Cavco Industries, Inc.

the conference over to your speaker today, Mark Fusler, Director of Financial Reporting and Investor Relations. Please go ahead.

Good day and thank you for joining us for Capco Industries' third quarter fiscal year 2022 earnings conference call. During this call, you'll be hearing from Bill Bohr, President and Chief Executive Officer, Allison Aden, Executive Vice President and Chief Financial Officer, and Paul Bigby, Chief Accounting Officer. 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 Capco'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 CABCO. I encourage you to review CABCO'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, February 4th, 2022. CAPCO undertakes no obligation to revise or update any forelooking statements, whether written or oral, to reflect events or circumstances after the date of this conference call, except as required by law. Now I'd like to turn the call over to Bill Bohr, President and Chief Executive Officer. Bill?

Thank you, Mark. Welcome and thank you everyone for joining us today to review our results for the third quarter of fiscal year 2022. We're very happy to report another record quarter for revenue and earnings. Revenues increased nearly 50% year over year and diluted EPS was $8.57 compared to $2.12 in the year ago quarter. EPS included a large positive impact from non-recurring tax credits, which Allison and Paul will explain in more detail. It's really important to recognize that even excluding that impact, EPS was up about 150% due to outstanding results from our operations. This was a quarter that showed operational gains resulting from improvements set in motion over a long period of time, and we expect to continue that momentum. Our plants achieved a higher production level, and we reached capacity utilization of approximately 80% this quarter. This is in line with our pre-pandemic utilization, and it was accomplished despite persistent labor challenges and supply inefficiencies. The improved throughput is a result of the focused effort across all of our plants to simplify their product offerings, and it's also the result of work underway for some time to improve staffing and retention. The combination of a more stable and higher skilled team and a rationalized product offering is paying off. Our backlog remained consistent with last quarter at $1.1 billion. This represents 36 to 38 weeks of production. You might recall that this is down a few weeks from last quarter, which is purely a function of our higher production rate. The takeaway is that the backlog remains large with continuing strong orders and improving production to meet those orders. On a related point, strong backlogs exist across the industry, so we're not seeing any pressure on wholesale pricing. While our consolidated average selling price is down slightly compared to Q2, this is the result of a number of factors, including the mix of retail and wholesale sales and the addition of Commodore. So, on a same-plant basis, both volume and pricing continued to improve upward during the quarter. I'd like to come back to labor. It would be difficult to say one way or another whether the general availability of labor has really improved at this point. If it has, it's been a modest improvement. However, we have made significant progress, which has directly enabled the operating improvements I've already commented on. While still below target levels, we've been able to increase plant staffing. The improvement we're now seeing is the result of long-term efforts in recruiting, onboarding, learning and development, investment in the workplace, and improved pay and benefits. It's been a very holistic approach that started before the labor disruption of the last 18 to 24 months. Continued progress in staffing and retention will enable even higher levels of productivity. We expect to continue the recent momentum we've seen in our people strategies. Demand for our products remains strong. As we've discussed for some time, demographic housing drivers and the large housing deficit build up over the past 10 to 15 years to provide a very positive demand outlook. These drivers apply particularly to manufactured housing due to the intensifying need for affordable homes. Of course, short-term economic factors impact the industry. However, when you consider the extraordinarily strong demand we've been experiencing for a number of quarters, despite significant home price increases and lengthy backlogs, it really reinforces the growing housing shortfall that exists and the need for what we do. With regard to some of our larger growth investments, we remain on the same schedule previously communicated for starting up the new Glendale, Arizona facility, which will be in the second quarter of this calendar year. To remind folks, Glendale will double our park model capacity while freeing up a line at our Goodyear facility for additional HUD production. We're now one full quarter into the Commodore acquisition. We're very happy with how everything's going. The hardest work comes after a deal closes when transition activities require a lot from everyone involved. And this has certainly been the case over the last quarter. I want to express sincere appreciation to all the folks at Commodore and within Capco who have worked so hard on various aspects of integration. They accomplished a lot in the transition while at the same time staying very focused on the work of getting homes to customers. Commodore's contribution to our volume has been right in line with our expectations this quarter, and their margins are improving as they work off lower-priced homes and their backlog. With that, I'll turn it over to Allison to discuss the quarterly results in more detail.