Skyline Champion Announces Fourth Quarter and Full Year Fiscal 2021 Results
Skyline Champion Corporation (“Skyline Champion”) announced financial results for its fourth quarter and full year ended April 3, 2021 (“fiscal 2021”). Results included an extra week during the fourth quarter of fiscal 2021 compared to the year ago period.
Fourth Quarter Fiscal 2021 Highlights (compared to Fourth Quarter Fiscal 2020)
–Net sales increased 48.6% to $447.6 million
–U.S. factory-built homes sold increased 28.7% to 5,923
–Total backlog increased 573.7% to $858.6 million
–Average selling price (“ASP”) per U.S. home sold increased 11.6% to $67,200
–Gross profit margin expanded by 220 basis points to 22.1%
–Net income increased by 465.0% to $33.9 million
–Earnings per share (“EPS”) increased to $0.60 from $0.11
–Adjusted EBITDA increased 155.4% to $51.2 million
–Adjusted EBITDA margin expanded by 470 basis points to 11.4%
–Net cash provided by operating activities increased to $50.1 million
–Completed the acquisition of ScotBilt Homes
“I am very proud of Skyline Champion’s accomplishments in the challenging environment experienced during fiscal 2021, as we finished the year with very strong quarterly results,” said Mark Yost, Skyline Champion’s President and Chief Executive Officer. “During the year the team’s exceptional efforts allowed the Company to increase production in response to surging demand despite a challenging operating environment, while remaining focused on the health and safety of all our employees and partners. In addition, we were able to leverage our strong balance sheet and complete the acquisition of ScotBilt Homes, helping to broaden our footprint and add efficient manufacturing facilities to our operations. Demand for affordable housing solutions accelerated over the past year, and with our investments to simplify the customer buying experience, automate and increase capacity, Skyline Champion is in an amazing position to capitalize on this demand.”
Fourth Quarter Fiscal 2021 Results
Net sales for the fourth quarter fiscal 2021 increased 48.6% to $447.6 million compared to the prior-year period. The number of U.S. factory-built homes sold in the fourth quarter fiscal 2021 increased 28.7% to 5,923 compared to the prior year fourth quarter, as a result of strong demand and increased production levels. The ASP per U.S. home sold increased 11.6% to $67,200 due to price increases in response to rising material costs. The number of Canadian factory-built homes sold in the quarter increased to 419 homes compared to 130 homes in the prior-year period due to stronger demand and improved production levels. Total backlog for Skyline Champion was $858.6 million as of April 3, 2021 compared to $127.5 million as of March 28, 2020. Backlog increased $370.1 million during the quarter compared to a decrease of $5.6 million in the fourth quarter fiscal 2020 driven by strong order levels that have outpaced production and the acquisition of ScotBilt Homes, LLC and related companies.
Gross profit increased by 65.2% to $99.1 million in the fourth quarter fiscal 2021 compared to the prior-year period. Gross profit margin was 22.1% of net sales, a 220 basis point expansion compared to 19.9% in the fourth quarter fiscal 2020. The increase in the gross profit margin was driven by higher sales growth due to higher volume and pricing as well as operational efficiencies.
Selling, general, and administrative expenses (“SG&A”) in the fourth quarter fiscal 2021 increased to $52.5 million from $47.2 million in the same period last year. Lower expenses due to decreased travel and marketing were more than offset by higher variable compensation and investment in the company’s online customer experience platform.
Net income for the fourth quarter fiscal 2021 was $33.9 million, a significant improvement compared to net income of $6.0 million during the same period of the prior year. The increase in net income was mainly driven by the increase in sales and gross profit.
Adjusted EBITDA for the fourth quarter fiscal 2021 increased by 155.4% to $51.2 million compared to the fourth quarter fiscal 2020 primarily driven by an increase in net sales. Adjusted EBITDA margin expanded by 470 basis points to 11.4% due to higher sales growth and operational improvements.
As of April 3, 2021, Skyline Champion had $262.6 million of cash and cash equivalents.
Full Year Fiscal 2021 Financial Highlights
For fiscal 2021, net sales were $1,420.9 million which represents an increase of 3.7%, or $51.2 million, compared to fiscal 2020. Full year fiscal 2021 results included an extra week compared to fiscal year 2020 as well as revenue related to the ScotBilt acquisition and U.S. housing ASP growth of 3.9%.
Gross profit increased $8.7 million or 3.1% to $287.7 million for fiscal 2021, compared to $279.0 million for the prior year period. Gross profit margin decreased by 20 basis points to 20.2% of net sales for fiscal 2021, compared to fiscal 2020 primarily due to raw material inflation and extended employee benefits in the early months of the COVID-19 pandemic.
SG&A decreased to $178.9 million for fiscal 2021, compared to $192.5 million in the prior year period primarily due to lower travel and marketing-related expenses.
Net income for fiscal 2021 was $84.9 million compared to net income of $58.2 million for fiscal 2020, an increase of $26.7 million or 46.0% due to an increase in operating income and a decrease in income tax expense.
Adjusted EBITDA for fiscal 2021 increased by 17.8% to $134.8 million, compared to $114.4 million for fiscal 2020.
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Kevin Doherty – Investor Relations – email@example.com – (248) 614-8211
Source: Skyline Champion Corporationyear