EXHIBIT 99.1
CAVALIER ELIMINATES ITS QUARTERLY DIVIDEND
ADDISON, Ala. (October 24, 2000) - Cavalier Homes, Inc. (NYSE - CAV) today
announced that its Board of Directors has eliminated the Company's quarterly
dividend. The Board had already reduced the quarterly rate, cutting it in July
to one cent ($0.01) per share from four cents ($0.04) per share.
Commenting on the announcement, Barry Donnell, Chairman of Cavalier
Homes, said, "Considering the well-publicized competitive conditions that
continue to prevail in our industry, and the pressure they place on our
operations and liquidity, we believe it is necessary to take this conservative
step to preserve our cash resources as we work to bring our costs more in line
with current sales trends. We believe Cavalier continues to have a solid balance
sheet, but we also recognize the industry downturn that has persisted for more
than a year shows few signs of abating as we move into the seasonally slower
winter months. Our goal is to weather this downturn in a way that will position
the Company to grow as industry conditions improve, and we believe conserving
cash is a prudent step in this direction."
Cavalier Homes, Inc. and its subsidiaries are engaged in the
production, sale, financing and insuring of manufactured housing. The Company
markets its homes primarily through independent dealers, including exclusive
dealers that carry only Cavalier products, and provides financial services to
retail purchasers of manufactured homes sold through its exclusive dealer
network.
With the exception of historical information, the statements made in
this press release, including those containing the words "intends,"
"anticipates," "expects," "plans," "believes," and words of similar import, and
those relating to industry trends and conditions and the Company's future
payment of dividends, constitute forward-looking statements, are based upon
current expectations, and are made pursuant to the "Safe Harbor" provisions of
the Private Securities Litigation Reform Act of 1995. Such forward-looking
statements involve certain known and unknown assumptions, risks and
uncertainties that could cause actual results to differ materially from those
included in or contemplated by the statements. These assumptions, risks and
uncertainties include, but are not limited to, those discussed or indicated in
Cavalier's Annual Report on Form 10-K for the period ended December 31, 1999,
under the headings "Item 1. Business-Risk Factors" and "'Safe Harbor' Statement
under the Private Litigation Reform Act of 1995," as filed with the Securities
and Exchange Commission, and in the other documents filed by Cavalier with the
Securities and Exchange Commission. Cavalier disclaims any obligation to update
any forward-looking statements as a result of developments occurring after the
issuance of this press release.
