Earnings call transcript Q4 2023

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Operator

Good morning and welcome to Skyline Champion Corporation's Fourth Quarter and Full Year Fiscal 2023 Earnings Call. The company issued an earnings press release this morning. I would like to remind everyone that today's press release and statements made during this call include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.

These statements are subject to risks and uncertainties that could cause actual results to differ materially from the company's expectations and projections. Such risks and uncertainties include the factors set forth in the earnings release and in the company's filings with the Securities and Exchange Commission.

the be discuss performance. useful call, it measures, today's can believes in during company non-GAAP will which Additionally, evaluating its reconciliation can release. measures of in A earnings the be found these

call I like Champion's and Executive would Chief Mark Please ahead. to the President go now Officer. Yost, over turn Skyline to

Mark Yost

call, highlights about and so quarter joining balance provide Today, Laurie everyone. an Hough, and first good CFO. I'm full our this of pleased activities fourth year you for year. and the and then on update on thoughts by Thank far quarter to will call talk and briefly of I our earnings the about morning, be joined our in conclude fiscal XXXX EVP with

achieved to profitability to we XXXX I'm pleased in and our customers. with fiscal grow expanding our top the continue line and while expanding serve our capabilities capacity Champion as better results our Skyline of

our and core price the affordable innovative year offerings, performance initiatives. success Our the reflects during product positioning, of strategic points, our

the and place families home. provide to call we with XX,XXX customers were For a able to year,

years, delivered past two by XXX%. growing and adjusted we've by the more EBITDA over homes, than net Over sales XX,XXX XX%

shortages, the consumer to demand affordable in remains attainable healthy housing profitability end need growing driven and interest supply our to need of housing a deliver housing rate ability base and for business increase our solutions. higher were the results while continuing Our an pressures From increase standpoint, industry by higher at home invest output for levels to future buyers, side growth. as

housing has buying in investments The increased and enhancing current our environment awareness our of home experience solutions. the economic

other partially expansion X,XXX retail softness delivered from as distribution. and inventory as in destocking such offset was For channels developer home builder the tiny quarter, we by key homes

the resulting future delays production and experienced industry existing of the backlog placement inventory, orders of of in orders. causing finishing quarter, homes setting in the fourth the postponement in certain markets, and a In of

during monthly product fiscal shift remain normalize and volumes enhancing are our the focus to experience, and affordable bought. a interest continued product reflecting customers offering key on in steadfast lower of way rate We payments areas and current 'XX streamlining customer Margins maintain the levels, that of as transforming the to homes our mix look environment. built

course the backlog Over at normalized of Backlog finished destocking year, year inventory. and direct helped of production the normal to because financing the of $XXX home lead reverted and capabilities times. has our weeks their million seasonal buyer of increased to better customers. XX more and meet needs the customary backlog and the to benefits Normal sales levels our the pricing X channels in both lock of dealer

While to down, stores. year leads retailer prior retail good walk-in the credit was driving our the over quarter, XX% fourth quality in grew customers traffic from

We at also third activity increases sequential and quarter-over-quarter the plants versus in a our saw quarter. in strong increase orders substantial quoting plant

modular adoption During industry build-to-rent subdivision the home This blueprint serving for quarter the in forward housing. partnership provider space. an the sustainable by as our increased drives collaboration modular we leading announced industry inaugural with modular modular of a through building our

the a at community market. turnkey a speed for price developers point, modular construction and build-for-rent development today's full application, demonstrate providing a innovation in This in will solution benefits quality residential of

are of short-term process inventory. retail to for are destocking community while more and expected industry catch they retailers Moving on the in May, setting to a the order was set trending operations but units, first orders REITs the pausing given our the finishing up in quarter April Most is delays. activity than up sold beginning and existing through at outlook manufacturing as slower order are many

levels moderated developer expected third timing. quarters in reduced our and due the to plants line to builder our have staffing with has of orders Accordingly, these of incoming permitting orders. rates second shifted one Additionally, partners the timing and production

decline As digit we first revenue in a the range. quarter mid-single sequential in a anticipate result,

for affordable to our retail in channel stable North Indiana; confidence end REIT support combined plants consumer in Mid-term housing, outlook Florida; Pembroke, destocking strong up positive invest with demand our in ramping Carolina. near the continuing and and retail Decatur, Bartow, finalization of placements

starting capacity us pipeline needs will as builder help additional upcoming channel, the serve impacts which our Hurricane the rapidly. developer expanding Ian been has This the of from and sprout is to

journey We drive digital product in strides digital transparent and homebuilding to in simpler consumers. transformation made executing journey progress plan in We of have this personalizing development and continue XXXX. great and made home making a to more end the on our fiscal are

excellent our launching We home traction and tools experience. since have seen digital with configurator the consumer

have Our to we passed million a XXX,XXX partners. leads over grown social has onto a of media our and quarter retail followers vetted presence

lead to is platform month scale Our generation XX% from up in April and continues March. of sequentially the

digital integration have us The to the to production allow develop utilize capabilities in automation initial channel to strategy. a take to better continue the we us these will continue investment time and for tighter seen will it tighter partners. expand us gives to the While our integration both momentum and our allows our our customers, investments. consumer confidence refine with It future end our new

installation our delivery, will await equipment. and and automation optimization phase We the that the of next completed of have and design of order components

our material engineering do the so, advancing of drive. elements plant readiness and for the the handling and automation we that are changes process As will automation configuration we digitizing for

as but homebuyers investments not better efficiency our customers. more greater experience only channel us end digital for our the be drive consumer, in a operations long-term and make the to into will will engaged drive partner These we preferred

financials turn more the our in Laurie to quarterly to discuss over call detail. now will I

Laurie Hough

also fourth expectations. good reviewing quarter, results balance by our Mark, Thanks, everyone. will followed discuss begin flows. I and briefly financial our and the our for morning, a near-term by of discussion cash I'll sheet

was home in partially average XX% by price by XX% During year. the volume, compared million driven which an quarter, last decrease revenue factory-built to per increase same quarter-over-quarter, in sales to selling net housing fourth offset quarter $XXX the home. decreased a US decreased sales

home sold this X,XXX during from volume as quarter year, homes this acquisitions the compared supported during the quarter additional period. the resulting earlier We was well Pembroke, in our and North Carolina year the opening the capacity facility in X,XXX retail as US the to manufacturing US quarter. of by prior

volumes material, and due destocking. our were increased and US down to transportation demand sold year-over-year price schedules However, year-over-year where per certain due production average plants located price product inflation. to in inventory increases reduced selling X% labor mix to offset core home or by $XX,XXX to products markets retailer on at softened The

a the segment to per third quarter shift the the due reduction the selling due mix sequential environment, fiscal home in compared to in product XX% decrease we decreased revenue on to homes continue to core sold in in homes decline material price a XXXX. basis, fourth home. per On quarter US in of the decrease in and average of ASPs current sequentially was The factory-built in a X% and number a XX% a see our basis. a In decrease product smaller our a surcharges to

North the prior during earlier, in which well. of levels some utilization decrease the in utilization retailer was destocking our Capacity quarter. reduced the caused newly markets XX% resulting facility Carolina XX% As the quarter, to quarter by experienced capacity as negatively during demand to production, softening opened because to Pembroke, impacted compared mentioned

million driven by last $XX a Canadian in to in sold, XX% enacted to quarter homes previously XX% by and the compared price increases of by the per average to increased was decreased demand. driven to softening the year, response home. Canada by partially was an decline revenue average selling X% The caused in fourth $XXX,XXX home offset inflation. The price selling volume decline increase price number in in

contracted and XXX prior fourth basis sales million year points Consolidated offset versus as by in volume margins higher was selling gross to profit by average gross XX% decreased quarter $XXX partially lower the quarter prices. the

were mix less margins points gross XXX a primarily of and to XX.X% quarter homes. due shift smaller, the decrease segment the optioned housing down from in US basis sales volume year, segment net last fourth to Our

due plant earlier in expense lower period fourth $XX from year. and to and by SG&A closed quarter million additional from start-ups compensation offset incentive this reduced activity, in to the costs $XX same last decreased partially the year acquisitions SG&A million sales

quarter earnings and year. The last million diluted of net $X the income million EPS or share to in same per income leverage in volume. reduced of decreased $XX $X.XX sales or on per by fourth driven period XX% the decline to Net decrease diluted $XX compared for lower was during share the operating

million the effective $XX effective expense in tax operations. for an The and company's EBITDA rate decrease in state million for of $XXX XX.X% ago quarter lower results to period. the was to the was the tax versus compared primarily for quarter rate due rate tax foreign year was effective the The prior XX.X% of tax period. year

year profile years cash have XX.X% our to normalized customers, compared continuing our few our prior margin to XX.X% free generate to our also These business ability navigate enhance in EBITDA period. improvements service and The uncertainty to The improvements the of to last over periods structural leading our while the in economic increased flow. capabilities profitability. operational strengthened strong protect margin

landing with consumers we option maintain rate As we and XXXX move affordable payments. to product offset levels we face less near to interest monthly mix, reiterate fiscal homes expectations fiscal and of moving inflation smaller our to XXXX, as margins further headwinds into our with increases to more

three of Florida. manufacturing some continue to in new and we Indiana North from ramp facilities the margin addition, In Carolina, expect compression

We order recent are not have monitoring closely to several continue pull levers fixed volume if trend upward. and does spend identified its G&A

Xst, prior XX and no for XXXX. with million million of the of April XXXX, long-term maturities to year million We $XX compared of million equivalents for quarter we flows cash cash of operating period. $XXX $XX and generated the As borrowings had cash until

quarter. operating strategic net focused is opportunities income, and in operational reinvest liquidity utilize business our position decrease to capital long-term in by our support partially decrease versus initiatives plan executing working due and the primarily prior remain The year offset in favorable for that We cash to net favorable fourth growth. on given flows the to on our cash changes the

now call some I'll Mark closing the for turn remarks. back to

Mark Yost

Laurie. Thanks,

rebalancing positioned we core managed outperform to is affordable the due our initiatives. our strategic channels, and our positioning well of to we As believe Champion price broader Skyline market through housing the points,

to well demand REITs and our changes community retail demographics. partners for to channel builder the supported adapt opportunities, by with is outlook the consumer as helping manufactured The developer in growth, as rent

addition, and drive housing need In our to more continues built elevated cost housing site we buyers for the homes. traditional grow, the believe to that of will affordable

the open to Before take take and strong I care focus, our a we consistently want our work for ability hard performance of lines our as thank result customers. team to our is to a Skyline Champion entire of Q&A, moment

now you for the open operator, may that lines Q&A. with And

Operator

We'll you. Thank now a you. [Operator session. Instructions] question-and-answer conducting be Thank

with Palm your Capital. Greg Our of Please proceed Craig-Hallum with from first question comes the line questions.

Greg Palm

impact, good seeing of off start the outlook. developer setting maybe the the Hey, here. that's everyone. pausing guess taking ago, maybe you XXX you here. Thanks its months some top guess last maybe builder it's want a questions I Mark, biggest for order a reasons few whether current I what's why with I builder lot you're referenced win shifting whether quarter having I morning, can a to the rattled to of bit that And year? communities relative little of the issues, that crews, softness with confirm know chain the the channel you was that the supply rate on and

Mark Yost

I'll Yes. those. Thanks, unpack Greg.

who's answer first, got the last one the to XXX the builder timing. one think I a permit top is

is builder that or to August, period orders year time kind September just moving due timing. he's this their permitting of moving of to So

So break plan. news of ahead is other good they're on ground starting to that's subdivisions timing shift. the The actually

long-term builder. XXX there's win I with kind that So delay, top of but a think short-term

country, As now, and as order good Across has say finished environment, lot the far crews. the order of we've hands or community's main a is the set that inventory I'd finish in in of to. are kind the been got right getting electricity actually delay and environment the lately. set provided

been very strong. So the orders community have

first same their delivered. finished at think from demand most of dealing have -- set, strong and look community new of period it, has I we're been our hearing and I quarter I'll very, very, they're but think in UMH calendar the icy partners, and And did overall, orders quarter year. you If a the Sun, home call wet the getting very and with we first

regions. our customers behind, And like think cyclone, know with timing the purchases crews California months by the just of especially the put given some I flooding due of in the of their so to getting to four in of I bomb things places out some set some that delayed three

everything of The the happening. So finish behind inventory set I'd primary is say us. is and driver retail destocking

trying right and community destocking kind finished. they're we're a to things And through of wave as now so just get going set of

Greg Palm

Got it.

just give over of more to, how Just quantify, month be helpful. helpful. bit sense That's two? at to any have from of you of months a know, trended Can little would retail maybe can some relative are order Okay. relative kind you they least us And a sense give don't last us three I rates or the ago? year ago where color

Mark Yost

Yes.

few things versus our quoting a and up calendar Greg. is, XX% year-to-date XXXX. there, think One is versus I think, year activity, up I this XX% prior

of quote and activity So we're seeing high demand. very levels

year-to-date strengthening fiscal front, with April the 'XX. and in fiscal of the this since the time, orders On from in up over quarter they from our May fiscal And 'XX were were. are of they in quarter and XX% order where year, where doubled fourth that actually about orders second third

picking we've it's I coming activity community And retail that's mainly because seen So pretty think from definitely channel meaningful has up the consistently. as orders paused.

strong orders the good that many very pickup of communities in given in destocking So period. the are

As far go sorry, Greg. as, on, I'm

Greg Palm

those referenced total those sorry, you retail numbers only? Well, or those were order were

Mark Yost

total were orders. those No,

Greg Palm

you I'll finish And let Perfect. Okay. up.

one I to more going were think you say thing.

Mark Yost

retail And has had demand. stat data resilient. at think asked and you placement look you retail I very data, if about retail surveys been Yes, placement

demand So been I quite has activity end retail actually the resilient for and think consumer the year-over-year. retail

traction de-stocking. to we've from that good So seen pointing steady that

Greg Palm

Perfect. queue. hop the right. back I'll in Okay. Thanks. All

Mark Yost

Thanks, Greg.

Operator

with line proceed your of The Moore CJS question with is next from Please questions. Securities. the Daniel

Daniel Moore

sequentially? where Thanks demand normal shipments that seeing Maybe you to the bit the the color. through do quarter. based for of how that about What What end you is talk Laurie. expectations of the fiscal And your expect production the Thanks. through summer? beyond kind near on be that new fiscal kind with can Thank QX production Or the into and outlook? mid-single of down you little cadence see you, a Mark to that quarter cadence community term production expect digits for ramping of backlog QX? level and you waiting do returns the

Mark Yost

you. Dan. Thank Yes,

since soft I soft think part pick was community production demand demand little of up then April. started to or in It the of a was bit.

seeing starting across it's but kind of certain when waiting of some set we're happen reorder. that it, for in finalize think communities board. I moderating in get inventory the reordering that can to place to for consistent the pockets, We're not

think of I'd up. is effect in call pick to normal the resume cadence in the will certain country, to that seeing for say weather of it was So would is the kind start communities country. to, ordering But where it, regions pause back August expect especially we're of heaviest, I'll but I July, most start I when

can that ahead As efficiently margins. the produce production production want period. far smooth we'll as aggressive continue ramp, up Overall, just production to in don't hold get we and out I too ramp so to we of May, We kind of want think, June ourselves. to and

down a too create that's the inefficiencies hamper trying would production and path versus draw schedule, much think more margin. to backlog optimal which in I

balancing So it's margin act and efficiency. and volume, really a speed between

Daniel Moore

about on much And about or sort for outlook do know relatively you down, based you but backlogs could less so maybe expect, think that sequentially flattish be QX? exiting as of we QX

Mark Yost

expect I flattish. would Yes.

Daniel Moore

Yes.

on granularity. Appreciate Okay. more Any color there margin. gross the Laurie Perfect.

sort as again of referenced fiscal a I 'XX. fiscal 'XX think for you guidepost

the kind from about You fiscal levels see of Or thinking more a here? that of XX%, XX% should down be quarters a bit toward QX we that more is a next little gradual few range? for ramp

Laurie Hough

next the in of gradual end more ramp couple to see Yes, the margins than quarters, of through going come I Dan, down in, year. the a those think we're

seeing which smaller, impact margins. are option to shift to going less a We definitely is homes,

to I the in to see So do second expect those a quarter levels. decrease margins in

Daniel Moore

what's see terms mix? Got of can basis per Thanks. maybe on ASPs. of home it. kind terms we left a unpack of trend That's of like It continue question mix helpful. All from roll you right. to bit in to a we might in decline what versus and type And then on back little off similar sounds surcharges given

Laurie Hough

Yes.

of I the think surcharges most have adjusted been for. material

mix just do expect sequentially. So to more this see of ASP really, see ASP. that, point, impacting we'll shifts at we're going of a decrease I because in

Daniel Moore

maybe and capital there terms Last allocation? to back. and significant buybacks any balance revisiting another for holding about jump talked the sort the reinvestment me in All adding hour valuation. given obviously, and right. and potential for and quiver a cash near Is of as compelling I'll But pause of in growing Thanks. continued M&A pretty thought the term opportunities,

Laurie Hough

a in today, table. have don't obviously it's off plan but buyback place we Dan, the number a

to continuing buying as upgrades customer the are We technology other our enterprise-wide initiatives, well and enhancing experience, as M&A. strategic on focus automation production

Operator

Thank you.

next your proceed with from Our question comes Bouley of Matthew Barclays. Please questions. with line the

Matthew Bouley

for Hey, taking good morning, the everyone. question. Thanks

on Just the a question orders revenues. versus

I mentioned. year-to-date, But we shipment Thank were orders I we of heard of year-over-year kind you. that part Or just than these said you you Laurie know think QX. So revenues give sort how year-over-year about that trends ex-FEMA, you is growth take, the in if but order of XX%, down obviously, or think you're into correctly, that as I kind guiding then I quarter? given up think, greater that, ASP should return first converting shipments? to of kind of do beyond mean XX% could

Mark Yost

Matt. Yes. Thanks,

in last think the quarter. year, million of that did first quarter we I our think in have first FEMA -- I $XX

that's have So part to in think, adjust revenue of you FEMA the I quarter. that, the

orders quarter. year-to-date, our from fourth sequentially that's as far XX%, up As being

to and balance can So our of in so is want we way. mix is good, workforce the of optimal an want to orders in, production kind what sure the out as make to we to effectively margins and lines come make maintain product do smooth we sure

think we're in So up orders quarter, to going pipeline has orders been picking I fill this steadily. see

of As into to have building backlog through up will third we the, production bit lag as sure we little production a go of we that make I'll sure behind a quarter to a make kind schedule through have ramp kind going ramps, of forward. it, backlog second and kind that we call good

Matthew Bouley

it. Got

Mark, that the actually thanks sequentially. Yeah, orders for were thanks Okay. clarification for that up and

shipment that volumes margins like-for-like So like you achieve that on fiscal can would you that volumes comment? comment that, do shifting hold And you say that higher are be of is the margins to are able Are something even below How Thank 'XX margin just when the and gross actually recover the to side guess 'XX? to volumes be I kind if would margin or if to about levels. how actually of fiscal able fiscal interplaying you. that to your than 'XX? that into think

Laurie Hough

margins. declining think our can product fiscal those of I because Matt, Yes. even do that structural to with 'XX changes margins we our offerings, maintain

Matthew Bouley

it. Got

sort around demand? might then hearing And outlook the that monetize their what one you're the a the kind last But Genesis of guys know builders Genesis broadly look market me lending quicker got are just from developer builder side, just there. mentioned given need of hearing around sort the on of you channel for be delay land the you Okay. more there as on from for everything you've and to in smaller the macro one going in with side. this back I the and you

Mark Yost

Yes.

from the in developer of I pickup doubling outshines that sequentially demand, Genesis of are the say, I the would I that good would in actually, quarter mind. the all things. But actually, and my Matt, fourth activity think orders then say

here and seeds terms pipeline. kind XX in bit germinate the escalated builder have we've kind We days to been start of of planting pipeline developer of in the Genesis of our has the last rapidly that little a seen

will for to of pipeline take get and So a time it little orders. them through the into bit

exciting. time So one different pipeline is it's seeing I -- it's lead partners. developer actually actually in maybe a where very the our long-term real, and process the developer of of builder community for is think traction our retail real biggest now, than which we're builders. The matured to very builder partners But

Matthew Bouley

Well, you, Thanks, it. thank Good Mark. luck Laurie. Got guys.

Operator

the your proceed Please with from line Phil of next Our question Ng with is Jefferies. questions.

Philip Ng

large you're on I community handholding we up guys. in more for XQ? any some the trends. appreciate customers timing-related your in sales Hey, to the shape changes sequentially But in year of XQ should on Mark, builder. be I having that color since expect mean, the sales orders

Mark Yost

Definitely. Yes, that. would I expect Yes.

good think I traction, we're seeing Phil.

I has lead which is call, the up percent. our our activity, XX-ish the for think I the been that another driver On XX%. is up over But days, activity in us last days mentioned XX also XX lead last

So increase. we're seeing

indicator I I an probably, a that's forward lead going months traction production. to it that know, so leading that. of takes we're don't into into seeing But to, translate And a kind order few about for good on think

centers we've digital that started customers launched translate our lead to partners retail that with the the capability the will And in and our traction into really benefit that down so has retail getting orders.

Philip Ng

Okay.

Mark, to certainly momentum So build like in walk that we you're headwinds to that half. should the takeaway we these normalizing, XQ, expect some and away? should XQ Is back of building XQ, off going the some sounds it in of noise

Mark Yost

Yes.

Philip Ng

Super. that to builders kind any demand? partner something to mortgage? we the color rate the channel down loans around, about Rates up that you're dynamic? buying with Okay. versus then been moving of XX-year mortgages. should Is looking stimulate have spread think fixed How further all obviously the lender site for the are on And

Mark Yost

to terms we I help now, channel think any partners and our mean for we're rates partners working retail way with can. traditional point always end are I a basis opportunities spread looking our our of at in mortgages. about consumer XXX financing in Right

financial that out the We're cash I in there. terms good capability are think we're more good traction seeing and activity. buyers seeing of

to -- say point products point needs. have would meets way a It's And their in base. payment the points customer payment making factor right really and financing and repositioning think is today. sure the meet really huge the our about really a I price price affordable not that the I for limiting that's we product So

Philip Ng

from called margin markets And one. just you of different mindful an your from mix. that a from having a demand terms should margin the any different one standpoint? dynamics last ASP But customers, via impact out be given Laurie, we and impact in standpoint, you. Got end

Laurie Hough

those higher base more actions margins house. consumer the and features of about adds it's that come have the tendency So price than a number the to the a of at because

So it's or the really by more not options. really channels and vary of house that a margin type, the features mix but

Philip Ng

Okay. Appreciate all the color.

Operator

with next from of question is Our questions. Markets.Please proceed Capital line with your the RBC Dahl Mike

Christopher Kalata

Hi. Chris This Kalata is for actually Mike. Thanks questions. for taking our

to Could to back with permitting on the more going and that specific has Just builder it driving delay. what's you the color provide product? if do anything Genesis

Mark Yost

things No, clubhouse, it to It's to Genesis actually honest, nothing has subdivision. for actually whatsoever. -- all with the the be related the of to do product a

So for clubhouse be the until Shelter to get Hurricane needs they -- the development.

you not in you're to allowed Shelter So in have Hurricane until put place. homes

the so the what's causing Hurricane timing approval of And delay. Shelter for the and that is

whatsoever. to So product Genesis with the has do nothing it's really

Christopher Kalata

the for And What year-over-year split? quarter, mid-digit adjusting $XX for for us XX% the the XX%, that. I for there? like so then it, that. sales mix call for drivers first help year-on-year. down Appreciate guide, guide and it. implies said the look FEMA declines down out then you sequential Could volume kind you of flesh million price And is Got think

Laurie Hough

going probably it's to be to probably Year-over-year, hold. equally. volume and price, It's be going

Christopher Kalata

I sneak one Got it. could And in. last just if one

or quarter, in step-down sense but expect said a in of magnitude first you you In next the I from of PAT, terms is there quarter the could for more terms last you normalization some give of meaningful two us quarter? margin this think gross

Laurie Hough

earlier not product some shift the options that sequentially you compression of going the see numbers, to Yes, futures. in change fewer to Okay. margin and give but mix specific definitely mentioned because I we're going with

Christopher Kalata

Appreciate the Understood. color. all

Mark Yost

Thank you.

Operator

question proceed next questions. from your of Wedbush with the Securities. with line comes The McCanless Jay Please

Jay McCanless

Good morning, everyone.

about gross assuming full my correct? about full talking Laurie, when line talking 'XX versus year question, in you're fiscal 'XX, year, So first margin of fiscal you're I'm

Laurie Hough

Yes.

Jay McCanless

Okay.

because a margin in Just the quarterly fiscal variability 'XX. of there's gross lot

clarify to that. want I So

plants we Maybe dollars, expect SG&A SG&A maybe The here? second to -- on should question help for that or should plants or that? the in is what baseline on from expect dollars, higher likely new process, three we move given quarterly some

Laurie Hough

the SG&A revenue. to flat, XX% component going expect of would with Normally, fixed obviously, SG&A I the is fluctuate, but remain variable. is to component to variable relatively XX%

Jay McCanless

could Okay. with what single how the And multi-section mix prior year? in homes? section And you talk you to in did or either your what that about versus XQ 'XX sold compare backlog then in

Mark Yost

I are don't think where break more meaningful single the way. I really It greatly that Jay. the regions hasn't us We're it was generally think prevalent on developer we'd on out, think double builder seeing certain depends don't is shift. too The sections. based for it moved I don't more geography. affordability. product a either sections But needle

Jay McCanless

same whether being you're guess, of how type away question to would I level they're operating level were had, profitability. or is multi-section profitability last And section you you single same the to the of far respond -- able how then And manufacturing? do the your being operating to at now from think regardless that that? achieving Okay. what stable of productivity of Skyline have homes, their one just manufacturing I where of they competitors recently on conference call discussed

Mark Yost

We got there several years ago.

Jay McCanless

guess, going you thinking case, why, are and So if this us mix that to Can that's through walk then margin margin you I shift? come with is down that?

Laurie Hough

more to features do has Jay. and really with options, the It

into regardless homes dollars through of the based the for on takes model base go it. the we're the to of floor the because The building, additional materials price usually that base at plant. the option get plant the what a are the the margin are of through So time higher and it margins labor

take see target, buyer in or to monthly monthly target the decides payment reach house. price less So the options going options features out to as and their to we're

Jay McCanless

That's color. Appreciate great you. it. Okay. Thank

Operator

line Our Daniel with is of CJS Please from questions. next question proceed with Moore your the Securities.

Daniel Moore

again. Thanks,

two housekeeping or items. more quick one Just

fiscal growing on rates Now your that on Thanks. 'XX. income, least thinking and still earning range the some at for of we're balances cash XX%, current taxes that a kind million we're quarter XX% actually in based interest $X expectation, interest range reasonable in a

Laurie Hough

Yes. Dan. Both of those true, are

Daniel Moore

Okay. Thank you.

Operator

of question is the with proceed with Greg Please line questions. next Craig-Hallum. Palm your The from

Greg Palm

I for guess of taking some follow-ups. back Yes, just on of the to thanks going year. remainder the commentary the the

about help Just with terms out given I'm is revenues little down a QX. how and if can the that just we're But bit suggest different fiscal us QX wondering of the come thinking just talking normal fiscal remainder seasonality maybe about the in in you're cadence you timing. of everything would year, usually

quarterly on cadence little So could you you're about of clarity the how provide maybe thinking a the basis. on more year a bit entire

Mark Yost

think fairly generally, I timing no, in quarter would a destocking little fourth us. weather I dependent should good expect in QX behind or of QX, -- see and QX. a mean I calendar on we're next But that first seeing Greg, year. I Obviously, be pickups that think first be demand, would in Yes. would we quarter

up and will retail speaking. those And so that and we community starts the of as and generally then picks on as that progress pick think both chiming once in quarter fourth in, see I continued third up

Greg Palm

the had of should builder think, frame. start mean you orders mentioned that Does that in the I seeing revenues developer, revenue the recognized And August, that with QX? in time fiscal timing the September you associated that

Mark Yost

shipments. depending the Maybe Yes. Greg, of QX, timing on

it we recognize So ships. don't revenue until

in receive orders, QX. cycle we the get could into flow production there, quickly on once through they the how it depending So over

Greg Palm

builder sense. Makes mean, I opportunity. more, developer speaking, on just bit Okay. And broadly little a then the

are what customer about for projects? a product. terms out little about bit increased and maybe the details talked new of but can talked give plays kind of coming you you But the you years? on sort pipeline, more you're that us exactly of what mean, I seeing robust how some in new over of seeing demand, that Genesis You a opportunity and demand

Mark Yost

Yes. out well the over coming that I very think I pipeline years. mean plays

to a not it's it our conjunction going that I And bring developers. conjunction tools Genesis and builder how I'm to what can we in their started comfortable in and people to is, days, I say, as the off. the solutions solution that's with of other solves getting things and with think builder past with think but XX it's disclose would will exactly really take over I maturing. pipeline I say And been challenges

the configure subdivision expand to we've and capabilities configurator that developers. a we home to and those place the home personalize launch design tools people allowing builder of done as roll and their and kind of in start With out to

they're aid the solutions sales doing the but think in products of that this. only them the we offer, just can the of I benefits process digital seeing not

driving the XXX or our has configuring are that to So we're unique fact leads along XXX,XXX homes. home with users that now our we configurator partners,

labor challenges, those so using their of to front-end challenges only about builders and I kind solutions arm sales think well. because solve think not their And start as opportunities can but get we them help numbers skilled our I excited

it's think up picked I greatly. So

So expect I in a upcoming be and that of off the to revenue. take our overall portion significant years

Greg Palm

Thanks. luck. of Best Great. Okay.

Operator

we've reached question-and-answer the At end our of this time, session.

Now the Mark Yost I'll for closing to hand remarks. floor back

Mark Yost

day. have for appreciate much participating Thank your progress you on the the call. you great in look Thank end quarter. our a very We We updating today's upcoming at you continued interest. of forward time and and to our

Operator

conference. today's conclude will This

for disconnect may Thank you your You your at participation. this lines time.

Skyline Champion (SKY) 30 May 232023 Q4 Earnings call transcript