Cavalier Announces Profitable First Quarter 2006.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 AMEX See: American Stock Exchange : 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 April 1, 2006. Highlights of the Company's report were as follows (in thousands, except per share amounts):
First Quarter Ended
--------------------
April 1, April 2,
2006 2005
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Revenue $ 74,950 $ 55,122
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Income (loss) from continuing operations
before income taxes $ 1,763 $ (888)
Income tax provision (benefit) 360 (141)
Equity in earnings of equity-method investees 251 249
-------- --------
Income (loss) from continuing operations 1,654 (498)
Income (loss) from discontinued operations 12 (1,656)
-------- --------
Net income (loss) $ 1,666 $ (2,154)
======== ========
Diluted net income (loss) per share:
From continuing operations $ 0.09 $ (0.03)
From discontinued operations 0.00 (0.09)
-------- --------
$ 0.09 $ (0.12)
======== ========
Weighted average diluted shares outstanding 18,490 18,031
======== ========
Commenting on the results, David Roberson Roberson is a surname, and may refer to
n.pr See Federal Emergency Management Agency. business, revenue for the first quarter still advanced from the year-earlier quarter even as non-FEMA home shipments declined slightly. "As our core business activity in the first quarter reflects - with shipments of non-FEMA homes to independent dealers declining 2% from the year-earlier level - the industry environment continues to be fragile fragile - brittle and uncertain," Roberson continued. "Sales are still restrained by the lack of sufficient financing capacity and the industry has felt only a modest impact from the potential new demand for housing that we anticipated in the aftermath AFTERMATH. A right to have the last crop of grass or pasturage. 1 Chit. Pr. 181. of last year's hurricanes. Long term, the lack of financing capacity must be resolved for sustainable industry growth to occur. As to recent hurricane hurricane, tropical cyclone in which winds attain speeds greater than 74 mi (119 km) per hr. Wind speeds reach over 190 mi (289 km) per hr in some hurricanes. damage in the Gulf Coast region, including the impact on housing stock, we continue to expect that it ultimately may create shortages of skilled craftsmen and cost pressures on raw materials. We also think these conditions may provide our industry with an opportunity to showcase A showcase, or vitrine, is a glassed-in cabinet or case for displaying delicate or valuable articles such as objects d'art or merchandise in a shop, museum, or house. how we can close the gap between site-built and factory-built homes with a new generation of efficient, feature-packed and architecturally pleasing multiple-section homes, delivering a new level of value and affordability to homebuyers. "Now that FEMA has released its long-awaited revisions ReVisions is a 2004 anthology of alternate history short-stories. It is edited by Julie E. Czerneda and Isaac Szpindel. Contents Title Author The Resonance of Light James Alan Gardner Out of China Julie E. to flood flood, in hydrology flood, inundation of land by the rise and overflow of a body of water. Floods occur most commonly when water from heavy rainfall, from melting ice and snow, or from a combination of these exceeds the carrying capacity of the river plain maps, we anticipate a slow increase in recovery and rebuilding activity," Roberson added. "The scale of this damage is unprecedented, and it will take some time for these efforts to gain traction Traction Definition Traction is the use of a pulling force to treat muscle and skeleton disorders. Purpose Traction is usually applied to the arms and legs, the neck, the backbone, or the pelvis. , but as that occurs, we are hopeful it will produce an upturn in orders for 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 . With a substantial portion of our manufacturing capacity located in the Southeast Southeast or south east is the ordinal direction halfway between south and east. It the opposite of northwest. Southeast or South East can refer to: Cavalier's revenue for the first quarter of 2006 increased 36% to $74,950,000 from $55,122,000 in the year-earlier period. Home manufacturing sales, the Company's largest source of revenue, increased 36% to $71,834,000 for the quarter versus $52,798,000 in the first quarter of fiscal 2005, as floor shipments 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 rose 11% to 2,963 floors compared with 2,676 floors in the same period last year. Total floor shipments, including those from discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. , increased 5% from 2,824 floors in the first quarter of fiscal 2005. Other sources of revenue increased 34% to $3,116,000 in the first quarter of 2006 from $2,324,000 in the year-earlier period, reflecting greater sales activity at the Company's retail sales centers and higher levels of installment loan Noun 1. installment loan - a loan repaid with interest in equal periodic payments installment credit consumer credit - a line of credit extended for personal or household use loan - the temporary provision of money (usually at interest) sales. During 2005, the Company entered into contracts to build a total of 2,638 single-section homes for FEMA with an aggregate revenue value, including shipping, of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $81,000,000. These homes carried selling prices above the Company's standard product because of FEMA's unique specifications. In 2005, Cavalier shipped 2,219 FEMA homes for revenue of $68,000,000. In the first quarter of 2006, the Company completed shipments of the final 419 homes under these contracts, which added approximately $13,000,000 to first quarter 2006 revenue. The Company had no FEMA shipments in the year-earlier quarter. Gross profit for the first quarter increased 59% to $13,669,000 from $8,623,000 in the year-earlier period, primarily reflecting higher volume. Gross margin for the quarter increased to 18.2% from 15.6% in the first quarter of 2005, primarily because of higher selling prices in response to the steady increases in raw material costs that have taken place over the past year, a shift in product mix, and increased production efficiencies. Selling, general and administrative expenses increased 24% to $11,678,000 in the first quarter of 2006 from $9,426,000 in the year-earlier period, although as a percentage of revenue, selling, general and administrative expenses declined to 15.6% in the first quarter from 17.1% in the same period last year. The $2,252,000 increase 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. reflected primarily higher compensation costs, including incentive compensation on the Company's improved profits, and increased employee benefit costs related primarily to health insurance expense on a higher level of employment for the current-year period, due in part to the reopening Reopening Treasury offerings of additional amounts of outstanding issues, rather than an entirely new issue. A reopened issue will always have the same maturity date, CUSIP number, and interest rate as the original issue. of the Company's Winfield Winfield, city (1990 pop. 11,931), seat of Cowley co., S central Kans., on the Walnut River; inc. 1873. The economy is based on agricultural and oil and gas wells. Among Winfield's manufactures are gas burners, steel drums, industrial boilers, and aircraft parts. facility. The Company had no impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. and other related charges in the first quarter of 2006 (versus $143,000 in the year-earlier period) and recorded an income tax provision of $360,000 for the period (versus an income tax benefit of $141,000 in the prior-year quarter). The current quarter's provision reflected a 36% effective tax rate, or $732,000, against which the Company reversed, after review, $372,000 of its deferred tax asset valuation allowance. Net income from continuing operations for the first quarter of 2006 was $1,654,000 or $0.09 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 a net loss from continuing operations of $498,000 or $0.03 per diluted share in the first quarter of 2005. In February February: see month. 2005, Cavalier closed its plant in Fort Worth, Texas Fort Worth is the fifth-largest city in the state of Texas, 18th-largest city in the United States[1], and voted one of "America’s Most Livable Communities. , and has accounted for the plant as discontinued operations in its financial results. For the first quarter of 2006, the Company had income from discontinued operations of $12,000 or $0.00 per diluted share versus a loss from discontinued operations in the year-earlier period of $1,656,000 or $0.09 per diluted share, which included previously reported impairment charges related to the plant. Net income for the first quarter of 2006, reflecting both continuing and discontinued operations, totaled $1,666,000 or $0.09 per diluted share versus a net loss of $2,154,000 or $0.12 per diluted share in the same period last year. Commenting on the Company's financial position, Mike Murphy, Cavalier's Chief Financial Officer, pointed out that Cavalier ended the first quarter with cash and cash equivalents totaling $21,706,000 versus $14,379,000 at December December: see month. 31, 2005, and $19,542,000 at the end of the first quarter last year. The change in cash and cash equivalents from year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. 2005 reflected primarily the collection of 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 related to FEMA shipments in the fourth quarter of 2005. The combined total for accounts receivable and inventory at the end of the first quarter was $40,305,000 versus $66,756,000 at the end of 2005 and $33,791,000 at the end of the first quarter of 2005. Again, the decline in accounts receivable and inventory from year-end 2005 reflected primarily the completion of the Company's FEMA shipments. Approximately $675,000 in FEMA accounts receivable was outstanding at the end of the first quarter of 2006 versus $1,480,000 at April 2, 2005; both amounts were subsequently collected in the second quarter of 2006 and 2005, respectively. To support FEMA orders in 2005, the Company negotiated increases through June June: see month. 2006 in the 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 its bank credit facility, raising the limit to $50,000,000, subject to collateral collateral (kəlăt`ərəl), something of value given or pledged as security for payment of a loan. Collateral consists usually of financial instruments, such as stocks, bonds, and negotiable paper, rather than physical goods, although requirements, from its previous $15,000,000 limit. At April 1, 2006, there was no outstanding balance under the revolving line of credit. Concluding, Roberson said, "While we are encouraged by the Company's performance in the first quarter of 2006, we recognize that the industry requires additional financing capacity for retail customers and dealers to achieve fundamental growth from the current equilibrium point In mathematics, the point  is an equilibrium point for the differential equationAlabama (ăləbăm`ə), indigenous people of North America whose language belongs to the Muskogean branch of the Hokan-Siouan linguistic stock (see Native American languages). plants remain soft and the second quarter, without the benefit of FEMA shipments, likely will not match our first quarter. Still, we expect the Company to remain profitable in the second quarter and the year as a whole because of the improvements we have made to our manufacturing and cost structures. Longer term, we are working diligently dil·i·gent adj. Marked by persevering, painstaking effort. See Synonyms at busy. [Middle English, from Old French, from Latin d to bring new products to market that demonstrate significant value for homebuyers and new and interesting housing alternatives for subdivision developers." 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 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. primarily to retail purchasers of manufactured homes sold through its dealer network. A public, listen-only simulcast Simulcast is a portmanteau of "simultaneous broadcast", and refers to programs or events broadcast across more than one medium, or more than one service on the same medium, at the same time. of Cavalier Homes' first quarter conference call will begin at 9:30 a.m. Eastern Daylight For other uses, see Daylight (disambiguation). Daylight or the light of day is the combination of all direct and indirect sunlight outdoors during the daytime (and perhaps twilight). Time tomorrow (May 3, 2006) 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 June 3, 2006. 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, 2005, 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.
Cavalier Homes, Inc.
Data Sheet - Unaudited
(in thousands, except per share amounts)
First Quarter Ended
--------------------
April 1, April 2,
STATEMENT OF OPERATIONS SUMMARY 2006 2005
-------- --------
Home manufacturing net sales $ 71,834 $ 52,798
Financial services 909 513
Retail 2,207 1,811
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Total revenue $ 74,950 $ 55,122
======== ========
Cost of sales 61,281 46,499
-------- --------
Gross profit 13,669 8,623
Selling, general and administrative 11,678 9,426
Impairment and other related charges -- 143
-------- --------
Operating income (loss) 1,991 (946)
-------- --------
Other income (expense):
Interest expense (377) (266)
Other, net 149 324
-------- --------
(228) 58
-------- --------
Income (loss) from continuing operations
before income taxes 1,763 (888)
Income tax provision (benefit) 360 (141)
Equity in earnings of equity-method investees 251 249
-------- --------
Income (loss) from continuing operations 1,654 (498)
Income (loss) from discontinued operations, net 12 (1,656)
-------- --------
Net income (loss) $ 1,666 $ (2,154)
======== ========
Basic net income (loss) per share:
From continuing operations $ 0.09 $ (0.03)
From discontinued operations 0.00 (0.09)
-------- --------
Net income (loss) $ 0.09 $ (0.12)
======== ========
Diluted net income (loss) per share:
From continuing operations $ 0.09 $ (0.03)
From discontinued operations 0.00 (0.09)
-------- --------
Net income (loss) $ 0.09 $ (0.12)
======== ========
Weighted average shares outstanding:
Basic 18,308 18,031
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Diluted 18,490 18,031
======== ========
Cavalier Homes, Inc. Data Sheet (Continued)
Unaudited
(in thousands, except per share amounts)
First Quarter Ended
--------------------
April 1, April 2,
OPERATING DATA SUMMARY 2006 2005
Manufacturing sales: -------- --------
Floor shipments:
Continuing operations 2,963 2,676
Discontinued operations -- 148
-------- --------
Total floor shipments 2,963 2,824
======== ========
Home shipments:
Single section:
Continuing operations 889 246
Discontinued operations -- 20
Multi-section:
Continuing operations 1,031 1,210
Discontinued operations -- 64
-------- --------
Total home shipments 1,920 1,540
Shipments to company-owned retail locations (45) (49)
FEMA shipments (419) --
-------- --------
Wholesale shipments to independent retailers 1,456 1,491
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Retail sales:
Single section 12 10
Multi-section 29 27
-------- --------
Total sales 41 37
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Cavalier produced homes sold 38 33
======== ========
Used homes sold 3 4
======== ========
Independent exclusive dealer locations 107 121
Company-owned stores 4 4
Home manufacturing facilities -- operating 7 6
Installment loan purchases $ 10,106 $ 6,385
April 1, April 2,
2006 2005
-------- --------
BALANCE SHEET SUMMARY
Cash and cash equivalents $ 21,706 $ 19,542
Accounts receivable, less allowance for
losses 12,153 11,745
Inventories 28,152 22,046
Other current assets 9,467 5,690
-------- --------
Total current assets 71,478 59,023
-------- --------
Property, plant and equipment, net 29,352 30,442
Other assets 11,683 10,489
-------- --------
Total assets $112,513 $ 99,954
======== ========
Current portion of long-term debt $ 1,540 $ 3,955
Other current liabilities 44,034 43,655
-------- --------
Total current liabilities 45,574 47,610
-------- --------
Long-term debt 7,279 8,651
Deferred income taxes -- 415
Stockholders' equity 59,660 43,278
-------- --------
Total liabilities and stockholders' equity $112,513 $ 99,954
======== ========
OTHER INFORMATION
Working capital $ 25,904 $ 11,413
Current ratio 1.6 to 1 1.2 to 1
Ratio of long-term debt to equity 0.1 to 1 0.2 to 1
CIS installment loan portfolio $ 13,803 $ 8,984
Number of shares outstanding 18,345 18,035
Stockholders' equity per share $ 3.25 $ 2.40
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