Cavco Industries, Inc. · NASDAQ:CVCO
Cavco Industries — Investor Presentation (December 2013)
36 slides from Cavco Industries's investor presentation, December 2013
Slide 1: Cavco Industries, Inc.
Cavco Industries, Inc. NASDAQ: CVCO
Slide 2: Cavco 2009 to 2013 growth through acquisitions
Cavco 2013 Acquisition of: • Standard Insurance • CountryPlace Mortgage Cavco 2009 Inventory Finance Acquisition of • 5 Factories • 49 Retail Stores 50 Retail 6 Retail Stores Stores Acquisition of • 7 factories 3 Factories 15 Factories
Slide 3: Company Highlights
Company Highlights Cavco 2009 Cavco 2013 • 700 Employees • 3,000 Employees • Serving 8 states • Serving 35 states, Canada & Mexico • $105 million revenue • Nearly $500 million revenue • 2.3% market share (HUD) • 12% market share (HUD)
Slide 4: AND… Inventory financing, mortgage, insurance
AND… • Inventory financing • Mortgage origination & servicing • Property & casualty insurance • Fleetwood Homes and Palm Harbor Homes – top 2 industry brands • Now the 2nd largest builder in US • 4x Mfg of the Year – vote by peers 4
Slide 5: Cavco Product Diversity: Single family home
Cavco Product Diversity Single family home
Slide 6: Cavco Product Diversity: Age restricted communities
Cavco Product Diversity Age restricted communities BUILT FOR YOUR LIFESTYLE. =
Slide 7: Cavco Product Diversity
Cavco Product Diversity 7
Slide 8: Cavco Product Diversity: Beachfront
Cavco Product Diversity Beachfront BUILT FOR YOUR Lirrsryir. =Gaveo—
Slide 9: Cavco Product Diversity: Multiple section modular home
Cavco Product Diversity Multiple section modular home
Slide 10: Cavco Product Diversity: Cape Cod style
Cavco Product Diversity Cape Cod style BUILT FOR YOUR LIFESTYLE _2Eaveo— 10
Slide 11: Cavco Product Diversity: Resort Rental Market
Cavco Product Diversity Resort Rental Market
Slide 12: Cavco Product Diversity: Kitchen
Cavco Product Diversity Kitchen - the center of household activity
Slide 13: Cavco Product Diversity: Expressive designs
a Cavco Product Diversity Expressive designs
Slide 14: Cavco Product Diversity: Luxury bath options
Cavco Product Diversity Luxury bath options BUILT FOR YOUR LIFESTYLE.. == x 14
Slide 15: Cavco Product Diversity: Master bedroom plans
Cavco Product Diversity Compelling master bedroom plans
Slide 16: Systems built in a factory, modules fitted together on site
Cavco Product Diversity Systems built in a factory, modules fitted together on site BUILT FOR YOUR LIFESTYLE
Slide 17: Multi Family Modular project under construction
Cavco Product Diversity Multi Family Modular project under construction
Slide 18: Multi Family, Multi Story Units
Cavco Product Diversity Multi Family, Multi Story Units
Slide 19: Manufactured Housing Industry Profile
Manufactured Housing Industry Profile 46 corporations 122 homebuilding factories 3,500 home sales centers 50,000 land-lease communities 75,000 full-time U.S. employees In 2012-manufactured housing accounted for • 31% of all new homes sold under $200,000 • 54% of all new homes sold under $150,000 • 7
Slide 20: Manufactured Housing Industry Profile
Manufactured Housing Industry Profile 20
Slide 21: Manufactured home industry – 30 year annual shipments
Manufactured home industry – 30 year annual shipments 373,000 363,000 353,000 400,000 349,000 340,000 304,000 350,000 295,000 295,000 283,000 254,000 251,000 300,000 245,000 233,000 218,000 211,000 250,000 198,000 193,000 188,000 171,000 169,000 200,000 147,000 131,000 131,000 118,000 150,000 96,000
Slide 22: Manufactured Housing Average Annual Home Shipments
Manufactured Housing Average Annual Home Shipments Since HUD code adopted 1976 215,000 20 year average 1993-2012 193,000 10 year average 2003-2012 91,000 5 year average 2008-2012 58,000 22
Slide 23: Manufactured Home Shipments as a percent of New Single-Family Home Sales
Manufactured Home Shipments as a percent of New Single-Family Home Sales 30% 28.7% Sub-prime boom for 25% site built Housing 20% 17.5% 14.7% 14.6%14.9% 15% 13.5% 10.8% 9.8% 10.3% 10.1% 11% 11.6% 11.7% 10% 5% 23
Slide 24: Factory-Built Housing Segment Revenue Potential
Cavco Factory-Built Housing Segment Revenue Potential correlated to single-family home sales and Cavco manufactured-home industry sales Housing 160,000 Segment $408m $600m $700m $850m $950m $1.1b Revenue 140,000 Potential 120,000 Potential Home Sales 100,000 Cavco Cavco Industry 105,000 Industry 120
Slide 25: Economic Headwinds Diminishing
Challenges Consumer confidence Unemployment and underemployment Financing availability, lack of secondary market Beginning to show modest signs of improvement Economic Headwinds Diminishing 25
Slide 26: Manufactured Housing Market
Critical component of U.S. housing needs Affordable housing ◦ Most affordable form of home ownership ◦ Ownership at monthly cost comparable to apartment rents ◦ Average retail sales price approximately $62,000 (home only) Custom and larger homes at better value than site built ◦ Rising raw mater
Slide 27: Large and diverse markets
Large and diverse markets First-time home buyers First move-up buyers Immigrants Baby boomers, empty nesters, and retirees ◦ Lifestyle oriented homebuyers – age-restricted communities Second home and seasonal living ◦ Attractively priced, low maintenance alternative to on-site construction
Slide 28: U.S. Demographic Indicators
U.S. Demographic Indicators US adult population estimated to expand by 15.3 million between 2013 and 2020 Home ownership rises with age ◦ Over 75% of the population age 55+ are home owners Gen Y (age 18-37) approximates 86 million in 2013 ◦ Late-stage Gen Y in peak household formation and home- buyi
Slide 29: U.S. Birth Rates
The two largest and fastest growing demographics are prime buyers of manufactured homes 49 to 67 year olds (Baby Boom) 19 to 33 year olds (Echo Boom) Baby Boom Echo Boom 4.5 1946-1964 1980-1994 Births (millions) 4 3.5 3 2.5 1946 1949 1952 1955 1958 1961 1964 1967 1970 1973 1976 1979 1982 1985 19
Slide 30: Investment Considerations
o Solid balance sheet and liquidity position o $0 operations debt o $62 million in cash and equivalents at 9/28/13 NASDAQ symbol: CVCO Investment Considerations 30
Slide 31: Investment Considerations
o Solid balance sheet and liquidity position o $0 operations debt o $62 million in cash and equivalents at 9/28/13 o No significant land investment reducing capital requirements/risk NASDAQ symbol: CVCO Investment Considerations 31
Slide 32: Investment Considerations
o Solid balance sheet and liquidity position o $0 operations debt o $62 million in cash and equivalents at 9/28/13 o No significant land investment reducing capital requirements/risk o Well positioned in affordable housing market with styles, sizes, features and prices that appeal to largest demogra
Slide 33: Investment Considerations
o Solid balance sheet and liquidity position o $0 operations debt o $62 million in cash and equivalents at 9/28/13 o No significant land investment reducing capital requirements/risk o Well positioned in affordable housing market with styles, sizes, features and prices that appeal to largest demogra
Slide 34: Investment Considerations
o Solid balance sheet and liquidity position o $0 operations debt o $62 million in cash and equivalents at 9/28/13 o No significant land investment reducing capital requirements/risk o Well positioned in affordable housing market with styles, sizes, features and prices that appeal to largest demogra
Slide 35: Investment Considerations
o Solid balance sheet and liquidity position o $0 operations debt o $62 million in cash and equivalents at 9/28/13 o No significant land investment reducing capital requirements/risk o Well positioned in affordable housing market with styles, sizes, features and prices that appeal to largest demogra
Slide 36: Forward Looking Statements
Certain statements contained in this release are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities and Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. In general, all statements that are not histor
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