Profile: Cavco Industries Inc (CVCO.OQ)

Cavco Industries, Inc. is a producer of manufactured homes in the United States. The Company designs and produces factory-built homes primarily distributed through a network of independent and Company-owned retailers. The Company is also a producer of park model homes, vacation cabins, and systems-built commercial structures, as well as modular homes. As of March 31, 2012, the Company distributed its homes through 53 Company-owned retail outlets and a network of approximately 1,029 independent retail outlets in 40 states, Canada, Mexico and Japan. The Company constructs its homes using an assembly-line process in which each section or floors is assembled in stages. As of March 31, 2012, the Company operated fifteen homebuilding facilities located in the Pacific, Mountain, South Central and South Atlantic regions. These factories range in size from 79,000 to 250,000 square feet.

The Company's homes are constructed in accordance with the National Manufactured Home Construction and Safety Standards promulgated by Department of Housing and Urban Development (HUD). Approximately 80% of the homes, the Company produced during the fiscal year ended March 31, 2012 (fiscal 2012), were HUD code homes. The Company also builds park model homes, constructed to standards approved by the American National Standards Institute. Park model homes are less than 400 square feet in size and are primarily second homes, used as vacation homes and for retirement living, and are placed in planned communities, recreational home parks and resorts. The Company produces a variety of modular homes, which include single and multi-section /modular ranch-style dwellings, split-level homes, Cape Cod styles homes, two and three story homes and multi-family units, such as apartments and duplexes.

The Company builds commercial modular structures, including apartment buildings, condominiums, hotels, schools and housing for United States military troops. Commercial buildings are constructed in the same facilities in which the Company builds its residential homes using similar assembly line processes and techniques. These commercial projects are engineered to the purchaser's specifications. The Company produces its residential homes in a variety of floor plans. These homes are single-story and generally range in size from approximately 500 to 3,300 square feet, but may be larger in the case of multi-level modular homes. In fiscal 2012, the Company sold 7,860 homes.

Each home contains a living room, dining area, kitchen, one to five bedrooms and one or more bathrooms, and is equipped with central heating and hot water systems, kitchen appliances, carpeting and window treatments. The Company also offers a variety of structural and decorative customizations to meet the home buyer's specifications. The Company also builds homes designed to use alternative energy sources, such as solar and winds. During fiscal 2012, the Company operated fifteen manufacturing facilities in Millersburg and Woodburn, Oregon; Nampa, Idaho; Riverside, California; Phoenix and Goodyear, Arizona; Austin, Fort Worth, Seguin and Waco, Texas; Lafayette, Tennessee; Martinsville and Rocky Mount, Virginia; Douglas, Georgia; and Plant City, Florida. These manufacturing facilities range from approximately 79,000 to 250,000 square feet of floor space.

In fiscal 2012, the Company's rate of production was approximately 46 sections per day. As of March 31, 2012, the Company had a network of 1,029 independent retail outlets of which 17% were in Texas, 15% in California, 8% in Arizona and 5% in Florida. The remaining 55% were in 36 other states, Canada and Mexico. The Company provides a source of homebuyer financing to its customers through its subsidiaries

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The Company competes with Clayton Homes, Inc., Champion Home Builders, Inc., Skyline Corporation, Berkshire Hathaway, Inc., and U.S. Bank Manufactured Housing Finance.