Company: CVCO
Filing Date: 2025-08-04
Form Type: 10-Q
Source: 0000278166-25-000128
Chunk: 5

Company: CAVCO INDUSTRIES, INC.
Filing Date: 2025-08-04
Form: 10-Q
Item: Part I, Item 2
Chunk 5
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0.6)%N/A41.5 %

Factory-built housing Gross profit for the three months ended June 28, 2025 increased due to higher sales volume. Gross profit as a percentage of Net revenue for the three months was flat as increased Net revenue per home sold was offset by increased input costs driven largely by increased material costs. 

Financial services Gross profit in dollars and as a percentage of Financial services Net revenue for the three months increased due to higher insurance premiums, lower claim losses and reduced costs from improved underwriting guidelines. 

 Selling, General and Administrative Expenses

Three Months Ended($ in thousands)June 28,2025June 29,2024ChangeFactory-built housing$63,154 $59,720 $3,434 5.8 %Financial services5,994 5,131 863 16.8 %$69,148 $64,851 $4,297 6.6 %Selling, general and administrative expenses as % of Net revenue12.4 %13.6 %N/A(1.2)%

Factory-built housing Selling, general and administrative expenses increased for the three months ended June 28, 2025 as a result of variable compensation driven by higher incentive compensation due to higher earnings compared to the prior year period. 

Financial services Selling, general and administrative expenses for the three months increased primarily due to increases in compensation year over year. 

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Other Components of Net Income

Three Months Ended($ in thousands)June 28,2025June 29,2024ChangeInterest income$5,103 $5,511 $(408)(7.4)%Interest expense(164)(90)74 82.2 %Other expense, net— (111)111 100.0 %Income tax expense(13,655)(9,432)4,223 44.8 %Effective tax rate20.9 %21.5 %N/A(0.6)%

Interest income consists primarily of interest earned on cash balances held in money market accounts, and interest earned on commercial floorplan lending. Interest expense consists primarily of interest related to finance leases. 

Other (expense), net primarily consists of realized and unrealized gains and losses on corporate investments and gains and losses from the sale of property, plant and equipment.

Income tax expense increased compared to the prior year period due to higher profit before income taxes. 

Liquidity and Capital Resources

We believe that cash