Skyline Champion Announces Second Quarter Fiscal 2022 Results

Skyline Champion Corporation (“Skyline Champion”) announced financial results for its second quarter ended October 2, 2021 for the fiscal year ending April 2, 2022 (“fiscal 2022”).

Second Quarter Fiscal 2022 Highlights (compared to Second Quarter Fiscal 2021)

-Net sales increased 62.6% to $524.2 million

-U.S. factory-built homes sold increased 25.9% to 5,902

-Total backlog increased to $1.4 billion

-Average selling price (“ASP”) per U.S. home sold increased 32.3% to $79,900

-Gross profit margin expanded by 520 basis points to 24.7%

-Net income increased by 189.7% to $50.7 million

-Earnings per share (“EPS”) increased to $0.89 from $0.31

-Adjusted EBITDA increased 152.7% to $73.1 million

-Adjusted EBITDA margin expanded by 490 basis points to 13.9%

-Net cash provided by operating activities improved 80.1% to $57.0 million

“Skyline Champion had a strong second quarter, driven by solid execution from our team, and positive market fundamentals,” said Mark Yost, Skyline Champion’s President and Chief Executive Officer. “With notable customer order rates above our production levels, along with strong backlogs, we remain focused on increasing production in the face of rising supply chain challenges. Streamlining of product, increasing capacity, and production automation are particularly important as we accelerate our investment in our digital platform. These investments combined with the long-term economic and demographic trends are creating a long runway of outsized growth. We are executing our strategy at a high level and I am increasingly confident in our team’s ability to deliver results in this challenging supply environment which is anticipated to continue into next year.”

Second Quarter Fiscal 2022 Results

Net sales for the second quarter fiscal 2022 increased 62.6% to $524.2 million compared to the prior-year period. The number of U.S. factory-built homes sold increased 25.9% to 5,902 compared to the prior year second quarter, as a result of strong demand and increased production levels. The ASP per U.S. home sold increased 32.3% to $79,900 due to price increases in response to rising material costs. The number of Canadian factory-built homes sold in the quarter increased to 358 homes compared to 302 homes in the prior-year period due to stronger demand and improved production levels. Total backlog for Skyline Champion was $1.4 billion as of October 2, 2021 compared to $390.1 million as of September 26, 2020. Backlog growth was driven by strong order levels that continue to outpace production due to supply chain availability, increased pricing and the backlog acquired in the acquisition of ScotBilt Homes, LLC and related companies in February 2021.

Gross profit increased by 106.0% to $129.3 million in the second quarter fiscal 2022 compared to the prior-year period. Gross profit margin was 24.7% of net sales, a 520-basis point expansion compared to 19.5% in the second quarter fiscal 2021. The increase in the gross profit margin was driven by sales growth due to higher volume, increased pricing to match material inflation, operating efficiencies and increased leverage of manufacturing fixed costs.

Selling, general, and administrative expenses (“SG&A”) in the second quarter fiscal 2022 increased to $61.3 million from $41.4 million in the same period last year. SG&A as a percentage of net sales declined 110 basis points to 11.7%. Operational efficiencies led to higher production levels and fixed cost leverage during the quarter, more than offsetting increased expenses from variable compensation and ongoing investments in the enhanced customer buying experience.

Net income for the second quarter fiscal 2022 was $50.7 million, a significant improvement compared to net income of $17.5 million during the same period of the prior year. The increase in net income was mainly driven by the increase in sales volume, pricing and operating leverage.

Adjusted EBITDA for the second quarter fiscal 2022 increased by 152.7% to $73.1 million compared to the second quarter fiscal 2021 primarily driven by an increase in net sales and improved profitability. Adjusted EBITDA margin expanded by 490 basis points to 13.9% due to higher sales growth, operational improvements, and leverage of fixed costs.

Operating cash flow for the second quarter fiscal 2022 increased 80.1% to $57.0 million compared to the second quarter fiscal 2021, due primarily to the increase in profitability. As of October 2, 2021, Skyline Champion had $310.3 million of cash and cash equivalents.

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.

Contact:

Kevin Doherty – Investor Relations – investorrelations@championhomes.com – (248) 614-8211

Source: Skyline Champion Corporation