Champion Homes, formerly known as Skyline Champion Corporation, announced financial results for its first quarter ended June 29. The company also announced its official name change to Champion Homes.
“I am excited to announce that our shareholders approved our corporate company name change to Champion Homes Inc. during our annual meeting this year. The name change aligns with our previously launched Champion Homes flagship brand supporting a unified company, our purpose of championing home attainability and the customer experience, as well as the company’s direct-to-consumer marketing and digital expansion,” said Mark Yost, Champion Homes’ president and CEO. “In addition, I am pleased to report Champion Homes delivered strong results for the first quarter of fiscal 2025. Throughout the quarter, we experienced an increase in demand for our homes evidenced by growing sales and backlog. This positive trend reflects the benefits of our strategic investments in expanding our retail footprint and capitalizing on the growing need for attainable housing in the market. As we continue to advance our strategic initiatives, expand our capabilities, and strengthen our value proposition, Champion Homes is ideally positioned to drive growth and deliver value to our shareholders for the foreseeable future.”
First Quarter Fiscal 2025 Results:
Net sales for the first quarter fiscal 2025 increased 35.1% to $627.8 million compared to the prior-year period. The number of U.S. homes sold in the first quarter fiscal 2024 increased 35.7% to 6,538, driven by sales of $151.5 million from the Regional Homes acquisition and healthy demand in the community sales channel. The ASP per U.S. home sold increased 3% to $91,700 primarily due to the higher mix of retail units sold during the quarter. The number of Canadian factory-built homes sold in the quarter decreased to 167 homes compared to 221 homes in the prior-year period due to softening demand in certain markets.
Gross profit increased by 26.6% to $164.2 million in the first quarter fiscal 2025 compared to the prior-year period. Gross profit margin was 26.2% of net sales, a 170-basis point contraction compared to 27.9% in the first quarter fiscal 2024. Gross margin contraction reflects lower ASPs on wholesale new homes sold, a shift in product mix, the ramping of previously idle facilities and the impact of purchase accounting from the Regional Homes acquisition.
Selling, general and administrative expenses (SG&A) in the first quarter fiscal 2025 increased to $108.8 million from $70.4 million in the same period last year. SG&A during the quarter increased due to the Regional Homes acquisition, including a charge of $7.9 million for the change in the fair value of the contingent consideration, as well as higher variable compensation. SG&A as a percentage of net sales was 17.3%, compared to 15.2% in the prior year period.
Net income decreased by 10.7% to $45.8 million for the first quarter fiscal 2025 compared to the prior-year period. The decrease in net income was driven by lower gross margin as a percentage of sales and higher SG&A expenses for the quarter.
Adjusted EBITDA for the first quarter fiscal 2025 increased by 12.2% to $75.0 million compared to the first quarter fiscal 2024. Adjusted EBITDA margin for the quarter was 11.9%, compared to 14.4% in the prior-year period.
As of June 29, Champion Homes had $548.9 million of cash and cash equivalents, an increase of $53.9 million in the current quarter. The Company repurchased approximately 292,000 shares of its common stock during the quarter for approximately $20 million. On Aug. 1, the board of directors refreshed the amount of the share repurchase program back up to an aggregate amount of $100 million.
