Cavco Industries, Inc. · NASDAQ:CVCO
Cavco Industries — Investor Presentation (January 2022)
20 slides from Cavco Industries's investor presentation, January 2022
Slide 1: Cavco Industries, Inc. Investor Presentation January 2022
investor.cavco.com Cavco Industries, Inc. Nasdaq: CVCO FACTORY-BUILT HOUSING SOLUTIONS I N V E S T O R P R E S E N T AT I O N J A N U A R Y 2 0 2 2
Slide 2: Company Overview
Company Overview Factory-built Housing Profile • 26 homebuilding production lines • $2.6 billion market capitalization • 3rd largest U.S. Builder (2020 HUD building code) (1/7/22) • $1.1 billion net revenue (thru 4/3/21) • 12% market share (2020 HUD building code) • 6,100 team members • 46 Company-o
Slide 3: Comprehensive Product Offering
Comprehensive Product Offering 33
Slide 4: Operating Locations
Operating Locations H RetailSales 3 Centers : 3 Manufacturing: : Insurance 3 i : Offices : Dallas Satellite H o Offices A Corporate Office : 3
Slide 5: Manufactured Housing Industry Profile
Manufactured Housing Industry Profile 33 136 4,000 43,000 Homebuilding Home Sales Land-Lease Corporations Factories Centers Communities In 2020, manufactured housing accounted for: • 64% of all new homes sold under $200,000 • 91% of all new homes sold under $150,000 2 of every 3 manufactured homes a
Slide 6: Manufactured Housing Industry
Manufactured Housing Industry 30 year annual shipments 373,000 363,000 400,000 353,000 349,000 340,000 Average Annual Home Shipments 304,000 350,000 Since HUD code adoption (1976) 191,000 254,000 300,000 30 year average 163,000 251,000 218,000 211,000 250,000 198,000 193,000 188,000 171,000 169,000
Slide 7: Manufactured Home Shipments as a Percent of New Single-Family Home Sales
Manufactured Home Shipments as a percent of New Single-Family Home Sales 30% 28.7% 25% 17.5% 20% 14.7% 14.4% 14.4% 12.8% 13.5% 15% 13.4% 12.9% 12.6% 12.3% 12.3% 13.2% 12.2% 10.3% 11% 11.7% 10.8% 9.8% 10.1% 10.3% 10% 5% 0% Sub-Prime Boom for Site Built Housing Source: Manufactured Housing Institute a
Slide 8: Manufactured Housing Market
Manufactured Housing Market Critical Component of U.S. Housing Needs • Affordable housing • Most affordable form of home ownership • Ownership at monthly cost comparable to apartment rents • Average retail sales price approximately $82,000 (home only) • Custom and larger homes at better value than s
Slide 9: Manufactured Housing Market (continued)
Manufactured Housing Market Critical Component of U.S. Housing needs (continued) • Rural housing, communities and urban in-fill • Construction process reduces labor and material usage • Faster production through controlled building environment • Environmental advantages • Less disruption to the envi
Slide 10: Manufactured Housing Market: Financing Options
Manufactured Housing Market Two main financing options • Traditional mortgage • Conforming mortgage loans which comply with the requirements of FHA, VA, USDA or GSE loans or non- conforming mortgages • MH Advantage and ChoiceHome products • Personal property loan (home-only or chattel loans) • Count
Slide 11: Manufactured Homeowners
Manufactured Homeowners Large and Diverse Markets • First-time home buyers • First-time move-up buyers • Baby boomers, empty nesters, and retirees • Lifestyle oriented homebuyers – age-restricted communities • Second home and seasonal living • Attractively priced, low-maintenance alternative to on-s
Slide 12: Favorable Demographic Trends
Favorable Demographic Trends U.S. Demographic Indicators • U.S adult population estimated to expand by 9.2 million between 2021 and 2026 • Home ownership rises with age • Over 75% of the population age 55+ are homeowners • The 55+ category is reported to be the fastest growing segment of the U.S. po
Slide 13: Investment Considerations
Investment Considerations Liquidity Solid balance sheet and liquidity position Well positioned in the affordable housing market Positioning Demonstrated ability to adjust to market conditions: profitable in all but one year during entire housing/economic downturn Growth Facilities in most major geog
Slide 14: Strong Financial Performance
Strong Financial Performance Net Revenue ($ millions) Diluted EPS $1,108 $1,062 $963 $8.10 $8.25 $871 $7.40 $774 $6.68 $4.17 CAGR- Compounded Annual Growth Rate 14
Slide 15: Liquidity and Capital Allocation Strategy
Liquidity and Capital Allocation Strategy Liquidity Position ($ millions) $322 Capital Allocation Opportunities $242* $187*** $187** 1) Support organic growth programs $133 • Consumer and commercial lending • Manufacturing expansion • Product development 2) Pursue attractive M&A Series1 3) Initiate
Slide 16: Acquisition of The Commodore Corporation
Acquisition of The Commodore Corporation • Purchase includes: Purchase Price Summary • 6 manufacturing facilities Total Transaction Value $153 Less: Other Adjustments (1) (16) • A commercial loan portfolio of Transaction Enterprise Value $137 more than $25mm in Sources & Uses outstanding principal C
Slide 17: Commodore Transaction Rationale
Commodore Transaction Rationale • Ideal geographic addition to Cavco’s footprint with strong operations in the Northeast/Midwest/Mid-Atlantic markets which provide a platform for future growth • Strong and experienced management team that has implemented manufacturing innovations with reapplication
Slide 18: Maintaining Liquidity after Commodore Acquisition
Maintaining Liquidity after Commodore Acquisition $322.3 $241.8 $186.8 $187.4 $182.3 $59.8 $34.1 $15.0 $12.2 $12.2 FY 2018 FY 2019 FY 2020 FY 2021 After Transaction FY 2021 Cash & Cash Equivalents Total Secured Financings and Other Note: Dollars in millions. Cavco Fiscal Year ends the Saturday close
Slide 19: Key Considerations
Key Considerations 1. Strategic growth has developed a strong national footprint 2. Affordable homes 3. Dynamic segment of the housing industry, well positioned for growth 4. Attractive investment factors 5. Positive consumer demographics and trends For further information on the Company, visit www.
Slide 20: Forward Looking Statements
Forward Looking Statements Certain statements contained in this release are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. In general, all stateme
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