Skyline Champion Announces First Quarter Fiscal 2022 Results
Skyline Champion Corporation (“Skyline Champion”) announced financial results for its first quarter ended July 3, 2021 for the fiscal year ending April 2, 2022 (“fiscal 2022”).
First Quarter Fiscal 2022 Highlights (compared to First Quarter Fiscal 2021)
-Net sales increased 86.7% to $510.2 million
-U.S. factory-built homes sold increased 58.2% to 6,372
-Total backlog increased by more than 500% to $1.2 billion
-Average selling price (“ASP”) per U.S. home sold increased 16.2% to $71,800
-Gross profit margin expanded by 210 basis points to 21.9%
-Net income increased by 260.4% to $42.9 million
-Earnings per share (“EPS”) increased to $0.75 from $0.21
-Adjusted EBITDA increased 178.2% to $62.7 million
-Adjusted EBITDA margin expanded by 410 basis points to 12.3%
-Net cash provided by operating activities of $31.9 million
“I am pleased to report that the first quarter of fiscal 2022 continued the strong sequential momentum we saw from the fourth quarter of fiscal 2021, as we were able to increase production for our customers and drive unit volume growth,” said Mark Yost, Skyline Champion’s President and Chief Executive Officer. “During the quarter we saw improved production levels, a full quarter’s benefit from our ScotBilt acquisition, and operational improvements that were able to offset the margin deterioration from material inflation, leading to impressive quarterly results. Overall, our team is executing our strategy at a high level and, as a result, we are gaining strength in a very healthy demand environment. As we continue to enhance output capabilities through our strategic initiatives, I am increasingly confident in our ability to produce results and drive value for all of our stakeholders.”
First Quarter Fiscal 2022 Results
Net sales for the first quarter fiscal 2022 increased 86.7% to $510.2 million compared to the prior-year period. The number of U.S. factory-built homes sold in the first quarter fiscal 2022 increased 58.2% to 6,372 compared to the prior year first quarter, as a result of strong demand and increased production levels. The ASP per U.S. home sold increased 16.2% to $71,800 due to price increases in response to rising material costs. The number of Canadian factory-built homes sold in the quarter increased to 385 homes compared to 192 homes in the prior-year period due to stronger demand and improved production levels. Total backlog for Skyline Champion was $1.2 billion as of July 3, 2021 compared to $192.1 million as of June 27, 2020. Backlog growth was driven by strong order levels that continue to outpace production due to supply chain availability, increased pricing and the acquisition of ScotBilt Homes, LLC and related companies.
Gross profit increased by 106.5% to $111.5 million in the first quarter fiscal 2022 compared to the prior-year period. Gross profit margin was 21.9% of net sales, a 210 basis point expansion compared to 19.8% in the first quarter fiscal 2021. The increase in the gross profit margin was driven by higher sales growth due to higher volume and operating efficiencies that were able to offset the margin erosion from material inflation.
Selling, general, and administrative expenses (“SG&A”) in the first quarter fiscal 2022 increased to $54.0 million from $40.8 million in the same period last year. Improved production levels and fixed cost leverage was more than offset by higher variable compensation and investment in the enhanced customer buying experience.
Net income for the first quarter fiscal 2022 was $42.9 million, a significant improvement compared to net income of $11.9 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 first quarter fiscal 2022 increased by 178.2% to $62.7 million compared to the first quarter fiscal 2021, primarily driven by an increase in net sales. Adjusted EBITDA margin expanded by 410 basis points to 12.3% due to higher sales growth, operational improvements, and leverage of fixed costs.
As of July 3, 2021, Skyline Champion had $287.7 million of cash and cash equivalents. On July 7, 2021, Skyline Champion entered into a new credit facility that enhances capacity for strategic initiatives and opportunistic acquisitions.
For the complete press release, click here.
About Skyline Champion Corporation
Skyline Champion Corporation (NYSE: SKY) is the largest independent, publicly traded, factory-built housing company in North America and employs approximately 7,700 people. With more than 70 years of homebuilding experience and 40 manufacturing facilities throughout the United States and western Canada, Skyline Champion is well positioned with a leading portfolio of manufactured and modular homes, ADUs, park-models and modular buildings for the single-family, multi-family, hospitality, senior and workforce housing sectors.
In addition to its core home building business, Skyline Champion operates a factory-direct retail business, Titan Factory Direct, with 18 retail locations spanning the southern United States, and 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, Athens Park Models, Dutch Housing, 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.
Kevin Doherty – Investor Relations – firstname.lastname@example.org – (248) 614-8211
Source: Skyline Champion Corporation