Cavco Industries, Inc. · NASDAQ:CVCO
Cavco Industries — Investor Presentation (November 2015)
21 slides from Cavco Industries's investor presentation, November 2015
Slide 1: Providing Nationwide Housing Solutions
PROVIDING NATIONWIDE HOUSING SOLUTIONS Cavco Industries, Inc. NASDAQ: CVCO
Slide 2: Focused Transformation
Focused Transformation Cavco 2015 Revenue: $566.7 million Acquisitions • Standard Insurance • CountryPlace Mortgage Cavco 2009 Acquisition Commercial Revenue: $105.4 million • 3 factories Lending Acquisition • 1 factory 45 Retail 6 Retail Stores Stores Acquisition • 5 Factories • 49 Retail Stores Ac
Slide 3: Company Highlights
Company Highlights Cavco 2009 Cavco 2015 • 700 Employees • 3,700 Employees • Serving 8 states • Serving 40 states, Canada, Japan & • 2.3% market share Mexico (HUD building code) • $800+ million market capitalization (November 12, 2015) • 2nd largest U.S. Builder (HUD building code) • 15% market shar
Slide 4: Company Highlights
Company Highlights AND… • Commercial loan programs • Mortgage origination & servicing • Property & casualty insurance • Top industry brands • Cavco Homes, Fleetwood Homes, Palm Harbor Homes, Fairmont Homes and Chariot Eagle • MHI Manufacturer of the Year- 6 consecutive years (2010-2015, voted by pee
Slide 5: Our Building Facilities
Our Building Facilities 1. Palm Harbor Northwest 6. Durango Homes by Cavco 11. Fairmont Homes – I 16. Fleetwood East Millersburg, OR Phoenix, AZ Montevideo, MN Rocky Mt., VA 2. Fleetwood Pacific Northwest 7. Palm Harbor Austin 12. Fairmont Homes – II 17. Fleetwood South Woodburn, OR Austin, TX Monte
Slide 6: Manufactured Housing Industry Profile
Manufactured Housing Industry Profile 37 corporations 122 homebuilding factories 4,000 home sales centers 50,000 land-lease communities 75,000 full-time U.S. employees For the first nine months of 2015, manufactured housing has accounted for • 47% of all new homes sold under $200,000 • 74% of all ne
Slide 7: Manufactured Housing Industry Profile
Manufactured Housing Industry Profile • Approximately 9 million households with 22 million people living in manufactured homes (9% of nation’s single family housing stock) Page 7
Slide 8: Manufactured Housing Industry - 30 year annual shipments
Manufactured Housing Industry- 30 year annual shipments 373,000 363,000 400,000 353,000 349,000 340,000 350,000 304,000 300,000 254,000 251,000 245,000 233,000 218,000 211,000 250,000 198,000 193,000 188,000 171,000 169,000 200,000 147,000 131,000 131,000 118,000 150,000 96,000 82,000 70,000 64,000
Slide 9: Manufactured Housing Average Annual Home Shipments
Manufactured Housing Average Annual Home Shipments Since HUD code adopted 1976 207,000 20 year average 1995-2014 171,000 10 year average 2005-2014 77,000 5 year average 2010-2014 56,000 Page 9
Slide 10: Manufactured Home Shipments as a percent of New Single-Family Home Sales
Manufactured Home Shipments as a percent of New Single-Family Home Sales 30% 28.7% Sub-prime boom for 25% 17.5% site built Housing 20% 14.4% 14.7% 14.4% 12.9% 12.7% 15% 13.4% 10.3% 11% 11.7% 12.3% 10.8% 9.8% 10.1% 10% 5% *Jan – August 2015 Page 10
Slide 11: Investment Considerations
Investment Considerations NASDAQ symbol: CVCO • Solid balance sheet and liquidity position Liquidity • No significant land investment reducing capital requirements/risk • Well positioned in affordable housing market Positioning • Demonstrated ability to adjust to market conditions: profitable in all
Slide 12: Liquidity and Capital Allocation Strategy
Liquidity and Capital Allocation Strategy Liquidity Position ($ millions) Capital Allocation Priorities $96.6 $92.9 ** 1) Support organic growth programs $76.5 2) Fund capital investments, including $72.9 commercial and consumer loan programs $47.8 $41.1 * 3) Pursue attractive M&A 4) Stock buybacks
Slide 13: Strong Financial Performance
Strong Financial Performance Net Revenue ($ millions) Diluted EPS $566.7 $2.64 $443.1 $452.3 $2.19 * $433.3 $1.94 $171.8 $0.71 $0.41 * Includes a one-time $22 million gain on bargain purchase related to Palm Harbor acquisition Page 13
Slide 14: Potential Home Sales
Cavco Revenue Potential correlated to single-family home sales and manufactured-home industry sales Cavco Housing Segment $514m $800m $900m $1.07b $1.2b Revenue Potential Potential Home Sales Industry Industry Industry 103,000 Industry Industry Cavco Cavco Cavco Cavco Cavco 115,000 130,000 88,000 64
Slide 15: Economic Headwinds Diminishing
Economic Headwinds Diminishing Status of Overall Challenges to the Industry • Consumer confidence • Unemployment and underemployment • Financing availability, lack of secondary market Page 15
Slide 16: 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 $65,000 (home only) • Custom and larger homes at better value than s
Slide 17: Manufactured Home Owners
Manufactured Home Owners Large and diverse markets • First-time home buyers • First move-up buyers • Immigrants • Baby boomers, empty nesters, and retirees – Lifestyle oriented homebuyers – age-restricted communities • Second home and seasonal living – Attractively priced, low maintenance alternativ
Slide 18: Favorable Demographic Trends
Favorable Demographic Trends U.S. Demographic Indicators • US adult population estimated to expand by 12 million between 2015 and 2020 • Home ownership rises with age – Over 75% of the population age 55+ are home owners – Population of 55+ projected to increase 26% from 2015-2030 • Gen Y (age 18-39)
Slide 19: U.S. Birth Rates
U.S. Birth Rates The two largest and fastest growing demographics are prime buyers of manufactured homes • 51 to 69 year olds (Baby Boom) • 21 to 35 year olds (Echo Boom) Baby Boom Echo Boom 4.5 1946-1964 1980-1994 4 Births (millions) 3.5 3 2.5 1946 1948 1950 1952 1954 1956 1958 1960 1962 1964 1966
Slide 20: 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 Key Considerations For further information on the Company, visit www.
Slide 21: 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 and Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. In general, all sta
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