What changed in this filing

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Item 1. Business

2023-05-19 compared with 2022-05-31 · 109 added, 64 removed, 318 unchanged (35% of the section changed)

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We are one of the largest producers of manufactured homes in the United States, based on reported wholesale shipments.

Our products are marketed under a variety of brand names including Cavco, Fleetwood, Palm Harbor, Nationwide, Fairmont, Friendship, Chariot Eagle, Destiny, Commodore, Colony, Pennwest, R-Anell, Manorwood and MidCountry.

We are also a leading producer of park model RVs, vacation cabins and factory-built commercial structures.

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The terms "Cavco," "us," "we," "our," the "Company," and any other similar terms refer to Cavco Industries, Inc.

and its consolidated subsidiaries, unless otherwise indicated in this Annual Report on Form 10-K ("Annual Report").

and its consolidated subsidiaries, unless otherwise indicated in this Annual Report on Form 10-K for the fiscal year ended April 1, 2023 ("Annual Report").

We construct homes using an assembly-line process in which each module or floor section is completed in stages.

This assembly-line process is designed to be flexible in order to accommodate customer requested customizations.

Our operations include 26 homebuilding production lines located throughout the United States and we distribute our homes through 45 Company-owned U.S.

retail stores and a network of independent distribution points in 48 states and Canada.

Thirty-one Company-owned retail stores are located in Texas.

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

The addition of Commodore expanded our geographic reach into the Northeast U.S.

and enhanced our presence in the Midwest and Mid-Atlantic markets.

It also expanded our reach to modular home customers, as their home production is generally split between manufactured and modular housing.

Implementation of best practices of the Company and Commodore are expected to create efficiency improvements across our operations.

In addition to our proven existing processes we can bring to the Commodore operations, we believe Commodore has developed and implemented advanced manufacturing technologies that will lead to improvements to Cavco's operations.

Commodore also participates in commercial lending operations with its dealers, and we have continued most of these programs after acquisition.

Our operations include 29 homebuilding production lines located throughout the United States and two production lines in Mexico.

We distribute our homes through a large network of independent distribution points in 48 states and Canada and 64 Company-owned U.S.

retail stores, of which 50 are located in Texas.

On January 3, 2023, we completed the acquisition of Solitaire, Inc.

and other related entities (collectively "Solitaire Homes").

This transaction added four manufacturing lines, including the two in Mexico, and 22 retail locations.

The addition of Solitaire Homes strengthens our position in the Southwest and expands our manufacturing capabilities into Mexico.

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.

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Our marketing efforts are focused on providing manufactured homes that are customizable and appeal to a wide range of home buyers, on a regional basis, in the markets we serve.

The primary demographics for our products are entry-level and move-up buyers and persons age 55 and older.

We also market to special niches such as subdivision developers and second home or vacation home buyers.

The primary demographics for our products are entry-level and move-up buyers and persons aged 55 and older.

We also market and sell to manufactured housing community owners, subdivision developers and second home or vacation home buyers.

We focus on developing and maintaining the resources necessary to meet our customer's desire for varied and unique specifications in an efficient factory production environment.

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military troops (e.g., barracks).

Commercial buildings are constructed in the same facilities in which the residential homes are built using similar assembly line processes and techniques.

Commercial buildings are constructed in the same facilities that the residential homes are built using similar assembly line processes and techniques.

These commercial projects are generally engineered to the purchaser's specifications.

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We also offer a variety of structural, decorative and energy efficient customizations to meet the home buyer's specifications.

With manufacturing facilities strategically positioned across the nation, we utilize local market research to design homes to meet the demands of our customers.

With manufacturing facilities strategically positioned across the United States and Mexico, we utilize local market research to design homes to meet the demands of our customers.

We have the ability to react and modify floor plans and designs to consumers' specific needs.

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We also build homes designed to use alternative energy sources, such as solar.

Once a factory-built home is built at our facilities, it is then generally transported by independent trucking companies either to a retail sales center, planned community, housing development, work site or the home buyer's site.

Once a factory-built home is built at our facilities, it is then generally transported by independent trucking companies or our company owned trucks either to a retail sales center, planned community, housing development, work site or the home buyer's site.

Distributors, or other independent installers utilized by us for homes sold through our Company-owned retail stores, are responsible for placing the home on site and, in most instances, arranging for connections to utilities and providing installation and finish-out services.

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Each section is assembled in stages beginning with the construction of the chassis, followed by the addition of other constructed and purchased components, and ending with a final quality control inspection.

The efficiency of the assembly-line process and the benefits of constructing homes in a controlled factory environment enables us to produce quality homes in less time and at a lower cost per square foot than building homes on individual sites.

We operate 26 homebuilding production lines in Millersburg and Woodburn, Oregon;

The efficiency of the assembly-line process and the benefits of constructing homes in a controlled factory environment enable us to produce quality homes in less time and at a lower cost per square foot than building homes on individual sites.

We operate a total of 31 homebuilding production lines in Millersburg and Woodburn, Oregon;

Riverside, California;

Nampa, Idaho;

Phoenix and Goodyear, Arizona;

Phoenix, Glendale and Goodyear, Arizona;

Deming, New Mexico;

Duncan, Oklahoma;

Austin, Fort Worth, Seguin and Waco, Texas;

Ojinaga, Mexico (2);

Montevideo, Minnesota;

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These shortages may also result in extended order backlogs, delays in the delivery of homes and reduced gross margins from home sales.

Housing demand remains strong as qualified individuals continue pursuing affordable home-ownership.

Home order rates have moderated from the extreme highs we saw during the summer of 2020 to the summer of 2021, but still remain above pre-pandemic rates, which we considered to be strong.

The increase in orders outpaced production and raised our home order backlog at April 2, 2022 to approximately $1.1 billion in wholesale sales values, up $511 million from $603 million one year earlier.

The year over year increase includes $264 million attributable to our acquisition of Commodore.

It is difficult to predict the future of housing demand, employee availability, our supply chain or the Company's performance and operations.

Our home order backlog at April 1, 2023 was approximately $244 million in wholesale sales values, down $870 million from $1.1 billion one year earlier.

Distributors may cancel orders prior to production without penalty.

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Accordingly, until production of a particular home has commenced, we do not consider order backlog to be firm orders.

It is difficult to predict the future of housing demand, employee availability, our supply chain or the Company's performance and operations.

We continue to focus on developing production growth opportunities by working to improve our production capabilities and processes and adjusting product offerings.

We strive to balance the production levels and workforce size with the demand for our product offerings to maximize efficiencies.

Maintaining an appropriately sized and well-trained workforce is key to increasing production to meet increased demand, and we face a major challenge in overcoming hiring difficulties in the current environment.

However, we are continually reviewing wage rates of our production employees and have established other monetary incentive and benefit programs to en sure competitive compensation.

We are also working to more extensively use online recruiting tools, update our recruitment brochures, enhance our training programs and improve the appearance and appeal of our manufacturing facilities to improve the recruitment and retention of qualified production employees and reduce annualized turnover rates.

Although we continue to experience hiring challenges and other inefficiencies from building material supply disruptions, we have reduced our total open production positions needed by nearly 25% over the past year, bringing our total average plant capacity utilization rate to exceeding 80% during the fourth fiscal quarter of 2022, which is above pre-pandemic levels.

We con tinue to focus on balancing the production levels and workforce size with the demand for our product offerings to maximize efficiencies.

Distribution .

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As of April 1, 2023, there were a total of 64 Company-owned retail stores, located in Oregon, Arizona, Nevada, New Mexico, Texas, Indiana, Oklahoma, Florida and New York.

Thirty-one of the Company-owned retail stores are located in Texas.

Fifty of the Company-owned retail stores are located in Texas.

Company-owned retail stores are generally located on main roads or highways with high visibility, each having a sales office, which is generally a factory-built structure, and a variety of model homes of various sizes, floor plans, features and prices.

Customers most often custom order a home to be built at one of our manufacturing facilities, or they may purchase a home from the inventory of homes maintained at retail locations, including a model home.

Model homes may be displayed in a residential setting with sidewalks and landscaping.

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We internally finance home inventories at Company-owned retail stores.

As of April 2, 2022, we had a network of independent distributors, of which 9% were in Arizona, 8% in Texas, 7% each in California, Florida and North Carolina and 6% each in Georgia and Oregon, based on the quantity of wholesale shipments during fiscal year 2022.

As of April 1, 2023, we had a network of independent distributors, of which 9% were in Arizona, 8% in each of Florida and North Carolina, 7% in California and 5% each in New York, Texas and Oregon, based on the quantity of wholesale shipments during fiscal year 2023.

The remaining 53% were in 41 other states and Canada.

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Loan contracts secured by collateral that is geographically concentrated could experience higher rates of delinquencies, default and foreclosure losses than loan contracts secured by collateral that is more geographically dispersed.

Our loan contracts are secured by factory-built homes located in 26 states, with the largest concentrations in Texas, Florida, New Mexico, Oklahoma and Alabama (see Note 6 to the Consolidated Financial Statements for additional geographic concentration information).

Our loan contracts are secured by factory-built homes located in 28 states, with the largest concentrations in Texas, Florida, New Mexico and Oklahoma (see Note 6 to the Consolidated Financial Statements for additional geographic concentration information).

W e continue to assist customers in need by servicing existing loans and insurance policies and complying with state and federal regulations regarding loan forbearance, home foreclosures and policy cancellations.

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There are three basic types of consumer financing in the factory-built housing industry:

conforming mortgage loans which comply with the requirements of FHA, VA, USDA or GSEs;

conforming mortgage loans that comply with the requirements of FHA, VA, USDA or GSEs;

non-conforming mortgages for purchasers of the home and the land on which the home is placed;

and personal property loans (often referred to as home-only or chattel loans) for consumers where the home is the sole collateral for the loan (generally HUD code homes).

Limited secondary market availability for non-conforming mortgages and home-only personal property loans secured by manufactured homes continue to constrain industry growth.

Limited secondary market availability for non-conforming mortgages and home-only personal property loans secured by manufactured homes continues to cause consumer loans and mortgages secured by manufactured homes to be more expensive than those secured by site-built homes.

We work independently and with other industry participants to develop secondary market opportunities for manufactured home-only loans and non-conforming mortgage portfolios and expand lending availability in the industry.

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Federal law requires GSEs to implement the "Duty to Serve" requirements specified in the Federal Housing Enterprises Financial Safety and Soundness Act of 1992, as amended by the Housing and Economic Recovery Act of 2008.

In April 2022, Fannie Mae and Freddie Mac released their Underserved Markets Plans for 2022-2024 that describe, with specificity, the actions they would take over the three-year period to fulfill the "Duty to Serve" obligation.

As with prior plans, the 2022-2024 plans offer enhanced mortgage loan products for manufactured homes titled a s real property, including Fannie Mae's "MH Advantage" and Freddie Mac's "ChoiceHome" programs that began in the latter part of calendar year 2018.

In April 2022, Fannie Mae and Freddie Mac released their Underserved Markets Plans for 2022 through 2024 that describe, with specificity, the actions they would take over the three-year period to fulfill the "Duty to Serve" obligation.

The plans were modified in January 2023.

As with prior plans, the 2022 through 2024 plans offer enhanced mortgage loan products for manufactured homes titled a s real property, including Fannie Mae's "MH Advantage" and Freddie Mac's "ChoiceHome" programs that began in the latter part of calendar year 2018.

Although some progress has been made with these programs, meaningful positive im pact in the form of increased home orders has yet to be realized.

The plans do not include purchases of home-only loans during the three-year timeframe.

Expansion of the secondary market for home-only loans through GSEs could support further demand for housing as lending options would likely become more available to home buyers.

Expansion of the secondary market for home-only loans through GSE participation could support further demand for housing as lending options would likely become more affordable to home buyers.

Commercial Financing.

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The maximum amount of contingent obligations under such repurchase agreements was approximately $177.9 million and $141.0 million as of April 1, 2023 and April 2, 2022, respectively.

The increase is the result of higher home sales price, increased units under these programs and the addition of Commodore.

The increase is the result of higher home sales prices and an increased number of units under these programs.

The risk of loss under these agreements is spread over many distributors and is further reduced by the resale value of the homes that we obtain upon the execution of a repurchase.

During the fourth quarter of fiscal 2023, we received a repurchase demand notice and the inventory was obtained shortly after year end.

As the fair value of the inventory exceeded the amount for which it was repurchased, no reserve was deemed necessary.

There were no other repurchases during fiscal 2023.

We continue to make certain commercial loan programs available to members of our wholesale distribution chain.

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Home Buyer Demographics.

We believe the sector of the housing market in which manufactured housing is most competitive includes consumers from diverse backgrounds with household incomes under $40,000.

This segment has a high representation of persons age 55 and older, as well as young single persons and young married couples.

We believe the sector of the housing market in which manufactured housing is most competitive includes consumers from diverse backgrounds with household incomes generally under $40,000.

This segment has a high representation of persons aged 55 and older, as well as young single persons and young married couples.

The low cost of a fully equipped manufactured home compared to a site-built alternative is attractive to these consumers.

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adult population is estimated to expand by approximately 8.3 million between 2023 and 2028.

Young adults born from 1976 to 1995, often referred to as Gen Y or Millennials, represent a large segment of the population who are generally first-time home buyers attracted by the affordability, product diversity and location flexibility of factory-built homes.

A large segment of the population who are generally first-time home buyers, those born between 1976 to 1995 often referred to as Gen Y or Millennials, are attracted by the affordability, product diversity and location flexibility of factory-built homes.

The age 55 and older category is reported to be the fastest growing segment of the U.S.

This group is similarly interested in the value proposition;

however, they are also motivated by the energy efficiency and low maintenance requirements of factory-built homes and by the lifestyle offered by planned communities that are specifically designed for homeowners that fall into this age group.

The manufactured housing industry is highly competitive at both the wholesale and retail levels, with competition based on several factors including price, product features, reputation for service and quality, depth of distribution, pr omotion, merchandising and the terms of retail customer financing.

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While many manufactured homes are currently financed with agency-conforming mortgages in which the ability to repay is verified, and interest rates and other costs are within the safe harbor limits established under the CFPB mortgage finance rules, certain loans to finance the purchase of manufactured homes, especially home-only loans and non-conforming mortgages, may fall outside the safe harbor limits.

The rules have caused some lenders to curtail underwriting such loans, and some investors are reluctant to own or participate in owning such loans because of the uncertainty of potential litigation and other costs.

As a result, some prospective buyers of manufactured homes may be unable to secure the financing necessary to complete purchases.

In addition, compliance with the law and ongoing rule implementation has caused lenders to incur additional costs to implement new processes, procedures, controls and infrastructure required to comply with the regulations.

Compliance may constrain lenders' ability to profitably price certain loans.

Failure to comply with these regulations, changes in these or other regulations, or the imposition of additional regulations, could affect our earnings, limit our access to capital and have a material adverse effect on our business and results of operations.

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The CFPB issued a final rule amending Regulation C, which became effective on January 1, 2018.

Modifications to the rule became effective July 1, 2020.

Regulation C generally applies to consumer-purpose, closed-end loans and open-end lines of credit that are secured by a dwelling.

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While the CARES Act contains a variety of provisions, including, among other things, unemployment benefit expansion and emergency funding of public health care initiatives, it also grants forbearance rights and foreclosure protection to borrowers with loans purchased by a GSE or insured by FHA, USDA or VA.

Borrowers with these federally backed mortgage loans who are experiencing hardship due to the COVID-19 pandemic may request forbearance for 6 months, regardless of delinquency status.

Forbearance may be extended for an additional 6 months at the borrower's request, and they may request up to two additional three-month extensions, for a maximum of 18 months of total forbearance .

Borrowers with these federally backed mortgage loans who are experiencing hardship due to the COVID-19 pandemic may request forbearance for six months, regardless of delinquency status.

Forbearance may be extended for an additional six months at the borrower's request, and they may request up to two additional three-month extensions, for a maximum of 18 months of total forbearance .

The federal foreclosure moratorium expired on July 31, 2021;

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When the eviction moratorium for federally backed loans ended, mortgage servicers could only proceed with foreclosures if borrowers had abandoned their properties or had not responded to mortgage servicers' efforts to assist with loss mitigation options.

On February 18, 2022, President Biden extended the national emergency declaration for the COVID-19 pandemic beyond March 1, 2022.

On February 10, 2023, President Biden extended the national emergency declaration for the COVID-19 pandemic which ultimately terminated on May 11, 2023.

The Treasury Department issued guidance regarding the Homeowner Assistance Fund ("HAF"), which was established under section 3206 of the American Rescue Plan Act of 2021.

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Eligible state agencies participating in HAF are responsible for the selection and qualification of borrowers to receive HAF funds.

Numerous state and local governments also issued temporary emergency orders recommending or mandating that mortgage servicers accommodate borrowers experiencing hardship due to the COVID-19 pandemic.

These emergency orders include a variety of provisions, including payment forbearance, waiver of late fees on past due payments, restrictions on reporting payment status to credit reporting agencies and moratorium on debt collection activities, foreclosures and evictions.

We have implemented practices and adjusted policies to comply accordingly.

The GSEs require that seller/servicers such as CountryPlace maintain minimum levels of capital and liquidity to be eligible to service single-family mortgage loans guaranteed or owned by the GSEs.

Fannie Mae, Freddie Mac and Ginnie Mae each require that lenders such as CountryPlace maintain minimum levels of capital and liquidity to be eligible to sell or service single-family mortgage loans purchased by the GSEs or included in mortgage-backed securities guaranteed by Ginnie Mae.

The current eligibility requirements became effective on December 31, 2015.

On January 31, 2020, Federal Housing Finance Agency ("FHFA") initially released its "Servicer Eligibility 2.0" proposed enhancements to the requirements for public input, and on February 24, 2022, FHFA issued a revised proposal for public input.

The proposed requirements establish a minimum level of tangible net worth that distinguishes between Ginnie Mae and Fannie Mae and Freddie Mac loan servicing, and include a fixed base capital requirement as well as an incremental charge that reflects the volume and risk of a seller/servicer's servicing portfolio.

The final eligibility requirements are expected to be in effect as of December 31, 2022.

Although the proposed eligibility requirements are not yet final and may change prior to their effective date, CountryPlace has evaluated the proposal and believes that its capital and liquidity are such that it will continue to satisfy the requirements as currently proposed once in effect.

On January 31, 2020, Federal Housing Finance Agency ("FHFA") initially released its "Servicer Eligibility 2.0" proposed enhancements to the requirements for public input.

The requirements establish a minimum level of tangible net worth and liquidity that distinguishes between loans serviced for Ginnie Mae and the GSEs and include a fixed base capital requirement as well as an incremental charge that reflects the volume and risk of a seller/servicer's servicing portfolio.

The requirements also establish minimum liquidity levels based on a fixed percentage of the sellers/servicers loans held for sale and interest rate lock commitments outstanding.

Ginnie Mae eligibility requirements include risk-based capital adjustments for excess value of mortgage servicing rights.

The final net worth and base liquidity requirements become effective on September 30, 2023, and additional loan origination and Ginnie Mae's risk-based capital requirements become effective December 31, 2023.

We have evaluated the proposal and believe that CountryPlace's capital and liquidity are such that we will continue to satisfy the requirements as currently proposed.

On April 19, 2021, the CFPB issued an interim final rule, effective November 30, 2021, amending Regulation F to require debt collectors to provide written notice to certain consumers of their protections under the Center for Disease Control and Prevention's eviction moratorium order of March 29, 2021.

The interim final rule also prohibits certain communications methods and content and places limits on debt collectors' attempts to communicate with consumers who are obligated to repay debt, attorneys representing them or related parties.

On December 9, 2021, the Federal Trade Commission ("FTC") amended the Safeguards Rule, 16 CFR Part 314, which addresses the safeguard and protections that financial institutions are required to have in place to protect consumer financial data and other sensitive information.

FTC delayed the effective date of the amended Safeguards Rule until June 9, 2023.

The amended Safeguards Rule requires administrative, technical and physical safeguards to access, collect, distribute, process, protect, store, use, transmit, dispose of or otherwise handle certain types of consumer information.

Standard Casualty's insurance operations are regulated by the state insurance departments where it underwrites its policies.

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Losses from catastrophic events are limited by reinsurance contracts in place as part of our loss mitigation structure.

Purchasing reinsurance contracts mitigates the frequency and/or severity of losses incurred on insurance policies issued, such as in the case of a catastrophe that generates a large number of serious claims on multiple policies at the same time.

Under these agreements, we may be required to repurchase and reestablish the reinsurance contracts for the remainder of the year to the extent that they have been utilized.

See Note 15 to the Consolidated Financial Statements for additional information.

Environmental, Social and Governance ("ESG")

We are committed to being responsible stewards of the environment by considering our environmental impact and risks while conducting business and complying with environmental laws and regulations.

In order to consider ourselves a successful company, we must also pay attention to and improve our impact on the environment.

Success in our efforts to increase energy efficiency and waste reduction to positively impact lives and being responsible stewards of the environment are inseparable.

Senior management sets the direction regarding company environmental priorities and initiatives and monitors all progress and performance.

The Board of Directors oversees all strategic priorities, including environmental initiatives and periodically reviews reports on Cavco's environmental management, strategy, disclosures, initiatives and policies.

We are conscious that the thoughtful choice of components and materials can further reduce our impact on the environment and provide clean, healthy air quality within the home.

We constantly evaluate new materials, systems and products for our homes to determine where we can make cost efficient changes to improve the quality of living in our homes and the impact on the environment.

We design our homes to be energy efficient and environmentally friendly, including prioritizing, when possible, the use of renewable materials and provide lower utility costs.

Our homes are tightly constructed with upgraded insulation in the attic, walls and floors.

These improvements eliminate air gaps and help maintain the desired indoor temperature and air quality, typically reducing the cost of heating and cooling over similar site-built construction.

We also recognize the responsibility to educate our homebuyers on the impact they can have on the energy efficiency of their home by making some informed decisions during the planning and construction process.

Construction waste currently makes up 60 million tons of the debris filling the nation's limited landfill space each year according to a 2018 Environmental Protection Agency ("EPA") report.

Our manufacturing process of building homes in centralized, environmentally protected building centers allows us to minimize adverse impacts on the environment, resulting in reduced levels of waste.

Building an entire home at a single site factory centralizes and reduces material deliveries as they are ordered and shipped in bulk to one location.

It also allows workers to use public transportation or carpool to the same work location each day.

Rather than having crews and managers potentially driving to multiple work sites each day, our entire work force makes one trip to the manufacturing plant, thereby reducing auto emissions and fuel costs.

Our repetitive manufacturing process minimizes waste and maximizes the utilization of materials that would otherwise go to a landfill.

Every component we build is a system within a system.

This reduces waste and increases efficiency.

There are generally no wasted plumbing, duct or electrical runs or materials.

We are single-minded in our focus to engage, develop and support the people in our Company so we can all have rewarding careers and reach our fullest potential.

At Cavco, we are driven by the conviction that the best way to build value for our stakeholders is by investing in the development of our team members and by providing them with safe, positive workplaces that present opportunities to grow and succeed.

This is an important source of our strength as a company.

As we work together to make a difference in providing affordable homes nationally, we are committed to fostering the dream of homeownership for our team members.

At Cavco, we have launched a formalized internal program to help us support our people.

We call it Homes for our Own, and it generally involves two primary elements:

education on the home buying process and financial assistance programs.

The communities where we live and work sustain local businesses, families and, of course, our employees.

We recognize that Cavco's success is intrinsically linked to the well-being of our local communities.

We are committed to building and strengthening communities in which we do business because it is a critical part of who we are and a natural outgrowth of our ONE Cavco mindset.

Cavco employees across the Company engage in volunteering efforts that are important to their communities.

Recognizing that our local team members often know the needs of their communities best, we launched a company-wide CAVCOmmunity program to provide each location with access to funding to supplement their team's volunteer efforts.

We are enormously proud of our employees' charitable efforts to support the needs of their fellow team members as well as their local community at large.

Every time our team members work to improve the lives of others, it is a reflection of who we are at Cavco.

At Cavco, we are fortunate that the very nature of what we do has a positive impact on individual lives and the communities we serve.

We provide the most affordable opportunity for homeownership.

We take great pride in our impact through the homes, loans and insurance we provide to deserving families.

We recently launched a new consumer-facing affordable home marketplace, taking a big step towards fulfilling our ONE Cavco goal to help customers buy homes that improve their lives.

We are committed to responsible corporate governance.

Governance starts with the Company's leadership, which includes the executive officers and the Company's Board of Directors.

As a public company, officers and Board members are fiscally prudent and legally responsible for proper use of Company funds and assets.

The Company expects high standards of ethical conduct from its Board members, management and all employees as described in Cavco's Corporate Governance Guidelines and Code of Conduct.

We continue to focus on setting clear expectations.

Our Executive Team will continue its stewardship through direct oversight and involvement.

Cavco's Corporate Governance Guidelines, the charters of committees of our Board of Directors and our Code of Conduct can be found in the General Document section on our investor relations website at www.investor.cavco.com.

Unless expressly noted, the information on our investor relations website or any other website is not incorporated by reference in this Annual Report and should not be considered part of this Annual Report or any other filing we make with the Securities Exchange Commission ("SEC").

Additional information on our Corporate Governance policies can be found in our proxy statement filed with the SEC.

Human Capital Resources

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We also have a number of internal programs and campaigns to enhance the culture and capability of our workforce.

Driven by our aspiration to make a difference by focusing on excellence, we are executing our SPARK initiative, which is designed to improve the onboarding experience of our team members and drive retention.

Driven by our aspiration to make a difference by focusing on excellence, we implemented our SPARK initiative, which is designed to improve the onboarding experience of our team members and drive retention.

Our IGNITION program provides leadership training to new managers and other employees in supervisory roles to enhance communication and other critical management skills to improve the oversight and motivation of other employees.

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We also monitor our progress in raising the incomes of our lowest wage earners so they can achieve success for themselves and their families.

In addition, we have started a program called Homes for Our Own.

As mentioned above, we have started a program called Homes for Our Own.

This program generally involves education and financial assistance for employees aspiring to own their own home.

We strive to help employees understand the home buying process, from getting financially ready to buy and maintain a home to how the actual process works.

More information on the above programs and more can be found in our Corporate Responsibility Report, published on our website.

Available Information

The Company's periodic and current reports, proxy statements, as well as any amendments to such filings, are made available free of charge through our web site, www.cavco.com , as soon as reasonably practicable after they are electronically filed with, or furnished to, the Securities and Exchange Commission (the "SEC") pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended (the "Exchange Act").

The Company's periodic and current reports, proxy statements, as well as any amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), are made available free of charge through our web site, www.cavcoindustries.com, as soon as reasonably practicable after they are electronically filed with, or furnished to, the SEC.

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-K

Item 1. Business