Cavco Industries, Inc (CVCO) has reported a 15.75 percent rise in profit for the quarter ended Oct. 01, 2016. The company has earned $9.34 million, or $1.03 a share in the quarter, compared with $8.07 million, or $0.89 a share for the same period last year. Revenue during the quarter went down marginally by 1.88 percent to $188.35 million from $191.96 million in the previous year period. Gross margin for the quarter expanded 16 basis points over the previous year period to 20.76 percent. Total expenses were 92.74 percent of quarterly revenues, down from 93.24 percent for the same period last year. This has led to an improvement of 50 basis points in operating margin to 7.26 percent.
Operating income for the quarter was $13.68 million, compared with $12.98 million in the previous year period.
Commenting on the results, Joseph Stegmayer, chairman, president and chief executive officer said, "We are pleased to report improved profitability this quarter while still operating in a highly competitive housing market. We remain encouraged by the continued housing recovery and our solid backlogs. Interest from manufactured home retailers, developers and community operators for our product offerings remains strong heading into the winter season."
Working capital increases
Cavco Industries, Inc has recorded an increase in the working capital over the last year. It stood at $197.42 million as at Oct. 01, 2016, up 22.70 percent or $36.53 million from $160.89 million on Sep. 26, 2015. Current ratio was at 2.48 as on Oct. 01, 2016, up from 2.30 on Sep. 26, 2015. Cash conversion cycle (CCC) has decreased to 45 days for the quarter from 71 days for the last year period. Days sales outstanding went up to 30 days for the quarter compared with 27 days for the same period last year.
Days inventory outstanding has decreased to 28 days for the quarter compared with 55 days for the previous year period. At the same time, days payable outstanding went up to 13 days for the quarter from 11 for the same period last year.
Debt comes down
Cavco Industries, Inc has recorded a decline in total debt over the last one year. It stood at $58.01 million as on Oct. 01, 2016, down 8.68 percent or $5.51 million from $63.52 million on Sep. 26, 2015. Total debt was 10.06 percent of total assets as on Oct. 01, 2016, compared with 11.84 percent on Sep. 26, 2015. Debt to equity ratio was at 0.16 as on Oct. 01, 2016, down from 0.19 as on Sep. 26, 2015. Interest coverage ratio deteriorated to 12.08 for the quarter from 13.45 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
