Skyline Champion Announces Third Quarter Fiscal 2024 Results
Third Quarter Fiscal 2024 Financial Highlights (compared to Third Quarter Fiscal 2023 unless otherwise noted)
-
Net sales decreased 3.9% to
$559.5 million -
U.S. homes sold decreased 1.8% to 5,643 -
Total backlog increased 12.6% to
$290.4 million compared to the sequential second quarter -
Average selling price (“ASP”) per
U.S. home sold decreased 2.0% to$92,300 - Gross profit margin contracted by 460 basis points to 25.3%
-
Net income decreased by 43.3% to
$47.0 million -
Earnings per share (“EPS”) decreased 43.8% to
$0.81 -
Adjusted EBITDA decreased 39.2% to
$66.3 million - Adjusted EBITDA margin contracted by 690 basis points to 11.8%
-
Net cash generated by operating activities increased 4.7% to
$89.5 million
Third Quarter Fiscal 2024 Operational Highlights
-
Closed the acquisition of
Regional Homes - Launched captive joint venture, Champion Financing
-
Expanded Southeast capacity with the opening of a new facility in
Bartow, Florida
“I am really impressed with how the team handled our business goals this quarter and their ability to execute on our operational and strategic priorities,” said
Third Quarter Fiscal 2024 Results
Net sales for the third quarter fiscal 2024 decreased 3.9% to
Gross profit decreased by 18.9% to
Selling, general, and administrative expenses (“SG&A”) in the third quarter fiscal 2024 increased to
Net income decreased by 43.3% to
Adjusted EBITDA for the third quarter fiscal 2024 decreased by 39.2% to
As of
Conference Call and Webcast Information:
Interested investors and other parties can listen to a webcast of the live conference call by logging onto the Investor Relations section of Skyline Champion’s website at skylinechampion.com. The online replay will be available on the same website immediately following the call.
The conference call can also be accessed by dialing (877) 407-4018 (domestic) or (201) 689-8471 (international). A telephonic replay will be available approximately two hours after the call by dialing (844) 512-2921, or for international callers, (412) 317-6671. The passcode for the live call and the replay is 13743591. The replay will be available until
About
In addition to its core home building business,
Presentation of Non-GAAP Financial Measures
In addition to the results provided in accordance with
Forward-Looking Statements
Statements in this press release, including certain statements regarding Skyline Champion’s strategic initiatives, and future market demand are intended to be covered by the safe harbor for "forward-looking statements" provided by the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally can be identified by use of words such as "believe," "expect," "future," "anticipate," "intend," "plan," "foresee," "may," "could," "should," "will," "potential," "continue," or other similar words or phrases. Similarly, statements that describe objectives, plans, or goals also are forward-looking statements. Such forward-looking statements involve inherent risks and uncertainties, many of which are difficult to predict and are generally beyond the control of
If any of these risks or uncertainties materializes or if any of the assumptions underlying such forward-looking statements proves to be incorrect, then the developments and future events concerning
CONSOLIDATED BALANCE SHEETS (Unaudited, dollars and shares in thousands)
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ASSETS |
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Current assets: |
|
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Cash and cash equivalents |
|
$ |
497,907 |
|
|
$ |
747,453 |
|
Trade accounts receivable, net |
|
|
48,659 |
|
|
|
67,296 |
|
Inventories, net |
|
|
290,542 |
|
|
|
202,238 |
|
Other current assets |
|
|
33,057 |
|
|
|
26,479 |
|
Total current assets |
|
|
870,165 |
|
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|
1,043,466 |
|
Long-term assets: |
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Property, plant, and equipment, net |
|
|
287,708 |
|
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|
177,125 |
|
|
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|
359,260 |
|
|
|
196,574 |
|
Amortizable intangible assets, net |
|
|
79,320 |
|
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|
45,343 |
|
Deferred tax assets |
|
|
22,255 |
|
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|
17,422 |
|
Other noncurrent assets |
|
|
250,711 |
|
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|
82,794 |
|
Total assets |
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$ |
1,869,419 |
|
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$ |
1,562,724 |
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LIABILITIES AND STOCKHOLDERS' EQUITY |
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Current liabilities: |
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Floorplan payable |
|
$ |
80,389 |
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$ |
- |
|
Accounts payable |
|
|
43,810 |
|
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|
44,702 |
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Other current liabilities |
|
|
215,098 |
|
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|
204,215 |
|
Total current liabilities |
|
|
339,297 |
|
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|
248,917 |
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Long-term liabilities: |
|
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Long-term debt |
|
|
24,663 |
|
|
|
12,430 |
|
Deferred tax liabilities |
|
|
6,867 |
|
|
|
5,964 |
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Other liabilities |
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76,634 |
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|
62,412 |
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Total long-term liabilities |
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108,164 |
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80,806 |
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Stockholders' Equity: |
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Common stock |
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1,600 |
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|
1,585 |
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Additional paid-in capital |
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563,019 |
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519,479 |
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Retained earnings |
|
|
868,598 |
|
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725,672 |
|
Accumulated other comprehensive loss |
|
|
(11,259 |
) |
|
|
(13,735 |
) |
Total stockholders’ equity |
|
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1,421,958 |
|
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|
1,233,001 |
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Total liabilities and stockholders’ equity |
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$ |
1,869,419 |
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$ |
1,562,724 |
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CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited, dollars and shares in thousands, except per share amounts)
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Three months ended |
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Nine months ended |
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Net sales |
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$ |
559,455 |
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$ |
582,322 |
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$ |
1,488,460 |
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$ |
2,115,028 |
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Cost of sales |
|
|
418,183 |
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|
408,233 |
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|
|
1,101,026 |
|
|
|
1,437,498 |
|
Gross profit |
|
|
141,272 |
|
|
|
174,089 |
|
|
|
387,434 |
|
|
|
677,530 |
|
Selling, general, and administrative expenses |
|
|
85,091 |
|
|
|
71,820 |
|
|
|
219,984 |
|
|
|
228,017 |
|
Operating income |
|
|
56,181 |
|
|
|
102,269 |
|
|
|
167,450 |
|
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|
449,513 |
|
Interest (income), net |
|
|
(4,309 |
) |
|
|
(5,409 |
) |
|
|
(24,090 |
) |
|
|
(7,293 |
) |
Other expense (income) |
|
|
756 |
|
|
|
— |
|
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|
2,821 |
|
|
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(634 |
) |
Income before income taxes |
|
|
59,734 |
|
|
|
107,678 |
|
|
|
188,719 |
|
|
|
457,440 |
|
Income tax expense |
|
|
12,764 |
|
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|
24,865 |
|
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|
44,811 |
|
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|
113,384 |
|
Net income |
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$ |
46,970 |
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$ |
82,813 |
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$ |
143,908 |
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$ |
344,056 |
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Net income per share: |
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Basic |
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$ |
0.81 |
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$ |
1.45 |
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$ |
2.51 |
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$ |
6.04 |
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Diluted |
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$ |
0.81 |
|
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$ |
1.44 |
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$ |
2.49 |
|
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$ |
6.00 |
|
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited, dollars in thousand)
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Nine months ended |
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Cash flows from operating activities |
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Net income |
|
$ |
143,908 |
|
|
$ |
344,056 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
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Depreciation and amortization |
|
|
24,017 |
|
|
|
19,341 |
|
Amortization of deferred financing fees |
|
|
255 |
|
|
|
266 |
|
Equity-based compensation |
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|
15,231 |
|
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|
11,631 |
|
Deferred taxes |
|
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(3,115 |
) |
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|
3,581 |
|
Loss (gain) on disposal of property, plant, and equipment |
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|
145 |
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(143 |
) |
Foreign currency transaction loss |
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(184 |
) |
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|
844 |
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Loss on equity method investment |
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|
217 |
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— |
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Change in assets and liabilities: |
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Accounts receivable |
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39,340 |
|
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|
42,847 |
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Floor plan receivables |
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(4,978 |
) |
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— |
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Inventories |
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|
47,696 |
|
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|
30,470 |
|
Other assets |
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(10,756 |
) |
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|
(9,895 |
) |
Accounts payable |
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(15,309 |
) |
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|
(52,663 |
) |
Accrued expenses and other liabilities |
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(17,850 |
) |
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(26,291 |
) |
Net cash provided by operating activities |
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|
218,617 |
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|
364,044 |
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Cash flows from investing activities |
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Additions to property, plant, and equipment |
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(40,986 |
) |
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(38,177 |
) |
Cash paid for equity method investment |
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(2,250 |
) |
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— |
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Cash paid for investment in ECN common stock |
|
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(78,858 |
) |
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— |
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Cash paid for investment in ECN preferred stock |
|
|
(64,520 |
) |
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— |
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Investment in floor plan loans |
|
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(18,466 |
) |
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— |
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Proceeds from floor plan loans |
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|
14,646 |
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|
— |
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Acquisitions, net of cash acquired |
|
|
(284,545 |
) |
|
|
(6,810 |
) |
Proceeds from disposal of property, plant, and equipment |
|
|
556 |
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|
|
224 |
|
Net cash used in investing activities |
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|
(474,423 |
) |
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(44,763 |
) |
Cash flows from financing activities |
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Changes in floor plan financing, net |
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|
4,474 |
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(35,460 |
) |
Payments on long term debt |
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|
(67 |
) |
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— |
|
Stock option exercises |
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|
506 |
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|
596 |
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Tax payments for equity-based compensation |
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|
(983 |
) |
|
|
(1,363 |
) |
Net cash provided by (used in) financing activities |
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|
3,930 |
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(36,227 |
) |
Effect of exchange rate changes on cash and cash equivalents |
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2,330 |
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(6,019 |
) |
Net (decrease) increase in cash and cash equivalents |
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(249,546 |
) |
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|
277,035 |
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Cash and cash equivalents at beginning of period |
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|
747,453 |
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|
435,413 |
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Cash and cash equivalents at end of period |
|
$ |
497,907 |
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$ |
712,448 |
|
RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA (Unaudited, dollars in thousand)
|
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Three months ended |
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Nine months ended |
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Change |
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Change |
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Reconciliation of Adjusted EBITDA: |
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Net income |
|
$ |
46,970 |
|
|
$ |
82,813 |
|
|
$ |
(35,843 |
) |
|
$ |
143,908 |
|
|
$ |
344,056 |
|
|
$ |
(200,148 |
) |
Income tax expense |
|
|
12,764 |
|
|
|
24,865 |
|
|
|
(12,101 |
) |
|
|
44,811 |
|
|
|
113,384 |
|
|
|
(68,573 |
) |
Interest (income), net |
|
|
(4,309 |
) |
|
|
(5,409 |
) |
|
|
1,100 |
|
|
|
(24,090 |
) |
|
|
(7,293 |
) |
|
|
(16,797 |
) |
Depreciation and amortization |
|
|
9,639 |
|
|
|
6,784 |
|
|
|
2,855 |
|
|
|
24,017 |
|
|
|
19,341 |
|
|
|
4,676 |
|
EBITDA |
|
|
65,064 |
|
|
|
109,053 |
|
|
|
(43,989 |
) |
|
|
188,646 |
|
|
|
469,488 |
|
|
|
(280,842 |
) |
Transaction costs |
|
|
1,188 |
|
|
|
— |
|
|
|
1,188 |
|
|
|
3,253 |
|
|
|
338 |
|
|
|
2,915 |
|
Other |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(973 |
) |
|
|
973 |
|
Adjusted EBITDA |
|
$ |
66,252 |
|
|
$ |
109,053 |
|
|
|
(42,801 |
) |
|
$ |
191,899 |
|
|
$ |
468,853 |
|
|
|
(276,954 |
) |
RECONCILIATION OF NET INCOME TO ADJUSTED EARNINGS PER SHARE (Unaudited, dollars and shares in thousands, except per share amounts) (Certain amounts shown net of tax, as applicable)
|
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Three months ended |
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Nine months ended |
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|
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|
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|
|
|
|
|
|
|
|
||||
Net income |
|
$ |
46,970 |
|
|
$ |
82,813 |
|
|
$ |
143,908 |
|
|
$ |
344,056 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Transaction costs |
|
|
934 |
|
|
|
— |
|
|
|
2,481 |
|
|
|
255 |
|
Other |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(733 |
) |
Adjusted net income attributable to the
|
|
$ |
47,904 |
|
|
$ |
82,813 |
|
|
$ |
146,389 |
|
|
$ |
343,578 |
|
Adjusted basic net income per share |
|
$ |
0.83 |
|
|
$ |
1.45 |
|
|
$ |
2.55 |
|
|
$ |
6.03 |
|
Adjusted diluted net income per share |
|
$ |
0.82 |
|
|
$ |
1.44 |
|
|
$ |
2.53 |
|
|
$ |
5.99 |
|
Average basic shares outstanding |
|
|
57,644 |
|
|
|
56,971 |
|
|
|
57,364 |
|
|
|
56,946 |
|
Average diluted shares outstanding |
|
|
58,136 |
|
|
|
57,377 |
|
|
|
57,842 |
|
|
|
57,390 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240205529816/en/
Investor information:
Email: investorrelations@championhomes.com
Phone: (248) 614-8211
Source: