Cavco Industries, Inc. · NASDAQ:CVCO
Cavco Industries — Investor Presentation (July 2014)
36 slides from Cavco Industries's investor presentation, July 2014
Slide 1: Cavco Industries, Inc.
Cavco Industries, Inc. NASDAQ: CVCO
Slide 2: Cavco 2009 to 2014 acquisitions
Cavco 2014 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 2014 • 700 Employees • 3,000 Employees • Serving 8 states • Serving 35 states, Canada & Mexico • $105 million revenue • $533 million revenue • 2.3% market share (HUD) • 13% market share (HUD)
Slide 4: AND…
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 • 5x Mfg of the Year – vote by peers 4
Slide 5: Cavco Product Diversity
Cavco Product Diversity Single family home BUILT FOR YOUR LIFESTYLE —=Caveo—
Slide 6: Cavco Product Diversity
© ae 1 Rayer’, 5) eth, mT TT | Cavco Product Diversity Age restricted communities BUILT FOR YOUR LIFESTYLE. =Caveo—
Slide 7: Cavco Product Diversity
Cavco Product Diversity Santa Fe Style Home
Slide 8: Cavco Product Diversity
Cavco Product Diversity Beachfront Sa BUILT FOR YOUR Lirestvir. =Caveo=
Slide 9: Cavco Product Diversity
Cavco Product Diversity Multiple section modular home BUILT FOR YOUR LIFESTYLE 2Caveo— 9
Slide 10: Cavco Product Diversity
Cavco Product Diversity Cape Cod style 10
Slide 11: Cavco Product Diversity
Cavco Product Diversity Resort Rental Market
Slide 12: Cavco Product Diversity
Cavco Product Diversity Kitchen —- the center of household activity
Slide 13: Cavco Product Diversity
Cavco Product Diversity Expressive designs 13
Slide 14: Cavco Product Diversity
Cavco Product Diversity Luxury bath options 14
Slide 15: Cavco Product Diversity
Cavco Product Diversity Compelling master bedroom plans BUILT FOR YOUR LIFESTYLE _2€aveo— 15
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 16
Slide 17: Cavco Product Diversity
Cavco Product Diversity Multi Family Modular project under construction BUILT FOR YOUR LIFESTYLE... =
Slide 18: Cavco Product Diversity
Cavco Product Diversity Multi Family, Multi Story Units 18
Slide 19: Manufactured Housing Industry Profile
Manufactured Housing Industry Profile 46 corporations 123 homebuilding factories 3,500 home sales centers 50,000 land-lease communities 75,000 full-time U.S. employees In 2013-manufactured housing accounted for • 35% of all new homes sold under $200,000 • 63% of all new homes sold under $150,000 •2
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 214,000 20 year average 1993-2013 183,000 10 year average 2003-2013 84,000 5 year average 2008-2013 53,000 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% 14.4% 14.4% 12.3% 11.7%13.4% 15% 12.9% 10.8% 9.8% 10.3%10.1% 11% 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 140,000 Segment $486m $600m $700m $800m $900m $1B Revenue Potential 120,000 100,000 Potential Home Sales 80,000 21,000 Cavco 19,000 Cavco Industry 100,000 I
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 $64,000 (home only) Custom and larger homes at better value than site built ◦ Rising raw mater
Slide 27: Manufactured Home Owners
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: Favorable Demographic Trends
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 ◦ Population of 55+ projected to increase 26% from 2015-2030 Gen Y (age 18-37) approximates 86 million in 2013
Slide 29: U.S. Birth Rates
The two largest and fastest growing demographics are prime buyers of manufactured homes 50 to 68 year olds (Baby Boom) 20 to 34 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 $73 million in cash and equivalents at 3/29/14 NASDAQ symbol: CVCO Investment Considerations 30
Slide 31: Investment Considerations
o Solid balance sheet and liquidity position o $0 operations debt o $73 million in cash and equivalents at 3/29/14 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 $73 million in cash and equivalents at 3/29/14 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 $73 million in cash and equivalents at 3/29/14 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 $73 million in cash and equivalents at 3/29/14 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 $73 million in cash and equivalents at 3/29/14 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