Cavco Industries (CVCO, Financial) (0.4% of net assets as of June 30, 2023) (CVCO – $210.25 – NASDAQ), based in Phoenix, Arizona, is one of the largest manufactured home producers in the U.S., with fiscal 2023 (March 31 fiscal year end) revenue of $2.1 billion and net income of $241 million ($26.65 per share). Fiscal 2023 was Cavco’s thirteenth consecutive year of revenue and earnings growth. In January, Cavco closed the acquisition of Solitaire Homes, an Oklahoma based vertically integrated manufactured home producer with four plants and 22 retail locations. Despite the recent industry slowdown caused mostly by higher interest rates, Cavco is well positioned to benefit from healthy long term for affordable housing in the U.S. with 31 production lines, 64 company owned retail stores and mortgage and insurance subsidiaries. Cavco also has a strong balance sheet that includes $271 million of cash, and no parent company debt.
From Mario Gabelli (Trades, Portfolio)'s Gabelli Asset Fund second-quarter 2023 commentary.
