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News for July 2, 2022

Skyline Champion Announces Fourth Quarter and Full Year Fiscal 2022 Results

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Skyline Champion Corporation on Monday announced financial results for its fourth quarter and full-year ended April 2, 2022. Last year’s results included an extra week during the fourth quarter compared to fiscal 2022.

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

  • Net sales increased 42.5% to $638.1 million
  • U.S. homes sold increased 11.1% to 6,580
  • Total backlog increased to $1.6 billion
  • Average selling price (“ASP”) per U.S. home sold increased 30.7% to $87,800
  • Gross profit margin expanded by 780 basis points to 29.9%
  • Net income increased by 156.1% to $86.8 million
  • Earnings per share (“EPS”) increased to $1.51 from $0.59
  • Adjusted EBITDA increased 137.0% to $121.4 million
  • Adjusted EBITDA margin expanded by 760 basis points to 19.0%
  • Net cash provided by operating activities of $60.1 million during the quarter

“I am very proud of Skyline Champion’s accomplishments in the ever-evolving operating environment faced throughout fiscal 2022, a true testament to our people and our partners,” said Mark Yost, Skyline Champion’s president and chief executive officer.

“Our extraordinary results were driven by the team’s ability to make meaningful progress on streamlining our product offerings, which allowed us to significantly increase production levels in response to the market demand for our homes. With increased capacity and the investments we are making to enhance the customer’s home-buying experience, we are confident and well-positioned to continue to deliver significant value to our customers and stakeholders, especially as society’s need for attainable housing is magnified in today’s environment.”

Fourth Quarter Fiscal 2022 Results

Net sales for the fourth quarter fiscal 2022 increased 42.5% to $638.1 million compared to the prior-year period. The number of U.S. homes sold in the fourth quarter fiscal 2022 increased 11.1% to 6,580 despite the extra fiscal week in the prior year fourth quarter.

Volume growth during the quarter was driven by continued strong demand and increased production levels. The ASP per U.S. home sold increased 30.7% to $87,800 due to price increases to offset inflation in materials, labor, and transportation costs.

The number of Canadian factory-built homes sold in the quarter decreased to 400 homes compared to 419 homes in the prior-year period due to the extra week in the fourth quarter of last year. Total backlog for Skyline Champion was $1.6 billion as of April 2, 2022, compared to $858.6 million as of April 3, 2021. Backlog growth was driven by strong order activity and higher average selling prices per home. The backlog at April 2, 2022 included approximately $200 million of disaster relief housing for production and delivery to FEMA.

Gross profit increased by 92.7% to $191.0 million in the fourth quarter fiscal 2022 compared to the prior-year period. Gross profit margin was 29.9% of net sales, a 780 basis point expansion compared to 22.1% in the fourth quarter fiscal 2021. The ongoing improvement in the gross profit margin is being driven by higher volumes, pricing, and operational efficiencies.

Selling, general, and administrative expenses (“SG&A”) in the fourth quarter fiscal 2022 increased to $75.0 million from $52.5 million in the same period last year. SG&A as a percentage of net sales increased 10 basis points to 11.8%. Higher volumes, increased profitability, and fixed cost leverage during the quarter partially offset higher variable compensation and the ongoing investments in capacity expansion and the enhanced customer buying experience.

Net income increased by 156.1% to $86.8 million for the fourth quarter fiscal 2022 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 fourth quarter fiscal 2022 increased by 137.0% to $121.4 million compared to the fourth quarter fiscal 2021 driven by an increase in net sales and improved profitability. Adjusted EBITDA margin expanded by 760 basis points to 19.0% due to higher sales and continued operational improvements increasing the leverage of fixed costs.

As of April 2, 2022, Skyline Champion had $435.4 million of cash and cash equivalents.

Full Year Fiscal 2022 Financial Highlights

For fiscal 2022, net sales were $2,207.2 million which represents an increase of 55.3%, or $786.3 million, compared to fiscal 2021, which had an extra fiscal week in the fourth quarter compared to this year. Net sales growth was primarily driven by strong demand, pricing to offset inflation, and increased production.

Gross profit increased $301.4 million or 104.8% to $589.1 million in fiscal 2022, compared to $287.7 million in the prior year period. Gross profit margin increased by 650 basis points to 26.7% of net sales for fiscal 2022, compared to fiscal 2021 primarily due to higher sales volumes and increased price levels, and operational efficiencies.

SG&A increased to $256.2 million for fiscal 2022, compared to $178.9 million in the prior-year period primarily due higher variable compensation, the impact of the ScotBilt acquisition in February 2021 and investments in the enhanced customer buying experience.

Net income for fiscal 2022 was $248.0 million compared to net income of $84.9 million for fiscal 2021, an increase of $163.1 million or 192.2% due to an increase net sales and improved operating income.

Adjusted EBITDA for fiscal 2022 increased by 162.6% to $353.9 million, compared to $134.8 million for fiscal 2022. Adjusted EBITDA margin expanded 650 basis points to 16.0% in fiscal 2022.

Conference Call and Webcast Information

Skyline Champion management will host a conference call tomorrow, May 24, 2022, at 9:00 a.m. Eastern Time, to discuss Skyline Champion’s financial results and an update on current operations.

Investors and other interested parties can listen to a webcast of the live conference call by logging onto the Investor Relations section of Skyline Champion’s website at http://skylinechampion.com. The online replay will be available on the same website immediately following the call.

The conference call can also be accessed by dialing (877) 407-4018 (domestic) or (201) 689-8471 (international). A telephonic replay will be available approximately two hours after the call by dialing (844) 512-2921, or for international callers, (412) 317-6671. The passcode for the live call and the replay is 13729582. The replay will be available until 11:59 P.M. Eastern Time on June 7, 2022.

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 8,400 people. With almost 70 years of homebuilding experience and 41 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, Titan Factory Direct, with 18 retail locations spanning the southern United States, and operates Star Fleet Trucking, which provides 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.

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Hi, you might find this article from Modern Campground interesting: Skyline Champion Announces Fourth Quarter and Full Year Fiscal 2022 Results! This is the link: https://moderncampground.com/press-releases/skyline-champion-announces-fourth-quarter-and-full-year-fiscal-2022-results/