Skyline Champion Corporation (NYSE:SKY) Q2 2024 Earnings Conference Call November 1, 2023 9:00 AM ET

Company Participants

Mark Yost - President & Chief Executive Officer

Laurie Hough - Executive Vice President & Chief Financial Officer

Conference Call Participants

Greg Palm - Craig-Hallum Capital Group

Daniel Moore - CJS Securities

Phil Ng - Jefferies

Christopher Kalata - RBC Capital Markets

Operator

Good morning, and welcome to Skyline Champion Corporation Second Quarter Fiscal 2024 Earnings Call. The company issued an earnings press release yesterday after the close.

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 am pleased to be joined on this call by Laurie Hough, EVP and CFO.

Today, I will briefly talk about our second quarter highlights and then provide an update on activities so far in our third quarter and conclude with our thoughts on the balance of the year.

We saw healthy demand from end consumers through our captive and independent retail channels. Community REIT channel saw continued as expected through the September quarter as our RIT partners worked through their backlog of existing new home inventory before placing new orders.

This pause in the community ordering, combined with the absence of FEMA related sales that were in the second quarter of last year drove our year-over-year declines in both production and revenue. Backlog as of September 30th was $258 million compared to $260 million at the end of the June quarter as sequential quarterly unit increases were offset by decreases in price.

Average lead times of 8 weeks have normalized within our local range of 4 to 12 weeks and are consistent with lead times at the end of the first quarter.