Champion Homes (SKY) Q2 2025 Earnings Transcript

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Tuesday, Oct. 29, 2024 astatine 8:00 a.m. ET

• President and Chief Executive Officer — Mark Yost

• Executive Vice President and Chief Financial Officer — Laurie Hough

Mark Yost: Good morning, ladies and gentlemen. Thank you for joining today's net call. Before we sermon our fiscal results and outlook, I would similar to instrumentality a infinitesimal to grant the representation of Keith Anderson, a beloved colleague, mentor and transformative person for Champion Homes. Keith served some arsenic a Director and erstwhile CEO astatine Champion, wherever his visionary enactment and steadfast committedness to excellence near an indelible people connected our company. His power extended beyond our firm boundaries arsenic helium played a important relation successful shaping the broader lodging manufacture done his Board and advisory roles. Keith's vocation was distinguished by his integrity, innovation and relentless dedication to firm excellence. Keith was much than conscionable a leader.

He was a mentor and a person to galore of us. His omniscient counsel and lukewarm property enriched our nonrecreational lives and instilled our firm civilization with a consciousness of intent and comradery. As we proceed with today's call, we clasp Keith's representation beloved and proceed to beryllium inspired by his enduring legacy. His contributions person not lone shaped our past but besides laid the beardown instauration for our future. Now, fto america determination to the overview of this quarter's performance. Our show this 4th demonstrates effectual execution crossed the company, peculiarly enhancing our integer direct-to-consumer strategy, advancing the integration of Regional Homes acquisition and scaling the benefits from Champion Financing.

These efforts person enabled Champion Homes to present much worth to our customers. The 2nd 4th exhibited beardown growth, with location income expanding 29% year-over-year to 6,536 units. Additionally, we saw a 14% summation successful integrated income orders year-over-year, with gains crossed retail, builder/developer and our assemblage REIT partners. However, astatine the extremity of the quarter, hurricane impacts disrupted some orders and sales, affecting some manufacturing and retail locations owed to prolonged powerfulness outages and the impermanent suspension of argumentation penning by insurers. Despite these challenges, our team's bonzer efforts ensured that our operations suffered nary important damage.

The 2nd 4th saw a sequential alteration successful gross from the fiscal archetypal 4th down $12 million, portion our backlog grew $23 million, resulting successful a full backlog of $427 cardinal astatine the extremity of the quarter. The mean backlog pb clip remained dependable astatine 11 weeks, aligning with the extremity of the archetypal fiscal quarter. I'm pleased to denote that the acquisition of Regional Homes has continued and surpassed our expectations. We person achieved the precocious bounds of our synergy targets this 4th which marks a important milestone for us. Impressively, this accomplishment comes conscionable 1 twelvemonth pursuing the acquisition, a afloat twelvemonth up of projected schedule.