Manufactured housing and park model builder Skyline Champion Corp. reported its financial results for the fourth quarter and full year, ended March 30.
Net sales in the fourth quarter increased 23% to $327.7 million while net income was $9.2 million compared to a net loss of $2.3 million.
For the full year, net sales increased 28% to $1.3 million while the company incurred a net loss of $58.2 million compared to net income of $15.8 million. The year-over-year decline includes $101.4 million in non-cash, equity-based compensation expense.
Fourth quarter highlights include:
• Total homes sold increased 13% to 5,066.
• Gross profit as a percent of sales expanded by 395 basis points to 20.3%
• EPS was 16 cents per diluted share. Excluding non-recurring expenses, adjusted EPS was 26 per share.
• Adjusted EBITDA increased 86% to $24.2 million.
Highlights for the full year include:
• Total homes sold increased 19% to 20,675.
• Gross profit as a percent of sales expanded by 140 basis points to 18%.
• Adjusted EBITDA increased 50% to $97.1 million.
• Net operating cash flows of $65.2 million
“Fiscal 2019 was a truly significant year as we brought together two great companies to form Skyline Champion,” said CEO Keith Anderson. “We made meaningful progress in our integration, while also delivering impressive growth and operational improvement.”
He added, “The company is on track with our previously announced capacity expansions in Pennsylvania and Louisiana as well as our strategic initiatives to continue to drive future value for our employees, customers and shareholders. While we experienced some demand softness during the fourth quarter due in part to weather and retail inventory levels, we were able to generate strong year-over-year margin expansion, and we believe the longer-term demand environment remains healthy as we look into fiscal 2020.”