UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q For the transition period from to ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended July 2, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (Exact name of registrant as specified in its charter) Indiana 35-1038277 (State of Incorporation) (I.R.S. Employer Identification No.) 755 West Big Beaver Road, Suite ...

Financial Data and Key Metrics Changes - In Q1 2023, net sales increased by 42% to $726 million compared to the same quarter last year [25] - Adjusted EBITDA rose by 159% to $163 million, with an adjusted EBITDA margin expanding by over 1,000 basis points to 22.4% [36] - Net income for the quarter was $117 million, or $2.04 per diluted share, compared to $43 million, or $0.75 per diluted share in the prior year [35] Business Line Data and Key Metrics Changes - U.S. factory-built housing segment revenue grew by $204 million, driven by a 7% increase in the number of homes sold, totaling 6,813 homes [26] - Average selling price (ASP) for U.S. homes sold increased by 35% to $97,000 due to price adjustments for inflation [27] - Canadian revenue increased by 19% to $45 million, driven by a 30% increase in ASP, despite a 9% decline in the number of homes sold [30] Market Data and Key Metrics Changes - Backlog at the end of June decreased by $264 million to $1.4 billion compared to the March quarter [15] - Lead times improved to 28 weeks from 35 weeks at the end of the March quarter due to enhanced production capabilities [15] - Minimal cancellations were observed at the end consumer level, indicating strong demand for affordable housing [13] Company Strategy and Development Direction - The company is focused on increasing production levels and reducing backlogs to pre-pandemic levels of 4 to 12 weeks [16] - Investments in manufacturing technology and customer digital access are prioritized to enhance affordability and attainability of homes [21] - The acquisition of Alta Cima and the integration of the Manis custom builders are aimed at expanding manufacturing footprint and enhancing customer experience [11][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the current economic environment due to structural improvements and operational initiatives [37] - The demand for affordable housing remains strong, driven by rising rental rates and inflationary pressures [17] - The company anticipates that margins will normalize back to fiscal 2022 levels as the one-time effects of FEMA orders subside [38] Other Important Information - The company produced almost 90% of a $200 million FEMA disaster relief order during the quarter, recognizing approximately $83 million in revenue [9][27] - Cash and cash equivalents stood at $464 million, with long-term borrowings of $12 million and no maturities until 2029 [39] - The company plans to utilize its favorable liquidity position to reinvest in the business for long-term growth [40] Q&A Session Summary Question: Can you provide more detail on demand by channel and visibility into community build for rent? - Management noted strong demand in community REITs and build-to-rent channels, with retail demand remaining good despite a 20% decline in traffic [50] Question: Regarding FEMA units, how should we think about the September quarter? - Management confirmed that approximately $97 million in revenue from FEMA units will be recognized in the September quarter, expecting a relatively flat top line quarter-over-quarter [54] Question: What is the outlook for average selling prices (ASPs)? - ASPs are expected to remain flat in the second quarter, with a potential return to normal levels in the second half of the year due to consumer preferences for fewer options [60] Question: How stable is the backlog given the current environment? - Management indicated that consumer cancellations have been minimal, and the stability of the backlog is good despite some dealer inventory adjustments [62] Question: What are the drivers of margin increases this quarter? - Management highlighted efficient FEMA production and favorable lumber pricing as key drivers, but noted that margins may normalize in the second half of the year [70] Question: How is the company adapting to changes in sales channels? - Management stated that retail sales account for about 50% of total sales, with growth in other channels like build-to-rent and builder developers [106] Question: What are the current trends in zoning regulations? - Management observed a reduction in zoning regulatory barriers, with increased focus on affordable housing initiatives at state and local levels [102]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K [X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended April 2, 2022 [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE PERIOD FROM TO Commission File Number 001-04714 Skyline Champion Corporation (Exact name of registrant as specified in its charter) Indiana 35-1038277 (State of Incorporation) (I.R.S. Employer Identif ...

Skyline Champion Corporation (NYSE:SKY) Q4 2022 Earnings Conference Call May 24, 2022 9:00 AM ET Company Participants Mark Yost - President and CEO Laurie Hough - Executive Vice President and CFO Conference Call Participants Greg Palm - Craig-Hallum Capital Group Daniel Moore - CJS Securities Matthew Bouley - Barclays Mike Dahl - RBC Capital Markets Operator Good morning. And welcome to Skyline Champion Corporation’s Fourth Quarter and Full Year Fiscal 2022 Earnings Call. The company issued an earnings pres ...

PART I – FINANCIAL INFORMATION [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) The unaudited condensed consolidated financial statements for Skyline Champion Corporation for the three and nine months ended January 1, 2022, are presented, including Balance Sheets, Income Statements, Cash Flows, and Stockholders' Equity, with detailed notes [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of January 1, 2022, total assets and stockholders' equity significantly increased, primarily due to higher cash and retained earnings, while long-term debt decreased Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | January 1, 2022 | April 3, 2021 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $382,133 | $262,581 | | Total current assets | $634,709 | $499,767 | | Total assets | $1,068,151 | $917,902 | | **Liabilities & Equity** | | | | Total current liabilities | $283,609 | $263,642 | | Long-term debt | $12,430 | $39,330 | | Total liabilities | $334,773 | $349,291 | | Retained earnings | $241,135 | $82,898 | | Total stockholders' equity | $733,378 | $568,611 | [Condensed Consolidated Income Statements](index=4&type=section&id=Condensed%20Consolidated%20Income%20Statements) The company reported significant year-over-year growth for both the third quarter and the first nine months of fiscal 2022, with net sales increasing by **41.6%** to **$534.7 million** and net income more than tripling to **$67.6 million** for Q3, and net sales growing **61.2%** to **$1.57 billion** with net income tripling to **$161.2 million** for the nine-month period Income Statement Summary (Unaudited, in thousands) | Metric | Q3 2022 (ended Jan 1, '22) | Q3 2021 (ended Dec 26, '20) | 9 Months 2022 (ended Jan 1, '22) | 9 Months 2021 (ended Dec 26, '20) | | :--- | :--- | :--- | :--- | :--- | | Net sales | $534,690 | $377,581 | $1,569,112 | $973,232 | | Gross profit | $157,239 | $71,784 | $398,096 | $188,580 | | Operating income | $91,414 | $27,498 | $216,908 | $62,114 | | Net income | $67,622 | $21,599 | $161,246 | $51,013 | | Diluted EPS | $1.18 | $0.38 | $2.81 | $0.90 | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the nine months ended January 1, 2022, net cash provided by operating activities increased to **$164.4 million**, while cash used in investing activities rose significantly and cash used in financing activities decreased due to lower debt repayments Cash Flow Summary (Unaudited, in thousands) | Cash Flow Activity | Nine months ended Jan 1, 2022 | Nine months ended Dec 26, 2020 | | :--- | :--- | :--- | | Net cash provided by operating activities | $164,406 | $103,816 | | Net cash used in investing activities | ($22,921) | ($1,213) | | Net cash used in financing activities | ($21,355) | ($47,938) | | Net increase in cash and cash equivalents | $119,552 | $57,605 | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) These notes provide detailed information supporting the financial statements, covering the company's business, the ScotBilt Homes acquisition, debt facilities, revenue disaggregation, and segment performance data - The company is a leading producer of factory-built housing in the U.S. and Canada, operating **35** manufacturing facilities in the U.S. and **five** in western Canada[21](index=21&type=chunk) - On February 28, 2021, the Company acquired **100%** of ScotBilt Homes, LLC for a total purchase consideration of **$54.5 million**, which was accounted for as a business combination[31](index=31&type=chunk) - On July 7, 2021, the Company entered into an Amended and Restated Credit Agreement for a new revolving credit facility of up to **$200.0 million**, replacing its previous **$100.0 million** facility, with outstanding borrowings of **$26.9 million** repaid in July 2021[45](index=45&type=chunk) - The company is contingently liable under repurchase agreements with lending institutions, with an estimated contingent repurchase obligation of **$281.7 million** as of January 1, 2022, for which a loss reserve of **$1.8 million** was recorded[66](index=66&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=17&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's strong performance driven by robust housing demand, detailing significant year-over-year increases in net sales, gross profit, and net income, while also covering liquidity, capital resources, and strategic acquisitions [Overview and Outlook](index=17&type=section&id=Overview%20and%20Outlook) The company is experiencing robust demand for factory-built homes, leading to a **$1.5 billion** backlog, but faces challenges from rising material and labor costs, supply disruptions, and labor shortages - The company's order backlog surged to **$1.5 billion** as of January 1, 2022, a substantial increase from **$488.5 million** as of December 26, 2020, due to robust demand[74](index=74&type=chunk) - The company's U.S. wholesale market share of HUD code homes sold increased to **19.4%** for the eight months ended November 30, 2021, up from **16.2%** for the same period in 2020[75](index=75&type=chunk) - The company is expanding its manufacturing capacity through acquisitions and expansions, including new facilities in Texas and the acquisition of ScotBilt in Georgia[76](index=76&type=chunk)[77](index=77&type=chunk) [Results of Operations - Three Months Ended January 1, 2022](index=19&type=section&id=Results%20of%20Operations%20-%20Three%20Months%20Ended%20January%201%2C%202022) In Q3 FY2022, net sales increased **41.6%** to **$534.7 million**, driven by higher home sales and average selling prices, leading to a significant expansion in gross profit margin and a **233%** increase in operating income Q3 FY2022 vs Q3 FY2021 Performance (in thousands) | Metric | Q3 FY2022 | Q3 FY2021 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Net Sales | $534,690 | $377,581 | $157,109 | 41.6% | | Gross Profit | $157,239 | $71,784 | $85,455 | 119.0% | | Operating Income | $91,414 | $27,498 | $63,916 | 232.4% | | Net Income | $67,622 | $21,599 | $46,023 | 213.1% | | Adjusted EBITDA | $96,657 | $32,064 | $64,593 | 201.5% | - The increase in U.S. average home selling price (up **31.7%** YoY) was due to pricing actions in response to rising material, freight, and labor costs, as well as a shift in product mix[87](index=87&type=chunk) - Gross margin improvement to **29.4%** was driven by price increases, timing of raw material price adjustments, product simplification, and better leverage of fixed manufacturing costs[91](index=91&type=chunk) [Results of Operations - Nine Months Ended January 1, 2022](index=23&type=section&id=Results%20of%20Operations%20-%20Nine%20Months%20Ended%20January%201%2C%202022) For the first nine months of fiscal 2022, net sales grew **61.2%** to **$1.57 billion**, with gross profit margin improving to **25.4%**, and operating income increasing by **249%** to **$216.9 million** Nine Months FY2022 vs FY2021 Performance (in thousands) | Metric | Nine Months FY2022 | Nine Months FY2021 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Net Sales | $1,569,112 | $973,232 | $595,880 | 61.2% | | Gross Profit | $398,096 | $188,580 | $209,516 | 111.1% | | Operating Income | $216,908 | $62,114 | $154,794 | 249.2% | | Net Income | $161,246 | $51,013 | $110,233 | 216.1% | | Adjusted EBITDA | $232,477 | $83,541 | $148,936 | 178.3% | - Other income decreased by **$7.0 million** year-over-year, primarily because government-sponsored COVID-19 wage subsidies of **$7.0 million** recognized in fiscal 2021 did not recur[120](index=120&type=chunk) [Liquidity and Capital Resources](index=28&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity is strong, with **$382.1 million** in cash and **$169.6 million** available under its credit facility, supported by **$164.4 million** in operating cash flow for the nine-month period Summary Cash Flow Information (in thousands) | Activity | Nine months ended Jan 1, 2022 | Nine months ended Dec 26, 2020 | | :--- | :--- | :--- | | Net cash provided by operating activities | $164,406 | $103,816 | | Net cash used in investing activities | ($22,921) | ($1,213) | | Net cash used in financing activities | ($21,355) | ($47,938) | | Cash and cash equivalents at end of period | $382,133 | $267,060 | - The increase in cash used for investing activities was primarily due to higher capital expenditures, including the acquisition of two idle manufacturing facilities in Texas and other plant improvements[131](index=131&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=30&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company reports no significant changes in its exposure to interest rate and foreign exchange risks since its last annual report - There have been no significant changes in the Company's interest rate and foreign exchange risks since April 3, 2021[138](index=138&type=chunk) [Controls and Procedures](index=30&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of January 1, 2022, with no material changes to internal controls during the quarter - The CEO and CFO concluded that the Company's disclosure controls and procedures were effective as of January 1, 2022[140](index=140&type=chunk) - There were no changes in internal control over financial reporting during the fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Company's internal controls[141](index=141&type=chunk) PART II – OTHER INFORMATION [Legal Proceedings](index=31&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal proceedings in the ordinary course of business, but management believes these will not materially affect its financial condition, results of operations, or cash flows - The Company is subject to various legal proceedings and claims in the ordinary course of business but does not believe the ultimate liability will have a material adverse effect on its financial condition[69](index=69&type=chunk)[144](index=144&type=chunk) [Exhibits](index=32&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q report, including CEO and CFO certifications and Inline XBRL financial data files - The exhibits filed with this report include CEO and CFO certifications pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act of 2002, along with various Inline XBRL documents[145](index=145&type=chunk) [Signatures](index=33&type=section&id=SIGNATURES) The Form 10-Q report was officially signed and authorized on February 3, 2022, by Mark Yost, President and Chief Executive Officer, and Laurie Hough, Executive Vice President, Chief Financial Officer and Treasurer - The report was signed on February 3, 2022, by Mark Yost (President and CEO) and Laurie Hough (EVP, CFO and Treasurer)[148](index=148&type=chunk)

Skyline Champion Corporation (NYSE:SKY) Q3 2022 Earnings Conference Call February 3, 2022 9:00 AM ET Company Participants Mark Yost – President and Chief Executive Officer Laurie Hough – Executive Vice President and Chief Financial Officer Conference Call Participants Daniel Moore – CJS Securities Greg Palm – Craig-Hallum Matt Bouley – Barclays Mike Dahl – RBC Capital Markets Collin Verron – Jefferies Jay McCanless – Wedbush Operator Good morning and welcome to Skyline Champion Corporation's Third Quarte ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended October 2, 2021 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-04714 Skyline Champion Corporation such filing requirements for the past 90 days. Yes ☒ No ☐ Indicate by check mark whether th ...

Financial Data and Key Metrics Changes - Net sales increased by 63% to $524 million in Q2 2022 compared to the same quarter last year, driven by a $188 million increase in the U.S. factory-built housing segment and a $14 million increase in the Canadian segment [17][21] - Net income for Q2 was $51 million or $0.89 per diluted share, compared to $18 million or $0.31 per diluted share in the same period last year, reflecting higher revenue and improved profitability [23][24] - Adjusted EBITDA for the quarter was $73 million, an increase of 153% over the same period last year, with an adjusted EBITDA margin expanding by 490 basis points to 13.9% [25] Business Line Data and Key Metrics Changes - The U.S. factory-built housing segment saw a 26% increase in the number of homes sold, totaling 5,902 homes, while the average selling price per U.S. home increased by 32% to $79,900 [17][18] - Canadian revenue increased by 57% to $39 million, with the number of homes sold rising by 19% to 358 units and the average home selling price increasing by 32% to $107,500 [19][20] Market Data and Key Metrics Changes - The company reported a backlog growth of $169 million during Q2, reaching $1.4 billion, equating to an average of 40 weeks of production [6][7] - The market for affordable housing is experiencing rising demand due to favorable financing, low inventory levels, and a growing customer base seeking alternatives to site-built homes [5][11] Company Strategy and Development Direction - The company is focused on increasing output efficiently while managing supply chain challenges, with expectations for material availability to improve in subsequent quarters [13][14] - Investments in digital transformation are aimed at enhancing customer engagement and simplifying the buying experience, which is expected to lead to higher order rates and increased production levels [12][14] Management's Comments on Operating Environment and Future Outlook - Management noted that both internal and external factors are creating a long runway for growth, with demographic and economic trends driving the need for affordable starter homes [11] - The company anticipates that supply chain challenges will peak in Q3 and early Q4, followed by moderate improvements, while also investing in automation to increase production capacity [13][14] Other Important Information - The company had $310 million in cash and cash equivalents as of October 2, 2021, and generated $57 million in operating cash flows during the quarter [29][30] - A new $200 million revolving credit facility was established to enhance liquidity for strategic initiatives and acquisitions [29][30] Q&A Session Summary Question: Production ramp-up and supply chain challenges - Management expects a moderate ramp-up in production coming out of Q4 into next year, with backlogs building until the end of the calendar year [38][39] Question: Demand trends and consumer types - Orders accelerated post-Labor Day, with affordability being a key driver for increased market share in single-family completions [40][42] Question: Financing terms and their impact - Recent increases in financing terms for chattel and land home loans have made homeownership more accessible, potentially driving additional volume [47][48] Question: Order rates and backlog quality - The strength of backlogs is solid, with virtually no cancellations, and demand is strong across all channels [50][51] Question: Sustainability of gross and EBITDA margins - Gross margins are expected to remain sustainable, but EBITDA margins may see some deterioration due to reduced production levels and higher SG&A costs [54][86] Question: Impact of supply chain on gross margins - Supply chain challenges are still prevalent, and while there is potential for gross margin expansion, caution is advised [94]

Financial Data and Key Metrics Changes - Net sales increased by 87% to $510 million in Q1 FY2022 compared to the same quarter last year, driven by a $208 million increase in the U.S. factory-built housing segment and a $23 million increase in the Canadian segment [20][23] - Net income for Q1 was $42.9 million or $0.75 per diluted share, compared to $11.9 million or $0.21 per diluted share in the same period last year, reflecting higher revenue and gross profit [25] - Adjusted EBITDA for the quarter was $62.7 million, an increase of 178% over the same period a year ago, with an adjusted EBITDA margin expanding by 410 basis points to 12.3% [26] Business Line Data and Key Metrics Changes - U.S. factory-built revenue increased by 87% driven by a 58% increase in the number of homes sold, totaling 6,372 homes [20][21] - Canadian revenue increased by 149% to $38 million, driven by a 100% increase in the number of homes sold to 385 units [23] - Gross profit increased to $112 million, up 107% versus the prior-year quarter due to increased sales volume and higher pricing [23] Market Data and Key Metrics Changes - Backlogs grew by more than $341 million during Q1 to $1.2 billion, despite sequential unit production growth [6] - U.S. manufacturing facilities operated at capacity utilization levels near 80% for the quarter, improving about 2% from the prior quarter [6][11] Company Strategy and Development Direction - The company is focused on expanding capacity and investing in automation to enhance production processes, aiming to boost supply to channel partners and customers seeking affordable housing [13][14] - The strategic direction includes a move into digital and turnkey offerings to meet the growing demand for affordable housing solutions [15][16] - The company plans to continue investing in technology to enhance the customer buying experience and drive growth [15] Management's Comments on Operating Environment and Future Outlook - Management expects strong demand for affordable housing to continue through the second quarter, with challenges from raw material availability and supply chain issues expected to persist in the near term [12] - The company anticipates that supply chain challenges will cause sequential declines in production in the second and third quarters, but expects improvements by the fourth quarter [12] - Management remains confident in the long-term growth opportunities due to low entry-level housing supply and increasing millennial household formations [13] Other Important Information - The company had $288 million in cash and cash equivalents as of July 3, 2021, and entered into a $200 million revolving credit facility to enhance liquidity for strategic initiatives [29][30] - The company is focused on executing growth and operational initiatives, planning to reinvest cash into the business [30] Q&A Session Summary Question: What drove the sequential improvement in raw material availability? - Management indicated that the first quarter benefited from sourcing additional materials from the supply chain, allowing for an uptick in production [34] Question: Are there measures in place to restrict orders to align with production? - Management stated that backlogs are encouraging and reflect strong demand, with no controls being put in place as delivery times remain manageable [35] Question: Can you provide specific examples of automation efforts? - Management expressed excitement about automation initiatives and plans to test automation pilots over the next 12 to 24 months to address labor challenges [42][43] Question: What is the outlook on lumber prices and margin opportunities? - Management noted that while lumber prices have decreased, other material costs remain high, leading to margin compression during the quarter [45] Question: Why isn't the company acting more aggressively to bring on new capacity? - Management cited supply chain and labor challenges as limiting factors for increasing output, with expectations for improvement in the fall [52] Question: What insights can you provide on buyer qualifications? - Management indicated that appraisals are not keeping pace with price increases, affecting buyer qualifications, but buyers are still able to qualify for homes [56] Question: What are the key demand drivers for housing? - Management highlighted that many first-time home buyers are seeking attainable housing due to high prices of site-built homes and demographic shifts towards rural living [68]

PART I – FINANCIAL INFORMATION [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents Skyline Champion Corporation's unaudited condensed consolidated financial statements, reflecting significant revenue and net income growth for the period [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) | Metric | July 3, 2021 (unaudited, in thousands) | April 3, 2021 (in thousands) | | :--- | :--- | :--- | | **ASSETS** | | | | Cash and cash equivalents | $287,738 | $262,581 | | Inventories, net | $191,596 | $166,113 | | Total current assets | $562,374 | $499,767 | | Total assets | $986,397 | $917,902 | | **LIABILITIES** | | | | Total current liabilities | $288,443 | $263,642 | | Total long-term liabilities | $85,371 | $85,649 | | **STOCKHOLDERS' EQUITY** | | | | Retained earnings | $124,467 | $82,898 | | Total stockholders' equity | $612,583 | $568,611 | [Condensed Consolidated Income Statements](index=4&type=section&id=Condensed%20Consolidated%20Income%20Statements) | Metric | Three months ended July 3, 2021 (in thousands) | Three months ended June 27, 2020 (in thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Net sales | $510,197 | $273,285 | 86.7% | | Cost of sales | $398,667 | $219,282 | 81.8% | | Gross profit | $111,530 | $54,003 | 106.5% | | Selling, general, and administrative expenses | $54,023 | $40,807 | 32.4% | | Operating income | $57,507 | $13,196 | 335.8% | | Income before income taxes | $56,912 | $16,468 | 245.6% | | Income tax expense | $14,011 | $4,565 | 206.9% | | Net income | $42,901 | $11,903 | 260.4% | | Basic Net income per share | $0.76 | $0.21 | 261.9% | | Diluted Net income per share | $0.75 | $0.21 | 257.1% | [Condensed Consolidated Statements of Comprehensive Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) | Metric | Three months ended July 3, 2021 (in thousands) | Three months ended June 27, 2020 (in thousands) | | :--- | :--- | :--- | | Net income | $42,901 | $11,903 | | Foreign currency translation adjustments | $878 | $1,095 | | Total comprehensive income | $43,779 | $12,998 | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) | Metric | Three months ended July 3, 2021 (in thousands) | Three months ended June 27, 2020 (in thousands) | | :--- | :--- | :--- | | Net cash provided by operating activities | $31,905 | $32,205 | | Net cash used in investing activities | $(9,219) | $(1,299) | | Net cash provided by (used in) financing activities | $1,798 | $(4,524) | | Net increase in cash and cash equivalents | $25,157 | $27,052 | | Cash and cash equivalents at end of period | $287,738 | $236,507 | - Cash provided by operating activities decreased slightly due to increased inventory from higher material costs and stocking levels, and an increase in prepaid and other assets from capitalized cloud computing costs, partially offset by higher net income[119](index=119&type=chunk) - Cash used in investing activities increased primarily due to higher capital expenditures, including the acquisition of an idle manufacturing facility in Texas[120](index=120&type=chunk) [Condensed Consolidated Statements of Stockholders' Equity](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders%27%20Equity) | Metric | Balance at July 3, 2021 (in thousands) | Balance at April 3, 2021 (in thousands) | | :--- | :--- | :--- | | Total stockholders' equity | $612,583 | $568,611 | | Net income | $42,901 | N/A (period activity) | | Equity-based compensation | $1,441 | N/A (period activity) | | Foreign currency translation adjustments | $878 | N/A (period activity) | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) [Note 1. Basis of Presentation and Business](index=8&type=section&id=Note%201.%20Basis%20of%20Presentation%20and%20Business) - Skyline Champion Corporation is a leading producer of factory-built housing in the U.S. and Canada, operating 35 U.S. and 5 Canadian manufacturing facilities, 18 retail sales centers, and transportation operations[19](index=19&type=chunk) COVID-19 Financial Assistance | COVID-19 Financial Assistance | Amount (in millions) | | :--- | :--- | | CEWS payroll subsidies (Q1 FY2021) | $3.6 | | CARES Act & state wage subsidies (Q1 FY2021) | $0.6 | | Deferred payroll taxes (through July 3, 2021) | $11.8 | [Note 2. Business Acquisition](index=8&type=section&id=Note%202.%20Business%20Acquisition) - Acquired 100% of ScotBilt Homes, LLC on February 28, 2021, for **$54.5 million** total purchase consideration[29](index=29&type=chunk) Preliminary Purchase Price Allocation | Preliminary Purchase Price Allocation (in thousands) | | :--- | | Cash | $1,521 | | Trade accounts receivable | $2,256 | | Inventory | $6,752 | | Property, plant, and equipment | $10,466 | | Other assets | $1,164 | | Accounts payable and accrued liabilities | $(7,432) | | Intangibles | $21,100 | | Goodwill | $18,449 | | Total purchase price allocation | $54,276 | - Goodwill is primarily attributable to expected synergies from procurement activities and operational improvements through sharing of best practices[30](index=30&type=chunk) [Note 3. Inventories, net](index=10&type=section&id=Note%203.%20Inventories%2C%20net) | Inventory Component (in thousands) | July 3, 2021 | April 3, 2021 | | :--- | :--- | :--- | | Raw materials | $109,950 | $91,916 | | Work in process | $23,090 | $21,642 | | Finished goods and other | $58,556 | $52,555 | | Total inventories, net | $191,596 | $166,113 | | Reserves for obsolete inventory | $4,600 | $4,600 | [Note 4. Property, Plant, and Equipment](index=11&type=section&id=Note%204.%20Property%2C%20Plant%2C%20and%20Equipment) | PPE Component (in thousands) | July 3, 2021 | April 3, 2021 | | :--- | :--- | :--- | | Land and improvements | $38,455 | $36,470 | | Buildings and improvements | $95,789 | $97,005 | | Machinery and equipment | $59,052 | $57,790 | | Construction in progress | $9,393 | $1,889 | | Property, plant, and equipment, net | $121,313 | $115,140 | - Depreciation expense for the three months ended July 3, 2021, was **$3.3 million**, compared to **$2.9 million** for the three months ended June 27, 2020[35](index=35&type=chunk) [Note 5. Goodwill, Intangible Assets, and Cloud Computing Arrangements](index=11&type=section&id=Note%205.%20Goodwill%2C%20Intangible%20Assets%2C%20and%20Cloud%20Computing%20Arrangements) | Metric (in thousands) | July 3, 2021 | April 3, 2021 | | :--- | :--- | :--- | | Goodwill | $191,970 | $191,803 | | Amortizable intangibles, net | $56,947 | $58,835 | | Capitalized cloud computing costs | $5,400 | $300 | - Amortization of intangible assets was **$1.9 million** for the three months ended July 3, 2021, compared to **$1.4 million** for the three months ended June 27, 2020[38](index=38&type=chunk) [Note 6. Other Current Liabilities](index=12&type=section&id=Note%206.%20Other%20Current%20Liabilities) | Liability Component (in thousands) | July 3, 2021 | April 3, 2021 | | :--- | :--- | :--- | | Customer deposits | $64,551 | $58,888 | | Accrued volume rebates | $19,834 | $18,207 | | Accrued warranty obligations | $24,643 | $24,033 | | Accrued compensation and payroll taxes | $38,663 | $42,560 | | Accrued insurance | $13,762 | $12,421 | | Other | $32,133 | $24,586 | | Total other current liabilities | $193,586 | $180,695 | [Note 7. Accrued Warranty Obligations](index=12&type=section&id=Note%207.%20Accrued%20Warranty%20Obligations) | Metric (in thousands) | Three months ended July 3, 2021 | Three months ended June 27, 2020 | | :--- | :--- | :--- | | Balance at beginning of period | $30,469 | $24,969 | | Warranty expense | $10,304 | $6,359 | | Cash warranty payments | $(9,694) | $(6,633) | | Balance at end of period | $31,079 | $24,695 | | Total current portion | $24,643 | $18,905 | [Note 8. Debt and Floor Plan Payable](index=12&type=section&id=Note%208.%20Debt%20and%20Floor%20Plan%20Payable) | Debt Component (in thousands) | July 3, 2021 | April 3, 2021 | | :--- | :--- | :--- | | Revolving credit facility | $26,900 | $26,900 | | Industrial revenue bonds | $12,430 | $12,430 | | Total long-term debt | $39,330 | $39,330 | | Floor plan payable | $28,778 | $25,733 | | Total credit line capacity (floor plan) | $57,000 | N/A | - The revolving credit facility has a capacity of up to **$100.0 million**, with **$30.4 million** in letters of credit issued and **$42.7 million** available borrowings as of July 3, 2021[44](index=44&type=chunk) - The company was in compliance with all covenants of the Credit Agreement as of July 3, 2021[48](index=48&type=chunk) [Note 9. Revenue Recognition](index=14&type=section&id=Note%209.%20Revenue%20Recognition) | Sales Category (in thousands) | Three months ended July 3, 2021 | Three months ended June 27, 2020 | | :--- | :--- | :--- | | U.S. Factory-Built Housing | $457,320 | $248,859 | | Canadian Factory-Built Housing | $37,831 | $15,195 | | Corporate/Other (Transportation) | $15,046 | $9,231 | | Total Net Sales | $510,197 | $273,285 | [Note 10. Income Taxes](index=14&type=section&id=Note%2010.%20Income%20Taxes) | Metric | Three months ended July 3, 2021 (in thousands) | Three months ended June 27, 2020 (in thousands) | | :--- | :--- | :--- | | Income tax expense | $14,011 | $4,565 | | Effective tax rate | 24.6% | 27.7% | - The effective tax rate for Q1 FY2022 differs from the federal statutory rate of **21.0%** due to state and local income taxes, non-deductible expenses, tax credits, foreign jurisdiction results, and tax benefits from vested equity compensation[52](index=52&type=chunk) [Note 11. Earnings Per Share](index=14&type=section&id=Note%2011.%20Earnings%20Per%20Share) | Metric (in thousands, except per share) | Three months ended July 3, 2021 | Three months ended June 27, 2020 | | :--- | :--- | :--- | | Net income attributable to common shareholders | $42,901 | $11,873 | | Basic weighted-average shares outstanding | 56,706 | 56,532 | | Diluted weighted-average shares outstanding | 57,203 | 56,761 | | Basic net income per share | $0.76 | $0.21 | | Diluted net income per share | $0.75 | $0.21 | [Note 12. Segment Information](index=16&type=section&id=Note%2012.%20Segment%20Information) - The company operates in two reportable segments: U.S. Factory-built Housing (manufacturing and retail) and Canadian Factory-built Housing, with Corporate/Other including transportation operations, corporate costs, and intersegment eliminations[60](index=60&type=chunk) Segment Financials | Segment Financials (in thousands) | Three months ended July 3, 2021 | Three months ended June 27, 2020 | | :--- | :--- | :--- | | **Net sales:** | | | | U.S. Factory-built Housing | $457,320 | $248,859 | | Canadian Factory-built Housing | $37,831 | $15,195 | | Corporate/Other | $15,046 | $9,231 | | **EBITDA:** | | | | U.S. Factory-built Housing EBITDA | $63,017 | $23,793 | | Canadian Factory-built Housing EBITDA | $5,666 | $1,292 | | Corporate/Other EBITDA | $(5,977) | $(7,607) | | **Capital expenditures:** | | | | U.S. Factory-built Housing | $7,258 | $885 | | Canadian Factory-built Housing | $105 | $157 | | Corporate/Other | $1,858 | $269 | | **Total Assets (July 3, 2021 / April 3, 2021):** | | | | U.S. Factory-built Housing | $602,941 | $578,897 | | Canadian Factory-built Housing | $91,561 | $87,224 | | Corporate/Other | $291,895 | $251,781 | [Note 13. Commitments, Contingencies and Legal Proceedings](index=17&type=section&id=Note%2013.%20Commitments%2C%20Contingencies%20and%20Legal%20Proceedings) - Contingent repurchase obligation for retailer floor plan financing was estimated at **$231.0 million** as of July 3, 2021, with a loss reserve of **$1.5 million**[63](index=63&type=chunk)[64](index=64&type=chunk)[66](index=66&type=chunk) - The company is contingently obligated for **$30.4 million** under letters of credit and **$35.0 million** under surety bonds[67](index=67&type=chunk) - The company believes that the ultimate liability from various legal proceedings and claims will not have a material adverse effect on its financial condition, results of operations, or cash flows[69](index=69&type=chunk) [Note 14. Subsequent Event](index=20&type=section&id=Note%2014.%20Subsequent%20Event) - On July 7, 2021, the company amended and restated its credit agreement, increasing the revolving credit facility from **$100.0 million** to **$200.0 million**[71](index=71&type=chunk) - The new Revolving Credit Facility matures on July 7, 2026, and outstanding borrowings of **$26.9 million** on the previous facility were repaid at closing[71](index=71&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=21&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management's discussion and analysis highlights strong Q1 FY2022 performance, driven by robust demand, acquisitions, and efficiencies [Overview](index=21&type=section&id=Overview) - Skyline Champion Corporation is the largest independent publicly traded factory-built solutions provider in North America based on revenue[74](index=74&type=chunk) - The company operates 35 manufacturing facilities in the U.S. and 5 in western Canada, 18 retail sales centers, and a transportation business[74](index=74&type=chunk) [Industry and Company Outlook](index=21&type=section&id=Industry%20and%20Company%20Outlook) - Robust demand in U.S. and Canadian housing markets is driven by limited existing homes, the need for affordable single-family housing, and demographic trends[75](index=75&type=chunk) Backlog | Metric | July 3, 2021 | June 27, 2020 | | :--- | :--- | :--- | | Backlog | $1,200 million | $192.1 million | - U.S. wholesale market share of HUD code homes sold was **20.8%** for the three months ended May 31, 2021, up from **13.8%** in the prior year[77](index=77&type=chunk) [Acquisitions and Expansions](index=21&type=section&id=Acquisitions%20and%20Expansions) - Acquired ScotBilt Homes on February 28, 2021, which shipped over 1,600 homes in calendar 2020, strengthening presence in the Mid-South region[80](index=80&type=chunk) - Acquired two idle facilities in Navasota, Texas on June 21, 2021, with production intended to start by end of fiscal 2022[80](index=80&type=chunk) - Acquired two idled facilities in Pembroke, North Carolina on January 14, 2021, to expand manufacturing footprint in the South and Southeast markets[82](index=82&type=chunk) [COVID-19 Pandemic](index=23&type=section&id=COVID-19%20Pandemic) - Increased daily production rates in the second half of fiscal 2021 due to improved direct labor staffing and production efficiencies, despite intermittent closures and higher absenteeism in fiscal 2021[85](index=85&type=chunk) - Availability of labor and certain materials remains subject to disruption and uncertainty, with increased volatility and higher manufacturing costs for key raw materials[85](index=85&type=chunk) COVID-19 Financial Assistance (Q1 FY2021) | COVID-19 Financial Assistance (Q1 FY2021) | Amount (in millions) | | :--- | :--- | | CEWS payroll subsidies | $3.6 | | CARES Act & state wage subsidies | $0.6 | | Deferred payroll taxes (through July 3, 2021) | $11.8 | [Unaudited Income Statements Summary](index=23&type=section&id=UNAUDITED%20INCOME%20STATEMENTS%20FOR%20THE%20FIRST%20QUARTER%20OF%20FISCAL%202022%20VS.%202021) | Metric | Three months ended July 3, 2021 (in thousands) | Three months ended June 27, 2020 (in thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Net sales | $510,197 | $273,285 | 86.7% | | Gross profit | $111,530 | $54,003 | 106.5% | | Gross profit as a percent of net sales | 21.9% | 19.8% | +2.1 pp | | Operating income | $57,507 | $13,196 | 335.8% | | Net income | $42,901 | $11,903 | 260.4% | | Adjusted EBITDA | $62,706 | $22,540 | 178.2% | | Adjusted EBITDA as a percent of net sales | 12.3% | 8.2% | +4.1 pp | [Net Sales Analysis](index=24&type=section&id=NET%20SALES) | Segment Net Sales (in thousands) | July 3, 2021 | June 27, 2020 | $ Change (in thousands) | % Change | | :--- | :--- | :--- | :--- | :--- | | Total Net sales | $510,197 | $273,285 | $236,912 | 86.7% | | U.S. manufacturing and retail net sales | $457,320 | $248,859 | $208,461 | 83.8% | | U.S. homes sold | 6,372 | 4,028 | 2,344 | 58.2% | | U.S. manufacturing and retail average home selling price | $71.8 | $61.8 | $10.0 | 16.2% | | Canadian manufacturing net sales | $37,831 | $15,195 | $22,636 | 149.0% | | Canadian homes sold | 385 | 192 | 193 | 100.5% | | Canadian manufacturing average home selling price | $98.3 | $79.1 | $19.2 | 24.3% | | Corporate/Other net sales | $15,046 | $9,231 | $5,815 | 63.0% | - U.S. sales increase driven by strong demand, increased production, higher average selling prices due to rising material costs, and the impact of ScotBilt acquisition[91](index=91&type=chunk)[92](index=92&type=chunk) - Canadian sales increase due to higher demand, increased production rates, and higher average selling prices in response to rising material costs, with favorable currency translation contributing **$4.5 million**[93](index=93&type=chunk) [Gross Profit Analysis](index=26&type=section&id=GROSS%20PROFIT) | Segment Gross Profit (in thousands) | July 3, 2021 | June 27, 2020 | $ Change (in thousands) | % Change | | :--- | :--- | :--- | :--- | :--- | | Total gross profit | $111,530 | $54,003 | $57,527 | 106.5% | | Gross profit as a percent of net sales | 21.9% | 19.8% | N/A | +2.1 pp | | U.S. Factory-built Housing gross profit | $99,211 | $48,410 | $50,801 | 104.9% | | U.S. Factory-built Housing gross profit as % of net sales | 21.7% | 19.5% | N/A | +2.2 pp | | Canadian Factory-built Housing gross profit | $8,325 | $2,782 | $5,543 | 199.2% | | Canadian Factory-built Housing gross profit as % of net sales | 22.0% | 18.3% | N/A | +3.7 pp | | Corporate/Other gross profit | $3,994 | $2,811 | $1,183 | 42.1% | | Corporate/Other gross profit as % of net sales | 26.5% | 30.5% | N/A | -4.0 pp | - U.S. gross profit increase due to operational efficiencies, increased leverage of fixed costs from higher production, and reduction of COVID-19 related sick-pay and health benefits, partially offset by higher material and labor costs[96](index=96&type=chunk) - Canadian gross profit increase due to direct labor and manufacturing efficiencies from higher sales volumes, partially offset by higher material and labor costs[97](index=97&type=chunk) [Selling, General, and Administrative Expenses Analysis](index=28&type=section&id=SELLING%2C%20GENERAL%2C%20AND%20ADMINISTRATIVE%20EXPENSES) | Segment SG&A (in thousands) | July 3, 2021 | June 27, 2020 | $ Change (in thousands) | % Change | | :--- | :--- | :--- | :--- | :--- | | Total SG&A expenses | $54,023 | $40,807 | $13,216 | 32.4% | | SG&A as a percent of net sales | 10.6% | 14.9% | N/A | -4.3 pp | | U.S. Factory-built Housing SG&A | $40,755 | $28,376 | $12,379 | 43.6% | | U.S. Factory-built Housing SG&A as % of net sales | 8.9% | 11.4% | N/A | -2.5 pp | | Canadian Factory-built Housing SG&A | $2,945 | $1,606 | $1,339 | 83.4% | | Canadian Factory-built Housing SG&A as % of net sales | 7.8% | 10.6% | N/A | -2.8 pp | | Corporate/Other SG&A | $10,323 | $10,825 | $(502) | (4.6%) | - Increase in U.S. SG&A due to higher sales commissions, incentive compensation, wage expense from headcount increases, increased travel expenses, and the impact of ScotBilt[102](index=102&type=chunk) - Corporate/Other SG&A decreased due to a reduction in equity compensation costs[104](index=104&type=chunk) [Interest Expense, Net Analysis](index=29&type=section&id=INTEREST%20EXPENSE%2C%20NET) | Metric (in thousands) | July 3, 2021 | June 27, 2020 | $ Change (in thousands) | % Change | | :--- | :--- | :--- | :--- | :--- | | Interest expense, net | $649 | $942 | $(293) | (31.1%) | | Average outstanding floor plan payable | $28,592 | $31,067 | N/A | N/A | | Average outstanding long-term debt | $39,330 | $77,330 | N/A | N/A | - The decrease in net interest expense was primarily due to a lower average outstanding balance on the company's revolving credit facility[105](index=105&type=chunk) [Other Income Analysis](index=29&type=section&id=OTHER%20INCOME) | Metric (in thousands) | July 3, 2021 | June 27, 2020 | $ Change (in thousands) | % Change | | :--- | :--- | :--- | :--- | :--- | | Other income | $(54) | $(4,214) | $4,160 | (98.7%) | - The decrease in other income is due to a reduction in wage subsidies from government financial assistance programs (CEWS and CARES Act) enacted in response to the COVID-19 pandemic[106](index=106&type=chunk) [Income Tax Expense Analysis](index=29&type=section&id=INCOME%20TAX%20EXPENSE) | Metric (in thousands) | July 3, 2021 | June 27, 2020 | $ Change (in thousands) | % Change | | :--- | :--- | :--- | :--- | :--- | | Income tax expense | $14,011 | $4,565 | $9,446 | 206.9% | | Effective tax rate | 24.6% | 27.7% | N/A | -3.1 pp | - The effective tax rate for Q1 FY2022 differs from the federal statutory rate of **21.0%** due to state and local income taxes, non-deductible expenses, tax credits, foreign jurisdiction results, and tax benefits from vested equity compensation[108](index=108&type=chunk) [Adjusted EBITDA Reconciliation and Analysis](index=30&type=section&id=ADJUSTED%20EBITDA) | Metric (in thousands) | July 3, 2021 | June 27, 2020 | $ Change (in thousands) | % Change | | :--- | :--- | :--- | :--- | :--- | | Net income | $42,901 | $11,903 | $30,998 | * | | Income tax expense | $14,011 | $4,565 | $9,446 | * | | Interest expense, net | $649 | $942 | $(293) | (31.1%) | | Depreciation and amortization | $5,145 | $4,282 | $863 | 20.2% | | Equity-based compensation (pre-Dec 2018 awards) | — | $970 | $(970) | * | | Other | — | $(122) | $122 | * | | Adjusted EBITDA | $62,706 | $22,540 | $40,166 | * | - The increase in Adjusted EBITDA is primarily a result of higher operating income, driven by increases in sales volume and gross margin, partially offset by higher SG&A expenses[109](index=109&type=chunk) [Backlog](index=30&type=section&id=BACKLOG) | Metric | July 3, 2021 | June 27, 2020 | | :--- | :--- | :--- | | Unfilled U.S. and Canadian manufacturing orders (Backlog) | $1,200 million | $192.1 million | - The increase in backlog was driven by increased demand for single-family homes, with order levels significantly outpacing production in both the U.S. and Canada[114](index=114&type=chunk) - Increasing production rates is limited by individual plant capacity, time to train new employees, employee attendance, and availability of materials[117](index=117&type=chunk) [Liquidity and Capital Resources](index=32&type=section&id=Liquidity%20and%20Capital%20Resources) - Primary sources of liquidity are cash flows from operations and existing cash balances, expected to be adequate for working capital, capital expenditures, and debt payments for the next year[118](index=118&type=chunk) Cash Flow Summary | Cash Flow Summary (in thousands) | Three months ended July 3, 2021 | Three months ended June 27, 2020 | | :--- | :--- | :--- | | Net cash provided by operating activities | $31,905 | $32,205 | | Net cash used in investing activities | $(9,219) | $(1,299) | | Net cash provided by (used in) financing activities | $1,798 | $(4,524) | | Cash and cash equivalents at end of period | $287,738 | $236,507 | - The company entered into an Amended and Restated Credit Agreement on July 7, 2021, increasing its revolving credit facility to **$200.0 million**[122](index=122&type=chunk) [Critical Accounting Policies](index=32&type=section&id=Critical%20Accounting%20Policies) - No significant changes in critical accounting policies or estimates since the Fiscal 2021 Annual Report[123](index=123&type=chunk) [Recently Issued Accounting Pronouncements](index=34&type=section&id=Recently%20Issued%20Accounting%20Pronouncements) - No recently issued accounting standards are expected to have a material impact on the company's financial position or results of operations[26](index=26&type=chunk)[124](index=124&type=chunk) [Forward-Looking Statements](index=34&type=section&id=Forward-Looking%20Statements) - Forward-looking statements are subject to risks and uncertainties, including economic, financial, public health, and labor conditions, supply/labor issues, housing industry cyclicality, competition, and regulatory changes[125](index=125&type=chunk)[126](index=126&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=35&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No significant changes in interest rate and foreign exchange risks since April 3, 2021, as discussed in the Fiscal 2021 Annual Report - No significant changes in interest rate and foreign exchange risks since April 3, 2021[127](index=127&type=chunk) [Item 4. Controls and Procedures](index=35&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls and procedures were effective as of July 3, 2021, with no material changes in internal control over financial reporting - Disclosure controls and procedures were effective as of July 3, 2021[129](index=129&type=chunk) - No material changes in internal control over financial reporting during the fiscal quarter[130](index=130&type=chunk) PART II – OTHER INFORMATION [Item 1. Legal Proceedings](index=36&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal proceedings, but management anticipates no material adverse effect on financial condition or results - The company is involved in various legal proceedings and claims, but management believes the ultimate liability will not have a material adverse effect[132](index=132&type=chunk) [Item 6. Exhibits](index=37&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including CEO/CFO certifications and Inline XBRL documents - Exhibits include certifications from the Chief Executive Officer and Chief Financial Officer, and Inline XBRL documents[134](index=134&type=chunk) SIGNATURES [Signatures](index=38&type=section&id=SIGNATURES) The report was signed by Mark Yost (CEO) and Laurie Hough (CFO) on August 4, 2021, on behalf of Skyline Champion Corporation - The report was signed by Mark Yost, President and Chief Executive Officer, and Laurie Hough, Executive Vice President, Chief Financial Officer and Treasurer, on August 4, 2021[137](index=137&type=chunk)