Cavco Industries Inc. Files 10-K Report
Cavco Industries Inc., a leading builder of manufactured housing and recreational park trailers, has filed its annual report on form 10-K with the Securities and Exchange Commission (SEC) for the period ended March 31.
Highlight of Business Operations:
Fleetwood Homes, through its wholly-owned subsidiary, Palm Harbor Homes Inc., entered into an agreement with Palm Harbor Homes Inc., a Florida corporation, and certain of its subsidiaries to purchase substantially all of the assets and assume specified liabilities of Palm Harbor, pursuant to an auction process under Section 363 of the U.S. Bankruptcy Code.
On March 1, 2011, Acquisition Co. was selected as the successful bidder in the court auction and Acquisition Co. completed the purchase of the Palm Harbor assets and the assumption of specified liabilities pursuant to the Amended and Restated Asset Purchase Agreement dated March 1, 2011. The effective date of the transaction was April 23, 2011. The aggregate gross purchase price was $83.9 million and is exclusive of transaction costs, specified liabilities assumed and post-closing adjustments.
Of the purchase price, (i) approximately $45.3 million was used to retire the Debtor-In-Possession loan previously made by Fleetwood Homes to Palm Harbor; and (ii) $13.4 million was deposited in escrow pending regulatory approval to transfer the stock of Standard Casualty Co. (a subsidiary of Palm Harbor) to Acquisition Co., at which time the escrowed funds will be released to the Palm Harbor estate. The purchase price was funded by Fleetwood Homes’ cash on hand, along with equal contributions of $36 million each from the Company and Third Avenue.
During fiscal year 2011, our average wholesale sales price for a home was approximately $35,000, excluding delivery. Retail sales prices of our HUD code homes, without land, generally range from $23,000 to more than $153,000, depending upon size, floorplan, features and options. Many of the homes we produce are sold in retail transactions covering both the home and the land on which it is placed.
At March 31, 2011, we had a backlog of home orders of approximately $5.9 million, compared to a backlog of $5.4 million at March 31, 2010. Retailers may cancel orders prior to production without penalty. After production of a particular home has commenced, the order becomes noncancelable and the retailer is obligated to take delivery of the home.
Accordingly, until production of a particular home has commenced, we do not consider our order backlog to be firm orders. Because of the seasonality of the housing market, the level of our order backlog historically declines during the winter months.
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