Financial Performance - Net sales for the three months ended September 28, 2024, increased to $616,877,000, up 33% from $464,236,000 for the same period last year[8]. - Gross profit for the six months ended September 28, 2024, was $330,548,000, representing a 34% increase from $246,162,000 for the same period last year[8]. - Net income attributable to Champion Homes, Inc. for the three months ended September 28, 2024, was $54,734,000, a 20% increase from $45,669,000 for the same period last year[8]. - Total revenue for the three months ended September 28, 2024, was $616.877 million, compared to $464.236 million for the same period in 2023, reflecting a 32.7% increase[54]. - Net sales for the six months ended September 28, 2024, were $1.2 billion, an increase of $315.7 million, or 34.0%, compared to the same period last year[103]. - Adjusted EBITDA for the three months ended September 28, 2024, was $74.2 million, an increase of $15.4 million, or 26.2%, from the same period last year[101]. - Total gross profit increased by $84.4 million, or 34.3%, to $330.5 million for the six months ended September 28, 2024[107]. Assets and Liabilities - Total current assets increased to $1,014,114,000 as of September 28, 2024, compared to $918,302,000 as of March 30, 2024, reflecting a growth of 10.4%[7]. - Total liabilities increased to $535,416,000 as of September 28, 2024, from $501,971,000 as of March 30, 2024, reflecting a rise of 6.6%[7]. - Retained earnings increased to $924,408,000 as of September 28, 2024, compared to $866,485,000 as of March 30, 2024, showing a growth of 6.7%[7]. - Total assets increased to $2.03 billion as of September 28, 2024, compared to $1.92 billion as of September 30, 2023[64]. - Other current liabilities totaled $268.4 million as of September 28, 2024, an increase from $247.5 million as of March 30, 2024[44]. Cash Flow and Investments - The company reported net cash provided by operating activities of $144,442,000 for the six months ended September 28, 2024, compared to $129,138,000 for the same period last year, an increase of 11.8%[12]. - Cash used in investing activities decreased to $22.6 million for the six months ended September 28, 2024, from $174.6 million in the same period of the prior year, due to reduced investments in floor plan loans and ECN stock[130]. - Cash used in financing activities was $47.3 million for the six months ended September 28, 2024, compared to $0.8 million in the same period of the prior year, primarily due to $40.0 million in common stock repurchases[131]. - The company has a $200.0 million revolving credit facility, with $168.5 million available for borrowing as of September 28, 2024[128]. Shareholder Activities - The Company issued 19,000 shares under equity-based compensation plans during the three months ended September 28, 2024, resulting in an additional capital paid in of $574,365[14]. - Champion Homes, Inc. repurchased 214,000 shares during the three months ended September 28, 2024, totaling $20,141[14]. - The Board of Directors approved a share repurchase program for up to $120 million, with an additional $20 million approved on October 28, 2024[142]. - During the three months ended September 28, 2024, the Company repurchased 214,275 shares at an average price of $93.32 per share[142]. - The share repurchase program does not have an expiration date and may be suspended or discontinued at any time[142]. Operational Highlights - The company operates 43 manufacturing facilities in the U.S. and 5 in Canada, with 72 sales centers across the U.S. as of September 28, 2024[19]. - The number of U.S. homes sold increased by 31.3% to 6,357 units for the three months ended September 28, 2024, compared to 4,842 units for the same period in 2023[82]. - U.S. manufacturing facilities in operation at the end of the period increased to 43, up from 39 in the prior year[82]. - The Company completed the acquisition of Regional Homes in October 2023, which constituted approximately 26% of total assets and about 24% of net sales for the six months ended September 28, 2024[139]. Expenses and Taxation - Selling, general, and administrative expenses for the three months ended September 28, 2024, were $99.7 million, an increase of $35.2 million, or 54.6%, compared to $64.5 million for the same period in 2023[91]. - Income tax expense for the three months ended September 28, 2024, was $15.4 million, with an effective tax rate of 21.6%, compared to $14.8 million and 24.5% in the prior year[97]. - Interest income, net decreased to $4.7 million for the three months ended September 28, 2024, down from $10.5 million, a change of 54.8%[95]. Acquisitions and Investments - The Company acquired Regional Enterprises, LLC for a total purchase consideration of $316.9 million, which included $279.5 million in cash and 455,098 shares of common stock valued at approximately $27.9 million[31]. - The Company made a $137.8 million equity investment in ECN Capital Corp., acquiring approximately 12% of its total outstanding common shares[40]. - The investment in ECN's common stock totaled $70.5 million as of September 28, 2024, reflecting a share of earnings of $0.7 million for the three months ended[41]. Compliance and Controls - The Company's disclosure controls and procedures were evaluated as effective as of September 28, 2024, by the CEO and CFO[138]. - There were no changes in internal control over financial reporting that materially affected the Company during the fiscal quarter[139].

Financial Data and Key Metrics Changes - Net sales increased 33% to $617 million compared to the same quarter last year, with U.S. factory-built housing revenue increasing 37% [18] - Net income attributable to Champion Homes for the second quarter increased 20% to $55 million or earnings of $0.94 per diluted share compared to $46 million or earnings of $0.79 per diluted share during the same period last year [24] - Adjusted EBITDA for the quarter was $74 million compared to $59 million in the prior year period, with an adjusted EBITDA margin of 12.0% compared to 12.7% in the prior year period [25] Business Line Data and Key Metrics Changes - Home sales increased 29% year-over-year to 6,536 units, with a 14% increase in organic sales orders year-over-year [9] - The average selling price per U.S. homes sold increased by 4.5% to $92,400 due to a higher mix of units sold through company-owned retail sales centers [19] - Manufacturing capacity utilization was 60% compared to 58% in the sequential first quarter of fiscal 2025 [20] Market Data and Key Metrics Changes - Canadian revenue during the quarter was $22 million, representing a 23% decline in the number of homes sold and a 1.5% decline in the average selling price per home versus the prior year period [21] - The company observed a softening in order rates in the third fiscal quarter, which is typical for the slower winter selling season [13] Company Strategy and Development Direction - The company is enhancing its digital direct-to-consumer strategy and advancing the integration of the Regional Homes acquisition [8] - Champion Financing has gained significant momentum, with new financing options launched for independent dealers and consumer client financing programs [12] - The company is strategically expanding its reach into Builder-as-a-Service and consumer retail sales through digital platforms [28] Management's Comments on Operating Environment and Future Outlook - Management expressed concern for those affected by hurricanes and noted that 9 of their 48 plant locations were impacted, leading to expected timing delays in order fulfillment [14] - Despite immediate headwinds, management anticipates strong medium- and long-term demand in hurricane-affected regions, which is expected to increase demand for housing [16] - The outlook remains optimistic, with healthy demand and resilient margins expected to support sustained growth [27] Other Important Information - The company returned capital to shareholders through $20 million in share repurchases and replenished its $100 million share repurchase authority [26] - The effective tax rate for the quarter was 21.6%, positively impacted by an increase in recognition of tax credits related to energy-efficient homes [23] Q&A Session Summary Question: Impact of storms on volume and revenue - Management indicated that production was interrupted due to power outages and flooding, and catching up on demand will depend on infrastructure rebuild [31] Question: Gross margin performance - Management noted positive impacts on gross margins from lower forest product input costs and stronger captive retail sales, with purchase accounting impacts expected to be immaterial going forward [33] Question: Expectations for order rates and backlog - Management expects a softening in order rates due to the presidential election and anticipates backlog may moderate before picking up in the spring and summer selling season [37] Question: Builder developer channel performance - Management reported strong order growth from community REITs and builder developers, with optimism in the marketplace [39] Question: M&A appetite and capital allocation - Management confirmed M&A is a priority, with a robust pipeline and plans for further acquisitions alongside innovation and shareholder returns [40] Question: FEMA orders and charter rates - Management has not received FEMA orders yet but expects significant demand for housing in affected regions, with charter rates currently running at about 8% to 8.5% for good credit [45][46]

Champion Homes (SKY) came out with quarterly earnings of $0.93 per share, beating the Zacks Consensus Estimate of $0.61 per share. This compares to earnings of $0.82 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 52.46%. A quarter ago, it was expected that this manufactured and modular housing maker would post earnings of $0.69 per share when it actually produced earnings of $0.91, delivering a surprise of 31.88%.Over the las ...

CHAMPION HOMES ANNOUNCES SECOND QUARTER FISCAL 2025 RESULTS Troy, Michigan, October 28, 2024 /Business Wire/ -- Champion Homes, Inc. (NYSE: SKY) ("Champion Homes") today announced financial results for its second quarter ended September 28, 2024 ("fiscal 2025"). Second Quarter Fiscal 2025 Highlights (compared to Second Quarter Fiscal 2024) • Net sales increased 32.9% to $616.9 million • U.S. homes sold increased 31.3% to 6,357 • Total backlog increased 5.6% to $427 million from the sequential first quarter ...

Champion Homes, Inc. NYSE: SKY, formerly Skyline Champion, got a name change in 2024, doing little to alter the outlook. The outlook is bright because market conditions, persistently low housing inventory, and its focus on affordability make it a winner for consumers. Skyline Champion Today | --- | --- | |--------------------------------|-------| | | | | | | | | | | SKY | | | Skyline Champion | | | $94.65 | | | +0.74 (+0.79%) 52-Week Range | | | $52.12 | | | ▼ | | | $97.22 | | | P/E Ratio 38.79 | | | Price ...

Investors in Champion Homes, Inc.(SKY) need to pay close attention to the stock based on moves in the options market lately. That is because the Nov 15, 2025 $70.00 Put had some of the highest implied volatility of all equity options today. What is Implied Volatility? Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could a ...

Financial Data and Key Metrics Changes - Net sales increased 35% to $628 million compared to the same quarter last year, with U.S. factory-built housing revenue rising 40% [10] - The number of homes sold increased 36% to 6,538 homes in the U.S. compared to 4,817 homes in the prior year period [10] - Consolidated gross profit increased 27% to $164 million, while gross margin contracted by 170 basis points to 26.2% [12][13] - Net income for the first quarter decreased 11% to $46 million or $0.79 per diluted share compared to $51 million or $0.89 per diluted share during the same period last year [14] Business Line Data and Key Metrics Changes - Home sales climbed 33% year-over-year to reach 6,705 units, with organic sale orders increasing 60% year-over-year [4] - U.S. factory-built housing revenue increased 40%, supported by additional retail and manufacturing capacity from the Regional Homes acquisition [10] - Canadian revenue declined 24% in the number of homes sold, partially mitigated by a 5% increase in the average home selling price [12] Market Data and Key Metrics Changes - Demand in Canada remains soft due to inflation and economic uncertainty affecting consumer sentiment [4] - Average selling price per U.S. homes sold increased by 3% to $91,700, reflecting a higher mix of retail units sold [10] - Average selling price in Canada increased to $124,500 due to a shift in product mix [12] Company Strategy and Development Direction - The company is focused on enhancing customer channels, integrating Regional Homes, and realizing benefits from the Champion Financing joint venture [3] - The strategic actions aim to strengthen market position and provide accessible housing solutions [7] - The company is expanding into Builder as a Service with digital platforms and consumer retail, along with innovative financing solutions [17] Management's Comments on Operating Environment and Future Outlook - Management anticipates flat or possibly down top-line performance for the second quarter due to weather impacts on production and shipment timing [8] - Despite challenges in traditional new home construction, there is a rise in demand attributed to affordable pricing and enhanced quality [8] - The company expects gross margins to fluctuate quarter-to-quarter based on wholesale unit volumes and product mix [15] Other Important Information - The company changed its corporate name to Champion Homes, Inc., emphasizing its commitment to expanding market presence [7] - The effective tax rate for the quarter was 22.5%, positively impacted by increased recognition of tax credits related to energy-efficient homes [15] - The company generated $85 million of operating cash flows for the quarter, reflecting higher adjusted net income and favorable working capital changes [16] Q&A Session Summary Question: Can you provide color on the outperformance relative to initial expectations? - Management noted that orders were stronger than anticipated, with consistent demand across all channels, except Canada [20] Question: Is the fiscal Q2 guidance conservative due to potential weather events? - Management indicated that guidance reflects potential delivery timing impacts from weather events [23] Question: How is the demand cadence, particularly in retail? - Retail demand has been strong, with expectations of slight softening due to weather conditions [25] Question: What is the status of community channel demand? - The community channel is healthy, with builder demand showing strong growth [26] Question: How does the company view backlog levels? - Management aims to maintain backlogs at 8 to 12 weeks, monitoring order pace closely [29] Question: What are the expectations for gross margins moving forward? - Gross margins are expected to fluctuate based on product mix and sales channels, with a potential range of 100 to 200 basis points [31] Question: What is driving the increase in activity despite a weakening consumer environment? - The company is meeting the demand for affordable homes, supported by direct-to-consumer marketing and financing solutions [40] Question: How does the company expect sales to progress seasonally through the year? - Management expects the second half of the year to be stronger than previously anticipated, with seasonal dynamics influencing sales [43]

Financial Performance - Net sales for the three months ended June 29, 2024, increased to $627,779,000, up 35.1% from $464,769,000 for the same period in 2023[8] - Gross profit for the same period was $164,215,000, representing a gross margin of 26.2%, compared to $129,673,000 in 2023[8] - Operating income decreased to $55,388,000, down 6.9% from $59,234,000 year-over-year[8] - Net income for the three months ended June 29, 2024, was $45,794,000, a decrease of 10.5% from $51,269,000 in the prior year[8] - For the three months ended June 29, 2024, the total revenue was $627.8 million, compared to $401.1 million for the same period in 2023, reflecting a significant increase[47] - The net income attributable to the Company's common shareholders for the three months ended June 29, 2024, was $45.8 million, down from $51.3 million in the prior year[49] - The Company recorded an effective tax rate of 22.5% for the three months ended June 29, 2024, compared to 25.2% for the same period in 2023[48] - Adjusted EBITDA for the three months ended June 29, 2024, was $75.0 million, compared to $66.8 million in the same period of 2023[74] - Selling, general, and administrative expenses rose to $108.8 million, an increase of $38.4 million, or 54.5%, compared to $70.4 million in the prior year[78] Assets and Liabilities - Total current assets increased to $975,928,000, up 6.3% from $918,302,000 as of March 30, 2024[7] - Total assets reached $1,987,130,000, reflecting a growth of 3.3% from $1,923,341,000[7] - Cash and cash equivalents at the end of the period were $548,933,000, an increase of 10.9% from $495,063,000 at the beginning of the period[12] - Total stockholders' equity increased to $1,450,747,000, up 2.0% from $1,422,370,000[7] - The company reported a net cash provided by operating activities of $84,616,000, compared to $74,857,000 in the same period last year[12] - The company had outstanding borrowings on floor plan financing agreements of $92.9 million as of June 29, 2024, with a total credit line capacity of $223.0 million[46] - The accrued warranty obligations increased to $54.1 million as of June 29, 2024, from $35.1 million at the end of the same period in 2023[41] - The average cash balance decreased to $521.998 million for the three months ended June 29, 2024, down from $772.585 million in the same period of the prior year[82] Acquisitions and Investments - The company acquired Regional Enterprises, LLC for a total consideration of $316.9 million, including $279.5 million in cash and 455,098 shares valued at approximately $27.9 million[25] - The Company completed the acquisition of Regional Homes in October 2023, which constituted approximately 26% of total assets and 24% of net sales for the three months ended June 29, 2024[104] - The investment in ECN Capital Corporation totaled $70.1 million as of June 29, 2024, with the Company owning approximately 19.9% of the voting shares[37] - The Company made an equity investment in ECN to facilitate the creation of a captive finance company, Champion Financing, to provide financing solutions[64] Manufacturing and Sales - Champion Homes, Inc. operates 43 manufacturing facilities in the U.S. and 5 in Canada, focusing on factory-built homes and retail sales through 72 sales centers[15] - U.S. Factory-built Housing segment net sales reached $599.5 million, up 39.8% from $428.8 million year-over-year[52] - The Company's backlog increased to $404.8 million as of June 29, 2024, compared to $260.0 million as of July 1, 2023[67] - Approximately 88% of the Company's U.S. manufacturing sales were generated from homes complying with HUD code standards[68] - U.S. manufacturing and retail net sales increased by $170.7 million, or 39.8%, primarily due to the inclusion of $151.5 million from Regional Homes[71] Expenses and Costs - Depreciation expense for the three months ended June 29, 2024, was $7.7 million, an increase from $4.6 million in the same period of 2023[31] - Amortization of intangible assets for the three months ended June 29, 2024, was $2.9 million, slightly down from $3.0 million in the prior year[34] - Interest income, net was $(4.2) million for the three months ended June 29, 2024, compared to $(9.3) million in the same period of the prior fiscal year, a change of $5.1 million or 54.3%[82] Legal and Compliance - The company is involved in various legal proceedings, including commercial disputes and product liability claims[105] - The company has excluded the acquired operations of Regional Homes from its assessment of internal control over financial reporting for the first year following the acquisition[104] - The company's disclosure controls and procedures were evaluated as effective as of June 29, 2024, by the CEO and CFO[103] - The company maintains reasonable assurance that required information is disclosed in compliance with the Securities Exchange Act of 1934[103] Risks and Future Outlook - The company is assessing the impact of new accounting standards updates on its financial statement disclosures, effective for fiscal 2025 and fiscal 2026[23][24] - The company is exposed to risks related to public health issues, such as epidemics or pandemics, which could disrupt business operations[100] - There have been no significant changes in interest rate and foreign exchange risks since March 30, 2024[102] - The company assumes no obligation to update forward-looking statements unless required by law[101]

Skyline (SKY) came out with quarterly earnings of $0.91 per share, beating the Zacks Consensus Estimate of $0.69 per share. This compares to earnings of $0.89 per share a year ago. These figures are adjusted for nonrecurring items. This quarterly report represents an earnings surprise of 31.88%. A quarter ago, it was expected that this manufactured and modular housing maker would post earnings of $0.67 per share when it actually produced earnings of $0.62, delivering a surprise of -7.46%. Over the last four ...

CHAMPION HOMES ANNOUNCES FIRST QUARTER FISCAL 2025 RESULTS Troy, Michigan, August 6, 2024 /Business Wire/ -- Champion Homes, Inc., formerly known as Skyline Champion Corporation (NYSE: SKY) ("Champion Homes"), today announced financial results for its first quarter ended June 29, 2024 ("fiscal 2025"). Skyline Champion Corporation Changes Corporate Name Change to Champion Homes, Inc. First Quarter Fiscal 2025 Highlights (compared to First Quarter Fiscal 2024) • Net sales increased 35.1% to $627.8 million • U ...