Skyline Champion Corporation (NYSE:SKY) Q1 2024 Earnings Conference Call August 2, 2023 9:00 AM ET

Company Participants

Mark Yost - President & Chief Executive Officer

Laurie Hough - Executive Vice President & Chief Financial Officer

Conference Call Participants

Elizabeth Langan - Barclays

Phil Ng - Jefferies

Chris Kalata - RBC Capital Markets

Greg Palm - Craig-Hallum Capital Group

Operator

Good morning, and welcome to Skyline Champion Corporation's First Quarter Fiscal 2024 Earnings Call. The company issued an earnings press release this morning. I would like to remind everyone that today's press release and statements made during this call include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.

These statements are subject to risks and uncertainties that could cause actual results to differ materially from the company's expectations and projections. Such risks and uncertainties include the factors set forth in the earnings release and in the company's filings with the Securities and Exchange Commission. Additionally, during today's call, the company will discuss non-GAAP measures, which it believes can be useful in evaluating its performance. A reconciliation of these measures can be found in the earnings release.

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

Mark Yost

Thank you for joining our earnings call, and good morning everyone. I'm pleased to be joined on this call by Laurie Hough, EVP and CFO.

Today, I will briefly talk about our first quarter highlights, and then provide an update on activities so far in our second quarter, and conclude with our thoughts on the balance of the year. For the quarter, we delivered more than 5,000 homes, as we saw healthy demand from end consumers, and a return to growth in our retail sales channel. Despite good retail order intake, we are still seeing a pause in the community REIT channel, as they continue to set and finish their backlog of existing new home inventory.

We expect this to continue through the end of our fiscal second quarter. The short-term pause in community ordering combined with the absence of FEMA-related sales, that were in our first quarter of last year drove year-over-year declines in both, production and revenue. In the current environment we, are aligning our plant production with order rates by channel. As a result of reduced volume leverage, margins continued to normalize to fiscal 2022 levels.