Cavco Industries, Inc. · NASDAQ:CVCO
Cavco Industries — Investor Presentation (November 2022)
19 slides from Cavco Industries's investor presentation, November 2022
Slide 1: Cavco Industries, Inc. Investor Presentation November 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 NOVEMBER 2022
Slide 2: Cavco Overview
Cavco Overview Every employee at Cavco is involved in the important work of building, funding and insuring high quality, affordable homes. We take great pride in our work because these are the homes that provide stability and financial security for families across the country. Factory-built Housing
Slide 3: Nationwide System-built Housing Solutions
Nationwide System-built Housing Solutions Industry Leader Factory-built advantage • Founded in 1965, Nasdaq-listed • Affordability (CVCO) in 2003 • Cost advantages to site-built • Proportionally less impact of rising • 3rd largest U.S. Builder* interest rates • Well recognized brands, servicing all
Slide 4: Comprehensive Product Offering
Comprehensive Product Offering HUD-code Home Modular Home Multi-family/ Commercial Park Model 44
Slide 5: FY2022 Highlights
FY2022 Highlights Net Revenue ($ millions) $1,627 $1,108 $1,062 • Twelve straight years of growing $963 revenues and profits • Same-plant production up 10% despite labor and supply challenges • Commodore Homes acquisition Income Before Tax expanded footprint into the Northeast ($ millions) $212 and
Slide 6: H1 2023 Highlights
H12023 Highlights • Net revenue increased to $1.2 billion, or 69.0%, compared to $690 million in the first half of the prior year. • Gross profit as a percentage of Net revenue increased 210 bps to 25.9% and Factory-built housing gross profit as a percentage of Net revenue increased 280 bps to 25.5%
Slide 7: Acquisition- Solitaire Homes
Acquisition- Solitaire Homes Solitaire Homes Overview • Solitaire Homes (“Solitaire”) is a family-owned, Key Statistics vertically integrated factory-built housing • 4 manufacturing facilities manufacturer and retailer. Headquartered in • 1,577 homes sold in 2021 (excludes the Duncan, OK Duncan, Okl
Slide 8: Focus on value-creation
Focus on value-creation • Growth investment • Existing plant expansion • New plant start-ups • Acquisitions • Operational excellence • Product simplification • Process improvement • Responsible Balance Sheet management • People strategy 8
Slide 9: The Manufactured Housing Difference
The Manufactured Housing Difference Site-Built Manufactured Demand Drivers Housing Housing Recent loan rate increases have severely impacted • Interest rate increases affordability • Home price increases Median home price increased 24% over past 2 years Long-term undersupply has led to a nearly 6 mi
Slide 10: Corporate Responsibilities
Corporate Responsibilities 10
Slide 11: Manufactured Housing Differentiators
Manufactured Housing Differentiators Critical Component of addressing the housing deficit • Affordable housing • Most affordable form of home ownership • Ownership at monthly cost comparable to apartment rents • Average retail sales price approximately $107,000* (home only) • Compared to $350,000* f
Slide 12: Manufactured Housing Differentiators (continued)
Manufactured Housing Differentiators Critical Component of addressing the housing deficit (continued) • Rural housing, communities and urban in-fill • Faster production through controlled building environment • Can address affordable housing needs of all areas • Nearly 30% of new homes placed in com
Slide 13: Manufactured Housing Financing
Manufactured Housing Financing 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 • Interest rates approximately 9.5%* • Non-MH Freddie Mac 30yr rate approximately 7%* • Conforming
Slide 14: Manufactured Housing Industry Profile
Manufactured Housing Industry Profile 35 144 4,000 43,000 Homebuilding Home Sales Land-Lease Manufacturers Factories Centers Communities In 2021, manufactured housing accounted for: • 88% of all new homes sold under $200,000 • 97% of all new homes sold under $150,000 2 of every 3 manufactured homes
Slide 15: Manufactured Housing Industry
Manufactured Housing Industry 30 year annual shipments 373,000 363,000 353,000 349,000 400,000 340,000 Average Annual Home Shipments 304,000 350,000 254,000 Since HUD code adoption (1976) 190,000 30 year average 161,000 251,000 300,000 211,000 198,000 250,000 193,000 188,000 171,000 169,000 200,000
Slide 16: Industry Dynamics
Industry Dynamics Manufactured Housing is well-positioned to address the nation’s need for increased affordable housing • 6 million housing unit deficit, particularly at lower end where household growth has been exceeding supply for the past 15 years • Favorable demographics with growth of first tim
Slide 17: Investment Considerations
Investment Considerations 12 consecutive years of increasing revenue and profit Results Strong record of cost management, operational excellence and growth Growing industry positioned to address the nation’s Compelling affordable housing needs Industry Favorable demographics and demand trends Respon
Slide 18: For further information on the Company, visit www.cavcoindustries.com
For further information on the Company, visit www.cavcoindustries.com 16
Slide 19: 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
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