Cavco Industries, Inc. (NASDAQ:CVCO) Q1 2020 Earnings Conference Call July 30, 2019 1:00 PM ET
Mark Fusler - Investor Relations
Bill Boor - President and Chief Executive Officer
Dan Urness - Executive Vice President and Chief Financial Officer
Josh Barsetti - Chief Accounting Officer
- Mark Fusler - 投资者关系
- Bill Boor - 总裁兼首席执行官
- Dan Urness - 执行副总裁兼首席财务官
- Josh Barsetti - 首席会计官
Daniel Moore - CJS Securities
Greg Palm - Craig-Hallum Capital Group
- 丹尼尔摩尔 - CJS证券
- Greg Palm - Craig-Hallum Capital Group
Hello and welcome to Cavco Industries First Quarter Fiscal Year 2020. [Operator Instructions] I would now like to introduce your host for today’s call, Mark Fusler. You may begin.
您好，欢迎来到Cavco Industries 2020财年第一季度。[操作员说明]我现在想向您的主持人介绍今天的电话，Mark Fusler。 你可以开始吧。
Good afternoon and thank you for joining us for Cavco Industries’ first quarter fiscal year 2020 earnings and conference call. During the call, you will be hearing from Bill Boor, President and Chief Executive Officer; Dan Urness, Executive Vice President and Chief Financial Officer; and Josh Barsetti, Chief Accounting Officer.
Before we begin, we would like to remind you that the comments made during this conference call by management may contain forward-looking statements under the provisions of the Private Securities Litigation Reform Act of 1995, including statements of expectations or assumptions about Cavco’s financial and operational performance, revenues, earnings per share, cash flow or use, cost savings and operational efficiencies. All forward-looking statements involve risks and uncertainties which could affect Cavco’s actual results and could cause its actual results to differ materially from those expressed in any forward-looking statements made by or on behalf of Cavco.
I encourage you to review Cavco’s filings with the Securities and Exchange Commission, including without limitation, the company’s most recent Forms 10-K and 10-Q, which identify specific factors that may cause actual results or events to differ materially from those described in the forward-looking statements. Some factors that may affect the company’s results include, but are not limited to, the risk of litigation or regulatory action arising from the subpoenas we received from the SEC, potential reputational damage that could result as on these matters under inquiry; adverse industry conditions; our involvement in vertically integrated lines of business, including manufactured housing consumer finance, commercial finance and insurance; market forces and housing demand fluctuations; our business and operations being concentrated in certain geographic regions; loss of any of our executive officers; federal government shutdowns and extensive regulation affecting manufactured housing.
This conference call also contains time-sensitive information that is only accurate as of the date of this broadcast, Tuesday, July 30, 2019. Cavco undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date of this conference call except as required by law.
Now, I would like to turn the call over to Bill Boor, President and Chief Executive officer. Bill?
下午好，感谢您加入我们Cavco Industries的2020财年第一季度财报和电话会议。在电话会议期间，您将听到总裁兼首席执行官Bill Boor的发言; Dan Urness，执行副总裁兼首席财务官;和首席会计官Josh Barsetti。
Thanks, Mark and welcome everyone. The purpose of the call today is obviously to cover the quarterly results. However, we have had some interesting timing with the acquisition that was just communicated through a press release late yesterday. The acquisition is of Destiny Homes, the one plant manufacturer in Moultrie, Georgia and we expect it to close this Friday. We are really excited to welcome the employees to Cavco and we are very positive about how their products and their independent dealer network fit with our existing plant. Destiny produces a complementary moderate to high price point product relative to the existing Cavco plants in that region and the timing and signing of the definitive documents right here at the earnings release has been coincidental. It does give us the opportunity to comment here about – of the Destiny Homes plant will be a great addition to our system manufacturing plants. I would say this is a good work, good teamwork on both sides to get to this point in the process is any indication. It’s going to work out really well for both sides. And again we couldn’t be happier about the deal.
Just turning to the quarter, starting with the big picture, we remain in a period of solid demand and the fundamentals that drive manufactured housing are very encouraging. First, the economy is strong and you can see this by indications such as consumer confidence and employment. Mortgage interest rates remain very attractive, which obviously supports home buying ability. Finally, there is no doubt that long-term demographics are driving household formations and demand for manufactured homes.
We are continually encouraged by the GSE efforts to increase liquidity for both land home and home only financing. As expected, these programs will take time to become meaningful in size. They represent an important recognition of the quality and the value of manufactured homes and the role our industry should be unable to play in improving access to affordable housing. There is a real need for our industry’s products. The affordable housing situation is concerned. Manufactured housing has historically been a big part of the solution in rural areas with attention being focused by the GSEs, HUD and others. Outdated perspectives are changing and we will have opportunities to expand manufactured housing’s impact.
I wanted to briefly comment on the regulatory environment. We recognize and very much appreciate the efforts by HUD to modernize policies and processes. So they are more cost effective and efficient but has also been actively shining a light on the manufactured housing industry as a solution. Along with others in the industry, we are able to display a home on the mall in Washington DC during HUD’s Innovative Housing Showcase in June. It’s a really good event and it gave legislators and others a firsthand understanding of the quality products being produced, much more efficiently than by other means. Again, outdated and incorrect mindsets about MH are changing as they do zoning restrictions should ease to appropriately accommodate our products. That’s really about opening up market opportunities that have been closed to-date.
谢谢，马克，欢迎大家。今天电话会议的目的显然是为了涵盖季度业绩。然而，我们在收购时遇到了一些有趣的时机，这个收购时间是昨天晚些时候通过新闻稿传达的。收购的是Destiny Homes，这是乔治亚州莫尔特里的一家工厂制造商，我们预计它将在本周五关闭。我们非常高兴地欢迎员工加入Cavco，我们非常积极地了解他们的产品及其独立经销商网络如何与我们现有的工厂相匹配。与该地区现有的Cavco工厂相比，Destiny产生了一个补充的中等至高价位产品，并且在收益发布时，最终文件的时间和签署是巧合。它确实让我们有机会在这里发表评论 - Destiny Homes工厂将成为我们系统制造工厂的一个重要补充。我会说这是一项很好的工作，双方的良好团队合作在这个过程中达到这一点是任何迹象。这对双方来说都很有效。我们再次对这笔交易感到高兴。
Turning to the quarter, I would summarize it by saying this has been one of the stability with continued healthy demand. As we have discussed on previous calls, there have been short-term supply chain dynamics that had made it difficult for folks to get a clear handle on underlying demand. We continue to believe that demand is strong for the reasons already cited. In recent quarters, it’s been clear that the market has been concerned about falling backlogs even though those backlogs have been large compared to what we would consider optimal. This quarter, our sequential backlog stabilized essentially the same overall level as last approximately 7 weeks. If we could dial in a constant backlog level, we pick 3 to 4 weeks. However, there is no such thing as a constant backlog level through time and we are very happy to know that the orders are there and we can continue producing to meet the robust customer demand. By definition, the stable backlog this quarter means we are matching production to demand, which remains strong for our products.
Supply chain inventory situation is improving as expected. We view these as near-term fluctuations and expect continued destocking where retail, placements and inventories are still correcting. As Dan will discuss, our plants are doing a very good job of managing price and margin given input cost fluctuations and uncertainty. Most importantly, they continue the ongoing work of making sure our products are updated and what the retailers and homebuyers are looking for, because in the end, this is a local business and I really applaud the people around our company to stay focused on the fundamentals which drive results like those we are proud to report on this quarter.
With that, I will turn it over to Dan Urness to discuss the financial results.
Thank you, Bill. Net revenue for the first fiscal quarter of 2020 was $264 million, up 7% compared to $246.4 million during the prior year’s first fiscal quarter.
To provide a little more clarity, I will explain this increase by operating segment. Factory-built housing is our largest segment and its net revenue increased approximately 7% as well to $249 million from $233 million in the prior year. This is a result of higher home selling prices combined with a more favorable product mix of larger, more amenitized homes. The increase was partially offset by a 2.1% reduction in the number of homes sold given their larger size and added complexity. Financial Services segment net revenue increased 12% and that’s from higher home sales volume, more insurance policies in force and increased interest income on commercial loans outstanding compared to the prior year. These increases were modestly offset by declines in interest income from securitized loan portfolios that continue to amortize.
Consolidated gross profit in the first fiscal quarter as a percentage of net revenue was 22.8%, up from 20.9% in the same period last year. Factory-built housing gross profit improved from the effective home pricing strategies while continuing to benefit from generally lower commodity prices, but we are partially offset by lower financial services gross margins as a percentage of net revenue. This because there was more Texas storm activity that resulted in higher claims expense of the insurance subsidiary compared to the prior year period.
Selling, general and administrative expenses in the fiscal 2020 first quarter as a percentage of net revenue was 13.4% compared to 11.9% during the same quarter last year. The increase was primarily from $2.1 million in amortization of premiums related to additional director and officer insurance that was purchased last fiscal year as well as $800,000 of expenses related to the SEC inquiry. In addition, the company realized higher incentive compensation costs related to the improved financial results. The effective income tax rate was 22.2% for the first fiscal quarter compared to 18.4% in the same quarter of the prior year. The lower effective tax rate in the prior year primarily relates to the greater tax benefits from stock option exercises.
Net income for the first quarter of fiscal 2020 was $21.3 million compared to net income of $19.7 million reported in the same quarter of the prior year, an 8% increase. Net income per diluted share this quarter was $2.31 versus $2.12 in last year’s first quarter. Josh Barsetti, our Chief Accounting Officer, will now discuss the June 29, 2019 balance sheet compared to March 30, 2019.
Thank you, Dan. The cash balance at the end of the quarter was nearly $200 million, up from $187.4 million, 3 months earlier. The increase is mainly from net income offset by changes in working capital. Total commercial loans receivable increased from continued expansion and utilization of commercial loan programs offered. Several balance sheet line items were affected by the new lease accounting standard, which was implemented this quarter. This accounting standard requires that all leases are recorded on the balance sheet, including an asset representing the right to use the specified lease item and liability in the amount of the required payments during the lease term.
The following balance sheet line items were affected. A new operating lease right of use asset in the amount of $12.2 million is now recorded in the operating lease line item in the asset section. The liability section of the balance sheet now includes $3.6 million in accrued liabilities and $9.3 million in operating lease liabilities for the current and non-current portions respectively of the liabilities resulting from normal operating leases. The standard also affects the current and non-current portions of securitized financings and other which now include $1.1 million for property leases where the company will obtain the leased assets at the end of the lease term. These liabilities were previously recorded in accrued liabilities. Lastly, stockholders’ equity was approximately $550 million as of June 29, 2019, up over $20.7 million from the March 30, 2019 balance.
Bill, that completes the financial report.
Thank you, Josh. Well, there is a lot of attention on the MH side. I do want to emphasize a strong contribution by our Financial Services segment. Our insurance company delivered positive results again this quarter as did our mortgage lending business, which further increased consumer loan sales. Both are very strategic parts of the company and they have done an outstanding job of being disciplined in their approach to risk of delivering steady growth.
With that, I think it’s time to turn over for questions.
谢谢，乔希。 那么，MH方面有很多关注。 我想强调我们的金融服务部门的强大贡献。 我们的保险公司本季度再次取得了积极成果，我们的抵押贷款业务也进一步增加了消费者贷款销售额。 两者都是公司非常具有战略意义的部分，他们在实现稳定增长风险方面做得非常出色。
[Operator Instructions] Our first question comes from the line of Daniel Moore with CJS Securities. Your line is open.
[操作员说明]我们的第一个问题来自Daniel Moore与CJS Securities的合作。 你的线是开放的。
Good afternoon or I should say good morning, Bill, Dan and Josh, forgive the background noise I am out of the office here. I want to start with just the macro, Bill, a lot has been made about HUD code shipments being down year-to-date with the weather breaking, comps getting easier, what are your expectations for industry shipments for the back half of the year and what does that imply for the full year in terms of calendar ‘19?
下午好，或者我应该说早上好，比尔，丹和约什，原谅我在这里不在办公室的背景噪音。 我想从宏观开始，比尔，关于HUD代码出货量随着天气的变化而变得越来越年轻，比较容易，你对今年下半年的行业出货量有什么期望？ 那个日历'19'对全年意味着什么呢？
Yes, the thought of getting in that prediction mode kind of scares me a little bit, but one reference we would have inside the company is looking at our – what we see through our retail business. And generally, I would tell you that we have continued to see very good traffic and really good conversion rates for the folks coming to our stores. I think our stores do a really good job, so I am not sure I can generalize too much from what we see there. But when we look year-over-year, the underlying consumer demand that we are all interested in understanding isn’t always that easy to get our hands on directly. It just seems to be pretty good year-over-year from what we can see and I think our sales are showing that too. So you get these short-term disruptions and also acknowledge that our retail business is just in certain geographies. But from what we can see this year is pretty comparable to last year’s underlying demand. And we’re hopeful that that will continue. We don’t really see anything in the macro picture that suggests that we would expect it to turn down at this point.
是的，进入那种预测模式的想法让我有点害怕，但我们公司内部的一个参考就是看我们 - 我们通过零售业务看到的。一般来说，我会告诉你，我们继续看到非常好的流量和非常好的转换率来到我们的商店。我认为我们的商店做得非常好，所以我不确定我能否从我们看到的东西中得到太多的概括。但是，当我们逐年看到时，我们都有兴趣理解的潜在消费者需求并不总是那么容易直接得到。从我们看到的情况来看，它看起来似乎相当不错，我认为我们的销售情况也是如此。因此，您可以获得这些短期中断，并承认我们的零售业务仅限于某些地区。但从我们可以看到的今年与去年的潜在需求相当。我们希望这种情况能够持续下去。我们并没有真正看到宏观图片中的任何内容表明我们希望它在这一点上会下降。
Helpful. And then switching gears to gross margins, 23% range for the last two quarters is the highest level in five years, with factory-built margins hitting new highs. In year-over-year terms, gross margin is up to 200 basis points. How much would you attribute to improved pricing and higher ASPs and efficiency, and how much of it relates to the recent declines in raw materials and input costs? Just trying to get a sense of the sustainability of margins at these levels?
很有帮助。 然后转换到毛利率，过去两个季度的23％范围是五年来的最高水平，工厂建立的利润率创下新高。 与去年同期相比，毛利率高达200个基点。 您认为改善定价，提高平均售价和效率，以及其中有多少与最近原材料和投入成本的下降有关？ 试着了解这些水平的利润率的可持续性？
Yes. Thanks, Dan. This is Dan. and really a combination of both. It’s a function of effective pricing strategies the factories in their various local markets being able to manage and work through the appropriate products at the appropriate price. But we are getting the benefit of material price declines in the last two quarters prominently. So that’s an important part, and one that sometimes is difficult to predict. So we’re getting that benefit. We’re going to continue to monitor and make sure that we are pricing appropriately and accordingly based on market and based on cost. But we certainly wouldn’t count on those benefits continuing either – well mainly because of price uncertainties. The tariff situation, demand for materials throughout the back half of 2019, they’ll all come into play here. But we’ll continue to watch it closely and make sure that we’re maximizing our margin by both cost, and then also efficiency in production.
是。 谢谢，丹。 这是丹。 而且真的是两者的结合。 它是有效定价策略的一个功能，各个当地市场的工厂能够以适当的价格管理和处理相应的产品。 但是，我们在最近两个季度显着地获得了材料价格下跌的好处。 所以这是一个重要的部分，有时很难预测。 所以我们得到了这个好处。 我们将继续监控并确保我们根据市场和成本进行适当的定价。 但我们当然不会指望这些利益继续下去 - 主要是因为价格的不确定性。 关税形势，2019年后半期的材料需求，都将在这里发挥作用。 但我们将继续密切关注并确保我们通过成本和生产效率来最大化我们的利润。
Great. And last for me, Destiny Industries. How much – according to stat surveys, it looks like they are shipping a couple of hundred homes and have grown nicely over the past year or so? Bill, can you tell us more about purchase price? What type of shipment levels they are at today versus capacity to continue to grow? What product profile looks like? Anymore detail on that would be very helpful.
非常好。 对我来说，Destiny Industries。 多少 - 根据统计调查，它看起来像是在运送几百套住房，并且在过去一年左右的时间里发展得很好？ 比尔，你能告诉我们更多有关购买价格的信息吗？ 他们今天的出货水平与继续增长的能力有何不同？ 什么产品简介看起来像？ 再详细一点就会非常有帮助。
I can cover part of that, and just to kind of get that topic started, if you want to cover a couple of things there. But specific to their production, we look at them as a very solid producer. It’s a good factory, a good sized factory that is producing a good capacity utilization rates currently. But there is room for more. They have the opportunity to build more based on the footprint that they have, and we think that there is going to be opportunity in kind of like build referred to with our independent distribution makeup in that area combined with theirs. There should be some good dual brand penetration opportunities. They primarily served Florida, Georgia and surrounding states, and we feel real good about how things marry up there, but they’re mainly producing mid-to-higher price points. A good fit in a modern facility. We just don’t have numbers to breakout for you, just yes, but they’re going to be good accretive contributors to the bottom line as well as good contributors to the unit production of the company going forward, we expect.
Yes, this might be a little bit repetitive, but sometimes you look at a deal and you know that – you believe and you think you can get them up to a higher level of performance, you know, there are projects, and this is not that kind of deal, this is a plant that performs very well. The reason we’re so excited about it is because it just seems to fit like a hand and glove in our system. Dan has already said this, but their product tends to be mid to higher price point. That’s something that complements us in that region. We think that we might be able to get that plants from distribution with people that we work with, and we might get some distribution from some of the folks they work with. So, Dan, I know you’re looking for, – you know, you’d like to get a lot of numbers. We’re not going to be able to disclose a lot on the numbers side, but I can give you a character of the transaction. This is buying something that’s already a good performer, and we think we can help each other out.
是的，这可能有点重复，但有时你看一个交易，你知道 - 你相信，你认为你可以让他们达到更高的性能水平，你知道，有项目，这不是这种交易，这是一个表现很好的工厂。我们之所以如此兴奋，是因为它似乎恰好适合我们系统中的手和手套。丹已经说过这个，但他们的产品往往价格中等到更高。这是在该地区补充我们的东西。我们认为我们可能能够与我们合作的人分发这些植物，我们可能会从他们合作的一些人那里得到一些分布。所以，丹，我知道你在寻找， - 你知道，你想得到很多数字。我们无法在数字方面披露很多内容，但我可以告诉你交易的特征。这是购买已经表现良好的东西，我们认为我们可以互相帮助。
Alright. That’s helpful. I’ll jump back in queue with any follow up. Thank you.
好的。 这很有帮助。 任何跟进都会重新排队。 谢谢。
[Operator Instructions] Our next question comes from the line of Greg Palm with Craig-Hallum Capital Group. Your line is open.
[操作员说明]我们的下一个问题来自Greg Palm与Craig-Hallum Capital Group的合作。 你的线是开放的。
Thanks. Thanks for taking the questions today. I guess just kind of following up on some of the macro commentary and the demand environment, in general. Can you provide any commentary around, you know, order rates by geography? And I’m just kind of curious as it relates to kind of the cadence of orders throughout the quarter, you know, sort of how did they build, April, May, June? I don’t know if there’s any qualified commentary you can provide, and maybe what you’re seeing so far in July as well would be helpful?
谢谢。 感谢您今天提出问题。 总的来说，我想对一些宏观评论和需求环境采取后续行动。 您能否根据地理位置提供任何评论？ 而且我有点好奇，因为它与整个季度的订单节奏有关，你知道，他们是如何建造的，4月，5月，6月？ 我不知道你能提供任何合格的评论，也许你在7月到目前为止所看到的也会有所帮助吗？
I want to make a general comment about it that we obviously looked at it. I’ve been personally digging into it just in my early time in the company, at probably a pretty granular level, and trying to understand the quarter by quarter movements. We’ve made – we’ve focused a little bit of attention on the Southeast and Texas and locations like that where backlogs had dropped a bit with – without rehashing it all with what I call the supply chain dynamics that were at play last several quarters. I think if we keep focusing on those regions and calling them out, we’re probably overemphasizing something because, you know, the Southeast seems to be steadying, and I think that inventory backlog has started to work its way through, as we predicted. We thought it would take well into the summer, and here we are – we feel like it’s progressed. When we look at it on a granular basis, our order rates are good and backlogs are stabilizing. And I’d say the same across Texas as well. So, we’ve been part of pointing those areas out. But as I’m sitting here today looking at the information, I think we will be misleading people to kind of keep pointing them out as problem areas, in my opinion. So order rates, as we’ve tried to give a feel for, I mean, we look at both traffic and our retail environment, and we also look at order rates in our factories to refill that pipeline. And we’re feeling good about both, and we feel like things are very stable out there right now.
我想对它进行一般性评论，我们明显地看了它。我一直在公司的早期阶段深入挖掘它，可能是一个非常精细的层面，并试图了解逐季度的变动。我们已经做了 - 我们把注意力集中在东南部和德克萨斯以及那些积压已经下降了一点点的地方 - 没有用我称之为过去几个季度的供应链动态来重复这一切。我认为如果我们继续关注这些地区并将它们召集出来，我们可能过分强调某些东西，因为，你知道，东南部似乎在稳定，我认为库存积压已经开始成功，正如我们预测的那样。我们认为这将很好地进入夏天，我们在这里 - 我们觉得它已经取得了进展。当我们以细粒度的方式看待它时，我们的订单率很好，而且积压工作正在稳定下来。我也会在德克萨斯州说同样的话。所以，我们已经成为指出这些领域的一部分。但是，正如我今天坐在这里查看信息一样，我认为在我看来，我们会误导人们将其指出为问题区域。因此，正如我们试图给出的订单率一样，我的意思是，我们关注交通和零售环境，我们也会考虑工厂的订单率来重新填充该管道。我们对两者都感觉良好，我们觉得现在的情况非常稳定。
And Greg, I would just add. This is Dan. The order rates in our higher price point products in any region around the country are relatively strong right now. We’re seeing that specifically in factories that focus on those higher price point products that continues to be remain strong. And we were getting good demand in the mid to higher price point product, and that’s been a constant even through the turbulence over the last year.
而格雷格，我只想补充一下。 这是丹。 我们在全国任何地区的高价位产品的订单率现在相对较强。 我们特别看到那些专注于那些继续保持强劲的高价位产品的工厂。 我们在中等价位产品中获得了良好的需求，即使在去年的动荡中也是如此。
I think that’s a great point, Dan is adding there, and it’s interesting because all the focus – and I focus on it as much as anyone all the focus about affordable housing in this country. It’s kind of interesting that the mix is shifting up right now. And if there are places where inventory and order rates are behind relatively, it’s in the lower end product. So that’s something we’ll be keeping an eye on. It might be interesting to watch as we go forward.
我认为这是一个很好的观点，Dan正在那里添加，这很有意思，因为所有的重点 - 我关注它，就像所有人都关注这个国家的经济适用房一样。 有趣的是，混合现在正在转变。 如果存在库存和订单率相对落后的地方，那么它就属于低端产品。 这就是我们要关注的事情。 在我们前进的过程中观察可能会很有趣。
That’s helpful commentary. What about from a geographical standpoint? What are the areas that you’re seeing the strongest demand? Or maybe backlogs are still stretched out farther than what you would want?
这是有用的评论。 从地理角度来看怎么样？ 您看到最强烈需求的领域是什么？ 或者也许积压工作仍然比你想要的更远？
So, we’ve got factories and we think the key geographic markets across the country. With the exception of the Northeast, we don’t have a strong presence. So we really maybe couldn’t speak to that too much. But generally the demand in the areas we’re getting a good portion of that. There’s areas where we have stronger presence than others. But, for instance, if we were to call one out, the Southwest, in particular, it continues to be stronger. Our factories here continue to have good order rates from these higher – these higher price points. Florida continues to be very strong and has been again, it’s an area where we sell a mix of products, but the higher price points included. So, really don’t have too much to add to what we’ve already said. Just reiterate some of those points.
因此，我们有工厂，我们认为全国的主要地理市场。 除东北外，我们没有强大的存在。 所以我们真的可能不会那么说。 但一般来说，这些领域的需求我们正在获得很大一部分。 我们的领域比其他领域更强大。 但是，例如，如果我们要打电话给一个，特别是西南部，它会继续变得更强大。 我们这里的工厂继续从这些更高的价格点获得良好的订单率 - 这些更高的价格点。 佛罗里达州继续保持强劲势头并再次出现，这是我们销售混合产品的一个领域，但价格更高。 所以，真的没有太多东西可以添加到我们已经说过的内容中。 重申其中一些观点。
Southwest still has pretty high backlogs relative to the rest of what we see in the country. And I think we’d say both Florida and the Southwest, a portion of why that is because the community business is so strong. So if we diced it that way as well, and looked at community business versus retail stores, we’re noticing that in the areas that community business is really driving, we’ve got pretty long backlogs.
相对于我们在该国看到的其他东西，西南航空的积压仍然相当高。 而且我认为我们会说佛罗里达州和西南地区，这也是因为社区业务如此强大。 因此，如果我们也以这种方式进行评分，并考虑社区业务与零售店，我们注意到在社区业务真正推动的领域，我们有很长的积压。
Yes, makes sense it kind of dovetails into my next question. Curious, you know, sort of how much focus you’re putting in on? You made an acquisition, but emphasis on putting on sort of increasing efficiencies in throughput at the existing plants. So, I mean, basically producing more units on the existing footprint rather than Greenfield and urge additional M&A. So is that a bigger focus area for you, given labor and everything out there that seems to be a challenge industry wide?
是的，这有点像我的下一个问题。 好奇，你知道，有多关注你的重点？ 您进行了收购，但强调在现有工厂中提高生产效率。 所以，我的意思是，基本上在现有的足迹而不是绿地上生产更多单位，并敦促进行额外的并购。 对于你来说，这是一个更大的关注领域，劳动力和那里的一切似乎都是行业的挑战吗？
Yes, absolutely, I mean, we worked in – internally I just had meeting with our manufacturing guys last week, kind of leaders for that organization, and we’re very much rolling up our sleeves, not that it wasn’t being done before. I think it’s been ongoing focus. But we think there is opportunity to continue to push ourselves to improve in our existing framework. And I’m really encouraged by the discussions I’ve been part of since I joined the company on that. So no taking the eye off the ball, and we got to be good operators first and foremost. And that’s a big emphasis here.
是的，绝对，我的意思是，我们在内部工作 - 上周我刚刚与我们的制造人员会面，那个组织的领导者，我们非常卷起袖子，而不是之前没有完成。 我认为这一直是关注焦点。 但我们认为有机会继续推动我们改进现有框架。 自从我加入公司以来，我一直参与的讨论使我感到非常鼓舞。 因此，不要把目光从球上移开，我们必须首先成为优秀的运营商。 这是一个重点。
And we have the capacity to do it.
Yes, we’ve got opportunities. I mean, there’s no doubt. Greg, I’ll speak for myself. I’m proud of the way these guys perform in the good operations that are people are running. But I think we all agree inside the company that we can even do better. So, that’s what we’re focused on.
是的，我们有机会。 我的意思是，毫无疑问。 格雷格，我会为自己说话。 我为这些人在人们正在运行的良好运营中的表现感到自豪。 但我认为我们在公司内部都同意我们甚至可以做得更好。 所以，这就是我们关注的重点。
And, Bill, now that you’ve had some more time at running the day-to-day operations, just kind of curious, what you view as some of the biggest opportunities for the company both in the near and long term?
Yes. There’s going to be some consistency in this answer. You’ve seen a couple of them even in this quarter. I mean, acquisitions are of interest to us. We’ve been able to put one over the finish line. And I’ve already said we’re very excited about, and we’ll continue to look at doing that to strengthen our system. You’ve asked the question about kind of opportunities within our system to continue to push forward and do better. I think we can become more efficient. The labor challenges remain. And I think trying to work on retention, which is a complicated discussion, it would take more time than we have, is critical and also trying to be as efficient as we can in our plants, and that gives your affordable housing and then not be very efficient on what we do. So those are all priorities. I’ve talked in the past about we’re going to continue, I don’t have a lot of answers on this yet, but we’re going to continue looking at the lending business to see what opportunities we have there as well, particularly in the home-only side and we may increase the use of our balance sheet in that area and resolved on anything yet. But I think there could be a strategic opportunity for us. So those are kind of things that are top of mind at this point.
Great, last one, should we expect anything new, any update on the SEC investigation when the Q comes out?
I don’t think it will be – I don’t expect any, when the Q comes out, we will be the first ones to let everyone know when there’s an update there. But right now, we’re just going to continue – we said we’ll do which is focused on supporting the SEC’s work. So, yes nothing really new to report there.
我认为不会 - 我不指望任何问题，当Q出来时，我们将成为第一个让大家知道何时有更新的人。 但是现在，我们只是继续 - 我们说我们会做的是专注于支持美国证券交易委员会的工作。 那么，是的，没有什么新的报道。
Okay, fair enough. Nice, really nice results here. Good luck going forward.
好的，公平的。 这里很好，非常好的结果。 祝你好运前进。
Thanks, Greg. I appreciate it.
Thank you. We have a follow-up question from Daniel Moore with CJS Securities. Your line is open.
谢谢。 我们有来自丹尼尔摩尔与CJS证券的后续问题。 你的线是开放的。
Thank you. You’re just dovetailing on that. I think you called that $800,000 expense related to SEC investigation this quarter. What would be the expectation for fiscal Q2 and beyond the stage?
谢谢。 你只是跟它衔接。 我想你在本季度调查了与美国证券交易委员会调查相关的80万美元费用。 对于第二财政预算以及超出阶段的期望是什么？
Well, we don’t have a number to put out there. It’s still ongoing, as Bill mentioned. So we’ll have some continued expense. But, as we work through it, we’re getting through some things that were hurdles initially, but there is ongoing expense. I guess, I’m not sure exactly how to characterize that other than that we’ll continue to report the number as long as it’s meaningful.
好吧，我们没有一个号码可以放在那里。 比尔提到，它仍在继续。 所以我们会有一些持续的费用。 但是，当我们通过它时，我们已经完成了一些最初遇到障碍的事情，但是有持续的费用。 我想，我不确定如何表征除此之外我们将继续报告该数字，只要它有意义。
Got it. And then lastly, it’s been over a year since FEMA has taken any shipments, given the ongoing weather related volatility across a lot of regions in the last 12 months any sense of where they are in terms of inventory levels and when the agency might start ordering again? Thanks.
得到它了。 最后，鉴于FEMA已采取任何出货量已超过一年，因为过去12个月中许多地区持续存在天气相关的波动，无论他们在库存水平方面的位置以及该机构何时可能开始订购 再次？ 谢谢。
I don’t have any sense. I’m looking around a room here. I don’t really have anything to tell you on that, Dan. I don’t have [indiscernible] for you.
我没有任何意义。 我在这里看房间。 丹，我真的没什么可告诉你的。 我没有[音频不清晰]给你。
Yes, we don’t have a lot of insight on that certainly as it relates to any kind of pending orders or things like that. The inventory levels are a little tough to track. It depends on how you look at things. But I know that they have been active in assessing options and opportunities in the MH world. And we’ve been part of some discussions there and trying to help where we can, so that they’re aware of our resources, what we can do, and what made to bring to the table. We certainly would like to help out if any needs occur, but what look at those on a case by case basis. There’s no reason to think that there won’t be any potential opportunity in the future to help for natural disaster relief, but no real current information to provide at this time.
是的，我们当然没有很多洞察力，因为它涉及任何类型的挂单或类似的事情。 库存水平有点难以追踪。 这取决于你如何看待事物。 但我知道他们一直积极评估MH世界的选择和机会。 我们参与了一些讨论，并尽力帮助我们，让他们了解我们的资源，我们可以做些什么以及带来什么。 如果有任何需要，我们当然希望提供帮助，但是根据具体情况来看看这些需求。 没有理由认为将来不会有任何潜在的机会来帮助自然灾害救济，但目前还没有真正的当前信息。
Understood. Thank you. Nice results in the quarter. And I appreciate the color.
了解。 谢谢。 本季度结果不错。 我很欣赏这种颜色。
Thank you, Dan.
At this time, I’m showing no further questions. I would now like to turn the call back over to Bill Boor, President and Chief Executive Officer for closing remarks.
Okay. And I would like to close here with – we feel good about things and we appreciate the ongoing dialogue with you all. So, let us know if there are additional questions, and thanks for being on the call today.
好的。 我想在这里结束 - 我们对事情感觉良好，我们感谢与你们所有人的持续对话。 所以，如果还有其他问题，请告诉我们，并感谢今天的来电。
Ladies and gentleman that concludes today’s call thank you for participating you may now disconnect. Everyone have a wonderful day.
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