1
REPORT TO SHAREHOLDERS FOR QUARTER ENDED DECEMBER 31, 1994
To our shareholders:
Cavco Industries, Inc. achieved record levels of sales and earnings for the
first quarter ended December 31, 1994. Sales for the quarter were $30,140,661,
a 42 percent improvement over the $21,219,830 reported last year. Net income
from continuing operations was $1,628,149 or $.48 per share, a 89 percent
improvement over the $860,622 or $.26 per share reported for the similar period
last year. Net income was $1,461,734 or $.43 per share, a 56 percent increase
over the $934,057 or $.28 per share reported for the same period last year.
All per share results have been adjusted for a three-for-two stock split
effective December 1994.
During the past year, manufactured housing units shipped showed a 20 percent
improvement over the prior year. Industry analysts are projecting continued
improvement; however, the increase in interest rates may slow industry demand.
With the production capacity we have added, our sold financial position and
strong management team we feel we are well positioned for future growth.
Sincerely,
A.R. Ghelfi, President
SUMMARY OF FINANCIAL RESULTS
CONDENSED STATEMENTS OF EARNINGS THREE MONTH PERIOD
ENDED DECEMBER 31,
1994 1993
----------- -----------
Net sales $30,140,661 $21,219,830
Earnings from continuing operations before income taxes 2,726,849 1,435,122
Income taxes 1,098,700 574,500
Net earnings from continuing operations 1,628,149 860,622
Net earnings (loss) from discontinued operations (166,415) 73,435
Net earnings 1,461,734 934,057
Earnings per share from continuing operations .48 .25
Earnings (loss) per share from discontinued operations (.05) .03
Earnings per share .43 .28
CONDENSED BALANCE SHEETS
DECEMBER 31, SEPTEMBER 30,
1994 1994
------------ -------------
ASSETS
Current Assets $22,834,857 $26,091,040
Net property, plant and equipment 9,041,859 8,529,885
Net assets under lease 4,867,126 3,594,677
Other assets 4,237,451 3,662,811
------------ -----------
Total assets $40,981,293 $41,878,513
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $15,468,290 $17,719,922
Long-term debt 5,302,901 5,413,980
Other liabilities 602,824 599,067
Stockholders' equity 19,607,278 18,145,544
----------- -----------
Total liabilities and stockholder's equity $40,981,293 $41,878,513
=========== ===========
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2
REPORT TO SHAREHOLDERS FOR QUARTER ENDED MARCH 31, 1995
To our shareholders:
We are pleased to report financial results for the second-quarter and six-month
periods ended March 31, 1995. For the second quarter, net sales were
$28,506,700, a 17 percent improvement over the $24,247,343 reported last year.
Net income from continuing operations was $956,026 or $.28 per share, compared
to the $882,844 or $.26 per share reported for the similar period last year.
Net income was $926, 761 or $.27 per share compared to the $951,077 or $.28 per
share reported for the same period last year.
Through the six months ended March 31, 1995, net sales were $58,647,361, a 28
percent increase over the $45,467,173 reported last year. Net income from
continuing operations was $2,584,174 or $.76 per share compared to the
$1,743,466 or $.51 per share reported for the same period last year. Net
income was $2,388,494 or $.70 per share, compared to $1,885,134 or $.55 per
share for the similar period last year. All per share results have been
adjusted for a three-for-two stock split effective December 1994.
As we enter the third quarter we have seen some softness in order rates and a
decline in our backlogs. We have initiated several dealer incentive programs
and value added packages to our customers. These programs have been well
received and while sales levels will remain in line with expectations, profit
margins will be negatively impacted during the current quarter.
However, the recent decline in interest rates has stimulated sales activity and
we are anticipating stronger sales and earnings during the fourth quarter that
ends September 30, 1995. We are reviewing several new marketing concepts and
look forward to reporting our progress.
Sincerely,
A.R. Ghelfi, President
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3
REPORT TO SHAREHOLDERS FOR QUARTER ENDED MARCH 31, 1995
SUMMARY OF FINANCIAL RESULTS
CONDENSED STATEMENTS OF EARNINGS THREE MONTH PERIOD SIX MONTH PERIOD
ENDED MARCH 31, ENDED MARCH 31
1995 1994 1995 1994
----------- ----------- ----------- -----------
Net sales $28,506,700 $24,247,343 $58,647,361 $45,467,173
Earnings from continuing operations before income taxes 1,583,826 1,472,404 4,310,674 2,907,569
Income taxes 627,800 589,560 1,726,500 1,164,060
Net earnings from continuing operations 956,026 882,844 2,584,174 1,743,509
Net earnings (loss) from discontinued operations (29,265) 68,233 (195,680) 141,625
Net earnings 926,761 951,077 2,388,494 1,885,134
Earnings per share from continuing operations .28 .26 .76 .52
Earnings (loss) per share from discontinued operations (.01) .02 (.06) .04
Earnings per share $.27 .28 .70 .56
CONDENSED BALANCE SHEETS
MARCH 31, SEPTEMBER 30,
1994 1994
----------- -------------
ASSETS
Current Assets $22,246,359 $26,091,040
Net property, plant and equipment 9,362,997 8,529,885
Net assets under lease 10,276,754 3,594,677
Other assets 4,514,994 3,662,811
----------- -----------
Total assets $46,401,095 $41,878,513
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $15,029,062 $17,719,922
Long-term debt 10,139,895 5,413,980
Other liabilities 698,100 599,067
Stockholders' equity 20,534,038 18,145,544
----------- -----------
Total liabilities and stockholders' equity $46,401,095 $41,878,513
=========== ===========
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4
REPORT TO SHAREHOLDERS FOR QUARTER ENDED JUNE 30, 1995
To our shareholders:
For the third quarter ended June 30, 1995, net sales were $25,914,959 compared
to the $22,188,008 reported last year. Net income from continuing operations
was $499,164 or $.15 per share compared to the $704,527 or $.20 per share
reported for the similar period last year. Net income was $494,024 or $.15 per
share compared to the $889,017 or $.26 per share reported for the same period
last year.
Through the nine months, net sales were $84,562,320, a 24 percent increase over
the $67,655,181 reported last year. Net income from continuing operations was
$3,083,338 or $.91 per share compared to the $2,448,035 or $.72 per share
reported for the same period last year. Net income was $2,882,518 or $.85 per
share compared to the $2,774,151 or $.82 per share for the similar period last
year. All per share results have been adjusted for a three-for-two stock
split effective December 1994.
While disappointed with the decline in earnings during the quarter, the recent
decline in interest rates has had a favorable impact on our business. At the
current time, our order rates and backlogs have shown substantial improvement.
This, combined with recent price increases, should result in improved
profitability during the fourth quarter over the third quarter.
Sincerely,
A.R. Ghelfi, President
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5
REPORT TO SHAREHOLDERS FOR QUARTER ENDED JUNE 30, 1995
SUMMARY OF FINANCIAL RESULTS
CONDENSED STATEMENTS OF EARNINGS THREE MONTH PERIOD NINE MONTH PERIOD
ENDED JUNE 30, ENDED JUNE 30,
1995 1994 1995 1994
----------- ---------- ----------- -----------
Net sales $25,914,959 $22,188,008 $84,562,320 $67,655,181
Earnings from continuing operations before
income taxes 766,864 1,173,267 5,077,538 4,080,835
Income taxes 267,700 468,740 1,994,200 1,632,800
Net earnings from continuing operations 499,164 704,527 3,083,338 2,448,035
Net earnings (loss) from discontinued operations (5,140) 184,490 (200,820) 326,116
Net earnings 494,024 889,017 2,882,518 2,774,151
Earnings per share from continuing operations .15 .21 .91 .72
Earnings (loss) per share from discontinued
operations .00 .05 (.06) .10
Earnings per share .15 .26 .85 .82
CONDENSED BALANCE SHEETS DECEMBER 31, SEPTEMBER 30,
1994 1994
------------ -------------
ASSETS
Current Assets $24,245,053 $26,091,140
Net property, plant and equipment 9,680,122 8,529,885
Net assets under lease 11,538,335 3,594,677
Other assets 4,631,284 3,662,811
----------- -----------
Total assets $50,094,794 $41,878,513
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $16,427,026 $17,719,922
Long-term debt 11,846,611 5,413,980
Other liabilities 793,095 599,067
Stockholders' equity 21,028,062 18,145,544
----------- -----------
Total liabilities and stockholders' equity $50,094,794 $41,878,513
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