Skyline Champion Announces Second Quarter Year Fiscal 2023 Results
Skyline Champion Corporation (“Skyline Champion”) announced financial results for its second quarter ended October 1, 2022 (“fiscal 2023”).
Second Quarter Fiscal 2023 Highlights (compared to Second Quarter Fiscal 2022)
- Net sales increased 53.9% to $806.8 million
- U.S. homes sold increased 23.2% to 7,274
- Total backlog decreased 40.5% to $0.8 billion
- Average selling price (“ASP”) per U.S. home sold increased 29.8% to $103,700
- Gross profit margin expanded by 930 basis points to 34.0%
- Net income increased by 184.1% to $144.1 million
- Earnings per share (“EPS”) increased to $2.51 from $0.89
- Adjusted EBITDA increased 169.6% to $197.1 million
- Adjusted EBITDA margin expanded by 1,050 basis points to 24.4%
- Net cash generated by operating activities of $231.1 million during the quarter
“I am pleased to report another quarter of strong sales and earnings growth,” said Mark Yost, Skyline Champion’s President and Chief Executive Officer. “During the quarter we added retail distribution through our acquisition of 12 retail sales centers and continued to drive our long-term strategic initiatives including enhancing the customer buying experience and streamlining product offerings which continues to drive efficiencies and improved profitability. In addition, our ongoing progress to deliver more homes combined with the retailer destocking and order rates, resulted in healthier backlog levels and improved delivery times to our customers. We believe Skyline Champion can continue to outperform the broader housing industry due to our attractive price points, product offerings, enhanced production capabilities and future growth opportunities as more people become buyers of our homes.”
Second Quarter Fiscal 2023 Results
Net sales for the second quarter fiscal 2023 increased 53.9% to $806.8 million compared to the prior-year period. The number of U.S. homes sold in the second quarter fiscal 2023 increased 23.2% to 7,274. Volume growth during the quarter was driven by increased capacity and improved production levels, resulting in a higher number of homes shipped. The ASP per U.S. home sold increased 29.8% to $103,700 due to the mix of units sold, including those sold to the Federal Emergency Management Agency (“FEMA”), and price increases to offset cost inflation. The number of Canadian factory-built homes sold in the quarter decreased to 303 homes compared to 358 homes in the prior-year period due to a shift in product mix to larger homes and reduced demand in certain markets. Total backlog for Skyline Champion was $0.8 billion as of October 1, 2022, compared to $1.4 billion as of October 2, 2021. Backlog decreased due to increased production and a moderation of order rates as retailer’s destock existing inventory.
Gross profit increased by 111.9% to $274.1 million in the second quarter fiscal 2023 compared to the prior-year period. Gross profit margin was 34.0% of net sales, a 930-basis point expansion compared to 24.7% in the second quarter fiscal 2022. Gross profit margin performance is being driven by increased volumes, pricing, lower commodity costs, operational efficiencies and product mix, including sales to FEMA during the quarter.
Selling, general, and administrative expenses (“SG&A”) in the second quarter fiscal 2023 increased to $83.9 million from $61.3 million in the same period last year. SG&A as a percentage of net sales decreased 130 basis points to 10.4%. Higher volumes, increased profitability, and fixed cost leverage during the quarter more than offset higher variable compensation expenses, and additional investments in new capacity.
Net income increased by 184.1% to $144.1 million for the second quarter fiscal 2023 compared to the prior-year period. The increase in net income was driven by the increase in sales volume, pricing, and operating leverage.
Adjusted EBITDA for the second quarter fiscal 2023 increased by 169.6% to $197.1 million compared to the second quarter fiscal 2022 driven by an increase in net sales and improved profitability. Adjusted EBITDA margin expanded by 1,050 basis points to 24.4% due to higher sales and continued operational improvements increasing the leverage of fixed costs.
As of October 1, 2022, Skyline Champion had $677.0 million of cash and cash equivalents.
For the full second quarter results, 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 8,700 people. With more than 70 years of homebuilding experience and 42 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, and hospitality sectors. In addition to its core home building business, Skyline Champion operates a factory-direct retail business with 31 retail locations across the 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, 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.
Kevin Doherty – Investor Relations – firstname.lastname@example.org – (248) 614-8211
Source: Skyline Champion Corporation