Skyline Champion Corporation (NYSE:SKY) Q3 2023 Earnings Conference Call February 7, 2023 9:00 AM ET
Company Participants
Mark Yost - President and CEO
Laurie Hough - CFO
Conference Call Participants
Dan Moore - CJS Securities
Greg Palm - Craig-Hallum Capital Group
Phil Ng - Jefferies
Jay McCanless - Wedbush Securities
Matthew Bouley - Barclays
Mike Dahl - RBC Capital Markets
Operator
Good morning, and welcome to Skyline Champion Corporation's Third Quarter Fiscal 2023 Earnings Call. The company issued an earnings press release yesterday after close. I would like to remind everybody that yesterday'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 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 we believe can be useful in evaluating its commission -- 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 third quarter highlights and then provide an update on activity so far in our fourth quarter and the year ahead. I'm pleased to report another solid quarter as we delivered year-over-year growth in sales and profitability despite our strong performance in the prior year period.
During the third quarter, we grew net sales by 9% and EBITDA by 13%, expanding margins by 60 basis points. Margins began to normalize now that the impact of FEMA unit sales have been fully realized and our product mix began to shift to achieve a more affordable monthly payment for our customers. We remain steadfast on our key areas of focus, enhancing the customer experience, streamlining our product offerings and transforming the way homes are built and bought.
Over the past few quarters, we have seen significant progress in normalizing our backlog because of stronger production capabilities, dealer destocking inventories and easing of supply chain challenges. The backlog at the end of the quarter was down $282 million to $532 million or 35% compared to the September quarter. Lead times improved during the quarter to 13 weeks compared to 19 weeks at the end of September.