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What changed in CAVCO INDUSTRIES, INC.'s 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of CAVCO INDUSTRIES, INC.'s 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+159 added−169 removedSource: 10-K (2025-05-23) vs 10-K (2024-05-24)

Top changes in CAVCO INDUSTRIES, INC.'s 2025 10-K

159 paragraphs added · 169 removed · 137 edited across 5 sections

Item 1. Business

Business — how the company describes what it does

62 edited+9 added−15 removed131 unchanged
Biggest changeAs is common in the industry, our independent distributors typically sell homes produced by other manufacturers in addition to those we produce. Some independent distributors operate multiple sales outlets. No independent distributor accounted for 10% or more of factory-built housing revenue during any fiscal year within the three-year period ended March 30, 2024.
Biggest changeNo independent distributor accounted for 10% or more of factory-built housing revenue during any fiscal year within the three-year period ended March 29, 2025. We continually seek to increase wholesale shipments by growing sales at existing independent distributors and by identifying new independent distributors to sell our homes.
Each home typically contains a living room, dining area, kitchen, one to five bedrooms and one or more bathrooms, is equipped with central heat and hot water systems, kitchen appliances, floor coverings and window treatments. Upgrades can include fireplaces, central air conditioning, tile roofs, high ceilings, skylights, hardwood floors, custom cabinetry, granite countertops and eco-friendly elements.
Each home typically contains a living room, dining area, kitchen, one to five bedrooms and one or more bathrooms and is equipped with central heat and hot water systems, kitchen appliances, floor coverings and window treatments. Upgrades can include fireplaces, central air conditioning, tile roofs, high ceilings, skylights, hardwood floors, custom cabinetry, granite countertops and eco-friendly elements.
We work with a variety of partners to meet the expanding range of housing needs, including home buyer's private land, planned neighborhoods, recreational or resort properties and workforce accommodations for agriculture and industry. We employ a concerted effort to identify niche market opportunities where our diverse product lines and custom building capabilities provide us with a competitive advantage.
We work with a variety of partners to meet the expanding range of housing needs, including a home buyer's private land, planned neighborhoods, recreational or resort properties and workforce accommodations for agriculture and industry. We employ a concerted effort to identify niche market opportunities where our diverse product lines and custom building capabilities provide us with a competitive advantage.
This group is similarly interested in the value proposition; however, they are also motivated by the energy efficiency and low maintenance requirements of factory-built homes and by the lifestyle offered by planned communities that are specifically designed for homeowners who fall into this age group.
This group is similarly interested in the value proposition and energy efficiency; however, they are also motivated by the low maintenance requirements of factory-built homes and by the lifestyle offered by planned communities that are specifically designed for homeowners who fall into this age group.
We operate a total of 31 homebuilding production lines in Millersburg and Woodburn, Oregon; Riverside, California; Nampa, Idaho; Phoenix, Glendale and Goodyear, Arizona; Deming, New Mexico; Duncan, Oklahoma; Austin, Fort Worth, Seguin and Waco, Texas; Ojinaga, Mexico (2); Montevideo, Minnesota; Dorchester, Wisconsin; Nappanee and Goshen, Indiana; Lafayette, Tennessee; Douglas and Moultrie, Georgia; Shippenville (two lines) and Emlenton, Pennsylvania; Martinsville and Rocky Mount, Virginia; Crouse and Hamlet, North Carolina; and Ocala and Plant City, Florida.
We operate a total of 31 homebuilding production lines in Millersburg and Woodburn, Oregon; Riverside, California; Nampa, Idaho; Glendale, Goodyear and Phoenix, Arizona; Deming, New Mexico; Duncan, Oklahoma; Austin, Fort Worth, Seguin and Waco, Texas; Ojinaga, Mexico (two lines); Montevideo, Minnesota; Dorchester, Wisconsin; Nappanee and Goshen, Indiana; Lafayette, Tennessee; Douglas and Moultrie, Georgia; Shippenville (two) and Emlenton, Pennsylvania; Martinsville and Rocky Mount, Virginia; Crouse and Hamlet, North Carolina; and Ocala and Plant City, Florida.
There are a number of other national manufacturers competing for a significant share of the manufactured housing market in the United States, including Clayton Homes, Inc. and Skyline Champion Corporation, which may possess greater financial, manufacturing, distribution and marketing resources than us. There are significant competitors to CountryPlace in the markets served.
There are a number of other national manufacturers competing for a significant share of the manufactured housing market in the United States, including Clayton Homes, Inc. and Champion Corporation, which may possess greater financial, manufacturing, distribution and marketing resources than us. There are significant competitors to CountryPlace in the markets served.
Environmental, Social and Governance ("ESG") We are committed to being responsible stewards of the environment by considering our environmental impact and risks while conducting business and complying with environmental laws and regulations. In order to consider ourselves a successful company, we must also pay attention to and improve our impact on the environment.
Environmental, Social and Governance We are committed to being responsible stewards of the environment by considering our environmental impact and risks while conducting business and complying with environmental laws and regulations. In order to consider ourselves a successful company, we must also pay attention to and improve our impact on the environment.
Certain CFPB mortgage finance rules required under the Dodd-Frank Act, and modified by the Dodd-Frank Reform Act, apply to consumer credit transactions secured by a dwelling, which include real property mortgages and home-only loans secured by manufactured homes.
Certain CFPB mortgage finance rules required under the Dodd-Frank Act, as modified by the Dodd-Frank Reform Act, apply to consumer credit transactions secured by a dwelling, which include real property mortgages and home-only loans secured by manufactured homes.
Although manufactured homes are designed to be transportable, cost considerations result in very few being moved from their original site after installation. Factory-built Housing Segment Manufacturing Operations . Our manufacturing facilities employ between approximately 80 to 250 employees each. Most homes are constructed in one or more floor sections or modules on a permanently affixed steel or wood support chassis.
Although manufactured homes are designed to be transportable, cost considerations result in very few being moved from their original site after installation. Factory-built Housing Segment Manufacturing Operations . Our manufacturing facilities employ between approximately 80 to 260 employees each. Most homes are constructed in one or more floor sections or modules on a permanently affixed steel or wood support chassis.
A large segment of the population who are generally first-time home buyers, those born between 1976 to 1995 often referred to as Gen Y or Millennials, is attracted by the affordability, product diversity and location flexibility of factory-built homes. The age 55 and older category is reported to be the fastest growing segment of the U.S. population.
A large segment of the population who are generally first-time home buyers, those born between 1976 to 1995 often referred to as Gen Y or Millennials, is attracted by the affordability, product diversity, energy efficiency, and location flexibility of factory-built homes. The age 55 and older category is reported to be the fastest growing segment of the U.S. population.
We constantly evaluate new materials, systems and products for our homes to determine where we can make cost efficient changes to improve the quality of living in our homes and the impact on the environment. We design our homes to be energy efficient and environmentally friendly, including prioritizing, when possible, the use of renewable materials and provide lower utility costs.
We constantly evaluate new materials, systems and products for our homes to determine where we can make cost efficient changes to improve the quality of living in our homes and the impact on the environment. We design our homes to be energy efficient and environmentally friendly, including prioritizing, when possible, the use of renewable materials and providing lower utility costs.
Commercial buildings are constructed in the same facilities that the residential homes are built using similar assembly line processes and techniques. These commercial projects are generally engineered to the purchaser's specifications. The buildings are transported to the customer's site in the same manner as residential homes and are often set by crane and finished at the site.
Commercial buildings are constructed in the same facilities in which residential homes are built using similar assembly line processes and techniques. These commercial projects are generally engineered to the purchaser's specifications. The buildings are transported to the customer's site in the same manner as residential homes and are often set by crane and finished at the site.
Our loan contracts are secured by factory-built homes located in 27 states, with the largest concentrations in Texas, Florida, New Mexico and Oklahoma (see Note 6 to the Consolidated Financial Statements for additional geographic concentration information).
Our loan contracts are secured by factory-built homes located in 26 states, with the largest concentrations in Texas, Florida, New Mexico and Oklahoma (see Note 6 to the Consolidated Financial Statements for additional geographic concentration information).
The amended Safeguards Rule requires administrative, technical and physical safeguards to access, collect, distribute, process, protect, store, use, transmit, dispose of or otherwise handle certain types of consumer information. 12 Table of Contents Standard Casualty's insurance operations are regulated by the state insurance departments where it underwrites its policies.
The amended Safeguards Rule requires administrative, technical and physical safeguards to access, collect, distribute, process, protect, store, use, transmit, dispose of or otherwise handle certain types of consumer information. Standard Casualty's insurance operations are regulated by the state insurance departments where it underwrites its policies.
Appliances, floor coverings, roofing and certain other components are warranted by their original manufacturer for various lengths of time. Financial Services Segment Finance . We provide a source of retail home buyer financing on competitive terms through our subsidiary, CountryPlace.
Appliances, floor coverings, roofing and certain other components are warranted by their original manufacturer for various lengths of time. 5 Table of Contents Financial Services Segment Finance . We provide a source of retail home buyer financing on competitive terms through our subsidiary, CountryPlace.
These competitors include national, regional and local banks, mortgage banks and independent finance companies such as: 21st Mortgage Corporation, an affiliate of Clayton Homes, Inc. and Berkshire Hathaway, Inc.; Triad Financial Services, Inc.; and Cascade Financial Services. Certain of these competitors are larger than CountryPlace and have access to substantially more capital.
These competitors include national, regional and local banks, mortgage banks and independent finance companies such as: 21st Mortgage Corporation, an affiliate of Clayton Homes, Inc. and Berkshire Hathaway, Inc.; Vanderbilt Mortgage and Finance Inc.; and Triad Financial Services, Inc an affiliate of Champions Homes, Inc. Certain of these competitors are larger than CountryPlace and have access to substantially more capital.
The terms "Cavco," "us," "we," "our," the "Company," and any other similar terms refer to Cavco Industries, Inc. and its consolidated subsidiaries, unless otherwise indicated in this Annual Report on Form 10-K for the fiscal year ended March 30, 2024 ("Annual Report"). We construct homes using an assembly-line process in which each module or floor section is completed in stages.
The terms "Cavco," "us," "we," "our," the "Company," and any other similar terms refer to Cavco Industries, Inc. and its consolidated subsidiaries, unless otherwise indicated in this Annual Report on Form 10-K for the fiscal year ended March 29, 2025 ("Annual Report"). We construct homes using an assembly-line process in which each module or floor section is completed in stages.
We distribute our homes through a large network of independent distribution points in 48 states and Canada and 79 Company-owned U.S. retail stores, of which 47 are located in Texas. CountryPlace originates and services single-family, conforming and non-confirming residential mortgages and home-only loans for itself and others. CountryPlace is authorized by the U.S.
We distribute our homes through a large network of independent distribution points in 48 states and Canada and 80 Company-owned U.S. retail stores, of which 46 are located in Texas. CountryPlace originates and services single-family, conforming and non-confirming residential mortgages and home-only loans for itself and others. CountryPlace is authorized by the U.S.
Standard Casualty remains competitive in price, breadth of product offerings, product features, customer service, claim handling and use of technology. 8 Table of Contents Government Regulation Our manufactured homes are subject to a number of federal, state and local laws, codes and regulations.
Standard Casualty remains competitive in price, breadth of product offerings, product features, customer service, claim handling and use of technology. Government Regulation Our manufactured homes are subject to a number of federal, state and local laws, codes and regulations.
All business outside the state of Texas is written on a direct basis through local agents. Company Provided Financing Consumer Financing. Sales of factory-built homes are significantly affected by the availability and cost of consumer financing.
All business outside the state of Texas is written on a direct basis through local agents. 6 Table of Contents Company Provided Financing Consumer Financing. Sales of factory-built homes are significantly affected by the availability and cost of consumer financing.
While these initiatives support our ongoing efforts to expand product distribution, they also expose us to risks associated with the creditworthiness of this customer base and our inventory financing partners. Industry Overview General.
While these initiatives support our ongoing efforts to expand product distribution, they also expose us to risks associated with the creditworthiness of this customer base and our inventory financing partners. 7 Table of Contents Industry Overview General.
Materials used in homebuilding operations are mainly standard items carried by major suppliers and consist of wood, wood products, steel, gypsum wallboard, windows, doors, fiberglass insulation, carpet, vinyl, fasteners, plumbing materials, aluminum, appliances and electrical items.
Materials used in homebuilding operations are mainly standard items carried by major suppliers and include wood, wood products, steel, gypsum wallboard, windows, doors, fiberglass insulation, carpet, vinyl, fasteners, plumbing materials, aluminum, appliances and electrical items.
CountryPlace remains competitive in breadth of loan product offerings, interest rates, customer service and loan servicing capabilities. The market for homeowners' insurance is highly competitive.
CountryPlace remains competitive in breadth of loan product offerings, interest rates, customer service and loan servicing capabilities. 8 Table of Contents The market for homeowners' insurance is highly competitive.
On January 31, 2020, Federal Housing Finance Agency ("FHFA") initially released its "Servicer Eligibility 2.0" proposed enhancements to the requirements for public input.
The current eligibility requirements became effective on December 31, 2015. On January 31, 2020, Federal Housing Finance Agency ("FHFA") initially released its "Servicer Eligibility 2.0" proposed enhancements to the requirements for public input.
As mentioned above, we have started a program called Homes for Our Own. This program generally involves education and financial assistance for employees aspiring to own their own home. We strive to help employees understand the home buying process, from getting financially ready to buy and maintain a home to how the actual process works.
Our Homes for Our Own program generally involves education and financial assistance for employees aspiring to own their own home. We strive to help employees understand the home buying process, from getting financially ready to buy and maintain a home to how the actual process works.
We sold 16,928, 19,376 and 16,697 factory-built homes in fiscal years 2024, 2023 and 2022, respectively, through Company-owned and independent distribution channels. As of March 30, 2024, there were a total of 79 Company-owned retail stores, located in Oregon, Arizona, Nevada, New Mexico, Texas, Indiana, Oklahoma, Florida and New York. Forty-seven of the Company-owned retail stores are located in Texas.
We sold 19,753, 16,928 and 19,376 factory-built homes in fiscal years 2025, 2024 and 2023, respectively, through Company-owned and independent distribution channels. As of March 29, 2025, there were a total of 80 Company-owned retail stores, located in Oregon, Arizona, Nevada, New Mexico, Texas, Indiana, Oklahoma, Florida and New York. Forty-six of the Company-owned retail stores are located in Texas.
At Cavco, we are driven by the conviction that the best way to build value for our stakeholders is by investing in the development of our team members and by providing them with safe, positive workplaces that present opportunities to grow and succeed. This is an important source of our strength as a company.
At Cavco, we are driven by the conviction that the best way to build value for our stakeholders is by investing in the development of our team members and by providing them with safe, positive workplaces that present opportunities to grow and succeed.
Our home order backlog at March 30, 2024 was approximately $191 million in wholesale sales values, down $53 million from $244 million one year earlier. Distributors may cancel orders prior to production without penalty. After production of a particular home has commenced, the order becomes non-cancelable and the distributor is obligated to take delivery of the home.
Our home order backlog at March 29, 2025 was approximately $197 million in wholesale sales values, up $6 million from $191 million one year earlier. Distributors may cancel orders prior to production without penalty. After production of a particular home has commenced, the order becomes non-cancelable and the distributor is obligated to take delivery of the home.
Unless expressly noted, the information on our investor relations website or any other website is not incorporated by reference in this Annual Report and should not be considered part of this Annual Report or any other filing we make with the SEC.
Unless expressly noted, the information on our investor relations website or any other website is not incorporated by reference in this Annual Report and should not be considered part of this Annual Report or any other filing we make with the SEC. Additional information on our corporate governance policies can be found in our proxy statement filed with the SEC.
Cavco's Corporate Governance Guidelines, the charters of committees of our Board and our Code of Conduct can be found in the General Document section on our investor relations website at www.investor.cavco.com.
Our Executive Team will continue its stewardship through direct oversight and involvement. Cavco's Corporate Governance Guidelines, the charters of committees of our Board and our Code of Conduct can be found in the General Document section on our investor relations website at www.investor.cavco.com.
We also have a number of internal programs and campaigns to enhance the culture and capability of our workforce. Driven by our aspiration to make a difference by focusing on excellence, we implemented our SPARK initiative, which is designed to improve the onboarding experience of our team members and drive retention.
Driven by our aspiration to make a difference by focusing on excellence, we implemented our SPARK initiative, which is designed to improve the onboarding experience of our team members and drive retention.
In addition to improved safety training, especially for our newest associates, elements of this program include encouraging employee suggestions for a safer workplace, enhanced safety signage and reward programs for teams with the lowest safety incident rates and those with the most improved safety records.
In addition to improved safety training, especially for our newest associates, elements of this program include encouraging employee suggestions for a safer workplace, enhanced safety signage and reward programs for teams with the lowest safety incident rates and those with the most improved safety records. 14 Table of Contents We also have a number of internal programs and campaigns to enhance the culture and capability of our workforce.
As of March 30, 2024, we had a network of independent distributors, of whom 10% were in North Carolina, 9% in Arizona, 6% in each of Florida and Texas, 5% each in California, New York and South Carolina, based on the quantity of wholesale shipments during fiscal year 2024. The remaining 54% were in 41 other states and Canada.
As of March 29, 2025, we had a network of independent distributors, of whom 9% were in North Carolina, 8% in Arizona, 7% in Texas, 6% in South Carolina, and 5% in each of California, Florida, Georgia and New York, based on the quantity of wholesale shipments during fiscal year 2025.
Independent distributors frequently finance a portion of their home purchases through wholesale floor plan financing arrangements. In most cases, we receive a deposit or a commitment from the distributor's lender for each home ordered. We then manufacture the home and ship it at the distributor's expense. Payment is due from the lender upon shipment of the product.
In most cases, we receive a deposit or a commitment from the distributor's lender for each home ordered. We then manufacture the home and ship it at the distributor's expense. Payment is due from the lender upon shipment of the product.
Additionally, demand patterns for park model RVs, cabins and homes used primarily for retirement or seasonal living partially offset general housing seasonality. CountryPlace realizes no seasonal impacts from its mortgage servicing operations.
Diversification among our product lines and operations has partially offset the impact of any seasonal fluctuations. Additionally, demand patterns for park model RVs, cabins and homes used primarily for retirement or seasonal living partially offset general housing seasonality. 12 Table of Contents CountryPlace realizes no seasonal impacts from its mortgage servicing operations.
We call it Homes for our Own, and it generally involves two primary elements: education on the home buying process and financial assistance programs. The communities where we live and work sustain local businesses, families and, of course, our employees. We recognize that Cavco's success is intrinsically linked to the well-being of our local communities.
Homes for our Own is a formalized internal program that provides support for our people, and it generally involves two primary elements: education on the home buying process and financial assistance programs. The communities where we live and work sustain local businesses, families and, of course, our employees.
Accordingly, we are unable to predict the ultimate cost of compliance with all applicable laws and enforcement policies. Seasonality The housing industry is generally subject to seasonal fluctuations based on new home buyer purchasing patterns.
Accordingly, we are unable to predict the ultimate cost of compliance with all applicable laws and enforcement policies. Seasonality The housing industry is generally subject to seasonal fluctuations based on new home buyer purchasing patterns. Demand for our core new home products typically peaks each spring and summer before declining in the winter, consistent with the overall housing industry.
Most loans originated by us are sold to investors, and we provide various loan servicing functions for non-affiliated entities under contract. 5 Table of Contents The loan contracts are fixed and step rate and have monthly scheduled payments of principal and interest.
Most loans originated by us are sold to investors, and we provide various loan servicing functions for non-affiliated entities under contract. The loan contracts are fixed and step rate and have monthly scheduled payments of principal and interest. The scheduled payments for each contract would, if made on their respective due dates, result in a full amortization of the contract.
According to data reported by the Manufactured Housing Institute, approximatel y 89,000 H UD code manufactured homes were shipped during calendar year 2023, compared to the 113,000 shipped during calendar year 2022 and 106,000 shipments in 2021. 7 Table of Contents Home Buyer Demographics.
According to data reported by the Manufactured Housing Institute, approximately 103,000 HUD code manufactured homes were shipped during calendar year 2024, compared to the 89,000 shipped during calendar year 2023 and 113,000 shipments in 2022. Home Buyer Demographics.
Consumer confidence is especially important among manufactured home buyers interested in our products for seasonal or retirement living. The two largest manufactured housing consumer demographics, young adults and those who are age 55 and older, are both growing. According to World Bank, the U.S. adult population is estimated to expand by approximately 8.0 million between 2024 and 2029.
Consumer confidence is especially important among manufactured home buyers interested in our products for seasonal or retirement living. The two largest manufactured housing consumer demographics, young adults and those who are age 55 and older, are both growing.
According to statistics published by the Institute for Building Technology and Safety and the United States Department of Commerce, Bureau of the Census, for the 2023 calendar year, manufactured housing wholesale shipments of homes constructed in accordance with the HUD code accounted for an estimated 11.8% of all new single-family homes sold.
According to statistics published by the Manufactured Housing Institute, for the 2024 calendar year, manufactured housing wholesale shipments of homes constructed in accordance with the HUD code accounted for an estimated 13.1% of all new single-family homes sold.
Recognizing that our local team members often know the needs of their communities best, we launched a Company-wide CAVCOmmunity program to provide each location with access to funding to supplement their team's volunteer efforts. We are enormously proud of our employees' charitable efforts to support the needs of their fellow team members as well as their local community at large.
Cavco employees across the Company engage in volunteering efforts that are important to their communities. Recognizing that our local team members often know the needs of their communities best, we launched a Company-wide CAVCOmmunity program to provide each location with access to funding to supplement their team's volunteer efforts.
We are committed to building and strengthening communities in which we do business because it is a critical part of who we are and a natural outgrowth of our ONE Cavco mindset. Cavco employees across the Company engage in volunteering efforts that are important to their communities.
We recognize that Cavco's success is intrinsically linked to the well-being of our local communities. We are committed to building and strengthening communities in which we do business because it is a critical part of who we are and a natural outgrowth of our ONE Cavco mindset.
The maximum amount of contingent obligations under such repurchase agreements was approximately $120.5 million and $177.9 million as of March 30, 2024 and April 1, 2023, respectively. The decrease is the result of lower home sales prices and a decreased number of units under these programs.
The maximum amount of contingent obligations under such repurchase agreements was approximately $133.1 million and $120.5 million as of March 29, 2025 and March 30, 2024, respectively. The increase is the result of an increased number of units under these programs.
We are also a leading producer of park model RVs, vacation cabins and factory-built commercial structures. Our finance subsidiary, CountryPlace Acceptance Corp.
We are one of the largest producers of manufactured homes in the United States, based on reported wholesale shipments. We are also a leading producer of park model RVs, vacation cabins and factory-built commercial structures. Our finance subsidiary, CountryPlace Acceptance Corp.
We take great pride in our impact through the homes, loans and insurance we provide to deserving families. We recently launched a new consumer-facing affordable home marketplace, taking a big step towards fulfilling our ONE Cavco goal to help customers buy homes that improve their lives. We are committed to responsible corporate governance.
We launched a new consumer-facing affordable home marketplace, taking a big step towards fulfilling our ONE Cavco goal to help customers buy homes that improve their lives. We are committed to responsible corporate governance. Governance starts with the Company's leadership, which includes the executive officers and the Company's Board.
Fannie Mae, Freddie Mac and Ginnie Mae each require that lenders such as CountryPlace maintain minimum levels of capital and liquidity to be eligible to sell or service single-family mortgage loans purchased by the GSEs or included in mortgage-backed securities guaranteed by Ginnie Mae. The current eligibility requirements became effective on December 31, 2015.
We are aware of only a small number of loans currently being securitized under the Ginnie Mae program. 11 Table of Contents Fannie Mae, Freddie Mac and Ginnie Mae each require that lenders such as CountryPlace maintain minimum levels of capital and liquidity to be eligible to sell or service single-family mortgage loans purchased by the GSEs or included in mortgage-backed securities guaranteed by Ginnie Mae.
We continually seek to increase wholesale shipments by growing sales at existing independent distributors and by identifying new independent distributors to sell our homes. We provide comprehensive sales and product training, either physically or virtually, to independent retail sales associates, including providing opportunities to visit our manufacturing facilities to discuss and view new product designs as they are developed.
We provide comprehensive sales and product training, either physically or virtually, to independent retail sales associates, including providing opportunities to visit our manufacturing facilities to discuss and view new product designs as they are developed. These training seminars facilitate the sale of our homes by increasing the skill and knowledge of the retail sales consultants.
The Company expects high standards of ethical conduct from its Board members, management, and all employees as described in Cavco's Corporate Governance Guidelines and in Cavco's Code of Conduct. We continue to focus on setting clear expectations. Our Executive Team will continue its stewardship through direct oversight and involvement.
As a public company, officers and Board members are fiscally prudent and legally responsible for proper use of Company funds and assets. The Company expects high standards of ethical conduct from its Board members, management, and all employees as described in Cavco's Corporate Governance Guidelines and in Cavco's Code of Conduct. We continue to focus on setting clear expectations.
Every time our team members work to improve the lives of others, it is a reflection of who we are at Cavco. At Cavco, we are fortunate that the very nature of what we do has a positive impact on individual lives and the communities we serve. We provide the most affordable opportunity for homeownership.
At Cavco, we are fortunate that the very nature of what we do has a positive impact on individual lives and the communities we serve. We provide the most affordable opportunity for homeownership. We take great pride in our impact through the homes, loans and insurance we provide to deserving families.
These training seminars facilitate the sale of our homes by increasing the skill and knowledge of the retail sales consultants. In addition, we display our products at trade shows and support our distributors through the distribution of floor plan literature, brochures, decor selection displays, point of sale promotional material and Internet-based marketing assistance.
In addition, we display our products at trade shows and support our distributors through the distribution of floor plan literature, brochures, decor selection displays, point of sale promotional material and Internet-based marketing assistance. Independent distributors frequently finance a portion of their home purchases through wholesale floor plan financing arrangements.
As we work together to make a difference in providing affordable homes nationally, we are committed to fostering the dream of homeownership for our team members. At Cavco, we have launched a formalized internal program to support our people.
This is an important source of our strength as a company. 13 Table of Contents As we work together to make a difference in providing affordable homes nationally, we are committed to fostering the dream of homeownership for our team members.
For a description of wholesale floor plan financing arrangements used by independent distributors and our obligations in connection with these arrangements, see "Company Provided Financing — Commercial Financing" below. Warranties. We provide the retail home buyer a one-year limited warranty covering defects in material or workmanship in home structure, plumbing and electrical systems.
For a description of wholesale floor plan financing arrangements used by independent distributors and our obligations in connection with these arrangements, see "Company Provided Financing — Commercial Financing" below.
We believe that growing our investment and participation in home-only lending may provide additional sales growth opportunities for our factory-built housing operations and reduce our exposure to the actions of independent lenders. 6 Table of Contents We also work independently and with industry trade associations to encourage favorable legislative and GSE action to address the financing needs of buyers of affordable homes.
We also develop and invest in home-only lending programs to grow sales of homes through traditional distribution points. We believe that growing our investment and participation in home-only lending may provide additional sales growth opportunities for our factory-built housing operations and reduce our exposure to the actions of independent lenders.
Federal law requires GSEs to implement the "Duty to Serve" requirements specified in the Federal Housing Enterprises Financial Safety and Soundness Act of 1992, as amended by the Housing and Economic Recovery Act of 2008Fannie Mae and Freddie Mac periodically update their Underserved Markets Plans that describe, with specificity, the actions they would take over the applicable plan period to fulfill the "Duty to Serve" obligation.
Fannie Mae and Freddie Mac periodically update their Underserved Markets Plans that describe, with specificity, the actions they would take over the applicable plan period to fulfill the "Duty to Serve" obligation.
It also allows workers to use public transportation or carpool to the same work location each day. Rather than having crews and managers potentially driving to multiple work sites each day, our entire work force makes one trip to the manufacturing plant, thereby reducing auto emissions and fuel costs.
Rather than having crews and managers potentially driving to multiple work sites each day, our entire work force makes one trip to the manufacturing plant, thereby reducing auto emissions and fuel costs. Our repetitive manufacturing process minimizes waste and maximizes the utilization of materials that would otherwise go to a landfill.
The scheduled payments for each contract would, if made on their respective due dates, result in a full amortization of the contract. Loan contracts secured by collateral that is geographically concentrated could experience higher rates of delinquencies, default and foreclosure losses than loan contracts secured by collateral that is more geographically dispersed.
Loan contracts secured by collateral that is geographically concentrated could experience higher rates of delinquencies, default and foreclosure losses than loan contracts secured by collateral that is more geographically dispersed.
We also recognize the responsibility to educate our homebuyers on the impact they can have on the energy efficiency of their home by making some informed decisions during the planning and construction process. 13 Table of Contents Construction waste currently makes up 60 million tons of the debris filling the nation's limited landfill space each year according to a 2018 Environmental Protection Agency ("EPA") report.
We also recognize the responsibility to educate our homebuyers on the impact they can have on the energy efficiency of their home by making some informed decisions during the planning and construction process.
We are single-minded in our focus to engage, develop and support the people in our Company so we can all have rewarding careers and reach our fullest potential.
Every component we build is a system within a system. This reduces waste and increases efficiency. There are generally no wasted plumbing, duct or electrical runs or materials. We are single-minded in our focus to engage, develop and support the people in our Company so we can all have rewarding careers and reach our fullest potential.
To that end, we are committed to providing a safe workplace and opportunities for professional growth and advancement based on performance, qualification, demonstrated skills and achievement at a fair wage.
Human Capital Resources Our workforce is made up of approximately 7,000 skilled full-time team members. We believe that an engaged, productive workforce is critically important to creating stockholder value. To that end, we are committed to providing a safe workplace and opportunities for professional growth and advancement based on performance, qualification, demonstrated skills and achievement at a fair wage.
Our manufacturing process of building homes in centralized, environmentally protected building centers allows us to minimize adverse impacts on the environment, resulting in reduced levels of waste. Building an entire home at a single site factory centralizes and reduces material deliveries as they are ordered and shipped in bulk to one location.
Building an entire home at a single site factory centralizes and reduces material deliveries as they are ordered and shipped in bulk to one location. It also allows workers to use public transportation or carpool to the same work location each day.
Home-only loans have languished for several years while these changes were meant to broaden home-only financing availability for prospective homeowners. We are aware of only a small number of loans currently being securitized under the Ginnie Mae program. 11 Table of Contents On March 27, 2020, the CARES Act was signed into law.
Home-only loans have languished for several years while these changes were meant to broaden home-only financing availability for prospective homeowners.
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We are one of the largest producers of manufactured homes in the United States, based on reported wholesale shipments. Our products are marketed under a variety of brand names including Cavco, Fleetwood, Palm Harbor, Nationwide, Fairmont, Friendship, Chariot Eagle, Destiny, Commodore, Colony, Pennwest, R-Anell, Manorwood, MidCountry and Solitaire.
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The remaining 50% were in 40 other states and Canada. As is common in the industry, our independent distributors typically sell homes produced by other manufacturers in addition to those we produce. Some independent distributors operate multiple sales outlets.
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Ginnie Mae permits cash obligations on loans in forbearance from COVID-19 to be offset by other incoming cash flows from loans such as loan pre-payments.
Added
In the fourth quarter of fiscal 2025, the Company modified its extensive manufacturing brand lineup by changing all of its various trade names to a new, unified brand under the Cavco name, followed by the city it’s located in.
Removed
Through fiscal year 2024, monthly collections of principal and interest from borrowers have exceeded scheduled principal and interest payments owed to investors; however, any future regulatory mandates requiring extended forbearance could negatively impact future cash obligations.
Added
This new branding approach aligns each facility under the strength of the corporate brand while honoring the local expertise and strong reputations built in each region. To further enhance customer experience and marketing efficiency, the Company is also streamlining its product segmentation. Going forward, homes will be marketed by clearly defined product lines instead of legacy brand names.
Removed
We also develop and invest in home-only lending programs to grow sales of homes through traditional distribution points.
Added
This change is designed to improve digital discoverability and simplify the home buying process for consumers, dealers, community developers, and partners. Warranties. We provide the retail home buyer a one-year limited warranty covering defects in material or workmanship in home structure, plumbing and electrical systems.
Removed
While the CARES Act contains a variety of provisions, including, among other things, unemployment benefit expansion and emergency funding of public health care initiatives, it also grants forbearance rights and foreclosure protection to borrowers with loans purchased by a GSE or insured by FHA, USDA or VA.
Added
We also work independently and with industry trade associations to encourage favorable legislative and GSE action to address the financing needs of buyers of affordable homes.
Removed
Borrowers with these federally backed mortgage loans who are experiencing hardship due to the COVID-19 pandemic may request forbearance for six months, regardless of delinquency status. Forbearance may be extended for an additional six months at the borrower's request, and they may request up to two additional three-month extensions, for a maximum of 18 months of total forbearance .
Added
Federal law requires GSEs to implement the "Duty to Serve" requirements specified in the Federal Housing Enterprises Financial Safety and Soundness Act of 1992, as amended by the Housing and Economic Recovery Act of 2008.
Removed
The federal foreclosure moratorium expired on July 31, 2021; however, mortgage servicers were precluded from proceeding with foreclosure until January 1, 2022. Effective August 31, 2021, the CFPB published rules to help homeowners pursue loss mitigation options with mortgage servicers to avoid foreclosure. These rules allowed mortgage servicers to offer certain streamlined loss mitigation options.
Added
According to World Bank population estimates and projections released December 2024, the U.S. adult population is estimated to expand by approximately 7.7 million between 2025 and 2030.
Removed
The FHA allowed for an extension of the foreclosure-related eviction moratorium for foreclosed borrowers through September 30, 2021. When the eviction moratorium for federally backed loans ended, mortgage servicers could only proceed with foreclosures if borrowers had abandoned their properties or had not responded to mortgage servicers' efforts to assist with loss mitigation opti ons.
Added
Construction waste currently makes up 60 million tons of the debris filling the nation's limited landfill space each year according to a 2018 Environmental Protection Agency ("EPA") report. Our manufacturing process of building homes in centralized, environmentally protected building centers allows us to minimize adverse impacts on the environment, resulting in reduced levels of waste.
Removed
On May 11, 2023, the national emergency declaration for the COVID-19 pandemic ended. The Treasury Department issued guidance regarding the Homeowner Assistance Fund ("HAF"), which was established under section 3206 of the American Rescue Plan Act of 2021.
Added
We are enormously proud of our employees' charitable efforts to support the needs of their fellow team members as well as their local community at large. Every time our team members work to improve the lives of others, it is a reflection of who we are at Cavco.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

34 edited+9 added−11 removed86 unchanged
Biggest changeSuch D&O insurance contains certain customary exclusions that may make it unavailable to the Company or its directors and officers in the event it is needed; and, in any case, the D&O insurance may not be adequate to fully protect the Company against liability for the conduct of its directors, officers or employees or the Company's indemnification obligations to its directors and officers. 25 Table of Contents General Risk Factors The loss of any of the Company's executive officers, senior leadership or business operations managers or a significant number of operating employees could reduce its ability to execute its business strategy and could have a material adverse effect on its business and results of operations We are dependent to a significant extent upon the efforts of our executive officers, senior leaders and business operations managers.
Biggest changeGeneral Risk Factors The loss of any of the Company's executive officers, senior leadership or business operations managers or a significant number of operating employees could reduce its ability to execute its business strategy and could have a material adverse effect on its business and results of operations We are dependent to a significant extent upon the efforts of our executive officers, senior leaders and business operations managers.
We have experienced production halts from shortages of primary building materials in the past, and although we attempt to increase the sales prices of our homes in response to higher materials costs, such increases may lag behind the escalation of material costs. 16 Table of Contents Excessive health and safety incidents relating to our operations could be costly to the Company Home construction is inherently dangerous.
We have experienced production halts from shortages of primary building materials in the past, and although we attempt to increase the sales prices of our homes in response to higher materials costs, such increases may lag behind the escalation of material costs. 16 Table of Contents Health and safety incidents relating to our operations could be costly to the Company Home construction is inherently dangerous.
We operate 29 homebuilding production lines located in the Northwest, Southwest, South, Southeast, Midwest and Mid-Atlantic regions. We have a significant presence in Texas with factories in the cities of Austin, Fort Worth, Seguin and Waco, and a facility in Presidio that serves as a shipping point for homes produced in Mexico.
We operate 29 homebuilding production lines located in the Northwest, Southwest, South, Southeast, Midwest and Mid-Atlantic regions and 2 production lines in Mexico. We have a significant presence in Texas with factories in the cities of Austin, Fort Worth, Seguin and Waco, and a facility in Presidio that serves as a shipping point for homes produced in Mexico.
Increases in the rate of cancellations of home sales orders could have an adverse effect on the Company's business Our backlog reflects home sales orders with our distributors and home buyers for homes that have not yet entered production. Distributors and home buyers may cancel orders prior to production without penalty.
Increases in the rate of cancellations of home sales orders could have an adverse effect on the Company's business Our home order backlog reflects home sales orders with our distributors and home buyers for homes that have not yet entered production. Distributors and home buyers may cancel orders prior to production without penalty.
In the past, property owners often have resisted the adoption of zoning ordinances permitting the location of manufactured homes in residential areas, which we believe has restricted the growth of the industry. Manufactured homes may not achieve widespread acceptance and localities may not adopt zoning ordinances permitting the development of manufactured home communities.
In the past, area property owners often have resisted the adoption of zoning ordinances permitting the location of manufactured homes in residential areas, which we believe has restricted the growth of the industry. Manufactured homes may not achieve widespread acceptance and localities may not adopt zoning ordinances permitting the development of manufactured home communities.
In the ordinary course of business, we collect, store, process and transmit significant amounts of sensitive information, including proprietary business information, personal information and other confidential information, including that of our customers, vendors and suppliers. All information systems are subject to disruption, breach or failure.
In the ordinary course of business, we collect, store, process and transmit significant amounts of sensitive information, including proprietary business information, personal information and other confidential information, including that of our customers, employees, vendors and suppliers. All information systems are subject to disruption, breach or failure.
Such differences could have a material adverse effect on our income tax provision or benefit, or other tax reserves, and, consequently, on our results of operations, financial position or cash flows. 21 Table of Contents A prolonged delay by Congress and the President to approve budgets or continuing appropriation resolutions to facilitate the operations of the federal government could delay the completion of home sales and/or cause cancellations, and thereby negatively impact the Company's deliveries and revenues Congress and the President may not timely approve budgets or appropriation legislation to facilitate the operations of the federal government.
Such differences could have a material adverse effect on our income tax provision or benefit, or other tax reserves, and, consequently, on our results of operations, financial position or cash flows. 21 Table of Contents A prolonged delay by Congress and the President to approve budgets or continuing appropriation resolutions to facilitate the operations of the federal government could delay the completion of home sales and/or cause cancellations, and thereby negatively impact the Company's deliveries and revenue Congress and the President may not timely approve budgets or appropriation legislation to facilitate the operations of the federal government.
Sudden increases in price or lack of availability of raw materials can be caused by natural disaster, regulation or other market forces, as has occurred in recent years.
Sudden increases in price or lack of availability of raw materials can be caused by a natural disaster, regulation or other market forces, as has occurred in recent years.
Although we offer loan products and price our loans at levels that we believe are marketable at the time of credit application approval, market conditions for such loans may deteriorate rapidly and significantly. Our ability to respond to changing market conditions is affected by credit approval and funding commitments we make in advance of loan completion.
Although we offer loan products and price our loans at levels that we believe are marketable at the time of credit application approval, market conditions for such loans may deteriorate rapidly and significantly. Our ability to respond to changing market conditions is affected by credit approval and funding commitments we make in advance of loan completion and home closing.
Most loans we originate are sold to investors. We also provide various loan servicing functions for non-affiliated entities under contract. If customers are unable to repay their loans, we may be adversely affected. We make loans to borrowers that we believe are creditworthy based on underwriting guidelines.
Most loans we originate are sold to third party investors. We also provide various loan servicing functions for non-affiliated entities under contract. If customers are unable to repay their loans, we may be adversely affected. We make loans to borrowers that we believe are creditworthy based on underwriting guidelines.
If there is a downturn in the housing market, or if financing becomes less available or more expensive to obtain with higher interest rates, more distributors and homebuyers may cancel their agreements of sale with us, which would have an adverse effect on our business and results of operations. 17 Table of Contents The Company may not be able to successfully integrate past or future acquisitions to attain the anticipated benefits and such acquisitions may adversely impact the Company's liquidity We have acquired industry competitors in the past and may consider additional strategic acquisitions if such opportunities arise.
If there is a downturn in the housing market, or if financing becomes less available or more expensive to obtain due to higher interest rates or otherwise, more distributors and homebuyers may cancel their agreements of sale with us, which would have an adverse effect on our business and results of operations. 17 Table of Contents The Company may not be able to successfully integrate past or future acquisitions to attain the anticipated benefits and such acquisitions may adversely impact the Company's liquidity We have acquired industry participants in the past and may consider additional strategic acquisitions if such opportunities arise.
We have loan contracts secured by factory-built homes located in 27 states, including Texas, Florida, New Mexico and Oklahoma. Standard Casualty also specializes in writing contracts for the manufactured housing industry, primarily serving the Texas, Arizona, New Mexico and Nevada markets.
We have loan contracts secured by factory-built homes located in 26 states, including Texas, Florida, New Mexico and Oklahoma. Standard Casualty also specializes in writing contracts for the manufactured housing industry, primarily serving the Texas, Arizona, New Mexico and Nevada markets.
Our goodwill could be impaired if developments affecting our manufacturing operations or the markets in which we produce manufactured homes lead us to conclude that the cash flows expected to be derived from our manufacturing operations will be substantially reduced. 20 Table of Contents If the Company is unable to establish or maintain relationships with its independent distributors who sell the Company's homes, revenue could decline During fiscal year 2024, approximately 77% of our sales of factory-built homes were to independent distributors.
Our goodwill could be impaired if developments affecting our manufacturing operations or the markets in which we produce manufactured homes lead us to conclude that the cash flows expected to be derived from our manufacturing operations will be substantially reduced. 20 Table of Contents If the Company is unable to establish or maintain relationships with its independent distributors who sell the Company's homes, our revenue could decline During fiscal year 2025, approximately 79% of our sales of factory-built homes were to independent distributors.
Property and casualty insurance companies are subject to certain risk-based capital requirements usually in accordance with model rules as specified by the National Association of Insurance Commissioners. Under these requirements, the amount of capital and surplus maintained by a property and casualty insurance company is determined based on its various risk factors.
Property and casualty insurance companies are subject to certain risk-based capital requirements usually in accordance with model rules as specified by the National Association of Insurance Commissioners ("NAIC"). Under these requirements, the amount of capital and surplus maintained by a property and casualty insurance company is determined based on NAIC's various risk factors.
Legal and Regulatory Risks If favorable local zoning ordinances are not adopted or if local zoning ordinances become further restricted, the Company's revenue could decline and its business could be adversely affected Manufactured housing communities and individual home placements are subject to local zoning ordinances and other local regulations relating to utility service and construction of roadways.
If favorable local zoning ordinances are not adopted or if local zoning ordinances become further restricted, the Company's revenue could decline and its business could be adversely affected Manufactured housing communities and individual home placements are subject to local zoning ordinances and other local regulations relating to utility service and construction of roadways.
Please refer to Part I, Item 1, "Business - Government Regulation" for a description of many of these laws and 24 Table of Contents regulations. Our failure to comply with such laws and regulations could expose us to a wide variety of sanctions, including closing one or more manufacturing facilities.
Please refer to Part I, Item 1, "Business - Government Regulation" for a description of many of these laws and regulations. Our failure to comply with such laws and regulations could expose us to a wide variety of sanctions, including closing one or more manufacturing facilities.
Some of the Company's manufacturing production employees are represented by unions, and failure to negotiate reasonable collective bargaining agreements may result in strikes, work stoppages or substantially higher ongoing labor costs Certain manufacturing production employees (approximately 7% of our total employees) are represented by unions and are covered by collective bargaining agreements, which expire in April 2026 and February 2027.
Some of the Company's manufacturing production employees are represented by unions, and failure to negotiate reasonable collective bargaining agreements may result in strikes, work stoppages or substantially higher ongoing labor costs Certain manufacturing production employees (approximately 7% of our total employees as of March 29, 2025) are represented by unions and are covered by collective bargaining agreements, which expire in April 2026 and February 2027.
A write-off of all or part of the Company's goodwill could adversely affect its results of operations and financial condition As of March 30, 2024, 9% of our total assets consisted of goodwill, all of which is attributable to our factory-built housing segment.
A write-off of all or part of the Company's goodwill could adversely affect its results of operations and financial condition As of March 29, 2025, 9% of our total assets consisted of goodwill, all of which is attributable to our factory-built housing segment.
Further, of the 79 Company-owned retail stores, 47 are located in Texas. Loan contracts secured by collateral that is geographically concentrated could experience higher rates of delinquencies, default and foreclosure losses than loan contracts secured by collateral that is more geographically dispersed.
Further, of the 80 Company-owned retail stores, 46 are located in Texas. Loan contracts secured by collateral that is geographically concentrated could experience higher rates of delinquencies, default and foreclosure losses than loan contracts secured by collateral that is more geographically dispersed.
Business and Operational Risks The impact of local or national emergencies can adversely affect our financial results, condition and prospects, including such impacts from state and federal regulatory action that restrict our ability to operate our business in the ordinary course and impacts on (i) customer demand and the availability of financing for our products, (ii) our supply chain and the availability of raw materials for the manufacture of our products, (iii) the availability of labor and the health and safety of our workforce and (iv) our liquidity and access to the capital markets Severe weather conditions, natural disasters, hostilities and social unrest, terrorist activities, health epidemics or pandemics, concerns about the stability and solvency of financial institutions (such as liquidity concerns raised by the recent closures of Silicon Valley Bank, Signature Bank and First Republic Bank), or other local or national emergencies (both ones quickly resolved and ones that endure over long periods of time) can adversely affect consumer spending and confidence levels, the ability to obtain financing and supply availability and costs, as well as local operations in impacted markets, all of which can affect our financial results, condition and prospects.
Business and Operational Risks The impact of local or national emergencies can adversely affect our financial results, condition and prospects, including such impacts from state and federal regulatory action that restrict our ability to operate our business in the ordinary course and impacts on (i) customer demand and the availability of financing for our products, (ii) our supply chain and the availability of raw materials for the manufacture of our products, (iii) the availability of labor and the health and safety of our workforce and (iv) our liquidity and access to the capital markets Severe weather conditions, natural disasters, hostilities and social unrest, terrorist activities, health epidemics or pandemics, liquidity concerns resulting from the instability or insolvency of financial institutions, or other local or national emergencies (both ones quickly resolved and ones that endure over long periods of time) can adversely affect consumer spending and confidence levels, the ability to obtain financing and the availability and cost of supplies and raw materials used to manufacture our products, as well as local operations in impacted markets, all of which can affect our financial results, condition and prospects.
The maximum amount of contingent obligations under such repurchase agreements was approximately $120.5 million as of March 30, 2024, before reduction for the resale value of the homes. We may be required to honor contingent repurchase obligations in the future and may incur additional expense as a consequence of these repurchase agreements.
The maximum amount of contingent obligations under such repurchase agreements was approximately $133.1 million as of March 29, 2025, before reduction for the resale value of the homes. We may be required to honor contingent repurchase obligations in the future and may incur additional expense as a consequence of these repurchase agreements.
Deterioration in economic conditions and turmoil in financial markets could reduce the Company's earnings and financial condition Deterioration in global, national, regional or local economic conditions and turmoil in financial markets could have a negative impact on our business.
Deterioration in economic conditions, turmoil in financial markets, or declining housing demand could reduce the Company's earnings and financial condition Deterioration in global, national, regional or local economic conditions, turmoil in financial markets, and market forces outside our control could have a negative impact on our business.
Shutdown or delays at the United States/Mexico border could impact production at those facilities and our ability to receive the finished goods from those facilities, each of which could adversely affect our results of operations.
Shutdown or delays at the United States/Mexico border, tariffs on goods coming from Mexico, and/or trade wars with the Mexican government could impact production at those facilities and our ability to receive the finished goods from those facilities, each of which could adversely affect our results of operations.
As is common in the industry, independent distributors may also sell homes produced by competing manufacturers. We may not be able to establish relationships with new independent distributors or maintain good relationships with independent distributors that sell our homes. Even if we do establish and maintain relationships with independent distributors, these distributors are not obligated to sell our homes exclusively.
As is common in the industry, independent distributors may also sell homes produced by competing manufacturers. We may not be able to establish relationships with new independent distributors or maintain good relationships with our existing independent distributors that sell our homes.
Unfavorable changes in any of the above factors or other issues could have an adverse effect on our revenues, earnings or financial position. 23 Table of Contents The cyclical and seasonal nature of the manufactured housing industry causes the Company's revenues and operating results to fluctuate, and we expect this cyclicality and seasonality to continue in the future The manufactured housing industry is highly cyclical and seasonal and is influenced by many national and regional economic and demographic factors, including the availability of consumer financing for home buyers, the availability of wholesale financing for distributors, seasonality of demand, consumer confidence, interest rates, demographic and employment trends, income levels, housing demand, general economic conditions, including inflation and recessions, and the availability of suitable home sites.
Among other things, unfavorable changes in employment levels, job growth, consumer confidence and income, inflation, deflation, trade tariffs, foreign currency exchange rates, interest rates and adverse developments with respect to specific financial institutions or the broader financial services industry may further reduce demand for our products or have an adverse effect on the availability of financing to our customers, which could negatively affect our business, results of operations and financial condition. 23 Table of Contents The cyclical and seasonal nature of the manufactured housing industry causes the Company's revenues and operating results to fluctuate, and we expect this cyclicality and seasonality to continue in the future The manufactured housing industry is highly cyclical and seasonal and is influenced by many national and regional economic and demographic factors, including the availability of consumer financing for home buyers, the availability of wholesale financing for distributors, seasonality of demand, consumer confidence, interest rates, demographic and employment trends, income levels, housing demand, general economic conditions, including inflation and recessions, and the availability of suitable home sites.
We sell loans through GSE-related programs and to whole-loan purchasers and also finance certain loans with long-term credit facilities secured by the respective loans. In connection with these activities, we provide to GSEs, whole-loan purchasers and lenders, as the case may be, representations and warranties related to the loans sold or financed.
In connection with these activities, we provide to GSEs, whole-loan purchasers and lenders, as the case may be, representations and warranties related to the loans sold or financed.
An increase in interest rates could reduce potential buyers' ability or desire to obtain financing with which to buy homes and adversely affect the Company's business or financial results. The Federal Reserve Board has raised its benchmark rate multiple times in recent years, with further increases possible.
An increase in interest rates could reduce potential buyers' ability or desire to obtain financing with which to buy homes and adversely affect the Company's business or financial results. From March 2022 through December 2023, the Federal Reserve increased its benchmark interest rate 11 times, resulting in significantly higher mortgage interest rates.
In this environment, it is difficult to predict the types of loan products and characteristics that may be susceptible to future market curtailments and tailor loan offerings accordingly. As a result, no assurances can be given that the market value of our loans will not decline in the future, or that a market will continue to exist for loan products.
In this environment, it is difficult to predict the types of loan products and characteristics that may be susceptible to future market curtailments and tailor loan offerings accordingly.
Internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting for external purposes in accordance with accounting principles generally accepted in the United States.
Internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting for external purposes in accordance with accounting principles generally accepted in the United States. 25 Table of Contents Because of its inherent limitations, internal control over financial reporting is not intended to provide absolute assurance that we would prevent or detect a misstatement of our financial statements or fraud.
If we do not establish and maintain relationships with solvent independent distributors in one or more of our markets, revenue in those markets could decline. The Company's business and operations are concentrated in certain geographic regions, which could be impacted by market declines Our operations are concentrated in certain states, most notably Texas, California, Florida, Arizona, and Oregon.
The Company's business and operations are concentrated in certain geographic regions, which could be impacted by market declines Our operations are concentrated in certain states, most notably Texas, California, Florida, Arizona, and Oregon.
If customers do not repay their loans, we may repossess or foreclose on the secured property in order to liquidate the loan collateral and minimize losses. The homes and land securing the loans are subject to fluctuating market values and proceeds realized from liquidating repossessed or foreclosed property are highly susceptible to adverse movements in collateral values.
If customers do not repay their loans, we may repossess or foreclose on the secured property in order to liquidate the loan collateral and minimize losses.
The independent distributors with whom we have relationships can cancel these relationships on short notice. In addition, these distributors may not remain financially solvent, as they are subject to industry, economic, demographic and seasonal trends similar to those faced by us.
In addition, these distributors may not remain financially solvent, as they are subject to industry, economic, demographic and seasonal trends similar to those faced by us. If we do not establish and maintain relationships with solvent independent distributors in one or more of our markets, revenue in those markets could decline.
Home price depreciation and elevated levels of unemployment may result in additional defaults and increase the severity of loss upon collateral liquidation. Some of the loans we originate, or may originate in the future, may not have a liquid market or the market may contract rapidly causing the loans to become illiquid.
Some of the loans we originate, or may originate in the future, may not have a liquid market or the market may contract rapidly causing the loans to become illiquid.
If favorable local zoning ordinances are not adopted or become further restricted, our revenue could decline and the business, results of operations and financial condition could be adversely affected.
If favorable local zoning ordinances are not adopted or become further restricted, our revenue could decline and the business, results of operations and financial condition could be adversely affected. 24 Table of Contents The Company is subject to extensive regulation affecting the production and sale of manufactured housing, which could adversely affect its profitability A variety of federal, state and local laws and regulations affect the production and sale of manufactured housing.
Removed
The Company's operating results could be affected by market forces and declining housing demand As a participant in the homebuilding industry, we are subject to market forces beyond our control.
Added
The homes and land (except for home-only loans) securing the loans are subject to fluctuating market values and the proceeds realized from liquidating repossessed or foreclosed property are highly susceptible to adverse movements in collateral values. Home price depreciation and elevated levels of unemployment may result in additional defaults and increase the severity of loss upon collateral liquidation.
Removed
These market forces include employment levels, employment growth, interest rates, consumer confidence, home input supply availability, land availability and development costs, suppliers impacted by global conflicts, apartment and rental housing vacancy levels, inflation, deflation, bank-specific and broader financial institution liquidity risk and the health of the general economy.
Added
As a result, no assurances can be given that the market value of our loans will not decline in the future, or that a market will continue to exist for our loan products. We sell loans through GSE-related programs and to whole-loan purchasers and also finance certain loans with long-term credit facilities secured by the respective loans.
Removed
Among other things, unfavorable changes in employment levels, job growth, consumer confidence and income, inflation, deflation, trade tariffs, foreign currency exchange rates, interest rates and adverse developments with respect to specific financial institutions or the broader financial services industry may further reduce demand for our products or have an adverse effect on the availability of financing to our customers, which could negatively affect our business, results of operations and financial condition.
Added
Even if we do establish and maintain relationships with independent distributors, these distributors are not obligated to sell our homes exclusively. The independent distributors with whom we have relationships can cancel these relationships on short notice.
Removed
The Company is subject to extensive regulation affecting the production and sale of manufactured housing, which could adversely affect its profitability A variety of federal, state and local laws and regulations affect the production and sale of manufactured housing.
Added
Although the Federal Reserve subsequently lowered its benchmark interest rate three times since September 2024, mortgage interest rates remain elevated from their previously historically low levels prior to 2022 following COVID-19.
Removed
The Company may face risks related to the SEC Litigation, including potential shareholder litigation or potential reputational damage that the Company may suffer as a result of the litigation As disclosed in Part I, Item 3, "Legal Proceedings", on September 2, 2021, the SEC filed a civil complaint in the United States District Court, District of Arizona, naming the Company along with the Company's former Chairman, President & Chief Executive Officer ("former CEO") and the Company's former Chief Financial Officer ("former CFO"), alleging violations of the antifraud and internal accounting control provisions of the Exchange Act based on trading in the shares of another company directed by the former CEO that resulted in an unrealized gain of approximately $265,000.
Added
In addition, the housing industry is subject to seasonal fluctuations based on new home buyer purchasing patterns. Demand for our core new home products typically peaks each spring and summer before declining in the winder, consistent with the overall housing industry.
Removed
In fiscal 2022, the Company recorded an accrual relating to this loss contingency. On September 23, 2022, the United States District Court for the District of Arizona approved the settlement of the SEC action against the Company (the "SEC Settlement").
Added
Legal and Regulatory Risks Changes in trade policies may result in increased costs and could adversely affect our operating results The impact of geopolitical tensions, including the potential implementation of more restrictive trade policies, higher tariffs or the renegotiation of existing trade agreements in the U.S. could have a material adverse effect on our business.
Removed
Without admitting or denying the findings of the consent judgment, the Company agreed to the imposition of an injunction against future violations of the antifraud and internal accounting control provisions of the Exchange Act and a monetary penalty of $1.5 million, which did not have a material impact on the Company's financial statements.
Added
In particular, political or trade disputes, or future phases of trade negotiations with China, Canada, Mexico, or other countries from which we import parts for our products that could lead to the imposition of tariffs or other trade actions could require us to take action to mitigate those effects.
Removed
The settlement resolves all claims in such action against the Company. In May 2024, the SEC settled all pending litigation with our former CFO and as a result all SEC claims against the Company and our former officers are now closed (collectively, the "SEC Litigation").
Added
We may be unable to pass through additional tariff costs to our customers through price increases, and may be unable to secure adequate alternative sources of materials and supplies. Our inability to offset higher tariff costs could have a material adverse effect on our operating results, profitability, customer relationships and future cash flow.
Removed
We are unable to predict what consequences any investigation by any regulatory agency may have on us, including significant legal and accounting expenses. These matters may also divert management's attention from other business concerns, which could harm the business and could result in reputational damage.
Added
Such D&O insurance contains certain customary exclusions that may make it unavailable to the Company or its directors and officers in the event it is needed; and, in any case, the D&O insurance may not be adequate to fully protect the Company against liability for the conduct of its directors, officers or employees or the Company's indemnification obligations to its directors and officers.
Removed
Any proceedings commenced against us by a regulatory agency could result in administrative orders against us, the imposition of penalties and/or fines against us and/or the imposition of sanctions against certain of our current or former officers, directors and/or employees. The investigations, litigation or remedial actions we have taken or are currently undertaking may adversely affect our business.
Removed
Because of its inherent limitations, internal control over financial reporting is not intended to provide absolute assurance that we would prevent or detect a misstatement of our financial statements or fraud.

Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

12 edited+2 added−0 removed23 unchanged
Biggest changeShare repurchase activity during the three months ended March 30, 2024 was as follows: Period Total Number of Shares Purchased Average Price Paid Per Share Total Number of Shares Purchased as Part of the Publicly Announced Programs Approximate Dollar Value of Shares That May Yet Be Purchased Under the Programs ($000s) December 31, 2023 to February 3, 2024 — $ — — $ 138,964 February 4, 2024 to March 2, 2024 17,500 367.14 17,500 132,540 March 3, 2024 to March 30, 2024 16,400 372.15 16,400 126,437 33,900 33,900 31 Table of Contents Performance Graph The following graph compares the yearly percentage change in the cumulative total stockholder return on Cavco common stock during the five fiscal years ended March 30, 2024, with that of the Nasdaq Composite Index and the iShares U.S.
Biggest changeShare repurchase activity during the three months ended March 29, 2025 was as follows: Period Total Number of Shares Purchased Average Price Paid Per Share Total Number of Shares Purchased as Part of the Publicly Announced Programs 1 Approximate Dollar Value of Shares That May Yet Be Purchased Under the Programs ($000s) December 29, 2024 to February 1, 2025 66,500 $ 456.31 66,500 $ 80,653 February 2, 2025 to March 1, 2025 — — — 80,653 March 2, 2025 to March 29, 2025 5,800 498.44 5,800 77,762 72,300 72,300 1 The stock repurchase plan announced on February 1, 2024 approved $100 million stock.
PROPERTIES The following table sets forth certain information with respect to the Company's core properties: Location Date of Commencement of Operations Owned / Leased Square Feet Active manufacturing facilities for factory-built housing segment: Millersburg, Oregon 1995 Owned 169,000 Woodburn, Oregon 1976 Owned 221,000 Riverside, California 1960 Owned 107,000 Nampa, Idaho 1957 Owned 171,000 Glendale, Arizona 2022 Owned 118,000 Goodyear, Arizona 1993 Leased 250,000 Phoenix, Arizona 1978 Owned 79,000 Deming, New Mexico 2001 Owned 170,000 Duncan, Oklahoma 2022 Owned 170,000 Austin, Texas 1981 Owned 181,000 Fort Worth, Texas 1993 Owned 121,000 Seguin, Texas 2006 Owned 129,000 Waco, Texas 1971 Owned 132,000 Ojinaga, Mexico (1) 2011 Owned 145,000 Ojinaga, Mexico (2) 2018 Owned 127,000 Montevideo, Minnesota 1982 Owned 305,000 Dorchester, Wisconsin 1975 Leased 160,000 Nappanee, Indiana 1971 Owned 341,000 Goshen, Indiana 1972 Owned 163,000 Lafayette, Tennessee 1996 Owned 149,000 Moultrie, Georgia 2003 Owned 230,000 Douglas, Georgia 1988 Owned 142,000 Shippenville, Pennsylvania (1) 1972 Owned 162,000 Shippenville, Pennsylvania (2) 1988 Owned 164,000 Emlenton, Pennsylvania 2004 Owned 126,000 Martinsville, Virginia 1969 Owned 132,000 Rocky Mount, Virginia 1995 Owned 137,000 Crouse, North Carolina 1973 Owned 254,000 Hamlet, North Carolina 2022 Owned 184,000 Ocala, Florida 1984 Owned 91,000 Plant City, Florida 1981 Owned 87,000 Component and supply facilities for factory-built housing segment: Presidio, Texas 2011 Owned 69,000 Martinsville, Virginia 1972 Owned 192,000 Nappanee, Indiana 1971 Leased 77,000 29 Table of Contents Inactive manufacturing facilities for factory-built housing segment: Plant City, Florida Owned 94,000 Administrative and other locations: Phoenix, Arizona (factory-built housing) Leased 23,000 Duncan, Oklahoma (factory-built housing) Owned 10,700 Plano, Texas (financial services) Leased 12,800 New Braunfels, Texas (financial services) Owned 9,000 Elkhart, Indiana (factory-built housing) Leased 23,000 We own the land on which manufacturing facilities are located, except for the Goodyear, Arizona plant, which is currently leased through June 2026, with no current options to extend; and the Dorchester, Wisconsin plant, currently under lease through August 2037, with options to extend.
PROPERTIES The following table sets forth certain information with respect to the Company's core properties: Location Date of Commencement of Operations Owned / Leased Square Feet Active manufacturing facilities for factory-built housing segment: Millersburg, Oregon 1995 Owned 169,000 Woodburn, Oregon 1976 Owned 221,000 Riverside, California 1960 Owned 107,000 Nampa, Idaho 1957 Owned 171,000 Glendale, Arizona 2022 Owned 118,000 Goodyear, Arizona 1993 Leased 250,000 Phoenix, Arizona 1978 Owned 79,000 Deming, New Mexico 2001 Owned 170,000 Duncan, Oklahoma 2022 Owned 170,000 Austin, Texas 1981 Owned 181,000 Fort Worth, Texas 1993 Owned 121,000 Seguin, Texas 2006 Owned 129,000 Waco, Texas 1971 Owned 132,000 Ojinaga, Mexico (1) 2011 Owned 145,000 Ojinaga, Mexico (2) 2018 Owned 127,000 Montevideo, Minnesota 1982 Owned 305,000 Dorchester, Wisconsin 1975 Leased 160,000 Nappanee, Indiana 1971 Owned 341,000 Goshen, Indiana 1972 Owned 163,000 Lafayette, Tennessee 1996 Owned 149,000 Moultrie, Georgia 2003 Owned 230,000 Douglas, Georgia 1988 Owned 142,000 Shippenville, Pennsylvania (1) 1972 Owned 162,000 Shippenville, Pennsylvania (2) 1988 Owned 164,000 Emlenton, Pennsylvania 2004 Owned 126,000 Martinsville, Virginia 1969 Owned 132,000 Rocky Mount, Virginia 1995 Owned 137,000 Crouse, North Carolina 1973 Owned 254,000 Hamlet, North Carolina 2022 Owned 184,000 Ocala, Florida 1984 Owned 91,000 Plant City, Florida 1981 Owned 87,000 Component and supply facilities for factory-built housing segment: Presidio, Texas 2011 Owned 69,000 Martinsville, Virginia 1972 Owned 192,000 Nappanee, Indiana 1971 Leased 77,000 29 Table of Contents Inactive manufacturing facilities for factory-built housing segment: Plant City, Florida Owned 94,000 Administrative and other locations: Phoenix, Arizona (factory-built housing) Leased 23,000 Elkhart, Indiana (factory-built housing) Leased 23,000 Duncan, Oklahoma (factory-built housing) Owned 10,700 Corona, California (factory-built housing) Leased 7,000 Plano, Texas (financial services) Leased 12,800 New Braunfels, Texas (financial services) Owned 9,000 We own the land on which manufacturing facilities are located, except for the Goodyear, Arizona plant, which is currently leased through June 2026, with no current options to extend; and the Dorchester, Wisconsin plant, currently under lease through August 2037, with options to extend.
Our Board has delegated oversight of risks related to cybersecurity to the Legal and Compliance Oversight ("LCO") Committee and the review of materiality determinations of cyber incidents to the Audit Committee. 27 Table of Contents The LCO Committee is charged with, among other responsibilities, reviewing our cybersecurity processes for assessing key strategic, operational, and compliance risks.
Our Board has delegated oversight of risks related to cybersecurity to the Legal and Compliance Oversight ("LCO") Committee and the review of materiality determinations of cybersecurity incidents to the Audit Committee. 27 Table of Contents The LCO Committee is charged with, among other responsibilities, reviewing our cybersecurity processes for assessing key strategic, operational, and compliance risks.
We test and evaluate this plan on a routine basis. We train our team members on cybersecurity risks and mitigation and retain experienced cybersecurity consultants prepared to assist us in the event of any breach. For material cybersecurity risks, we’ve developed mitigation measures to reduce the risk’s likelihood of occurrence and/or its expected impact.
We test and evaluate this plan on a routine basis. We train our team members on cybersecurity risks and mitigation and retain experienced third-party cybersecurity consultants prepared to assist us in the event of any breach. For material cybersecurity risks, we've developed mitigation measures to reduce each risk's likelihood of occurrence and/or its expected impact.
The Chair of the Audit Committee is regularly informed of both material and non-material cybersecurity risks and incidents. The full Audit Committee is notified any time our incident response program has determined that a cybersecurity incident is material or requires reporting to a regulatory body.
The Chair of the Audit Committee is regularly informed by our CFO of both material and non-material cybersecurity risks and incidents. The full Audit Committee must be notified any time our incident response program has determined that a cybersecurity incident is material or requires reporting to a regulatory body.
Such factors include Company cash requirements, covenants of our credit agreement dated November 22, 2022, by and among the Company, Bank of America, N.A., as administrative agent, swing line lender and letter of credit issuer, and the guarantors party thereto (the "Credit Agreement"), and liquidity or other requirements of state, corporate and other laws.
Such factors include Company cash requirements, covenants of our amended and restated credit agreement dated November 12, 2024, by and among the Company, Bank of America, N.A., as administrative agent, swing line lender and letter of credit issuer, and the guarantors party thereto (the "Credit Agreement"), and liquidity or other requirements of state, corporate and other laws.
As of May 17, 2024, the Company had 486 stockholders of record and approximately 32,600 beneficial holders of its common stock, based upon information in securities position listings by registered clearing agencies upon request of the Company's transfer agent. In the past two fiscal years, we have not paid any dividends on the Company's common stock.
As of May 14, 2025, the Company had 420 stockholders of record and approximately 44,470 beneficial holders of its common stock, based upon information in securities position listings by registered clearing agencies upon request of the Company's transfer agent. In the past two fiscal years, we have not paid any dividends on the Company's common stock.
Home Construction ETF. The comparison assumes $100 (with reinvestment of all dividends) was invested on March 30, 2019, in Cavco common stock and in each of the foregoing indices.
The comparison assumes $100 (with reinvestment of all dividends) was invested on March 28, 2020, in Cavco common stock and in each of the foregoing indices.
Risk Factors – Risk Related to our Business – Information technology failures and data security breaches could harm our business” in this Annual Report on Form 10-K.
Risk Factors – Risk Related to our Business – Information technology failures or cyber incidents could harm the Company's business” in this Annual Report.
Issuer Purchases of Equity Securities On May 25, 2022, the Board approved a $100 million stock repurchase program that may be used to purchase its outstanding common stock. On January 30, 2024, the Board approved another $100 million stock repurchase program under the same terms as the previous plans. The repurchase programs are funded using our available cash.
Issuer Purchases of Equity Securities As announced on February 1, 2024, October 31, 2024, and May 22, 2025 the Board approved $100 million, $100 million, $150 million for the stock repurchase program, respectively, under the same terms as previous plans. The repurchase programs are funded using our available cash.
Home Construction ETF $ 100 $ 87 $ 199 $ 173 $ 205 $ 337 ITEM 6. [RESERVED] 32 Table of Contents
Home Construction ETF $ 100 $ 228 $ 198 $ 235 $ 386 $ 315 ITEM 6. [RESERVED] 32 Table of Contents
CAVCO INDUSTRIES, INC. 3/30/2019 3/28/2020 4/3/2021 4/2/2022 4/1/2023 3/30/2024 Cavco Industries, Inc. $ 100 $ 126 $ 198 $ 207 $ 270 $ 340 Nasdaq Composite Index $ 100 $ 97 $ 174 $ 185 $ 158 $ 212 iShares U.S.
CAVCO INDUSTRIES, INC. 3/28/2020 4/3/2021 4/2/2022 4/1/2023 3/30/2024 3/29/2025 Cavco Industries, Inc. $ 100 $ 157 $ 164 $ 214 $ 269 $ 350 Nasdaq Composite Index $ 100 $ 180 $ 190 $ 163 $ 218 $ 231 iShares U.S.
Added
There are no funds remaining as of March 29, 2025 from this approval. The stock repurchase plan announced on October 31, 2024 approved $100 million stock. The stock repurchase plan announced on May 22, 2025 approved $150 million stock.
Added
None of the plans have expiration dates. 31 Table of Contents Performance Graph The following graph compares the yearly percentage change in the cumulative total stockholder return on Cavco common stock during the five fiscal years ended March 29, 2025, with that of the Nasdaq Composite Index and the iShares U.S. Home Construction ETF.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

26 edited+2 added−6 removed47 unchanged
Biggest changeSelling, general and administrative expenses consisted of the following for fiscal years 2024 and 2023, respectively: Year Ended ($ in thousands) March 30, 2024 April 1, 2023 Change Selling, general and administrative expenses: Factory-built housing $ 226,267 $ 237,898 $ (11,631) (4.9) % Financial services 21,653 20,425 1,228 6.0 % $ 247,920 $ 258,323 $ (10,403) (4.0) % Selling, general and administrative expenses as % of Net revenue: 13.8 % 12.1 % N/A 1.7 % Selling, general and administrative expenses related to factory-built housing decreased primarily due to $19.5 million in lower wages, benefits and incentive compensation expense on declined earnings; $7.3 million from lower expenses incurred in engaging third-party consultants in relation to the non-recurring energy efficient home tax credits; and $2.1 million from lower legal expenses related to the SEC investigation, partially offset by the full year of Solitaire operations, which was acquired in the prior year's fourth quarter, which increased Selling, general and administrative expenses by $19.1 million. 36 Table of Contents Interest Income.
Biggest changeSelling, general and administrative expenses consisted of the following for fiscal years 2025 and 2024 , respectively: Year Ended ($ in thousands) March 29, 2025 March 30, 2024 Change Selling, general and administrative expenses: Factory-built housing $ 253,027 $ 226,267 $ 26,760 11.8 % Financial services 22,288 21,653 635 2.9 % $ 275,315 $ 247,920 $ 27,395 11.0 % Selling, general and administrative expenses as % of Net revenue: 13.7 % 13.8 % N/A (0.1) % Selling, general and administrative expenses related to factory-built housing increased as a result of a $10.0 million one-time, non-cash charge related to the adjustment of legacy indefinite lived trade names due to the unification of the Company's brand, $6.4 million higher incentive compensation on higher sales, and approximately $3.8 million of incremental costs due to the Kentucky Dream Home acquisition that took place in the prior year. 36 Table of Contents Interest Income.
While the number of homes still under warranty and the timing in which work orders are completed are readily determinable, the average costs incurred will vary based on market prices, which are the primary subjective inputs in estimating the reserve.
While the number of homes still under warranty are readily determinable, the average costs incurred, which will vary based on market prices, and the timing in which work orders are completed are the primary subjective inputs in estimating the reserve.
Under these agreements, we may be required to repurchase and reestablish the reinsurance contracts for the remainder of the year to the extent that they have been utilized. See Note 15 to the Consolidated Financial Statements for additional information. 34 Table of Contents Results of Operations Fiscal Year 2024 Compared to Fiscal Year 2023 Net Revenue.
Under these agreements, we may be required to repurchase and reestablish the reinsurance contracts for the remainder of the year to the extent that they have been utilized. See Note 15 to the Consolidated Financial Statements for additional information. 34 Table of Contents Results of Operations Fiscal Year 2025 Compared to Fiscal Year 2024 Net Revenue.
See Part II, Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations— Liquidity and Capital Resources" in the Company's 2023 Annual Report on Form 10-K for a discussion of changes in liquidity between fiscal years 2023 and 2022.
See Part II, Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations— Liquidity and Capital Resources" in the Company's 2024 Annual Report on Form 10-K for a discussion of changes in liquidity between fiscal years 2024 and 2023.
Fiscal Year 2023 Compared to Fiscal Year 2022 See Part II, Item 7, "Management's Discussion and Analy sis of Financial Condition and Results of Operations - Results of Operations" in the Company's 2023 Annual Report on Form 10-K. 37 Table of Contents Liquidity and Capital Resources We believe that cash and cash equivalents at March 30, 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.
Fiscal Year 2024 Compared to Fiscal Year 2023 See Part II, Item 7, "Management's Discussion and Analy sis of Financial Condition and Results of Operations - Results of Operations" in the Company's 2024 Annual Report on Form 10-K. 37 Table of Contents Liquidity and Capital Resources We believe that cash and cash equivalents at March 29, 2025, 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.
Other income, net primaril y consists of realized and unrealized gains and losses on corporate investments, gains and losses from the sale of property, plant and equip ment and partnership income from our unconsolidated joint ventures. For fisca l years 2024 and 2023, Other income, net was $0.8 million and $0.4 million , respectively.
Other income, net primaril y consists of realized and unrealized gains and losses on corporate investments, gains and losses from the sale of property, plant and equip ment and partnership income from our unconsolidated joint ventures. For fisca l years 2025 and 2024, Other income, net was $0.2 million and $0.8 million , respectively.
In addition, we also have contingent commitments at March 30, 2024 consisting of contingent repurchase obligations, construction contingent commitments, interest rate lock commitments ("IRLCs") and forward loan sale commitments. For additional information related to these contingent obligations, see Note 17 to the Consolidated Financial Statements.
In addition, we also have contingent commitments at March 29, 2025 consisting of contingent repurchase obligations, construction contingent commitments, interest rate lock commitments ("IRLCs") and forward loan sale commitments. For additional information related to these contingent obligations, see Note 17 to the Consolidated Financial Statements.
Net cash used in financing activities for the year ended March 30, 2024 and April 1, 2023 was primarily related to common stock repurchases, partially offset by net proceeds received from the exercise of stock options. Obligations and Commitments We enter into commercial loan agreements with distributors, communities and developers under which the Company provides funds for financing homes.
Net cash used in financing activities for the years ended March 29, 2025 and March 30, 2024 was primarily related to common stock repurchases, partially offset by net proceeds received from the exercise of stock options. Obligations and Commitments We enter into commercial loan agreements with distributors, communities and developers under which the Company provides funds for financing homes.
Such transactions may require the use of cash and have other impacts on our liquidity and capital resources. We have sufficient liquid resources including our $50.0 million revolving credit facility (the "Revolving Credit Facility"), of which no amounts were outstanding at March 30, 2024.
Such transactions may require the use of cash and have other impacts on our liquidity and capital resources. We have sufficient liquid resources including our $75.0 million revolving credit facility, of which no amounts were outstanding at March 29, 2025.
Company Outlook It is difficult to predict the future of housing demand, employee availability, our supply chain or the Company's performance and operations. Our home order backlog at March 30, 2024 was approximately $191 million in wholesale sales values, down $53 million from $244 million one year earlier. Distributors may cancel orders prior to production without penalty.
Company Outlook It is difficult to predict the future of housing demand, employee availability, our supply chain or the Company's performance and operations. Our home order backlog at March 29, 2025 was approximately $197 million in wholesale sales values, up $6 million from $191 million one year earlier. Distributors may cancel orders prior to production without penalty.
Changes to the proportion of home sales among our distribution channels between reporting periods impacts the overall net revenue per home sold. For fiscal 2024, we sold 13,047 homes Wholesale and 3,881 Retail versus 16,066 homes Wholesale and 3,310 homes Retail in the prior year.
Changes to the proportion of home sales among our distribution channels between reporting periods impacts the overall net revenue per home sold. For fiscal 2025, we sold 15,621 homes Wholesale and 4,132 Retail versus 13,047 homes Wholesale and 3,881 homes Retail in the prior year.
Proceeds from the collection on commercial loans provided $117.3 million in cash, compared to $98.2 million in the previous year, a net increase of $19.1 million. 38 Table of Contents Net cash used in investing activities for the year ended March 30, 2024 was primarily used for purchases of property, plant and equipment and acquisition of Kentucky Dream Homes during the year.
Proceeds from the collection on commercial loans provided $135.1 million in cash, compared to $117.3 million in the previous year, a net increase of $17.8 million. 38 Table of Contents Net cash used in investing activities for the year ended March 29, 2025 was primarily used for purchases of property, plant and equipment.
Income tax expense was $41.3 million, resulting in an effective tax rate of 20.7%, for the fiscal year ended March 30, 2024, compared to income tax expense of $65.9 million and an effective rate of 21.5% for the fiscal year ended April 1, 2023.
Income tax expense was $40.0 million, resulting in an effective tax rate of 19.0% for the fiscal year ended March 29, 2025, compared to income tax expense of $41.3 million and an effective rate of 20.7% for the fiscal year ended March 30, 2024.
The lower effective tax rate in fiscal year 2024 is primarily related to $4.2 million in tax credits related to the sale of energy efficient homes and Energy Star credits available under the Internal Revenue Code §45L and $2.4 million related to the research and development, solar, and work opportunity tax credits.
The lower effective tax rate in fiscal year 2025 is related to an increase of $5.4 million in tax credits primarily related to the sale of energy efficient homes and Energy Star credits available under the Internal Revenue Code §45L compared to the prior year.
Consumer loan originations decreased $87.2 million to $90.8 million during the year ended March 30, 2024, from $178.0 million during the year ended April 1, 2023. Proceeds from the sale of consumer loans provided $91.5 million in cash, compared to $186.0 million in the previous year, a net decrease of $94.5 million.
Consumer loan originations decreased $24.7 million to $66.1 million during the year ended March 29, 2025, from $90.8 million during the year ended March 30, 2024. Proceeds from the sale of consumer loans provided $51.1 million in cash, compared to $91.5 million in the previous year, a net decrease of $40.4 million.
In the financial services segment, Gross profit decreased primarily due to higher weather-related claims and market fluctuations of the marketable equity securities in the insurance subsidiary's portfolio. Selling, General and Administrative Expenses.
In the financial services segment, Gross profit decreased primarily due to higher weather related insurance claims and reduced revenue from loan sales. Selling, General and Administrative Expenses.
Gross profit consisted of the following for fiscal years 2024 and 2023, respectively: Year Ended ($ in thousands) March 30, 2024 April 1, 2023 Change Gross profit: Factory-built housing $ 398,919 $ 523,529 $ (124,610) (23.8) % Financial services 27,983 31,403 (3,420) (10.9) % $ 426,902 $ 554,932 $ (128,030) (23.1) % Gross profit as % of Net revenue: Consolidated 23.8 % 25.9 % N/A (2.1) % Factory-built housing 23.2 % 25.3 % N/A (2.1) % Financial services 35.8 % 42.9 % N/A (7.1) % In the factory-built housing segment, Gross profit decreased from the lower home sales prices and fewer units sold, partially offset by lower input costs.
Gross profit consisted of the following for fiscal years 2025 and 2024 , respectively: Year Ended ($ in thousands) March 29, 2025 March 30, 2024 Change Gross profit: Factory-built housing $ 441,796 $ 398,919 $ 42,877 10.7 % Financial services 23,795 27,983 (4,188) (15.0) % $ 465,591 $ 426,902 $ 38,689 9.1 % Gross profit as % of Net revenue: Consolidated 23.1 % 23.8 % N/A (0.7) % Factory-built housing 22.9 % 23.2 % N/A (0.3) % Financial services 28.9 % 35.8 % N/A (6.9) % In the factory-built housing segment, Gross profit increased from higher home sales, partially offset by lower average selling prices.
Commercial loan originations decreased $20.8 million to $111.2 million during the year ended March 30, 2024, from $132.1 million during the year ended April 1, 2023.
Commercial loan originations increased $32.1 million to $143.4 million during the year ended March 29, 2025, from $111.2 million during the year ended March 30, 2024.
Net revenue consisted of the following for fiscal years 2024 and 2023, respectively: Year Ended ($ in thousands, except revenue per home sold) March 30, 2024 April 1, 2023 Change Net revenue: Factory-built housing $ 1,716,607 $ 2,069,450 $ (352,843) (17.1) % Financial services 78,185 73,263 4,922 6.7 % $ 1,794,792 $ 2,142,713 $ (347,921) (16.2) % Total homes sold 16,928 19,376 (2,448) (12.6) % Net factory-built housing revenue per home sold $ 101,406 $ 106,805 $ (5,399) (5.1) % In the factory-built housing segment, the decrease in Net revenue was primarily due to lower sales volume and selling prices, $372.1 million and $80.5 million, respectively, partially offset by the addition of Solitaire Homes which contributed $128.1 million in fiscal year 2024 compared to $28.3 million for one quarter of post acquisition activity in the prior fiscal year.
Net revenue consisted of the following for fiscal years 2025 and 2024, respectively: Year Ended ($ in thousands, except revenue per home sold) March 29, 2025 March 30, 2024 Change Net revenue: Factory-built housing $ 1,933,111 $ 1,716,607 $ 216,504 12.6 % Financial services 82,347 78,185 4,162 5.3 % $ 2,015,458 $ 1,794,792 $ 220,666 12.3 % Total homes sold 19,753 16,928 2,825 16.7 % Net factory-built housing revenue per home sold $ 97,864 $ 101,406 $ (3,542) (3.5) % In the factory-built housing segment, the increase in Net revenue was primarily due to higher home sales volume of $286.5 million, partially offset by lower average selling prices of $70.0 million.
Financia l services segment Net revenue increased 6.7% primarily due to $4.9 million from more insurance policies in force in the current year. 35 Table of Contents Gross Profit.
Financia l services segment Net revenue increased 5.3% primarily due to $8.1 million from higher insurance premiums in the current year, partially offset by fewer loans sold by the finance subsidiary. 35 Table of Contents Gross Profit.
Prior year saw non-recurring retirement of property, plant and equipment with a $1.2 million loss. This was offset by $0.3 million of gains on corporate equity securities in fiscal 2024 compared to $0.8 million of gains in the prior fiscal year. Income Before Income Taxes.
The largest driver of the change was $0.1 million of gains on corporate equity securities in fiscal year 2025 compared to $0.3 million of gains on corporate equity securities in the prior fiscal year. Income Before Income Taxes.
Net cash used in investing activities for the year ended April 1, 2023 was primarily for the acquisition of Solitaire Homes and purchases of property, plant and equipment including opening manufacturing facilities in Glendale, Arizona and Hamlet, North Carolina.
Net cash used in investing activities for the year ended March 30, 2024 was primarily used for purchases of property, plant and equipment and the acquisition of Kentucky Dream Homes during fiscal year 2024.
Income before income taxes consisted of the following for fiscal years 2024 and 2023, respectively: Year Ended ($ in thousands) March 30, 2024 April 1, 2023 Change Income before income taxes: Factory-built housing $ 192,815 $ 296,415 $ (103,600) (35.0) % Financial services 6,365 10,348 (3,983) (38.5) % $ 199,180 $ 306,763 $ (107,583) (35.1) % Income Tax Expense.
Income before income taxes consisted of the following for fiscal years 2025 and 2024 , respectively: Year Ended ($ in thousands) March 29, 2025 March 30, 2024 Change Income before income taxes: Factory-built housing $ 209,564 $ 192,814 $ 16,750 8.7 % Financial services 1,506 6,366 (4,860) (76.3) % $ 211,070 $ 199,180 $ 11,890 6.0 % Income Tax Expense.
Additionally, the overall state income tax rate is based on income apportionment by state, which is estimated using prior year results, along with expected current year impacts. Other Matters Impact of Inflation. Our ability to maintain certain levels of gross margin can be adversely impacted by sudden increases in specific costs, such as the increases in material and labor.
We expect that a 5% increase in average costs would increase our reserve proportionally. 39 Table of Contents Other Matters Impact of Inflation. Our ability to maintain certain levels of gross margin can be adversely impacted by sudden increases in specific costs, such as the increases in material and labor.
Interest income was $21.0 million in fiscal year 2024 and $10.7 million in fiscal year 2023. The increase is due to higher interest rates throughout fiscal year 2024. Interest Expense.
Interest income was flat with $21.1 million in fiscal year 2025 and $21.0 million in fiscal year 2024 . Interest Expense. Interest expense was $0.5 million in fiscal year 2025 and $1.6 million in fiscal year 2024.
The following is a summary of the Company's cash flows for fiscal years 2024 and 2023, respectively: Year Ended ($ in thousands) March 30, 2024 April 1, 2023 $ Change Cash, cash equivalents and restricted cash at beginning of the fiscal year $ 283,490 $ 259,334 $ 24,156 Net cash provided by operating activities 224,682 255,693 (31,011) Net cash used in investing activities (31,709) (129,341) 97,632 Net cash used in financing activities (107,710) (102,196) (5,514) Cash, cash equivalents and restricted cash at end of the fiscal year $ 368,753 $ 283,490 $ 85,263 Net cash provided by operating activities decreased primarily from lower Net income adjusted for non-cash items during the period, partially offset by greater collections on commercial loans.
The following is a summary of the Company's cash flows for fiscal years 2025 and 2024, respectively: Year Ended ($ in thousands) March 29, 2025 March 30, 2024 $ Change Cash, cash equivalents and restricted cash at beginning of the fiscal year $ 368,753 $ 283,490 $ 85,263 Net cash provided by operating activities 178,496 224,682 (46,186) Net cash used in investing activities (23,955) (31,709) 7,754 Net cash used in financing activities (147,949) (107,710) (40,239) Cash, cash equivalents and restricted cash at end of the fiscal year $ 375,345 $ 368,753 $ 6,592 Net cash provided by operating activities decreased primarily from increased working capital to support higher sales in our factory-built housing segment including an increase in accounts receivable which had a use of cash of $28.7 million and an increase in inventories that used $11.4 million of cash.
Removed
Ginnie Mae permits cash obligations on loans in forbearance from COVID-19 to be offset by other incoming cash flows from loans such as loan pre-payments.
Added
The change is due to adjustments in the redemption value of the noncontrolling interest for Craftsman Homes occurring in fiscal year 2024, which did not occur in fiscal year 2025 as Craftsman was wholly owned by the Company for all of fiscal year 2025. Other Income, net .
Removed
Through fiscal year 2024, monthly collections of principal and interest from borrowers have exceeded scheduled principal and interest payments owed to investors; however, any future regulatory mandates requiring extended forbearance could negatively impact future cash obligations.
Added
The revolving credit facility is part of the Amended and Restated Credit Agreement among the Company, Bank of America, N.A., as administrative agent, swing line lender, letter of credit issuer, and the guarantors party thereto (the “Credit Agreement”).
Removed
Interest expense was $1.6 million in fiscal year 2024 and $0.9 million in fiscal year 2023 and consists primarily of interest related to finance leases and floor plan financing at our Craftsman retail location. Other Income, net .
Removed
We expect that a 5% increase in average costs would increase our reserve proportionally. 39 Table of Contents Income Taxes and Deferred Tax Assets and Liabilities.
Removed
The determination of the need for, or amount of, any valuation allowance involves significant judgment and is based upon the evaluation of both positive and negative evidence, including estimates of anticipated taxable profits in various jurisdictions with which the deferred tax assets are associated.
Removed
At March 30, 2024, based on historical profits earned and forecasted taxable profits, we determined that all deferred tax assets, except for certain state net operating loss deferred tax assets, would be utilized in future periods.

Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

3 edited+0 added−0 removed14 unchanged
Biggest changeAssuming the level of these instruments as of March 30, 2024 is held constant, a 1% (100 basis points) unfavorable change in average interest rates would adversely impact the fair value of these instruments, as follows: ($ in thousands) Reduction in Fair Value Consumer loans receivable $ 1,122 Commercial loans receivable 566 Other secured financing 71 40 Table of Contents In originating loans for sale, we issue IRLCs to prospective borrowers and third-party originators.
Biggest changeAssuming the level of these instruments as of March 29, 2025 is held constant, a 1% (100 basis points) unfavorable change in average interest rates would adversely impact the fair value of these instruments, as follows: ($ in thousands) Reduction in Fair Value Consumer loans receivable $ 1,202 Commercial loans receivable 651 Other secured financing 55 40 Table of Contents In originating loans for sale, we issue IRLCs to prospective borrowers and third-party originators.
Fluctuations in the exchange rate between the MXN and the US Dollar could have a material impact on our results of operations. A 10% change in exchange rates as of March 30, 2024 could have resulted in a revaluation loss of approximately $0.3 million.
Fluctuations in the exchange rate between the MXN and the US Dollar could have a material impact on our results of operations. A 10% change in exchange rates as of March 29, 2025 could have resulted in a revaluation loss of approximately $0.7 million.
As of March 30, 2024, we had outstanding IRLCs with a notional amount of $39.0 million recorded at fair value in accordance with FASB ASC 815, Derivatives and Hedging.
As of March 29, 2025, we had outstanding IRLCs with a notional amount of $16.3 million recorded at fair value in accordance with FASB ASC 815, Derivatives and Hedging.

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