TROY, Mich. - Skyline Champion Corporation (NYSE: NYSE:SKY), a prominent North American factory-built housing company, disclosed its financial results for the fourth quarter and the full fiscal year ending March 30, 2024. The company saw a 9.1% increase in net sales to $536.4 million in the last quarter, compared to the same period in the previous year. U.S. homes sold during the quarter rose by 15.3% to 5,652 units. However, the average selling price per U.S. home sold fell by 3.1% to $89,800.
Despite increased sales, the company faced challenges, including a significant contraction in gross profit margin, which dropped by 1,040 basis points to 18.3%. The decrease was partly due to $34.5 million in estimated remediation costs for water intrusion issues in homes sold prior to fiscal 2022. Adjusted net income fell by 37.7% to $36.0 million, with adjusted earnings per share down 38.6% to $0.62.
For the full fiscal year 2024, net sales decreased by 22.3% to $2.0 billion, and gross profit margin saw a contraction of 740 basis points to 24.0%. Net income plummeted by 63.5% to $146.7 million, and adjusted EBITDA dropped by 55.0% to $245.3 million. The decline in net sales was primarily due to lower home sales and the absence of FEMA-related sales recorded in the previous fiscal year.
Despite these setbacks, Skyline Champion's President and CEO, Mark Yost, remarked on the transformative nature of the fiscal year, highlighting strategic investments and market presence expansion. He also pointed out the company's efforts to address production efficiencies and cater to builder developer demand.
Additionally, Skyline Champion announced a new share repurchase program for up to $100 million of the company's common stock. Yost expressed confidence in the program, reflecting the company's commitment to shareholder value and ongoing investments in strategic growth opportunities.
InvestingPro Insights
As Skyline Champion Corporation (NYSE: SKY) navigates a challenging fiscal year with a mix of strategic investments and market adjustments, insights from InvestingPro reveal a nuanced financial landscape for the company. With a market cap of approximately $4.49 billion, Skyline Champion holds a price-to-earnings (P/E) ratio of 21.96, reflecting investor expectations of future earnings. The company's price-to-book (P/B) ratio stands at 3.16, suggesting that the market values the company at a premium to its book value.
Despite reporting a significant decrease in net sales and gross profit margins for the fiscal year 2024, Skyline Champion's financial health is underpinned by certain strengths. According to InvestingPro Tips, the company holds more cash than debt on its balance sheet, and its liquid assets exceed its short-term obligations. These metrics indicate a robust liquidity position that can help Skyline Champion navigate short-term financial challenges.
Investors looking for deeper analysis on Skyline Champion Corporation can find 11 additional InvestingPro Tips by visiting https://www.investing.com/pro/SKY. These tips provide valuable insights into sales projections, net income expectations, and stock price volatility, among other key financial aspects. For those interested in leveraging the full suite of InvestingPro tools and tips, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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