively last year.

          For the first six months of fiscal 2008, net sales decreased 22% to $75,801,000 from $97,113,000 for the comparable prior year period, and net income declined 52% to $3,644,000 from $7,551,000 last year. For the first half of fiscal 2008, net income per share based on basic and diluted weighted average shares outstanding was $0.57 and $0.55, respectively, versus $1.19 and $1.14, respectively for the year-earlier period.

          Commenting on the results, Joseph Stegmayer, Chairman, President and Chief Executive Officer, said, “The second quarter of fiscal 2008 has proven to be difficult, as expected. The reported turmoil in the mortgage loan markets and the overall housing sector weakness continue to affect our order rates and sales volume. While we have been successful in maintaining market share in our core region, the market itself remains depressed, with manufactured home shipments for the first eight months of the calendar year down 23% nationally and 43% in Arizona and California.”

          Mr. Stegmayer concluded, “Although the strong headwinds in the market place will continue to be a challenge, we will remain focused on expanding the value and diversity of our product offerings. Tailoring homes to meet the needs of our customers coupled with a strong commitment to customer satisfaction and service are core competencies that will contribute to our long term success.”

          Cavco’s senior management will hold a conference call to review these results tomorrow, October 26, 2007, at 12:00 noon (Eastern Time). Interested parties can access a live webcast of the conference call on the Internet atwww.cavco.com under the Investor Relations link, or the web sitewww.earnings.com. An archive of the webcast and presentation will be available for 90 days at these website addresses.

          Cavco Industries, Inc., headquartered in Phoenix, is the largest producer of manufactured homes in Arizona, based on wholesale shipments. The Company is also a leading producer of park model homes and vacation cabins in the United States.

          Certain statements contained in this release are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities and Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. In general, all statements that are not historical in nature are forward-looking. Forward-looking statements are typically included, for example, in discussions regarding the manufactured housing and site-built housing industries; our financial performance and operating results; and the expected effect of certain risks and uncertainties on our business, financial condition and results of operations. All forward-looking statements are subject to risks and uncertainties, many of which are beyond our control. As a result, our actual results or performance may differ materially from anticipated results or performance. Factors that could cause such differences to occur include, but are not limited to, adverse industry conditions, a write-off of all or part of our goodwill could adversely affect operating results and net worth, the cyclical and seasonal nature of our business, limitations on our ability to raise capital, curtailment of available financing in the manufactured housing industry, our contingent repurchase obligations related to wholesale financing, competition, our ability to maintain relationships with retailers, labor shortages, pricing and availability of raw materials and unfavorable zoning ordinances, together with all of the other risks described in our filings with the Securities and Exchange Commission. Readers are specifically referred to the Risk Factors described in Item 1A of the 2007Form 10-K, as may be amended from time to time, which identify important risks that could cause actual results to differ from those contained in the forward-looking statements. Cavco expressly disclaims any obligation to update any forward-looking statements contained in this release, whether as a result of new information, future events or otherwise. Investors should not place any reliance on any such forward-looking statements.

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CAVCO INDUSTRIES, INC.
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)

	September 30,			March 31,
	2007			2007
	(Unaudited)
ASSETS
Current assets
Cash and cash equivalents	$	6,640		$	12,976
Short-term investments		64,675			50,900
Restricted cash		323			339
Accounts receivable		8,641			8,107
Inventories		11,689			13,464
Prepaid expenses and other current assets		1,874			2,273
Deferred income taxes		4,018			3,930
Total current assets		97,860			91,989
Property, plant and equipment, at cost:
Land		6,050			6,050
Buildings and improvements		7,207			7,029
Machinery and equipment		7,874			7,617
		21,131			20,696
Accumulated depreciation		(8,215	)		(7,894	)
		12,916			12,802
Goodwill		67,346			67,346
Total assets	$	178,122		$	172,137
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	2,479		$	2,868
Accrued liabilities		18,934			18,417
Total current liabilities		21,413			21,285
Deferred income taxes		13,802			12,760
Commitments and contingencies
Stockholders’ equity
Preferred Stock, $.01 par value; 1,000,000 shares authorized; No shares issued or outstanding		—			—
Common Stock, $.01 par value; 20,000,000 shares authorized; Outstanding 6,425,165 and 6,382,980 shares, respectively		64			64
Additional paid-in capital		124,039			122,868
Retained earnings		18,804			15,160
Total stockholders’ equity		142,907			138,092
Total liabilities and stockholders’ equity	$	178,122		$	172,137

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CAVCO INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share amounts)
(Unaudited)

	Three Months Ended				Six Months Ended
	September 30,				September 30,
	2007		2006		2007		2006
Net sales	$	38,435	$	43,063	$	75,801	$	97,113
Cost of sales		32,887		35,014		64,813		78,445
Gross profit		5,548		8,049		10,988		18,668
Selling, general and administrative expenses		3,555		3,718		7,129		8,139
Income from operations		1,993		4,331		3,859		10,529
Interest income		718		619		1,389		1,193
Income before income taxes		2,711		4,950		5,248		11,722
Income tax expense		802		1,733		1,604		4,171
Net income	$	1,909	$	3,217	$	3,644	$	7,551
Net income per share:
Basic	$	0.30	$	0.51	$	0.57	$	1.19
Diluted	$	0.29	$	0.49	$	0.55	$	1.14
Weighted average shares outstanding:
Basic		6,423,387		6,358,980		6,411,961		6,357,399
Diluted		6,660,242		6,602,291		6,656,135		6,623,719

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CAVCO INDUSTRIES, INC.
Other Operating Data — Continuing Operations
(Dollars in thousands, except average sales price amounts)
(Unaudited)

	Three Months Ended						Six Months Ended
	September 30,						September 30,
	2007			2006			2007			2006
Net sales
Manufacturing	$	35,130		$	41,376		$	71,368		$	92,944
Retail		4,414			3,477			7,024			7,796
Less: Intercompany		(1,109	)		(1,790	)		(2,591	)		(3,627	)
Net sales	$	38,435		$	43,063		$	75,801		$	97,113
Floor shipments — manufacturing		1,317			1,494			2,656			3,350
Average sales price per floor - - manufacturing	$	26,674		$	27,695		$	26,870		$	27,744
Home shipments — manufacturing		823			905			1,679			1,968
Average sales price per home - manufacturing	$	42,685		$	45,719		$	42,506		$	47,228
Home shipments — retail		67			33			96			76
Capital expenditures	$	225		$	214		$	501		$	714
Depreciation	$	197		$	140		$	387		$	372

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