The following is a summary of the Skyline Champion Corporation (SKY) Q3 2024 Earnings Call Transcript:
Financial Performance:
Skyline Champion Corp reported Q3 net sales of $560 million, a decrease of 4% YoY due to a decrease in material surcharges and changes in product mix towards less-optioned homes.
Organic order volume grew by over 230% compared to the same quarter last year, while the backlog grew to $290 million, primarily due to the Regional Homes acquisition.
Consolidated gross profit declined by 19% to $141 million, with gross margins contracting by 460 basis points to 25.3% due to lower average selling prices and a shift in product mix.
Net income decreased 43% to $47 million or $0.81 per diluted share, compared to the previous year's earnings of $83 million or $1.44 per share.
Skyline ended the period with nearly $500 million in cash and cash equivalents, and long-term borrowings of $25 million with no maturities until 2026.
Business Progress:
Significant progress made in integrating Regional Homes and launching Champion Financing which generated considerable interest in the market.
New manufacturing plant opened in Bartow, Florida catering to growing demand from builder developers.
Profitability is expected to start increasing from Q4'24, due to synergies revolving around purchasing, operational enhancements, and cost saving measures.
The company expects to generate $10 million to $15 million in synergies over the next two years.
Despite projected decline in gross margins, Skyline is confident in its long-term structural margin targets supported by ongoing improvements in operational capabilities and continued business investments.
More details: Skyline IR
Tips: This article is generated by AI. The accuracy of the content can not be fully guaranteed. For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.