Cavalier Announces Year-end 2001 Results; Reports Profitable Fourth Quarter Operations.Business Editors ADDISON, Ala ALA aminolevulinic acid. Ala alanine. ala (a´lah) pl. a´lae [L.] a winglike process. .--(BUSINESS WIRE)--Feb. 27, 2002 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. (NYSE NYSE See: New York 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 improved results for its fourth quarter ended December 31, 2001. Highlights of the quarter included a continued improvement in 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 , as floor shipments increased 9% over the third quarter of 2001 and 67% over the fourth quarter of 2000. This trend, coupled with higher gross profit margins Gross profit margin Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold. gross profit margin A measure calculated by dividing gross profit by net sales. and a lower level of selling, general and administrative expenses relative to total revenue, enabled Cavalier to return to profitability in the fourth quarter. Revenue for the fourth quarter increased 74% to $109,411,000 from $63,017,000 in the year-earlier period. Home manufacturing sales, the largest component of revenue, rose 80% to $105,222,000 for the quarter versus $58,581,000 for the fourth quarter of 2000 as floor shipments increased 67% to 6,361 floors versus 3,801 floors in the year-earlier period. Net income for the quarter was $1,250,000 or $0.07 per share versus a net loss in the same period last year of $5,630,000 or $0.32 per share. Income before income taxes for the fourth quarter of 2001 was $1,250,000 compared with a loss before income taxes of $9,004,000 in the comparable period of 2000. However, the pre-tax income for the fourth quarter of 2001 included $1,003,000 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 and $539,000 in charges for inventory losses on present and anticipated dealer failures. The Company's pre-tax loss for the fourth quarter last year included impairment and other related charges totaling $2,127,000, charges for inventory losses on present and anticipated dealer failures of $2,097,000, and inventory valuation charges of $966,000, which together were offset partially by a gain of $920,000 from insurance proceeds on a plant fire. Therefore, excluding these items, the Company's pre-tax income for the fourth quarter of 2001 was $2,792,000 versus a pre-tax loss of $4,734,000 for the fourth quarter of 2000. Revenue for the full year rose 9% to $363,871,000 from $333,112,000 in 2000. Home manufacturing sales increased 14% to $348,235,000 for the year versus $306,239,000 last year as floor shipments increased 15% to 21,324 floors compared with 18,590 floors in 2000. The Company's net loss for 2001 narrowed to $14,018,000 or $0.80 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 compared with a net loss of $33,468,000 or $1.88 per diluted share in the prior year. The Company's pre-tax loss for 2001 was $14,618,000 compared with the pre-tax loss of $52,597,000 for 2000. However, the pre-tax loss for 2001 included $1,003,000 impairment and other related charges and $1,848,000 in charges for inventory losses on present and anticipated dealer failures. In 2000, the Company's pre-tax loss included impairment and other related charges, charges for anticipated dealer failures, inventory valuation charges, and losses and charges related to a plant disposition aggregating $21,890,000, net of the gain from insurance proceeds. Therefore, excluding these items, the Company's pre-tax loss for 2001 improved 62% to $11,767,000 versus a pre-tax loss of $30,707,000 in 2000. The Company recorded an income tax benefit of $600,000 in the first quarter of 2001 relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc future income tax refunds Tax refund Money back from the government when too much tax has been paid or withheld from a salary. and certain carryforward items, but did not record any additional benefit for net operating losses Net operating losses Losses that a firm can take advantage of to reduce taxes. because management believes it is no longer appropriate to record income tax benefits on current losses in excess of anticipated refunds. Cavalier recorded the tax benefits of its net operating losses during 2000. "Since reversing the downward trend in floor shipments earlier in 2001, we are pleased to report a steady increase in our volume for three successive quarters," said Cavalier's President and Chief Executive Officer, David Roberson. "A return to profitable operations in the fourth quarter represents yet another milestone in our efforts to strengthen our operations to meet the challenges and opportunities in today's market and position Cavalier for more stable growth despite the cyclical cyclical Of or relating to a variable, such as housing starts, car sales, or the price of a certain stock, that is subject to regular or irregular up-and-down movements. nature of our industry." To underscore The underscore character (_) is often used to make file, field and variable names more readable when blank spaces are not allowed. For example, NOVEL_1A.DOC, FIRST_NAME and Start_Routine. (character) underscore - _, ASCII 95. the extent of Cavalier's improving floor shipments, which takes into account changes in product mix, Roberson contrasted the Company's figures for the fourth quarter (up 67%) and year (up 15%) to industry wholesale shipments for those same periods, as reported by the 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 Institute. Industry shipments increased 4% in the fourth quarter of 2001 and declined 21% for the year. In the Company's core 11-state marketing region, fourth quarter industry shipments increased 9% while Cavalier's shipments rose 65%. Industry shipments to the core marketing region fell 25% in 2001 while Cavalier's shipments rose 12%. "We believe Cavalier's growing shipments and sales, along with the concurrent growth of our independent dealer network, reflects our efforts over the past year to revamp re·vamp tr.v. re·vamped, re·vamp·ing, re·vamps 1. To patch up or restore; renovate. 2. To revise or reconstruct (a manuscript, for example). 3. To vamp (a shoe) anew. n. our product line and rebuild distribution," Roberson continued. "Progress in this latter area is best seen in our network of independent exclusive dealers, which increased 23% to 237 locations by year's end from 193 at the end of 2000. We also have worked diligently dil·i·gent adj. Marked by persevering, painstaking effort. See Synonyms at busy. [Middle English, from Old French, from Latin d over the last two years to reduce our capacity and bring our costs in line with current market conditions, first to stabilize stabilize See peg. our operations during the recent industry downturn Downturn The transition point between a rising, expanding economy to a falling, contracting one. downturn A decline in security prices or economic activity following a period of rising or stable prices or activity. and then move toward building market share. The latest step in this regard involved the recent closing of our Mansion MANSION. This term is synonymous with house. (q.v.) 1 Chit. Pr. 167; 2 T. R. 502; 1 Tho. Co. Litt. 215, n. 35; 9 B. & C. 681; S. C. 17 E. C. L. R. 472, and the cases there cited; Com. Dig. Justices, P 5; 3 Serg. & Rawle, 199. Homes plant and movement of this production to another facility that we believe offers greater efficiency and flexibility. "Obviously, given the uncertain economy and other ongoing issues facing our industry, including high 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, levels and reduced lending capacity, we know the recovery we have witnessed so far is fragile and incomplete," he added. "Much work is still ahead of us if we are to build on the momentum of the past few months, and the seasonal slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. that typically occurs at this time of year will likely result in lower margins and a loss for the first quarter of 2002. Still, the industry itself continues to show signs of stabilizing stabilizing, v to hold a limb motionless in order to ground its energy; a standard isometric resistance technique, it releases tension and lengthens muscle fibers. , and we remain cautiously optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op that our strategies to improve sales and control costs, will lead to further improvements in our top- and bottom-line results in the year ahead." Barry Donnell, Chairman, noted that Cavalier's focus on asset management throughout the industry downturn enabled the Company to reduce inventory levels during 2001. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Donnell, inventories declined 3% to $20,672,000 at December 31, 2001, from $21,390,000 at the end of 2000. Dealer inventory at December 31, 2001, including inventory at company-owned retail sales centers, declined 10% to approximately $171,000,000 from $191,000,000 at December 31, 2000, even though Company revenues increased 9% during the year. Cash and cash equivalents totaled $43,256,000 as of December 31, 2001, versus $35,394,000 at the end of 2000. Donnell noted that Cavalier's $35,000,000 revolving credit Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. facility, which matures in April 2003, provided the Company with total borrowing capacity of $20,087,000 at year's end, based on the Company's current tangible net worth Tangible Net Worth Total assets less intangible assets and total liabilities. Notes: In terms of a consumer, tangible net worth is the sum of all your tangible assets (cash, home, cars, etc). plus current year treasury stock purchases and reduced by any outstanding letters of credit. Of this available amount, $15,000,000 was outstanding at year-end. Cavalier's total 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. at December 31, 2001, including the $15,000,000 advanced against the borrowing capacity of the Company's credit facility, totaled $23,999,000 compared with total long-term debt of $24,054,000 at December 31, 2000. Cavalier also noted that, in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with Statement of Financial Accounting Standards (SFAS SFAS Statement of Financial Accounting Standards SFAS Special Forces Assessment and Selection SFAS Student Financial Aid Services SFAS Sport Fishing Association of Singapore SFAS Safety Features Actuation System SFAS Statewide Fixed Assets System ) No. 142, "Goodwill and Other Intangible Assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. ," which becomes effective for the Company in 2002, Cavalier must evaluate its goodwill for possible impairment during 2002. Currently, Cavalier has approximately $15,500,000 in recorded goodwill. Beginning in the first quarter of 2002, the Company will no longer record charges related to amortization of goodwill; Cavalier's amortization of goodwill in 2001 totaled $979,000. Impairment charges, the amount of which the Company cannot predict at this time, would be recorded in the first quarter of 2002 and would be reflected as a change in accounting principle. 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 of Cavalier Homes' fourth quarter conference call will begin at 9:30 a.m. Eastern Daylight Time tomorrow (February 28, 2002) and may be accessed via the Company's web site, www.cavhomesinc.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 March 28, 2002. 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 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 two years on the Company'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; currency fluctuations, exchange controls, market disruptions Market Disruption A situation where markets cease to function in a regular manner, typically characterized by rapid and large market declines. Market disruptions can result from both physical threats to the stock exchange or a unusual trading (as in a crash). and other effects resulting from the terrorist attacks on New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of and Washington on September 11, 2001 and actions, including armed conflict, by the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and other governments in reaction thereto there·to adv. 1. To that, this, or it. 2. Archaic In addition to that; furthermore. thereto Adverb Formal 1. to that or it 2. ; and other disruptions 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, 2000, 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 September 30, 2001, 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.
Unaudited Financial Highlights
(In thousands, except per share amounts)
Fourth Quarter Ended Year Ended
--------------------- ----------------------
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
2001 2000 2001 2000
--------- --------- --------- ---------
Revenue $ 109,411 $ 63,017 $ 363,871 $ 333,112
Income (loss) before
income tax
benefit(a) $ 1,250 $ (9,004) $ (14,618) $ (52,597)
Net income (loss)(a) $ 1,250 $ (5,630) $ (14,018) $ (33,468)
Net income (loss) per
share-diluted(a) $ 0.07 $ (0.32) $ (0.80) $ (1.88)
Weighted average
shares-diluted 17,679 17,821 17,580 17,800
Note: Revenue amounts for previous periods reflect certain
reclassifications in order to conform to the 2001 presentation.
(a) The Company recorded impairment and other related charges of
$1,003 ($1,003 net of taxes or $0.06 per diluted share) in the
fourth quarter and year ended December 31, 2001, related to the
closing of a home manufacturing plant. The Company recorded
impairment and other related charges of $2,127 ($1,340 net of
taxes or $0.08 per diluted share) and $6,975 ($5,183 net of taxes
or $0.29 per diluted share) in the fourth quarter and year ended
December 31, 2000, respectively, related to the idling of home
manufacturing plants, its retail sales operations, the pending
disposition of a supply company, and the sale of a portion of its
insurance and premium finance business.
Cavalier Homes, Inc. Data Sheet - Unaudited
(in thousands, except per share amounts)
Three Months Ended Year Ended
---------------------- ----------------------
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
2001 2000 2001 2000
--------- --------- --------- ---------
STATEMENT OF OPERATIONS SUMMARY
Home manufacturing
net sales $ 105,222 $ 58,581 $ 348,235 $ 306,239
Financial services 884 709 3,088 4,878
Retail 1,785 2,654 6,968 16,842
Other 1,520 1,073 5,580 5,153
--------- --------- --------- ---------
Total revenue $ 109,411 $ 63,017 $ 363,871 $ 333,112
========= ========= ========= =========
Cost of sales 88,830 54,621 309,656 292,810
--------- --------- --------- ---------
Gross profit $ 20,581 $ 8,396 $ 54,215 $ 40,302
========= ========= ========= =========
Selling, general and
administrative 18,010 15,831 66,690 85,430
Impairment and other
related charges 1,003 2,127 1,003 6,975
--------- --------- --------- ---------
Operating income
(loss) 1,568 (9,562) (13,478) (52,103)
--------- --------- --------- ---------
Other income (expense):
Interest expense (371) (728) (1,935) (2,736)
Other, net 53 1,286 795 2,242
--------- --------- --------- ---------
(318) 558 (1,140) (494)
--------- --------- --------- ---------
Income (loss) before
income tax benefit 1,250 (9,004) (14,618) (52,597)
Income tax benefit -- (3,374) (600) (19,129)
--------- --------- --------- ---------
Net income (loss) $ 1,250 $ (5,630) $ (14,018) $ (33,468)
========= ========= ========= =========
Net income (loss)
per basic and
diluted share $ 0.07 $ (0.32) $ (0.80) $ (1.88)
========= ========= ========= =========
Weighted average
shares outstanding 17,660 17,821 17,580 17,800
========= ========= ========= =========
Weighted average
shares outstanding
assuming dilution 17,691 17,821 17,580 17,800
========= ========= ========= =========
OPERATING DATA SUMMARY
Manufacturing sales:
Floor shipments 6,361 3,801 21,324 18,590
Home shipments:
Single section 968 674 4,013 4,406
Multi-section 2,696 1,563 8,656 7,072
--------- --------- --------- ---------
Total shipments 3,664 2,237 12,669 11,478
Shipments to
company-owned
retail locations (38) (35) (151) (200)
--------- --------- --------- ---------
Wholesale shipments
to independent
retailers 3,626 2,202 12,518 11,278
========= ========= ========= =========
Retail sales:
Single section 18 52 75 335
Multi-section 32 95 125 345
--------- --------- --------- ---------
Total sales 50 147 200 680
========= ========= ========= =========
Cavalier produced
homes sold 43 137 170 568
========= ========= ========= =========
Used homes sold 7 8 29 99
========= ========= ========= =========
Independent exclusive
dealer locations 237 193 237 193
Company-owned stores 5 5 5 5
Home manufacturing
facilities --
operating 14 15 14 15
Installment loan
purchases $ 7,669 $ 10,193 $ 35,768 $ 59,569
EBITDA $ 3,608 $ (6,025) $ (4,509) $ (40,102)
BALANCE SHEET SUMMARY
Cash and cash
equivalents $ 43,256 $ 35,394 $ 43,256 $ 35,394
Working capital $ 18,183 $ 27,213 $ 18,183 $ 27,213
Current ratio 1.3 to 1 1.4 to 1 1.3 to 1 1.4 to 1
Long-term debt $ 23,999 $ 24,054 $ 23,999 $ 24,054
Stockholders'
equity $ 80,192 $ 94,318 $ 80,192 $ 94,318
Number of shares
outstanding 17,660 17,799 17,660 17,799
Stockholders'
equity per
share $ 4.54 $ 5.30 $ 4.54 $ 5.30
CIS installment
loan portfolio $ 4,991 $ 7,887 $ 4,991 $ 7,887
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion