Skyline Champion(US:SKY)2024-10-29 20:15Financial 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].