Financial Data and Key Metrics Changes - Net sales increased by 2% year-over-year to $657 million, while net income attributable to Champion Homes decreased by 12% year-over-year to $54 million, or earnings of $0.97 per diluted share [18][21] - The average selling price (ASP) per U.S. home sold increased by 5% to $99,300, driven by changes in product mix and increased prices on new homes sold through company-owned retail sales centers [19][21] - Consolidated gross profit decreased by 5% to $172 million, with a gross margin of 26.2%, down 190 basis points compared to the prior year [20][21] Business Line Data and Key Metrics Changes - Sales to the independent retail channel decreased year-over-year, while captive retail sales increased year-over-year, representing 38% of consolidated sales in Q3 versus 35% last year [12][21] - Community channel sales were down year-over-year, but positive feedback was received regarding new products showcased at the Louisville Home Show [13][19] - Sales through the builder developer channel grew in the third quarter compared to the same period last year [14] Market Data and Key Metrics Changes - Manufacturing backlogs decreased sequentially by 15% to $266 million, with average backlog lead time ending the quarter at 7 weeks [10][11] - Canadian revenue during the quarter was $26 million, representing a 3% increase in the number of homes sold versus the prior year, while the average home selling price in Canada decreased by 2% to $120,000 [19][20] Company Strategy and Development Direction - The company aims to increase awareness and demand for its products, with a focus on building trust with consumers and product innovation [6][7] - Legislative efforts are being monitored closely, with a strong bipartisan focus on solving the housing crisis, which is seen as a foundation for future growth [8][9] - The company is committed to expanding its product offerings to attract a broader segment of new buyers and address affordability issues in the housing market [7][9] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for the fourth quarter, expecting revenue to be up low single digits versus the prior year, with gross margin anticipated to be in the 25%-26% range [24][25] - The company is focused on executing its strategic initiatives while managing SG&A prudently, despite challenges in the macroeconomic environment [24][25] - Management highlighted the importance of engaging with consumers and adapting to market conditions as part of their strategy moving forward [40][84] Other Important Information - The company announced a $50 million share repurchase during the quarter and refreshed its $150 million share repurchase authority, reflecting confidence in its cash generation capabilities [22][23] - The sale of Triad's parent company, ECN Capital, is progressing well, with expected proceeds of approximately CAD 189 million to Champion [16] Q&A Session Summary Question: Can you provide more color on the geographic environment and weather-related impacts? - Management noted that there were no unusual geographic trends and that weather-related delays impacted production days, but they are working to make up for lost time [28][29] Question: Was the increase in ASPs at captive retail due to mix or pricing? - Management confirmed that both pricing and mix contributed to the higher ASPs year-over-year [30][31] Question: What is the outlook for the community channel? - Management indicated that they are working closely with community channel partners and are optimistic about new product feedback as they approach the spring selling season [41][43] Question: Can you elaborate on the margin expectations for the next quarter? - Management highlighted that gross margin variability is expected, with a focus on product mix and channel dynamics impacting margins [46][48] Question: What are the expectations for backlog and revenue guidance? - Management expects a continuation of the order flow seen in Q3, with a positive outlook for backlog and revenue in Q4 [67][68]