The following is a summary of the Skyline Champion Corporation (SKY) Q4 2024 Earnings Call Transcript:
Financial Performance:
Skyline Champion reported over $2 billion in top line revenue in fiscal 2024 and $536 million in net sales in Q4, a 9% increase compared to the same quarter last year.
The company sold 5,652 units in the US, marking a 15% increase in home sales.
Consolidated gross profit saw a 30% decrease to $98 million in Q4.
The company recorded a $34.5 million reserve for estimated water intrusion remediation costs in Q4.
The backlog at year-end stood at $316 million, a 9% sequential increase.
Business Progress:
The company has been expanding through investments in integrated solutions for retail, financial services, and home completion.
A share repurchase program for up to $100 million of common stock was approved.
The company is working on aligning synergies and system capabilities after making recent investments and acquisitions.
New programs including floor plan financing and consumer financing were introduced in a partnership with Triad.
The company aims for low double-digit sequential revenue growth for the next fiscal quarter.
To improve visibility of their solutions, efforts are being made to enhance the digital lead management system.
Production is planned to be ramped up gradually with a focus on maintaining quality and ensuring backlogs are within a 4 to 12-week range.
Expansion efforts are being planned, particularly in regions with small presence like Mississippi and Alabama in response to potential retirements from independent retailers.
The company expects 10% to 15% revenue growth in fiscal year 2025.
The company is testing a rate buy down program in partnership with Triad.
The gross margin is expected to decrease in the next few quarters due to inventory issues and higher interest rates.
More details: Skyline IR
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