Company: CVCO
Filing Date: 2025-01-31
Form Type: 10-Q
Source: 0000278166-25-000007
Chunk: 72

Company: CAVCO INDUSTRIES, INC.
Filing Date: 2025-01-31
Form: 10-Q
Item: Part I, Item 8
Chunk 72
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155)(842)(687)(81.6)%Other income (expense), net168 (224)392 175.0 %Income tax expense(12,874)(7,920)4,954 62.6 %Effective tax rate18.6 %18.0 %N/A0.6 % Nine Months Ended($ in thousands)December 28,2024December 30,2023ChangeInterest income$16,556 $15,664 $892 5.7 %Interest expense(370)(1,365)(995)(72.9)%Other income, net315 557 (242)43.4 %Income tax expense(33,441)(32,274)1,167 3.6 %Effective tax rate19.9 %20.7 %N/A(0.8)%

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 (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 for both periods ended compared to the prior year periods primarily due to higher profit before income taxes. 

Liquidity and Capital Resources

We believe that cash and cash equivalents at December 28, 2024, together with cash flow from operations, will be sufficient to fund our operations, cover our obligations 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 believe we have sufficient liquid resources including our $75 million Revolving Credit Facility, which may be increased from time to time through additional term facilities up to an aggregate amount of $75 million, and no amounts are outstanding. Depending on our operating results and strategic opportunities, we may choose to seek additional or alternative sources of financing in the future. There can be no assurance that such financing would be available on satisfactory terms, if at all. If this