Cavco Industries, Inc.

Good day, and thank you for standing by. Welcome to the first quarter fiscal year 2022 CAFCO Industries, Inc. earnings call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1 on your telephone. Please be advised that today's conference is being recorded. If you require any further assistance, please press star 0. I would like to hand the conference over to your speaker today, Mark Fessler, Director of Financial Reporting and Investor Relations. Thank you. Please go ahead.

Good day, and thank you for joining us for Capco Industries' first quarter fiscal year 2022 earnings conference call. During this call, you'll be hearing from Bill Bohr, President and Chief Executive Officer, Paul Digby, Chief Accounting Officer, and myself. Before we begin, we'd like to remind you that the comments made during this conference call by management may contain forward-looking statements under the provisions of the Private Securities Litigation Reform Act of 1995, including statements of expectations or assumptions about CAFCO's financial and operational performance, revenues, earnings per share, cash flow or use, cost savings, operational efficiencies, current or future volatility in the credit markets, or future market conditions. All forward-looking statements involve risks and uncertainties, which could affect Capco's actual results and could cause its actual results to differ materially from those expressed in any forward-looking statements made by or on behalf of Capco. I encourage you to review Capco's filings with the Securities and Exchange Commission, including, without limitation, the company's most recent forms 10-K and 10-Q, which identify specific factors that may cause actual results or events to differ materially from those described in the forward-looking statements. This conference call also contains time-sensitive information that is only accurate as of the date of this live broadcast, Friday, August 6, 2021. CAFCO undertakes no obligation to revise or update any forward-looking statement, whether written or oral, to reflect events or circumstances after the date of this conference call, except as required by law. I would like to turn the call over to Bill Bohrer, President and Chief Executive Officer. Bill?

Welcome and thank you for joining us today to review our results for the first fiscal quarter of 2022. We're very happy to report another record quarter for earnings and revenues. Revenues increased approximately 30% year over year, and our diluted EPS was up about 60%. This was also a quarter in which we executed across the spectrum of our investment priorities. Progress continues on the Glendale, Arizona park model facility, which will begin production around the end of the calendar year. We announced expansion of our Fort Worth plant. This investment in improved process flow and work environment will increase the plant's capacity by about 20%, and it's just one example of similar investments in our existing plants. And last week, we were able to announce the upcoming acquisition of Commodore Homes, which we will fund by putting $140 million of our cash to work. Commodore is an ideal fit, expanding our footprint into the Northeast and increasing our unit shipments by approximately 25 percent. Continuing on the topic of capital allocation, we made progress on our share buyback authorization during the quarter by investing $12.8 million at an average price of 209. When the authorization was announced last October, we said that the buybacks would not limit our focus or ability to make strategic investments, and this quarter demonstrates that point. So in a very busy and productive quarter, going back to the base business results, our plants continue to do an outstanding job of maintaining margins despite highly volatile costs. Margins grew this quarter as we saw average selling price increase 19% year over year and 12% compared to last quarter. This resulted in a record percent margin in home building of 21.2%. Lumber and OSB came off their recent highs during the period. However, with the lag in hitting cost of goods sold, those decreases were not reflected in margins to any significant degree. Operationally, we continue to deal with persistent labor and supply challenges. We feel very good about the work to date to improve retention and build skills, and we're confident that this focus, along with the ongoing product rationalization and plan investments, will enable us to improve efficiencies and throughput in our plants. Demand for our products remains strong. During the quarter, our backlogs continued to grow, and they now stand at $792 million, or approximately 40 weeks of production. Eighty percent of the unit backlog growth since the beginning of the pandemic is due to extremely high demand, and about 20 percent is due to the reduced production we've experienced over the past five quarters. On a year-over-year basis, our manufacturing orders in the first quarter continued at about 50% above the previous year's level. I feel very good about our operational and strategic execution this quarter, and demand and backlogs provide an ongoing positive outlook. The pandemic did not cause us to hesitate with regard to our commitment to our customers as we continued safely operating all of our plants. and we remained committed to our capital allocation priorities of investment and growth. All of our strategic priorities remain fully in place. With that, I'll turn it over to Paul to discuss the quarterly results in more detail.