Q1 2025 Skyline Champion Corp Earnings Call Transcript
Key Points
- Skyline Champion Corp (SKY) reported a 33% year-over-year increase in home sales, reaching 6,705 units.
- Organic sale orders increased by 60% year-over-year, indicating strong market demand.
- The acquisition of Regional Homes is overperforming expectations, targeting the higher end of the $10 to $15 million synergy range by the end of fiscal 2025.
- Skyline Champion Corp (SKY) saw a notable increase in revenue of $91 million and a backlog growth of $89 million, bringing the total backlog to $405 million.
- The company's collaboration with Triade Financial has gained significant momentum, enhancing financing accessibility and propelling growth in the manufactured housing market.
- Demand in Canada remains soft due to inflation and economic uncertainty, impacting consumer sentiment and enthusiasm for new home purchases.
- Net income for the first quarter decreased by 11% to $46 million, or $0.79 per diluted share, compared to the same period last year.
- Gross margin contracted by 170 basis points from 27.9% in the prior year period, primarily due to lower wholesale average selling prices and changes in product mix.
- SG&A expenses increased by $38 million to $109 million, primarily due to the Regional Homes acquisition and a charge related to the earn-out.
- The company's effective tax rate for the quarter was 22.5%, down from 25.2% in the prior year period, impacting net income.
Good morning and welcome to Champion Homes Inc. First Quarter Fiscal 2025 earnings call. The company issued its earnings press release yesterday. After the close, I would like to remind everyone that today's press release and statements made during this call include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are subject to risks and uncertainties that could cause actual results to differ materially from the Company's expectations and projections. Such risks and uncertainties include the factors set forth in the earnings release and in the Company's filings with the Securities and Exchange Commission.
Additionally, during today's call, the company will discuss non-GAAP financial measures, which it believes can be useful in evaluating its performance at depth. A definition and reconciliation of these measures can be found in the earnings release.
I would now like to turn the call over to Mark Yost, Champion Home's President and Chief Executive Officer. Please go ahead.
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