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ý
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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¨
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Delaware
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56-2405642
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(State or other jurisdiction of
incorporation or organization)
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(I.R.S. Employer
Identification No.)
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3636 North Central Avenue, Suite 1200
Phoenix, Arizona 85012
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(Address of principal executive offices, including zip code)
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Large accelerated filer
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¨
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Accelerated filer
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ý
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Non-accelerated filer
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¨
(Do not check if a smaller reporting company)
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Smaller reporting company
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¨
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Emerging Growth Company
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¨
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Page
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September 29,
2018 |
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March 31,
2018 |
||||
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(Unaudited)
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|
|
||||
ASSETS
|
|
|
|
||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
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$
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195,488
|
|
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$
|
186,766
|
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Restricted cash, current
|
13,754
|
|
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11,228
|
|
||
Accounts receivable, net
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38,097
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|
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35,043
|
|
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Short-term investments
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13,462
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|
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11,866
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|
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Current portion of consumer loans receivable, net
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31,327
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31,096
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|
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Current portion of commercial loans receivable, net
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10,909
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|
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5,481
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|
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Inventories
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111,502
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|
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109,152
|
|
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Prepaid expenses and other current assets
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34,169
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|
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27,961
|
|
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Total current assets
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448,708
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|
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418,593
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|
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Restricted cash
|
453
|
|
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1,264
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|
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Investments
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33,149
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33,573
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|
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Consumer loans receivable, net
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62,021
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63,855
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|
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Commercial loans receivable, net
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22,920
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|
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11,120
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|
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Property, plant and equipment, net
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65,108
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63,355
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|
||
Goodwill and other intangibles, net
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82,856
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|
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83,020
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|
||
Total assets
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$
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715,215
|
|
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$
|
674,780
|
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LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
||||
Current liabilities:
|
|
|
|
||||
Accounts payable
|
$
|
25,676
|
|
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$
|
23,785
|
|
Accrued liabilities
|
130,083
|
|
|
126,500
|
|
||
Current portion of securitized financings and other
|
40,969
|
|
|
26,044
|
|
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Total current liabilities
|
196,728
|
|
|
176,329
|
|
||
Securitized financings and other
|
15,159
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|
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33,768
|
|
||
Deferred income taxes
|
8,580
|
|
|
7,577
|
|
||
|
|
|
|
||||
Stockholders' equity:
|
|
|
|
||||
Preferred stock, $.01 par value; 1,000,000 shares authorized; No shares issued or outstanding
|
—
|
|
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—
|
|
||
Common stock, $.01 par value; 40,000,000 shares authorized; Outstanding 9,097,359 and 9,044,858 shares, respectively
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91
|
|
|
90
|
|
||
Additional paid-in capital
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248,138
|
|
|
246,197
|
|
||
Retained earnings
|
246,723
|
|
|
209,381
|
|
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Accumulated other comprehensive income (loss)
|
(204
|
)
|
|
1,438
|
|
||
Total stockholders' equity
|
494,748
|
|
|
457,106
|
|
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Total liabilities and stockholders' equity
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$
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715,215
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|
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$
|
674,780
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|
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Three Months Ended
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Six Months Ended
|
||||||||||||
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September 29,
2018 |
|
September 30,
2017 |
|
September 29,
2018 |
|
September 30,
2017 |
||||||||
Net revenue
|
$
|
241,530
|
|
|
$
|
200,507
|
|
|
$
|
487,933
|
|
|
$
|
407,323
|
|
Cost of sales
|
192,114
|
|
|
165,953
|
|
|
387,041
|
|
|
330,803
|
|
||||
Gross profit
|
49,416
|
|
|
34,554
|
|
|
100,892
|
|
|
76,520
|
|
||||
Selling, general and administrative expenses
|
30,035
|
|
|
26,153
|
|
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59,248
|
|
|
52,458
|
|
||||
Income from operations
|
19,381
|
|
|
8,401
|
|
|
41,644
|
|
|
24,062
|
|
||||
Interest expense
|
(941
|
)
|
|
(1,021
|
)
|
|
(1,913
|
)
|
|
(2,069
|
)
|
||||
Other income, net
|
1,077
|
|
|
1,119
|
|
|
3,922
|
|
|
2,157
|
|
||||
Income before income taxes
|
19,517
|
|
|
8,499
|
|
|
43,653
|
|
|
24,150
|
|
||||
Income tax expense
|
(3,941
|
)
|
|
(2,317
|
)
|
|
(8,386
|
)
|
|
(6,215
|
)
|
||||
Net income
|
$
|
15,576
|
|
|
$
|
6,182
|
|
|
$
|
35,267
|
|
|
$
|
17,935
|
|
|
|
|
|
|
|
|
|
||||||||
Comprehensive income:
|
|
|
|
|
|
|
|
||||||||
Net income
|
$
|
15,576
|
|
|
$
|
6,182
|
|
|
$
|
35,267
|
|
|
$
|
17,935
|
|
Reclassification adjustment for net losses (gains) realized in income
|
24
|
|
|
(383
|
)
|
|
24
|
|
|
(459
|
)
|
||||
Applicable income taxes
|
(5
|
)
|
|
134
|
|
|
(5
|
)
|
|
161
|
|
||||
Net change in unrealized position of investments
|
(57
|
)
|
|
2,275
|
|
|
(51
|
)
|
|
1,442
|
|
||||
Applicable income taxes
|
12
|
|
|
(867
|
)
|
|
11
|
|
|
(540
|
)
|
||||
Comprehensive income
|
$
|
15,550
|
|
|
$
|
7,341
|
|
|
$
|
35,246
|
|
|
$
|
18,539
|
|
|
|
|
|
|
|
|
|
||||||||
Net income per share:
|
|
|
|
|
|
|
|
||||||||
Basic
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$
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1.72
|
|
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$
|
0.69
|
|
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$
|
3.89
|
|
|
$
|
1.99
|
|
Diluted
|
$
|
1.67
|
|
|
$
|
0.67
|
|
|
$
|
3.80
|
|
|
$
|
1.96
|
|
Weighted average shares outstanding:
|
|
|
|
|
|
|
|
||||||||
Basic
|
9,079,679
|
|
|
9,020,834
|
|
|
9,064,007
|
|
|
9,013,917
|
|
||||
Diluted
|
9,304,188
|
|
|
9,181,899
|
|
|
9,287,730
|
|
|
9,171,515
|
|
|
Six Months Ended
|
||||||
|
September 29,
2018 |
|
September 30,
2017 |
||||
OPERATING ACTIVITIES
|
|
|
|
||||
Net income
|
$
|
35,267
|
|
|
$
|
17,935
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
||||
Depreciation and amortization
|
2,274
|
|
|
1,950
|
|
||
Provision for credit losses
|
459
|
|
|
676
|
|
||
Deferred income taxes
|
863
|
|
|
(1,267
|
)
|
||
Stock-based compensation expense
|
2,115
|
|
|
1,535
|
|
||
Non-cash interest income, net
|
(409
|
)
|
|
(526
|
)
|
||
Gain on sale of property, plant and equipment, net
|
(51
|
)
|
|
(88
|
)
|
||
Gain on investments and sale of loans, net
|
(5,457
|
)
|
|
(5,047
|
)
|
||
Changes in operating assets and liabilities:
|
|
|
|
||||
Accounts receivable
|
(3,057
|
)
|
|
(5,512
|
)
|
||
Consumer loans receivable originated
|
(64,479
|
)
|
|
(66,273
|
)
|
||
Proceeds from sales of consumer loans
|
62,245
|
|
|
59,243
|
|
||
Principal payments on consumer loans receivable
|
6,522
|
|
|
7,540
|
|
||
Inventories
|
(2,350
|
)
|
|
(5,733
|
)
|
||
Prepaid expenses and other current assets
|
(4,703
|
)
|
|
(12,448
|
)
|
||
Commercial loans receivable
|
(17,321
|
)
|
|
(5,355
|
)
|
||
Accounts payable and accrued liabilities
|
5,890
|
|
|
22,055
|
|
||
Net cash provided by operating activities
|
17,808
|
|
|
8,685
|
|
||
INVESTING ACTIVITIES
|
|
|
|
||||
Purchases of property, plant and equipment
|
(3,876
|
)
|
|
(1,779
|
)
|
||
Payments for Lexington Homes, net
|
—
|
|
|
(564
|
)
|
||
Proceeds from sale of property, plant and equipment
|
64
|
|
|
411
|
|
||
Purchases of investments
|
(4,042
|
)
|
|
(5,162
|
)
|
||
Proceeds from sale of investments
|
4,684
|
|
|
4,925
|
|
||
Net cash used in investing activities
|
(3,170
|
)
|
|
(2,169
|
)
|
||
FINANCING ACTIVITIES
|
|
|
|
||||
Payments from exercise of stock options
|
(173
|
)
|
|
(1,583
|
)
|
||
Proceeds from secured financings and other
|
226
|
|
|
4,963
|
|
||
Payments on securitized financings
|
(4,254
|
)
|
|
(4,322
|
)
|
||
Net cash used in financing activities
|
(4,201
|
)
|
|
(942
|
)
|
||
Net increase in cash, cash equivalents and restricted cash
|
10,437
|
|
|
5,574
|
|
||
Cash, cash equivalents and restricted cash at beginning of the period
|
199,258
|
|
|
144,839
|
|
||
Cash, cash equivalents and restricted cash at end of the period
|
$
|
209,695
|
|
|
$
|
150,413
|
|
Supplemental disclosures of cash flow information:
|
|
|
|
||||
Cash paid for income taxes
|
$
|
12,381
|
|
|
$
|
7,861
|
|
Cash paid for interest
|
$
|
1,300
|
|
|
$
|
1,508
|
|
Assets acquired under capital lease
|
$
|
—
|
|
|
$
|
1,749
|
|
|
September 29,
2018 |
|
September 30,
2017 |
||||
Cash and cash equivalents
|
$
|
195,488
|
|
|
$
|
136,788
|
|
Restricted cash, current
|
13,754
|
|
|
12,899
|
|
||
Restricted cash
|
453
|
|
|
726
|
|
||
|
$
|
209,695
|
|
|
$
|
150,413
|
|
|
September 29, 2018
|
||||||
|
Three Months Ended
|
|
Six Months Ended
|
||||
Factory-built housing
|
|
|
|
||||
U.S. Housing and Urban Development code homes
|
$
|
184,687
|
|
|
$
|
371,003
|
|
Modular homes
|
23,901
|
|
|
46,348
|
|
||
Park model RVs
|
5,979
|
|
|
17,706
|
|
||
Other (1)
|
12,527
|
|
|
24,799
|
|
||
Net revenue from factory-built housing
|
227,094
|
|
|
459,856
|
|
||
Financial services
|
|
|
|
||||
Insurance agency commissions received from third-party insurance companies
|
643
|
|
|
1,275
|
|
||
Other
|
13,793
|
|
|
26,802
|
|
||
Net revenue from financial services
|
14,436
|
|
|
28,077
|
|
||
Total Net revenue
|
$
|
241,530
|
|
|
$
|
487,933
|
|
(1)
|
Other factory-built housing revenue from ancillary products and services including used homes, freight and other services.
|
|
September 29, 2018
|
||||||||||
Consolidated Balance Sheet
|
As Reported
|
|
Adjustments
|
|
Balance without ASC 606 Adoption
|
||||||
Accrued liabilities
|
$
|
130,083
|
|
|
$
|
2,007
|
|
|
$
|
132,090
|
|
Total current liabilities
|
196,728
|
|
|
2,007
|
|
|
198,735
|
|
|||
Deferred income taxes
|
8,580
|
|
|
(549
|
)
|
|
8,031
|
|
|||
Retained earnings
|
246,723
|
|
|
(1,458
|
)
|
|
245,265
|
|
|||
Total stockholders' equity
|
494,748
|
|
|
(1,458
|
)
|
|
493,290
|
|
|
Three Months Ended September 29, 2018
|
||||||||||
Consolidated Statement of Comprehensive Income
|
As Reported
|
|
Adjustments
|
|
Balance without ASC 606 Adoption
|
||||||
Net revenue
|
$
|
241,530
|
|
|
$
|
(9,160
|
)
|
|
$
|
232,370
|
|
Cost of sales
|
192,114
|
|
|
(8,691
|
)
|
|
183,423
|
|
|||
Gross profit
|
49,416
|
|
|
(469
|
)
|
|
48,947
|
|
|||
Selling, general and administrative expenses
|
30,035
|
|
|
(136
|
)
|
|
29,899
|
|
|||
Income from operations
|
19,381
|
|
|
(333
|
)
|
|
19,048
|
|
|||
Income before income taxes
|
19,517
|
|
|
(333
|
)
|
|
19,184
|
|
|||
Income tax expense
|
(3,941
|
)
|
|
76
|
|
|
(3,865
|
)
|
|||
Net income
|
15,576
|
|
|
(257
|
)
|
|
15,319
|
|
|
Six Months Ended September 29, 2018
|
||||||||||
Consolidated Statement of Comprehensive Income
|
As Reported
|
|
Adjustments
|
|
Balance without ASC 606 Adoption
|
||||||
Net revenue
|
$
|
487,933
|
|
|
$
|
(22,829
|
)
|
|
$
|
465,104
|
|
Cost of sales
|
387,041
|
|
|
(21,080
|
)
|
|
365,961
|
|
|||
Gross profit
|
100,892
|
|
|
(1,749
|
)
|
|
99,143
|
|
|||
Selling, general and administrative expenses
|
59,248
|
|
|
(444
|
)
|
|
58,804
|
|
|||
Income from operations
|
41,644
|
|
|
(1,305
|
)
|
|
40,339
|
|
|||
Income before income taxes
|
43,653
|
|
|
(1,305
|
)
|
|
42,348
|
|
|||
Income tax expense
|
(8,386
|
)
|
|
301
|
|
|
(8,085
|
)
|
|||
Net income
|
35,267
|
|
|
(1,004
|
)
|
|
34,263
|
|
|
September 29,
2018 |
|
March 31,
2018 |
||||
Cash related to CountryPlace customer payments to be remitted to third parties
|
$
|
11,838
|
|
|
$
|
9,180
|
|
Cash related to CountryPlace customer payments on securitized loans to be remitted to bondholders
|
979
|
|
|
1,311
|
|
||
Other restricted cash
|
1,390
|
|
|
2,001
|
|
||
|
$
|
14,207
|
|
|
$
|
12,492
|
|
|
September 29,
2018 |
|
March 31,
2018 |
||||
Available-for-sale debt securities
|
$
|
14,900
|
|
|
$
|
16,181
|
|
Marketable equity securities
|
12,409
|
|
|
10,405
|
|
||
Non-marketable equity investments
|
19,302
|
|
|
18,853
|
|
||
|
$
|
46,611
|
|
|
$
|
45,439
|
|
|
September 29, 2018
|
||||||||||||||
|
Amortized
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Fair
Value
|
||||||||
U.S. Treasury and government debt securities
|
$
|
300
|
|
|
$
|
—
|
|
|
$
|
(10
|
)
|
|
$
|
290
|
|
Residential mortgage-backed securities
|
7,714
|
|
|
—
|
|
|
(207
|
)
|
|
7,507
|
|
||||
State and political subdivision debt securities
|
5,499
|
|
|
90
|
|
|
(108
|
)
|
|
5,481
|
|
||||
Corporate debt securities
|
1,646
|
|
|
1
|
|
|
(25
|
)
|
|
1,622
|
|
||||
|
$
|
15,159
|
|
|
$
|
91
|
|
|
$
|
(350
|
)
|
|
$
|
14,900
|
|
|
March 31, 2018
|
||||||||||||||
|
Amortized
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Fair
Value
|
||||||||
U.S. Treasury and government debt securities
|
$
|
300
|
|
|
$
|
—
|
|
|
$
|
(7
|
)
|
|
$
|
293
|
|
Residential mortgage-backed securities
|
7,654
|
|
|
—
|
|
|
(155
|
)
|
|
7,499
|
|
||||
State and political subdivision debt securities
|
6,377
|
|
|
109
|
|
|
(149
|
)
|
|
6,337
|
|
||||
Corporate debt securities
|
2,081
|
|
|
1
|
|
|
(30
|
)
|
|
2,052
|
|
||||
|
$
|
16,412
|
|
|
$
|
110
|
|
|
$
|
(341
|
)
|
|
$
|
16,181
|
|
|
September 29, 2018
|
||||||||||||||||||||||
|
Less than 12 Months
|
|
12 Months or Longer
|
|
Total
|
||||||||||||||||||
|
Fair
Value
|
|
Unrealized
Losses
|
|
Fair
Value
|
|
Unrealized
Losses
|
|
Fair
Value
|
|
Unrealized
Losses
|
||||||||||||
U.S. Treasury and government debt securities
|
$
|
290
|
|
|
$
|
(10
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
290
|
|
|
$
|
(10
|
)
|
Residential mortgage-backed securities
|
2,738
|
|
|
(51
|
)
|
|
4,764
|
|
|
(156
|
)
|
|
7,502
|
|
|
(207
|
)
|
||||||
State and political subdivision debt securities
|
1,097
|
|
|
(18
|
)
|
|
2,478
|
|
|
(90
|
)
|
|
3,575
|
|
|
(108
|
)
|
||||||
Corporate debt securities
|
515
|
|
|
(6
|
)
|
|
855
|
|
|
(19
|
)
|
|
1,370
|
|
|
(25
|
)
|
||||||
|
$
|
4,640
|
|
|
$
|
(85
|
)
|
|
$
|
8,097
|
|
|
$
|
(265
|
)
|
|
$
|
12,737
|
|
|
$
|
(350
|
)
|
|
March 31, 2018
|
||||||||||||||||||||||
|
Less than 12 Months
|
|
12 Months or Longer
|
|
Total
|
||||||||||||||||||
|
Fair
Value
|
|
Unrealized
Losses
|
|
Fair
Value
|
|
Unrealized
Losses
|
|
Fair
Value
|
|
Unrealized
Losses
|
||||||||||||
U.S. Treasury and government debt securities
|
$
|
293
|
|
|
$
|
(7
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
293
|
|
|
$
|
(7
|
)
|
Residential mortgage-backed securities
|
3,185
|
|
|
(52
|
)
|
|
3,909
|
|
|
(103
|
)
|
|
7,094
|
|
|
(155
|
)
|
||||||
State and political subdivision debt securities
|
2,224
|
|
|
(40
|
)
|
|
2,180
|
|
|
(109
|
)
|
|
4,404
|
|
|
(149
|
)
|
||||||
Corporate debt securities
|
1,384
|
|
|
(12
|
)
|
|
367
|
|
|
(18
|
)
|
|
1,751
|
|
|
(30
|
)
|
||||||
|
$
|
7,086
|
|
|
$
|
(111
|
)
|
|
$
|
6,456
|
|
|
$
|
(230
|
)
|
|
$
|
13,542
|
|
|
$
|
(341
|
)
|
|
September 29, 2018
|
||||||
|
Amortized
Cost
|
|
Fair
Value
|
||||
Due in less than one year
|
$
|
698
|
|
|
$
|
680
|
|
Due after one year through five years
|
3,557
|
|
|
3,465
|
|
||
Due after five years through ten years
|
375
|
|
|
361
|
|
||
Due after ten years
|
2,815
|
|
|
2,887
|
|
||
Mortgage-backed securities
|
7,714
|
|
|
7,507
|
|
||
|
$
|
15,159
|
|
|
$
|
14,900
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
September 29,
2018 |
|
September 30,
2017 |
|
September 29,
2018 |
|
September 30,
2017 |
||||||||
Marketable equity securities:
|
|
|
|
|
|
|
|
||||||||
Net (losses) gains on securities held
|
$
|
(312
|
)
|
|
$
|
—
|
|
|
$
|
1,298
|
|
|
$
|
—
|
|
Net losses on securities sold
|
(13
|
)
|
|
—
|
|
|
(53
|
)
|
|
—
|
|
||||
Gross realized gains
|
—
|
|
|
570
|
|
|
—
|
|
|
735
|
|
||||
Gross realized losses
|
—
|
|
|
(51
|
)
|
|
—
|
|
|
(112
|
)
|
||||
Total net (loss) gain on marketable equity securities
|
$
|
(325
|
)
|
|
$
|
519
|
|
|
$
|
1,245
|
|
|
$
|
623
|
|
|
September 29,
2018 |
|
March 31,
2018 |
||||
Raw materials
|
$
|
36,560
|
|
|
$
|
36,124
|
|
Work in process
|
14,143
|
|
|
13,670
|
|
||
Finished goods and other
|
60,799
|
|
|
59,358
|
|
||
|
$
|
111,502
|
|
|
$
|
109,152
|
|
|
September 29,
2018 |
|
March 31,
2018 |
||||
Loans held for investment (at Acquisition Date)
|
$
|
47,948
|
|
|
$
|
51,798
|
|
Loans held for investment (originated after Acquisition Date)
|
23,469
|
|
|
21,183
|
|
||
Loans held for sale
|
13,258
|
|
|
12,830
|
|
||
Construction advances
|
11,001
|
|
|
11,088
|
|
||
Consumer loans receivable
|
95,676
|
|
|
96,899
|
|
||
Deferred financing fees and other, net
|
(1,917
|
)
|
|
(1,551
|
)
|
||
Allowance for loan losses
|
(411
|
)
|
|
(397
|
)
|
||
|
$
|
93,348
|
|
|
$
|
94,951
|
|
|
September 29,
2018 |
|
March 31,
2018 |
||||
|
(in thousands)
|
||||||
Consumer loans receivable held for investment – contractual amount
|
$
|
110,136
|
|
|
$
|
120,096
|
|
Purchase discount
|
|
|
|
||||
Accretable
|
(40,937
|
)
|
|
(44,481
|
)
|
||
Non-accretable
|
(21,138
|
)
|
|
(23,711
|
)
|
||
Less consumer loans receivable reclassified as other assets
|
(113
|
)
|
|
(106
|
)
|
||
Total acquired consumer loans receivable held for investment, net
|
$
|
47,948
|
|
|
$
|
51,798
|
|
|
September 29,
2018 |
|
March 31,
2018 |
||
Prepayment rate
|
16.2
|
%
|
|
16.0
|
%
|
Default rate
|
1.2
|
%
|
|
1.2
|
%
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
September 29,
2018 |
|
September 30,
2017 |
|
September 29,
2018 |
|
September 30,
2017 |
||||||||
Balance at the beginning of the period
|
$
|
42,873
|
|
|
$
|
54,912
|
|
|
$
|
44,481
|
|
|
$
|
56,686
|
|
Accretion
|
(1,968
|
)
|
|
(2,163
|
)
|
|
(3,867
|
)
|
|
(4,373
|
)
|
||||
Reclassifications from (to) non-accretable discount
|
32
|
|
|
(1,569
|
)
|
|
323
|
|
|
(1,133
|
)
|
||||
Balance at the end of the period
|
$
|
40,937
|
|
|
$
|
51,180
|
|
|
$
|
40,937
|
|
|
$
|
51,180
|
|
|
September 29,
2018 |
|
March 31,
2018 |
||
Weighted average contractual interest rate
|
8.49
|
%
|
|
8.57
|
%
|
Weighted average effective interest rate
|
9.03
|
%
|
|
9.34
|
%
|
Weighted average months to maturity
|
167
|
|
|
168
|
|
|
September 29,
2018 |
|
March 31,
2018 |
||||
Direct loans receivable
|
$
|
33,606
|
|
|
$
|
16,368
|
|
Participation loans receivable
|
513
|
|
|
275
|
|
||
Allowance for loan losses
|
(135
|
)
|
|
(42
|
)
|
||
Deferred financing fees, net
|
(155
|
)
|
|
—
|
|
||
|
$
|
33,829
|
|
|
$
|
16,601
|
|
|
September 29,
2018 |
|
March 31,
2018 |
||
Weighted average contractual interest rate
|
5.9
|
%
|
|
4.6
|
%
|
Weighted average months to maturity
|
5
|
|
|
6
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
September 29,
2018 |
|
September 30,
2017 |
|
September 29,
2018 |
|
September 30,
2017 |
||||||||
Balance at beginning of period
|
$
|
113
|
|
|
$
|
222
|
|
|
$
|
42
|
|
|
$
|
210
|
|
Provision for inventory finance credit losses
|
22
|
|
|
20
|
|
|
93
|
|
|
32
|
|
||||
Loans charged off, net of recoveries
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Balance at end of period
|
$
|
135
|
|
|
$
|
242
|
|
|
$
|
135
|
|
|
$
|
242
|
|
|
Direct Commercial Loans
|
|
Participation Commercial Loans
|
||||||||||||
|
September 29,
2018 |
|
March 31,
2018 |
|
September 29,
2018 |
|
March 31,
2018 |
||||||||
Inventory finance notes receivable:
|
|
|
|
|
|
|
|
||||||||
Collectively evaluated for impairment
|
$
|
13,415
|
|
|
$
|
4,193
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Individually evaluated for impairment
|
20,191
|
|
|
12,175
|
|
|
513
|
|
|
275
|
|
||||
|
$
|
33,606
|
|
|
$
|
16,368
|
|
|
$
|
513
|
|
|
$
|
275
|
|
Allowance for loan losses:
|
|
|
|
|
|
|
|
||||||||
Collectively evaluated for impairment
|
$
|
(135
|
)
|
|
$
|
(42
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
Individually evaluated for impairment
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
|
$
|
(135
|
)
|
|
$
|
(42
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Direct Commercial Loans
|
|
Participation Commercial Loans
|
||||||||||||
|
September 29,
2018 |
|
March 31,
2018 |
|
September 29,
2018 |
|
March 31,
2018 |
||||||||
Risk profile based on payment activity:
|
|
|
|
|
|
|
|
||||||||
Performing
|
$
|
33,606
|
|
|
$
|
16,368
|
|
|
$
|
513
|
|
|
$
|
275
|
|
Watch list
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Nonperforming
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
|
$
|
33,606
|
|
|
$
|
16,368
|
|
|
$
|
513
|
|
|
$
|
275
|
|
|
September 29,
2018 |
|
March 31,
2018 |
||||
Property, plant and equipment, at cost:
|
|
|
|
||||
Land
|
$
|
24,131
|
|
|
$
|
24,001
|
|
Buildings and improvements
|
41,058
|
|
|
39,613
|
|
||
Machinery and equipment
|
25,713
|
|
|
24,154
|
|
||
|
90,902
|
|
|
87,768
|
|
||
Accumulated depreciation
|
(25,794
|
)
|
|
(24,413
|
)
|
||
|
$
|
65,108
|
|
|
$
|
63,355
|
|
|
September 29,
2018 |
|
March 31,
2018 |
||||
Land
|
$
|
699
|
|
|
$
|
699
|
|
Buildings and improvements
|
1,050
|
|
|
1,050
|
|
||
|
1,749
|
|
|
1,749
|
|
||
Accumulated amortization
|
(53
|
)
|
|
(35
|
)
|
||
Leased assets, net
|
$
|
1,696
|
|
|
$
|
1,714
|
|
FY 2019
|
$
|
68
|
|
FY 2020
|
766
|
|
|
FY 2021
|
73
|
|
|
FY 2022
|
73
|
|
|
FY 2023
|
73
|
|
|
Thereafter
|
195
|
|
|
Total remaining lease payments
|
1,248
|
|
|
Less: Amount representing interest
|
(134
|
)
|
|
Present value of future minimum lease payments
|
$
|
1,114
|
|
|
September 29, 2018
|
|
March 31, 2018
|
||||||||||||||||||||
|
Gross
Carrying Amount |
|
Accumulated
Amortization |
|
Net
Carrying Amount |
|
Gross
Carrying Amount |
|
Accumulated
Amortization |
|
Net
Carrying Amount |
||||||||||||
Indefinite-lived:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Goodwill
|
$
|
72,920
|
|
|
$
|
—
|
|
|
$
|
72,920
|
|
|
$
|
72,920
|
|
|
$
|
—
|
|
|
$
|
72,920
|
|
Trademarks and trade names
|
7,200
|
|
|
—
|
|
|
7,200
|
|
|
7,200
|
|
|
—
|
|
|
7,200
|
|
||||||
State insurance licenses
|
1,100
|
|
|
—
|
|
|
1,100
|
|
|
1,100
|
|
|
—
|
|
|
1,100
|
|
||||||
Total indefinite-lived intangible assets
|
81,220
|
|
|
—
|
|
|
81,220
|
|
|
81,220
|
|
|
—
|
|
|
81,220
|
|
||||||
Finite lived:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Customer relationships
|
7,100
|
|
|
(5,863
|
)
|
|
1,237
|
|
|
7,100
|
|
|
(5,756
|
)
|
|
1,344
|
|
||||||
Other
|
1,384
|
|
|
(985
|
)
|
|
399
|
|
|
1,384
|
|
|
(928
|
)
|
|
456
|
|
||||||
|
$
|
89,704
|
|
|
$
|
(6,848
|
)
|
|
$
|
82,856
|
|
|
$
|
89,704
|
|
|
$
|
(6,684
|
)
|
|
$
|
83,020
|
|
|
September 29,
2018 |
|
March 31,
2018 |
||||
Salaries, wages and benefits
|
$
|
23,916
|
|
|
$
|
24,416
|
|
Customer deposits
|
22,277
|
|
|
21,294
|
|
||
Unearned insurance premiums
|
17,804
|
|
|
17,432
|
|
||
Estimated warranties
|
16,905
|
|
|
16,638
|
|
||
Accrued volume rebates
|
10,090
|
|
|
7,778
|
|
||
Insurance loss reserves
|
6,452
|
|
|
6,157
|
|
||
Company repurchase option on certain loans sold
|
5,749
|
|
|
5,637
|
|
||
Accrued insurance
|
5,204
|
|
|
5,320
|
|
||
Accrued taxes
|
2,629
|
|
|
1,986
|
|
||
Reserve for repurchase commitments
|
2,303
|
|
|
2,207
|
|
||
Capital lease obligation
|
1,114
|
|
|
1,155
|
|
||
Other
|
15,640
|
|
|
16,480
|
|
||
|
$
|
130,083
|
|
|
$
|
126,500
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
September 29,
2018 |
|
September 30,
2017 |
|
September 29,
2018 |
|
September 30,
2017 |
||||||||
Balance at beginning of period
|
$
|
16,670
|
|
|
$
|
16,316
|
|
|
$
|
16,638
|
|
|
$
|
15,479
|
|
Purchase accounting additions
|
—
|
|
|
—
|
|
|
—
|
|
|
838
|
|
||||
Charged to costs and expenses
|
6,713
|
|
|
7,399
|
|
|
12,942
|
|
|
12,622
|
|
||||
Payments and deductions
|
(6,478
|
)
|
|
(7,245
|
)
|
|
(12,675
|
)
|
|
(12,469
|
)
|
||||
Balance at end of period
|
$
|
16,905
|
|
|
$
|
16,470
|
|
|
$
|
16,905
|
|
|
$
|
16,470
|
|
|
September 29,
2018 |
|
March 31,
2018 |
||||
Acquired securitized financings (acquired as part of the Palm Harbor transaction)
|
|
|
|
||||
Securitized financing 2005-1
|
$
|
19,115
|
|
|
$
|
20,524
|
|
Securitized financing 2007-1
|
20,722
|
|
|
22,552
|
|
||
Other secured financings
|
4,825
|
|
|
4,966
|
|
||
Secured credit facilities
|
11,466
|
|
|
11,770
|
|
||
|
$
|
56,128
|
|
|
$
|
59,812
|
|
|
September 29,
2018 |
|
March 31,
2018 |
||||
Securitized financings – contractual amount
|
$
|
41,671
|
|
|
$
|
46,591
|
|
Purchase discount
|
|
|
|
||||
Accretable
|
(1,834
|
)
|
|
(3,515
|
)
|
||
Non-accretable (1)
|
—
|
|
|
—
|
|
||
Total acquired securitized financings, net
|
$
|
39,837
|
|
|
$
|
43,076
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
September 29,
2018 |
|
September 30,
2017 |
|
September 29,
2018 |
|
September 30,
2017 |
||||||||
Balance at the beginning of the period
|
$
|
2,697
|
|
|
$
|
6,666
|
|
|
$
|
3,515
|
|
|
$
|
7,636
|
|
Accretion
|
(774
|
)
|
|
(846
|
)
|
|
(1,577
|
)
|
|
(1,716
|
)
|
||||
Adjustment to cash flows
|
(89
|
)
|
|
(111
|
)
|
|
(104
|
)
|
|
(211
|
)
|
||||
Balance at the end of the period
|
$
|
1,834
|
|
|
$
|
5,709
|
|
|
$
|
1,834
|
|
|
$
|
5,709
|
|
|
Three Months Ended
|
||||||||||||||
|
September 29, 2018
|
|
September 30, 2017
|
||||||||||||
|
Written
|
|
Earned
|
|
Written
|
|
Earned
|
||||||||
Direct premiums
|
$
|
3,820
|
|
|
$
|
4,249
|
|
|
$
|
3,628
|
|
|
$
|
4,137
|
|
Assumed premiums—nonaffiliate
|
6,280
|
|
|
6,350
|
|
|
6,210
|
|
|
6,326
|
|
||||
Ceded premiums—nonaffiliate
|
(3,135
|
)
|
|
(3,135
|
)
|
|
(4,309
|
)
|
|
(4,309
|
)
|
||||
Net premiums
|
$
|
6,965
|
|
|
$
|
7,464
|
|
|
$
|
5,529
|
|
|
$
|
6,154
|
|
|
Six Months Ended
|
||||||||||||||
|
September 29, 2018
|
|
September 30, 2017
|
||||||||||||
|
Written
|
|
Earned
|
|
Written
|
|
Earned
|
||||||||
Direct premiums
|
$
|
8,361
|
|
|
$
|
8,460
|
|
|
$
|
7,994
|
|
|
$
|
8,287
|
|
Assumed premiums—nonaffiliate
|
13,214
|
|
|
12,584
|
|
|
12,470
|
|
|
12,593
|
|
||||
Ceded premiums—nonaffiliate
|
(5,982
|
)
|
|
(5,982
|
)
|
|
(7,257
|
)
|
|
(7,257
|
)
|
||||
Net premiums
|
$
|
15,593
|
|
|
$
|
15,062
|
|
|
$
|
13,207
|
|
|
$
|
13,623
|
|
|
September 29,
2018 |
|
March 31,
2018 |
||||
Construction loan contract amount
|
$
|
29,273
|
|
|
$
|
27,093
|
|
Cumulative advances
|
(11,001
|
)
|
|
(11,088
|
)
|
||
Remaining construction contingent commitment
|
$
|
18,272
|
|
|
$
|
16,005
|
|
|
|
|
|
|
Additional paid-in capital
|
|
Retained earnings
|
|
Accumulated other comprehensive income (loss)
|
|
Total
|
|||||||||||
|
Common Stock
|
|
|
|
|
|||||||||||||||||
|
Shares
|
|
Amount
|
|
|
|
|
|||||||||||||||
Balance, March 31, 2018
|
9,044,858
|
|
|
$
|
90
|
|
|
$
|
246,197
|
|
|
$
|
209,381
|
|
|
$
|
1,438
|
|
|
$
|
457,106
|
|
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
35,267
|
|
|
—
|
|
|
35,267
|
|
|||||
Cumulative effect of implementing ASU 2016-01, net
|
—
|
|
|
—
|
|
|
—
|
|
|
1,621
|
|
|
(1,621
|
)
|
|
—
|
|
|||||
Cumulative effect of implementing ASC 606, net
|
—
|
|
|
—
|
|
|
—
|
|
|
454
|
|
|
—
|
|
|
454
|
|
|||||
Stock option exercises
|
52,501
|
|
|
1
|
|
|
(174
|
)
|
|
—
|
|
|
—
|
|
|
(173
|
)
|
|||||
Stock-based compensation
|
—
|
|
|
—
|
|
|
2,115
|
|
|
—
|
|
|
—
|
|
|
2,115
|
|
|||||
Other comprehensive income, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(21
|
)
|
|
(21
|
)
|
|||||
Balance, September 29, 2018
|
9,097,359
|
|
|
$
|
91
|
|
|
$
|
248,138
|
|
|
$
|
246,723
|
|
|
$
|
(204
|
)
|
|
$
|
494,748
|
|
|
Number
of Options
|
|
Outstanding at March 31, 2018
|
418,205
|
|
Granted
|
48,750
|
|
Exercised
|
(72,544
|
)
|
Canceled or expired
|
—
|
|
Outstanding at September 29, 2018
|
394,411
|
|
Exercisable at September 29, 2018
|
189,563
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
September 29,
2018 |
|
September 30,
2017 |
|
September 29,
2018 |
|
September 30,
2017 |
||||||||
Net income
|
$
|
15,576
|
|
|
$
|
6,182
|
|
|
$
|
35,267
|
|
|
$
|
17,935
|
|
Weighted average shares outstanding:
|
|
|
|
|
|
|
|
||||||||
Basic
|
9,079,679
|
|
|
9,020,834
|
|
|
9,064,007
|
|
|
9,013,917
|
|
||||
Common stock equivalents—treasury stock method
|
224,509
|
|
|
161,065
|
|
|
223,723
|
|
|
157,598
|
|
||||
Diluted
|
9,304,188
|
|
|
9,181,899
|
|
|
9,287,730
|
|
|
9,171,515
|
|
||||
Net income per share:
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
1.72
|
|
|
$
|
0.69
|
|
|
$
|
3.89
|
|
|
$
|
1.99
|
|
Diluted
|
$
|
1.67
|
|
|
$
|
0.67
|
|
|
$
|
3.80
|
|
|
$
|
1.96
|
|
|
September 29, 2018
|
|
March 31, 2018
|
||||||||||||
|
Book
Value
|
|
Estimated
Fair Value
|
|
Book
Value
|
|
Estimated
Fair Value
|
||||||||
Available-for-sale debt securities (1)
|
$
|
14,900
|
|
|
$
|
14,900
|
|
|
$
|
16,181
|
|
|
$
|
16,181
|
|
Marketable equity securities (1)
|
12,409
|
|
|
12,409
|
|
|
10,405
|
|
|
10,405
|
|
||||
Non-marketable equity investments (2)
|
19,302
|
|
|
19,302
|
|
|
18,853
|
|
|
18,853
|
|
||||
Consumer loans receivable (3)
|
93,348
|
|
|
107,833
|
|
|
94,951
|
|
|
113,277
|
|
||||
Interest rate lock commitment derivatives (4)
|
(1
|
)
|
|
(1
|
)
|
|
(12
|
)
|
|
(12
|
)
|
||||
Forward loan sale commitment derivatives (4)
|
(88
|
)
|
|
(88
|
)
|
|
26
|
|
|
26
|
|
||||
Commercial loans receivable (5)
|
33,829
|
|
|
31,047
|
|
|
16,601
|
|
|
16,972
|
|
||||
Securitized financings and other (6)
|
(56,128
|
)
|
|
(60,159
|
)
|
|
(59,812
|
)
|
|
(64,509
|
)
|
||||
Mortgage servicing rights (7)
|
1,519
|
|
|
1,519
|
|
|
1,410
|
|
|
1,410
|
|
(1)
|
For Level 1 classified securities, the fair value is based on quoted market prices. The fair value of Level 2 securities is based on other inputs, as further described below.
|
(2)
|
The fair value approximates book value based on the non-marketable nature of the investments.
|
(3)
|
Includes consumer loans receivable held for investment, held for sale and construction advances. The fair value of the loans held for investment is based on the discounted value of the remaining principal and interest cash flows. The fair value of the loans held for sale are estimated based on recent GSE mortgage-backed bond prices. The fair value of the construction advances approximates book value and the sales price of these loans.
|
(4)
|
The fair values are based on changes in GSE mortgage-backed bond prices and, additionally for IRLCs, pull through rates.
|
(5)
|
The fair value is estimated using market interest rates of comparable loans.
|
(6)
|
The fair value is estimated using recent public transactions of similar asset-backed securities.
|
(7)
|
The fair value of the mortgage servicing rights is based on the present value of expected net cash flows related to servicing these loans.
|
Level 1 –
|
Quoted prices in active markets for identical assets or liabilities.
|
Level 2 –
|
Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
|
Level 3 –
|
Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.
|
|
September 29, 2018
|
||||||||||||||
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
Securities issued by the U.S Treasury and Government (1)
|
$
|
290
|
|
|
$
|
—
|
|
|
$
|
290
|
|
|
$
|
—
|
|
Mortgage-backed securities (1)
|
7,507
|
|
|
—
|
|
|
7,507
|
|
|
—
|
|
||||
Securities issued by states and political subdivisions (1)
|
5,481
|
|
|
—
|
|
|
5,481
|
|
|
—
|
|
||||
Corporate debt securities (1)
|
1,622
|
|
|
—
|
|
|
1,622
|
|
|
—
|
|
||||
Marketable equity securities (2)
|
12,409
|
|
|
12,409
|
|
|
—
|
|
|
—
|
|
||||
Interest rate lock commitment derivatives (3)
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
||||
Forward loan sale commitment derivatives (3)
|
(88
|
)
|
|
—
|
|
|
—
|
|
|
(88
|
)
|
||||
Mortgage servicing rights (4)
|
1,519
|
|
|
—
|
|
|
—
|
|
|
1,519
|
|
(1)
|
Unrealized gains or losses on investments are recorded in accumulated other comprehensive income (loss) at each measurement date.
|
(2)
|
Unrealized gains or losses on investments are recorded in earnings at each measurement date.
|
(3)
|
Gains or losses on derivatives are recognized in current period earnings through cost of sales.
|
(4)
|
Changes in the fair value of mortgage servicing rights are recognized in the current period earnings through Net revenue.
|
|
September 29, 2018
|
||||||||||||||
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
Loans held for investment
|
$
|
83,139
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
83,139
|
|
Loans held for sale
|
13,693
|
|
|
—
|
|
|
—
|
|
|
13,693
|
|
||||
Loans held—construction advances
|
11,001
|
|
|
—
|
|
|
—
|
|
|
11,001
|
|
||||
Commercial loans receivable
|
31,047
|
|
|
—
|
|
|
—
|
|
|
31,047
|
|
||||
Securitized financings and other
|
(60,159
|
)
|
|
—
|
|
|
(60,159
|
)
|
|
—
|
|
||||
Non-marketable equity investments
|
19,302
|
|
|
—
|
|
|
—
|
|
|
19,302
|
|
|
September 29,
2018 |
|
March 31,
2018 |
||||
Number of loans serviced with MSRs
|
4,456
|
|
|
4,346
|
|
||
Weighted average servicing fee (basis points)
|
31.96
|
|
|
32.03
|
|
||
Capitalized servicing multiple
|
88.17
|
%
|
|
84.76
|
%
|
||
Capitalized servicing rate (basis points)
|
28.18
|
|
|
27.15
|
|
||
Serviced portfolio with MSRs (in thousands)
|
$
|
538,920
|
|
|
$
|
519,167
|
|
Mortgage servicing rights (in thousands)
|
$
|
1,519
|
|
|
$
|
1,410
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
September 29,
2018 |
|
September 30,
2017 |
|
September 29,
2018 |
|
September 30,
2017 |
||||||||
Net revenue:
|
|
|
|
|
|
|
|
||||||||
Factory-built housing
|
$
|
227,094
|
|
|
$
|
187,380
|
|
|
$
|
459,856
|
|
|
$
|
380,262
|
|
Financial services
|
14,436
|
|
|
13,127
|
|
|
28,077
|
|
|
27,061
|
|
||||
|
$
|
241,530
|
|
|
$
|
200,507
|
|
|
$
|
487,933
|
|
|
$
|
407,323
|
|
|
|
|
|
|
|
|
|
||||||||
Income before income taxes:
|
|
|
|
|
|
|
|
||||||||
Factory-built housing
|
$
|
16,880
|
|
|
$
|
8,584
|
|
|
$
|
38,488
|
|
|
$
|
21,754
|
|
Financial services
|
2,637
|
|
|
(85
|
)
|
|
5,165
|
|
|
2,396
|
|
||||
|
$
|
19,517
|
|
|
$
|
8,499
|
|
|
$
|
43,653
|
|
|
$
|
24,150
|
|
|
Three Months Ended
|
|
|
|
|
|||||||||
|
September 29,
2018 |
|
September 30,
2017 |
|
Change
|
|
% Change
|
|||||||
Net revenue:
|
|
|
|
|
|
|
|
|||||||
Factory-built housing
|
$
|
227,094
|
|
|
$
|
187,380
|
|
|
$
|
39,714
|
|
|
21.2
|
%
|
Financial services
|
14,436
|
|
|
13,127
|
|
|
1,309
|
|
|
10.0
|
%
|
|||
|
$
|
241,530
|
|
|
$
|
200,507
|
|
|
$
|
41,023
|
|
|
20.5
|
%
|
|
|
|
|
|
|
|
|
|||||||
Total homes sold
|
3,536
|
|
|
3,298
|
|
|
238
|
|
|
7.2
|
%
|
|||
|
|
|
|
|
|
|
|
|||||||
Net factory-built housing revenue per home sold
|
$
|
64,223
|
|
|
$
|
56,816
|
|
|
$
|
7,407
|
|
|
13.0
|
%
|
|
Six Months Ended
|
|
|
|
|
|||||||||
|
September 29,
2018 |
|
September 30,
2017 |
|
Change
|
|
% Change
|
|||||||
Net revenue:
|
|
|
|
|
|
|
|
|||||||
Factory-built housing
|
$
|
459,856
|
|
|
$
|
380,262
|
|
|
$
|
79,594
|
|
|
20.9
|
%
|
Financial services
|
28,077
|
|
|
27,061
|
|
|
1,016
|
|
|
3.8
|
%
|
|||
|
$
|
487,933
|
|
|
$
|
407,323
|
|
|
$
|
80,610
|
|
|
19.8
|
%
|
|
|
|
|
|
|
|
|
|||||||
Total homes sold
|
7,423
|
|
|
6,773
|
|
|
650
|
|
|
9.6
|
%
|
|||
|
|
|
|
|
|
|
|
|||||||
Net factory-built housing revenue per home sold
|
$
|
61,950
|
|
|
$
|
56,144
|
|
|
$
|
5,806
|
|
|
10.3
|
%
|
|
Three Months Ended
|
|
|
|
|
|||||||||
|
September 29,
2018 |
|
September 30,
2017 |
|
$ Change
|
|
% Change
|
|||||||
Gross profit:
|
|
|
|
|
|
|
|
|||||||
Factory-built housing
|
$
|
41,798
|
|
|
$
|
29,919
|
|
|
$
|
11,879
|
|
|
39.7
|
%
|
Financial services
|
7,618
|
|
|
4,635
|
|
|
2,983
|
|
|
64.4
|
%
|
|||
|
$
|
49,416
|
|
|
$
|
34,554
|
|
|
$
|
14,862
|
|
|
43.0
|
%
|
|
|
|
|
|
|
|
|
|||||||
Gross profit as % of Net revenue:
|
20.5
|
%
|
|
17.2
|
%
|
|
N/A
|
|
|
3.3
|
%
|
|
Six Months Ended
|
|
|
|
|
|||||||||
|
September 29,
2018 |
|
September 30,
2017 |
|
$ Change
|
|
% Change
|
|||||||
Gross profit:
|
|
|
|
|
|
|
|
|||||||
Factory-built housing
|
$
|
85,684
|
|
|
$
|
64,419
|
|
|
$
|
21,265
|
|
|
33.0
|
%
|
Financial services
|
15,208
|
|
|
12,101
|
|
|
3,107
|
|
|
25.7
|
%
|
|||
|
$
|
100,892
|
|
|
$
|
76,520
|
|
|
$
|
24,372
|
|
|
31.9
|
%
|
|
|
|
|
|
|
|
|
|||||||
Gross profit as % of Net revenue:
|
20.7
|
%
|
|
18.8
|
%
|
|
N/A
|
|
|
1.9
|
%
|
|
Three Months Ended
|
|
|
|
|
|||||||||
|
September 29,
2018 |
|
September 30,
2017 |
|
$ Change
|
|
% Change
|
|||||||
Selling, general and administrative expenses:
|
|
|
|
|
|
|
|
|||||||
Factory-built housing
|
$
|
25,921
|
|
|
$
|
22,386
|
|
|
$
|
3,535
|
|
|
15.8
|
%
|
Financial services
|
4,114
|
|
|
3,767
|
|
|
347
|
|
|
9.2
|
%
|
|||
|
$
|
30,035
|
|
|
$
|
26,153
|
|
|
$
|
3,882
|
|
|
14.8
|
%
|
|
|
|
|
|
|
|
|
|||||||
Selling, general and administrative expenses as % of Net revenue:
|
12.4
|
%
|
|
13.0
|
%
|
|
N/A
|
|
|
(0.6
|
)%
|
|
Six Months Ended
|
|
|
|
|
|||||||||
|
September 29,
2018 |
|
September 30,
2017 |
|
$ Change
|
|
% Change
|
|||||||
Selling, general and administrative expenses:
|
|
|
|
|
|
|
|
|||||||
Factory-built housing
|
$
|
50,970
|
|
|
$
|
44,683
|
|
|
$
|
6,287
|
|
|
14.1
|
%
|
Financial services
|
8,278
|
|
|
7,775
|
|
|
503
|
|
|
6.5
|
%
|
|||
|
$
|
59,248
|
|
|
$
|
52,458
|
|
|
$
|
6,790
|
|
|
12.9
|
%
|
|
|
|
|
|
|
|
|
|||||||
Selling, general and administrative expenses as % of Net revenue:
|
12.1
|
%
|
|
12.9
|
%
|
|
N/A
|
|
|
(0.8
|
)%
|
|
Three Months Ended
|
|
|
|
|
|||||||||
|
September 29,
2018 |
|
September 30,
2017 |
|
$ Change
|
|
% Change
|
|||||||
Income before income taxes:
|
|
|
|
|
|
|
|
|||||||
Factory-built housing
|
$
|
16,880
|
|
|
$
|
8,584
|
|
|
$
|
8,296
|
|
|
96.6
|
%
|
Financial services
|
2,637
|
|
|
(85
|
)
|
|
2,722
|
|
|
(3,202.4
|
)%
|
|||
|
$
|
19,517
|
|
|
$
|
8,499
|
|
|
$
|
11,018
|
|
|
129.6
|
%
|
|
Six Months Ended
|
|
|
|
|
|||||||||
|
September 29,
2018 |
|
September 30,
2017 |
|
$ Change
|
|
% Change
|
|||||||
Income before income taxes:
|
|
|
|
|
|
|
|
|||||||
Factory-built housing
|
$
|
38,488
|
|
|
$
|
21,754
|
|
|
$
|
16,734
|
|
|
76.9
|
%
|
Financial services
|
5,165
|
|
|
2,396
|
|
|
2,769
|
|
|
115.6
|
%
|
|||
|
$
|
43,653
|
|
|
$
|
24,150
|
|
|
$
|
19,503
|
|
|
80.8
|
%
|
|
Six Months Ended
|
|
|
||||||||
|
September 29,
2018 |
|
September 30,
2017 |
|
$ Change
|
||||||
Cash, cash equivalents and restricted cash at beginning of the period
|
$
|
199,258
|
|
|
$
|
144,839
|
|
|
$
|
54,419
|
|
Net cash provided by operating activities
|
17,808
|
|
|
8,685
|
|
|
9,123
|
|
|||
Net cash used in investing activities
|
(3,170
|
)
|
|
(2,169
|
)
|
|
(1,001
|
)
|
|||
Net cash used in financing activities
|
(4,201
|
)
|
|
(942
|
)
|
|
(3,259
|
)
|
|||
Cash, cash equivalents and restricted cash at end of the period
|
$
|
209,695
|
|
|
$
|
150,413
|
|
|
$
|
59,282
|
|
Exhibit No.
|
Exhibit
|
101
|
The following materials contained in this Quarterly Report on Form 10-Q for the period ended September 29, 2018 were formatted in XBRL (eXtensible Business Reporting Language): (i) Consolidated Balance Sheets, (ii) Consolidated Statements of Comprehensive Income, (iii) Consolidated Statements of Cash Flows and (iv) Notes to Consolidated Financial Statements
|
Cavco Industries, Inc.
|
|
|
|
Registrant
|
|
|
|
|
|
|
|
Signature
|
|
Title
|
Date
|
|
|
|
|
/s/ Daniel L. Urness
|
|
President and Acting Chief Executive Officer
|
November 8, 2018
|
Daniel L. Urness
|
|
(Principal Executive Officer)
|
|
|
|
|
|
/s/ Joshua J. Barsetti
|
|
Chief Accounting Officer
|
November 8, 2018
|
Joshua J. Barsetti
|
|
(Principal Financial Officer)
|
|
|
|
|
|
(iii)
|
Claims under federal, state and municipal laws, regulations, ordinance or court decisions of any kind;
|
(iv)
|
Claims of discrimination, harassment or retaliation, whether based on race, color, religion, gender, sex, age, sexual orientation, handicap and/or disability, national origin, whistleblowing or any other legally protected class;
|
(v)
|
Claims under the AGE DISCRIMINATION IN EMPLOYMENT ACT, Title VII of the Civil Rights Act of 1964, as amended, the Genetic Information Nondiscrimination Act, the Family and Medical Leave Act, as amended, the Americans with Disabilities Act, as amended, and similar federal, state, and local laws, statutes, and ordinances;
|
(vi)
|
Claims under the Employee Retirement Income Security Act, the Occupational Safety and Health Act and similar state and local laws;
|
(vii)
|
Claims for wages and benefits (including without limitation, bonuses, severance benefits, health and welfare benefits, vacation pay and other fringe-type benefits);
|
/s/ David A. Greenblatt
|
David A. Greenblatt
|
/s/ Joseph H. Stegmayer
|
Joseph H. Stegmayer
|
1.
|
Salary
: Commencing on November 8, 2018 (the “Commencement Date”), your salary (the “Base Salary”) will be $255,000 per year, subject to customary deductions for taxes and other withholdings, payable in accordance with the Company’s customary payroll practices.
|
2.
|
Annual Incentive Bonus
: Your bonus for fiscal year ending March 2019 will be a hybrid bonus computed as the amount you would have earned under your original bonus arrangement for fiscal year 2019 while you worked as the Company’s Chief Financial Officer (which was previously disclosed in the Company’s filings with the SEC), prorated for the portion of the fiscal year while you were the Chief Financial Officer of the Company, plus a bonus to be determined in the Employment Agreement to be entered into by you and the Company at a later date (the “Employment Agreement”) (assuming that you and the Company (through the Committee) can reach a mutually acceptable Employment Agreement, which neither you nor the Company are obligated to do), as described below, for the period of time from the Commencement Date through and including the last day of the fiscal year ending March 2019.
|
3.
|
Equity Awards
: You will be eligible to receive one or more grants of equity in the stock of the Company, in amounts and upon such terms and conditions as the Compensation Committee and/or the Board shall determine, and such awards to be made during the fiscal year ending March 2019 will be reflected in the Employment Agreement.
|
4.
|
Non-Competition Provisions
: You and the Company (through the Committee) will agree to the terms of mutually acceptable non-competition provisions that will affect your ability to work for or perform services for other persons or companies in the event you are no longer employed by the Company under certain circumstances. The non-competition provisions will be set forth in detail in the Employment Agreement.
|
5.
|
Change of Control
: We want to provide you (defined as the “Executive”) with certain protection under certain circumstances in the event of a change in control of the Company. Accordingly, if within two years after the occurrence of a Change in Control (as defined in that certain Amended and Restated Employment Agreement, dated as of April 1, 2011 (the “Former CEO Employment Agreement”), by and between Joseph Stegmayer and the Company), the Executive’s employment is terminated as the result of a Termination Without Cause (as defined in the Former CEO Employment Agreement), and such termination constitutes a Separation from Service (as defined in Section 10 of the Former CEO Employment Agreement), the Company will pay to the Executive a lump sum termination payment equal to three times the Executive’s Base Salary. Subject to Section
|
6.
|
Employment Agreement
. It is the intention of the Committee (or the Compensation Committee of the Board) and you to negotiate and enter into a mutually acceptable Employment Agreement between you and the Company, which agreement will contain additional, substantive provisions and will supersede and replace this Letter. It is my goal that such Employment Agreement would be negotiated and executed within 30 days of this Letter, but in no event later than December 31, 2018 if such an agreement can be reached by you and the Company (through the Committee).
|
7.
|
Employment at Will
. You acknowledge that you are and remain an employee at will with the Company, and this Letter does not confer on you any long-term employment arrangement with you. Any such arrangement for a relationship that is not one of employment-at-will would be contained, if such is the agreement of you and the Company (through the Committee), in the Employment Agreement.
|
8.
|
Reimbursement of Expenses
. The Company agrees to promptly reimburse you, or (at your sole option) directly pay any invoice submitted to the Company, for costs and expenses (including, without limitation, attorneys’ fees and costs) that you incur relating to your acceptance of this position; review of associated agreements, bylaws, insurance policies, and other corporate documents; preparation and negotiation of this Letter; and preparation and negotiation of the subsequent Employment Agreement, provided that the amount to be reimbursed or paid by the Company under this Section 8 shall be limited to $30,000.
|
9.
|
Governing Law; Jurisdiction; Venue
. This Letter and all questions relating to its validity, interpretation, performance, and enforcement shall be governed by, construed, interpreted, and enforced in accordance with the substantive laws of the State of Arizona, without reference to any conflict-of-law rule, principle, statute, or regulation that would result in the application of any other laws. You and the Company each hereby waives any objection that either may have to the jurisdiction of the courts, state or federal, located in Maricopa County, Arizona. You and the Company each agrees that the sole and exclusive venue for any dispute arising out of or relating to this Letter shall be the courts, state or federal, of competent jurisdiction located in Maricopa County, Arizona.
|
/s/ William C. Boor
|
William C. Boor
|
Chairman, Audit Committee
|
Board of Directors
|
/s/ Daniel L. Urness
|
Daniel L. Urness
|
/s/ William C. Boor
|
William C. Boor
|
Chairman, Audit Committee
|
/s/ Daniel L. Urness
|
Daniel L. Urness
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Cavco Industries, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
Dated:
|
November 8, 2018
|
|
|
By:
|
/s/ Daniel L. Urness
|
|
Daniel L. Urness
|
|
President and Acting Chief Executive Officer
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Cavco Industries, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
Dated:
|
November 8, 2018
|
|
|
By:
|
/s/ Joshua J. Barsetti
|
|
Joshua J. Barsetti
|
|
Chief Accounting Officer
|
(1)
|
The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.
|
November 8, 2018
|
|
/s/ Daniel L. Urness
|
Daniel L. Urness
|
President and Acting Chief Executive Officer
|
|
/s/ Joshua J. Barsetti
|
Joshua J. Barsetti
|
Chief Accounting Officer
|
|
|
|
Media Contact:
John Lovallo
Phone:
917-612-8419
Email:
jlovallo@levick.com
|
||
News Release
|
|