Cavco Industries, Inc.

Good day and welcome to the first quarter fiscal year 2026 CAFCO Industries, Inc. earnings call webcast. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be a question and answer session. Instructions will be given at that time. As a reminder, this call may be recorded. I would like to turn the call over to Mark Fussler, Corporate Controller, Head of Investor Relations. Please go ahead.

Good day, and thank you for joining us for Capital Industries' first quarter fiscal year 2026 earnings conference call. During this call, you'll be hearing from Bill Bohr, President and Chief Executive Officer, Allison Aiden, 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. Forward-looking statements include statements about our expected future business and financial performance, and are not promises or guarantees of future performance. They are 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 four looking statements involve risks and uncertainties, which could affect CAFCO'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 CAFCO. For discussion of material risks and important factors that could affect our actual results, please refer to those contained in our filings with the SEC, which are also available on our investor relations website and at sec.gov. This conference call also contains time-sensitive information that is accurate only as to the date of this live broadcast Friday, August 1st, 2025. 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. Now I'd like to turn the call over to Bill Bohr, President and Chief Executive Officer. Bill?

Welcome and thank you for joining us today to review our first quarter results for fiscal 2026. I'm happy to report it was a very strong quarter. Revenue was up 9.5% year over year and 16.6% sequentially. Our operating profit was up about 50% compared to both last quarter and a year ago. All operations contributed to these results, and I'll get into that. Over the last several quarters, we've been executing on a plan to push production up where we have the backlog to support it. Increasing production rates can take some time, so this has been a decision in many of our plants between pressing forward with increases to take advantage of a possible continuation of the positive order trends or holding back out of concern that the trend might not hold in future quarters. We have deliberately chosen to press forward with the confidence of knowing our plants can adjust down if necessary. While uncertainty about future quarter demand remains, this quarter our plan paid off. orders increased, resulting in an essentially flat sequential backlog, even with our increased level of production. Executing this plan resulted in a record of 5,416 homes shipped this quarter. We're often asked about regional differences on these calls, and I feel that in most cases there aren't any headline takeaways. The regions often show differences from quarter to quarter, but they tend to keep pace with each other over time. This quarter I do want to point out that the southeast region did lag the orders with Q1 shipments very slightly below the preceding quarter. Our backlogs in the plants serving the southeast have dropped and we'll need to watch closely to see if we're able to maintain production levels there. We manage this on a plant by plant basis and it just points to the continuing uncertainty in the overall market. Another noteworthy result this quarter was the increase in average selling price. As we've discussed before, there are several factors affecting our ASP. First is the proportion of company shipments that go through our owned retail stores. This quarter, that driver actually had a downward effect on ASP because sales through our stores were relatively flat while wholesale shipments to third parties increased. Next is the mix of single-section to multi-section home ships. We saw that mixed shift toward multi-section homes this quarter, which pushes ASP upward. However, the biggest effect this period was an increase in the average price for both single-section and multi-section homes sold. This is the best approximation for the price of similar products from period to period. So, we saw true price appreciation this quarter after a very long run of very modest declines. Whether this first upward move in a while becomes a trend depends on the direction of industry orders going forward. I don't want to miss the opportunity to point out the strong performance in financial services, which turned a significant loss a year ago into a nice profit this year, driven by better insurance results. It's never fun to explain that bad weather was the cause of poor insurance results. No one likes to hear that reason. This quarter, it's only fair to acknowledge that favorable weather contributed to year-over-year improvement. It's also important to understand that on top of the relatively good weather, we have made very meaningful improvements to our underwriting criteria and policy pricing, which are significantly improving the results under any weather conditions. Our insurance operations have done a fantastic job making sure policies are priced right for their risk, and we expect continuing strong results over time. Shifting topics, a few weeks ago we announced the agreement to purchase American Home Star. The acquisition, which will use approximately $184 million in cash, is expected to close early in our third quarter. As previously discussed, this deal brings with it an opportunity for significant cost reduction, as well as product and retail optimization benefits. Since the announcement, members of our leadership team have had the opportunity to visit many of the American Home Star operations. The introductory visits confirmed what we knew in general and from our due diligence work. This is the first class organization and we continue to be very excited about what they will bring to CAFCO. The American Home Star acquisition, along with ongoing investments throughout our operations, demonstrates the execution of our capital allocation priorities. We also continued our four plus year buyback program, repurchasing $50 million of stock this quarter. Cumulatively, since the initial repurchase authorization in fiscal 2021, we've bought back 16.6% of our outstanding shares. With strong cash flows and a conservative balance sheet, we remain confident that we can repurchase shares without hindering any strategic opportunities. I'll turn it over to Allison to give more detail on the financial results.