Skyline Champion Shares Name Change, Q1 Financial Report – RVBusiness – Breaking RV Industry News
TROY, Mich. – Champion Homes Inc., formerly known as Skyline Champion Corporation (NYSE: SKY), today announced financial results for its first quarter ended June 29, 2024.
First Quarter Fiscal 2025 Highlights (compared to First Quarter Fiscal 2024)
- Net sales increased 35.1% to $627.8 million
- U.S. homes sold increased 35.7% to 6,538
- Total backlog increased 28.2% to $405 million from the sequential fourth quarter
- Average selling price (“ASP”) per U.S. home sold increased 3.0% to $91,700
- Gross profit margin contracted by 170 basis points to 26.2%
- Net income decreased by 10.7% to $45.8 million
- Earnings per diluted share (“EPS”) decreased 11.2% to $0.79
- Adjusted net income increased 3.5% to $53.0 million
- Adjusted earnings per share (“Adjusted EPS”) increased 2.2% to $0.91
- Adjusted EBITDA increased 12.2% to $75.0 million
- Adjusted EBITDA margin contracted by 250 basis points to 11.9%
- Net cash generated by operating activities of $84.6 million during the quarter
- Repurchased $20.0 million of shares under the previously announced share repurchase program
“I am excited to announce that our shareholders approved our corporate company name change to Champion Homes, Inc. during our annual meeting this year. The name change aligns with our previously launched Champion Homes flagship brand supporting a unified Company, our purpose of championing home attainability and the customer experience, as well as the company’s direct-to-consumer marketing and digital expansion,” said Mark Yost, Champion Homes’ president, and chief executive officer.
“In addition, I am pleased to report Champion Homes delivered strong results for the first quarter of fiscal 2025,” he continued. “Throughout the quarter, we experienced an increase in demand for our homes evidenced by growing sales and backlog. This positive trend reflects the benefits of our strategic investments in expanding our retail footprint and capitalizing on the growing need for attainable housing in the market. As we continue to advance our strategic initiatives, expand our capabilities, and strengthen our value proposition, Champion Homes is ideally positioned to drive growth and deliver value to our shareholders for the foreseeable future.”
First Quarter Fiscal 2025 Results
Net sales for the first quarter fiscal 2025 increased 35.1% to $627.8 million compared to the prior-year period. The number of U.S. homes sold in the first quarter fiscal 2024 increased 35.7% to 6,538 driven by sales of $151.5 million from the Regional Homes acquisition and healthy demand in the community sales channel. The ASP per U.S. home sold increased 3.0% to $91,700 primarily due to the higher mix of retail units sold during the quarter. The number of Canadian factory-built homes sold in the quarter decreased to 167 homes compared to 221 homes in the prior-year period due to softening demand in certain markets.
Gross profit increased by 26.6% to $164.2 million in the first quarter fiscal 2025 compared to the prior-year period. Gross profit margin was 26.2% of net sales, a 170-basis point contraction compared to 27.9% in the first quarter fiscal 2024. Gross margin contraction reflects lower ASPs on wholesale new homes sold, a shift in product mix, the ramping of previously idle facilities and the impact of purchase accounting from the Regional Homes acquisition.
Selling, general, and administrative expenses (SG&A) in the first quarter fiscal 2025 increased to $108.8 million from $70.4 million in the same period last year. SG&A during the quarter increased due to the Regional Homes acquisition, including a charge of $7.9 million for the change in the fair value of the contingent consideration, as well as higher variable compensation. SG&A as a percentage of net sales was 17.3%, compared to 15.2% in the prior year period.
Net income decreased by 10.7% to $45.8 million for the first quarter fiscal 2025 compared to the prior-year period. The decrease in net income was driven by lower gross margin as a percentage of sales and higher SG&A expenses for the quarter.
Adjusted EBITDA for the first quarter fiscal 2025 increased by 12.2% to $75.0 million compared to the first quarter fiscal 2024. Adjusted EBITDA margin for the quarter was 11.9%, compared to 14.4% in the prior-year period.
As of June 29, 2024, Champion Homes had $548.9 million of cash and cash equivalents, an increase of $53.9 million in the current quarter. The company repurchased approximately 292,000 shares of its common stock during the quarter for approximately $20 million. On Aug. 1, 2024, the Board of Directors refreshed the amount of the share repurchase program back up to an aggregate amount of $100 million.
About Champion Homes, Inc.
Champion Homes, Inc. (NYSE: SKY) is a leading producer of factory-built housing in North America and employs approximately 8,800 people. With more than 70 years of homebuilding experience and 48 manufacturing facilities throughout the United States and western Canada, Champion Homes 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, Champion Homes provides construction services to install and set-up factory-built homes, operates a factory-direct retail business with 72 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.
Champion Homes builds homes under some of the most well-known brand names in the factory-built housing industry including Skyline Homes, Champion Homes, 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.
