FORM 10-Q
SECURITIES & EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 29, 1995
------------------------------------------------
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
---------------------- ----------------------
Commission File Number 1-9792
--------------------------------------------------------
Cavalier Homes, Inc.
---------------------
(Exact name of Registrant as specified in its charter)
Delaware 63-0949734
- ------------------------------- -------------------------------
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification Number)
Highway 41 North & Cavalier Road, Addison, Alabama 35540
----------------------------------------------------------
(Address of principal executive offices)
(Zip Code)
(205) 747-1575
----------------
(Registrant's telephone number, including area code)
- -------------------------------------------------------------------------------
(Former name, former address and former fiscal year, if changed since last year)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes X No
Indicate the number of shares outstanding of each of the issuer's classes
of common stock, as of the close of the latest practicable date.
Class Outstanding at November 13, 1995
- ------------------------------ ---------------------------------
Common Stock $.10 Par Value 5,978,767 Shares
-1-
<PAGE>
CAVALIER HOMES, INC.
AND SUBSIDIARIES
INDEX
Page No.
Part I. Financial Information (Unaudited)
Consolidated Condensed Balance Sheets -
September 29, 1995 and December 31, 1994 3
Consolidated Condensed Statements of Income -
Thirteen and Thirty-Nine Weeks ended September 29, 1995
and September 30, 1994 4
Consolidated Condensed Statements of Cash
Flows - Thirty-Nine Weeks ended September 29, 1995
and September 30, 1994 5
Notes to Consolidated Condensed Financial Statements 6
Management's Discussion and Analysis of
Financial Condition and Results of Operations 8
Part II. Other Information
Item 6. Exhibits 11
Signatures 12
-2-
<PAGE>
<TABLE>
<CAPTION>
CAVALIER HOMES, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
September 29, December 31,
1995 1994
(Unaudited) (Audited)
<S> <C> <C>
ASSETS
CURRENT ASSETS:
Cash $ 10,330,210 $ 16,034,922
Marketable Securities:
Debt Securities held to maturity 1,415,557 1,956,301
Equity Securities available for sale 2,665,291 1,680,072
Accounts Receivable, less allowance for
losses of $650,000 (1995 and 1994) 20,835,500 2,856,661
Installment contracts receivable - current 575,442 281,310
Inventories 10,921,677 9,734,314
Deferred Income Taxes 3,119,052 2,648,844
Other Current Assets 1,349,685 602,355
------------ ------------
TOTAL CURRENT ASSETS 51,212,414 35,794,779
PROPERTY, PLANT AND EQUIPMENT (Net) 14,873,103 13,194,655
INSTALLMENT CONTRACTS RECEIVABLE, less
allowance for credit loss of $448,715 (1995)
and $350,000 (1994) 15,559,367 9,193,858
GOODWILL, less accumulated amortization of
$276,000 (1995) and $104,000 (1994) 2,196,667 2,368,552
MARKETABLE SECURITIES HELD TO MATURITY - 2,427,526
OTHER ASSETS 957,464 783,265
------------ ------------
$ 84,799,015 $ 63,762,635
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Current portion of long-term debt $ 650,472 $ 378,802
Accounts Payable 12,064,790 6,090,552
Amounts Payable Under Dealer Incentive Programs 6,516,769 4,400,717
Accrued wages and related withholdings 2,726,805 1,463,558
Accrued Incentive Compensation 2,169,519 2,181,301
Estimated Warranties 5,500,000 4,200,000
Accrued Insurance 1,964,969 2,018,357
Other Accrued Expenses 3,660,973 2,201,286
Accrued Income Taxes 1,086,273 284,657
------------ ------------
Total Current Liabilities 36,340,570 23,219,230
DEFERRED INCOME TAXES 999,221 875,868
------------ ------------
LONG-TERM DEBT 4,487,682 3,207,168
------------ ------------
SHAREHOLDERS' EQUITY:
Preferred Stock, $.01 Par Value; Authorized
500,000 shares, none issued
Common Stock, $.10 Par Value; Authorized
15,000,000 shares; issued 5,942,205 (1995)
and 4,715,678 (1994) shares 594,221 471,568
Additional Paid-In Capital 22,442,298 22,053,641
Retained Earnings 19,935,023 13,985,005
Treasury Stock, at cost (20,451 shares) - (49,845)
------------ ------------
TOTAL SHAREHOLDERS' EQUITY 42,971,542 36,460,369
------------ ------------
$ 84,799,015 $ 63,762,635
============ ============
See Notes to Consolidated Condensed Financial Statements
-3-
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
CAVALIER HOMES, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(UNAUDITED)
Thirteen Weeks Ended Thirty-Nine Weeks Ended
September 29, September 30, September 29, September 30,
1995 1994 1995 1994
<S> <C> <C> <C> <C>
REVENUES:
Net sales $ 70,899,435 $ 49,453,380 $ 199,467,672 $ 145,768,484
Financial services 484,287 196,766 1,214,309 447,422
------------ ------------ ------------ ------------
71,383,722 49,650,146 200,681,981 146,215,906
------------ ------------ ------------ ------------
COST OF SALES 58,618,426 42,075,837 166,949,601 124,524,940
SELLING, GENERAL AND ADMINISTRATIVE:
Manufacturing 8,461,532 5,457,496 22,576,383 15,661,122
Financial Services 252,524 145,318 682,407 358,301
------------ ------------ ------------ ------------
67,332,482 47,678,651 190,208,391 140,544,363
OPERATING PROFIT 4,051,240 1,971,495 10,473,590 5,671,543
OTHER INCOME(EXPENSE):
Interest expense:
Manufacturing (1,589) (300) (7,478) (1,168)
Financial services (127,313) (1,441) (376,438) (1,560)
Other, net 268,844 176,602 655,652 332,207
------------ ------------ ------------ ------------
INCOME BEFORE INCOME TAXES 4,191,182 2,146,356 10,745,326 6,001,022
INCOME TAXES 1,712,000 806,330 4,337,000 2,430,000
------------ ------------ ------------ ------------
NET INCOME $ 2,479,182 $ 1,340,026 $ 6,408,326 $ 3,571,022
============ ============ ============ ============
NET INCOME PER SHARE $ 0.40 $ 0.23 $ 1.06 $ 0.71
WEIGHTED AVERAGE SHARES OUTSTANDING 6,205,468 5,818,659 6,053,394 5,020,609
See Notes to Consolidated Condensed Financial Statements
-4-
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
CAVALIER HOMES, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(UNAUDITED)
Thirty-Nine Weeks Ended
September 29, September 30,
1995 1994
<S> <C> <C>
OPERATING ACTIVITIES:
Net income $ 6,408,326 $ 3,571,022
Adjustments to reconcile net income to net
cash used in operating activities:
Depreciation and amortization 1,738,895 1,027,046
Provision for credit losses, repurchase
commitments and other items 98,715 320,348
(Gain)loss on sale of property, plant
and equipment (3,548) (18,128)
Equity in undistributed earnings of
partnership investment (110,818) (171,667)
Changes in assets and liabilities provided(used)
cash, net of effects of acquisition in 1993:
Accounts receivable (17,978,839) (13,959,495)
Inventories (1,187,363) (3,108,003)
Accounts payable 5,974,238 5,086,267
Amounts payable under dealer incentive
programs 2,116,052 1,215,635
Estimated warranties 1,300,000 600,000
Other assets and liabilities 2,469,760 2,715,762
------------ ------------
Net cash used in operating activities 825,418 (2,721,213)
------------ ------------
INVESTING ACTIVITIES:
Proceeds from the sale of property, plant,
and equipment 153,994 26,586
Capital expenditures (3,213,846) (4,856,734)
Distribution from partnership investment 138,356 55,000
Purchases of investment securities (991,246) (5,665,479)
Redemption of debt investment securities 2,950,000 -
Purchases and originations of installment
contracts (7,767,638) (4,754,090)
Principal collected on installment contracts 1,009,282 347,114
------------ ------------
Net cash used in investing activities (7,721,098) (14,847,603)
------------ ------------
FINANCING ACTIVITIES:
Net borrowings under line of credit 2,000,000 -
Payments on long-term debt (447,816) -
Cash dividends (458,308) (228,027)
Net proceeds from issuance of common stock 259,495 12,980,076
Other (162,403) -
------------ ------------
Net cash provided by financing activities 1,190,968 12,752,049
------------ ------------
NET DECREASE IN CASH (5,704,712) (4,816,767)
CASH, BEGINNING OF PERIOD 16,034,922 10,325,137
------------ ------------
CASH, END OF PERIOD $ 10,330,210 $ 5,508,370
============ ============
See Notes to Consolidated Condensed Financial Statements
-5-
</TABLE>
<PAGE>
PART I.
CAVALIER HOMES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
FOR THE THIRTEEN AND THIRTY-NINE WEEK PERIODS ENDED SEPTEMBER 29, 1995
AND SEPTEMBER 30, 1994
1. BASIS OF PRESENTATION
* The accompanying consolidated condensed financial statements have been
prepared in compliance with Form 10-Q instructions and thus do not include all
of the information and footnotes required by generally accepted accounting
principles for complete financial statements. In the opinion of the Company,
these statements contain all adjustments necessary to present fairly the
Company's financial position as of September 29, 1995, and the results of its
operations for the thirteen and thirty-nine week periods ended September 29,
1995 and September 30, 1994 and its cash flows for the thirteen and thirty-nine
week periods ended September 29, 1995 and September 30, 1994. All adjustments
are of a normal recurring nature.
* The results of operations for the thirteen and thirty-nine weeks ended
September 29, 1995, are not necessarily indicative of the results to be expected
for the full year.
* Inventories consist primarily of raw materials and are stated at the
lower of cost (first-in, first-out method) or market.
* The Company accounts for its marketable investment securities in
accordance with the provisions of Statement of Financial Accounting Standard No.
115, Accounting for Certain Investments in Debt and Equity Securities.
Marketable debt securities to be held until maturity are recorded at amortized
cost. Equity securities available for sale are stated at fair value.
* Certain amounts from the 1994 period have been reclassified to conform to
the 1995 period presentation. These reclassifications had no effect on results
of operations or shareholders' equity.
* Net income per share is computed by dividing net earnings by the weighted
average number of shares of common stock outstanding during the thirteen week
periods after giving effect to the equivalent shares which are issuable upon the
exercise of stock options determined by the treasury stock method.
2. SUPPLEMENTAL CASH FLOW DISCLOSURES Thirty-Nine Weeks Ended
September 29, September 30,
1995 1994
Cash paid for: Interest $ 383,916 $ 2,728
Income taxes $ 3,536,337 $ 1,308,552
3. CREDIT ARRANGEMENTS
* In February 1994, the Company executed a $13 million revolving, warehouse
and term-loan agreement (the "Credit Facility") with its primary lender. The
Credit Facility contains a revolving line of credit which provides for
borrowings (including letters of credit) of up to 80% and 50% of the Company's
eligible (as defined) accounts receivable and inventories, respectively, up to a
maximum of $5 million. Interest is payable under the revolving line of credit at
the bank's prime rate (8.75% at September 29, 1995).
The Credit Facility also provides for borrowings of up to 80% of eligible
(as defined) installment sale contracts held by Cavalier Acceptance Corporation
("CAC"), the Company's wholly owned financing subsidiary, up to a maximum of $8
million. Under the warehouse component of the Credit Facility, interest is
payable at the bank's prime rate plus 1%. Amounts advanced under the warehouse
facility may be converted to a series of $2 million notes with a term of seven
years. Interest on term notes is fixed for a period of five years from issuance
at a rate based on the weekly yield on treasury securities adjusted to a
constant maturity of five years, averaged over the preceding 13 weeks, plus
2.4%, and floats for the remaining two years at a rate (subject to certain
limits) equal to the bank's prime rate plus 0.75%.
-6-
<PAGE>
PART I.
CAVALIER HOMES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
FOR THE THIRTEEN AND THIRTY-NINE WEEK PERIODS ENDED SEPTEMBER 29, 1995
AND SEPTEMBER 30, 1994
3. CREDIT ARRANGEMENTS - Continued
The Credit Facility contains certain restrictive covenants which limit the
aggregate of dividend payments and purchases of treasury stock to 50% of
consolidated net income for the two most recent years. Amounts outstanding under
the Credit Facility are secured by the accounts receivable and inventories of
the Company, loans purchased and originated by CAC and the capital stock of
certain of the Company's consolidated subsidiaries.
As of September 29, 1995, the Company had $5,138,154 borrowed under this
credit facility.
4. STOCKHOLDERS' EQUITY
* A five-for-four stock split of the Company's common stock which was
effected in the form of a 25% stock dividend was distributed on August 15, 1995
to shareholders of record on July 31, 1995. All historical dividends and
earnings per share amounts have been adjusted for the stock split.
* A cash dividend of $.030 per share was paid on August 15, 1995 and of
$.024 per share was paid on May 15, 1995 and February 15, 1995, and of $.016 per
share was paid on November 15, 1994, August 15, 1994, and May 16, 1994, to
shareholders of record on July 31, 1995, April 30, 1995, January 31, 1995,
October 31, 1994, July 29, 1994, and April 28, 1994, respectively.
5. COMMITMENTS AND CONTINGENCIES
* It is customary practice in the manufactured housing industry to enter
into repurchase and other recourse agreements with lending institutions which
have provided wholesale floor plan financing to dealers. Substantially all of
the Company's sales are made pursuant to these agreements with dealers located
primarily in the Southeastern portion of the United States. These agreements
generally provide for repurchase of the Company's products from the lending
institutions for the balance due them in the event of repossession upon a
dealer's default. Although the Company is contingently liable for approximately
$64 million under these agreements as of September 29, 1995, such contingency is
reduced by the resale value of the homes which are required to be repurchased.
The Company has provided an allowance for losses of $650,000 at September 29,
1995, based on prior experience and current market conditions. Management
expects no material loss in excess of the allowance.
* The Company's workmen's compensation, product liability and general
liability insurance coverages are provided under incurred loss, retrospectively
rated premium plans. Under these plans, the Company incurs insurance expenses
based upon various rates applied to current payroll costs and sales. Annually,
such insurance expenses is adjusted by the carrier for loss experience factors
subject to minimum and maximum premium calculations. At September 29, 1995, the
Company is contingently liable for future retrospective premium adjustments up
to a maximum of $4,900,000 in the event that additional losses are reported
related to prior periods. The Company has recorded an estimated liability of
approximately $975,000 related to such incurred but not reported claims at
September 29, 1995. Management expects no material loss in excess of this
allowance.
* The Company and certain of its equity partners have jointly and severally
guaranteed certain short-term debt with a balance of $1,300,000 at September 29,
1995, of a partnership in which the Company owns a 33% interest.
* The Company is engaged in various litigation which is routine in nature
and in management's opinion, will have no material adverse effect on the
Company's financial statements.
-7-
<PAGE>
PART I.
CAVALIER HOMES, INC. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
September 29, 1995
GENERAL
The principal business of the Company since its inception has been the design
and production of manufactured homes. In early 1992, the Company, through its
wholly owned subsidiary Cavalier Acceptance Corporation("CAC"), commenced retail
installment sale financing operations. The operations of CAC are significant
enough to require segment reporting by the Company.
The Company's business is cyclical and seasonal and is influenced by many of the
same national and regional demographic factors that affect the general United
States housing market. According to industry statistics, after a ten year low in
shipments of homes in 1991, the industry has recovered significantly posting
increases in shipments of 24%, 21% and 20% for 1992, 1993 and 1994,
respectively, as compared to the prior year. Industry statistics for the first,
second and third quarters of 1995 indicate a continued trend in the increase of
shipments, although at slower pace than previous years. The Company attributes
the upturn in the manufactured housing industry to increased consumer
confidence, wider acceptance of manufactured housing, a reduction in the
availability of alternative housing, increased availability of consumer
financing and an improvement in the overall economy.
Accordingly, as business conditions have improved the Company has expanded its
manufacturing operations to increase and improve its capacity. During 1993 the
Company acquired Homestead Homes, Inc. in February and opened an additional
manufacturing facility in Addison, Alabama in May. During 1994 the Company
opened a manufacturing facility in Winfield, Alabama in May, opened a
manufacturing facility in Fort Worth, Texas in July and acquired Astro Mfg. Co.,
Inc. in October.
RESULTS OF OPERATIONS
Net Sales. For the quarter ended September 29, 1995 net sales were $70.9
million, representing a 43% increase compared to the third quarter of 1994's net
sales of $49.5 million. Net sales for the current quarter were the highest for
any quarter in the Company's history. For the thirty-nine weeks ended September
29, 1995 net sales were $199.5 million, representing a 37% increase over the
comparable thirty-nine weeks period in 1994 of $145.8 million. The Company
believes that the significant increase in its sales for the periods was
primarily the result of the continuation of improving industry trends, combined
with aggressive marketing programs instituted by the Company in prior periods
and the increase in manufacturing capacity during the current year period.
Actual shipments of homes in the third quarter of 1995 increased 28% to 3,061
homes from 2,385 homes shipped in the third quarter of 1994. Shipments of homes
in the thirty-nine weeks ended September 29, 1995 increased 22% to 8,769 homes
as compared to 7,185 for the comparable period of 1994.
Gross Profit on Sales. Gross profit (derived by deducting cost of sales from net
sales) increased to $12.3 million, or 17.3% of net sales for the third quarter
of 1995, compared to $7.4 million, or 14.9% of net sales for the same period
last year. Gross profit for the thirty-nine weeks ended September 29, 1995
increased to $32.5 million compared to $21.2 million for the same period last
year. The gross profit for the thirty-nine weeks ended September 29, 1995 and
September 30, 1994 represented 16.3% and 14.4% of sales, respectively. The
increase in gross profit was primarily attributable to the increased sales
volume for the periods made possible by increased manufacturing capability and a
reduction of expenses associated with the start-up of manufacturing facilities
from the previous year, combined with a decline in certain raw material costs
during the third quarter of 1995.
-8-
<PAGE>
PART I.
CAVALIER HOMES, INC. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
September 29, 1995
Financial Services Revenue. Financial services revenue (derived primarily from
interest on installment contracts held by CAC) was approximately $484,000 for
the quarter ended September 29, 1995 as compared to approximately $197,000 for
the same period last year. Financial services revenue for the thirty-nine weeks
ended September 29, 1995 was approximately $1,214,000 compared to approximately
$447,000 for the same period last year. The increase in financial services
revenue was primarily due to an increase in the Company's loan portfolio (net of
allowance for credit losses) to approximately $16.1 million at the end of the
third quarter of 1995, compared to $7.2 million at the end of the third quarter
of 1994.
Selling, General, and Administrative. Selling, general and administrative
expense increased to approximately $8.7 million for the third quarter of 1995,
or 12.2% of total revenues, compared to approximately $5.6 million, or 11.3% of
total revenues, for the same period last year. Selling, general and
administrative expense increased to approximately $23.3 million for the
thirty-nine weeks ended September 29, 1995 or 11.6% of total revenues, as
compared to approximately $16.0 million, or 11.0% of total revenues for the same
period last year. The increase in selling, general and administrative expense
was primarily attributable to the increase in sales, combined with increased
expenses due to additional personnel, the opening of additional manufacturing
facilities and increased administrative expenses of CAC consistent with its
growth.
Net Income. Net income for the third quarter of 1995 was approximately $2.48
million, an increase of 85% over the same period in 1994 when net income was
approximately $1.34 million. Net income for the thirty-nine weeks ended
September 30, 1995 was approximately $6.41 million, an increase of approximately
79% over the same period in 1994 when net income was $3.57 million. The increase
in net income was primarily due to increased sales. Net income per share for the
third quarter of 1995 and the thirty-nine weeks ended September 29, 1995 was
$.40 per share and $1.06 per share respectively, compared to $.23 per share and
$.71 per share (adjusted for the five-for-four stock split distributed in August
of 1995) for the respective comparable periods of 1994.
LIQUIDITY AND CAPITAL RESOURCES
As of September 29, 1995, the Company had working capital of $14.9 million, as
compared to $13.9 million as of December 31, 1994. The increase in working
capital is primarily due to continued strength in earnings for the period,
combined with long-term borrowings under the Credit Facility and the reporting
of certain investment securities as current assets as their respective
maturities become one year or less. The ratio of current assets to current
liabilities was 1.4:1 as of September 29, 1995, and 1.5:1 as of December 31,
1994. The Company had long-term debt of $4,487,682 as of September 29, 1995 and
$3,207,168 as of December 31, 1994 as a result of borrowings under the Company's
Credit Facility. The Company had a long-term debt to equity ratio of 1:10 as of
September 29, 1995 as compared to 1:9 as of December 31, 1994.
The Company's primary business segment is the production and sale of
manufactured housing. In 1992, the Company began the operations of CAC to fund
installment sale contracts to the retail customers of the Company's Independent
Exclusive Dealers. Consistent with the intention of the Company to expand
further the operations of CAC, the Company entered into a Credit Facility with
its primary lender (see footnote 3 to the Consolidated Condensed Financial
Statements included herein) to provide additional funds for CAC's growth. As of
September 29, 1995, the Company's portfolio of installment sale contracts had
grown to approximately $16 million and had been funded primarily from proceeds
received from the public offering of the Company's common stock during 1994
together with internally generated working capital and borrowings under the
Credit Facility.
-9-
<PAGE>
PART I.
CAVALIER HOMES, INC. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
September 29, 1995
On October 14, 1994 and January 31, 1995 the Company borrowed $3.7 million and
$2.0 million, respectively, under the Credit Facility in order to continue to
fund the operations of CAC and to minimize the interest rate risk of the
Company's loan portfolio. The Company expects to continue to borrow funds under
the Credit Facility to finance the continuing operations and growth of CAC. As
the operations of CAC continue to expand the Company anticipates that it will be
able to increase its borrowing capacity under the Credit Facility.
The term of the Credit Facility, which is renewable annually, was due to expire
in February 1995 but has been extended until December 31, 1995. Although the
Company intends to renew the Credit Facility and anticipates an increase in the
credit available to the Company thereunder, there can be no assurance that the
Credit Facility will be renewed or that additional financing will be available
on terms acceptable to the Company.
The Company's capital expenditures were approximately $3.2 million for the
thirty-nine weeks ended September 29, 1995 as compared to $4.9 million for the
comparable period of 1994. Capital expenditures during these periods included
normal property, plant and equipment additions and replacements and the
expansion and modernization of certain of the Company's manufacturing
facilities.
The Company believes that existing cash and investment balances and funds
available under the Credit Facility, together with cash provided by operations,
should be adequate to fund the Company's operations and expansion plans for the
next twelve months; however, in order to provide additional funds for continued
pursuit of the Company's growth strategies and for operations, the Company may
incur, from time to time, additional short and long-term bank indebtedness and
may issue, in public or private transactions, its equity and debt securities,
the availability and terms of which may depend upon market and other conditions.
There can be no assurance that such possible additional financing will be
available on terms acceptable to the Company.
-10-
<PAGE>
PART II.
CAVALIER HOMES, INC. AND SUBSIDIARIES
OTHER INFORMATION
September 29, 1995
ITEM 6 EXHIBITS
The exhibits required to be filed with this report are listed below.
The Company will furnish upon request the exhibit listed upon the
receipt of $15.00 per exhibit, plus $.50 per page, to cover the
cost to the Company of providing the exhibit.
(a) (11) Computation of Net Income per Common Share.
(27) Article 5 - Financial Data Schedule for Form 10-Q
submitted as Exhibit 27 as an EDGAR filing only.
(b) The Company did not file a Current Report on Form 8-K
during the quarter for which this report was filed.
-11-
<PAGE>
PART II.
CAVALIER HOMES, INC. AND SUBSIDIARIES
OTHER INFORMATION
September 29, 1995
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Cavalier Homes, Inc.
Registrant
Date: November 13, 1995 /s/ Jerry F. Wilson
Jerry F. Wilson - President
Date: November 13, 1995 /s/ David A. Roberson
David A. Roberson -
Chief Financial Officer
-12-
<PAGE>
<TABLE>
<CAPTION>
PART II. - EXHIBIT 11
CAVALIER HOMES, INC. AND SUBSIDIARIES
COMPUTATION OF NET INCOME PER COMMON SHARE
Thirteen Weeks Ended Thirty-Nine Weeks Ended
September 29, September 30, September 29, September 30,
1995 1994 1995 1994
<S> <C> <C> <C> <C>
PRIMARY AND FULLY DILUTED
Net Income $ 2,479,182 $ 1,340,026 $ 6,408,326 $ 3,571,022
============ ============ ============ ============
SHARES:
Primary
Average common shares outstanding 5,905,725 5,653,589 5,883,420 4,820,730
Dilutive effect if stock options
were exercised 219,627 165,070 135,467 199,879
------------ ------------ ------------ ------------
Average common shares outstanding
as adjusted (primary) 6,125,352 5,818,659 6,018,887 5,020,609
============ ============ ============ ============
Fully Diluted
Average common shares outstanding 6,125,352 5,818,659 6,018,887 5,020,609
Additional dilutive effect if
stock options were excercised
(fully) 80,116 - 34,507 -
------------ ------------ ------------ ------------
Average common shares outstanding
as adjusted (fully diluted) 6,205,468 5,818,659 6,053,394 5,020,609
============ ============ ============ ============
Primary and Fully Diluted Net
Income per Common Share $ 0.40 $ 0.23 $ 1.06 $ 0.71
============ ============ ============ ============
-13-
<PAGE>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 789863
<NAME> CAVALIER HOMES, INC.
<MULTIPLIER> 1
<CURRENCY> U.S. DOLLARS
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JUL-01-1995
<PERIOD-END> SEP-29-1995
<EXCHANGE-RATE> 1
<CASH> 10,330,210
<SECURITIES> 4,080,848
<RECEIVABLES> 21,485,500
<ALLOWANCES> 650,000
<INVENTORY> 10,921,677
<CURRENT-ASSETS> 51,212,414
<PP&E> 20,932,469
<DEPRECIATION> 6,059,366
<TOTAL-ASSETS> 84,799,015
<CURRENT-LIABILITIES> 36,340,570
<BONDS> 0
<COMMON> 594,221
0
0
<OTHER-SE> 42,377,321
<TOTAL-LIABILITY-AND-EQUITY> 84,799,015
<SALES> 70,899,435
<TOTAL-REVENUES> 71,383,722
<CGS> 58,618,426
<TOTAL-COSTS> 58,618,426
<OTHER-EXPENSES> 8,714,056
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 128,902
<INCOME-PRETAX> 4,191,182
<INCOME-TAX> 1,712,000
<INCOME-CONTINUING> 2,479,182
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 2,479,182
<EPS-PRIMARY> 0.400
<EPS-DILUTED> 0.400
</TABLE>