10-Q 1 cvco-20231230.htm 10-Q cvco-20231230
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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended December 30, 2023
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                    to

Commission File Number 000-08822
CAVCO INDUSTRIES INC.
(Exact name of registrant as specified in its charter)
Delaware56-2405642
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer
Identification No.)
3636 North Central Ave, Ste 1200
PhoenixArizona85012
(Address of principal executive offices, including zip code)
(602) 256-6263
(Registrant's telephone number, including area code)
Not Applicable
(Former name, former address and former fiscal year, if changed since last report)
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, par value $0.01CVCOThe Nasdaq Stock Market LLC
(Nasdaq Global Select Market)
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes      No  
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes      No  
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large Accelerated FilerAccelerated Filer
Non-accelerated FilerSmaller Reporting Company
Emerging Growth Company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes      No 
As of January 26, 2024, 8,346,618 shares of the registrant's Common Stock, $0.01 par value, were outstanding.



CAVCO INDUSTRIES, INC.
FORM 10-Q
December 30, 2023
TABLE OF CONTENTS
Page
Item 3. Not applicable
Item 4. Not applicable


PART 1. FINANCIAL INFORMATION
Item 1. Financial Statements
CAVCO INDUSTRIES, INC.
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands, except per share amounts)
December 30,
2023
April 1,
2023
ASSETS(Unaudited)
Current assets
Cash and cash equivalents$352,808 $271,427 
Restricted cash, current13,215 11,728 
Accounts receivable, net70,501 89,347 
Short-term investments16,819 14,978 
Current portion of consumer loans receivable, net11,855 17,019 
Current portion of commercial loans receivable, net48,817 43,414 
Current portion of commercial loans receivable from affiliates, net2,135 640 
Inventories236,649 263,150 
Prepaid expenses and other current assets80,248 92,876 
Total current assets833,047 804,579 
Restricted cash585 335 
Investments16,099 18,639 
Consumer loans receivable, net24,279 27,129 
Commercial loans receivable, net38,836 53,890 
Commercial loans receivable from affiliates, net2,784 4,033 
Property, plant and equipment, net224,216 228,278 
Goodwill120,744 114,547 
Other intangibles, net28,613 29,790 
Operating lease right-of-use assets37,393 26,755 
Total assets$1,326,596 $1,307,975 
LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable$23,928 $30,730 
Accrued expenses and other current liabilities247,244 262,661 
Total current liabilities271,172 293,391 
Operating lease liabilities33,285 21,678 
Other liabilities7,651 7,820 
Deferred income taxes5,788 7,581 
Redeemable noncontrolling interest 1,219 
Stockholders' equity
Preferred stock, $0.01 par value; 1,000,000 shares authorized; No shares issued or outstanding
  
Common stock, $0.01 par value; 40,000,000 shares authorized; Issued 9,381,147 and 9,337,125 shares, respectively; Outstanding 8,345,812 and 8,665,324 shares, respectively
94 93 
Treasury stock, at cost; 1,035,335 and 671,801 shares, respectively
(262,072)(164,452)
Additional paid-in capital277,847 271,950 
Retained earnings993,193 869,310 
Accumulated other comprehensive loss(362)(615)
Total stockholders' equity1,008,700 976,286 
Total liabilities, redeemable noncontrolling interest and stockholders' equity$1,326,596 $1,307,975 
See accompanying Notes to Consolidated Financial Statements
1

CAVCO INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Dollars in thousands, except per share amounts)
(Unaudited)
Three Months EndedNine Months Ended
December 30,
2023
December 31,
2022
December 30,
2023
December 31,
2022
Net revenue
$446,769 $500,603 $1,374,674 $1,666,333 
Cost of sales
343,718 368,635 1,046,787 1,232,042 
Gross profit
103,051 131,968 327,887 434,291 
Selling, general and administrative expenses
63,312 58,904 186,498 191,934 
Income from operations39,739 73,064 141,389 242,357 
Interest income5,234 3,581 15,664 6,746 
Interest expense(842)(216)(1,365)(610)
Other (expense) income, net(224)(348)557 (291)
Income before income taxes43,907 76,081 156,245 248,202 
Income tax expense(7,920)(16,492)(32,274)(54,721)
Net income
35,987 59,589 123,971 193,481 
Less: net income attributable to redeemable noncontrolling interest 65 88 239 
Net income attributable to Cavco common stockholders$35,987 $59,524 $123,883 $193,242 
Comprehensive income
Net income$35,987 $59,589 $123,971 $193,481 
Reclassification adjustment for securities sold 293 (13)299 (19)
Applicable income tax (expense) benefit(62)3 (63)4 
Net change in unrealized position of investments held
13 107 22 (412)
Applicable income tax (expense) benefit(3)(23)(5)86 
Comprehensive income36,228 59,663 124,224 193,140 
Less: comprehensive income attributable to redeemable noncontrolling interest 65 88 239 
Comprehensive income attributable to Cavco common stockholders$36,228 $59,598 $124,136 $192,901 
Net income per share attributable to Cavco common stockholders
Basic
$4.31 $6.71 $14.47 $21.72 
Diluted
$4.27 $6.66 $14.34 $21.55 
Weighted average shares outstanding
Basic
8,358,389 8,870,565 8,561,209 8,897,405 
Diluted
8,432,471 8,936,075 8,640,288 8,969,104 

See accompanying Notes to Consolidated Financial Statements
2

CAVCO INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in thousands)
(Unaudited)
Nine Months Ended
December 30,
2023
December 31,
2022
OPERATING ACTIVITIES
Net income$123,971 $193,481 
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization13,854 12,174 
Provision for credit losses(121)(659)
Deferred income taxes(1,861)3,225 
Stock-based compensation expense4,698 4,855 
Non-cash interest income, net(1,230)(527)
Loss (gain) on sale or retirement of property, plant and equipment, net186 (116)
Gain on investments and sale of loans, net(5,958)(6,647)
Distributions of earnings from equity method investments 4,306 
Changes in operating assets and liabilities, net of acquisitions
Accounts receivable18,161 15,988 
Consumer loans receivable originated(74,306)(135,552)
Proceeds from sales of consumer loans receivable81,752 146,050 
Principal payments received on consumer loans receivable5,480 7,206 
Inventories51,182 28,513 
Prepaid expenses and other current assets9,909 (16,525)
Commercial loans receivable originated(83,509)(71,183)
Principal payments received on commercial loans receivable87,591 61,605 
Accounts payable, accrued expenses and other liabilities(23,695)(16,075)
Net cash provided by operating activities206,104 230,119 
INVESTING ACTIVITIES
Purchases of property, plant and equipment(13,237)(40,850)
Payments for acquisitions, net(19,702) 
Proceeds from sale of property, plant and equipment4,514 406 
Purchases of investments(7,408)(10,198)
Proceeds from sale of investments9,290 9,230 
Return of invested capital from equity method investments 12,213 
Net cash used in investing activities(26,543)(29,199)
FINANCING ACTIVITIES
Payments for taxes on stock option exercises and releases of equity awards(1,898)(1,072)
Proceeds from exercise of stock options3,098 1,591 
Payments on finance leases and other secured financings(442)(549)
Payments for common stock repurchases(96,781)(73,230)
Distributions to noncontrolling interest(420)(600)
Net cash used in financing activities(96,443)(73,860)
Net increase in cash, cash equivalents and restricted cash83,118 127,060 
Cash, cash equivalents and restricted cash at beginning of the fiscal year283,490 259,334 
Cash, cash equivalents and restricted cash at end of the period$366,608 $386,394 
Supplemental disclosures of cash flow information
Cash paid for income taxes$28,776 $71,137 
Cash paid for interest$612 $430 
Supplemental disclosures of noncash activity
Change in GNMA loans eligible for repurchase$(3,812)$(2,914)
Right-of-use assets recognized and operating lease obligations incurred$14,743 $3,535 
Non-cash consideration for acquisitions$5,430 $ 
See accompanying Notes to Consolidated Financial Statements
3

CAVCO INDUSTRIES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
1. Basis of Presentation
The accompanying unaudited Consolidated Financial Statements of Cavco Industries, Inc. and its subsidiaries (collectively, "we," "us," "our," the "Company" or "Cavco") have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the "SEC") for Quarterly Reports on Form 10-Q and Article 10 of SEC Regulation S-X. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles ("GAAP") have been condensed or omitted pursuant to such rules and regulations. In addition, references throughout to numbered "Notes" refer to these Notes to Consolidated Financial Statements (Unaudited), unless otherwise stated.
In the opinion of management, these financial statements include all adjustments, including normal recurring adjustments, which are necessary to fairly state the results for the periods presented. Certain prior period amounts have been reclassified including from Other (expense) income, net to Interest income to conform to current period classification. We have evaluated subsequent events after the balance sheet date through the date of the filing of this report with the SEC, and there were no disclosable subsequent events. These Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and the Notes to the Consolidated Financial Statements included in our 2023 Annual Report on Form 10-K for the year ended April 1, 2023, filed with the SEC ("Form 10-K").
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the Consolidated Financial Statements and accompanying Notes. Due to uncertainties, actual results could differ from the estimates and assumptions used in preparation of the Consolidated Financial Statements. The Consolidated Statements of Comprehensive Income and Consolidated Statements of Cash Flows for the interim periods are not necessarily indicative of the results or cash flows for the full year. The Company operates on a 52-53 week fiscal year ending on the Saturday nearest to March 31st of each year. Each fiscal quarter consists of 13 weeks, with an occasional fourth quarter extending to 14 weeks, if necessary, for the fiscal year to end on the Saturday nearest to March 31st. The current fiscal year will end on March 30, 2024 and will include 52 weeks.
We operate in two segments: (1) factory-built housing, which includes wholesale and retail factory-built housing operations, and (2) financial services, which includes manufactured housing consumer finance and insurance. We design and build a wide variety of affordable manufactured homes, modular homes and park model RVs through 29 homebuilding production lines located throughout the United States and two production lines in Mexico. We distribute our homes through a large network of independent distribution points in 48 states and Canada as well as 73 Company-owned U.S. retail stores, of which 43 are located in Texas. The financial services segment is comprised of a finance subsidiary, CountryPlace Acceptance Corp. ("CountryPlace"), and an insurance subsidiary, Standard Casualty Company ("Standard Casualty"). CountryPlace is an approved Federal National Mortgage Association and Federal Home Loan Mortgage Corporation seller/servicer and a Government National Mortgage Association ("GNMA") mortgage-backed securities issuer that offers conforming mortgages, non-conforming mortgages and home-only loans to purchasers of factory-built homes. Standard Casualty provides property and casualty insurance primarily to owners of manufactured homes.
4

During fiscal 2023, we completed the acquisition of Solitaire Inc. and other related entities (collectively "Solitaire Homes"), including their four manufacturing facilities and twenty-two retail locations by acquiring 100% of the outstanding stock of Solitaire Homes. The results of operations are included in our Consolidated Financial Statements from the date of acquisition. See Note 21, Acquisition.
At December 30, 2023 we have a 70% interest in Craftsman Homes, LLC and Craftsman Homes Development, LLC (collectively "Craftsman"). On September 28, 2023, we executed an amendment to the Membership Interest Purchase Agreement (the "Agreement") for Craftsman to acquire the remaining 30% interest in Craftsman for cash on December 31, 2023. An additional amendment was signed in December 2023 to move the acquisition date to January 1, 2024. As the entire 30% is mandatorily redeemable, the value attributed to this noncontrolling interest at December 30, 2023 is included in Accrued expenses and other current liabilities on the Consolidated Balance Sheets at fair value. On January 1, 2024 we acquired the remaining 30% interest in Craftsman for cash.
On November 15, 2023, the Company acquired certain assets and liabilities of Kentucky Dream Homes, LLC, a manufactured home retailer with locations in Kentucky and Florida. The results of operations are included in our Consolidated Financial Statements from the date of acquisition. See Note 21, Acquisition
For a description of significant accounting policies we used in the preparation of our Consolidated Financial Statements, please refer to Note 1 of the Notes to Consolidated Financial Statements included in the Form 10-K.
2. Revenue from Contracts with Customers
The following table summarizes Net revenue disaggregated by reportable segment and source (in thousands):
Three Months EndedNine Months Ended
 December 30, 2023December 31, 2022December 30,
2023
December 31,
2022
Factory-built housing
     Home sales$400,633 $455,459 $1,250,417 $1,555,236 
     Delivery, setup and other revenues26,306 25,734 67,697 58,156 
426,939 481,193 1,318,114 1,613,392 
Financial services
     Insurance agency commissions received from third-party insurance companies
1,229 887 3,145 3,313 
     All other sources18,601 18,523 53,415 49,628 
19,830 19,410 56,560 52,941 
$446,769 $500,603 $1,374,674 $1,666,333 
3. Cash and Cash Equivalents and Restricted Cash
The following table provides a reconciliation of Cash and cash equivalents and Restricted cash reported within the Consolidated Balance Sheets to the combined amounts shown in the Consolidated Statements of Cash Flows (in thousands):
December 30,
2023
April 1,
2023
Cash and cash equivalents$352,808 $271,427 
Restricted cash, current13,215 11,728 
Restricted cash585 335 
$366,608 $283,490 
5

4. Investments
Investments consisted of the following (in thousands):
December 30,
2023
April 1,
2023
Available-for-sale debt securities$19,207 $18,555 
Marketable equity securities
8,788 9,989 
Non-marketable equity investments
4,923 5,073 
32,918 33,617 
Less short-term investments(16,819)(14,978)
$16,099 $18,639 
Investments in marketable equity securities consist of investments in the common stock of industrial and other companies.
Our non-marketable equity investments include investments in other retail distribution operations and community-based initiatives.
The amortized cost and fair value of our investments in available-for-sale debt securities, by security type are shown in the table below (in thousands):
December 30, 2023April 1, 2023
Amortized
Cost
Fair
Value
Amortized CostFair
Value
Residential mortgage-backed securities
$1,888 $1,836 $2,567 $2,488 
State and political subdivision debt securities
5,652 5,515 6,023 5,769 
Corporate debt securities
12,124 11,856 10,745 10,298 
$19,664 $19,207 $19,335 $18,555 
The amortized cost and fair value of our investments in available-for-sale debt securities, by contractual maturity, are shown in the table below (in thousands). Expected maturities differ from contractual maturities as borrowers may have the right to call or prepay obligations, with or without penalties.
December 30, 2023
Amortized
Cost
Fair
Value
Due in less than one year$7,585 $7,453 
Due after one year through five years9,804 9,532 
Due after five years through ten years  
Due after ten years387 386 
Mortgage-backed securities1,888 1,836 
$19,664 $19,207 
6

Net investment gains and losses on marketable equity securities were as follows (in thousands):
Three Months EndedNine Months Ended
December 30,
2023
December 31,
2022
December 30,
2023
December 31,
2022
Marketable equity securities
Net gain (loss) recognized during the period$776 $707 $1,051 $(1,868)
Less: Net (gain) loss recognized on securities sold during the period(235)(107)(365)183 
Unrealized gain (loss) recognized during the period on securities still held$541 $600 $686 $(1,685)
5. Inventories
Inventories consisted of the following (in thousands):
December 30,
2023
April 1,
2023
Raw materials$80,630 $92,045 
Work in process25,969 29,022 
Finished goods130,050 142,083 
$236,649 $263,150 
6. Consumer Loans Receivable
The following table summarizes consumer loans receivable (in thousands):
December 30,
2023
April 1,
2023
Loans held for investment, previously securitized$18,001 $21,000 
Loans held for investment12,901 13,117 
Loans held for sale6,236 10,846 
Construction advances464 706 
37,602 45,669 
Deferred financing fees and other, net(362)(368)
Allowance for loan losses(1,106)(1,153)
36,134 44,148 
Less current portion(11,855)(17,019)
$24,279 $27,129 
The consumer loans held for investment had the following characteristics:
December 30,
2023
April 1,
2023
Weighted average contractual interest rate8.0 %8.2 %
Weighted average effective interest rate8.6 %8.8 %
Weighted average months to maturity173150
7

The following table is a consolidated summary of the delinquency status of the outstanding principal balance of consumer loans receivable (in thousands):
December 30,
2023
April 1,
2023
Current$35,403 $43,252 
31 to 60 days951 1,247 
61 to 90 days311 213 
91+ days937 957 
$37,602 $45,669 
The following table disaggregates the outstanding principal balance of consumer loans receivable by credit quality indicator and fiscal year of origination (in thousands):
December 30, 2023
20242023202220212020PriorTotal
Prime- FICO score 680 and greater
$5,628 $329 $97 $985 $1,914 $15,413 $24,366 
Near Prime- FICO score 620-679
744   1,208 949 9,146 12,047 
Sub-Prime- FICO score less than 620
   18 49 803 870 
No FICO score
     319 319 
$6,372 $329 $97 $2,211 $2,912 $25,681 $37,602 
April 1, 2023
20232022202120202019PriorTotal
Prime- FICO score 680 and greater
$9,471 $185 $1,051 $1,982 $1,191 $16,601 $30,481 
Near Prime- FICO score 620-679
1,695  1,012 1,131 1,550 8,244 13,632 
Sub-Prime- FICO score less than 620
84  19 51  1,033 1,187 
No FICO score
    24 345 369 
$11,250 $185 $2,082 $3,164 $2,765 $26,223 $45,669 
As of December 30, 2023, 42% of the outstanding principal balance of the consumer loans receivable portfolio was concentrated in Texas and 14% was concentrated in Florida. As of April 1, 2023, 44% of the outstanding principal balance of the consumer loans receivable portfolio was concentrated in Texas and 13% was concentrated in Florida. Other than Texas and Florida, no state had concentrations in excess of 10% of the outstanding principal balance of the consumer loans receivable as of December 30, 2023 or April 1, 2023.
Repossessed homes totaled approximately $0.8 million and $1.1 million as of December 30, 2023 and April 1, 2023, respectively, and are included in Prepaid expenses and other current assets in the Consolidated Balance Sheets. Homes undergoing foreclosure or similar proceedings in progress totaled approximately $0.4 million and $0.5 million as of December 30, 2023 and April 1, 2023, respectively.
7. Commercial Loans Receivable
The commercial loans receivable balance consists of direct financing arrangements for the home product needs of our independent distributors, community owners and developers.
8

Commercial loans receivable, net consisted of the following (in thousands):
December 30,
2023
April 1,
2023
Loans receivable$94,178 $103,726 
Allowance for loan losses (1,423)(1,586)
Deferred financing fees, net(183)(163)
92,572 101,977 
Less current portion of commercial loans receivable (including from affiliates), net(50,952)(44,054)
$41,620 $57,923 
The commercial loans receivable balance had the following characteristics:
December 30,
2023
April 1,
2023
Weighted average contractual interest rate6.5 %7.6 %
Weighted average months outstanding119
Nonperforming status includes loans accounted for on a non-accrual basis and accruing loans with principal payments 90 days or more past due. As of December 30, 2023 and April 1, 2023, there were no commercial loans considered nonperforming. The following table disaggregates the outstanding principal balance of our commercial loans receivable by fiscal year of origination (in thousands):
December 30, 2023
20242023202220212020PriorTotal
Performing
$48,598 $34,344 $6,522 $2,462 $1,478 $774 $94,178 
April 1, 2023
20232022202120202019PriorTotal
Performing
$80,193 $16,028 $4,071 $2,203 $1,231 $ $103,726 
As of December 30, 2023 and April 1, 2023, there were no commercial loans 90 days or more past due that were still accruing interest, and we were not aware of any potential problem loans that would have a material effect on the commercial loans receivable balance.
As of December 30, 2023, we had concentrations of our outstanding principal balance of the commercial loans receivable balance in New York of 15% and California of 16%. As of April 1, 2023, 18% of our outstanding principal balance of the commercial loans receivable balance was in New York. No other state had concentrations in excess of 10% of the outstanding principal balance of the commercial loans receivable as of December 30, 2023 or April 1, 2023.
As of December 30, 2023 and April 1, 2023, one independent third-party and its affiliates comprised 14% and 12%, respectively, of the net commercial loans receivable principal balance outstanding, all of which was secured.
9

8. Property, Plant and Equipment, net
Property, plant and equipment, net, consisted of the following (in thousands):
December 30,
2023
April 1,
2023
Property, plant and equipment, at cost
Buildings and improvements$170,423 $167,291 
Machinery and equipment78,496 76,826 
Land39,822 39,822 
Construction in progress7,913 5,472 
296,654 289,411 
Accumulated depreciation(72,438)(61,133)
$224,216 $228,278 
Depreciation expense for the three and nine months ended December 30, 2023 was $4.2 million and $12.7 million, respectively. Depreciation expense for the three and nine months ended December 31, 2022 was $3.4 million and $10.7 million, respectively.
9. Leases
We lease certain production and retail locations, office space and equipment. The following table provides information about the financial statement classification of our lease balances reported within the Consolidated Balance Sheets as of December 30, 2023 and April 1, 2023 (in thousands):
ClassificationDecember 30,
2023
April 1,
2023
ROU assets
Operating lease assetsOperating lease right-of-use ("ROU") assets$37,393 $26,755 
Finance lease assets
Property, plant and equipment, net (1)
6,351 6,088 
Total lease assets$43,744 $32,843 
Lease Liabilities
Current:
   Operating lease liabilitiesAccrued expenses and other current liabilities$5,305 $6,262 
   Finance lease liabilitiesAccrued expenses and other current liabilities79 347 
Non-current:
   Operating lease liabilitiesOperating lease liabilities33,285 21,678 
   Finance lease liabilitiesOther liabilities6,107 5,896 
Total lease liabilities$44,776 $34,183 
(1) Recorded net of accumulated amortization of $0.4 million and $0.3 million as of December 30, 2023 and April 1, 2023, respectively.
10


The present value of future minimum payments under non-cancelable leases as of December 30,
2023 was as follows (in thousands):
Operating LeasesFinance LeasesTotal
Remainder of fiscal 2024$1,688 $89 $1,777 
Fiscal 20257,035 356 7,391 
Fiscal 20266,980 356 7,336 
Fiscal 20274,545 356 4,901 
Fiscal 20283,649 356 4,005 
Fiscal 20293,456 356 3,812 
Thereafter20,276 10,230 30,506 
47,629 12,099 59,728 
Less: Amount representing interest(9,039)(5,913)(14,952)
$38,590 $6,186 $44,776 

10. Goodwill and Other Intangibles, net
Goodwill and other intangibles, net, consisted of the following (in thousands):
December 30, 2023April 1, 2023
Gross
Carrying
Amount
Accumulated
Amortization
Net
Carrying
Amount
Gross
Carrying
Amount
Accumulated
Amortization
Net
Carrying
Amount
Indefinite-lived
Goodwill$120,744 $— $120,744 $114,547 $— $114,547 
Trademarks and trade names
16,980 — 16,980 16,980 — 16,980 
State insurance licenses
1,100 — 1,100 1,100 — 1,100 
138,824 — 138,824 132,627 — 132,627 
Finite-lived
Customer relationships15,000 (4,965)10,035 16,900 (5,818)11,082 
Other
1,114 (616)498 1,114 (486)628 
$154,938 $(5,581)$149,357 $150,641 $(6,304)$144,337 
Changes to Goodwill for the nine months ended December 30, 2023 were as follows (in thousands):
Goodwill beginning of the period$114,547 
Solitaire Goodwill adjustments (1)1,137 
Kentucky Dream Homes (1)4,591 
Other immaterial acquisition469 
$120,744 
(1) See Note 21, Acquisitions
11

Amortization expense recognized on intangible assets for the three and nine months ended December 30, 2023 was $0.4 million and $1.2 million, respectively. Amortization expense recognized on intangible assets for the three and nine months ended December 31, 2022 was $0.5 million and $1.5 million, respectively. Customer relationships have a weighted average remaining life of 7.1 years and other finite lived intangibles have a weighted average remaining life of 2.8 years.
Expected future amortization is as follows (in thousands):
Remainder of fiscal year 2024$392 
Fiscal 20251,530 
Fiscal 20261,488 
Fiscal 20271,415 
Fiscal 20281,299 
Fiscal 20291,265 
Thereafter3,144 
$10,533 
11. Accrued Expenses and Other Current Liabilities
Accrued expenses and other current liabilities consisted of the following (in thousands):
December 30,
2023
April 1,
2023
Salaries, wages and benefits$41,023 $47,100 
Customer deposits40,698 45,193 
Estimated warranties32,822 31,368 
Unearned insurance premiums30,192 27,901 
Accrued volume rebates25,086 22,858 
Accrued self-insurance13,671 11,467 
Other63,752 76,774 
$247,244 $262,661 
12. Warranties
Activity in the liability for estimated warranties was as follows (in thousands):
Three Months EndedNine Months Ended
December 30,
2023
December 31,
2022
December 30,
2023
December 31,
2022
Balance at beginning of period$33,015 $30,841 $31,368 $26,250 
Charged to costs and expenses11,341 12,036 36,956 40,663 
Payments and deductions(11,534)(11,931)(35,502)(35,967)
Balance at end of period$32,822 $30,946 $32,822 $30,946 
12

13. Other Liabilities
The following table summarizes secured financings and other obligations (in thousands):
December 30,
2023
April 1,
2023
Finance lease liabilities$6,186 $6,243 
Mandatorily redeemable noncontrolling interest2,796 2,268 
Other secured financing1,942 2,379 
10,924 10,890 
Less current portion included in Accrued expenses and other current liabilities(3,273)(3,070)
$7,651 $7,820 
14. Debt
We are party to a Credit Agreement (the "Credit Agreement") that expires in 2027 with Bank of America, N.A., providing for a $50 million revolving credit facility (the "Revolving Credit Facility"), which may be increased up to an aggregate amount of $100 million.
As of December 30, 2023 and April 1, 2023, there were no borrowings outstanding under the Revolving Credit Facility and we were in compliance with all covenants.
15. Reinsurance and Insurance Loss Reserves
Certain of Standard Casualty's premiums and benefits are assumed from and ceded to other insurance companies under various reinsurance agreements. We remain obligated for amounts ceded in the event that the reinsurers do not meet their obligations.
The effects of reinsurance on premiums written and earned were as follows (in thousands):

Three Months Ended
December 30, 2023December 31, 2022
WrittenEarnedWrittenEarned
Direct premiums
$11,135 $10,693 $7,454 $7,529 
Assumed premiums—nonaffiliated
8,430 8,459 7,709 8,358 
Ceded premiums—nonaffiliated
(6,406)(6,406)(4,413)(4,413)

$13,159 $12,746 $10,750 $11,474 
Nine Months Ended
December 30, 2023December 31, 2022
WrittenEarnedWrittenEarned
Direct premiums
$31,581 $28,740 $22,350 $21,917 
Assumed premiums—nonaffiliated
27,735 25,880 25,555 24,526 
Ceded premiums—nonaffiliated
(18,971)(18,971)(13,056)(13,056)

$40,345 $35,649 $34,849 $33,387 
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Typical insurance policies written or assumed have a maximum coverage of $0.4 million per claim, of which we cede $0.2 million of the risk of loss per reinsurance. Therefore, our risk of loss is limited to $0.2 million per claim on typical policies, subject to the reinsurers meeting their obligations. After this limit, amounts are recoverable through reinsurance for catastrophic losses in excess of $3.0 million per occurrence, up to a maximum of $100 million in the aggregate for that occurrence.
Standard Casualty establishes reserves for claims and claims expense on reported and incurred but not reported ("IBNR") claims of non-reinsured losses. The following details the activity in the reserve for the three and nine months ended December 30, 2023 and December 31, 2022 (in thousands):
Three Months EndedNine Months Ended
December 30,
2023
December 31,
2022
December 30,
2023
December 31,
2022
Balance at beginning of period$9,154 $7,790 $10,939 $8,149 
Net incurred losses during the period9,489 8,464 29,152 25,050 
Net claim payments during the period(9,189)(7,163)(30,637)(24,108)
Balance at end of period$9,454 $9,091 $9,454 $9,091 
16. Commitments and Contingencies
Repurchase Contingencies. The maximum amount for which the Company was liable under the terms of repurchase agreements with financial institutions that provide inventory financing to independent distributors of our products approximated $116 million and $178 million at December 30, 2023 and April 1, 2023, respectively, without reduction for the estimated resale value of the homes. During the third quarter of fiscal 2024, we received one repurchase demand notice for three homes. During the nine months ended December 30, 2023, we received three repurchase demand notices covering nine homes, of which six homes had been repurchased by period end. In all cases, the estimated fair value exceeded the repurchase price so no loss reserve was deemed necessary. Our reserve for repurchase commitments, recorded in Accrued expenses and other current liabilities, was $2.7 million at December 30, 2023 and $5.2 million at April 1, 2023.
Construction-Period Mortgages. Loan contracts with off-balance sheet commitments are summarized below (in thousands):
December 30,
2023
April 1,
2023
Construction loan contract amount$1,361 $2,214 
Cumulative advances(464)(706)
$897 $1,508 
Representations and Warranties of Mortgages Sold. The reserve for contingent repurchases and indemnification obligations was $0.6 million as of December 30, 2023 and $0.7 million as of April 1, 2023, included in Accrued expenses and other current liabilities on the Consolidated Balance Sheets. There were no claim requests that resulted in the repurchase of any loans during the nine months ended December 30, 2023 or December 31, 2022.
Interest Rate Lock Commitments ("IRLCs"). As of December 30, 2023 and April 1, 2023, we had outstanding IRLCs with a notional amount of $24.1 million and $64.9 million, respectively. For the three and nine months ended December 30, 2023, we recognized insignificant non-cash gains and losses, respectively, on outstanding IRLCs. For the three and nine months ended December 31, 2022, we recognized insignificant non-cash gains on outstanding IRLCs.
Forward Sales Commitments. As of December 30, 2023 and April 1, 2023, we had $0.8 million and $1.6 million in outstanding forward sales commitments ("Commitments"), respectively. During the three and nine months ended December 30, 2023, we recognized insignificant non-cash losses. During the three and nine months ended December 31, 2022, we recognized non-cash losses of $0.2 million and $0.3 million, respectively, relating to our Commitments.
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Legal Matters. We are party to certain lawsuits in the ordinary course of business. Based on management's present knowledge of the facts and (in certain cases) advice of outside counsel, management does not believe that loss contingencies arising from pending matters are likely to have a material adverse effect on our consolidated financial position, liquidity or results of operations after taking into account any existing reserves, which reserves are included in Accrued expenses and other current liabilities on the Consolidated Balance Sheets. However, future events or circumstances that may currently be unknown to management will determine whether the resolution of pending or threatened litigation or claims will ultimately have a material effect on our consolidated financial position, liquidity or results of operations in any future reporting periods.
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17. Stockholders' Equity and Redeemable Noncontrolling Interest
The following table represents changes in stockholders' equity attributable to Cavco's stockholders and redeemable noncontrolling interest during the nine months ended December 30, 2023 (dollars in thousands):
Equity Attributable to Cavco Stockholders
Treasury stockAdditional paid-in capitalRetained earningsAccumulated other comprehensive income (loss)TotalRedeemable noncontrolling interest
Common Stock
SharesAmount
Balance, April 1, 20239,337,125 $93 $(164,452)$271,950 $869,310 $(615)$976,286 $1,219 
Net income—    46,357  46,357 54 
Other comprehensive loss, net—     (42)(42) 
Issuance of common stock under stock incentive plans, net10,095   (1,213)  (1,213) 
Stock-based compensation—   1,438   1,438  
Distributions— — — — — — — (120)
Valuation adjustment— — — — — — — (33)
Balance, July 1, 20239,347,220 93 (164,452)272,175 915,667 (657)1,022,826 1,120 
Net income—    41,539  41,539 34 
Other comprehensive income, net—     54 54  
Issuance of common stock under stock incentive plans, net9,201 1  478   479  
Stock-based compensation—   1,551   1,551  
Common stock repurchases— — (47,194)— — — (47,194)— 
Distributions— — — — — — — (180)
Conversion to mandatorily redeemable noncontrolling interest— — — — — — — (974)
Balance, September 30, 20239,356,421 94 (211,646)274,204 957,206 (603)1,019,255  
Net income—    35,987  35,987  
Other comprehensive income, net—     241 241  
Issuance of common stock under stock incentive plans, net24,726   1,934   1,934  
Stock-based compensation—   1,709   1,709  
Common stock repurchases— — (50,426)— — — (50,426)— 
Balance, December 30, 20239,381,147 $94 $(262,072)$277,847 $993,193 $(362)$1,008,700 $ 
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The following table represents changes in stockholders' equity attributable to Cavco's stockholders and redeemable noncontrolling interest during the nine months ended December 31, 2022 (dollars in thousands):
Equity Attributable to Cavco Stockholders
Treasury stockAdditional paid-in capitalRetained earningsAccumulated other comprehensive income (loss)TotalRedeemable noncontrolling interest
Common Stock
SharesAmount
Balance, April 2, 20229,292,278 $93 $(61,040)$263,049 $628,756 $(403)$830,455 $825 
Net income—    59,602  59,602 92 
Other comprehensive loss, net—     (112)(112) 
Issuance of common stock under stock incentive plans, net5,957   (848)  (848) 
Stock-based compensation—   1,425   1,425  
Common stock repurchases— — (38,960)— — — (38,960)— 
Distributions— — — — — — — (240)
Balance, July 2, 20229,298,235 93 (100,000)263,626 688,358 (