Skyline Champion Corporation has recently released its 10-K report, providing a comprehensive overview of its business operations and financial performance. The company, founded in 2010 and headquartered in Troy, Michigan, is a leading producer of factory-built housing in North America. It offers a range of housing solutions, including manufactured and modular homes, park models RVs, accessory dwelling units, and modular buildings for the multi-family and hospitality sectors. Skyline Champion operates 43 manufacturing facilities throughout the U.S. and 5 manufacturing facilities in western Canada, along with 74 sales centers that sell manufactured homes to consumers across the U.S.
The 10-K report also highlights the company's acquisitions and expansions. In fiscal 2023, Skyline Champion acquired Regional Homes, which operates three manufacturing facilities in Alabama and 44 retail sales centers across the Southeast U.S., significantly expanding its captive retail and manufacturing distribution in the region. The company also acquired 12 Factory Expo retail sales centers from Alta Cima Corporation and Manis Custom Builders, Inc., further expanding its manufacturing footprint and product offering in the Carolinas. Additionally, the report mentions the company's equity investment in ECN, which facilitated the creation of a captive finance company, Champion Financing, to provide factory-built home floor plan and consumer loans to retailers and homebuyers.
The 10-K report provides insights into the industry and company outlook, indicating that limited availability of existing homes for sale and the broader need for newly built affordable, single-family housing has continued to drive demand for new homes in the U.S. and Canadian markets. However, inflation and higher interest rates have impacted demand for the company's products. In fiscal 2024, Skyline Champion's net sales decreased by $581.7 million, or 22.3%, compared to fiscal 2023, with U.S. Factory-built Housing gross profit decreasing by $317.4 million, or 41.9%. The report attributes these declines to lower customer demand, lower production volume, and the impact of inflation and rising interest rates.
The market has reacted to these announcements by moving the company's shares -2.6% to a price of $68.76. For more information, read the company's full 10-K submission here.
