Cavco Industries, Inc. · NASDAQ:CVCO
Cavco Industries — Merger or Acquisition (July 2021)
15 slides from Cavco Industries's merger presentation, Jul 26, 2021
Slide 1: Acquisition of The Commodore Corporation
investor.cavco.com Cavco Industries, Inc. Nasdaq: CVCO FACTORY-BUILT HOUSING SOLUTIONS A C Q U I S I T I O N O F T H E C O M M O D O R E C O R P O R AT I O N P R E S E N TAT I O N J U LY 2 0 2 1
Slide 2: The Commodore Corporation
The Commodore Corporation Company Overview Key Statistics • The Commodore Corporation (“Commodore”) is the • 3,700 homes (6,600 modules) shipped largest private, independent provider of manufactured in LTM March 2021 and modular housing in the US • 6 manufacturing facilities • Comprehensive product
Slide 3: Operational Excellence across a Variety of Products
Operational Excellence across a Variety of Products Premium Proven Track Record of Innovation • Very strong engineering organization with demonstrated innovation capability • Integrated design and engineering system Affordability enabling: • Fast design cycle time • Efficient customization Value • I
Slide 4: Transaction Summary
Transaction Summary • 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 Cash From Cavco Balanc
Slide 5: Transaction Rationale
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 potential
Slide 6: Pro Forma Manufacturing Locations
Pro Forma Manufacturing Locations Commodore HQ Cavco HQ Commodore Facilities (6) Cavco Facilities (19) LTM Revenue by Geography Standalone Pro Forma Midwest • Fills out a missing piece in the Cavco geographic Northeast 12% 12% footprint with a respected franchise in the Southwest Southwest 38% Midwe
Slide 7: Transaction Rationale
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 potential
Slide 8: Transaction Rationale
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 potential
Slide 9: Transaction Rationale
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 potential
Slide 10: Maintaining Liquidity
Maintaining Liquidity $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 closest to March 31. 10
Slide 11: Transaction Rationale
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 potential
Slide 12: Enterprise Value Multiples
Enterprise Value Multiples $19.1 7.4x 0.5x (1) (1) (2) (1) (3) EV / LTM Net Revenue EV / Adjusted EBITDA EV / Facility LTM Net Revenue Adjusted EBITDA (2) # of Facilities Commodore $258.0 $18.7 6 Note: Dollars in millions. Commodore Fiscal Year ends in September. LTM figures as of March 2021. (1) En
Slide 13: Appendix
Appendix Cayeo neebe Aicrbor oa) Charice Cavco rae INDUSTRIES, INC. Caveo NATIONWIDE
Slide 14: Non-GAAP Reconciliation
Non-GAAP Reconciliation Commodore FY 2019 FY 2020 Net Income $13.4 $12.8 Interest Expense 1.1 0.8 Income Tax Expense 0.1 0.1 Depreciation & Amortization 2.2 2.2 EBITDA $16.8 $15.9 Quality of Earnings Adjustments 1.8 3.0 Adjusted EBITDA $18.6 $18.9 Normalized Adjusted EBITDA (1) $18.7 Note: Dollars i
Slide 15: 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