PHOENIX, Aug. 5, 2010 (GLOBE NEWSWIRE) -- Cavco Industries, Inc. (Nasdaq:CVCO) today announced financial results for the first quarter of its fiscal year 2011 ended June 30, 2010.
Net sales for the first quarter of fiscal 2011 totaled $47,505,000, up 249% from $13,595,000 for the first quarter of fiscal year 2010. The first quarter 2011 results include the Fleetwood Homes operations which, as previously reported, were acquired during the second quarter of fiscal year 2010.
Net income attributable to Cavco stockholders for the fiscal 2011 first quarter was $518,000 compared to net loss of $1,449,000 reported in the same quarter one year ago. Net income per share based on basic and diluted weighted average shares outstanding was $0.08 versus basic and diluted net loss per share of $0.22 last year."We are pleased to report positive earnings for the first quarter of the new fiscal year, however there remain a number of impediments to the company's achievement of sustained, satisfactory operating results. Incoming order rates are still turbulent, limiting our factories' opportunities to increase production levels and hampering efficient production planning and execution. Additionally, gross margins continue to be adversely impacted by a product mix favoring smaller, less amenitized homes," said Joseph Stegmayer, Chairman, President and Chief Executive Officer, while commenting on the quarter. Mr. Stegmayer continued, "Challenges pertaining to consumer manufactured home lending abound including restrictive underwriting guidelines, irregular appraisal processes, and limited secondary market availability for manufactured home loans. To address these negative forces, we and the industry as a whole continue to work with lenders and regulators on ways to improve the prospects for the borrowing needs of buyers of affordable factory built housing." "The second quarter of fiscal year 2011 that we have now begun marks the one-year anniversary of the Fleetwood Homes business combination. We believe the integration of Fleetwood Homes has gone well, and that we are properly positioned to take advantage of opportunities to further improve our operating performance," Mr. Stegmayer concluded.