Skyline Champion Announces Fourth Quarter and Full Year Fiscal 2023 Results
Skyline Champion Corporation (NYSE: SKY) (“Skyline Champion”) today announced financial results for its fourth quarter and full year ended April 1, 2023 (“fiscal 2023”).
Fourth Quarter Fiscal 2023 Highlights (compared to Fourth Quarter Fiscal 2022)
- Net sales decreased 23.0% to $491.5 million
- U.S. homes sold decreased 25.5% to 4,900
- Total backlog decreased 42.1% to $308 million from the sequential third quarter
- Average selling price (“ASP”) per U.S. home sold increased 5.6% to $92,700
- Gross profit margin contracted by 120 basis points to 28.7%
- Net income decreased by 33.5% to $57.7 million
- Earnings per share (“EPS”) decreased 33.8% to $1.00
- Adjusted EBITDA decreased 37.3% to $76.2 million
- Adjusted EBITDA margin contracted by 350 basis points to 15.5%
- Net cash generated by operating activities of $52.2 million during the quarter
Full Year Fiscal 2023 Highlights (compared to Full Year Fiscal 2022)
- Net sales increased 18.1% to $2.6 billion
- Gross profit margin improved by 470 basis points to 31.4%
- Earnings per share (“EPS”) increased 61.7% to $7.00
- Adjusted EBITDA increased 54.0% to $545.0 million
- Adjusted EBITDA margin improved by 490 basis points to 20.9%
“Skyline Champion delivered strong results in fiscal 2023 in the face of a tough macroeconomic environment, a testament to the hard work of our people, partners and the demand for our attainable home solutions,” said Mark Yost, Skyline Champion’s President, and Chief Executive Officer. “We were able to grow our topline and expand our gross profit margin through improved operational efficiency and customer-focused investments. While backlogs continue to normalize, the current housing environment creates an opportunity for Skyline Champion to continue to outperform.”
Fourth Quarter Fiscal 2023 Results
Net sales for the fourth quarter fiscal 2023 decreased 23.0% to $491.5 million compared to the prior-year period. The number of U.S. homes sold in the fourth quarter fiscal 2023 decreased 25.5% to 4,900. Volume levels during the quarter were adversely impacted by retailer inventory destocking which drove lower order rates and reduced production. The ASP per U.S. home sold increased 5.6% to $92,700 due to the mix of units sold and price increases to offset cost inflation. The number of Canadian factory-built homes sold in the quarter decreased to 246 homes compared to 400 homes in the prior-year period due to reduced demand. Total backlog for Skyline Champion was $308 million as of April 1, 2023, compared to $532 million at the end of the third quarter. Backlogs continued to decrease to more normal levels, following historical highs.
Gross profit decreased by 26.1% to $141.2 million in the fourth quarter fiscal 2023 compared to the prior-year period. Gross profit margin was 28.7% of net sales, a 120-basis point contraction compared to 29.9% in the fourth quarter fiscal 2022. Gross profit margin contraction is being driven by lower volumes on comparison and lower demand in certain markets.
Selling, general, and administrative expenses (“SG&A”) in the fourth quarter fiscal 2023 decreased to $72.4 million from $75.0 million in the same period last year. SG&A as a percentage of net sales was 14.7%, a 290-basis point increase from prior year levels. The lower SG&A expense during the quarter was due to lower sales volume, partially offset by higher expense due to acquisitions closed earlier this year and investments in new capacity.
Net income decreased by 33.5% to $57.7 million for the fourth quarter fiscal 2023 compared to the prior-year period. The decrease in net income was driven by lower sales in the quarter.
Adjusted EBITDA for the fourth quarter fiscal 2023 decreased by 37.3% to $76.2 million compared to the fourth quarter fiscal 2022. Adjusted EBITDA margin contracted by 350 basis points to 15.5%.
As of April 1, 2023, Skyline Champion had $747.5 million of cash and cash equivalents, an increase of $312.0 million as compared to prior fiscal year end.
Full Year Fiscal 2023 Financial Highlights
For fiscal 2023, net sales were $2.6 billion which represents an increase of 18.1%, or $399.3 million, compared to fiscal 2022. Net sales growth was primarily driven by higher average selling prices per home and $200 million of disaster relief housing revenue recorded in the first half of the fiscal year.
Gross profit increased $229.6 million or 39.0% to $818.7 million in fiscal 2023, compared to $589.1 million in the prior year period. Gross profit margin increased by 470 basis points to 31.4% of net sales for fiscal 2023, compared to fiscal 2022, primarily due to disaster-relief housing mix, increased price levels, operational efficiencies and improved leverage of fixed costs.
SG&A increased to $300.4 million for fiscal 2023, compared to $256.2 million in the prior year period primarily due to acquisitions and new plant startups, higher variable compensation from increased sales volumes and higher marketing expenses. As a percentage of sales, SG&A was flat year over year.
Net income for fiscal 2023 was $401.8 million compared to net income of $248.0 million for fiscal 2022, an increase of $153.8 million or 62.0% due to an increase in net sales and improved operating income.
Adjusted EBITDA for fiscal 2023 increased by 54.0% to $545.0 million, compared to $353.9 million for fiscal 2022. Adjusted EBITDA margin expanded 490 basis points to 20.9% in fiscal 2023.
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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 8,100 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 provides construction services to install and set-up factory-built homes, 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 – Media Contact – email@example.com – (248) 614-8211
Source: Skyline Champion Corporation