Cavalier Announces 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 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 financial results for the second quarter and six months ended June June: see month. 26, 2004. A summary of the Company's report follows (in thousands, except per share amounts):
Second Quarter Ended Six Months Ended
---------------------- ----------------------
June 26, June 28, June 26, June 28,
2004 2003 2004 2003
--------- --------- --------- ---------
Revenue $ 53,867 $ 68,721 $ 98,121 $ 127,932
Loss before
income taxes (590) (409) (2,472) (6,591)
Income tax
provision 9 -- 9 --
--------- --------- --------- ---------
Net loss $ (599) $ (409) $ (2,481) $ (6,591)
========= ========= ========= =========
Net loss per
share, basic and
diluted $ (0.03) $ (0.02) $ (0.14) $ (0.37)
========= ========= ========= =========
Weighted average
shares outstanding,
basic and diluted 17,895 17,666 17,800 17,666
========= ========= ========= =========
Commenting on the results, David Roberson Roberson is a surname, and may refer to
tr. & intr.v. weak·ened, weak·en·ing, weak·ens To make or become weak or weaker. weak  en·er n. following a promising upturn in March. This
weakness was particularly evident in many of the southeastern states
that represent our most significant markets. In our view, this reflects
a number of factors, including the recent contraction contraction, in physicscontraction, in physics: see expansion. contraction, in grammar contraction, in writing: see abbreviation. contraction - reduction in retail lending capacity 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 customers, especially those seeking chattel chattel (chăt`əl), in law, any property other than a freehold estate in land (see tenure). A chattel is treated as personal property rather than real property regardless of whether it is movable or immovable (see property). financing - an important source of funding for a sizable siz·a·ble also size·a·ble adj. Of considerable size; fairly large. siz a·ble·ness n. portion
of our customers. Floor plan financing also has remained a challenge for
many dealers, hampering their ability to replenish re·plen·ish v. re·plen·ished, re·plen·ish·ing, re·plen·ish·es v.tr. 1. To fill or make complete again; add a new stock or supply to: replenish the larder. 2. inventories. As these factors have worked to hold back manufactured home sales, substantially higher commodity prices for steel, lumber lumber, term for timber that has been cut into boards for use as a building material. The major steps in producing lumber involve logging (the felling and preparation of timber for shipment to sawmills), sawing the logs into boards, grading the boards according to and other materials have forced home prices higher. While commodity costs appear to have stabilized sta·bi·lize v. sta·bi·lized, sta·bi·liz·ing, sta·bi·liz·es v.tr. 1. To make stable or steadfast. 2. in recent weeks, they continue to place additional pressure on margins and selling prices." Revenue for the second quarter declined 22% from the same period last year. The entire decline was attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to lower home manufacturing sales, the largest component of revenue, which fell to $51,226,000 for the quarter versus $66,034,000 for the second quarter of 2003. Floor shipments declined 27% to 2,579 floors in the second quarter of 2004 versus 3,549 floors in the same period last year. Revenue from retail sales and 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. were essentially unchanged quarter over quarter. Gross profit for the second quarter declined $2,185,000 to $8,719,000 from $10,904,000 due to lower shipment volume for the period. Gross margin for the second quarter, however, improved to 16.2% versus 15.9% in the same quarter last year primarily because of the run-off run-off n (in contest, election) → desempate m (= extra race); carrera de desempate run-off n (in contest, election) → of costs related to closed facilities, which, together with higher selling prices, more than offset the effect of the recent rise in the cost of raw materials. During the second quarter, selling, general and administrative expenses declined $1,865,000 to $9,279,000 from $11,144,000 in the year-earlier period and also reflected primarily the elimination of significant trailing costs from closed facilities; selling, general and administrative expenses were 17% of revenue in the second quarter of 2004 versus 16% in the second quarter of 2003. 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 2004, but did incur To become subject to and liable for; to have liabilities imposed by act or operation of law. Expenses are incurred, for example, when the legal obligation to pay them arises. An individual incurs a liability when a money judgment is rendered against him or her by a court. $54,000 in impairment and other related charges in the year-earlier period. Cavalier's revenue for the first half of 2004 declined 23% compared with the first half of 2003 as home manufacturing sales fell 24% to $93,408,000 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 versus $123,249,000 in the same period last year. First half shipments declined 29% to 4,699 floors compared with 6,643 floors in the first six months of 2003. Gross profit for the first half of 2004 declined $1,428,000 to $16,311,000 from $17,739,000 due to lower shipment volume for the period. Gross margin for the first six months of 2004 increased to 16.6% versus 13.9% in the same period last year, again reflecting mainly the run-off of costs related to closed facilities and higher selling prices, which more than offset price increases in many raw materials. During the first half of 2004, selling, general and administrative expenses declined 22% to $18,656,000 from $23,961,000 in the year-earlier period, mainly as the Company incurred lower costs from closed facilities in the 2004 year-to-date period; selling, general and administrative expenses were 19% of revenue in both the first half of 2004 and 2003. "Despite the challenges we continue to face, we believe Cavalier has demonstrated solid progress in an ongoing effort to right-size its business," Roberson said in conclusion. "We have reduced our break-even level significantly with more efficient manufacturing strategies, we have cut operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. substantially, and we have remained intently focused on the task of enhancing the value and appeal of our homes. We think these steps will sharpen sharp·en tr. & intr.v. sharp·ened, sharp·en·ing, sharp·ens To make or become sharp or sharper. sharp our competitive position in the marketplace and enable us to work toward our goal of returning to profitability." 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 $17,821,000 versus $25,491,000 at the same time last year. Inventories increased to $16,741,000 at June 26, 2004, from $13,321,000 at the end of the second quarter last year, primarily reflecting higher costs of raw materials, as well as increased stocks related to new home models and to compensate for longer lead times on certain materials that are now in relatively short supply. Dealer inventory, including inventory at company-owned retail sales centers, declined 25% to approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $98,000,000 from $130,000,000 a year ago, but was up slightly from $97,000,000 in the first quarter of 2004. 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 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 3, 2004) 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 3, 2004. With the exception of historical information, the statements made in this press release, including those containing the words "believe," "know," "will," 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 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, 2003, 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 March 27, 2004, 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
---------------------- ----------------------
June 26, June 28, June 26, June 28,
2004 2003 2004 2003
--------- --------- --------- ---------
STATEMENT OF INCOME SUMMARY
Home manufacturing
net sales $ 51,226 $ 66,034 $ 93,408 $ 123,249
Financial services 679 728 1,221 1,356
Retail 1,962 1,959 3,492 3,327
--------- --------- --------- ---------
Total revenue $ 53,867 $ 68,721 $ 98,121 $ 127,932
========= ========= ========= =========
Cost of sales 45,148 57,817 81,810 110,193
--------- --------- --------- ---------
Gross profit 8,719 10,904 16,311 17,739
Selling, general and
administrative 9,279 11,144 18,656 23,961
Impairment and other
related charges -- 54 -- 54
--------- --------- --------- ---------
Operating loss (560) (294) (2,345) (6,276)
--------- --------- --------- ---------
Other income (expense):
Interest expense (311) (278) (589) (561)
Other, net 281 163 462 246
--------- --------- --------- ---------
(30) (115) (127) (315)
--------- --------- --------- ---------
Loss before income
taxes (590) (409) (2,472) (6,591)
Income tax provision 9 -- 9 --
--------- --------- --------- ---------
Net loss $ (599) $ (409) $ (2,481) $ (6,591)
========= ========= ========= =========
Basic and diluted
loss per share $ (0.03) $ (0.02) $ (0.14) $ (0.37)
========= ========= ========= =========
Basic and diluted
weighted average
shares outstanding 17,895 17,666 17,800 17,666
========= ========= ========= =========
Cavalier Homes, Inc. Data Sheet - Unaudited (Continued)
(In thousands, except per share amounts)
Second Quarter Ended Six Months Ended
---------------------- ----------------------
June 26, June 28, June 26, June 28,
2004 2003 2004 2003
--------- --------- --------- ---------
OPERATING DATA SUMMARY
Manufacturing sales:
Floor shipments 2,579 3,549 4,699 6,643
Home shipments:
Single section 212 285 373 503
Multi-section 1,172 1,632 2,151 3,070
--------- --------- --------- ---------
Total shipments 1,384 1,917 2,524 3,573
Shipments to
company-owned
retail locations (47) (35) (88) (53)
--------- --------- --------- ---------
Wholesale shipments
to independent
retailers 1,337 1,882 2,436 3,520
========= ========= ========= =========
Retail sales:
Single section 16 14 24 23
Multi-section 35 35 62 65
--------- --------- --------- ---------
Total sales 51 49 86 88
========= ========= ========= =========
Cavalier produced
homes sold 43 44 75 76
========= ========= ========= =========
Used homes sold 8 5 11 12
========= ========= ========= =========
Independent
exclusive dealer
locations 123 168 123 168
Company-owned stores 3 3 3 3
Home manufacturing
facilities --
operating 7 7 7 7
Installment loan
purchases $ 10,726 $ 11,021 $ 17,934 $ 20,159
BALANCE SHEET SUMMARY
Cash and cash equivalents $ 17,821 $ 25,491
Accounts receivable, less allowance for losses 8,317 11,937
Inventories 16,741 13,321
Other current assets 5,295 7,278
--------- ---------
Total current assets 48,174 58,027
--------- ---------
Property, plant and equipment, net 35,671 45,474
Installment contracts receivable, less
allowance for credit losses 6,573 5,212
Other assets 3,583 2,938
--------- ---------
Total assets $ 94,001 $ 111,651
========= =========
Current portion of long-term debt $ 1,794 $ 1,390
Other current liabilities 39,717 51,191
--------- ---------
Total current liabilities 41,511 52,581
--------- ---------
Long-term debt 11,952 18,586
Other long-term liabilities 1,164 1,539
Stockholders' equity 39,374 38,945
--------- ---------
Total liabilities and stockholders' equity $ 94,001 $ 111,651
========= =========
OTHER INFORMATION
Working capital $ 6,663 $ 5,446
Current ratio 1.2 to 1 1.1 to 1
Ratio of long-term debt to equity 1 to 3 1 to 2
CIS installment loan portfolio $ 11,011 $ 11,169
Number of shares outstanding 17,932 17,666
Stockholders' equity per share $ 2.20 $ 2.20
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