What changed in this filing

/stocks — the workspaceLOADING

Item 1. Business

2025-05-23 compared with 2024-05-24 · 36 added, 50 removed, 368 unchanged (19% of the section changed)

2 unchanged sentences

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, MidCountry and Solitaire.

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

35 unchanged sentences

military troops (e.g., barracks).

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

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

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

2 unchanged sentences

Most of these homes are single-story and generally range in size from approximately 500 to 3,300 square feet but may be larger in the case of multi-level modular homes.

Each home typically contains a living room, dining area, kitchen, one to five bedrooms and one or more bathrooms, is equipped with central heat and hot water systems, kitchen appliances, floor coverings and window treatments.

Each home typically contains a living room, dining area, kitchen, one to five bedrooms and one or more bathrooms and is equipped with central heat and hot water systems, kitchen appliances, floor coverings and window treatments.

Upgrades can include fireplaces, central air conditioning, tile roofs, high ceilings, skylights, hardwood floors, custom cabinetry, granite countertops and eco-friendly elements.

5 unchanged sentences

We have developed engineering systems that, through the use of computer-aided technology, permit customization of homes and assist with product development and enhancement.

We work with a variety of partners to meet the expanding range of housing needs, including home buyer's private land, planned neighborhoods, recreational or resort properties and workforce accommodations for agriculture and industry.

We work with a variety of partners to meet the expanding range of housing needs, including a home buyer's private land, planned neighborhoods, recreational or resort properties and workforce accommodations for agriculture and industry.

We employ a concerted effort to identify niche market opportunities where our diverse product lines and custom building capabilities provide us with a competitive advantage.

14 unchanged sentences

Nampa, Idaho;

Phoenix, Glendale and Goodyear, Arizona;

Glendale, Goodyear and Phoenix, Arizona;

Deming, New Mexico;

1 unchanged sentence

Austin, Fort Worth, Seguin and Waco, Texas;

Ojinaga, Mexico (2);

Ojinaga, Mexico (two lines);

Montevideo, Minnesota;

3 unchanged sentences

Douglas and Moultrie, Georgia;

Shippenville (two lines) and Emlenton, Pennsylvania;

Shippenville (two) and Emlenton, Pennsylvania;

Martinsville and Rocky Mount, Virginia;

7 unchanged sentences

Because homes are produced to fill existing wholesale orders, our factories generally do not carry finished goods inventories, except for homes awaiting delivery.

Materials used in homebuilding operations are mainly standard items carried by major suppliers and consist of wood, wood products, steel, gypsum wallboard, windows, doors, fiberglass insulation, carpet, vinyl, fasteners, plumbing materials, aluminum, appliances and electrical items.

Materials used in homebuilding operations are mainly standard items carried by major suppliers and include wood, wood products, steel, gypsum wallboard, windows, doors, fiberglass insulation, carpet, vinyl, fasteners, plumbing materials, aluminum, appliances and electrical items.

Fluctuations in the cost of materials and labor may affect gross margins from home sales to the extent that costs cannot be efficiently matched to the home sales price.

4 unchanged sentences

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 March 30, 2024 was approximately $191 million in wholesale sales values, down $53 million from $244 million one year earlier.

Our home order backlog at March 29, 2025 was approximately $197 million in wholesale sales values, up $6 million from $191 million one year earlier.

Distributors may cancel orders prior to production without penalty.

5 unchanged sentences

As of March 29, 2025, there were a total of 80 Company-owned retail stores, located in Oregon, Arizona, Nevada, New Mexico, Texas, Indiana, Oklahoma, Florida and New York.

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

Forty-six 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.

3 unchanged sentences

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

As of March 30, 2024, we had a network of independent distributors, of whom 10% were in North Carolina, 9% in Arizona, 6% in each of Florida and Texas, 5% each in California, New York and South Carolina, based on the quantity of wholesale shipments during fiscal year 2024.

As of March 29, 2025, we had a network of independent distributors, of whom 9% were in North Carolina, 8% in Arizona, 7% in Texas, 6% in South Carolina, and 5% in each of California, Florida, Georgia and New York, based on the quantity of wholesale shipments during fiscal year 2025.

The remaining 50% were in 40 other states and Canada.

11 unchanged sentences

For a description of wholesale floor plan financing arrangements used by independent distributors and our obligations in connection with these arrangements, see "Company Provided Financing — Commercial Financing" below.

In the fourth quarter of fiscal 2025, the Company modified its extensive manufacturing brand lineup by changing all of its various trade names to a new, unified brand under the Cavco name, followed by the city it’s located in.

This new branding approach aligns each facility under the strength of the corporate brand while honoring the local expertise and strong reputations built in each region.

To further enhance customer experience and marketing efficiency, the Company is also streamlining its product segmentation.

Going forward, homes will be marketed by clearly defined product lines instead of legacy brand names.

This change is designed to improve digital discoverability and simplify the home buying process for consumers, dealers, community developers, and partners.

We provide the retail home buyer a one-year limited warranty covering defects in material or workmanship in home structure, plumbing and electrical systems.

15 unchanged sentences

For certain loans serviced for Ginnie Mae and Freddie Mac, and home-only loans serviced for certain other investors, we must remit scheduled monthly principal and/or interest payments and principal curtailments regardless of whether monthly mortgage payments are collected from borrowers.

Ginnie Mae permits cash obligations on loans in forbearance from COVID-19 to be offset by other incoming cash flows from loans such as loan pre-payments.

Through fiscal year 2024, monthly collections of principal and interest from borrowers have exceeded scheduled principal and interest payments owed to investors;

however, any future regulatory mandates requiring extended forbearance could negatively impact future cash obligations.

We believe that providing financing alternatives improves our responsiveness to the financing needs of prospective home buyers and presents opportunities for additional sources of loan origination and servicing revenues.

18 unchanged sentences

We also work independently and with industry trade associations to encourage favorable legislative and GSE action to address the financing needs of buyers of affordable homes.

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 2008Fannie Mae and Freddie Mac periodically update their Underserved Markets Plans that describe, with specificity, the actions they would take over the applicable plan period to fulfill the "Duty to Serve" obligation.

Fannie Mae and Freddie Mac periodically update their Underserved Markets Plans that describe, with specificity, the actions they would take over the applicable plan period to fulfill the "Duty to Serve" obligation.

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

8 unchanged sentences

Our obligation under these repurchase agreements ceases upon the purchase of the home by the retail customer.

The maximum amount of contingent obligations under such repurchase agreements was approximately $120.5 million and $177.9 million as of March 30, 2024 and April 1, 2023, respectively.

The decrease is the result of lower home sales prices and a decreased number of units under these programs.

The maximum amount of contingent obligations under such repurchase agreements was approximately $133.1 million and $120.5 million as of March 29, 2025 and March 30, 2024, respectively.

The increase is the result of 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.

5 unchanged sentences

Manufactured housing provides an alternative to other forms of new low-cost housing such as site-built housing and condominiums, and to existing housing such as pre-owned homes and apartments.

According to statistics published by the Institute for Building Technology and Safety and the United States Department of Commerce, Bureau of the Census, for the 2023 calendar year, manufactured housing wholesale shipments of homes constructed in accordance with the HUD code accounted for an estimated 11.8% of all new single-family homes sold.

According to data reported by the Manufactured Housing Institute, approximatel y 89,000 H UD code manufactured homes were shipped during calendar year 2023, compared to the 113,000 shipped during calendar year 2022 and 106,000 shipments in 2021.

According to statistics published by the Manufactured Housing Institute, for the 2024 calendar year, manufactured housing wholesale shipments of homes constructed in accordance with the HUD code accounted for an estimated 13.1% of all new single-family homes sold.

According to data reported by the Manufactured Housing Institute, approximately 103,000 HUD code manufactured homes were shipped during calendar year 2024, compared to the 89,000 shipped during calendar year 2023 and 113,000 shipments in 2022.

Home Buyer Demographics.

10 unchanged sentences

The two largest manufactured housing consumer demographics, young adults and those who are age 55 and older, are both growing.

According to World Bank, the U.S.

According to World Bank population estimates and projections released December 2024, the U.S.

adult population is estimated to expand by approximately 7.7 million between 2025 and 2030.

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, is 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 who fall into this age group.

This group is similarly interested in the value proposition and energy efficiency;

however, they are also motivated by the low maintenance requirements of factory-built homes and by the lifestyle offered by planned communities that are specifically designed for homeowners who 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.

1 unchanged sentence

There are a number of other national manufacturers competing for a significant share of the manufactured housing market in the United States, including Clayton Homes, Inc.

and Skyline Champion Corporation, which may possess greater financial, manufacturing, distribution and marketing resources than us.

and Champion Corporation, which may possess greater financial, manufacturing, distribution and marketing resources than us.

There are significant competitors to CountryPlace in the markets served.

2 unchanged sentences

and Berkshire Hathaway, Inc.;

Triad Financial Services, Inc.;

and Cascade Financial Services.

Vanderbilt Mortgage and Finance Inc.;

and Triad Financial Services, Inc an affiliate of Champions Homes, Inc.

Certain of these competitors are larger than CountryPlace and have access to substantially more capital.

46 unchanged sentences

This has facilitated access to financing and makes the overall home buying experience smoother for the consumer.

Certain CFPB mortgage finance rules required under the Dodd-Frank Act, and modified by the Dodd-Frank Reform Act, apply to consumer credit transactions secured by a dwelling, which include real property mortgages and home-only loans secured by manufactured homes.

Certain CFPB mortgage finance rules required under the Dodd-Frank Act, as modified by the Dodd-Frank Reform Act, apply to consumer credit transactions secured by a dwelling, which include real property mortgages and home-only loans secured by manufactured homes.

These rules defined standards for origination of a Qualified Mortgage ("QM"), established specific requirements for lenders to prove borrowers' ability to repay loans and outlined the conditions under which QMs are subject to safe harbor limitations on liability to borrowers.

36 unchanged sentences

We are aware of only a small number of loans currently being securitized under the Ginnie Mae program.

On March 27, 2020, the CARES Act was signed into law.

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 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;

however, mortgage servicers were precluded from proceeding with foreclosure until January 1, 2022.

Effective August 31, 2021, the CFPB published rules to help homeowners pursue loss mitigation options with mortgage servicers to avoid foreclosure.

These rules allowed mortgage servicers to offer certain streamlined loss mitigation options.

The FHA allowed for an extension of the foreclosure-related eviction moratorium for foreclosed borrowers through September 30, 2021.

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 opti ons.

On May 11, 2023, the national emergency declaration for the COVID-19 pandemic ended.

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.

The HAF was established to mitigate financial hardships associated with the COVID-19 pandemic by providing funds to eligible state agencies for the purpose of preventing homeowner mortgage delinquencies, defaults, foreclosures, loss of utilities or home energy services and displacements of homeowners experiencing financial hardship after January 21, 2020, through qualified expenditures related to mortgages and housing.

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

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.

18 unchanged sentences

The housing industry is generally subject to seasonal fluctuations based on new home buyer purchasing patterns.

Demand for our core new home products typically peaks each spring and summer before declining in the winter, consistent with the overall housing industry, although this pattern became distorted during the COVID-19 pandemic.

Demand for our core new home products typically peaks each spring and summer before declining in the winter, consistent with the overall housing industry.

Diversification among our product lines and operations has partially offset the impact of any seasonal fluctuations.

8 unchanged sentences

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

Environmental, Social and Governance ("ESG")

Environmental, Social and Governance

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.

5 unchanged sentences

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.

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

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

14 unchanged sentences

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 support our people.

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

Homes for our Own is a formalized internal program that provides support for our people, and it generally involves two primary elements:

education on the home buying process and financial assistance programs.

9 unchanged sentences

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 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.

10 unchanged sentences

Our workforce is made up of approximately 7,000 skilled full-time team members.

We believe that an engaged, productive workforce is critically important to creating shareholder value.

We believe that an engaged, productive workforce is critically important to creating stockholder value.

To that end, we are committed to providing a safe workplace and opportunities for professional growth and advancement based on performance, qualification, demonstrated skills and achievement at a fair wage.

11 unchanged sentences

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

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.

Our Homes for Our Own 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.

2 unchanged sentences

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