Skyline Champion(SKY)2021-05-26 17:28Financial Data and Key Metrics Changes - Adjusted EBITDA grew by 18% to 448 million in Q4 compared to the same quarter last year [17] - Net income for Q4 was 0.59 per diluted share, compared to 0.11 per diluted share during the same period last year [21] - Adjusted EBITDA for the quarter was 120.6 million, driven by a 29% increase in homes sold [18] - Canadian factory-built housing segment revenue increased by 212% to 99.1 million, up 65% versus the prior year quarter due to increased sales volume and higher pricing [20] Market Data and Key Metrics Changes - Backlogs grew by 859 million, driven by strong demand for new housing [5] - Production increased, allowing delivery times to moderate to 28 weeks at the end of March, compared to 18 weeks at the end of Q3 [6] - U.S. manufacturing facilities capacity utilization improved to 77%, an increase of 7 percentage points from Q3 [6] Company Strategy and Development Direction - The company aims to capitalize on the growing demand for affordable housing and is focused on expanding capacity and investing in automation [10] - Digital and turnkey offerings are being prioritized to enhance customer experience and streamline the buying process [11][12] - The company is committed to ESG initiatives, including a reforestation program to plant one tree for every tree used in home construction [13] Management's Comments on Operating Environment and Future Outlook - Management expects strong demand for attainable housing to continue in the first half of fiscal '22, with potential moderation in the second half due to supply chain and labor challenges [9] - The company is confident in its ability to manage through short-term supply challenges while focusing on long-term growth strategies [10] - Management noted that the transition from site-built homes to manufactured housing is expected to accelerate due to inflationary pressures [52] Other Important Information - The company acquired ScotBilt Homes, enhancing its manufacturing and distribution presence in the mid-south region [8] - Cash and cash equivalents stood at 39 million [24] Q&A Session Summary Question: Can you provide details on the customer buying experience and digital initiatives? - The company is simplifying the buying process by driving leads to retail partners and enhancing online home design and configuration tools [32] Question: What are the biggest pain points regarding raw material availability? - The raw material supply chain is a significant short-term driver, with supply partners facing production challenges and implementing allocations [35] Question: How sustainable is the recent production and shipment growth? - The company has seen productivity gains and believes the digital solutions are helping to gain market share, especially in states where overall volume has declined [45] Question: How does the company plan to manage pricing in light of inflation? - The company is taking price increases to offset inflation but is monitoring the impact on customer affordability [50][68] Question: What is the status of the Genesis rollout and demand trends by channel? - There is strong interest in the Genesis product, but supply issues are the primary focus, not demand [62]