Skyline Champion Announces 3rd Quarter Fiscal ’24 Results – RVBusiness – Breaking RV Industry News

TROY, Mich. – Skyline Champion Corporation (NYSE: SKY) Monday announced financial results for its third quarter ended Dec. 30, 2023.

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 Mark Yost, Skyline Champion’s president, and chief executive officer. “Executing during a seasonally slower period while making great progress on the integration of Regional Homes and the rollout of Champion Financing is a testament to our people and our partners. In addition, we expanded our capacity during the quarter with the opening of a new plant in Bartow, Florida to support our growing builder developer channel in the region. The need for housing remains strong and Skyline Champion continues to position itself to better serve the needs of our customers.”

Third Quarter Fiscal 2024 Results

Net sales for the third quarter fiscal 2024 decreased 3.9% to $559.5 million compared to the prior-year period. The number of U.S. homes sold in the third quarter fiscal 2024 decreased 1.8% to 5,643. The ASP per U.S. home sold decreased 2.0% to $92,300, due to changes to product mix and a decrease in material surcharges compared to the prior year period. The decrease in net sales was partially offset by net sales of $119.7 million from the Regional Homes acquisition. The number of Canadian factory-built homes sold in the quarter decreased to 249 homes compared to 273 homes in the prior-year period due to softer demand given the higher interest rate environment.

Gross profit decreased by 18.9% to $141.3 million in the third quarter fiscal 2024 compared to the prior-year period. Gross profit margin was 25.3% of net sales, a contraction of 460 basis points compared to 29.9% in the third quarter fiscal 2023. The change in gross profit margin was primarily due to lower ASPs, a shift in product mix, the impact of the Regional Homes operations, and the ramping of previously idled facilities.

Selling, general, and administrative expenses (“SG&A”) in the third quarter fiscal 2024 increased to $85.1 million from $71.8 million in the same period last year. SG&A during the quarter increased due to the Regional Homes acquisition. SG&A as a percentage of net sales was 15.2%, compared to 12.3% in the prior year period.

Net income decreased by 43.3% to $47.0 million for the third quarter fiscal 2024 compared to the prior year period. The decrease in net income was primarily driven by lower sales and gross profit in the quarter.

Adjusted EBITDA for the third quarter fiscal 2024 decreased by 39.2% to $66.3 million compared to the third quarter fiscal 2023. Adjusted EBITDA margin for the quarter was 11.8%, compared to 18.7% in the prior-year period.

As of December 30, 2023, Skyline Champion had $497.9 million of cash and cash equivalents, a decrease of $203.2 million in the current quarter, due to the strategic acquisition of Regional Homes, partially offset by operating cash flows of $89.5 million.

Conference Call and Webcast Information

Skyline Champion management will host a conference call at 9:00 a.m. Eastern Time, Feb. 6, 2024, to discuss Skyline Champion’s financial results and an update on current operations.

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 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 11:59 P.M. Eastern Time on February 20, 2024.

About Skyline Champion Corporation

Skyline Champion Corporation (NYSE: SKY) is a leading producer of factory-built housing in North America and employs approximately 8,500 people. With more than 70 years of homebuilding experience and 48 manufacturing facilities throughout the United States and western Canada, Skyline Champion is well positioned with an innovative portfolio of manufactured and modular homes, ADUs, park-models and modular buildings for the single-family, multi-family, and hospitality sectors.

In addition to its core home building business, Skyline Champion provides construction services to install and set-up factory-built homes, operates a factory-direct retail business with 73 retail locations across the United States, and operates Star Fleet Trucking, providing transportation services to the manufactured housing and other industries from several dispatch locations across the United States.

Skyline Champion builds homes under some of the most well-known brand names in the factory-built housing industry including Skyline Homes, Champion Home Builders, Genesis Homes, Regional Homes, Athens Park Models, Dutch Housing, Atlantic Homes, Excel Homes, Homes of Merit, New Era, Redman Homes, ScotBilt Homes, Shore Park, Silvercrest, Titan Homes in the U.S. and Moduline and SRI Homes in western Canada.