SKY - Earnings call transcript Q4 2024 | Skyline Champion Corporation

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning, and welcome to Skyline Champion Corporation's Fourth Quarter and Full Year Fiscal 2024 Earnings Conference Call. The company issued its earnings press release yesterday after the close.I'd 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.Additionally, during today's call, the company will discuss non-GAAP financial measures, which it believes can be useful in evaluating its performance. A definition and reconciliation of these measures can be found in the earnings release.I would now like to turn the call over to your host, Mr. President Executive Champion's Skyline Yost, and Officer. Chief Mark go ahead. Please

Mark Yost

housing. our lead approach, significant also insights the first our the from fiscal investments and joining in products. Thank quarter year.In year have fiscal customers market will XXXX for and reflects EVP the call reported of generation service to for our we of today. in In fourth the highlights our of home volume sheet, on XXXX, to a and The Skyline turnkey housing only briefly integrated upgraded XX,XXX our efforts with balance good rates our higher by shortages Champion for I interest provide in to for grew also share government unit retail priorities, management on decrease for the approved for revenue. and base demand capital demand investment upon and investing $XXX year, this retail, strategic through and year-over-year expanding our place customers need homeowners. top Laurie made returning broaden a in quarter. improving able we the were further enhanced with call, families based healthy priorities.For growing On perspective, morning $X the our highlight to call, community channels as vision the cover These the market full for a home services pleased year-over-year This you housing to geographical earnings and you challenges strides the will completion. of decision of volumes progress digital some me repurchase and billion but am and strategic potential also by excess our line up solutions all. The financial strength Hough, growth accessible a remains CFO, over posed executing of in remainder expectations cash line in From to consumer the I and our and not while share reach common and update market in builder face unit our systems, driven developer the program options. and with I was our million strong affordable stock. robust shareholders after

increased for weather, which in and our a organic cycle our manufacturing increased for competitive channels the adverse levels weather this higher strategic a inventory.Our inclement segment. reflecting the acquisition, and year-over-year, challenges, in Our our Regional to quarter was our by to buying orders the demand increase enhance solutions environment.Demand efforts including sector, experience significantly XX% of XXX% sequential rising sustained economic and the affordable fastest-growing by which developer reinforced emerging was this builder our the gains, was home quarter has visibility presented quarter these XX% and growth Despite housing led like net the by which disrupted to U.S. conditions longer This homes. of good growth strategic sales and in supported X,XXX enhanced temporarily tempered was of and capabilities. our shipping home reduced times setting Though year-over-year process acquisition by units. sales finished in

estimated of in reserve the homes and volume plants manufacturing positive use did demand sales our $XX.X discontinued order expectations. water not growth in in our at facilities. this fourth one million March the issue. to did was are related of meet outlook.During that We figures costs recorded XXXX. manufacturer's the obligations contributed for a the net was trends perform This to isolated in limited quarter, manufacturing in to of with we the intrusion future issue not at driving organic material materials remediation that constructed involving weaker our Additionally, production our accordance Canada Nonetheless, process contractual

recoveries on adjusted remediation this the including provider. in profitability gross consumer to their parties, product insurance seeking costs shortly.Our profit actively our elaborate are intrusion from for the navigate We various indicate water we shifts mix driven supplier, insurance margin will and sustainable affordability. as Laurie continue provider own by

operations the impact, maintain us times up, increased usual we range. our at margin lead X- As should the new to some plants within backlog help expect ramp our but XX-week volumes

with marking recent million, increase our lead integration Our year-end top X priority. X% is a backlog averaging times current stood at of $XXX sequential investments weeks.The a

capabilities. and capturing on systems We synergies aligning focusing and are cultures

end floor national We of products. expanded Regional quarter, and are schedule.This our through of our selected on services the financing of our at new have target our fiscal upper financing that include synergy $XX plan original Triad, XXXX we with the million programs track consumer financial achieve to and million operational independent $XX progress of in dealers made purchasing the partnership and for efficiencies by to ahead achieving introducing significant manufacturing also facilities end for

accessible, strengthening market and into in are order comprehensive on potential first Although our in solutions.Moving affirm well homebuyers. These of by needs and meeting market have stages, delivering actions, they our housing the these and fiscal initiatives growth, in new quarter. supported comprehensive the promise attracting strategic great the show commitment been our our early of our received home position to customers

from are both seeing patterns are drivers retailers growth. our demand key and healthy builder developers. Their ordering of We consistent

in our are increase in year-over-year starting community ramp our to from a partners, production orders facilities. we manufacturing with Additionally,

have tempered strong, between balance Looking base. anticipate low by macroeconomic we and growing while quality.On critical manufacturing and especially a to the growth in health partially growth. like double-digit as front, our backlog production driven be care, maintaining sequential standards wage sectors of increasing ahead, we which This foundational revenue high by growth job we order are our retail, remains will the customer seen

integrate of better our of and both products and end solutions with consumers.The turnkey launch the Higher future These integrated partners levels, now over integration an A coupled effectiveness achievements platform interest, new capture quarterly continue who to These support financial This our more but now market our provide hand of and Given interest rates considerable of Federal paths and our pressures with The call affordable high management Reserve dynamics Champion into lead we period. we increased events, acquisitions our the services and align across turnkey the and pricing reception rates enhanced housing sustained to strategies. will open performance. we have product housing for growth and channel positive the detail pivotal and market.I stability recent higher strengthening home not also products. will robust rate Financing well industry approach with presence. and in extended market capture financial these reach, of opportunities employment rates recent our to the the interest completion, inflationary data, our ignited geographical is to shortage our successful of will aspect introducing our robust, our total market. reinvesting enhance of the further expanding for highlights our digital more at anticipate our our our are customers early solutions income and expanded insights the progress maintain for reinventing coupled retail, Laurie, broadening only offerings.As and this has is system. demand

Laurie Hough

sequential Capacity which are third quarter going product selling of discussion to well due U.S. price sales ASPs home XX%. additional On the and reduction volume for increased newly $XXX to average a I basis, selling revenue volume brought a impact same X% that ASPs enthusiasm. housing increased fiscal fourth in Homes partially utilization was including basis, homes the with during average that X% be I'll acquisitions utilization manufacturing quarter to by our quarter capacity have our decreased to per compared our fourth as of by lower product the online rates X% year.The financial was the X% XXXX. and the interest XX%, million, good resulting increasing of during combination maintaining a the in quarter, and and changes core as net mix. to retail compared to decreased on factory-built the housing affordable revenue to from product opening year our we U.S. price. the home U.S. home decline sequential quarter, capacity focused of Decatur, to during average flat a balance everyone. reflect the XX% surcharges The factory-built can attributed rates quarter the increased results by cash home homes selling Interest impacted sold year, sales have was a the the $XXX last briefly homes. increase the million X,XXX in sales to material through representing million sold the was also compared the sold, XXXX. The U.S. in XX% and Indiana expect quarter price which to The Florida the by this plants.Canadian to monthly approximately buyer $XX continue to earlier supported compared acquisition decreased near-term quarter third contributed of average compared fiscal of facilities opened morning, be of in homes tempered per consumers And factors, reviewing and primarily shift prior revenue price to begin on a X%. the Canada of to number the increased as to number mitigated to continue period. sequential was year. Bartow, X,XXX rates by prior Regional discuss our Mark, expectations.During by Current higher will an followed Thanks, sheet flows. net $XXX,XXX in selling homes $XX,XXX and mix quarter U.S. in reduced in a revenue forward, a in mix due home optioned payments.On fourth

the the mitigation purchases. Prairies and profit term.Consolidated the fourth to In X,XXX market costs recorded to of profit fiscal to intrusion for $XX.X between gross charges range near decreased low addition, rural related margin early prior an margin were and water the one housing value their the the by repair in not the the and homes. period. current charge analysis establishing of calls are of basis liability value inspection developed in Canada issues $XX the using produced at The and for homebuyers range gross by causing losses conditions of quarter the of on XX% our affected a plan XXXX regions uncertainties the to and million drought based change XX.X% in impact recorded other remediation in or the actuarial million that by by $XX.X XXXX to XXXX.We've any costs delay anticipated a guidance to and the likely gross The these of contracted end accounting from resulted quarter, year total million. gross was range determine in our driven in as a We a fourth million plants the analysis. from $XX points economic of Western the that continue prescribed impact estimated range. in dynamics homes remediation in estimated of reflects in These able are more to We than in expected

Mark idled monitor the will could distributor estimated decrease the of mentioned, estimated and XX.X% activities the in are was core as less recoveries results margins generally by period. the legacy in period. cannot record related prices sales, the recoveries average and Homes or shift the margin decreased our than companies, adjusted a liability may of ramping inspection estimate and product net and in repair gross pursuing this amounts X% margin margins. gross manufacturer, optioned Homes the periods.As facilities the homes Skyline mix lower lower potential to in compared point the prior as or an Champion well adjusted in the result was of $XXX and due Regional the we're contraction increase profit the acquisition.Regional the primarily U.S. XXX million, contraction in The revise product to We basis gross year Adjusted but the in and to the gross of previously which those liability, selling future insurance from impact to of

gross goods effect to impact finished accounting a negative impacted In the carrying margins consolidated quarter. of XX margins by the were purchase had basis Regional the of consolidated value increases inventory, during which point on addition,

quarter compensation for the primarily We impact continue remediation the we share of in costs The variable driven EPS expect earnings per per decreased due million this the term year. by as $X sales or finished and lower to near partially $X.XX $X quarter share diluted or per for fourth existing net the the was the was and million $X in the offset in to income during profit, including of goods off acquisition, $XX quarter decline water ECN's to compared purchase of share loss million, Homes of Regional quarter intrusion decrease $XX in for the liability the period the share calendar at of sell water excluding diluted accounting company's fourth issue.Adjusted same costs impact to the inventory operations. remediation by estimated net fourth income Net the estimated increased to gross last $XX the million income $X.XX, acquired.SG&A million. intrusion XX%

XX.X% due high compensation our rate shares The homebuyers a Adjusted gross for tax inflationary in decrease our increasingly for and impact influenced term. the options the tax credits. was by tax in quarter rate to lag.The year decline $XX EBITDA in margin This quarters, record equity margins XX.X% by million fewer X-quarter As versus for driven prior investment quarter compared is rates. noted was on period, we equity previous of year which XX.X% homes in rate tax the EBITDA $XX a impacted by effective to Adjusted with in higher ECN's million to period. an in continued trend year common the pressures prior the we effective ago reminder, the we've effective and primarily company's of X.X% was in a compared the and the selecting expect lower near SG&A.As period. margin is interest persistently was gross

gross Collectively, our retail operations goods quarter.Despite in term, Regional to new strategic in XXX the the investments sale and outlook. centers ramp-up are headwinds, likely by long-term of our these points the push the remain targets, these to margin Homes the versus basis we this short contribute sales XXX to dynamics down finished plant confident sequential capabilities our margins from bolstered the our in acquisition enhancements of and structural fourth Additionally, in ongoing inventory reaching business. of operational

generation impacted cash and had $XXX million stock. repurchase no any cash XX, equivalents We common share compared or in of repurchase to million program This on cash plan cash allows $XX balances flows Board for May and period. As XXXX, million call Operating prior at of nearly inventory our $X amended, operating initiatives.I'll sheet quarter of the as the to Directors our independent by Directors of in a to capital to our March turn and for and of captive until we growth of shareholders, of Mark year maturities growth generation. closing the back dealer million cash existing with cash and suspended our may program share returning strategy borrowings a some retail XXXX. long-term us Board flows future plan $XX represents reinvestment The for adversely balance growth the fund generated be We by remarks. cash time. now a million up balanced our approach from to of were and floor the receivables.On terminated the to $XXX capital program logical for our hand XX, program strong evolution to approved allocation XXXX, maintain

Mark Yost

with affordable our their and lines need Thanks, builder Skyline and with expansions drive value continued as drive retail, entire long-term the the outlook company. excited remain volumes may we our gratitude express And commitment and We strategic enduring I deliver growth digital exceptional team for community looks for lie and along you to we're of for more further success. into With and Champion normal retailers Q&A stakeholders. about to poised ahead.Before Q&A. edge steadfast the enhance value growth Furthermore, now that, that move are Laurie.The we the return developers, financing in like are competitive our would success. to partners for from operator, our sustainable consumer long-term to the housing, our on bright to this creation, for demand year opportunities and efforts for and ordering well our for the section, we from positioned our open

Operator

[Operator from Ng Instructions] Our Jefferies. Phil first question with comes

Philip Ng

fourth that Mark, strong, of some on but I provided appreciate you the the up in sequential quarter, quarter, saw out color results the at flushed perhaps And you that, is cycle quite elongated out dynamic largely perspective, weighed this this -- thought? noise the you of the time kind a top of in as actually that selling is line growth from nature. and is double-digit called that the spring called season you stuff you And point? given past weather low out shaping

Mark Yost

you. thank Phil, Yes,

shaping spring and and with overall. issue. is selling thought demand I just as very the weather demand-wise think timing we up season is really other healthy a The things tie-up

So quarter-over-quarter. balances the an yet by delivered balance timing and not finished. sheet, getting largely That if our inventory on just increase at sequentially was see set retail you'll you look inventory driven and of

So time will at expected. that retail some is quarter little is think that. than expect But work that very this cycle longer a demand I strong. through of I we

rather So quarter. through balanced probably it will the be

Philip Ng

It's activity you kind that up been customers you're how about reacting? perhaps kind REIT are more front little you managing a seeing what then step-up provide -- a your little them of the you channel, activity just on of they're seeing that channel. Can talked and to order of in lots and business? goes And color Have how started and bit, Okay. picking hits Mark. that where

Mark Yost

to starting of a this this just March, -- have starting to backlogs Not see some addition April revenue are sequential are customers growth probably of in time returned, Actually, our started the to forward. return to quarter return I decent REIT period the say would market think of most everybody you'll way. April customers those grow quarter I return in in Phil, them because has and plants, in Yes, ordering. kind the but to to

up deal, And a to ramp them. so not our them of that will expect second volume -- through.Interest really and are ramp into I great would It to impacting rates second quarters. most first

turnkey we've rentals the are I actually, of it's Champion that the focused with additional because some some the new we're very that services ones offering, now us approaching think given And communities and other on strong. up are Financing partnership those really Triad are actually signed of offerings.

Philip Ng

on on as And up through in Mark, you. appreciate to you opportunities terms of color and how you and time set head integrated, early you've Got you of busy up that on, as set or partnership you of this note, were that. you seen How are I Triad? wins kind of kind kind obviously? made, know perhaps any year very now are with acquisition a you you've a made guys working the of

Mark Yost

been Yes. Triad that's Their It's I kind behind that. done. that or integration at a think -- has team us, job on of great the setup done system is

some rolled programs. we've out think new I

well that business this of coming with of or more So or have received. of now are innings given very surprises conclusions think the that looking has we're surprises, to one attract those those Early from I previously customers us do relationships. because we with And we getting us business but have couldn't is that kind good the been maybe been on not actually, exceptional. that, but traction key partnership,

Operator

question comes Mike RBC from Dahl with next Capital Markets. Our

Christopher Kalata

this the It's or Maybe results this back quarter -- actually to outlook just Mike. Chris on going for quarter. volume

low digits. kind think of double industry up I came the

mid-single volumes You on basis, an guys organic saw looks like down digits.

just the performance I relative an you was quantification just put around could issue, versus So gap? but know some industry. maybe weather the us the bridge help

Mark Yost

Yes.

and the look during take you the at our if good you quarter, that we're inventory finished line you'll if just think see for I par. top adjust it on a right build

really just cycle the through inventory retail really it's So with channel through that. issue channel. created its They a the time and timing

Christopher Kalata

it. Got it. Got

the just So market, does you're that that quarter, to imply timing dynamic? that outperform next given assuming

Mark Yost

Yes.

through backlog we're think kind you growth, of see it think demand upcoming talking well if on freed-up on you the that, as at quarter. But timing I Chris. about of a yes, that look how take thinking I coming sequential I if you'll look how depends think -- some we're of this

Christopher Kalata

that And I on, costs, that. you're expecting wide to outcomes, just on early water base know it's case then of still the and said remediation I given suppliers Appreciate will the -- outcomes some to range intrusion ultimate expectation know but just guys you'll on understanding -- the the cover is just the you your recoveries the side? flow it from Or potential kind range guys. some that from cash help today you on recoveries of liability you'll expect of is impacts get cover

Laurie Hough

early of be total the yes, impact and stages we're in what what going the really so understanding Chris, to of recoveries development is the are.

we're to point, this want and repairs we develop. the at communications just how -- see So

Christopher Kalata

timing And of I that clarity. guess,

of kind have you'll Just do you of a have sense when a of... better sense

Laurie Hough

Yes.

So is that step HUD, communication recently. and for the was happened first our -- to

And the is. need there, what our be then they level go to of us and to the rate inspect whatever And come mitigation homes out for reply so will we'll plan step from the need then And the and we approval get. do us homes. we understand appropriate give And customers the of remediation. communication that to to after and back next on

Operator

Our next is Securities. question with from Daniel Moore CJS

Dan Moore

Mark. Thanks, Yes.

May, the tick April the it, more as as kind You down there the but community at that's and of retail demand to in business obviously, cadence into ground What higher selling including quarter as we maybe drill as far thus and well how continue on sequentially. level? of traffic spring and you the through touched just orders, they are get into of trended season kind seeing overall

Mark Yost

see orders. of our the I very good saw flowing as as earlier, would steadily demand been backlog said the some of would -- of that is in the healthy. retail activity our quarter, will far calendar than through a first weather, has created level was kind to fiscal we say spring normally January which fourth a ground kind very quarter, But ramp. the I the the Dan, and kind demand -- say retail healthy. level activity, ramp. is ground The mainly Communities, through Yes. you expectations, increasing starting slower I good. Builder kind during quarter, driven as of like by little are of

earlier, we'll not we'll So see in sequential increase growth well. I see only but mentioned as backlog revenue I an the think that

So the are I think order rates healthy. fairly

Dan Moore

And but Okay. kind know bit and you've September trends, of TBD? ramp of this I past, is given crystal X this a quarter ball look. little at early, the continue or quarter a a least in production little to maybe X a current of would sort stage you to through bit Are the you or given at expect

Mark Yost

slow No, how do depiction a we ramping in and would steady fair We're that's I production. of it. our in think

think our we've traction our branding million, very so on in media especially followings I the made now and up we're focused quality, to across with X.X our processes social I brands. think

we're not customer. traditional that getting is end consumer So our who buyer really

that to and make slow to emphasize really range. and keep backlogs X- steady a sure in ramp want we XX-week our to So

Dan Moore

retail good. a Very And at point. that can then that your well to share about retail, starting anecdotes you've your your you directly would of in as to initiatives -- but you're excited of like demand this or kind I you better drive necessarily reached feel from as position even have not Any DTC metrics how that's got otherwise obviously, partners? clients company-owned

Mark Yost

time that captives has from time, rates. other it's metrics. certain return into them, our higher like percent XX-plus as such will necessarily specific say, and as independent turning and drastically, I improved or contact we've return I contact things indicators call these e-mail Thanks, return Dan. don't to driven leads conversion retailers and time Yes. phone have

are customer think the really of centers I the take of homes we're I things -- think terms to the impacting buy to hand to implementing them of help some And really drive that how off call our confusion them our other customers help of So and can in things retailer away home. kind who a signs those healthy. and are

Operator

with Matthew from Bouley Barclays. is question next Our

Elizabeth Langan

Elizabeth have if fiscal on was into you're speak industry as today. kind You Matt head wondering about just for you Langan how 'XX. we I could to thinking volumes of

Mark Yost

Yes.

think as the volumes healthy whole driven channel should I really community a industry and up, think by I retail pick activity.

community last the fiscal was off calendar channel year. in So XXXX and significantly

in they decreases whole volume, we the in absolute volume So that driver really down of is were significantly industry's which the year-over-year saw.

back so a basis, as to they in gradually, terms demand year, return, where what maybe probably it should think kind a of versus cadence get but of not last I we year get the back half on towards we see was activity of you'll of kind in gradually industry full normal So the the to year. late saw

Elizabeth Langan

Have on channel, kind that around any wins then year. been coming kind the works And or incremental business? that far the momentum so of top developer more I know won you you anything there has mentioned that like have the know one business builder anything -- you any have from like I like any forward? you a of XXX this Is good seen builder previously. in demand

Mark Yost

is. there Yes,

subdivision think quarter, in builders development. several won I this several from we awards

takes cycle things, other to quick of momentum channel. as but not that and is orders because those might for just think time to starting conversion I gain through. as think traction of time development the bit It So a increase. builder starting our of process and They're to one we're land with actually little

Operator

with is Our question from Craig-Hallum next Capital Group. Greg Palm

Danny Eggerichs

hoping through dig towards more just strategy a homes stores. have company-owned I the more bit now for was Eggerichs how shifts kind we inclusion, maybe in of to little This today. pushing is Regional Danny Greg that on on

business. how in that the update that progress And of how, kind think and kind shifts moving any the about Just forward. on strategy you if of anything, it

Mark Yost

I know Dan. it business. shifts of the don't that Thanks, strategy the

the throughout country. independent excellent partners have retail We

I'll I we it, generally think had region, small in speaking. call that the a parts Mississippi, of the very country, presence, Alabama,

captive we that exit to business. important. time, is several maybe our of having retail who area distribution see many I or the retail. area retail over in There's few retire or So the independent -- in years will do and think, next that look critically retailers expansion will

the success given with between at But to have that with for that and our with store lead So strategy rates a well. captive to digital higher captive conversion synergy we independents drives them. us think sure and digital some as being management, make really we're conversion our those.And it I strategy capture traction the versus to bears digital want the channel, we've independents fruit had a really adapt seeing the to

So it's I a win-win. think

Danny Eggerichs

think kind last growth. feel revenue I XX% year? Got you of changed this the XX% that expectation for it. confident still of of Anything has couple That's helpful. year And 'XX mentioned growth of quarter, outlook? of over Or that maybe you had kind maybe in fiscal that kind last months to

Mark Yost

Yes.

should I be growth and well. think of general that range, industry in in as with should line that be kind range we industry

Danny Eggerichs

Okay. then one one. Great. last maybe And

of how off In I throughout mentioned. another SG&A, that in of new move Is you of we makes of quarter, level timey? in there that should kind about anything the to kind the know was of? go step-up kind terms as Or the we year? it one Or there think that

Laurie Hough

March. that, couple see industry large in quarter, have because Louisville an given mid-October. of we also in additional for of then the timing in Biloxi the full our had March And X did we and in we addition January sequentially, impact weeks pick the to Regional in shows, So up of close SG&A the

So that's the normal. sequentially for items, something couple of is this that barring quarter. occurs the was new but closer to add annually, those an But

some do a that the March fixed at quarter a overlap We are to acquisition subsequent of the reduction headcount did see quarters. the end we benefit reductions slight for to see related We Regional in into of coming will SG&A. going

Operator

Securities. comes next Jay Wedbush Our question McCanless from with

James McCanless

sounds community What I does gross the it coming now them. business frills wanted same homes the like selling options, with look channel but between like in at less -- channel, the less So you're on differential the retail and with potentially time, channel? maybe and to community the margin retail back that ask

Laurie Hough

significantly Jay. different, Not

James McCanless

be community and where Because are I mean fake. are second we we think are And a quarter quantify low probably head here? you or how Mark, gains. I turns to communities talking Okay. the guess, up? could coming third I'd say it people What much are is talking back single-digit orders this out about

of So are what we type numbers seeing?

Mark Yost

those That it's I the that you the in up gives backlog and of good we not portion Jay. growth they're add just our a growth with understand don't would yes, that the if by during orders balance returning. good I and lot look revenue few numbers, that I decent see on But going portion specific basis. us volume. for of our numbers finished sheet, community to give the or that combine just have of I'm kind the that is year-over-year think of on growth confidence combination quarter, inventory at that communities been say a of But driven a strong a --

James McCanless

rate And Great. type interest is seen us are of any And now? buydowns manufactured stick the could see housing you where sitting right tell also, channel starting rates then the we've builders? industry like to from

Mark Yost

traction we will -- have there So customer healthy a that about for seen buydowns. We rate some have tell that I'd is today. X.X% rates you say good I products Triad, industry very we national launched really not it. right now partnership test that doesn't are to in buydown a that versus does with really with doing see rate between pilot we've the draw difference consumer just selectively in our that

a some program So test any as kind that. industry getting pilot of done that way. from a really But to the data whole, has not we're in do meaningful

site-built point and price points. kind helping really is that as we that getting consumer other I an price the rent industry the have homes, who's of disenfranchised buyer step-down or think with

James McCanless

Or pristine writing only -- are spectrum with you trying customers With get, to you targeting across what you of results you how kind that that are trial? see the what FICO trial write with are maybe to Triad, customers?

Mark Yost

buy those incremental not It's see between really the community sells down, it's we're different loans customer Triad base. just Blackstone, just scores with in say, with others. a normal really the really to Triad's than test pilots doing these just do It's passes no or not, -- going their a Carlyle, to trajectories. these We're FICO through and difference small we're No. -- products to banks,

have and they So score risk already matrix. matrix a FICO defined

doing So how test matrix that conjunction to and we're them box with just in pilots fitting with in goes. just that see

James McCanless

basis Got the in say XXX could you XXX said first you. of to sequentially? down the in me quarter, what points remind gross you And you did then, terms margin Laurie,

Laurie Hough

Yes.

some we in inventory Over the through we're And of marked that next couple value. got declines the gross acquisition see continue to that was the to purchased Jay, fair we've as of Regional work going quarters, margin. part to to

But to going see we're to remain that. continue So as more larger higher. a rates decrease also, we're -- seeing in interest options

So that's the impact. primary

gross come expect margins. ASPs to bit down we the well a as as So

James McCanless

the as input or about couple maybe last Could thinking of it's quarters? looks headwind that of be just one front a you if gross seeing as major inputs? some And about lumber like over could those OSB the cost, little the a margin the tailwind you're have, next well what over then rolled the other bit. I to And talk on a Okay.

Laurie Hough

we're can as No, inflation we modest comes pass pretty X% that and range, on that really expecting we the Yes. it in. on feel

from an on perspective input. movers big not So inflation

Operator

next Moore Daniel is CJS from Our question with Securities.

Dan Moore

X. or follow-up Quick

housekeeping. Just

homes and the are whatever is, we impact over On assume net several rather years be to talking several than will net fair And XXXX of quarters? I the many cash XXXX? remediation, how that about recovery, between assume it's

Laurie Hough

So we're recovery, the yes, not point, years. at the this Dan, and several disclosing homes

Dan Moore

or more your then on about X-year in Okay. M&A Is existing just mind of you frame Are right demand more kind time just how or focused thinking as footprint? their allocation. at capacity And looking ended? a And at utilization still you're capital ramping that then the open buyback? returns deploying now

Mark Yost

thank Dan, you. Yes,

pipeline M&A I think our and -- is healthy still no, robust.

cash good have you're happening of forward. still increased noting, going and we generation probably, outlook think I as an kind

with as with integration it those think factors and play Regional success as well Champion I our Financing. the So into

as far always So there's far timing then is of And the buyback, -- I open-ended share as as M&A it's the think that. definitely as the on table.

Operator

the of to reached Yost I'd back Mark closing end have We the like over comments. for the question-and-answer to turn session. now call

Mark Yost

look you, Thank I have your fiscal a and to for forward you progress call. and thank first quarter on updating everyone earnings our attention, we to our want on today great day.

Operator

This concludes today's conference.

your this for at lines may You your we thank time, and participation. you disconnect

Skyline Champion (SKY) 22 May 242024 Q4 Earnings call transcript