Cavco Industries, Inc (CVCO) has reported a 51.68 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $12.28 million, or $1.35 a share in the quarter, compared with $8.10 million, or $0.89 a share for the same period last year. Revenue during the quarter grew 11.51 percent to $202.31 million from $181.43 million in the previous year period. Gross margin for the quarter expanded 147 basis points over the previous year period to 21.52 percent. Total expenses were 91.33 percent of quarterly revenues, down from 93.02 percent for the same period last year. This has led to an improvement of 169 basis points in operating margin to 8.67 percent.
Operating income for the quarter was $17.54 million, compared with $12.66 million in the previous year period.
Commenting on the results, Joseph Stegmayer, chairman, president and chief executive officer said, "Homebuyer demand was on a general uptrend during the first nine months of the fiscal year and continues to be positive. Recently, the Company has been delivering a limited number of units for disaster relief, which enhances Cavco's housing revenue in the otherwise seasonally slower winter months. The manufactured housing industry appears to be in a modest recovery mode from the historically low levels of recent years and we believe we are positioned well to benefit."
Working capital increases
Cavco Industries, Inc has recorded an increase in the working capital over the last year. It stood at $208.80 million as at Dec. 31, 2016, up 22.55 percent or $38.42 million from $170.38 million on Dec. 26, 2015. Current ratio was at 2.66 as on Dec. 31, 2016, up from 2.41 on Dec. 26, 2015. Cash conversion cycle (CCC) has decreased to 44 days for the quarter from 73 days for the last year period. Days sales outstanding were almost stable at 29 days for the quarter, when compared with the last year period.
Days inventory outstanding has decreased to 25 days for the quarter compared with 57 days for the previous year period. At the same time, days payable outstanding went down to 10 days for the quarter from 12 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 $57.75 million as on Dec. 31, 2016, down 7.57 percent or $4.73 million from $62.48 million on Dec. 26, 2015. Total debt was 9.92 percent of total assets as on Dec. 31, 2016, compared with 11.52 percent on Dec. 26, 2015. Debt to equity ratio was at 0.15 as on Dec. 31, 2016, down from 0.18 as on Dec. 26, 2015. Interest coverage ratio improved to 16.08 for the quarter from 10.18 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
