Cavco Industries, Inc. · NASDAQ:CVCO
Cavco Industries — Investor Presentation (May 2024)
22 slides from Cavco Industries's investor presentation, May 2024
Slide 1: Cavco Industries, Inc. Investor Presentation May 2024
Cavco Industries, Inc. INVESTOR PRESENTATION MAY 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 within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that are not historical facts. These forward-looking statements reflect
Slide 3: Cavco Overview
Cavco Overview Quality, affordable homes that provide shelter and security for families across the country Financial Performance* Twelve months ended March 30, 2024 Industry Leader Financial Services Revenue EBITDA** (Earnings before Gross Margin Percentage ONE OF THE • Mortgage and $ 1.8B 11.0 % 23
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 J AN U AR Y 18, 2022 J U L Y 1 4 , 2 0 22 A u g 8 , 20 22 A growing share of There’s a massive hous
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 I NDUS TR I E S , I NC. | NAS DAQ : 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 148 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 Modular Home HUD-Code Built off-site, Home transported, Constructed on assembled and a permanent customized on- chassis to the site, to local federal construction standard 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 Strong track record of growth, cost Balance Sheet Management management, strong free cash flow Zero generation and operational excellence $ 353M cash as of Q4’24 corporate debt* Capital Deployment *
Slide 14: Financial Results & Highlights for year ended Q4'24
Financial Results & Highlights for year ended Q4’24 Gross profit as a percentage of Earnings per diluted share net revenue strong at $ 18.37 CONTINUED Net Revenue 23.2 % $2,143 STRONG ($ millions) $1,795 EXECUTION $1,627 60 % $191M Factory $1,062 $1,108 $963 Factory utilization when home considering
Slide 15: Operational Excellence
Operational Excellence Finding innovative ways to increase manufacturing output and efficiencies and improve safety Safety Lean Manufacturing High capacity utilization in production plants Safety Now program builds a Increasing Reducing safety-first culture productivity waste Dynamic Ability to flex
Slide 16: Expanding Capacity
Expanding Capacity Operating with high levels of capacity utilization in production plants Added six new manufacturing facilities through the acquisition of Commodore M&A Added four new production lines with Solitaire Homes and retail distribution across three states Increased capacity by over 30% w
Slide 17: CountryPlace Mortgage
CountryPlace Mortgage Experienced MH lender with proven performance through economic cycles Specializing in Manufactured Housing Long History of Disciplined Risk Lending Since 1995 Management & Superior Performance CountryPlace MH loans Licenses in 36 states to originate & outperformed the single se
Slide 18: What's Next?
What’s Next? Manufacturing technology Two new production Digital marketing innovation facilities ramping up Zoning improvements Continuing to invest in Focus on environmental opening up new, urban productivity improvements issues and opportunities market opportunities across 31 production lines CAVC
Slide 19: The Difference
The Difference Corporate Superior Financial Operational Expanding responsibility homes strategy excellence capacity Growing our positive Providing high Committed to Operating safe and Growing through impact on people, quality, cost- responsible capital highly efficient value-creating communities and
Slide 20: Thank you.
Ee ella a cavco Thank you. Factory-built housing
Slide 21: Appendix: GAAP Reconciliation
Appendix: GAAP Reconciliation ($ in thousands) Reconciliation of twelve months ended March 30, 2024 Reconciliation of Free cash flow for the twelve months Earnings before ITDA % ended March 30, 2024 Net income (attributed to Cavco shareholders) $157,817 Cash from operations $224,682 Income tax expen
Slide 22: Cavco Portfolio of Brands
Cavco Portfolio of Brands Providing system-built housing solutions across a strong portfolio of brands C A VC O I NDUS TR I E S , I NC . | NA S DA Q : C VC O 22