Skyline Champion Corp. announced financial results for its fourth quarter and full year ended March 30 (fiscal 2024). The company also announced a new $100 million share repurchase program.
Fourth quarter fiscal 2024 highlights (compared to Q4 fiscal 2023):
- Net sales increased 9.1% to $536.4 million
- U.S. homes sold increased 15.3% to 5,652
- Total backlog increased 8.7% to $315.8 million from the sequential third quarter
- Average selling price (ASP) per U.S. home sold decreased 3.1% to $89,800
- Gross profit margin contracted by 1,040 basis points to 18.3%
- Recorded $34.5 million of estimated remediation costs for water intrusion issues
- Adjusted gross profit margin contracted by 390 basis points to 24.8%
- Net income of $2.8 million
- Adjusted net income decreased 37.7% to $36.0 million
- Adjusted Earnings per share decreased 38.6% to $0.62
- Adjusted EBITDA decreased 30.2% to $53.1 million
- Adjusted EBITDA margin contracted by 560 basis points to 9.9%
Full year highlights (compared to full year fiscal 2023):
- Net sales decreased 22.3% to $2 billion
- Gross profit margin contracted by 740 basis points to 24.0%
- Earnings per share decreased 63.9% to $2.53
- Adjusted EBITDA decreased 55% to $245.3 million
- Adjusted EBITDA margin contracted by 880 basis points to 12.1%
- Net cash generated by operating activities of $222.7 million during the year
“Fiscal 2024 was a transformative year for our organization, marked by strategic investments and expanding our market presence,” said Mark Yost, Skyline Champion’s president and CEO. “Despite facing some significant market headwinds, including the prolonged destocking by our channel partners and considerable regional variability, we made substantial progress. We initiated the integration of our strategic investments, which broaden our retail and financing capabilities. We also took decisive actions to address production efficiencies while serving the expanding builder developer demand. As we move into fiscal 2025, we are better equipped with enhanced capabilities to capitalize on growth opportunities and deliver increased value to our customers and shareholders.”
On May 16, Skyline Champion’s board of directors approved a new share repurchase program for up to $100 million of the company’s common stock. Under this share repurchase program, the number of shares ultimately purchased, and the timing of purchases are at the discretion of management and subject to compliance with applicable laws and regulations, the company said. This share repurchase program may be amended, suspended or terminated by the Skyline Champion’s board of directors at any time. The company expects to fund the program from existing cash and future cash generation.
“We are excited to launch our inaugural share repurchase program, underscoring our dedication to enhancing shareholder value through our robust financial position,” said Yost. “This initiative allows us to distribute capital to our shareholders, while continuing to prioritize the financial health of the organization and supporting ongoing investments and strategic growth opportunities. This balanced capital allocation strategy affirms our commitment to both returning capital to shareholders and fueling our future expansion.”
See the full financial report here.
