Cavco Industries, Inc.

Good day and thank you for standing by. Welcome to the second quarter of fiscal year 2026 CAVCO Industries, Inc. Earnings Call Webcast. At this time, all participants are in a listen-only mode. Please be advised that today's conference is being recorded. After the speaker's presentation, there will be a question and answer session. To ask a question, please press star 1-1 on your telephone and wait for your name to be announced. To withdraw your question, please press star 1-1 again. I would now like to hand the conference over to your speaker today, Mark Fusler, Corporate Controller and Investor Relations.

Good day, and thank you for joining us for Capco Industries' second 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. There 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 forward-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 a detailed 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 scc.gov. This conference call also contains time-sensitive information that is accurate only as of the date of this live broadcast, Friday, October 31st, 2025. CAFCO undertakes no obligation to revise or update any forward-looking statements, whether written or oral, to reflect actual 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? Thanks, Mark. Welcome and thank you for joining us today to review our second quarter results for fiscal 2026. We saw focused execution across our operations that led to the strong overall results we're reviewing today. Revenue was up 9.7% year-over-year and flat sequentially. Our operating profit was up about 27% over last year's Q2 and up 3% over last quarter. All operations contributed to these results, as I'll touch on. I want to start by discussing the general market, as there were some notable regional differences. Using published industry data, year-to-date national shipments are up over 3% through August. In many regions, mainly across the northern U.S., year-to-date shipments are up double digits. Recent months continue to show strong year-over-year shipment comparisons in those states and regions. In contrast, last quarter we spoke about the southeast showing some volume risk, and clearly the region did slow in the quarter. Shipments in the area bounded by the Carolinas and Tennessee down to Louisiana and east are down about 4 percent year-to-date, and down 10% in July and August compared to last year. The point being industry shipments are currently showing significant regional differences. Shifting to our operations, in recent quarters we have pushed production across our system knowing we can adjust back if needed. And we did need to slow our southeast production in Q2, and the plants reacted well. That reduction was accomplished through a combination of extended downtime during the 4th of July holiday and production rate reductions where plant backlogs were low. Across that southeast region, we're operating our plants just above last year's pace, while all other regions maintained elevated production rates from Q1 to Q2 and at a significantly higher pace than last year. Pointing out these regional differences is not intended to be alarmist in any way. Sitting here at the end of October, we've seen Backlogs in our plants that serve the southeast stabilize and edge up over the last month. There's nothing systemic we can point to that explains the regional shifts, and we'll keep monitoring and adjusting production to manage appropriate backlogs. On the subject of backlogs overall, we remained at about five to seven weeks. Unit backlog was up slightly quarter to quarter, and as explained, that was the result of selectively pulling back on production. Overall wholesale orders were down just slightly. Turning to average selling price, and I want to really make it clear here that my comments are sequential, not year over year. Our consolidated average selling price was up this quarter. When we separate the various drivers, wholesale prices were essentially flat. Pricing did hold up across the board, including in the southeast, with what I consider to be basically insignificant variation by geography. The significant upward movement in reported ASP was primarily the result of a higher percentage of recognized units from retail, and to a lesser degree, a mixed shift toward multi-section homes. We've seen a few quarters where multi-section homes increased relative to single sections after a string of quarters where it went the other way. We aren't reading too much into that variation at this point. I spent a lot of time noting the relative strength across the northern U.S. in comparison to the southeast because the divergence is noteworthy during a period with continuing market uncertainty. We're making no prediction about forward demand in the southeast at the moment the market seems in balance with manufacturer production. And frankly, there are scenarios that it strengthens and others that it weakens from here. We're comfortable operating in this environment because we've demonstrated the ability to closely monitor and adjust as we did this quarter. I don't want to miss the opportunity to highlight the continuing strong performance in financial services. In the first two quarters, revenue is up about 5%. However, operating profit is up $14 million from a loss last year to an $8 million profit this year. This has been driven by our insurance business. Weather has played a part. but the majority of the increased profitability has resulted from aggressive actions taken to pair unprofitable policies and changes that were made to underwriting and claims management. I want to really acknowledge the insurance operation for the great job they've done, and it's clearly showing in our results. As previously announced, after Q2 ended, we were able to close the American Home Star acquisition. After almost a month together, integration is moving quickly and very well, thanks to the people from both companies who took advantage of the time between the announcement and closing to plan all aspects of integration. The combined company is off to a great start. The commitment to the smooth transition by the American Home Star leadership has been very apparent, and it's made all the difference. And finally, while I have the floor, I can't help but touch on capital allocation. Allison will cover it in more detail. We continued investing in our existing plants. We closed on the American Home Star acquisition immediately after the quarter using cash on hand. And we were able to repurchase $36 million of our common shares. All of this, of course, was enabled by our strong balance sheet and cash generation. And this balanced capital allocation approach will continue going forward. So now I'll turn it over to Alison to give more details on the financial results.