SECURITIES & EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended March 29, 1996
--------------
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
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(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 May 10, 1996
- ------------------------------- -------------------------------
Common Stock $.10 Par Value 9,320,240 Shares
<PAGE>
CAVALIER HOMES, INC. AND SUBSIDIARIES
INDEX
Page No.
Part I. Financial Information (Unaudited)
Consolidated Condensed Balance Sheets -
March 29, 1996 and December 31, 1995 3
Consolidated Condensed Statements of Income -
Thirteen Weeks ended March 29, 1996 and
March 31, 1995 4
Consolidated Condensed Statements of Cash
Flows - Thirteen Weeks ended March 29, 1996 and
March 31, 1995 5
Notes to Consolidated Condensed Financial Statements 6
Management's Discussion and Analysis of
Financial Condition and Results of Operations 9
Part II. Other Information
Item 6. Exhibits 12
Signatures 13
<PAGE>
CAVALIER HOMES, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
<TABLE>
<S> <C> <C>
March 29, December 31,
1996 1995
ASSETS (Unaudited) (Audited)
CURRENT ASSETS:
Cash and cash equivalents $ 5,627,000 $ 21,005,084
Marketable securities available for sale 3,328,000 3,583,129
Accounts receivable, less allowance for
losses of $750,000 (1996 and 1995) 21,239,000 1,893,400
Installment contracts receivable - current 729,000 693,967
Inventories 12,502,000 9,540,491
Deferred income taxes 3,648,000 3,647,984
Other current assets 1,168,000 1,954,350
-------------- --------------
Total current assets 48,241,000 42,318,405
PROPERTY, PLANT AND EQUIPMENT (Net) 21,727,000 18,893,497
INSTALLMENT CONTRACTS RECEIVABLE, less
allowance for credit loss of $578,000 (1996)
and $551,188 (1995) 21,049,000 17,964,038
GOODWILL, less accumulated amortization of
$377,000 (1996) and $309,729 (1995) 3,658,000 2,213,000
OTHER ASSETS 1,287,000 1,236,958
-------------- --------------
$ 95,962,000 $ 82,625,898
============== ==============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Current portion of long-term debt $ 776,000 $ 666,467
Accounts payable 12,350,000 7,098,602
Amounts payable under dealer incentive programs 6,454,000 6,997,496
Accrued wages and related withholdings 2,860,000 1,219,891
Accrued incentive compensation 2,020,000 2,018,702
Estimated warranties 6,500,000 5,800,000
Accrued insurance 1,774,000 1,676,164
Other accrued expenses 4,725,000 4,923,839
Accrued income taxes 2,236,000 795,861
-------------- --------------
Total current liabilities 39,695,000 31,197,022
DEFERRED INCOME TAXES 1,223,000 1,042,862
LONG-TERM DEBT 5,026,000 4,314,319
STOCKHOLDERS' EQUITY:
Preferred stock, $.01 par value; authorized
500,000 shares, none issued
Common stock, $.10 par value; authorized
15,000,000 shares; issued 9,159,104 (1996)
and 8,993,951 (1995) shares 916,000 899,395
Additional paid-in capital 24,134,000 22,804,129
Retained earnings 24,968,000 22,368,171
-------------- --------------
Total stockholders' equity 50,018,000 46,071,695
-------------- --------------
$ 95,962,000 $ 82,625,898
============== ==============
See Notes to Consolidated Condensed Financial Statements
</TABLE>
<PAGE>
CAVALIER HOMES, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(UNAUDITED)
<TABLE>
<S> <C> <C>
Thirteen Weeks Ended
March 29, March 31,
1996 1995
REVENUES:
Net sales $ 74,784,000 $ 57,813,549
Financial services 620,000 333,638
-------------- --------------
75,404,000 58,147,187
-------------- --------------
COST OF SALES 61,813,000 48,842,637
SELLING, GENERAL AND ADMINISTRATIVE:
Manufacturing 8,657,000 6,680,576
Financial services 359,000 189,277
-------------- --------------
70,829,000 55,712,490
-------------- --------------
OPERATING PROFIT 4,575,000 2,434,697
-------------- --------------
OTHER INCOME(EXPENSE):
Interest expense:
Manufacturing (16,000) (1,406)
Financial services (116,000) (115,875)
Other, net 335,000 209,184
-------------- --------------
203,000 91,903
-------------- --------------
INCOME BEFORE INCOME TAXES 4,778,000 2,526,600
-------------- --------------
INCOME TAXES 1,907,000 1,009,000
-------------- --------------
NET INCOME $ 2,871,000 $ 1,517,600
============== ==============
NET INCOME PER SHARE $ 0.30 $ 0.17
============== ==============
WEIGHTED AVERAGE SHARES OUTSTANDING 9,594,526 8,944,562
============== ==============
</TABLE>
See Notes to Consolidated Condensed Financial Statements
<PAGE>
CAVALIER HOMES, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(UNAUDITED)
<TABLE>
<S> <C> <C>
Thirteen Weeks Ended
March 29, March 31,
1996 1995
OPERATING ACTIVITIES:
Net income $ 2,871,000 $ 1,517,600
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization 860,000 580,917
Provision for credit losses, repurchase commitments and other items 26,000 21,569
(Gain)loss on sale of property, plant and equipment (4,000) (9,711)
Equity in undistributed earnings of partnership investment (142,000) (46,159)
Changes in assets and liabilities provided(used) cash, net of effects of
acquisition in 1996:
Accounts receivable (18,665,000) (12,766,248)
Inventories (2,032,000) (1,638,255)
Accounts payable 4,547,000 3,070,776
Amounts payable under dealer incentive programs (652,000) (1,345,306)
Estimated warranties 330,000 400,000
Other assets and liabilities 2,011,000 1,236,913
-------------- --------------
Net cash used in operating activities (10,850,000) (8,977,904)
-------------- --------------
INVESTING ACTIVITIES:
Proceeds from the sale of property, plant and equipment 28,000 25,700
Net cash paid in connection with acquisition of a subsidiary (478,000) -
Capital expenditures (1,481,000) (1,200,389)
Distribution from partnership investment 194,000 138,356
Purchases of marketable securities - (991,246)
Redemptions of marketable securities 250,000 -
Purchases and originations of installment contracts (3,720,000) (2,471,098)
Principal collected on installment contracts 574,000 187,264
-------------- --------------
Net cash used in investing activities (4,633,000) (4,311,413)
-------------- --------------
FINANCING ACTIVITIES:
Long-term borrowings - 2,000,000
Payments on long-term debt (279,000) (147,073)
Cash dividends (271,000) (140,857)
Net proceeds from issuance of common stock 655,000 3,999
Other - (9,404)
-------------- --------------
Net cash provided by financing activities 105,000 1,706,665
-------------- --------------
NET DECREASE IN CASH (15,378,000) (11,582,652)
CASH, BEGINNING OF PERIOD 21,005,000 16,034,922
-------------- --------------
CASH, END OF PERIOD $ 5,627,000 $ 4,452,270
============== ==============
</TABLE>
See Notes to Consolidated Condensed Financial Statements
<PAGE>
PART I.
CAVALIER HOMES, INC. AND SUBSIDIARIES
Notes to Consolidated Condensed Financial Statements
For the Thirteen Week Periods Ended March 29, 1996
And March 31, 1995
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 March 29, 1996, and the
results of its operations for the thirteen week periods ended March 29,
1996 and March 31, 1995 and its cash flows for the thirteen week periods
ended March 29, 1996 and March 31, 1995. All adjustments are of a normal
recurring nature.
* The results of operations for the thirteen weeks ended March 29, 1996 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 securities in accordance with
Statement of Financial Accounting Standard No. 115, Accounting for Certain
Investments in Debt and Equity Securities, which requires that marketable
securities be classified into three categories - held to maturity,
available for sale, and trading, each having a specified accounting
treatment as to carrying value and recognition of unrealized gains and
losses.
* Certain amounts from the 1995 period have been reclassified to conform to
the 1996 period presentation. These reclassifications had no effect on
results of operations or stockholders' 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
Thirteen Weeks Ended
March 29, March 31,
1996 1995
Cash paid for: Interest $ 121,000 $ 117,281
Income taxes $ 45,000 $ 72,258
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 (8.25% at March 29,
1996).
The warehouse and term-loan agreements contained in the Credit Facility
provide for borrowings of up to 80% of the Company's eligible (as defined)
installment sale contracts, up to a maximum of $8 million. Interest on term
notes is fixed for a period of five years from issuance at a rate based on
the weekly average yield on five year treasury securities 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 .75%.
The warehouse component of the Credit Facility provides for borrowings of
up to $2 million with interest payable at the bank's prime rate plus 1%.
However, in no event may the aggregate outstanding borrowings under the
warehouse and term-loan agreement exceed $8 million.
<PAGE>
PART I.
CAVALIER HOMES, INC. AND SUBSIDIARIES
Notes To Consolidated Condensed Financial Statements
For The Thirteen Week Periods Ended March 29, 1996
And March 31, 1995
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.
On March 14, 1996, the Company executed an amendment to the Credit Facility
which increased the maximum available borrowings under the warehouse and
term-loan agreements contained in the Credit Facility to $18 million from
the previous limit of $8 million. The amendment increased the total amount
of available borrowings under the Credit Facility (including the revolving
line of credit) to $23 million from $13 million. In addition to the
increase in available borrowings under the Credit Facility, the interest
rate on prospective borrowings under the term-loan portion of the agreement
was reduced by .40%. The bank's commitment under the Credit Facility will
expire in April of 1998. All other major terms and commitments remain
unchanged.
As of March 29, 1996, the Company had $4,701,000 borrowed under the
Credit Facility.
4. STOCKHOLDERS' EQUITY
* A three-for-two stock split of the Company's common stock which was
effected in the form of a 50% stock dividend was distributed on February
15, 1996 to stockholders of record on January 31, 1996 and a five-for-four
stock split effected in the form of a 25% stock dividend was distributed on
August 15, 1995 to stockholders of record on July 31, 1995. All historical
dividends and earnings per share amounts have been adjusted for the stock
splits.
* Cash dividends were paid during this quarter and the previous three
quarters as follows (all amounts are per share):
Split Adjusted
Record Date Payment Date Dividend Paid
January 31, 1996 February 15, 1996 $ .030
October 31, 1995 November 15, 1995 $ .020
July 31, 1995 August 15, 1995 $ .020
April 30, 1995 May 16, 1995 $ .016
5. COMMITMENTS AND CONTINGENCIES
* It is a 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. 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 $68 million under these agreements as of March 29,
1996, 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 $750,000 at March 29, 1996, based on prior experience and current
market conditions. Management expects no material loss in excess of the
allowance.
<PAGE>
PART I.
CAVALIER HOMES, INC. AND SUBSIDIARIES
Notes to Consolidated Condensed Financial Statements
For the Thirteen Week Periods Ended March 29, 1996
And March 31, 1995
5. COMMITMENTS AND CONTINGENCIES - Continued
* 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 are adjusted by the
carrier for loss experience factors subject to minimum and maximum premium
calculations. At March 29, 1996, the Company is contingently liable for
future retrospective premium adjustments up to a maximum of $6.3 million in
the event that additional losses are reported related to prior periods. The
Company has recorded an estimated liability of approximately $1.12 million
related to such incurred but not reported claims at March 29, 1996.
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 $2,000,000 at March
29, 1996, 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.
6. ACQUISITIONS
In August of 1995, the Company acquired an option to purchase the balance
(73.5%) of the outstanding shares of common stock of Wheel House
Structures, Inc. ("Wheel House") not already owned by the Company through
the reissuance of treasury stock and the issuance of common stock with a
total value of $464,000. In January of 1996, the Company exercised the
option and acquired the remaining common stock of Wheel House through the
issuance of common stock valued at $691,000. The total purchase price of
the acquisition was $1,155,000 and has been accounted for under the
purchase method. The Company acquired the manufacturing facility operated
by Wheel House for $550,000 cash and an assumption of long-term debt of
$1,100,000, a total consideration of $1,650,000. The acquisition was
immaterial to the Company's consolidated financial statements.
<PAGE>
PART I.
CAVALIER HOMES, INC. AND SUBSIDIARIES
Management's Discussion and Analysis of
Financial Condition and Results of Operations
March 29, 1996
General
The principal business of the Company since its inception has been the design
and production of manufactured homes. Currently the Company operates eleven
facilities engaged in the manufacture of homes and a component manufacturing
facility engaged in the manufacture of laminated wallboards. In early 1992, the
Company, through its wholly owned subsidiary Cavalier Acceptance Corporation
("CAC"), commenced retail installment sale financing operations. During 1994,
the Company formed Cavalier Insurance Agency, Inc. ("CIA") to sell various
insurance products. The operations of CAC and CIA are reported under the
financial services business segment in the Company's annual report.
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%, 20% and 12% for 1992, 1993 , 1994 and 1995,
respectively, as compared to the prior year. Industry statistics for the first
quarter of 1996 indicate a continued trend in the increase of shipments,
although at a 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 to manufacture
homes. During the last three years the Company has opened or acquired three
facilities in Alabama and one facility each in Georgia, Texas and Pennsylvania.
Results of Operations
The following table sets forth, for the periods and dates indicated, certain
financial, operating, and balance sheet data including, as applicable, the
percentage of net sales or total revenue:
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
Thirteen Weeks Ended
March 29, 1996 March 31, 1995 Change over Prior Year
FINANCIAL DATA (dollars in thousands)
Net Sales $ 74,784 100.0% $ 57,814 100.0% $ 16,970 29.4%
Cost of Sales $ 61,813 82.7% $ 48,843 84.5% $ 12,970 26.6%
------------ ------- ------------- ------- ------------- -------
Gross Profit on Sales $ 12,971 17.3% $ 8,971 15.5% $ 4,000 44.6%
============ ======= ============= ======= ============= =======
Net Sales $ 74,784 $ 57,814 $ 16,970 29.4%
Financial Services $ 620 $ 334 $ 286 85.6%
------------ ------- ------------- ------- ------------- -------
Total Revenue $ 75,404 100.0% $ 58,148 100.0% $ 17,256 29.7%
============ ======= ============= ======= ============= =======
Selling, General and Administrative $ 9,016 12.0% $ 6,870 11.8% $ 2,146 31.2%
Net Income $ 2,871 3.8% $ 1,518 2.6% $ 1,353 89.1%
OPERATING DATA
Home Shipments 3,139 2,751 388 14.1%
Balances as of
March 29, 1996 March 31, 1995 Change over Prior Year
BALANCE SHEET DATA (dollars in thousands)
Installment Loan Portfolio $ 22,356 $ 12,109 $ 10,247 84.6%
</TABLE>
<PAGE>
PART I.
CAVALIER HOMES, INC. AND SUBSIDIARIES
Management's Discussion and Analysis of
Financial Condition and Results of Operations
March 29, 1996
Net Sales. The Company believes the increase in net sales of $17.0 million
during the current period over the comparable period from the previous year was
primarily the result of the continuation of improving industry trends, combined
with new and aggressive marketing programs instituted by the Company during the
current and prior periods, including the exclusive dealer program and dealer
stock option plan and the increase in manufacturing capacity during the current
period and the previous year. The increase in homes sold during the current
period over the comparable period in the previous year of 388 homes or 14.1% is
primarily attributable to the increase in production capacity previously
described. The Company has been experiencing a slight shift in product mix from
single-section homes to multi-section homes.
Gross Profit on Sales. The increase in gross profit on sales (derived by
deducting cost of sales from net sales) of $4.0 million during the current
period over the comparable period from the previous year is primarily
attributable to the increase in sales and improved efficiency in manufacturing
operations combined with a decline in raw materials prices.
Financial Services Revenue. The increase in current period financial services
revenue (primarily interest income on retail installment contracts) of $286,000
or 85.6% from the comparable period in the previous year is primarily
attributable to the growth of the Company's loan portfolio to $22.4 million, an
increase of 84.6%.
Selling, General and Administrative. The growth in selling, general and
administrative expense of $2.1 million over the previous year's comparable
period is primarily attributable to the increase in sales combined with
increased expenses due to the addition of personnel, the opening or expansion of
manufacturing facilities and increased administrative expenses of CAC and CIA
consistent with their growth.
Net Income. The increase in net income of $1.4 million or 89.1% over the
previous year's comparable period is primarily attributable to the increase in
sales volume. Net Income per share during the current period was $.30 compared
to $.17 from the previous year's comparable period. (Net income per share has
been adjusted for all previous stock splits.)
Liquidity and Capital Resources
The following table sets forth certain items relating to the measurement of
liquidity and capital resources from the Company's consolidated condensed
financial statements for the dates indicated:
<TABLE>
<S> <C> <C> <C>
Balances as of
March 29, December 31, Increase
1996 1995 (Decrease)
(dollars in thousands)
Working Capital $ 8,546 $ 11,121 $ (2,575)
Current Ratio 1.2:1 1.4:1 (.2:1)
Long-term Debt $ 5,802 $ 4,981 $ 821
Ratio of Long-term Debt to Equity 1:9 1:9 -
Installment Loan Portolio at end of period $ 22,356 $ 19,209 $ 3,147
</TABLE>
Although earnings for the period increased, working capital decreased primarily
due to capital expenditures of $1.5 million plus an expenditure of $.6 million
in connection with an acquisition combined with loan originations by CAC of $3.7
million. The increase in long-term debt is attributable to the purchase of a
manufacturing facility in Haleyville, Alabama (for further information relating
to the purchase of this manufacturing facility, see footnote 6 in the
consolidated condensed financial statements included herein).
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. As the operations of CAC expanded, in February 1994 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 March 29, 1996, the Company's portfolio
of installment sale contracts had grown to approximately $22.4 million and had
been funded primarily with internally generated working capital, borrowings
under the Credit Facility and a portion of the net proceeds from an offering of
the Company's common stock during 1994.
<PAGE>
PART I.
CAVALIER HOMES, INC. AND SUBSIDIARIES
Management's Discussion and Analysis of
Financial Condition and Results of Operations
March 29, 1996
Since entering into the Credit Facility, the Company has had aggregate
borrowings of $5.7 million 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. On March 14, 1996, the Company
executed an amendment to the Credit Facility which increased the maximum
available borrowings under the warehouse and term-loan agreements contained in
the Credit Facility to $18 million from the previous limit of $8 million. The
amendment increased the total amount of available borrowings under the Credit
Facility (including the revolving line of credit) to $23 million from $13
million. In addition to the increase in available borrowings under the Credit
Facility, the interest rate on prospective borrowings under the term-loan
portion of the agreement was reduced by .40%. As the operations of CAC continue
to expand, the Company anticipates that it will be able to increase its
borrowing capacity.
The Company's capital expenditures were approximately $1.5 million for the
thirteen weeks ended March 29, 1996 as compared to $1.2 million for the
comparable period of 1995. Capital expenditures during these periods included
normal property, plant and equipment additions and replacements and the
continued 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. In order to provide additional funds for continued pursuit
of the Company's growth strategies and for operations over the longer term, 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.
<PAGE>
PART II.
CAVALIER HOMES, INC. AND SUBSIDIARIES
Other Information
March 29, 1996
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.
<PAGE>
PART II.
CAVALIER HOMES, INC. AND SUBSIDIARIES
Other Information
March 29, 1996
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: May 10, 1996 /s/ Jerry F. Wilson
--------------- ------------------------
Jerry F. Wilson - President
Date: May 10, 1996 /s/ David A. Roberson
--------------- ------------------------
David A. Roberson -
Chief Financial Officer
<PAGE>
PART II. - EXHIBIT 11
CAVALIER HOMES, INC. AND SUBSIDIARIES
COMPUTATION OF NET INCOME PER COMMON SHARE
<TABLE>
<S> <C> <C>
Thirteen Weeks Ended
March 29, March 31,
1996 1995
PRIMARY AND FULLY DILUTED
Net Income $ 2,871,000 $ 1,517,600
-------------- --------------
SHARES:
Primary
Average common shares outstanding 9,075,318 8,807,393
Dilutive effect if stock options
were exercised 519,208 137,169
-------------- --------------
Average common shares outstanding
as adjusted (primary) 9,594,526 8,944,562
============== ==============
Fully Diluted
Average common shares outstanding 9,594,526 8,944,562
Additional dilutive effect if
stock options were excercised
(fully) 45,421 -
-------------- --------------
Average common shares outstanding
as adjusted (fully diluted) 9,639,947 8,944,562
============== ==============
Primary and Fully Diluted Net
Income per Common Share $ 0.30 $ 0.17
============== ==============
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000789863
<NAME> CAVALIER HOMES, INC.
<MULTIPLIER> 1
<CURRENCY> U.S. DOLLARS
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> MAR-29-1996
<EXCHANGE-RATE> 1
<CASH> 5,627,000
<SECURITIES> 3,328,000
<RECEIVABLES> 21,989,000
<ALLOWANCES> 750,000
<INVENTORY> 12,502,000
<CURRENT-ASSETS> 48,241,000
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0
0
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</TABLE>