According to cnnmoney, net revenue for Q1 2016 was $161.7 million, an increase of 16.2 percent over the $139.2 million reported in the comparable period of 2015. The increase is attributed to sales resulting from Cavco’s acquisitions of Chariot Eagle and Fairmont Homes this year, both of which are manufactured home (MH) producers. In addition, both Chariot and Fairmont manufacture Park Model recreational vehicles (RVs); Fairmont produces modular homes as well.
Income before taxes was $8.6 million for Q1 2016, a $0.3 million drop from the $8.9 million reported in Q1 2015, largely due to the manufactured home insurance subsidiary’s claims generated by the excessive storms in Texas. Rainfall in the first six months of 2015 was 80 percent higher than normal, marking the wettest year-to-date. Net income dropped slightly from $5.8 million in the previous year’s first quarter to $5.4 million Q1 2016.
Joseph Stegmayer, Chairman, President and Chief Executive Officer said, “We continue to be excited about the opportunities these businesses (Fairmont and Chariot) bring to our family of companies and expect future revenue and earnings growth as the integration process continues. The financial services segment’s earnings were significantly impacted this quarter by unpredictably high insurance claims activity.”
Mr. Stegmayer concluded, “The Company has expanded to provide a broad range of systems-built housing solutions in most of the key market regions in the United States and Canada. Meanwhile, Cavco has maintained a solid financial structure to support continued growth. While the manufactured housing industry is still faced with challenging economic and regulatory conditions, we believe that our organization is well positioned in the current environment as well as for the longer term.“
As MHProNews knows, Cavco is the second largest producer of manufactured and modular homes in the nation. ##
(Image credit: Cavco Industries, Inc.–Cavco lapsided home)
