Skyline Champion Corporation (NYSE:SKY) Q1 2023 Earnings Conference Call August 3, 2022 9:00 AM ET

Company Participants

Mark Yost - President and Chief Executive Officer

Laurie Hough - EVP and Chief Financial Officer

Conference Call Participants

Greg Palm - Craig-Hallum Capital Group

Matthew Bouley - Barclays

Mike Dahl - RBC Capital Markets

Phil Ng - Jefferies

Peter Lukas - CJS Securities

Jay McCanless - Wedbush

Operator

Good morning and welcome to Skyline Champion Corporation’s First 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 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. Joining me on the call is Laurie Hough, EVP and CFO. Today, I will briefly talk about our first quarter highlights, then provide an update on activity so far in our second quarter and wrap-up with thoughts about the balance of the year.

Following a very strong fourth quarter and an excellent year, we are pleased to report that Fiscal 2023 is off to a strong start. During the first quarter, we grew net sales by 42% and adjusted EBITDA by 159%, expanding margins by more than 1,000 basis points. Our solid performance continues to be driven by initiatives focused on increasing production levels through improved operations, added capacity to satisfy the demand for our products.

During the quarter, we continued our progress with these efforts in addition to the production of disaster relief housing for FEMA, pricing tailwinds and disciplined cost management. Production volumes were up again on a year-over-year basis as our focus on product rationalization is leading to increased output, which allowed us to reduce backlogs on a sequential basis.