Cavalier Announces Profitable Second Quarter 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 financial results for the second quarter and six months ended July July: see month. 1, 2006. A summary of the Company's report follows (in thousands, except per share amounts):
Second Quarter Ended Six Months Ended
------------------- -------------------
July 1, July 2, July 1, July 2,
2006 2005 2006 2005
-------- -------- -------- --------
Revenue $ 58,775 $ 60,002 $133,725 $115,124
======== ======== ======== ========
Income from continuing
operations before
income taxes 187 911 1,950 23
Income tax provision
(benefit) 124 56 484 (85)
Equity in earnings of
equity-method
investees 98 119 349 368
-------- -------- -------- --------
Income from continuing
operations 161 974 1,815 476
Income (loss) from
discontinued operations -- (205) 12 (1,861)
-------- -------- -------- --------
Net income (loss) $ 161 $ 769 $ 1,827 $ (1,385)
======== ======== ======== ========
Diluted net income
(loss) per share:
From continuing
operations $ 0.01 $ 0.05 $ 0.10 $ 0.02
From discontinued
operations 0.00 (0.01) 0.00 (0.10)
-------- -------- -------- --------
Net income (loss) $ 0.01 $ 0.04 $ 0.10 $ (0.08)
======== ======== ======== ========
Weighted average
diluted shares
outstanding 18,502 18,229 18,494 18,034
======== ======== ======== ========
Commenting on the results, David Roberson Roberson is a surname, and may refer to
tr.v. grat·i·fied, grat·i·fy·ing, grat·i·fies 1. To please or satisfy: His achievement gratified his father. See Synonyms at please. 2. that Cavalier remained profitable in the second quarter, even as conditions in the home manufacturing industry continued to be challenging. Earlier this year, we completed the last shipments under 2005 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. ) homes, which boosted first quarter 2006 floor shipments beyond underlying demand levels. Now that we are past this FEMA bulge Bulge A slang term used to describe a rapid advance in prices within the commodities market. Notes: A bulge is similar to a rally on equity exchanges. See also: At The Market, Bear, Break, Bull, Buoyant, Congestion, Rally Bulge , shipment levels for the industry and Cavalier better reflect the underlying fundamental trend 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 , which in our view is slightly weaker than at this point in 2005 and continues to be pressured by a lack of new finance capacity for wholesale and retail sales. Evidence of this is provided by the latest shipment statistics through May, which so far point to a 5.2% decline in industry floor shipments for HUD-Code homes in the second quarter; for the full second quarter, Cavalier reported an 11.6% decline in floor shipments. "As 2006 began, we expressed our expectations for an increase in our HUD-Code home business during the year, outside of FEMA demand, largely because of anticipated storm reconstruction and home replacement activities along the Gulf Coast," Roberson continued. "We expected that this incremental Additional or increased growth, bulk, quantity, number, or value; enlarged. Incremental cost is additional or increased cost of an item or service apart from its actual cost. demand, in turn, would help us sustain profitability in 2006 without the need for further government contracts. At the same time, we saw it providing needed momentum to our operations this year while we build our footprint The amount of geographic space covered by an object. A computer footprint is the desk or floor surface it occupies. A satellite's footprint is the earth area covered by its downlink. See form factor. 1. in the modular side of our business and work to stabilize stabilize See peg. our core HUD-Code housing operations. "Through the first half of 2006, I believe we continue to track with these general views," Roberson added, "although clearly reconstruction and replacement efforts have not developed at the pace we expected, reflecting a complex and unpredictable interplay in·ter·play n. Reciprocal action and reaction; interaction. intr.v. in·ter·played, in·ter·play·ing, in·ter·plays To act or react on each other; interact. of FEMA, insurance claims and other rebuilding issues. Also, our second quarter shipments were somewhat below our expectations due to tougher market conditions in our East Coast markets, which were offset partially by improvements in our 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). operations. Despite slightly lower shipments in the second quarter, we were pleased to achieve a higher gross margin versus the second quarter last year." Concluding, Roberson said, "At this mid-year point, we remain hopeful that our HUD-Code business will improve in the second half of 2006, as more home replacements occur along storm-stricken areas of the Gulf Coast. We already have seen evidence of this in some areas of Louisiana CODE, OF LOUISIANA. In 1822, Peter Derbigny, Edward Livingston, and Moreau Lislet, were selected by the legislature to revise and amend the civil code, and to add to it such laws still in force as were not included therein. in the wake of Hurricane Rita Hurricane Rita was the fourth-most intense Atlantic hurricane ever recorded and the most intense tropical cyclone ever observed in the Gulf of Mexico. Rita caused $11.3 billion in damage on the U.S. Gulf Coast in September 2005. . We also expect to improve our performance in East Coast markets in the second half. Together, we hope these factors will lend increased momentum to our business and help us sustain profitability throughout the year. If we accomplish these financial and operational objectives against the backdrop Backdrop may refer to:
Total revenue for the second quarter declined 2% from the same period last year. The decrease reflected lower home manufacturing net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight - the largest component of revenue, which dipped dip v. dipped, dip·ping, dips v.tr. 1. To plunge briefly into a liquid, as in order to wet, coat, or saturate. 2. to $55,270,000 for the quarter versus $56,575,000 for the second quarter of 2005. Floor shipments declined 11% to 2,394 floors in the second quarter of 2006 versus 2,690 floors in the same period last year. Gross profit for the second quarter improved 1% or $150,000 to $10,402,000 from $10,252,000, even with lower floor shipments, primarily as wholesale selling prices continued to increase following a run-up run-up or run·up n. An often sudden increase: a run-up in interest rates; a run-up in food prices; a run-up in house values. Noun 1. in raw material costs over much of the past year. Gross margin for the second quarter increased to 17.7% versus 17.1% in the same quarter last year. Cavalier's gross profit declined from 18.2% in the first quarter of 2006 as the Company's product mix in the second quarter reflected no FEMA shipments, which carried selling prices above the Company's standard product due to FEMA's unique specifications. During the second quarter, selling, general and administrative expenses increased 11% or $1,011,000 to $10,271,000 from $9,260,000 in the second quarter last year, with the year-earlier period benefiting from gains of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $139,000 on the sales of property. Selling, general and administrative expenses were 17.5% of revenue in the second quarter of 2006, up from 15.6% in the first quarter of 2006 and 15.4% in the second quarter of 2005. The increase in selling, general and administrative expenses reflected primarily higher compensation and employee benefit costs, especially for health care insurance. In part, this increase related 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 plant in Winfield, Alabama Winfield is a city in Marion County, Alabama, United States. At the 2000 census the population was 4,540, the second largest city in the county. Johnny Micheal Spann is a notable Winfield citizen. . 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. charges in the second quarter of 2006 or the year-earlier period. Cavalier's revenue for the first half of 2006 rose 16% compared with the first half of 2005. Home manufacturing sales increased to $127,104,000 for the year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. period (including approximately $13,000,000 in sales under FEMA contracts that the Company entered into during 2005) versus $109,373,000 in the same period last year. First half shipments declined 3% to 5,357 floors (including 419 floors/FEMA homes) compared with 5,514 floors in the first six months of 2005. The Company had no FEMA shipments in the first half of 2005. Other sources of revenue increased 15% to $6,621,000 in the first quarter of 2006 from $5,751,000 in the year-earlier period, reflecting improved sales at the Company'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. retail sales center and a higher level 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. Gross profit for the first half of 2006 increased 28% or $5,196,000 to $24,071,000 from $18,875,000 on higher revenue. Gross margin for the first six months of 2006 improved to 18.0% versus 16.4% in the same period last year, primarily because of higher wholesale selling prices and the inclusion of FEMA shipments this year. During the first half of 2006, selling, general and administrative expenses increased 17% or $3,263,000 to $21,949,000 from $18,686,000 in the year-earlier period. Selling, general and administrative expenses were 16.4% of revenue in the first half of 2006 versus 16.2% of revenue in the first half of 2005. The increase in selling, general and administrative expenses in the first half of 2006 reflected higher compensation and employee benefit costs, increased incentive compensation associated with the Company's improved earnings in the first half of 2006, higher advertising and promotional expenses Noun 1. promotional expense - the cost of promoting a product business expense, trade expense - ordinary and necessary expenses incurred in a taxpayer's business or trade , and reduced repossession The taking back of an item that has been sold on credit and delivered to the purchaser because the payments have not been made on it. For example, if an individual fails to render prompt payments on a new car, the car might be subject to repossession by the finance company, costs. The Company recorded no impairment charges in the first half of 2006; for the first six months of 2005, impairment charges totaled $143,000. Mike Murphy, Cavalier's Chief Financial Officer, added comments on the Company's financial position. He noted that Cavalier ended the second quarter with cash totaling $20,293,000 versus $19,033,000 at the same time last year. Inventory at the end of the second quarter increased $7,833,000 to $27,626,000 from $19,793,000 at July 2, 2005, primarily on higher levels of raw materials inventory, reflecting the addition of the 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 and purchases to guard against price increases and potential supply disruptions. Currently, the Company has $4,095,000 outstanding under the $10,000,000 real estate portion of its bank credit facility, which matures in 2017. None of the $50,000,000 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 $18,866,000 of this amount was currently available based on underlying 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 . 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' second 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 (August 1, 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 September Until September is a 1984 romantic drama set in France. It stars Karen Allen as an American tourist in Paris who falls in love with a married Frenchman (Thierry Lhermitte). External links 1, 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 December: see month. 31, 2005, under the heading "Item 1. Business-Risk Factors," and its Quarterly Report on Form 10-Q Form 10-Q See 10-Q. for the period ended April 1, 2006, under the heading "Safe Harbor Statement under the Private Litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. Reform Act of 1995," 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)
Second Quarter Ended Six Months Ended
-------------------- -------------------
July 1, July 2, July 1, July 2,
2006 2005 2006 2005
------- ------- -------- --------
STATEMENT OF OPERATIONS
SUMMARY
Home manufacturing
net sales $55,270 $56,575 $127,104 $109,373
Financial services 811 781 1,720 1,294
Retail 2,694 2,646 4,901 4,457
------- ------- -------- --------
Total revenue $58,775 $60,002 $133,725 $115,124
======= ======= ======== ========
Cost of sales 48,373 49,750 109,654 96,249
------- ------- -------- --------
Gross profit 10,402 10,252 24,071 18,875
Selling, general and
administrative 10,271 9,260 21,949 18,686
Impairment and other
related charges -- -- -- 143
------- ------- -------- --------
Operating income 131 992 2,122 46
------- ------- -------- --------
Other income (expense):
Interest expense (254) (290) (631) (556)
Other, net 310 209 459 533
------- ------- -------- --------
56 (81) (172) (23)
------- ------- -------- --------
Income from continuing
operations before
income taxes 187 911 1,950 23
Income tax provision
(benefit) 124 56 484 (85)
Equity in earnings of
equity-method investees 98 119 349 368
------- ------- -------- --------
Income from continuing
operations 161 974 1,815 476
Income (loss) from
discontinued operations,
including gain on
disposal of $439 in
2005 -- (205) 12 (1,861)
------- ------- -------- --------
Net income (loss) $ 161 $ 769 $ 1,827 $ (1,385)
======= ======= ======== ========
Basic net income
(loss) per share:
From continuing
operations $ 0.01 $ 0.05 $ 0.10 $ 0.02
From discontinued
operations 0.00 (0.01) 0.00 (0.10)
------- ------- -------- --------
Net income (loss) $ 0.01 $ 0.04 $ 0.10 $ (0.08)
======= ======= ======== ========
Diluted net income
(loss) per share:
From continuing
operations $ 0.01 $ 0.05 $ 0.10 $ 0.02
From discontinued
operations 0.00 (0.01) 0.00 (0.10)
------- ------- -------- --------
Net income (loss) $ 0.01 $ 0.04 $ 0.10 $ (0.08)
======= ======= ======== ========
Weighted average
shares outstanding:
Basic 18,345 18,036 18,326 18,034
======= ======= ======== ========
Diluted 18,502 18,229 18,494 18,034
======= ======= ======== ========
Cavalier Homes, Inc.
Data Sheet - Unaudited (Continued)
(In thousands, except per share amounts)
Second Quarter Ended Six Months Ended
-------------------- -------------------
July 1, July 2, July 1, July 2,
2006 2005 2006 2005
------- ------- ------- --------
OPERATING DATA SUMMARY
Home Manufacturing sales:
Floor shipments:
HUD Code 2,215 2,507 4,994 5,203
Modular 179 183 363 311
------- ------- ------- --------
Total floor shipments 2,394 2,690 5,357 5,514
======= ======= ======= ========
Home shipments:
Single section 345 206 1,234 472
Multi-section 1,011 1,229 2,042 2,503
------- ------- ------- --------
Total shipments 1,356 1,435 3,276 2,975
Shipments to company-
owned retail locations (51) (68) (96) (117)
FEMA shipments (all
single section) -- -- (419) --
------- ------- ------- --------
Wholesale shipments to
independent retailers 1,305 1,367 2,761 2,858
======= ======= ======= ========
Retail sales:
Single section 9 21 21 31
Multi-section 41 41 70 68
------- ------- ------- --------
Total sales 50 62 91 99
======= ======= ======= ========
Cavalier produced homes
sold 42 58 80 91
======= ======= ======= ========
Used homes sold 8 4 11 8
======= ======= ======= ========
Installment loan purchases $11,230 $12,389 $21,336 $ 18,774
Capital expenditures $ 872 $ 235 $ 1,273 $ 381
Home manufacturing
facilities -- operating 7 6 7 6
Independent exclusive
dealer locations 87 119 87 119
Company-owned stores 4 4 4 4
Cavalier Homes, Inc.
Data Sheet - Unaudited (Continued)
(In thousands, except per share amounts)
July 1, July 2,
2006 2005
-------- --------
BALANCE SHEET SUMMARY
Cash and cash equivalents $ 20,293 $ 19,033
Accounts receivable, less allowance for
losses 12,538 9,699
Notes and installment contracts receivable 5,557 5,685
Inventories 27,626 19,793
Other current assets 2,606 2,152
-------- --------
Total current assets 68,620 56,362
-------- --------
Property, plant and equipment, net 29,660 29,707
Other assets 10,532 10,248
-------- --------
Total assets $108,812 $ 96,317
======== ========
Current portion of long-term debt $ 1,552 $ 1,480
Note payable 2,489 2,368
Other current liabilities 38,354 40,001
-------- --------
Total current liabilities 42,395 43,849
-------- --------
Long-term debt 6,443 7,995
Deferred income taxes -- 415
Stockholders' equity 59,974 44,058
-------- --------
Total liabilities and stockholders' equity $108,812 $ 96,317
======== ========
OTHER INFORMATION
Working capital $ 26,225 $ 12,513
Current ratio 1.6 to 1 1.3 to 1
Ratio of long-term debt to equity 0.1 to 1 0.2 to 1
CIS installment loan portfolio $ 11,456 $ 12,408
Number of shares outstanding 18,345 18,038
Stockholders' equity per share $ 3.27 $ 2.44
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion