PHOENIX, April 21, 2022 (GLOBE NEWSWIRE) — Cavco Industries, Inc. (Nasdaq: CVCO) (“Cavco”) today announced the closing of the acquisition of a 184,000 square foot manufacturing facility in Hamlet , North Carolina.
As previously announced, the facility, which currently produces multi-family residential and commercial projects, will be modified to produce homes built to US Department of Housing and Urban Development (“HUD code”) standards. The seller, Volumetric Building Companies (“VBC”), will complete existing projects through the summer of 2022, when Cavco will complete the renovation of the facility for home HUD code production, with a production start date. planned by the fourth calendar quarter of 2022. Cavco intends to offer employment to employees of existing facilities after the transition. Other employment opportunities are expected to become available as home building expands.
Bill Boor, President and CEO, said, “We are delighted to complete the acquisition of the Hamlet facility. At Cavco, we are committed to increasing access to affordable housing, and once converted to single-family HUD code production, this is a necessary supplement. VBC has built a strong management and production team at Hamlet. We look forward to a bright future together.
The purchase price was paid in cash at closing and financed by Cavco’s internal capital.
About Cavco Industries, Inc.
Cavco Industries, Inc., headquartered in Phoenix, Arizona, designs and manufactures prefabricated housing products distributed primarily through a network of independent and company-owned retailers. We are one of the largest producers of manufactured and modular homes in the United States, based on reported wholesale shipments. Our products are marketed under various brands, including Cavco, Fleetwood, Palm Harbor, Nationwide, Fairmont, Friendship, Chariot Eagle, Destiny, Commodore, Colony, Pennwest, R-Anell, Manorwood and MidCountry. We are also a leading producer of recreational park vehicles, vacation cabins and pre-engineered commercial structures. Cavco’s financial subsidiary, CountryPlace Mortgage, is an authorized Fannie Mae and Freddie Mac seller/repairer and issuer of Ginnie Mae mortgage-backed securities that offers conforming mortgages, non-conforming mortgages and home loans only to buyers of manufactured homes. Our insurance subsidiary, Standard Casualty, offers property and casualty insurance to owners of manufactured homes. Additional information about Cavco is available at https://www.cavco.com.
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 Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. In general, all statements that are not historical in nature are forward-looking. Forward-looking statements are generally included, for example, in discussions regarding the manufactured home industry; our financial performance and results of operations; and the expected effect of certain risks and uncertainties on our business, financial condition and results of operations. All forward-looking statements are subject to risks and uncertainties, many of which are beyond our control. Accordingly, our actual results or performance may differ materially from anticipated results or performance. Factors that could cause such differences include, but are not limited to: the impact of local or national emergencies, including the COVID-19 pandemic, including the impacts of state and federal regulatory actions 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) labor availability and the health and safety of our workforce; and (iv) our liquidity and access to capital markets; labor shortages and the price and availability of raw materials; our ability to successfully integrate past or future acquisitions and the ability to realize anticipated benefits from such acquisitions; involvement in vertically integrated lines of business, including consumer credit for manufactured homes, trade finance and insurance; information technology failures or cyber incidents; our participation in certain financing programs for the purchase of our products by industrial distributors and consumers, which may expose us to additional risk of credit loss; material warranty claims and construction defects; our contingent wholesale funding redemption obligations; a write-off of all or part of our goodwill; our ability to maintain relationships with independent distributors; our company and operations being concentrated in certain geographical areas; governmental and regulatory disruptions, including prolonged congressional and presidential delays in approving budgets or continuing appropriation resolutions to facilitate the functioning of the federal government; reduced funding available from home moneylenders and increased regulation of loans; the availability of wholesale financing and limited floor plan lenders; market forces and fluctuations in housing demand; the cyclical and seasonal nature of our business; competition; general deterioration in economic conditions and turbulence in financial markets; unfavorable zoning ordinances; extensive regulations affecting the production and sale of prefabricated houses; the potential financial impact on the Company of subpoenas we have received from the SEC and its ongoing investigation, including the risk of potential litigation or regulatory action, as well as costs and expenses arising from subpoenas and the SEC’s investigation and events described or covered by the SEC subpoenas and investigations, which include the Company’s indemnification obligations and insurance costs relating to such matters, and potential damages to the reputation that the Company may suffer; losses not covered by our directors’ and officers’ insurance, which may be material and negatively impact financial performance; the loss of one of our leaders; our ability to generate income in the future; liquidity and ability to raise capital may be limited; provisions of organizational documents delaying or making more difficult a change of control; and share price volatility; and all other risks described in our filings with the SEC. Readers are specifically directed to review the risk factors described in Section 1A of the Company’s Annual Report on Form 10-K for the fiscal year ended April 3, 2021, as they may be amended from time to time. that identify material risks that could cause actual results to differ from those contained in the forward-looking statements. Cavco expressly disclaims any obligation to update any forward-looking statements contained in this release, whether as a result of new information, future events or otherwise. Investors should not place undue reliance on these forward-looking statements.
For more information, contact:
Director of Financial Information and Investor Relations
On the Internet: www.cavco.com