Exhibit 99.1
FOR IMMEDIATE RELEASE
CAVCO INDUSTRIES REPORTS FOURTH QUARTER RESULTS
Net sales $34.2 million
Net income $1.3 million
PHOENIX —(May 1, 2008) – Cavco Industries, Inc. (NASDAQ: CVCO) today announced financial results for the fourth quarter and fiscal year 2008 ended March 31, 2008.
Net sales for the fourth quarter of fiscal 2008 totaled $34,204,000, up 1% from $33,812,000 for the fourth quarter of fiscal year 2007.
Net income for the fiscal 2008 fourth quarter of $1,303,000 was 26% below the $1,759,000 reported in the same quarter one year ago. Net income per share based on basic and diluted weighted average shares outstanding was $0.20, versus $0.28 and $0.27, respectively last year.
For the fiscal year ended March 31, 2008, net sales decreased 16% to $141,914,000 from $169,114,000 for fiscal year 2007, and net income declined 45% to $6,312,000 from $11,549,000 last year. For fiscal 2008, net income per share based on basic and diluted weighted average shares outstanding was $0.98 and $0.95, respectively, versus $1.81 and $1.74, respectively for the year-earlier period.
“Our fourth quarter results were adversely impacted by continued declines in industry shipments of factory built homes, particularly in our core markets of Arizona and California. In view of the state of the housing industry and the general economy, we are proud that our people produced profitable financial results and that we achieved some success in market share improvement and expanded distribution,” stated Joseph Stegmayer, Chairman, President and Chief Executive Officer of Cavco Industries, Inc.
“Amid the uncertain U.S. economic outlook, it is not possible to predict the conditions we may face in the months ahead. We do believe, however, that the affordable housing we build should play an increasing role in serving our nation’s housing needs given the tighter credit markets and the absence of the aggressive mortgage financing of recent years that enabled a disproportionate number of buyers to consider more expensive homes,” Mr. Stegmayer continued.
“Meanwhile, Cavco’s strong financial condition provides us the flexibility to consider various ways to position ourselves for increased growth opportunities as market conditions improve. At March 31, 2008 cash and cash equivalents were $73.6 million and we had no short or long-term debt outstanding,” Mr. Stegmayer concluded.
Cavco’s senior management will hold a conference call to review these results tomorrow, May 2, 2008, 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.opencompany.info. 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; general economic conditions; a write-off of all or part of our goodwill, which 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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