Cavco Industries, Inc. · NASDAQ:CVCO
Cavco Industries — Investor Presentation (February 2024)
22 slides from Cavco Industries's investor presentation, February 2024
Slide 1: Cavco Industries, Inc. Investor Presentation February 2024
Cavco Industries, Inc. INVESTOR PRESENTATION FEBRUARY 2024 investor.cavco.com | Nasdaq: CVCO 1
Slide 2: Forward-looking Statements
Forward-looking Statements Certain statements contained in this release are forward-looking statements. In general, all statements that are not historical in nature are forward-looking. Forward-looking statements are typically included, for example, in discussions regarding the manufactured housing
Slide 3: Cavco Overview
Cavco Overview Quality, affordable homes that provide shelter and security for families across the country Financial Performance* Twelve months ended December 30, 2023 Industry Leader Financial Services Revenue EBITDA** (Earnings before Gross Margin Percentage ONE OF THE • Mortgage and $ 1.9B 11.6 %
Slide 4: The Affordable Housing Crisis
The Affordable Housing Crisis “…(in) no market in this country can a homebuilder build a house that is affordable for a first- time home buyer.” National Association of Home Builders CEO, Jerry Howard JANUARY 18, 2022 JULY 14, 2022 Aug 8, 2022 A growing share of There’s a massive housing Three Chall
Slide 5: Factory-built Industry: Leading the Way in Solving the Affordable Housing Crisis
” Factory-built Industry: Leading the Way Cavco is building affordable houses for many home in Solving the Affordable Housing Crisis buyers. Quality Most affordable Ownership at manufactured form of monthly cost homes at affordable unsubsidized comparable to price points home ownership apartment ren
Slide 6: The Difference
The Difference Corporate Superior Financial Operational Expanding responsibility homes strategy excellence capacity CAVCO INDUSTRIES, INC. | NASDAQ: CVCO 6
Slide 7: Corporate Responsibility
Corporate Responsibility Continuous commitment to a positive impact on people, communities and the environment Our People – ONECavco Our CAVCOmmunity 20% in healthcare enrollment for Homes for our Own provides education employees and their families as a with potential for financial assistance for In
Slide 8: Environmental Impact
Environmental Impact Minimizing our environmental impact throughout the entire manufacturing cycle Our Approach Green Energy Solar panels supply ~60% of Reduce waste + Preserve natural resources electricity in our Glendale, AZ, + Increase use of recycled materials = plant, reducing our carbon Reduct
Slide 9: Manufactured Industry Drivers
Manufactured Industry Drivers Better value Environmental Manufactured Housing Industry than site-built advantages Demand Drivers 36 companies with 147 homebuilding factories 6M Long-term undersupply has led to an 95 were manufactured housing approximate 6-million-unit deficit Unit Deficit IN 2023 %
Slide 10: Manufactured Housing Industry Annual Shipments
Manufactured Housing Industry Annual Shipments Consistent growth from Great Recession lows Shipments grew 78% 125,000 since 2009 and 2010 113,000 106,000 100,000 96,000 97,000 95,000 93,000 94,000 89,000 82,000 81,000 75,000 70,500 64,000 60,000 55,000 50,000 50,000 52,000 50,000 25,000 0 Source: Ma
Slide 11: Superior Homes in a Strong Industry
Superior Homes in a Strong Industry Providing high quality, cost-conscious and innovative housing HUD-Code Modular Home Home Built off-site, Constructed on transported, a permanent assembled and chassis to the customized on- federal site, to local standard construction standards Park Model Multi-fam
Slide 12: Distribution Channels
Distribution Channels Diverse channels provide a broader network for home sales growth Retail Builder/Developer Communities Company-owned and independent Consistent, robust channel, which Capitalize on channel diversification retailers work directly with end includes hospitality and in a growing mar
Slide 13: Financial Strategy
Financial Strategy Proven ability to deliver organic growth, capacity expansion and shareholder value 13 Consecutive Years of increasing revenue and profit Balance Sheet Management Strong track record of growth, cost management, strong free cash flow $ 352M Zero corporate debt* cash as of Q3’24 gene
Slide 14: Financial Results & Highlights for 9 Months ended Q3'24
Financial Results & Highlights for 9 Months ended Q3’24 Gross profit as a percentage of Earnings per diluted share net revenue strong at $ 14.32 CONTINUED Net Revenue ($ millions) $2,143 STRONG EXECUTION 23.9 % $1,627 $1,375 60 % $160M Factory $1,062 $1,108 $963 Factory utilization when home conside
Slide 15: Operational Excellence
Operational Excellence Finding innovative ways to increase manufacturing output and efficiencies and improve safety Safety Lean Manufacturing High capacity utilization in production plants Safety Now program builds a Increasing Reducing safety-first culture productivity waste Dynamic Ability to flex
Slide 16: Expanding Capacity
Expanding Capacity Operating with high levels of capacity utilization in production plants Added six new manufacturing facilities through the acquisition of Commodore M&A Added four new production lines with Solitaire Homes and retail distribution across three states Increased capacity by over 30% w
Slide 17: CountryPlace Mortgage
CountryPlace Mortgage Experienced MH lender with proven performance through economic cycles Specializing in Manufactured Housing Long History of Disciplined Risk Lending Since 1995 Management & Superior Performance CountryPlace MH loans Licenses in 36 states to originate & outperformed the single se
Slide 18: What's Next?
What’s Next? Manufacturing technology Two new production Digital marketing innovation facilities ramping up Zoning improvements Continuing to invest in Focus on environmental opening up new, urban productivity improvements issues and opportunities market opportunities across 31 production lines CAVC
Slide 19: The Difference
The Difference Corporate Superior Financial Operational Expanding responsibility homes strategy excellence capacity Growing our positive Providing high Committed to Operating safe and Growing through impact on people, quality, cost- responsible capital highly efficient value-creating communities and
Slide 20: Thank you.
F I = a =| ee a8, cavco Thank you. Factory-built housing solutions
Slide 21: Appendix: GAAP Reconciliation
Appendix: GAAP Reconciliation ($ in thousands) Reconciliation of twelve months ended December 30, 2023 Reconciliation of Free cash flow for the nine months ended Earnings before ITDA % December 30, 2023 Net income $171,331 Cash from operations $206,104 Income tax expense 43,475 Capital expenditures
Slide 22: Cavco Portfolio of Brands
Cavco Portfolio of Brands Providing system-built housing solutions across a strong portfolio of brands CAVCO INDUSTRIES, INC. | NASDAQ: CVCO 22
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