Skyline Champion(US:SKY)2025-02-05 21:15Financial Performance - Net sales for the three months ended December 28, 2024, increased to $644,925, a 15.3% rise from $559,455 in the same period last year[12] - Gross profit for the nine months ended December 28, 2024, was $511,570, up 32.0% from $387,434 in the prior year[12] - Net income attributable to Champion Homes, Inc. for the three months ended December 28, 2024, was $61,537, representing a 31.0% increase compared to $46,970 in the same period last year[12] - For the three months ended December 28, 2024, net income was $62.8 million, compared to $46.97 million for the same period in the previous year, representing a year-over-year increase of 33.8%[20] - Consolidated net sales for the three months ended December 28, 2024, were $644.9 million, an increase of 15.3% compared to $559.5 million for the same period in 2023[76] - Net income attributable to Champion Homes, Inc. for the three months ended December 28, 2024, was $61.5 million, up 31% from $47.0 million in the same period last year[72] - Adjusted EBITDA for the three months ended December 28, 2024, was $83.3 million, representing 12.9% of net sales, compared to 11.8% in the prior year[1] - Net sales for the nine months ended December 28, 2024, were $1.89 billion, an increase of $401.1 million, or 26.9%, compared to the same period in 2023[123] Assets and Liabilities - Total assets as of December 28, 2024, reached $2,037,469, an increase of 5.9% from $1,923,341 as of March 30, 2024[9] - Cash and cash equivalents at the end of the period were $581,753, reflecting an increase of 17.4% from $495,063 at the beginning of the period[17] - Total stockholders' equity increased to $1,528,299 as of December 28, 2024, up from $1,422,370 as of March 30, 2024[9] - Other current liabilities increased to $261.3 million as of December 28, 2024, from $247.5 million as of March 30, 2024[55] - The total long-term debt as of December 28, 2024, was $24.7 million, slightly up from $24.7 million on March 30, 2024[57] Expenses - Selling, general, and administrative expenses for the three months ended December 28, 2024, were $108,214, up 27.2% from $85,091 in the same period last year[12] - Total selling, general, and administrative expenses increased by $96.7 million or 44.0% to $316.7 million for the nine months ended December 28, 2024[132] - Selling, general, and administrative expenses for the U.S. Factory-built Housing segment increased by $79.0 million or 48.4% during the nine months ended December 28, 2024[133] Cash Flow - The company reported a net cash provided by operating activities of $194,852 for the nine months ended December 28, 2024, compared to $218,617 in the prior year[17] - Cash provided by operating activities was $194.9 million for the nine months ended December 28, 2024, a decrease from $218.6 million for the same period in 2023, primarily due to less favorable changes in working capital[151] - Cash used in investing activities significantly decreased to $35.0 million for the nine months ended December 28, 2024, compared to $474.4 million in the prior year, reflecting the absence of major acquisitions[152] - Cash used in financing activities increased to $65.9 million for the nine months ended December 28, 2024, compared to $3.9 million in the same period of 2023, largely due to $60.0 million in common stock repurchases[153] 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 $27.9 million in common stock[37] - The company made an equity investment in ECN to create a captive finance company, Champion Financing, aimed at providing financing solutions to homebuyers[89] - The investment in ECN Capital Corporation totaled $137.8 million, representing approximately 12% of ECN's total outstanding common shares[50] Market Performance - U.S. Factory-built Housing net sales reached $610.8 million for the three months ended December 28, 2024, up 17.1% from $521.1 million in the prior year[76] - The company's manufacturing backlog increased to $312.6 million as of December 28, 2024, compared to $290.4 million as of December 30, 2023, reflecting a growing demand for affordable housing[92] - The U.S. wholesale market share of HUD code homes sold increased to 22.2% for the eight months ended November 30, 2024, compared to 18.9% for the same period in 2023[95] - U.S. manufacturing and retail net sales increased by $89.6 million, or 17.2%, driven by a 14.1% increase in homes sold and a 2.8% increase in average selling price[98] Taxation - The effective tax rate for the three months ended December 28, 2024, was 21.1%, slightly lower than 21.4% for the same period in 2023[67] - The Company recorded $45.8 million in income tax expense for the nine months ended December 28, 2024, compared to $44.8 million for the same period in 2023[67] - Income tax expense for the three months ended December 28, 2024, was $16.7 million, representing an effective tax rate of 21.1%, compared to $12.8 million and 21.4% in the prior year[115] Risks and Compliance - The company is subject to various risks, including supply-related issues, labor-related issues, and inflationary pressures, which could impact future performance[157] - The company maintains effective disclosure controls and procedures as evaluated by the CEO and CFO as of December 28, 2024[161]