Cavco Industries, Inc.

Standing by and welcome to the CAFCO Industries fourth quarter 2026 earnings call and webcast. 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 this session, you'll need to press star 1-1 on your telephone. If your question has been answered and you'd like to remove yourself from the queue, simply press star 1-1 again. As a reminder, today's program is being recorded. And now I'd like to introduce your host for today's program, Mark Fusler, Corporate Controller and Investor Relations.

Please go ahead, sir. Good day, and thank you for joining us for Capco Industries' fourth quarter fiscal year 2026 earnings conference call. During this call, you'll be hearing from Bill Board, 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 future and expected business and financial performance and are not promises or guarantees of future performance. There are 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 CAPCO. 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 of the date of this live broadcast, Friday, May 22, 2026. CAFCO undertakes no obligation to revise or update any board-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 Boer, President and Chief Executive Officer. Bill?

Welcome and thank you for joining us today to review our fourth quarter results for fiscal 2026. I want to take a few minutes to talk about the fiscal year and then we'll get into the fourth quarter discussion. The headline is that in a year in which total industry HUD shipments were down slightly, we hit an all-time high of 20,842 homes shipped. Operating income was up 14%, excluding a $10 million non-cash write-off last year. In the broader picture, our peak-to-peak ability to deliver homes is up significantly due to the continuous improvement in our plants, the major plant modernization projects we've completed in recent years, and the acquisition of American Home Star. And as I'll touch on in a moment, this time last year our backlogs were declining going into Q1, while this year they're increasing. In fiscal 26, we also continued a multi-year strategy to transform how we go to market. We build on our unified branding under the CAFCO name by rolling out our nationwide product line framework in Q4, which makes it much easier for potential buyers to shop our homes and for our dealer partners to help those customers find the homes that best fit their needs. We believe these advancements that began several years ago with a redesign of digital marketing have significantly improved our position and will contribute to market share growth In an industry, we also expect to be growing in the coming years. Turning to the quarter, sequential revenue was down 5%, and operating income was down 6%. However, both were up compared to last year by 8% and 33% respectively. Again, last year's quarter had a $10 million intangible write-down, so excluding that, this year the quarter operating profit was up about 6% year over year. While Q4 weather is expected to be challenging across the northern U.S., this quarter got off to a slow start with unusual weather across the southern states. We lost production days and market time in January and early February. Our capacity utilization for the quarter was approximately 70% and our production pace was generally in balance with orders through most of the quarter. We then saw a large pickup in wholesale orders in March which expanded backlogs late in the quarter. The order pickup was big enough that we finished the quarter with almost 25% more floors in the backlog than when we started it. And we finished with five to seven weeks of backlog, which again was growing as we closed out the quarter. Average selling price was down about 2% sequentially. If we break that apart, our company-owned retail sales were healthy, but down from a very strong third quarter. This decrease in the percentage of our integrated sales coupled with a mixed shift towards single-section homes accounted for the sequential ASP drop. Product pricing was essentially flat. We feel good about what we're seeing with retail traffic, wholesale orders, and backlog growth. The combination of these three positive signals gives us the opportunity to push some production where lower backlogs had been holding our plants back. Touching on American Home Star, we're through a lot of the operational integration with most of the work ahead focused on systems integration. As we reported last quarter, our internal view of tangible cost synergies had increased from our deal assumptions and was in excess of $10 million annually. That view still holds, and in Q4, we were already very close to that pace. We still see more opportunity ahead to exceed $10 million, mostly in SG&A and additional purchasing savings. In financial services, both the lending and insurance operations contribute to another strong quarter. We reached a new agreement with a purchaser of home-only loans that allowed us to ramp up originations and sell some loans off the balance sheet. The investor agreement will enable us to continue ramping loan originations and sales going forward. In insurance, we had continued strong results from a combination of underwriting changes we've talked about in previous quarters and continued favorable claims experience. Now, shifting back to manufacturing, I want to touch on the press release we issued Wednesday evening announcing that we broke ground on a new plan in the fourth quarter. This decision is part of an overall Southwest operations strategy to create growth and optionality in the region. It will be a high-capacity, state-of-the-art plan here in the Phoenix area with one line initially and the infrastructure in place for a second line in the future. We have been very consistent in our strong conviction about the growing role of factory-built housing in meeting the supply needs of the nation and in our capital allocation approach. We're confident this is a solid investment that will enable us to expand our selling area in the Southwest. We're expecting the Cavco El Mirage plant to be operational in mid-calendar year 2027. Continuing on the topic of capital allocation, strong cash generated by operations enabled us to deploy over $360 million in the fiscal year. We continued our share repurchases during the quarter with another 30 million used to buy back company stock. For the year, we completed $160 million of share repurchases. We also invested $173 million to acquire American Home Star, and an additional $35 million to expand and modernize our existing plants. And we finished the year with a healthy unrestricted cash balance of $237 million. Finally, I want to comment briefly on the legislation passed by the House this week by a 396 to 13 vote. The prominence of American housing in the bill demonstrates the bipartisan awareness of the critical role our homes need to play in resolving the housing supply crisis. Various parts of the bill enable product innovation, reduce regulatory confusion, improve consumer and commercial funding availability, and encourage zoning improvement. I feel I've had a front row seat to watch this work develop over the last several years, and I want to acknowledge our industry association leaders at MHI who worked over a long period of time first to increase awareness of our solutions in D.C., and then ensure the legislation itself protected and enhanced the industry's ability to make more homes. As you'd expect, there were potential traps in the process, and the folks at MHI were masterful working through it all. It's expected that this bill will be approved by the Senate, and the White House has already issued a statement of support. The benefits will take time to fully develop, but they are real and they will be impactful. Now I'll turn it over to Allison to give more details on the financial results.