Latest news with #TimLarson
Yahoo
30-05-2025
- Business
- Yahoo
Champion Homes Announces $50 Million Increase to Share Repurchase Program
TROY, Mich., May 30, 2025--(BUSINESS WIRE)--Champion Homes, Inc. (NYSE: SKY) ("Champion Homes" or the "Company") today announced that its Board of Directors has authorized an increase of $50 million to the Company's existing share repurchase program, bringing the aggregate capacity of the program to $150 million. "We remain confident in our strategy and we continue to deliver strong cash generation," said Tim Larson, President and Chief Executive Officer of Champion Homes. "We remain committed to delivering long-term shareholder value through a thoughtful approach to capital allocation." Repurchases under the share repurchase program may be made through a variety of methods, including open market or privately negotiated purchases. The timing and amount of shares repurchased will depend on the stock price, business and market conditions, corporate and regulatory requirements, alternative investment opportunities, and other factors. Champion Homes is not obligated to repurchase any specific amount of shares of common stock, and the share repurchase program may be suspended or terminated at any time. About Champion Homes, Inc.: Champion Homes, Inc. (NYSE: SKY) is a leading producer of factory-built housing in North America and employs approximately 9,000 people. With more than 70 years of homebuilding experience and 46 manufacturing facilities throughout the United States and western Canada, Champion Homes is well positioned with an innovative portfolio of manufactured and modular homes, ADUs, park-models and modular buildings for the single-family, multi-family, and hospitality sectors. In addition to its core home building business, Champion Homes provides construction services to install and set-up factory-built homes, operates a factory-direct retail business with 72 retail locations across the United States, and operates Star Fleet Trucking, providing transportation services to the manufactured housing and other industries from several dispatch locations across the United States. Champion Homes builds homes under some of the most well-known brand names in the factory-built housing industry including Skyline Homes, Champion Homes, Genesis Homes, Regional Homes, Athens Park Models, Dutch Housing, Atlantic Homes, Excel Homes, Homes of Merit, New Era, Redman Homes, ScotBilt Homes, Shore Park, Silvercrest, Titan Homes in the U.S. and Moduline and SRI Homes in western Canada. Forward-Looking Statements Statements in this press release, including certain statements regarding Champion Homes' strategic initiatives, and future market demand are intended to be covered by the safe harbor for "forward-looking statements" provided by the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally can be identified by use of words such as "believe," "expect," "future," "anticipate," "intend," "plan," "foresee," "may," "could," "should," "will," "potential," "continue," or other similar words or phrases. Similarly, statements that describe objectives, plans, or goals also are forward-looking statements. Such forward-looking statements involve inherent risks and uncertainties, many of which are difficult to predict and are generally beyond the control of Champion Homes. We caution readers that a number of important factors could cause actual results to differ materially from those expressed in, implied, or projected by such forward-looking statements. Risks and uncertainties include regional, national and international economic, financial, public health and labor conditions, and the following: supply-related issues, including prices and availability of materials; changes in U.S. trade policies, including tariffs or other trade protection measures; labor-related issues; inflationary pressures in the North American economy; the cyclicality and seasonality of the housing industry and its sensitivity to changes in general economic or other business conditions; demand fluctuations in the housing industry, including as a result of actual or anticipated increases in homeowner borrowing rates; the possible unavailability of additional capital when needed; competition and competitive pressures; changes in consumer preferences for our products or our failure to gauge those preferences; quality problems, including the quality of parts sourced from suppliers and related liability and reputational issues; data security breaches, cybersecurity attacks, and other information technology disruptions; the potential disruption of operations caused by the conversion to new information systems; the extensive regulation affecting the production and sale of factory-built housing and the effects of possible changes in laws with which we must comply; the potential impact of natural disasters on sales and raw material costs; the risks associated with mergers and acquisitions, including integration of operations and information systems; periodic inventory adjustments by, and changes to relationships with, independent retailers; changes in interest and foreign exchange rates; insurance coverage and cost issues; the possibility that all or part of our intangible assets, including goodwill, might become impaired; the possibility that all or part of our investment in ECN Capital Corp. ("ECN") might become impaired; the possibility that our risk management practices may leave us exposed to unidentified or unanticipated risks; the potential disruption to our business caused by public health issues, such as an epidemic or pandemic, and resulting government actions; and other risks set forth in the "Risk Factors" section, the "Legal Proceedings" section, the "Management's Discussion and Analysis of Financial Condition and Results of Operations" section, and other sections, as applicable, in our Annual Reports on Form 10-K, including our Annual Report on Form 10-K for the fiscal year ended March 29, 2025 previously filed with the Securities and Exchange Commission ("SEC"), as well as in our Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K, filed with or furnished to the SEC. If any of these risks or uncertainties materializes or if any of the assumptions underlying such forward-looking statements proves to be incorrect, then the developments and future events concerning Champion Homes set forth in this press release may differ materially from those expressed or implied by these forward-looking statements. You are cautioned not to place undue reliance on these statements, which speak only as of the date of this release. We anticipate that subsequent events and developments will cause our expectations and beliefs to change. Champion Homes assumes no obligation to update such forward-looking statements to reflect events or circumstances after the date of this document or to reflect the occurrence of unanticipated events, unless obligated to do so under the federal securities laws. View source version on Contacts Investor contact information: Name: Jason BlairEmail: jablair@ Phone: (248) 614-8211 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Wire
30-05-2025
- Business
- Business Wire
Champion Homes Announces $50 Million Increase to Share Repurchase Program
BUSINESS WIRE)--Champion Homes, Inc. (NYSE: SKY) ('Champion Homes' or the 'Company') today announced that its Board of Directors has authorized an increase of $50 million to the Company's existing share repurchase program, bringing the aggregate capacity of the program to $150 million. 'We remain confident in our strategy and we continue to deliver strong cash generation,' said Tim Larson, President and Chief Executive Officer of Champion Homes. 'We remain committed to delivering long-term shareholder value through a thoughtful approach to capital allocation.' Repurchases under the share repurchase program may be made through a variety of methods, including open market or privately negotiated purchases. The timing and amount of shares repurchased will depend on the stock price, business and market conditions, corporate and regulatory requirements, alternative investment opportunities, and other factors. Champion Homes is not obligated to repurchase any specific amount of shares of common stock, and the share repurchase program may be suspended or terminated at any time. About Champion Homes, Inc.: Champion Homes, Inc. (NYSE: SKY) is a leading producer of factory-built housing in North America and employs approximately 9,000 people. With more than 70 years of homebuilding experience and 46 manufacturing facilities throughout the United States and western Canada, Champion Homes is well positioned with an innovative portfolio of manufactured and modular homes, ADUs, park-models and modular buildings for the single-family, multi-family, and hospitality sectors. In addition to its core home building business, Champion Homes provides construction services to install and set-up factory-built homes, operates a factory-direct retail business with 72 retail locations across the United States, and operates Star Fleet Trucking, providing transportation services to the manufactured housing and other industries from several dispatch locations across the United States. Champion Homes builds homes under some of the most well-known brand names in the factory-built housing industry including Skyline Homes, Champion Homes, Genesis Homes, Regional Homes, Athens Park Models, Dutch Housing, Atlantic Homes, Excel Homes, Homes of Merit, New Era, Redman Homes, ScotBilt Homes, Shore Park, Silvercrest, Titan Homes in the U.S. and Moduline and SRI Homes in western Canada. Forward-Looking Statements Statements in this press release, including certain statements regarding Champion Homes' strategic initiatives, and future market demand are intended to be covered by the safe harbor for "forward-looking statements" provided by the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally can be identified by use of words such as "believe," "expect," "future," "anticipate," "intend," "plan," "foresee," "may," "could," "should," "will," "potential," "continue," or other similar words or phrases. Similarly, statements that describe objectives, plans, or goals also are forward-looking statements. Such forward-looking statements involve inherent risks and uncertainties, many of which are difficult to predict and are generally beyond the control of Champion Homes. We caution readers that a number of important factors could cause actual results to differ materially from those expressed in, implied, or projected by such forward-looking statements. Risks and uncertainties include regional, national and international economic, financial, public health and labor conditions, and the following: supply-related issues, including prices and availability of materials; changes in U.S. trade policies, including tariffs or other trade protection measures; labor-related issues; inflationary pressures in the North American economy; the cyclicality and seasonality of the housing industry and its sensitivity to changes in general economic or other business conditions; demand fluctuations in the housing industry, including as a result of actual or anticipated increases in homeowner borrowing rates; the possible unavailability of additional capital when needed; competition and competitive pressures; changes in consumer preferences for our products or our failure to gauge those preferences; quality problems, including the quality of parts sourced from suppliers and related liability and reputational issues; data security breaches, cybersecurity attacks, and other information technology disruptions; the potential disruption of operations caused by the conversion to new information systems; the extensive regulation affecting the production and sale of factory-built housing and the effects of possible changes in laws with which we must comply; the potential impact of natural disasters on sales and raw material costs; the risks associated with mergers and acquisitions, including integration of operations and information systems; periodic inventory adjustments by, and changes to relationships with, independent retailers; changes in interest and foreign exchange rates; insurance coverage and cost issues; the possibility that all or part of our intangible assets, including goodwill, might become impaired; the possibility that all or part of our investment in ECN Capital Corp. ("ECN") might become impaired; the possibility that our risk management practices may leave us exposed to unidentified or unanticipated risks; the potential disruption to our business caused by public health issues, such as an epidemic or pandemic, and resulting government actions; and other risks set forth in the 'Risk Factors' section, the 'Legal Proceedings' section, the 'Management's Discussion and Analysis of Financial Condition and Results of Operations' section, and other sections, as applicable, in our Annual Reports on Form 10-K, including our Annual Report on Form 10-K for the fiscal year ended March 29, 2025 previously filed with the Securities and Exchange Commission ('SEC'), as well as in our Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K, filed with or furnished to the SEC. If any of these risks or uncertainties materializes or if any of the assumptions underlying such forward-looking statements proves to be incorrect, then the developments and future events concerning Champion Homes set forth in this press release may differ materially from those expressed or implied by these forward-looking statements. You are cautioned not to place undue reliance on these statements, which speak only as of the date of this release. We anticipate that subsequent events and developments will cause our expectations and beliefs to change. Champion Homes assumes no obligation to update such forward-looking statements to reflect events or circumstances after the date of this document or to reflect the occurrence of unanticipated events, unless obligated to do so under the federal securities laws.
Yahoo
28-05-2025
- Business
- Yahoo
SKY Q1 Earnings Call: Sales Growth Amid Margin Pressure and Shifting Consumer Trends
Modular home and building manufacturer Champion Homes (NYSE:SKY) missed Wall Street's revenue expectations in Q1 CY2025, but sales rose 10.7% year on year to $593.9 million. Its non-GAAP EPS of $0.65 per share was 15% below analysts' consensus estimates. Is now the time to buy SKY? Find out in our full research report (it's free). Adjusted EBITDA Margin: 8.9% Sales Volumes rose 5.1% year on year (15.3% in the same quarter last year) Market Capitalization: $4.04 billion Champion Homes' Q1 results were shaped by a combination of mixed consumer demand, shifts in product preferences, and regional variations in market activity. CEO Tim Larson described the quarter as one marked by 'more serious buyers in the market,' even as in-store traffic varied by region and consumer confidence softened. The company's expansion of digital lead generation and financing programs supported sales, while weather-related challenges in the South and slower recovery in Florida impacted order flow. Management noted the continued growth in its community channel, now representing 28% of overall unit sales, and highlighted ongoing investments in technology and marketing to drive awareness and capture new buyers. CFO Laurie Hough pointed to higher selling prices and a greater share of sales through company-owned retail centers as supportive factors, but cited increased SG&A from industry shows and technology investments as contributors to near-term margin pressure. Looking ahead, Champion Homes expects near-term demand to remain unpredictable, with management forecasting low single-digit revenue growth for the next quarter. Larson emphasized the company's strategy of expanding its captive retail footprint, including the acquisition of Iseman Homes, as a way to drive market share and improve the customer experience. He also pointed to ongoing regulatory discussions—such as the potential removal of the permanent chassis requirement for manufactured homes—as a possible catalyst for further market expansion. CFO Laurie Hough stated, 'We do think that lowering to the 25%-26% range [for gross margin] is just for the short term,' attributing this outlook to softening consumer confidence, inflation in input costs, and a shift toward smaller, lower-featured homes. Management remains cautious, focusing on agile cost management and selective price adjustments to mitigate inflation and tariff headwinds. Management attributed sales growth to targeted investments in digital platforms, product innovation, and expansion of its retail network, while acknowledging margin pressures from input costs and changing buyer preferences. Digital channel investment: Champion Homes continued to advance its dealer portal and digital marketing initiatives, resulting in increased digital leads across key regions. Early adopters of the dealer portal reported improved engagement and faster response times to customer inquiries. This digital shift is seen as critical for attracting new buyers and integrating the sales process from lead generation to fulfillment. Retail network expansion: The company announced its acquisition of Iseman Homes, adding 10 retail centers in the Plains region. Management views this move as a strategic step to drive growth in underpenetrated markets and leverage synergies with existing company-owned retail operations. The integration is expected to bring incremental volume and operational efficiencies over time. Product mix shift: Management observed a trend toward smaller, more affordable homes with fewer features and upgrades, driven by consumer sensitivity to monthly payment amounts. This mix shift is impacting gross margins, as higher-margin option content now represents a smaller share of total sales. Input cost and margin dynamics: CFO Laurie Hough detailed that elevated material costs, particularly for components purchased on both spot and contract, and lower capacity utilization contributed to sequential margin compression. While certain wood products saw price relief, inflation in other materials and regional pricing pressures have offset these benefits. Regulatory and market advocacy: The company is actively engaged with policymakers to advance zoning reform and the potential removal of the permanent chassis requirement for manufactured homes. Management believes these regulatory changes could expand the addressable market and enable more flexible, cost-effective product designs, particularly for builder-developer customers seeking alternatives to traditional site-built housing. Champion Homes' outlook centers on adapting to consumer uncertainty, expanding its retail presence, and navigating inflationary and regulatory pressures. Retail and M&A expansion: The integration of Iseman Homes and continued pursuit of other regional acquisitions are expected to grow the captive retail channel, increase market share, and improve the customer buying experience. Management believes this will help offset regional demand fluctuations and support long-term revenue growth. Product innovation and regulatory shifts: Ongoing investment in new home designs and features—especially in response to potential regulatory changes like the removal of the chassis requirement—may unlock new market opportunities and appeal to a broader spectrum of buyers. The company is positioning itself to benefit from increased zoning flexibility and evolving consumer preferences. Margin management and input costs: The company is proactively managing SG&A expenses and implementing selective price adjustments to counteract inflation and tariffs. However, persistent input cost volatility and the trend toward lower-priced homes with fewer upgrades present ongoing headwinds to margin recovery in the near term. In upcoming quarters, the StockStory team will watch (1) the integration of Iseman Homes and its effect on retail channel growth, (2) stabilization of gross margins as the product mix and input costs evolve, and (3) progress on regulatory initiatives that could reshape zoning and manufacturing requirements. Execution on digital platform enhancements and demand recovery in key regions will also be critical markers. Champion Homes currently trades at a forward P/E ratio of 17.8×. Is the company at an inflection point that warrants a buy or sell? Find out in our full research report (it's free). Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
28-05-2025
- Business
- Yahoo
Q4 2025 Champion Homes Inc Earnings Call
Jason Blair; Investor Relations; Champion Homes Inc Tim Larson; President and Chief Executive Officer; Champion Homes Inc Laurie Hough; Executive Vice President, Chief Financial Officer, Treasurer; Champion Homes Inc Daniel Moore; Analyst; CJS Securities Greg Palm; Analyst; Craig-Hallum Capital Group Matthew Bouley; Analyst; Barclays Mike Dahl; Analyst; RBC Capital Markets Phil Ng; Analyst; Jefferies Jesse Lederman; Analyst; Zelman & Associates Jay McCanless; Analyst; Wedbush Securities Operator Good morning. Welcome to the Champion Homes fourth-quarter fiscal 2025 earnings call. My name is Sherry. I will be coordinating your call today. (Operator Instructions) As a reminder, this conference is being recorded. I will now turn the call over to your host Jason Blair to begin. Jason, please go ahead. Jason Blair Good morning. Thank you for taking the time to join us for today's conference call and review of our business results for the fourth quarter and full year ending March 29, 2025. Here to review our results are Tim Larson, Champion Homes' President and Chief Executive Officer; and Laurie Hough, Executive Vice President, Chief Financial Officer, and Treasurer. Earlier this morning, we issued our earnings release. As a reminder, the earnings release and statements made during today's 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. 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. Please note that today's remarks contain non-GAAP financial measures, which we believe can be useful in evaluating performance. Definitions and reconciliations of these measures can be found in the earnings release. I will now turn the call over to Champion Homes' CEO, Tim Larson. Tim Larson Thank you, Jason, and good morning everyone. On behalf of the Champion team, I'm proud to report that in fiscal 2025, we provided over 26,000 homes to customers and families across the US and Canada. This represents a 19% increase in homes sold year-over-year, and revenue growth of 23%, resulting in fiscal year 2025 sales of $2.5 billion. Unit volume increase was driven by higher demand across all channels, including from the regional homes acquisition for the entirety of the fiscal year. Performance was driven by an unwavering focus on our customers and executing our strategic priorities. We are investing in new products and services for our channel partners and expanding our retail capabilities, including today announcing an acquisition of Iseman Homes, which I will discuss further in a moment. We were very active in the marketplace during the quarter, and had a tremendous reception to our new products at the International Builders' Show, where we showcase models laser focused on providing builders with relevant and affordable turnkey homes. In March, we had a great response for our Biloxi shelf product lineup, reflecting the strength of the Champion Holmes family of brands. More recently, we were able to engage with leadership from the Department of Housing and Urban Development. We are encouraged by the dialogue and the positive feedback we received during their recent visits. We are impressed by US HUD Secretary, Scott Turner's commitment to making home ownership more attainable. I appreciate the time we've spent train our homes, and his willingness to learn how we can further expand manufactured housing to address the affordability needs across the country. The recent spotlight in Congress to reaffirm HUD's role as the sole regulator and removing the requirement that manufactured homes on a permanent chassis are all steps in the right direction. And when combined with zoning reform, will reduce barriers to further grow the market for off-site build homes. A market that we are investing in for growth, as reflected in our strategic priorities and capital allocation, they are all aligned to deliver sustained value across all stakeholders. Given the current overall market uncertainty, we are focused on remaining nimble while thoughtfully advancing our strategy, and that was very evident in the fourth quarter of fiscal '25. Team continued to execute on the fundamentals and deliver profitable growth by navigating an unpredictable environment with tariffs and inflation looming throughout the quarter. Fourth quarter year-over-year net sales increased 11% to $594 million, and homes sold during the period increased 6% to a total of 6,171 units. We experienced normal seasonality in the fourth quarter, with a sequential decrease in revenue compared to the third quarter, and orders increased as we progressed through the quarter, and our backlog at the end of the year was $343 million. Backlogs were up 9% from the end of last year, and up 10% sequentially. Average backlog lead time ended the quarter at 8 weeks, which is within our target range of 4 to 12 weeks. I'll provide some additional commentary from the quarter on each of our sales channels. Sales to our independent retail channel and through our captive retail stores both increased versus the prior year period. For independent retailers, we continue to advance our digital technology and league management platform, including the phase launch of a dealer portal, which was receiving great reviews from the early adopters. Consistent with our strategy to expand our captive retail presence, we announced today an agreement to acquire Iseman Homes located in the plains region of the US. We will use the strength of our in-house retail and our new Iseman Homes team to drive growth in this region. I'll touch more on Iseman in a bit. Moving to the community channel, we remain focused on supporting our community partners by providing timely and relevant products at the right value. Through these efforts, sales in community channel increased versus the prior year. Our build a developer pipeline remains strong as we continue to grow the network. The projects are in various stages and are being paid somewhat by the market uncertainty. However, we are continuing to invest in this channel and believe over the long term, off-site build homes will become a more widely adopted approach for builders and land developers. Champion Financing, our joint venture with Triad Financial Services, continues to perform well. Our retail loan programs, when combined with the right home, provide today's consumers with their optimal monthly payment. Our floor plan programs allow us to support growth with our retailers by ensuring they have the right products for each market. We appreciate the collaboration with the ECM Capital and Triad teams and partners. Looking to our first fiscal quarter of '26, as we thoughtfully navigate the market and consumer uncertainty, we anticipate Q1 revenue be up low single digits compared to the same period last year. As we begin fiscal 2026, the demand has been less predictable compared to a normal spring selling season. In addition, we are seeing a shift in consumer trends to smaller floor plans with fewer features and options. The near term outlook for the community channel varies as we hear mixed views depending on the operator's geography and expansion pace. Despite the uncertain environment, we remain confident and focused on executing our strategy and leading and managing the variables within our control while remaining nimble in the market. We are actively managing within the dynamic environment and are executing our playbook as developments unfold. But so far the direct cost impact has been limited, but we do believe it is affecting consumer sentiment. Our strategy includes a balanced approach of selective price adjustments and material sourcing changes to optically mitigate the impact. We're also being proactive and agile as we navigate the environment, including taking actions to thoughtfully control our fixed costs, while not losing sight of our need to invest in our strategies for the long term. We recently idled one of our production locations in the Florida market by leveraging our remaining nearby facilities for customers in that region. Fermenting in demand in Florida has been slow to recover from the 2024 hurricanes. In addition, in the British Columbia region, we are consolidating two of our Canadian factories into one, to improve operating efficiencies and reduce overhead costs. From a growth perspective, as I mentioned earlier, we announced the signing of a definitive agreement to acquire Iseman Homes, including its 10 retail sales centers in the plains region of the US. This acquisition underscores our long term strategy to expand our retail footprint and deliver market relevant products, all while elevating the home buying experience for our customers. With annualized revenues of approximately $40 million, we see a pipeline of local market demand and synergistic opportunities. Champion Homes team is very excited to welcome Iseman Homes, and we look forward to their integration with our Champion family of brands. We expect the transaction to close by the end of our first fiscal quarter. In summary, we believe Champion Homes is well positioned to weather the uncertain market environment while driving an unwavering focus on our long term strategic growth priorities and day to day execution that are directly centered on our customers and team. I'll now turn the call over to Laurie, who will discuss our quarterly financial performance in more detail. Laurie Hough Thanks, Tim, and good morning everyone. I'll begin by reviewing our financial results for the fourth quarter, followed by a discussion of our balance sheet and cash flows. I will also briefly discuss our near term expectations. During the fourth quarter, net sales increased 11% to $594 million compared to the same quarter last year, with US factory-built housing revenue increasing 10%. The number of homes sold increased 5% to 5,941 homes in the US compared to 5,652 homes in the prior year period. US home volume during the quarter was supported by healthy demand across our retail and community channels. The average selling price per US home sold increased by 5% to $94,300 due to product mix, including a higher number of units sold through our company owned retail sales centers. On a sequential basis, US factory-built housing revenue decreased 8% in the fourth quarter compared to the third quarter fiscal 2025. We saw a sequential decrease, mainly due to expected seasonality, as well as an impact from weather across the south. In addition, manufacturing capacity utilization was 60% compared to 63% in the third quarter. On a sequential basis, the average selling price per home was relatively flat. Canadian revenue during the quarter was $25 million, representing a 22% increase in the number of homes sold versus the prior year period. The average home selling price in Canada decreased 9% to $110,600 primarily due to a shift in product mix. Consolidated gross profit increased 55% to $152 million in the fourth quarter, and our gross margin expanded 740 basis points from 18.3% in the prior year period. The higher gross margin was primarily due to a product liability reserve of $34.5 million recorded in the fourth quarter of last year that did not reoccur in fiscal 2025, as well as higher average selling prices and a higher share of sales through our captive retail sales centers. Gross margin declined sequentially from our fiscal third quarter and was lower than expectations, primarily due to higher material input costs relative to flat wholesale ASPs, as well as lower capacity utilization, causing decreased leverage of fixed overhead costs. SG&A in the fourth quarter increased $20 million over the prior year period to $110 million. The increase is primarily attributable to increased sales volumes through our company owned retail sales centers and higher variable costs related to higher revenue. In addition, we increased marketing spend to drive awareness in our brands and homes and continued to make investments in technology to support future growth. The company's effective tax rate for the quarter was 17.1% versus an effective tax rate of 19.2% for the year ago period. The decrease in the effective tax rate is primarily due to an increase in tax credits and a decrease in state income taxes. Net income attributable to Champion Homes for the fourth quarter increased by $33 million to $36 million or earnings of $0.63 per diluted share compared to net income of $3 million or earnings of $0.05 per diluted share during the same period last year. The increase in EPS was driven mainly by the absence of an adjustment to the water intrusion product liability reserve in the current year period. Adjusted EBITDA for the quarter was $53 million which is consistent with the same period a year ago. Adjusted EBITDA margin was 8.9% compared to 9.9% in the prior year period. This decrease in EBITDA margin is mainly driven by higher SG&A. We expect near term growth margin in the 25% to 26% range as we balance softening consumer confidence, decreased demand in certain markets, and inflation. In addition, we're seeing consumers shifting to homes with fewer or lower priced features and options which impacts gross margin. To help offset some of this impact, and as Tim mentioned earlier, we're taking steps to balance SG&A spending while continuing to drive our strategic growth priorities, including investments in people and technology. As of March 29, 2025, we had $610 million of cash and cash equivalents and long-term borrowings of $25 million, with no maturities until July of 2026. We generated $46 million of operating cash flows for the quarter compared to $4 million in the prior year period. In the quarter, we leveraged our strong cash position and returned capital to our shareholders through $20 million in share repurchases. Additionally, our Board recently refreshed our $100 million share repurchase authority, reflecting confidence in our continued strong cash generation. I'll now turn the call back to Tim for some closing remarks. Tim Larson Thank you, Laurie. While we anticipate near term rates to vary by channel geography, the need for affordable housing remains ever present across the US and Canada. The long term outlook for Champion is strong, and we have the strategies in place to deliver for all our stakeholders, strategies that we are thoughtfully executing as we evolve the team with the combination of internal advancement, new talent, and selective engagement of outside resources. Our guiding priorities are not only for the long term, they provide a clear roadmap for today's environment and deploying our capital, including winning as a customer centric, high performance, agile team, innovating and differentiating with products and services that bring in new buyers, expanding and elevating our go to market channels, including delivering experiences before, during and after the sale that earn new customers and their referrals, increasing awareness, demand and adequacy for our brands and homes, and leveraging our costs, capacity and investments in people and technology. Finally, I would like to recognize the entire Champion Homes team for their exceptional efforts to grow revenue and earnings in fiscal 2025, and as we work together to continue to execute our strategic initiatives for all our stakeholders. And now let's open the line for questions. Operator, please proceed. Operator (Operator Instructions) Daniel Moore, CJS Securities. Daniel Moore Thank you. Good morning, Tim. Good morning, Laurie. Maybe you start with just elaborating on the discussions with customers in both retail and community markets and then cadence of order rates into April and thus far in May, and maybe a little bit more bifurcation by geography, obviously Florida by all accounts has been soft, but where you're seeing pockets of strength, pockets of weakness, et cetera. Tim Larson Yeah, good morning, Dan. Encouraging wise, we're seeing digital leads are up across a lot of our regions, but then when we talk to the retail teams, the in-store traffic has been mixed and certainly by region of the country. And as I talked to our independents, they're seeing similar impacts in terms of certain areas where there's strong traffic, others that are a little weaker. But what I would say in general, what's encouraging is that there's more buyers, active buyers, and those buyers are ones that are more motivated to obviously purchase a home, and our financing programs are helping that. So I would say there's more serious buyers in the market, and that's why we reflected our low single digit growth for Q1 versus some what you're seeing in the broader market. But I would say, that it's been mixed traffic this spring, but we've been driving more leads, certainly driving more of that engagement with our consumer at our retail stores, but it is more mixed, and that's why we signaled a more low single digit rate for the quarter. Daniel Moore Sorry, that's helpful, Tim. And on the community side, a little bit of continued interest, but maybe kind of a slow burner holding off for now. I'm trying to remember your exact commentary prepared remarks, but any elaborate there would be great. Thank you. Tim Larson Yeah, we were up in the quarter year-over-year in the community segments, and we've certainly seen some returns with key customers there, but I would say it's mixed. There's some projects and some community developers that are pacing a bit, but we've been pleased with the growth of the community segment over the last year. They're now at 28% of our overall units, which is strong, and so we're pleased with how that's going. But I -- we're just balanced about the community segment, given that they face some of the dynamics with the consumer as well. Daniel Moore Got it. And then on the SG&A side, increased sequentially despite the decline and sequential decline in revenue. Can you maybe just break out a little bit about how much was incentive comp versus investments in marketing and technology? Just trying to get a sense for how much SG&A in Q4 could be temporary versus kind of permanently higher cost structure. Laurie Hough Good morning, Dan. I would say, we should remember in the fourth quarter that we have quite a few of our industry shows. That's kind of a cyclical timing issue for us in the fourth quarter, so that won't reoccur quite as strongly going into the first half of next year -- of this fiscal year. So -- but we aren't going to break out the components individually. Daniel Moore Understood. Okay, and then just last one for me, continue to utilize buybacks as an arrow in a quiver in terms of capital allocation, with shares indicating where they are this morning, just your thoughts about being more aggressive, cash continues to grow, but despite buying back shares more aggressively. So any thoughts on that front, and thanks again for the color. Tim Larson Yeah, obviously -- go ahead, Laurie. Laurie Hough No, that's okay. Yeah, we have a really balanced capital allocation profile, so we'll keep an eye on that and obviously be opportunistic if the shares low and just make judgment calls based on our overall strategy, Dan. Tim Larson Thanks again. And I was going to add Dan that we're pleased we refreshed our commitment to share repurchase, and we've added $100 million of cash versus last year, which certainly gives us options across our capital allocation. Operator Greg Palm, Craig-Hallum Capital Group. Greg Palm Yeah, good morning, thanks. Going back to the quarter, I think you had maybe talked or mentioned about some unfavorable weather conditions. Just based on order rates and any backlog, was there any inability to ship homes from retail to end customers? I know you had a dynamic in the year ago period that came into play, but just curious if that was impacted at all this quarter as well. Tim Larson Yeah, the Texas market and part of the south was a bit slower than typically it would be, so there is some impact there. And we factored that into the first quarter of fiscal '26. But I think that plus some of the consumer dynamics I mentioned are factoring in, but we feel like we're in a good position now with where we are with our inventory and the opportunity to move in a nimble way, given consumers demand that if that continues to grow, so I think we're pretty balanced there. Greg Palm Yes, okay. And I guess it's not a secret that housing overall is pretty soft, but I know activity here is held up maybe better than stick built if you want to call it that. But I'm just curious if you just take a step back and talk a little bit about manufacturer housing, specifically in the customer base and the demographics, and What gives you hope that maybe this is a time for more meaningful shared gains, maybe you can talk a little bit about sort of deregulation in there as well because there's obviously some important things going on behind the scenes. Tim Larson Yeah, for sure. There's a few different levers there. One of our commitments to have captive retail is that's where you really can drive the customer experience and the speed with the customer, and you combine that with the consumer financing program. So that's why we're expanding with Iseman. Second, another area you mentioned is the regulation elements. We're encouraged by the focus on reducing the chassis, the requirements, looking at different approach in terms of the reform around zoning potentially, so that more local municipalities are supportive. Obviously removing the chassis is going to help that in certain markets. The other driver is just an overall awareness. When we had the HUD Secretary walk through our homes, his feedback was positive. While these are beautiful homes, so well built, just getting that advocacy out there so more consumers are aware of it. You see that with our investment and marketing spending and obviously what we're doing digitally. Then in terms of the consumer, really making sure they're aware of the price points that you can get in a brand new home, and that's obviously the key with our financing programs, you can get a customer matched to the right product with that right price point, just getting more aware and that's in the market and pulling a new consumers, and we're putting our digital spend to work there. We're using social media to attract people who typically would maybe be aware of our products and pull them into our retail. So those are all drivers. Now that's against the backdrop that there's more challenges with the consumer in terms of some of the uncertainty we're seeing. So that's why we're investing to make sure that we're getting into their mindset in terms of a consideration purpose. The combination of those things I think are really are what's going to be in the near term key, but then from a longer term, our product innovation spend is to make sure that we have a range of products for those range of customers that are looking for the different types of homes and needs. And you see -- you saw that at the show maybe you bring out our shows where you see the type of new products that we're coming out with. And I think those are all key in terms of growth and the strategic priorities that I laid out in my remarks. Greg Palm Yeah, okay, makes sense. Thanks for the color. Operator Matthew Bouley, Barclays. Matthew Bouley Morning everyone. Thank you for taking the questions. I'll ask on the gross margin, the change to the near term guide, I think you said 25% to 26%. I think previously it was in that 26% to 27% range. So my question is some of the I guess pressures that you're seeing today, if your view is there sort of more temporary and that the 26% to 27% is still realistic over time, or is it that you're kind of still I guess looking for what the structural gross margins of the business should be going forward as obviously the business mix has shifted over the years. Thank you. Laurie Hough Good morning, Matt. Thanks for the question. We do think that the lowering to the 25% to 26% range is just for the short term, based on softening consumer confidence and decrease in demand in certain markets, as well as some inflation that we're seeing in material cost. Long term, we still expect structural margins to be in the 26% to 27% range, based on the improvements that we've made across the platform. Matthew Bouley Got it. Okay, thanks for that, Laurie. And then -- yeah, secondly, interesting discussion at the top there around some of your discussions with the new HUD Secretary, maybe just around that potential removal of the permanent chassis requirement, any color on sort of what that would do for your own cost, how realistic is that actually happening and I guess how would you then react around either passing that through to consumers or maybe just impacting other designs, just kind of giving you more flexibility in the product design, just how would that all play out? Thank you. Tim Larson Yeah, first off, from a consumer perspective, it allows you to do maybe two stories more effectively, gives some elevations because you can do more slab on grade, so it gives that benefit from a curb appeal, and then there's some municipalities that are still hung up on having a chassis in their home, so it helps with the zoning support. From a cost perspective, certainly not having the chassis underneath, you need it for transport, different types of transport that may be lower cost. So there is some opportunity there. As far as how we would approach it, our goal is to create the right product price value. And if we haven't a chance to do that for a consumer that this allows it, great, but obviously we want to continue to drive margins, we'd have to look at the balance there. But it's encouraging that it's actually now in discussion, and there's progress in terms of regulators. And I think it because of the strength of the quality of our homes and the way that we can deliver them, it really gives us the confidence that this should happen and likely will happen, but also that has to go through the bills process which is well underway at this point. So we're encouraged by it. And we're also looking at product innovations that would leverage from it. So we'll keep you posted as it evolves, but it's an encouraging sign. Matthew Bouley Alright, thanks Tim. Good luck guys. Operator Mike Dahl, RBC Capital Markets. Mike Dahl Morning. Thanks for taking my questions. A couple follow-ups here. First on the gross margin dynamics, I guess can you be more specific about what role the input costs are playing in the near term, because if I look at kind of wood products, even though lumbers up a little, OSP is down a lot, so I would think your blended wood basket is actually kind of flattish. But maybe just give us a sense of what's impacting -- what's the cost impact versus that mix or mix down impact in your near term margin expectations. Laurie Hough Hey Mike, good morning. I would say that we're obviously we're not going to break out components, but we do have portions of our wood products that we buy at the spot rate and also portions that we buy on contract. So the mix of those don't necessarily align 100% with the spot rate activity. So we need to keep that in mind. We're also seeing some increases in some other component costs across the board. So -- and then we are seeing some pricing pressure in certain regions of the country based on consumer confidence. Mike Dahl Okay, got it. Appreciate that. And then just to follow-up on that response to Matt's question on the permanent chassis -- the chassis requirement. In your -- with builder developer specifically as you've kind of rolled out and tried to promote the Genesis brand and build those relationships, has that been a hang up in your discussions with builders because that is a limiting factor? Or how would you describe that when you think about the potential to unlock that part of your business or further that part of your business specifically. And then if I could just ask more broadly when you talk about kind of some more measured pace on that side of the business recently understandable but maybe just put some put some numbers around that. Tim Larson Yeah, great question. In terms of the chassis, yeah, that is a key opportunity with those developer because oftentimes those developers are going into new municipality, new land zoning, and that certainly would help if they're looking for that more single family slab on grade look. The other factor is those builders at times are looking for two story projects, which this would be an advantage for that approach. In terms of the overall builder developer, the pipeline is continuing to build and we've had really good response to the new products that we've come out with. One of the realities of that business and giving it a smaller size in our total portfolio is the time it takes for those projects. They can be here for from 12 months to 24 months, so that pace does impact when those more orders really materialize, but we're encouraged by the pipeline and we're working directly with those builders. And I think the painting also is with the macro environment, some of them are looking at the phases and how quickly they deployed. But we're working with them directly to make sure that we can help and support that and move those projects along. And we're leveraging what we've learned from the projects that we've done so far. So again, that's a longer term development channel for us, but it's one that both the regulatory opportunities and the way we're pacing it is really helping. So I appreciate the question on builder developer. Mike Dahl Thanks Tim. Operator Phil Ng, Jefferies. Phil Ng Hey guys. I guess a question for Laurie. Your near term margin guidance is pretty steady from Q4, which is great, but certainly we're still seeing impacts from tariffs. It doesn't sound like it's massive, but help us kind of think through how that could impact margins, and do you have to take incremental price because you had alluded to perhaps some pricing pressures in certain markets. Laurie Hough Hey Phil, good morning. Yeah, so we're not seeing a significant increase from tariffs currently. We are watching and monitoring as it changes on a daily basis, so keeping track of that and understanding where our products come from and what the impact will be, and then just being proactive about sourcing from other locations and so forth. So we're -- we have an active playbook of things that we can do when that comes up, but we're not quantifying what that will be. Phil Ng Okay. But let's say if you do see a little more inflation just given the current demand backdrop, do you feel comfortable that you have the ability to take some price, or you're going to have to manage through that, I guess, in the near term? Laurie Hough I think it depends on the region of the country. So keeping in mind that our plants ship within a 500 mile radius, generally without being too cost prohibitive on transportation. So ultimately the decision still lies on price with and at the plant level. We give them a guidance, but they have to measure competitively what's happening in their markets relative to consumer demand and pricing, more broadly. Phil Ng Okay, super. I guess a question for you, Tim on the Iseman transactions. Certainly you guys had great success with regional homes. Can you give us a little color on the opportunity here in terms of driving gross margins higher and some of the synergies. And then the $40 million number, is that all incremental? I just wasn't sure if you guys were selling to them already. Tim Larson Yeah, in terms of the $40 million, we are -- they are a key customer of ours today, but there's still meaningful opportunities to bring existing volume that they're doing with other providers to us, and we'll do that over time. In terms of the opportunities beyond that, one of the things we've learned this last year regional is in addition to the synergies, we can also drive accretive growth, which we did with regional and we certainly are prepared to do with Iseman. Ken and his team, they're a great team. There's an opportunity to collaborate with both of our organizations from what we've learned. And now we can bring some of the tools directly to them -- that team and directly to the consumer. So we're excited about that and opportunities with product. And so we've got a lot to build on with the success of regional, but also in a broader market in the midwest. And strategically, obviously, you see we've had a presence in the south and southeast, we're excited to expand that in the midwest. So those are opportunities for us. Phil Ng Would it be accretive gross margins out of gates, Tim? Tim Larson I think we'll get through that. We're just obviously announced today we're going to work through integration. We're seeing some things that are encouraging in that front, but we'll be back to you as we work through the acquisition. But we're excited to move to that integration phase next, and we anticipating closing this at the end of June. Phil Ng Okay, appreciate the color. Operator Jesse Lederman, Zelman & Associates. Jesse Lederman Hey, thanks for taking the questions. Laurie, I just want to clarify, so it sounds like the 25% to 26% gross margin guide, you're not seeing any impact from tariffs yet. Does that number include any baked in conservatism from potential inflation from tariffs or no? Laurie Hough It does not, no. Jesse Lederman Okay, thanks for clarifying that. I'm curious, when you talk about there -- you're seeing mixed shifts lower to either smaller size homes or less options and upgrades. Are you also seeing or you are able to quantify mixed shift from maybe buyers that would otherwise be buying an existing home that are now considering a manufactured home, maybe even a single section? Or do you -- is that something you can track? Is that something you expect? Maybe can you talk a little bit about what you're seeing at the larger size homes? Tim Larson Yeah, I think in terms of the market trends, we are seeing that smaller size, and that's driven more by price point and monthly payment, which speaks to the consumer environment. As far as new consumers coming in the category, I mentioned our efforts to pull in those consumers. And certainly those first time home buyers or buyers that are looking for entry level but a new home, that gives us the opportunity, so we're starting to see that. But I would say as an industry, one of the things we have to be focused on is how we attract even more new consumers, and that's why the actions with the administration, what we're doing with new products, and certainly the messaging around awareness are key, but now is a good environment to be doing that. Jesse Lederman Absolutely, and it sounds like there's some opportunity even just as industry to do some consumer education from a buying process perspective or financing perspective and kind of how the manufactured housing, home buying process works. So hopefully that's something that can be a tail end as well. One more for you, Tim, and the that you talked about the dealer portal that you've started to roll out. Can you talk a little bit about how that may work in practice and maybe some signs you're seeing into the effectiveness of that program. Thank you. Tim Larson Yeah, so it ties in tandem with our consumer platform at that we launched, that allows then their dealer to visibly see the leads that are coming through and to quickly respond to those and engage with those, and then also manage it downstream in the process with order status and being able to connect that to our plans. We also are able through that portal to give them the latest digital marketing tools and our capabilities that we can do nationally to support them. And so it starts to organize around the hub of how they work with Champion as a retailer and leverage the effectiveness. And so we're rolling it out in phases. The early responses were really good, but we see it as key to integrating the digital experience from the consumer to the retailer and to us as the OEM in an integrated way. Jesse Lederman Awesome, sounds very exciting. Thanks a lot. Operator Jay McCanless, Wedbush Securities. Jay McCanless Hey, good morning, everyone. Laurie, was hoping you could drill down more on the price competition. What markets specifically are seeing the price competition, and is it more focused on single section or double section homes? Laurie Hough Yeah, it varies, Jay. We are seeing a pickup actually in activity out west. We are seeing a little bit of slowness in Florida, as we mentioned, and then also in the northeast. We are seeing a shift to more single wides and smaller homes -- a smaller footprint home with less features and options. And as we mentioned, that'll have an impact on margins because our option content generally comes in at higher margins than the base price of the house. Jay McCanless Great, thanks. And then the second question, still haven't heard FEMA, I think ordering any homes, have you all heard anything recently from them, whether it be out west or some of the stuff in the Carolinas. Tim Larson Yeah, no orders of yet. Obviously we're working with them and to prepare for whenever they're ready for that, but we certainly are supportive whenever that occurs, but no orders at this point. Jay McCanless Okay, and then the last question for me, just kind of talk about where chattel rates went this this quarter versus last year and anything positive or negative you guys are seeing on credit availability for chattel? Laurie Hough Yeah, credit availability is pretty stable, Jay. And as far as rates, there's still about 150 to 200 basis points higher than the 30 year fixed for a well-qualified buyer. Jay McCanless Got it. Okay. Thanks, appreciate it. Operator (Operator Instructions) Daniel Moore, CJS Securities. Daniel Moore Thank you again. My follow-up was on Iseman was answered, but maybe just talk a little about the level of discussions with other regional dealer groups and maybe the M&A pipeline more generally. Tim Larson Yeah, I mean, we're not going to talk about specifics, but bigger picture, you look at our strategy and we've laid out those five priorities at the end of my remarks. Those are aligning how we're thinking about M&A, capital allocation. And certainly we're excited about Iseman, and we're going to focus on that execution integration, but certainly our strategy reflects where we want to put our capital going forward. Daniel Moore Okay, thanks again. Operator There are no further questions at this time. I would like to turn the floor back over to Tim for closing remarks. Tim Larson Well, obviously you can see in our first month here of operating the agility and action orientation that we have. I mean, if you think about we've had 26,000 homes wrapped up last year, which is the highest ever outside of one year of the pandemic, the acquisition of Iseman Homes we executed, and idling a couple of our plants, which is always a tough decision, but the right decision for fixed cost, launched our integrated digital platform that we talked about today. And we talked a bit about purchasing but we strengthened that team pretty notably, and that allows us to navigate this environment. We're advocating and advancing MH policy, and we had another $100 million for balance sheet, and obviously have that in addition to the stock that we repurchased. So as we go forward here, we're in a really strong position with our strategy and our team. We're going to continue to build on that and navigate this environment, and we really look forward to updating your progress, and thank you for your continued interest and thank you for joining us this morning. Thank you. Operator Thank you. This will conclude today's conference. You may disconnect your lines at this time, and thank you for your participation. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
27-05-2025
- Business
- Yahoo
Champion Homes Announces Definitive Agreement to Acquire Iseman Homes, Inc.
TROY, Mich., May 27, 2025--(BUSINESS WIRE)--Champion Retail Housing, a subsidiary of Champion Homes, Inc. (NYSE: SKY) (together, "Champion" or the "Company") today announced that it has entered into a definitive agreement to acquire Iseman Homes, Inc. and certain affiliated companies ("Iseman Homes") including its 10 retail sales centers in the Dakotas, Minnesota, Montana, Nebraska and Wyoming. This acquisition enhances Champion's ability to strengthen distribution from its nearby manufacturing facilities, furthering the Company's commitment to integrated growth. "We are excited to welcome the Iseman Homes team to the Champion family," said Tim Larson, President and Chief Executive Officer of Champion Homes. "Iseman has been a valued retail customer of Champion for many years. This acquisition underscores our long-term strategy to expand our retail footprint, deliver timely, market-relevant products and elevate the homebuying experience for our customers." Iseman Homes has operated successfully for years as an independent retailer, generating approximately $40 million in annual revenue. Its experienced management team will stay on, working closely with Champion to drive business growth. By aligning Iseman's strong local presence with Champion's captive retail best practices, the combined organization aims to deliver more seamless product integration and operational efficiencies. "Our experienced retail team is excited to join Champion," said Ken Ward, President of Iseman Homes. "We share a commitment to customer service and innovation and are excited to contribute to Champion's mission of advancing offsite construction and improving access to high-quality, affordable housing." The acquisition aligns with Champion's strategy to grow its vertically integrated model – connecting factory and customer through a stronger, streamlined retail channel. The completion of the acquisition is subject to the satisfaction or waiver of certain customary closing conditions and is expected to close during Champion's fiscal first quarter ending June 30, 2025. About Champion Homes, Inc.: Champion Homes, Inc. (NYSE: SKY) is a leading producer of factory-built housing in North America and employs approximately 9,000 people. With more than 70 years of homebuilding experience and 48 manufacturing facilities throughout the United States and western Canada, Champion Homes is well positioned with an innovative portfolio of manufactured and modular homes, ADUs, park-models and modular buildings for the single-family, multi-family, and hospitality sectors. In addition to its core home building business, Champion Homes provides construction services to install and set-up factory-built homes, operates a factory-direct retail business with 72 retail locations across the United States, and operates Star Fleet Trucking, providing transportation services to the manufactured housing and other industries from several dispatch locations across the United States. Champion Homes builds homes under some of the most well-known brand names in the factory-built housing industry including Skyline Homes, Champion Homes, Genesis Homes, Regional Homes, Athens Park Models, Dutch Housing, Atlantic Homes, Excel Homes, Homes of Merit, New Era, Redman Homes, ScotBilt Homes, Shore Park, Silvercrest, Titan Homes in the U.S. and Moduline and SRI Homes in western Canada. Forward-Looking Statements Statements in this press release, including certain statements regarding Champion Homes' strategic initiatives, and future market demand are intended to be covered by the safe harbor for "forward-looking statements" provided by the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally can be identified by use of words such as "believe," "expect," "future," "anticipate," "intend," "plan," "foresee," "may," "could," "should," "will," "potential," "continue," or other similar words or phrases. Similarly, statements that describe objectives, plans, or goals also are forward-looking statements. Such forward-looking statements involve inherent risks and uncertainties, many of which are difficult to predict and are generally beyond the control of Champion Homes. We caution readers that a number of important factors could cause actual results to differ materially from those expressed in, implied, or projected by such forward-looking statements. Risks and uncertainties include regional, national and international economic, financial, public health and labor conditions, and the following: supply-related issues, including prices and availability of materials; changes in U.S. trade policies, including tariffs or other trade protection measures; labor-related issues; inflationary pressures in the North American economy; the cyclicality and seasonality of the housing industry and its sensitivity to changes in general economic or other business conditions; demand fluctuations in the housing industry, including as a result of actual or anticipated increases in homeowner borrowing rates; the possible unavailability of additional capital when needed; competition and competitive pressures; changes in consumer preferences for our products or our failure to gauge those preferences; quality problems, including the quality of parts sourced from suppliers and related liability and reputational issues; data security breaches, cybersecurity attacks, and other information technology disruptions; the potential disruption of operations caused by the conversion to new information systems; the extensive regulation affecting the production and sale of factory-built housing and the effects of possible changes in laws with which we must comply; the potential impact of natural disasters on sales and raw material costs; the risks associated with mergers and acquisitions, including integration of operations and information systems; periodic inventory adjustments by, and changes to relationships with, independent retailers; changes in interest and foreign exchange rates; insurance coverage and cost issues; the possibility that all or part of our intangible assets, including goodwill, might become impaired; the possibility that all or part of our investment in ECN Capital Corp. ("ECN") might become impaired; the possibility that our risk management practices may leave us exposed to unidentified or unanticipated risks; the potential disruption to our business caused by public health issues, such as an epidemic or pandemic, and resulting government actions; and other risks set forth in the "Risk Factors" section, the "Legal Proceedings" section, the "Management's Discussion and Analysis of Financial Condition and Results of Operations" section, and other sections, as applicable, in our Annual Reports on Form 10-K, including our Annual Report on Form 10-K for the fiscal year ended March 29, 2025 previously filed with the Securities and Exchange Commission ("SEC"), as well as in our Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K, filed with or furnished to the SEC. If any of these risks or uncertainties materializes or if any of the assumptions underlying such forward-looking statements proves to be incorrect, then the developments and future events concerning Champion Homes set forth in this press release may differ materially from those expressed or implied by these forward-looking statements. You are cautioned not to place undue reliance on these statements, which speak only as of the date of this release. We anticipate that subsequent events and developments will cause our expectations and beliefs to change. Champion Homes assumes no obligation to update such forward-looking statements to reflect events or circumstances after the date of this document or to reflect the occurrence of unanticipated events, unless obligated to do so under the federal securities laws. View source version on Contacts Investor contact information: Name: Jason BlairEmail: jablair@ Phone: (248) 614-8211
