Cavco Industries, Inc. : Cavco Industries Reports Fiscal Third Quarter Results

For additional information, contact:

N e w s R e l e a s e

Joseph Stegmayer Daniel Urness Chairman and CEO CFO and Treasurer [e-mail] [e-mail]

Phone: [phone]

On the Internet: www.cavco.com

FOR IMMEDIATE RELEASE

CAVCO INDUSTRIES REPORTS FISCAL THIRD QUARTER RESULTS

PHOENIX, January 31, 2013 - Cavco Industries, Inc. (NASDAQ: CVCO) today announced financial results for the third quarter and first nine months ended December 29, 2012 of its fiscal year 2013.

Net sales for the third quarter of fiscal 2013 totaled $114.6 million, compared to $114.6 million for the third quarter of fiscal year 2012. Net income for the fiscal 2013 third quarter was $3.0 million, compared to $3.0 million reported in the same quarter one year ago.

Net income attributable to Cavco stockholders for the fiscal 2013 third quarter was $1.5 million, compared to $1.7 million reported in the same quarter one year ago. Net income per share based on basic and diluted weighted average shares outstanding for the quarter ended December 29, 2012 was $0.21, versus basic and diluted net income per share for the quarter ended December 31, 2011, of $0.24. The Company has changed to a 52-53 week fiscal year ending on the Saturday nearest to March 31 of each year in order to improve the alignment of financial and business processes and to streamline financial reporting. This change is effective with the end of Cavco's fiscal third quarter and nine months ended December 29, 2012, which is comparable to the fiscal third quarter and nine months ended December 31, 2011.

For the first nine months of fiscal 2013, net sales totaled $343.5 million, versus $343.6 million for the comparable prior year period. Net income attributable to Cavco stockholders for the first nine months of fiscal 2013 was $3.6 million compared to $13.6 million last year. Net income attributable to Cavco stockholders for the nine months ended December

31, 2011 included one-half (or approximately $11.0 million) of the bargain purchase gain recognized from the Palm

Harbor transaction, which occurred on April 23, 2011. This bargain purchase gain allocation was consistent with Cavco's ownership percentage of Palm Harbor. For the nine months ended December 29, 2012, net income per share based on basic and diluted weighted average shares outstanding was $0.51, versus basic and diluted net income per share of $1.98 and $1.96, respectively, for the prior year period.

Referring to the fiscal 2013 third quarter results, Joseph Stegmayer, Chairman, President and Chief Executive Officer said, "We are pleased with the continued contributions and progress of our acquired businesses. However, increasing homebuilding component and raw material costs, continued competitive pricing pressures, market demand for smaller and lower price-point homes and a higher income tax provision adversely affected our earnings during the quarter. The average sales price per home was approximately $50,100 during the third quarter of fiscal year 2013 compared to

$53,200 during the third quarter last year, a 5.8% decrease. On a positive note, home sales increased this quarter to 2,065 homes, 4.7% higher than 1,972 homes sold during the same quarter last year."

"We continue to expand our presence in key markets in the United States and have made progress in other regions. Our financial services subsidiaries are broadening their product offerings to manufactured home buyers in current and new geographic areas, and continue to be solid contributors to our financial results. Rising apartment occupancy rates and higher rental costs should make affordable manufactured housing an increasingly attractive alternative for many people. As employment and consumer confidence levels improve, we anticipate rising demand for our homes," Mr. Stegmayer concluded.

Cavco's management will hold a conference call to review these results tomorrow, February 1, 2013, at 11:00

AM (Eastern Time). Interested parties can access a live webcast of the conference call on the Internet at www.cavco.com under the Investor Relations link. An archive of the webcast and presentation will be available for 90 days

at www.cavco.com under the Investor Relations link.

Cavco Industries, Inc., headquartered in Phoenix, Arizona, designs and produces factory-built housing products primarily distributed through a network of independent and company-owned retailers. The Company is the second largest producer of manufactured homes in the United States, based on reported wholesale shipments, marketed under a variety of brand names including Cavco Homes, Fleetwood Homes and Palm Harbor Homes. The Company is also a leading producer of park model homes, vacation cabins, and systems-built commercial structures, as well as modular homes built primarily under the Nationwide Homes brand. Its mortgage subsidiary, CountryPlace, is an approved Fannie Mae and Ginnie Mae seller/servicer and offers conforming mortgages to purchasers of factory-built and site-built homes. Its insurance subsidiary, Standard, provides property and casualty insurance to owners of manufactured homes.

Certain statements contained in this release are forward-looking statements within the meaning of Section

27A of the Securities Act of 1933, Section 21E of the Securities and Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. In general, all statements that are not historical in nature are forward-looking. Forward-looking statements are typically included, for example, in discussions regarding the manufactured housing and site-built housing industries; our financial performance and operating results; and the expected effect of certain

risks and uncertainties on our business, financial condition and results of operations. All forward-looking statements are subject to risks and uncertainties, many of which are beyond our control. As a result, our actual results or performance may differ materially from anticipated results or performance. Factors that could cause such differences to occur include, but are not limited to: adverse industry conditions; general deterioration in economic conditions and continued turmoil in the credit markets; a write-off of all or part of our goodwill, which could

adversely affect operating results and net worth; the cyclical and seasonal nature of our business; limitations on our ability to raise capital; curtailment of available financing in the manufactured housing industry; our contingent repurchase obligations related to wholesale financing; competition; our ability to maintain relationships with retailers; labor shortages; pricing and availability of raw materials; unfavorable zoning ordinances; increased costs of healthcare benefits to employees; our ability to successfully integrate Fleetwood Homes, Palm Harbor, and any

future acquisition or attain the anticipated benefits of such acquisition; the risk that the acquisition of Fleetwood Homes, Palm Harbor, and any future acquisition may adversely impact our liquidity; expansion of retail and manufacturing businesses and entry into new lines of business, namely manufactured housing consumer finance and insurance, through the Palm Harbor transaction; our participation in certain wholesale financing programs for the purchase of our products by industry retailers may expose us to additional risk of credit loss; together with all of the

other risks described in our filings with the Securities and Exchange Commission. Readers are specifically referred to the Risk Factors described in Item 1A of the 2012 Form 10-K, as may be amended from time to time, which identify important risks that could cause actual results to differ from those contained in the forward-looking statements. Cavco expressly disclaims any obligation to update any forward-looking statements contained in this release, whether as a result of new information, future events or otherwise. Investors should not place any reliance

on any such forward-looking statements.

CAVCO INDUSTRIES, INC. CONSOLIDATED BALANCE SHEETS (Dollars in thousands, except per share amounts) ASS ETS

Current as s ets :
December 29, March 31,

2012 2012 (Unaudited)
Cas h and cas h equivalents
$ 42,451
$ 41,094
Res tricted cas h, current 6,036 6,331
Accounts receivable, net 15,478 14,871
Short-term inves tments 6,182 5,377
Current portion of cons umer loans receivable, net 21,921 20,705
Current portion of inventory finance notes receivable, net 4,002 1,982
Inventories 62,636 62,246
Ass ets held for s ale 1,150 3,903
Prepaid expens es and other current as s ets 8,564 7,848
Deferred income taxes , current 7,400 6,657

Total current as s ets 175,820 171,014

Res tricted cas h 1,178 453
Inves tments 10,324 8,825
Cons umer loans receivable, net 94,451 98,594
Inventory finance notes receivable, net 21,875 22,699
Property, plant and equipment, net 49,790 50,064
Goodwill and other intangibles , net 79,779 80,915
Deferred income taxes 3,178 4,770
Total as s ets

LIABILITIES AND S TOCKHOLDERS ' EQUITY

Current liabilities : Accounts payable

$ 436,395

$ 11,041

$ 437,334

$ 11,732
Accrued liabilities 59,181 58,495
Cons truction lending lines - 4,550

Current portion of s ecuritized financings 10,304 10,728

Total current liabilities 80,526 85,505
Securitized financings 74,220 80,747
Deferred income taxes 16,292 16,198
Redeemable noncontrolling interes t 90,284 86,541
Stockholders ' equity
Preferred s tock, $.01 par value; 1,000,000 s hares authorized;
No s hares is s ued or outs tanding - - Common s tock, $.01 par value; 20,000,000 s hares authorized;
Outs tanding 6,967,954 and 6,890,796 s hares , res pectively 70 69
Additional paid-in capital 134,753 131,589
Retained earnings 40,198 36,627

Accumulated other comprehens ive income 52 58

Total s tockholders ' equity 175,073 168,343
Total liabilities , redeemable noncontrolling interes t and
s tockholders ' equity

$ 436,395

$ 437,334

CAVCO INDUSTRIES, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Dollars in thousands, except per share amounts) (Unaudited)

Three Months Ended Nine Months Ended

	December 29,		December 31,		December 29,		December 31,
	2012		2011		2012		2011
Net sales	$ 114,603		$ 114,564		$ 343,468		$ 343,553
Cost of sales	88,028		87,642		267,131		272,243
Gross profit	26,575		26,922		76,337		71,310
Selling, general and administrative expenses	20,307		20,535		60,400		59,113
Income from operations	6,268		6,387		15,937		12,197
Interest expense	(1,403)		(2,043)		(4,656)		(5,420)
Other income	416		440		1,199		1,055
Gain on bargain purchase	-		-		-		22,009
Income before income taxes	5,281		4,784		12,480		29,841
Income tax expense	(2,260)		(1,804)		(5,160)		(3,001)
Net income	3,021		2,980		7,320		26,840
Less: net income attributable to redeemable
noncontrolling interest	1,564		1,303		3,749		13,256
Net income attributable to Cavco common stockholders	$ 1,457		$ 1,677		$ 3,571		$ 13,584

Comprehensive income: Net income

Unrealized (loss) gain on available-for-sale

$ 3,021

$ 2,980

$ 7,320

$ 26,840

securities, net of tax (74) 242 (12) (40) Comprehensive income 2,947 3,222 7,308 26,800

Comprehensive income attributable to

redeemable noncontrolling interest 1,527 1,424 3,743 13,236

Comprehensive income attributable to

Cavco common stockholders

$ 1,420

$ 1,798

$ 3,565

$ 13,564

Net income per share attributable to Cavco common stockholders:

Basic

$ 0.21 $

0.24

$ 0.51

$ 1.98

Diluted

$ 0.21

$ 0.24

$ 0.51

$ 1.96

Weighted average shares outstanding:

Basic	6,967,954		6,890,517		6,953,037		6,873,078
Diluted	7,037,333		6,951,958		7,018,280		6,936,054

CAVCO INDUSTRIES, INC. OTHER OPERATING DATA (Dollars in thousands) (Unaudited)

Three Months Ended Nine Months Ended

	December 29, 2012		December 31, 2011		December 29, 2012		December 31, 2011
Net s ales : Factory-built hous ing	$ 103,472		$ 104,931		$ 310,822		$ 317,457
Financial s ervices	11,131		9,633		32,646		26,096
Total net s ales	$ 114,603		$ 114,564		$ 343,468		$ 343,553
Capital expenditures	$ 177		$ 434		$ 563		$ 2,273
Depreciation	$ 641		$ 602		$ 1,908		$ 1,667
Amortization of other intangibles	$ 345		$ 880		$ 1,136		$ 2,566
Factory-built homes s old:
by Company owned s tores	491		437		1,469		1,357
to independent dealers , builders & developers	1,574		1,535		4,753		4,613
Total factory-built homes s old	2,065		1,972		6,222		5,970

###