Cavco Industries, Inc.

Thank you for standing by. Welcome to the CAFCO Industries, Inc.'s first quarter fiscal year 2027 earnings call and webcast. At this time, all participants are in 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 11 on your telephone. If your question has been answered and you'd like to remove yourself from the queue, simply press star 11 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 first quarter fiscal year 2027 earnings conference call. During this call, you'll be hearing from Bill Boor, President and Chief Executive Officer, Allison Aden, Executive Vice President and Chief Financial Officer, and Paul Bigbee, 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 or 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 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 four looking statements made by or on behalf of CAFCO. For discussion of material risks and important focus factors that could affect our actual results, please refer to these contained in our statements and filings with the SEC which are also available on our investor relations website and at suc.gov. This conference call also contains time-sensitive information that is accurate only as of the date of this live broadcast, Friday, July 31st, 2026. CAPCO undertakes no obligation to revise or update any forward-looking 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 Boor, President and Chief Executive Officer. Bill?

Thanks, Mark. Welcome and thank you for joining us today to review our first quarter results for fiscal 2027. It's only been about two months since our year-end call in late May when we told you that March had showed a big pickup in orders and there was an associated backlog increase. The good news is that that order momentum has carried through the first quarter, and even with sequential shipments being up 13%, our backlog still grew more than 50% from last quarter's ending level. Sequential orders were up double digits in every region, and as a result, backlogs grew significantly across the country as well. The Q1 backlog is also 50% higher than a year ago, and last year it was declining rather than growing. Shipment improvement across the country led to a quarterly record of 5,657 units. Our production increases resulted in capacity utilization of 75%, Still significantly below levels were able to sustain, so there remains significant room to reach higher volume levels, assuming strong orders persist. This is the first quarter in our history that revenue exceeded $600 million. It was up about 10%, both sequentially and year over year. So just to conclude on these points, we raised production and shipments significantly and still saw a large increase in orders and backlogs, both sequentially and year over year. Factory-built gross margin dropped 40 basis points from last quarter, driven by two factors. Part of the downward pressure came from increased costs in manufacturing. The other factor was related to retail pricing. Wholesale pricing to independents remained generally stable across all regions, so that was not the driver. However, in our company-owned retail markets, which are concentrated in the Texas area, we saw increased price competition. and these lower retail prices contributed to the sequential gross margin decline. We do continue to see higher retail traffic in Texas but closing rates declined. This indicates that demand is good but competition for qualified buyers intensified during the quarter. Shifting to financial services, as reported last quarter, we have found reliable purchasers of meaningful loan volume, which has enabled a nice improvement in loan origination and sales. This quarterly origination growth met our expectations and we anticipate we will be able to grow loan sales into future periods. Separately, while the first quarter is a seasonally higher insurance claims quarter, that operation continued their strong performance and exceeded our profit expectations. The favorable insurance claims results over the past couple years have resulted in lower reinsurance costs as well. Very recently, we also received important outside confirmation of the strong insurance performance and trajectory when AMBEST moved to a positive outlook for our financial strength and issuer credit ratings. Shifting to capital allocation, our strong cash generation enabled us to continue investing and plan expansions and strategic projects while still repurchasing another $30 million of company stocks. In a little over five years since we began our buybacks, we have now deployed over $600 million in repurchases with the objective of maintaining a responsible balance sheet. Over 19% of our outstanding shares have been bought back through this return of capital to our shareholders. And we finished the quarter with a healthy $243 million of unrestricted cash. Finally, a few weeks ago, the Road to Housing Act became law. The bipartisan support for the new law and the prominence of manufactured housing elements within it are indicative of the growing awareness that our industry is an in-place solution to the affordable housing shortage in our country. The benefits of this law will show themselves over time as we are able to place innovative home designs in urban and suburban locations with improved market acceptance, appropriate regulations and better support for our homebuyers' funding needs. As I've commented in the past, pay attention to what's happening at the state level as well, where more states are engaged in lowering unnecessary barriers to our homes being placed where they are needed. Now I'll turn it over to Allison to give more details on the financial results.