Cavalier Announces First Quarter 2007 Results.ADDISON Addison, village (1990 pop. 32,058), Du Page co., NE Ill.; inc. 1884. An industrial suburb of Chicago, it manufactures machinery and plastic items. , Ala ALA aminolevulinic acid. Ala alanine. ala (a´lah) pl. a´lae [L.] a winglike process. . -- Cavalier cavalier (kăv'əlĭr`), in general, an armed horseman. In the English civil war the supporters of Charles I were called Cavaliers in contradistinction to the Roundheads, the followers of Parliament. Homes, Inc. (Amex: CAV (1) (Component Analog Video) See YPbPr. (2) (Constant Angular Velocity) Rotating an optical disc or hard disk at a constant speed. Contrast with "constant linear velocity" (CLV), in which the platter rotates at varying speeds. ) today announced results for the first quarter ended March 31, 2007. As expected, the Company reported lower comparative revenue and a loss for the quarter, reflecting an ongoing weakness in industry HUD-Code shipments and the absence of shipments in the current-year quarter of single-section homes under contracts for Federal Emergency Management Agency The Federal Emergency Management Agency (FEMA) is the federal agency responsible for coordinating emergency planning, preparedness, risk reduction, response, and recovery. The agency works closely with state and local governments by funding emergency programs and providing technical (FEMA FEMA, n.pr See Federal Emergency Management Agency. )-specified housing. A summary of the report follows (in thousands, except per share amounts): [TABLE OMITTED] Commenting on the results, David Roberson Roberson is a surname, and may refer to
Roberson noted that Cavalier had no FEMA home sales in the first quarter of 2007. In the first quarter of 2006, Cavalier sold 419 single-section FEMA homes, representing revenue of approximately $13,000,000. Shipments of HUD-Code floors other than FEMA declined 37% in the first quarter of 2007 versus the year-earlier period. Modular home Modular homes are houses that are divided into multiple modules or sections which are manufactured in a remote facility and then delivered to their intended site of use. The modules are assembled into a single residential building using either a crane or trucks. sales continue to be an important part of the Company's business. During the first quarter of 2007, Cavalier shipped 178 modular floors compared with 184 modular floors during the first quarter of 2006, which represented 11% of floor shipments in the first quarter of 2007 compared with 7% of floor shipments (excluding FEMA) in the year-earlier period. "Excluding the impact of FEMA shipments, we experienced a 31% decline in revenue year over year, which highlights the ongoing struggles we confront with HUD-Code housing," Roberson continued. "We also believe that the first quarter of 2006 benefited from some speculative orders in the aftermath of the 2005 Gulf Coast hurricanes. To add further perspective to our first quarter of 2007 results, we think it is important to note that on a sequential quarterly basis, our revenue and floor shipments have remained stable, even though the first quarter is seasonally the slowest period of each year. "We remain focused to improve our performance, with a goal of returning to profitability in the second half of the year," Roberson added. "With continued progress during the quarter on our new product development program, we made a solid showing and received good acceptance from buyers at recent trade shows. Additionally, the ongoing implementation of our brand management initiatives is expected to better diversify diversify To acquire a variety of assets that do not tend to change in value at the same time. To diversify a securities portfolio is to purchase different types of securities in different companies in unrelated industries. our product lines. With these efforts, we believe we can gain market share and improve top-line growth going forward. We remain confident that the strategies and product changes we have implemented will achieve these goals. Yet, we think visibility on this progress likely will not occur until the last quarter of 2007. As always, we remain prepared to adjust our capacity and take additional steps to enhance our operations should industry conditions change significantly." Roberson further noted that the Federal National Mortgage Association (Fannie Mae Fannie Mae: see Federal National Mortgage Association. ) pilot program formulated for·mu·late tr.v. for·mu·lat·ed, for·mu·lat·ing, for·mu·lates 1. a. To state as or reduce to a formula. b. To express in systematic terms or concepts. c. in late 2006 for HUD-Code manufactured multi-section homes will make financing available to the industry on an attractive basis comparable to that for site-built homes. Cavalier is participating in this program through its financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. subsidiary, CIS Cis (sĭs), same as Kish (1.) (1) (CompuServe Information Service) See CompuServe. (2) (Card Information S Financial Services. In closing, Roberson said, "Although the HUD-Code manufactured housing Manufactured housing (also known as prefab housing) is a type of housing unit that is largely assembled in factories and then transported to sites of use. In the United States, the term "manufactured home" specifically refers to a house built entirely in a protected business remains challenging, we are optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op the Fannie Mae program will help showcase the value and features inherent in our products and add momentum to the process of building increased acceptance for factory-built housing. Our homes offer attractive pricing points and choices that yield better affordability versus site-built homes - advantages we think will continue to become more apparent to the average family facing the high costs of home ownership. Additionally, we are optimistic about the long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. prospects for increased modular home business and the potential we see for working with builders and developers to integrate our competitively priced homes in new housing communities. We continue to believe significant reconstruction will occur, at some point, along the Gulf Coast when delays over insurance, flood plain requirements and other issues are resolved. Considering the close proximity of our plants to the area, we expect to participate in efforts when they commence in earnest ear·nest 1 adj. 1. Marked by or showing deep sincerity or seriousness: an earnest gesture of goodwill. 2. Of an important or weighty nature; grave. See Synonyms at serious. ." Cavalier's revenue for the first quarter of 2007 declined 43% to $42,902,000 from $74,950,000 in the year-earlier period. Home manufacturing sales, the Company's largest source of revenue, fell 44% to $40,418,000 for the quarter versus $71,834,000 in the first quarter of fiscal 2006, as floor shipments declined 44% to 1,658 floors compared with 2,963 floors in the same period last year. Other sources of revenue declined 20% to $2,484,000 in the first quarter of 2007 from $3,116,000 in the year-earlier period, reflecting primarily lower sales at the Company's retail sales centers. Gross profit for the first quarter dropped 56% to $5,980,000 from $13,669,000 in the year-earlier period, primarily reflecting lower volume. Gross margin for the quarter fell to 13.9% from 18.2% in the first quarter of 2006, due to lower sales volume and higher discounts on home sales as a result of difficult market conditions. Selling, general and administrative expenses declined 16% to $9,815,000 in the first quarter of 2007 from $11,678,000 in the year-earlier period, although as a percentage of revenue, selling, general and administrative expenses increased to 22.9% in the first quarter of 2007 from 15.6% in the same period last year. The decline in selling, general and administrative costs administrative costs, n.pl the overhead expenses incurred in the operation of a dental benefits program, excluding costs of dental services provided. primarily reflected lower salaries, wages and benefits, including incentive compensation costs, as a result of lower sales levels. The Company recorded a state income tax provision of $22,000 for the quarter, which is net of the valuation allowance for deferred income taxes (versus an income tax provision of $360,000 in the prior-year quarter). Net loss from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the for the first quarter of 2007 was $3,891,000 or $0.21 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share versus net income from continuing operations of $1,654,000 or $0.09 per diluted share in the first quarter of 2006. At the end of the quarter, Cavalier closed one of its retail sales centers and sold two others, which accounted for $589,000 of the net loss in the first quarter of 2007. In completing these steps, the Company transferred to the purchaser $1,739,000 of debt associated with its retail operations in Alabama Alabama, indigenous people of North America Alabama (ăləbăm`ə), indigenous people of North America whose language belongs to the Muskogean branch of the Hokan-Siouan linguistic stock (see Native American languages). . The two centers sold will continue to purchase the Company's products as independent exclusive dealers. Cavalier has one remaining retail sales center, which operated at break even in the first quarter of 2007 and helps support the manufacturing capacity at Cavalier's North Carolina North Carolina, state in the SE United States. It is bordered by the Atlantic Ocean (E), South Carolina and Georgia (S), Tennessee (W), and Virginia (N). Facts and Figures Area, 52,586 sq mi (136,198 sq km). Pop. facility. Commenting on the Company's financial position, Mike Murphy, Cavalier's Chief Financial Officer, said, "Cavalier ended the first quarter with cash totaling $8,988,000 versus $21,706,000 at the same time last year, which decreased primarily as a result of working capital component changes between the two periods and the repayment of $3,416,000 in long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. . Other current liabilities Other Current Liabilities A balance sheet entry used by companies to group together current liabilities that are not assigned to common liabilities such as debt obligations or accounts payable. decreased $7,934,000 to $33,552,000 at March 31, 2007 compared to $41,486,000 at April 1, 2006. Inventory totaling $26,038,000 at the end of the first quarter was 8% below the year-earlier level of $28,152,000. Likewise, accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying declined 8% to $11,169,000 at March 31, 2007, from $12,153,000 at April 1, 2006. None of the Company's $25,000,000 revolving line of credit Revolving line of credit A bank line of credit on which the customer pays a commitment fee and can take and repay funds at will. Normally a revolving LOC involves a firm commitment from the bank for a period of several years. component of the bank credit facility was outstanding at quarter's end, and $13,833,000 of this amount is currently available based on the credit facility, as amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. . Currently, Cavalier has $2,888,000 outstanding under the $10,000,000 real estate portion of this facility, which matures in 2018." Cavalier Homes, Inc. and its subsidiaries produce, sell, and finance manufactured housing. The Company markets its homes primarily through independent dealers, including exclusive dealers that carry only Cavalier products, and provides financial services primarily to retail purchasers of manufactured homes sold through its dealer network. A public, listen-only simulcast of Cavalier Homes' first quarter conference call will begin at 9:30 a.m. Eastern Daylight Time tomorrow (April 26, 2007) and may be accessed via the Company's web site, www.cavhomesinc.com, or at www.viavid.com. Investors are invited to access the simulcast at least 10 minutes before the start time in order to complete a brief registration form. A replay of this call will be available shortly after the call using this same link and will continue until May 26, 2007. With the exception of historical information, the statements made in this press release, including those containing the words "expects," "anticipates," "thinks" and "believes," and words of similar import, and those relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc industry trends and conditions, Cavalier's expectations for its results of operations during the most recent fiscal quarter and in future periods, acceptance of Cavalier's new product initiatives and the effect of these and other steps taken in the last several years on Cavalier's future sales and earnings, and Cavalier's plans and expectations for addressing current and future industry and business conditions, constitute forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. , are based upon current expectations, and are made pursuant to the "Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Such forward-looking statements involve certain known and unknown assumptions, risks and uncertainties that could cause actual results to differ materially from those included in or contemplated by the statements, including among other matters, significant competitive activity, including promotional and price competition; interest rates; increases in raw material and energy costs; changes in customer demand for Cavalier's products; inherent risks in the market place associated with new products and new product lines; and other risk factors listed from time to time in Cavalier's reports filed with the Securities and Exchange Commission, including, but not limited to, those discussed or indicated in Cavalier's Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the period ended December 31, 2006, under the heading "Item 1. Business-Risk Factors," as filed with the Securities and Exchange Commission. Cavalier disclaims any obligation to update any forward-looking statements as a result of developments occurring after the issuance of this press release.
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> >
Cavalier Homes, Inc. > >
Data Sheet - Unaudited (Continued) > >
(in thousands, except ratios and per share amounts) > >
> >
> >
> > March
April 1,
> > 2007
2006
BALANCE SHEET SUMMARY > >
Cash and cash equivalents > > $8,988
$21,706
Accounts receivable, less allowance for losses > > 11,169
12,153
Notes and installment contracts receivable, net > > 7,508
6,687
Inventories > > 26,038
28,152
Other current assets > > 2,444
2,780
Total current assets > > 56,147
71,478
Property, plant and equipment, net > > 28,017
29,352
Other assets > > 9,472
11,683
Total assets > > $93,636
$112,513
> >
Current portion of long-term debt > > $1,049
$1,540
Notes payable > > --
2,548
Other current liabilities > > 33,552
41,486
Total current liabilities > > 34,601
45,574
Long-term debt > > 4,354
7,279
Other long-term liabilities > > 289
--
Stockholders' equity > > 54,392
59,660
Total liabilities and stockholders' equity > > $93,636
$112,513
> >
OTHER INFORMATION > >
Working capital > > $21,546
$25,904
Current ratio > > 1.6 to 1
1.6 to 1
Ratio of long-term debt to equity > > 0.1 to 1
0.1 to 1
CIS installment loan portfolio > > $12,992
$13,803
Number of shares outstanding > > 18,415
18,345
Stockholders' equity per share > > $2.95
$3.25
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