Skyline Champion Corporation (NYSE:SKY) Q2 2023 Earnings Conference Call November 2, 2022 9:00 AM ET

Company Participants

Mark Yost - President and CEO

Laurie Hough - Executive Vice President and CFO

Conference Call Participants

Greg Palm - Craig-Hallum Capital Group

Daniel Moore - CJS Securities

Matthew Bouley - Barclays

Phil Ng - Jefferies

Mike Dahl - RBC Capital Markets

Jay McCanless - Wedbush

Operator

Good morning, and welcome to Skyline Champion Corporation's Second Quarter Fiscal 2023 Earnings Call. The company issued an earnings press release yesterday after the close. I would like to remind everyone 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 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 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 second quarter highlights, then provide an update on activities so far in our third quarter and wrap up with thoughts about the balance of the year.

I am pleased to share that our team once again delivered strong profitability metrics this quarter including new highs for home closings, gross margin and earnings per share. We achieved these results despite supply chain challenges as well as the short-term impacts from Hurricane Ian. Thankfully, our team members and plants came through the storm safely and we are thinking of all those impacted.

During the second quarter, we grew net sales by 54% and EBITDA by 170% expanding margins by more than 1,000 basis points. Our strong performance continues to be driven by initiatives focused on enhancing the customers' buying experience and improving operating efficiencies to protect our margins. The team's hard work and operational efficiency in completing the FEMA Disaster Relief Housing order also contributed to this quarter's overperformance.