Company: CVCO
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0001628280-25-047849
Chunk: 69

Company: CAVCO INDUSTRIES, INC.
Filing Date: 2025-10-31
Form: 10-Q
Item: Part I, Item 8
Chunk 69
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 prior year periods. 

Financial services Selling, general and administrative expenses for the three and six months ended September 27, 2025 increased primarily due to increases in compensation year over year. 

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Other Components of Net Income

Three Months Ended($ in thousands)September 27,2025September 28,2024ChangeInterest income$5,046 $5,692 $(646)(11.3)%Interest expense(112)(125)(13)(10.4)%Other income, net142 258 (116)45.0 %Income tax expense(14,873)(11,135)3,738 33.6 %Effective tax rate22.1 %20.3 %N/A1.8 % Six Months Ended($ in thousands)September 27,2025September 28,2024ChangeInterest income$10,149 $11,203 $(1,054)(9.4)%Interest expense(276)(215)61 28.4 %Other income, net142 147 (5)3.4 %Income tax expense(28,528)(20,567)7,961 38.7 %Effective tax rate21.5 %20.8 %N/A0.7 %

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 income, 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 and cash equivalents at September 27, 2025, together with cash flow from operations, will be sufficient to fund our operations, cover our obligations, provide for our planned acquisition of American Homestar and provide for growth for the next 12 months and into the foreseeable future. We maintain cash in U.S. Treasury and other money market funds, some of which is in excess of federally insured limits, but we have not experienced any losses with regards to such excesses. We expect to continue to evaluate potential acquisitions of, or strategic investments in, businesses that are complementary to the Company, as well as other expansion opportunities. Such transactions may require the use of cash and have other impacts on our liquidity and capital resources. We