Replies to post #421644 on Zeev's Turnips Patch-No Politics (ZEEV)

[OTC BB King]

CAV .12 from 52 wk HIGH! Up 21% > Strong FEMA Ties Info >

http://www.bizjournals.com/birmingham/stories/2004/08/30/daily21.html
http://www.bizjournals.com/birmingham/stories/2005/03/07/daily22.html

March 11, 2005
Cavalier reports profits for 2004, credits FEMA purchases
Manufactured home maker Cavalier Homes Inc. is reporting profits for both the fourth quarter and full year ended Dec. 31, 2004, due in large part to late-year shipments the Addison company provided the Federal Emergency Management Agency for hurricane-ravaged Florida.




Recent Company News


"We think these results demonstrate, to some extent, our efforts over the past several years to right-size our company for the tough conditions that we have experienced - and continue to experience - in the marketplace," Cavalier's president and chief executive David Roberson said in a written statement.

Fourth quarter revenue increased 36 percent to $76 million compared to $56 million in fourth quarter 2003. The boost is attributed to a 38 percent increase that quarter in manufactured home sales to $73.43 million from $53.18 million one year ago.

Meanwhile, shipments for the quarter increased 30 percent to 3,353 units from 2,576 the same period one year ago, indicating a 2 percent comparable increase excluding the 714 units shipped under the FEMA agreement

[cash2go]

Not selling my BSM here

Market cap still well below 200M. Number of shares 20M. The Prosate treatment they sold is expected to bring 30 to 60M and the sell was a planned move to finance the future.

From their recent 10Q

One of our significant contributions to the advancement of medical therapy has been our pioneering efforts in developing a new treatment for conditions associated with enlargement of the prostate that afflicts most men as they age. As the prostate enlarges it constricts urine flow. The condition is known medically as benign prostatic hyperplasia or BPH. We developed a technology that allows men to be treated for BPH through an outpatient procedure as an alternative to surgery or a lengthy regimen of medication.

We determined early in our planning that we would treat our BPH development as a spin-off business with the intent of providing an asset that could help fund our other business plans. As a result, we introduced the opportunity to investment groups and subsequently, on October 31, 1997, entered into an agreement with investors Oracle Strategic Partners, L.P. and Charles Manker. Together we established a new company, TherMatrx, which was independently managed.

On July 15, 2004, TherMatrx was sold to American Medical Systems, Inc. (AMS). Our portion of the initial payment from this sale was nearly $9 million, with additional payments contingent on the quarterly sales of TherMatrx through the fourth calendar quarter of 2005. We received additional payments totaling $1,094,406 during the quarter ended February 28, 2005. During the quarter ended May 31, 2005, we received payments of $5,457,683, to bring the total payments to date to $15,526,532. We have estimated that our portion of the total payout from this sale will be between $30 and $40 million. If TherMatrx sales exceed our projections, the maximum payout that we could receive from the sale is $62.5 million. If TherMatrx sales fall under our projections, there is no guarantee of any further payment beyond those payments already received.