Cavco Industries Sees Resilience Amidst Hurricanes as Q2 Results Show Promising Trends
Cavco Industries, Inc. has shown remarkable resilience in the face of recent hurricanes that hit Florida and other states in the Southeast, according to the company's President and Chief Executive Officer, Bill Boor. Despite the impact of Hurricane Helene and Hurricane Milton, Cavco's operations experienced minor damage and raw material losses, with production and retail downtime minimized thanks to the efforts of its committed coworkers.
During a conference call on November 1, 2024, to discuss the company's second quarter fiscal year 2025 earnings, Bill Boor addressed the business impact of the storms. He noted that Cavco's insurance operations were not affected, and while physical damage to operations and raw material losses were minimal, there was a delayed net revenue of approximately $4 million from the second to third quarter due to conditions preventing completed shipments of finished homes.
Cavco's results for the quarter showed promising trends, with units shipped increasing by 15.7% over last year's quarter. Capacity utilization rose sequentially from 65% to 70%, with the company operating at a running pace closer to 75% capacity utilization. The strong orders resulted in backlogs growing approximately 20%, representing about 8-10 weeks of production.
"We were relieved that our employees throughout the region and their families survived the storms, although many experienced significant property damage," Bill Boor said. "It's awesome to see the resiliency shown as our employees made their way back to work to continue producing and selling vitally needed homes."
Cavco Industries' resilience in the face of adversity is a testament to its commitment to its customers, employees, and stakeholders. The company's focus on ramping up production in line with an improving market has paid off, with promising trends emerging from its Q2 results.
As Bill Boor noted, "We're optimistic about the Southeast market recovering to its pre-storm health based on the last few weeks of activity." With a solid foundation and a strong team, Cavco Industries is well-positioned to navigate any challenges ahead and continue delivering exceptional value to its customers and stakeholders.
