What changed in this filing

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Item 1. Financial Statements

2022-11-04 compared with 2022-08-05 · 140 added, 72 removed, 477 unchanged (31% of the section changed)

54 unchanged sentences

(Dollars in thousands, except per share amounts)

Three Months Ended

Three Months Ended Six Months Ended

2022 October 2,

2021 October 1,

2022 October 2,

$ 577,392 $ 359,543 $ 1,165,730 $ 689,965

9 unchanged sentences

Other income, net

2,339 4,668 3,222 7,129

Income before income taxes

24 unchanged sentences

(Dollars in thousands)

Three Months Ended

Six Months Ended

2022 October 2,

OPERATING ACTIVITIES

20 unchanged sentences

Purchases of property, plant and equipment ( 33,188 ) ( 4,671 )

Payments for acquisitions, net — ( 151,309 )

Proceeds from sale of property, plant and equipment 402 53

3 unchanged sentences

FINANCING ACTIVITIES

Payments for taxes on exercises and releases of equity awards ( 848 ) —

Payments for taxes on stock option exercises and releases of equity awards ( 982 ) ( 26 )

Proceeds from exercise of stock options 1,591 2,891

3 unchanged sentences

Net cash used in financing activities ( 39,224 ) ( 18,873 )

Net (decrease) increase in cash, cash equivalents and restricted cash ( 6,372 ) 7,509

Net increase (decrease) in cash, cash equivalents and restricted cash 88,785 ( 94,831 )

Cash, cash equivalents and restricted cash at beginning of the fiscal year 259,334 339,307

6 unchanged sentences

Right-of-use assets recognized and operating lease obligations incurred $ 1,445 $ 2,205

Fair value of assets acquired under finance leases $ — $ 7,398

Finance lease obligations incurred $ — $ 6,043

See accompanying Notes to Consolidated Financial Statements

CAVCO INDUSTRIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Basis of Presentation

5 unchanged sentences

In the opinion of management, these financial statements include all adjustments, including normal recurring adjustments, that are necessary to fairly state the results for the periods presented.

Certain prior period amounts have been reclassified to conform to current period classification.

We have evaluated subsequent events after the balance sheet date through the date of the filing of this report with the SEC, and there were no disclosable subsequent events.

Certain prior period amounts have been reclassified from secured financings to accrued expenses to conform to current period classification.

We have evaluated subsequent events after the balance sheet date through the date of the filing of this report with the SEC;

and except for the events set forth in Note 20 of the Notes to Consolidated Financial Statements ("Notes") of the Company's Quarterly Report on Form 10-Q for the period ended October 1, 2022, there were no subsequent events requiring disclosure.

These Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and the Notes to the Consolidated Financial Statements included in our 2022 Annual Report on Form 10-K for the year ended April 2, 2022, filed with the SEC ("Form 10-K").

7 unchanged sentences

(1) factory-built housing, which includes wholesale and retail factory-built housing operations, and (2) financial services, which includes manufactured housing consumer finance and insurance.

We design and build a wide variety of affordable manufactured homes, modular homes and park model RVs through 26 homebuilding production lines located throughout the United States, which are sold to a network of independent distributors, community owners and developers and through our 45 Company-owned retail stores.

We design and build a wide variety of affordable manufactured homes, modular homes and park model RVs through 26 homebuilding production lines located throughout the United States, which are sold to a network of independent distributors, community operators and residential developers and through our 42 Company-owned retail stores.

The financial services segment is comprised of a finance subsidiary, CountryPlace Acceptance Corp.

("CountryPlace"), and an insurance subsidiary, Standard Casualty Company ("Standard Casualty").

CountryPlace is an approved Federal National Mortgage Association and Federal Home Loan Mortgage Corporation seller/servicer and a Government National Mortgage Association ("GNMA") mortgage-backed securities issuer that offers conforming mortgages, non-conforming mortgages and home-only loans to purchasers of factory-built homes.

CountryPlace is an approved Federal National Mortgage Association ("Fannie Mae") and Federal Home Loan Mortgage Corporation ("Freddie Mac") seller/servicer and a Government National Mortgage Association ("Ginnie Mae") mortgage-backed securities issuer that offers conforming mortgages, non-conforming mortgages and home-only loans to purchasers of factory-built homes.

Standard Casualty provides property and casualty insurance primarily to owners of manufactured homes.

On September 24, 2021, we acquired the business and certain assets and liabilities of The Commodore Corporation ("Commodore"), including its six manufacturing facilities and two wholly-owned retail locations.

The results of operations are included in our Consolidated Financial Statements from the date of acquisition.

During fiscal 2022, we acquired an additional 20% ownership in Craftsman Homes, LLC and Craftsman Homes Development, LLC (collectively known as "Craftsman"), which gave us a controlling interest and therefore became a consolidated entity, and we purchased certain manufactured housing assets and assumed certain liabilities of The Commodore Corporation ("Commodore").

Craftsman is a manufactured home retailer with four locations in Nevada selling Company and other manufacturer branded homes.

Commodore added six manufacturing facilities and two wholly-owned retail locations, and also participates in commercial lending operations with its dealers.

In addition to the below, for a description of significant accounting policies we used in the preparation of our Consolidated Financial Statements, please refer to Note 1 of the Notes to Consolidated Financial Statements included in the Form 10-K.

1 unchanged sentence

The following table summarizes customer contract revenues disaggregated by reportable segment and source (in thousands):

Three Months Ended

Three Months Ended Six Months Ended

October 1, 2022 October 2, 2021 October 1,

2022 October 2,

Factory-built housing

4 unchanged sentences

Park model RVs

10,502 9,728 24,257 19,399

Other 15,101 15,033 32,422 28,638

2 unchanged sentences

Insurance agency commissions received from third-party insurance companies

1,029 850 2,426 1,723

All other sources 16,761 16,599 31,105 33,865

10 unchanged sentences

The following table provides a reconciliation of Cash and cash equivalents and Restricted cash reported within the Consolidated Balance Sheets to the combined amounts shown in the Consolidated Statements of Cash Flows (in thousands):

2022 October 2,

Cash and cash equivalents $ 333,249 $ 224,291

12 unchanged sentences

Investments in marketable equity securities consist of investments in the common stock of industrial and other companies.

Our non-marketable equity investments include investments in community-based initiatives that buy and sell our homes and provide home-only financing to residents of certain manufactured home communities and other distribution operations.

The amortized cost and fair value of our investments in available-for-sale debt securities, by security type are shown in the table below (in thousands):

July 2, 2022 April 2, 2022

October 1, 2022 April 2, 2022

Value Amortized Cost Fair

8 unchanged sentences

Expected maturities differ from contractual maturities as borrowers may have the right to call or prepay obligations, with or without penalties.

October 1, 2022

Due in less than one year $ 1,443 $ 1,423

4 unchanged sentences

$ 20,523 $ 19,488

There were no gross gains or losses realized on the sale of available-for-sale debt securities during the three months ended July 2, 2022 or July 3, 2021.

There were no gross gains or losses realized on the sale of available-for-sale debt securities during the three and six months ended October 1, 2022 or October 2, 2021.

Net investment gains and losses on marketable equity securities were as follows (in thousands):

Three Months Ended

Three Months Ended Six Months Ended

2022 October 2,

2021 October 1,

2022 October 2,

Marketable equity securities

22 unchanged sentences

The following table represents changes in the estimated allowance for loan losses, including related additions and deductions to the allowance for loan losses (in thousands):

Three Months Ended

Three Months Ended Six Months Ended

2022 October 2,

2021 October 1,

2022 October 2,

Allowance for loan losses at beginning of period $ 1,905 $ 2,918 $ 2,115 $ 3,188

16 unchanged sentences

The following tables disaggregate the principal value of consumer loans receivable by credit quality indicator and fiscal year of origination (in thousands):

October 1, 2022

2023 2022 2021 2020 2019 Prior Total

19 unchanged sentences

$ 9,861 $ 2,909 $ 3,836 $ 3,341 $ 1,470 $ 31,415 $ 52,832

As of July 2, 2022 and April 2, 2022, 40 % and 39 % of the outstanding principal balance of the consumer loans receivable portfolio was concentrated in Texas, respectively, and 17 % was concentrated in Florida in both periods.

Other than Texas and Florida, no sta te had concentrations in excess of 10 % of the principal balance of the consumer loans receivable as of July 2, 2022 or April 2, 2022.

Repossessed homes totaled approximately $ 78,000 and $ 499,000 as of July 2, 2022 and April 2, 2022, respectively, and are included in Prepaid expenses and other current assets on the Consolidated Balance Sheets.

Foreclosure or similar proceedings in progress totaled approximately $ 611,000 and $ 1.1 million as of July 2, 2022 and April 2, 2022, respectively.

As of October 1, 2022 and April 2, 2022, 43 % and 39 % of the outstanding principal balance of the consumer loans receivable portfolio was concentrated in Texas, respectively, and 16 % and 17 %, respectively was concentrated in Florida.

Other than Texas and Florida, no sta te had concentrations in excess of 10 % of the outstanding principal balance of the consumer loans receivable as of October 1, 2022 or April 2, 2022.

Repossessed homes totaled approximately $ 375,000 and $ 499,000 as of October 1, 2022 and April 2, 2022, respectively, and are included in Prepaid expenses and other current assets on the Consolidated Balance Sheets.

Foreclosure or similar proceedings in progress totaled approximately $ 605,000 and $ 1.1 million as of October 1, 2022 and April 2, 2022, respectively.

Commercial Loans Receivable

The commercial loans receivable balance consists of direct financing arrangements for the home product needs of our independent distributors, community owners and developers.

The commercial loans receivable balance consists of direct financing arrangements for the home product needs of our independent distributors, community operators and residential developers.

Commercial loans receivable (including from affiliates), net consisted of the following (in thousands):

11 unchanged sentences

The following table represents changes in the estimated allowance for loan losses (in thousands):

Three Months Ended

Three Months Ended Six Months Ended

2022 October 2,

2021 October 1,

2022 October 2,

Balance at beginning of period

5 unchanged sentences

Nonperforming status includes loans accounted for on a non-accrual basis and accruing loans with principal payments 90 days or more past due.

As of July 2, 2022 and April 2, 2022, there were no commercial loans considered watch list or nonperforming.

As of October 1, 2022 and April 2, 2022, there were no commercial loans considered watch list or nonperforming.

The following table disaggregates the principal value of our commercial loans receivable by fiscal year of origination (in thousands):

October 1, 2022

2023 2022 2021 2020 2019 Prior Total

3 unchanged sentences

$ 52,592 $ 10,181 $ 4,031 $ 1,391 $ 1,498 $ — $ 69,693

As of July 2, 2022, there were no commercial loans 90 days or more past due that were still accruing interest and we were not aware of any potential problem loans that would have a material effect on the commercial loans receivable balance.

As of July 2, 2022 and April 2, 2022, we had concentrations of our outstanding commercial loans receivable balance in New York of 20 % and 25 %, respectively.

No other state had concentrations in excess of 10 % of the principal balance of the commercial loans receivable as of July 2, 2022 or April 2, 2022.

One independent third-party and its affiliates comprised 14 % of the net commercial loans receivable principal balance outstanding, all of which was secured, as of both July 2, 2022 and April 2, 2022 .

As of October 1, 2022, there were no commercial loans 90 days or more past due that were still accruing interest, and we were not aware of any potential problem loans that would have a material effect on the commercial loans receivable balance.

As of October 1, 2022 and April 2, 2022, we had concentrations of our outstanding principal balance of the commercial loans receivable balance in New York of 19 % and 25 %, respectively.

No other state had concentrations in excess of 10 % of the outstanding principal balance of the commercial loans receivable as of October 1, 2022 or April 2, 2022.

As of October 1, 2022 and April 2, 2022, one independent third-party and its affiliates comprised 13 % and 14 %, respectively, of the net commercial loans receivable principal balance outstanding, all of which was secured .

Property, Plant and Equipment, net

9 unchanged sentences

$ 189,968 $ 164,016

Depreciation expense for the three months ended July 2, 2022 and July 3, 2021 was $ 3.4 million and $ 1.4 million, respectively.

Depreciation expense for the three and six months ended October 1, 2022 was $ 3.8 million and $ 7.3 million, respectively.

Depreciation expense for the three and six months ended October 2, 2021 was $ 1.4 million and $ 2.9 million, respectively.

Goodwill and Other Intangibles

Goodwill and other intangibles, net, consisted of the following (in thousands):

July 2, 2022 April 2, 2022

October 1, 2022 April 2, 2022

Amount Accumulated

12 unchanged sentences

$ 138,781 $ ( 10,754 ) $ 128,027 $ 139,197 $ ( 9,745 ) $ 129,452

Amortization expense recognized on intangible assets was $ 508,000 and $ 173,000 for the three months ended July 2, 2022 and July 3, 2021, respectively.

Amortization expense recognized on intangible assets was $ 502,000 and $ 1.0 million for the three and six months ended October 1, 2022, respectively.

Amortization expense recognized on intangible assets was $ 166,000 and $ 339,000 for the three and six months ended October 2, 2021, respectively.

Expected amortization for future fiscal years is as follows (in thousands):

1 unchanged sentence

Thereafter 3,506

During the second fiscal quarter, we finalized the purchase price allocation related to the Commodore acquisition, and recorded purchase accounting adjustments that did not have a material effect on the Consolidated Financial Statements.

Accrued Expenses and Other Current Liabilities

1 unchanged sentence

2022 April 2,

Customer deposits $ 54,161 $ 56,318

Salaries, wages and benefits $ 55,232 $ 54,172

Customer deposits 48,255 56,318

Estimated warranties 30,841 26,250

4 unchanged sentences

Activity in the liability for estimated warranties was as follows (in thousands):

Three Months Ended

Three Months Ended Six Months Ended

2022 October 2,

2021 October 1,

2022 October 2,

Balance at beginning of period $ 28,802 $ 19,344 $ 26,250 $ 18,032

Purchase accounting additions — 6,928 — 6,928

Charged to costs and expenses 13,623 7,994 28,627 17,119

15 unchanged sentences

Three Months Ended

July 2, 2022 July 3, 2021

October 1, 2022 October 2, 2021

Written Earned Written Earned

6 unchanged sentences

$ 11,572 $ 11,135 $ 10,836 $ 10,239

Six Months Ended

October 1, 2022 October 2, 2021

Written Earned Written Earned

Direct premiums

$ 14,896 $ 14,388 $ 13,149 $ 12,319

Assumed premiums—nonaffiliated

17,846 16,168 16,814 15,008

Ceded premiums—nonaffiliated

( 8,643 ) ( 8,643 ) ( 7,361 ) ( 7,361 )

$ 24,099 $ 21,913 $ 22,602 $ 19,966

Typical insurance policies written or assumed have a maximum coverage of $ 300,000 per claim, of which we cede $ 125,000 of the risk of loss per reinsurance.

3 unchanged sentences

Reserves for claims are included in the Accrued expenses and other current liabilities line item on the Consolidated Balance Sheets and claims expenses are recorded in Cost of sales on the Consolidated Statements of Comprehensive Income.

The following details the activity in the reserve for the three months ended July 2, 2022 and July 3, 2021 (in thousands):

Three Months Ended

The following details the activity in the reserve for the six months ended October 1, 2022 and October 2, 2021 (in thousands):

Three Months Ended Six Months Ended

2022 October 2,

2021 October 1,

2022 October 2,

Balance at beginning of period $ 8,574 $ 8,348 $ 8,149 $ 7,451

Net incurred losses during the year 8,777 7,975

Net claim payments during the year ( 8,352 ) ( 7,078 )

Net incurred losses during the period 7,809 7,282 16,586 15,257

Net claim payments during the period ( 8,593 ) ( 8,280 ) ( 16,945 ) ( 15,358 )

Balance at end of period $ 7,790 $ 7,350 $ 7,790 $ 7,350

3 unchanged sentences

These arrangements, which are customary in the industry, provide for the repurchase of products sold to distributors in the event of default by the distributor.

The maximum amount for which the Company was liable under such agreements approximated $ 167.2 million and $ 141.0 million at July 2, 2022 and April 2, 2022, respectively, without reduction for the resale value of the homes.

We had a reserve for repurchase commitments of $ 4.4 million at July 2, 2022 and $ 3.6 million at April 2, 2022, and there were no repurchases during either period.

The maximum amount for which the Company was liable under such agreements approximated $ 189.4 million and $ 141.0 million at October 1, 2022 and April 2, 2022, respectively, without reduction for the resale value of the homes.

We had a reserve for repurchase commitments of $ 5.0 million at October 1, 2022 and $ 3.6 million at April 2, 2022, and there were no repurchases during either period.

Construction-Period Mortgages.

8 unchanged sentences

Representations and Warranties of Mortgages Sold .

We sell loans to Government-Sponsored Enterprises ("GSEs") and whole-loan purchasers and finance certain loans with long-term credit facilities secured by the respective loans.

We sell loans to Government-Sponsored Enterprises ("GSEs") and whole-loan purchasers.

In connection with these activities, we provide to GSEs and whole-loan purchasers and lenders representations and warranties related to the loans sold or financed.

1 unchanged sentence

We maintain a reserve for these contingent repurchase and indemnification obliga tions.

This reserve of $ 1.0 million as of July 2, 2022 and $ 866,000 as of April 2, 2022, included in Accrued expenses and other current liabilities on the Consolidated Balance Sheets, reflects management's estimate of probable loss.

There were no claim requests that resulted in the repurchase of a loan during the three months ended July 2, 2022.

This reserve of $ 816,000 as of October 1, 2022 and $ 866,000 as of April 2, 2022, included in Accrued expenses and other current liabilities on the Consolidated Balance Sheets, reflects management's estimate of probable loss.

There were no claim requests that resulted in the repurchase of a loan during the six months ended October 1, 2022.

Interest Rate Lock Commitments .

1 unchanged sentence

These IRLCs bind us to fund the approved loan at the specified rate regardless of whether interest rates or market prices for similar loans have changed between the commitment date and the closing date.

As of July 2, 2022, we had outstanding IRLCs with a notional amount of $ 49.9 million and recognized a gain of $ 40,000 in the fiscal 2023 first quarter and a gain of $ 47,000 in the fiscal 2022 first quarter.

As of October 1, 2022, we had outstanding IRLCs with a notional amount of $ 37.0 million.

For the three months ended October 1, 2022 and October 2, 2021, we recognized losses of $ 9,000 and $ 5,000 respectively on outstanding IRLCs.

For the six months ended October 1, 2022 and October 2, 2021, we recognized gains of $ 31,000 and $ 42,000 , respectively.

Forward Sales Commitments .

We manage the risk profiles of a portion of the outstanding IRLCs and mortgage loans held for sale by entering into forward sales of mortgage-backed securities ("MBS") and whole loan sale commitments (collectively "Commitments").

As of July 2, 2022, we had $ 10.2 million in outstanding Commitments and recognized a non-cash loss of $ 262,000 in the fiscal 2023 first quarter and a non-cash loss of $ 347,000 in the fiscal 2022 first quarter.

As of October 1, 2022, we had $ 6.6 million in outstanding Commitments.

We recognized non-cash gains of $ 178,000 and $ 79,000 in the second quarter of fiscal 2023 and 2022, respectively .

During the six months ended October 1, 2022 and October 2, 2021, we recognized losses of $ 84,000 and $ 268,000 , respectively.

Legal Matters.

On September 2, 2021, the SEC filed a civil complaint in the United States District Court, District of Arizona, naming the Company along with the Company's former Chairman, President & Chief Executive Officer ("CEO") and the Company's former Chief Financial Officer, alleging violations of the antifraud and internal accounting control provisions of the Securities Exchange Act of 1934 based on trading in the shares of another company directed by the former CEO that resulted in an unrealized gain of approximately $ 260,000 .

On September 2, 2021, the SEC filed a civil complaint in the United States District Court, District of Arizona, naming the Company along with the Company's former Chairman, President & Chief Executive Officer ("former CEO") and the Company's former Chief Financial Officer, alleging violations of the antifraud and internal accounting control provisions of the Securities Exchange Act of 1934 (the "Exchange Act") based on trading in the shares of another company directed by the former CEO that resulted in an unrealized gain of approximately $ 265,000 .

In the prior year, the Company recorded an accrual relating to this loss contingency.

The Company has reached a settlement in principle with the SEC staff regarding the pending litigation.

The settlement is subject to SEC approval that is expected within the next 60 days.

A related notice has been filed with the Court in that action.

We do not believe that the settlement will have a material impact on our results of operations or financial position.

On September 23, 2022, the United States District Court for the District of Arizona approved the settlement of the SEC action against the Company.

Without admitting or denying the findings of the consent judgment, the Company agreed to the imposition of an injunction against future violations of the antifraud and internal accounting control provisions of the Exchange Act and a monetary penalty of $ 1.5 million, which did not have a material impact on the Company's financial statements.

The settlement resolves all claims in such action against the Company.

We are party to certain other lawsuits in the ordinary course of business.

2 unchanged sentences

Stockholders' Equity and Redeemable Noncontrolling Interest

The following table represents changes in stockholders' equity attributable to Cavco's stockholders and redeemable noncontrolling interest during the three months ended July 2, 2022 (dollars in thousands):

The following table represents changes in stockholders' equity attributable to Cavco's stockholders and redeemable noncontrolling interest during the six months ended October 1, 2022 (dollars in thousands):

Equity Attributable to Cavco Stockholders

4 unchanged sentences

Other comprehensive loss, net — — — — — ( 112 ) ( 112 ) —

Issuance of common stock under stock incentive plans 5,957 — — ( 848 ) — — ( 848 ) —

Issuance of common stock under stock incentive plans, net 5,957 — — ( 848 ) — — ( 848 ) —

Stock-based compensation — — — 1,425 — — 1,425 —

2 unchanged sentences

Balance, July 2, 2022 9,298,235 $ 93 $ ( 100,000 ) $ 263,626 $ 688,358 $ ( 515 ) $ 851,562 $ 677

Net income — — — — 74,116 — 74,116 82

Other comprehensive loss, net — — — — — ( 303 ) ( 303 ) —

Issuance of common stock under stock incentive plans, net 15,917 — — 1,457 — — 1,457 —

Stock-based compensation — — — 2,100 — — 2,100 —

Distributions — — — — — — — ( 240 )

Subsequent change in redemption value — — — — — — — 407

Balance, October 1, 2022 9,314,152 $ 93 $ ( 100,000 ) $ 267,183 $ 762,474 $ ( 818 ) $ 928,932 $ 926

Equity Attributable to Cavco Stockholders

4 unchanged sentences

Other comprehensive loss, net — — — — — ( 13 ) ( 13 ) —

Issuance of common stock under stock incentive plans 4,465 — — 136 — — 136 —

Issuance of common stock under stock incentive plans, net 4,465 — — 136 — — 136 —

Stock-based compensation — — — 1,100 — — 1,100 —

1 unchanged sentence

Balance, July 3, 2021 9,245,721 $ 92 $ ( 14,283 ) $ 255,071 $ 458,103 $ 84 $ 699,067 $ —

Initial value of noncontrolling interest upon transaction — — — — — — — 1,235

Net income — — — — 37,610 — 37,610 73

Other comprehensive income, net — — — — — ( 13 ) ( 13 ) —

Issuance of common stock under stock incentive plans, net 29,295 1 — 2,728 — — 2,729 —

Stock-based compensation — — — 1,317 — — 1,317 —

Common stock repurchases — — ( 7,594 ) — — — ( 7,594 ) —

Distributions — — — — — — — ( 180 )

Balance, October 2, 2021 9,275,016 $ 93 $ ( 21,877 ) $ 259,116 $ 495,713 $ 71 $ 733,116 $ 1,128

Earnings Per Share

The following table sets forth the computation of basic and diluted earnings per share (dollars in thousands, except per share amounts):

Three Months Ended

Three Months Ended Six Months Ended

2022 October 2,

2021 October 1,

2022 October 2,

Net income attributable to Cavco common stockholders $ 74,116 $ 37,610 $ 133,718 $ 64,656

9 unchanged sentences

The book value and estimated fair value of our financial instruments were as follows (in thousands):

July 2, 2022 April 2, 2022

October 1, 2022 April 2, 2022

Value Estimated

23 unchanged sentences

Related Party Transactions

We have non-marketable equity investments in other distribution operations outside of Company-owned retail stores.

In the ordinary course of business, we sell homes and lend to certain of these operations through our commercial lending programs.

For the three months ended July 2, 2022 and July 3, 2021, the total amount of sales to related parties was $ 17.2 million and $ 14.8 million, respectively.

As of July 2, 2022, receivables from related parties included $ 5.3 million of accounts receivable and $ 1.8 million of commercial loans outstanding.

In addition to our Company-owned stores, we have non-marketable equity investments in other manufactured housing distributors.

In the ordinary course of business, we sell homes and lend to certain of these distributors through our commercial lending programs.

For the three and six months ended October 1, 2022, the total amount of sales to related parties was $ 20.1 million and $ 37.3 million, respectively.

For the three and six months ended October 2, 2021, the total amount of sales to related parties was $ 14.0 million and $ 28.8 million, respectively.

As of October 1, 2022, receivables from related parties included $ 5.1 million of accounts receivable and $ 2.2 million of commercial loans outstanding.

As of April 2, 2022, receivables from related parties included $ 3.3 million of accounts receivable and $ 2.6 million of commercial loans outstanding.

On July 4, 2021, we obtained an additional 20 % ownership interest in Craftsman Homes, LLC and Craftsman Homes Development, LLC (“the Entities”) which gave us a controlling interest.

Accordingly, we now consolidate the Entities and the results of operations have been included in the accompanying Consolidated Financial Statements since the date of acquisition.

On September 24, 2021, we purchased certain manufactured housing assets and assumed certain liabilities of Commodore, including its six manufacturing facilities and two wholly-owned retail locations.

In addition to manufacturing, Commodore also participates in commercial lending operations with its dealers.

The transaction was accounted for as a business combination and the results of operations have been included in the accompanying Consolidated Financial Statements since the date of acquisition.

Pro Forma Impact of Acquisitions (unaudited) .

The following table presents supplemental pro forma information as if the acquisitions occurred on April 4, 2021 (in thousands, except per share data):

Three Months Ended

Net revenue $ 411,752

Net income attributable to Cavco common stockholders 28,022

Diluted net income per share 3.02

Business Segment Information

2 unchanged sentences

The following table provides selected financial data by segment (in thousands):

Three Months Ended

Three Months Ended Six Months Ended

2022 October 2,

2021 October 1,

2022 October 2,

Factory-built housing $ 559,602 $ 342,094 $ 1,132,199 $ 654,377

12 unchanged sentences

$ 1,264,666 $ 1,154,972

Subsequent Event

As announced on October 27, 2022 in a current report on Form 8-K, we have signed a binding offer to acquire the business of Solitaire Homes, Inc.

and other related entities (collectively “Solitaire Homes”), including its four manufacturing facilities, twenty-two retail locations and its dedicated transportation operations.

The addition of Solitaire Homes strengthens our position in the Southwest, with high quality products that complement our existing home offerings.

The purchase price totals $ 93 million, before certain adjustments that will be determined upon close of the transaction.

We expect to fund the acquisition entirely with cash on hand.

The transaction is expected to close early in the Company's fourth quarter of fiscal year 2023, subject to applicable regulatory approvals and the satisfaction of certain customary conditions.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements