Skyline Champion Announces Fourth Quarter and Full Year Fiscal 2024 Results; Announces New $100 Million Share Repurchase Program
Fourth Quarter Fiscal 2024 Highlights (compared to Fourth Quarter Fiscal 2023)1
-
Net sales increased 9.1% to
$536.4 million -
U.S. homes sold increased 15.3% to 5,652 -
Total backlog increased 8.7% to
$315.8 million from the sequential third quarter -
Average selling price (“ASP”) per
U.S. home sold decreased 3.1% to$89,800 - Gross profit margin contracted by 1,040 basis points to 18.3%
-
Recorded
$34.5 million of estimated remediation costs for water intrusion issues - Adjusted gross profit margin contracted by 390 basis points to 24.8%
-
Net income of
$2.8 million -
Adjusted net income decreased 37.7% to
$36.0 million -
Adjusted Earnings per share (“Adjusted EPS”) decreased 38.6% to
$0.62 -
Adjusted EBITDA decreased 30.2% to
$53.1 million - Adjusted EBITDA margin contracted by 560 basis points to 9.9%
1 . This release includes references to non-GAAP financial measures. Refer to “Non-GAAP Financial Measures” later in this release for the definitions of the non-GAAP financial measures presented and a reconciliation of these measures to their closest comparable GAAP measures.
Full Year Fiscal 2024 Highlights (compared to Full Year Fiscal 2023)
-
Net sales decreased 22.3% to
$2.0 billion - Gross profit margin contracted by 740 basis points to 24.0%
-
Earnings per share (“EPS”) decreased 63.9% to
$2.53 -
Adjusted EBITDA decreased 55.0% to
$245.3 million - Adjusted EBITDA margin contracted by 880 basis points to 12.1%
-
Net cash generated by operating activities of
$222.7 million during the year
“Fiscal 2024 was a transformative year for our organization, marked by strategic investments and expanding our market presence," said
Fourth Quarter Fiscal 2024 Results
Net sales for the fourth quarter fiscal 2024 increased 9.1% to
Gross profit decreased by 30.3% to
Selling, general, and administrative expenses (“SG&A”) in the fourth quarter fiscal 2024 increased to
Net income decreased by 95.2% to
Adjusted EBITDA for the fourth quarter fiscal 2024 decreased by 30.2% to
Full Year Fiscal 2024 Financial Highlights
For fiscal 2024, net sales were
Gross profit decreased
SG&A increased 3.4% to
Net income for fiscal 2024 was
Adjusted EBITDA for fiscal 2024 decreased 55.0% to
As of
Share Repurchase Program
On
“We are excited to launch our inaugural share repurchase program, underscoring our dedication to enhancing shareholder value through our robust financial position,” said
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 13745547. 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) |
||||||||
|
|
|
|
|
|
|
||
ASSETS |
|
|
|
|
|
|
||
Current assets: |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
495,063 |
|
|
$ |
747,453 |
|
Trade accounts receivable, net |
|
|
64,632 |
|
|
|
67,296 |
|
Inventories, net |
|
|
318,737 |
|
|
|
202,238 |
|
Other current assets |
|
|
39,870 |
|
|
|
26,479 |
|
Total current assets |
|
|
918,302 |
|
|
|
1,043,466 |
|
Long-term assets: |
|
|
|
|
|
|
||
Property, plant, and equipment, net |
|
|
290,930 |
|
|
|
177,125 |
|
|
|
|
357,973 |
|
|
|
196,574 |
|
Amortizable intangible assets, net |
|
|
76,369 |
|
|
|
45,343 |
|
Deferred tax assets |
|
|
26,878 |
|
|
|
17,422 |
|
Other noncurrent assets |
|
|
252,889 |
|
|
|
82,794 |
|
Total assets |
|
$ |
1,923,341 |
|
|
$ |
1,562,724 |
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
||
Current liabilities: |
|
|
|
|
|
|
||
Floor plan payable |
|
$ |
91,286 |
|
|
$ |
- |
|
Accounts payable |
|
|
50,820 |
|
|
|
44,702 |
|
Other current liabilities |
|
|
247,495 |
|
|
|
204,215 |
|
Total current liabilities |
|
|
389,601 |
|
|
|
248,917 |
|
Long-term liabilities: |
|
|
|
|
|
|
||
Long-term debt |
|
|
24,669 |
|
|
|
12,430 |
|
Deferred tax liabilities |
|
|
6,905 |
|
|
|
5,964 |
|
Other liabilities |
|
|
79,796 |
|
|
|
62,412 |
|
Total long-term liabilities |
|
|
111,370 |
|
|
|
80,806 |
|
|
|
|
|
|
|
|
||
Stockholders' Equity: |
|
|
|
|
|
|
||
Common stock |
|
|
1,605 |
|
|
|
1,585 |
|
Additional paid-in capital |
|
|
568,203 |
|
|
|
519,479 |
|
Retained earnings |
|
|
866,485 |
|
|
|
725,672 |
|
Accumulated other comprehensive loss |
|
|
(13,923 |
) |
|
|
(13,735 |
) |
Total stockholders’ equity |
|
|
1,422,370 |
|
|
|
1,233,001 |
|
Total liabilities and stockholders' equity |
|
$ |
1,923,341 |
|
|
$ |
1,562,724 |
|
CONSOLIDATED INCOME STATEMENTS (Unaudited, dollars and shares in thousands, except per share amounts) |
||||||||||||||||
|
|
Three Months Ended |
|
|
Twelve Months Ended |
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
||||||||||
Net sales |
|
$ |
536,363 |
|
|
$ |
491,532 |
|
|
$ |
2,024,823 |
|
|
$ |
2,606,560 |
|
Cost of sales |
|
|
438,003 |
|
|
|
350,381 |
|
|
|
1,539,029 |
|
|
|
1,787,879 |
|
Gross profit |
|
|
98,360 |
|
|
|
141,151 |
|
|
|
485,794 |
|
|
|
818,681 |
|
Selling, general, and administrative expenses |
|
|
90,605 |
|
|
|
72,380 |
|
|
|
310,589 |
|
|
|
300,396 |
|
Operating income |
|
|
7,755 |
|
|
|
68,771 |
|
|
|
175,205 |
|
|
|
518,285 |
|
Interest (income), net |
|
|
(4,164 |
) |
|
|
(7,684 |
) |
|
|
(28,254 |
) |
|
|
(14,977 |
) |
Other (income) expense |
|
|
(217 |
) |
|
|
— |
|
|
|
2,604 |
|
|
|
(634 |
) |
Income before income taxes |
|
|
12,136 |
|
|
|
76,455 |
|
|
|
200,855 |
|
|
|
533,896 |
|
Income tax expense |
|
|
2,325 |
|
|
|
18,709 |
|
|
|
47,136 |
|
|
|
132,094 |
|
Net income before equity in net loss of affiliate |
|
|
9,811 |
|
|
|
57,746 |
|
|
|
153,719 |
|
|
|
401,802 |
|
Equity in net loss of affiliate |
|
|
7,023 |
|
|
|
— |
|
|
|
7,023 |
|
|
|
— |
|
Net income |
|
$ |
2,788 |
|
|
$ |
57,746 |
|
|
$ |
146,696 |
|
|
$ |
401,802 |
|
Net income per share: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
$ |
0.05 |
|
|
$ |
1.01 |
|
|
$ |
2.55 |
|
|
$ |
7.05 |
|
Diluted |
|
$ |
0.05 |
|
|
$ |
1.00 |
|
|
$ |
2.53 |
|
|
$ |
7.00 |
|
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited, dollars in thousand) |
||||||||
|
|
Year Ended |
|
|||||
|
|
|
|
|
|
|
||
|
|
|
|
|||||
Cash flows from operating activities |
|
|
|
|
|
|
||
Net income |
|
$ |
146,696 |
|
|
$ |
401,802 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
||
Depreciation and amortization |
|
|
34,910 |
|
|
|
26,726 |
|
Equity-based compensation |
|
|
19,560 |
|
|
|
14,160 |
|
Deferred taxes |
|
|
(6,448 |
) |
|
|
1,127 |
|
Amortization of deferred financing fees |
|
|
348 |
|
|
|
357 |
|
Loss (gain) on disposal of property, plant, and equipment |
|
|
205 |
|
|
|
(129 |
) |
Foreign currency transaction loss |
|
|
297 |
|
|
|
828 |
|
Equity in net loss of affiliate |
|
|
7,023 |
|
|
|
— |
|
Change in assets and liabilities, net of businesses acquired: |
|
|
|
|
|
|
||
Accounts receivable |
|
|
18,910 |
|
|
|
23,090 |
|
Floor plan receivables |
|
|
(15,391 |
) |
|
|
— |
|
Inventories |
|
|
22,424 |
|
|
|
49,196 |
|
Other assets |
|
|
(14,579 |
) |
|
|
(11,930 |
) |
Accounts payable |
|
|
(7,950 |
) |
|
|
(49,082 |
) |
Accrued expenses and other current liabilities |
|
|
16,699 |
|
|
|
(39,920 |
) |
Net cash provided by operating activities |
|
|
222,704 |
|
|
|
416,225 |
|
Cash flows from investing activities |
|
|
|
|
|
|
||
Additions to property, plant, and equipment |
|
|
(52,915 |
) |
|
|
(52,244 |
) |
Cash paid for acquisitions, net of cash acquired |
|
|
(283,189 |
) |
|
|
(6,810 |
) |
Cash paid for equity method investment |
|
|
(4,100 |
) |
|
|
(2,500 |
) |
Cash paid for investment in ECN common stock |
|
|
(78,858 |
) |
|
|
— |
|
Cash paid for investment in ECN preferred stock |
|
|
(64,520 |
) |
|
|
— |
|
Investment in floor plan loans |
|
|
(18,466 |
) |
|
|
— |
|
Proceeds from floor plan loans |
|
|
15,721 |
|
|
|
— |
|
Proceeds from disposal of property, plant, and equipment |
|
|
649 |
|
|
|
375 |
|
Net cash used in investing activities |
|
|
(485,678 |
) |
|
|
(61,179 |
) |
Cash flows from financing activities |
|
|
|
|
|
|
||
Changes in floor plan financing, net |
|
|
15,368 |
|
|
|
(35,460 |
) |
Payments on long term debt |
|
|
(77 |
) |
|
|
— |
|
Stock option exercises |
|
|
1,456 |
|
|
|
2,473 |
|
Tax payments for equity-based compensation |
|
|
(5,883 |
) |
|
|
(4,032 |
) |
Net cash provided by (used in) financing activities |
|
|
10,864 |
|
|
|
(37,019 |
) |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash |
|
|
(280 |
) |
|
|
(5,987 |
) |
Net (decrease) increase in cash, cash equivalents, and restricted cash |
|
|
(252,390 |
) |
|
|
312,040 |
|
Cash, cash equivalents, and restricted cash at beginning of period |
|
|
747,453 |
|
|
|
435,413 |
|
Cash, cash equivalents, and restricted cash at end of period |
|
$ |
495,063 |
|
|
$ |
747,453 |
|
RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA (Unaudited, dollars in thousand) |
||||||||||||||||
|
|
Three months ended |
Twelve Months Ended |
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Reconciliation of Adjusted EBITDA: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income |
|
$ |
2,788 |
|
|
$ |
57,746 |
|
|
$ |
146,696 |
|
|
$ |
401,802 |
|
Income tax expense |
|
|
2,325 |
|
|
|
18,709 |
|
|
|
47,136 |
|
|
|
132,094 |
|
Interest (income), net |
|
|
(4,164 |
) |
|
|
(7,684 |
) |
|
|
(28,254 |
) |
|
|
(14,977 |
) |
Depreciation and amortization |
|
|
10,893 |
|
|
|
7,386 |
|
|
|
34,910 |
|
|
|
26,726 |
|
EBITDA |
|
|
11,842 |
|
|
|
76,157 |
|
|
|
200,488 |
|
|
|
545,645 |
|
Transaction costs |
|
|
— |
|
|
|
— |
|
|
|
3,253 |
|
|
|
338 |
|
Equity in net loss of affiliate |
|
|
7,023 |
|
|
|
— |
|
|
|
7,023 |
|
|
|
— |
|
Product liability - water intrusion |
|
|
34,500 |
|
|
|
— |
|
|
|
34,500 |
|
|
|
— |
|
Other (income) |
|
|
(217 |
) |
|
|
— |
|
|
|
— |
|
|
|
(972 |
) |
Adjusted EBITDA |
|
$ |
53,148 |
|
|
$ |
76,157 |
|
|
$ |
245,264 |
|
|
$ |
545,011 |
|
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) |
||||||||||||||||
|
|
Three Months Ended |
|
|
Twelve Months Ended |
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income |
|
$ |
2,788 |
|
|
$ |
57,746 |
|
|
$ |
146,696 |
|
|
$ |
401,802 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Transaction costs |
|
|
— |
|
|
|
— |
|
|
|
2,489 |
|
|
|
255 |
|
Equity in net loss of affiliate |
|
|
7,023 |
|
|
|
— |
|
|
|
7,023 |
|
|
|
— |
|
Product liability - water intrusion |
|
|
26,393 |
|
|
|
— |
|
|
|
26,393 |
|
|
|
— |
|
Other (income) |
|
|
(217 |
) |
|
|
— |
|
|
|
— |
|
|
|
(732 |
) |
Adjusted net income attributable to the
|
|
$ |
35,987 |
|
|
$ |
57,746 |
|
|
$ |
182,601 |
|
|
$ |
401,325 |
|
Adjusted basic net income per share |
|
$ |
0.62 |
|
|
$ |
1.01 |
|
|
$ |
3.18 |
|
|
$ |
7.04 |
|
Adjusted diluted net income per share |
|
$ |
0.62 |
|
|
$ |
1.01 |
|
|
$ |
3.15 |
|
|
$ |
6.99 |
|
Average basic shares outstanding |
|
|
57,835 |
|
|
|
57,109 |
|
|
|
57,492 |
|
|
|
56,987 |
|
Average diluted shares outstanding |
|
|
58,342 |
|
|
|
57,250 |
|
|
|
57,978 |
|
|
|
57,395 |
|
RECONCILIATION OF GROSS PROFIT TO ADJUSTED GROSS PROFIT (Unaudited, dollars in thousand) |
||||||||||||||||
|
|
Three months ended |
Twelve Months Ended |
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Reconciliation of Adjusted Gross Profit: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Gross Profit |
|
$ |
98,360 |
|
|
$ |
141,151 |
|
|
$ |
485,794 |
|
|
$ |
818,681 |
|
Product liability - water intrusion |
|
|
34,500 |
|
|
|
— |
|
|
|
34,500 |
|
|
|
— |
|
Adjusted Gross Profit |
|
$ |
132,860 |
|
|
$ |
141,151 |
|
|
$ |
520,294 |
|
|
$ |
818,681 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240521225126/en/
Investor contact information:
Email: investorrelations@championhomes.com
Phone: (248) 614-8211
Source: