In This Article:
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Net Sales: Increased 15.3% year-over-year to $645 million.
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Homes Sold: Increased 13% to 6,646 homes.
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Backlog: $313 million, up 8% from the same period last year.
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US Factory Built Housing Revenue: Increased 17%.
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Average Selling Price per US Home: Increased 2.8% to $94,900.
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Canadian Revenue: $26 million, with a 16% decline in homes sold.
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Gross Profit: Increased 28% to $181 million.
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Gross Margin: Expanded 280 basis points to 28.1%.
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Net Income: Increased 31% to $62 million.
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Earnings per Share (EPS): $0.96 per diluted share, up from $0.81.
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Adjusted EBITDA: $83 million, with a margin of 12.9%.
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Cash and Cash Equivalents: $582 million.
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Share Repurchase: $20 million in share repurchases during the quarter.
Release Date: February 05, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Champion Homes Inc (NYSE:SKY) reported a 15.3% year-over-year increase in net sales to $645 million for the third quarter.
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The company saw a 13% increase in homes sold, totaling 6,646 homes during the period.
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Champion Homes Inc (NYSE:SKY) has been recognized nationally, with its Skyline brand named the most trusted manufacturing housing brand by Lifestory Research for the fifth consecutive year.
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The company is expanding its retail and direct-to-consumer capabilities, which is expected to drive further growth.
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Champion Homes Inc (NYSE:SKY) has a strong cash position with $582 million in cash and cash equivalents and a share repurchase program reflecting confidence in continued strong cash generation.
Negative Points
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The company experienced a 27% sequential decline in backlog, attributed to a normal seasonal slowdown in order rates.
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Canadian revenue declined by 16% due to higher interest rates and economic uncertainty impacting buyer enthusiasm.
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SG&A expenses increased by $23 million over the prior year period, driven by higher variable costs and investments in people and technology.
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The company anticipates gross margins to return to the 26% to 27% range as the benefit of lower input costs dissipates.
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Champion Homes Inc (NYSE:SKY) is closely monitoring the impact of potential tariffs, which could affect operational costs and pricing strategies.
Q & A Highlights
Q: Can you provide more color on how orders trended throughout the quarter and what you're seeing in January regarding the outlook for 2025? A: Tim Larson, CEO: Our plant shipments and retail recovered quicker than expected from hurricane impacts, allowing us to increase capacity to 63%. While we saw a seasonal slowdown towards the end of Q3, we anticipate low double-digit growth in Q4. We're seeing healthy traffic and quoting activity, with a strong response at the Louisville show, indicating optimism for the spring selling season.