Skyline Champion Corp (NYSE:SKY) Q4 2020 Earnings Conference Call - Final Transcript

May 21, 2020 • 08:00 am ET

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Skyline Champion Corp (NYSE:SKY) Q4 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good morning and welcome to Skyline Champion Corporation's Fourth Quarter Fiscal Year 2020 Earnings Call. The company issued an earnings press release yesterday, after the close.

I would now like to introduce your host for today's call, Sarah Janowicz, the company's Director of Investor Relations and External Reporting. Sarah, please go ahead.

Executive
Sarah Janowicz

Good morning and thank you for participating in our earnings call to discuss our fourth quarter and full-year results. We will also provide an update on current business conditions and how the company is navigating the COVID-19 pandemic. Joining me on today's call is Mark Yost, President and CEO, and Laurie Hough, EVP and CFO.

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 our expectations and projections. Such risks and uncertainties include the factors set forth in the earnings release and in our filings with the Securities and Exchange Commission. Additionally, during today's call, we will discuss non-GAAP measures, which we believe can be useful in evaluating our performance. A reconciliation of these measures can be found in the earnings release.

I would now like to turn the call over to Mark.

Executive
Mark Yost

Thank you, Sarah, and good morning, everyone.

To begin, I hope everyone on this call and their families are well as we navigate the COVID-19 pandemic. I am proud of the resiliency of our team during this challenging time. The health and safety of our employees and our customers remain our highest priority. Today, I will briefly talk about our full-year and fourth quarter results, then provide you an update on the activity so far in our first fiscal quarter and thoughts about the balance of the year.

I'm pleased with the results Skyline Champion delivered in fiscal 2020. We grew adjusted EBITDA by 18% to $114 million for the year. We improved safety and turnover, increased margins, realized our run rate synergies from last year's merger, finished the integration of the company's IT systems, completed the implementation of Sarbanes-Oxley, invested in our people, automation and digital go-to-market platform, as well as launched our Genesis brand of products. I am proud and appreciative of our team for their accomplishments this year.

Turning to the fourth quarter. Revenue was down 8%, primarily due to the temporary idling of 24 factories in the final weeks of March and outsized industry growth in regions where we do not currently have a significant presence.

With the COVID-19-related government restrictions and stay-at-home orders in the U.S., our customers canceled approximately 150 units and placed on hold an additional 250 units, in addition to the impact of the temporary idling of plants which reduced production by between 200 units and 250 units in the U.S.

The U.S. HUD market rebounded during the quarter, growing 13%, with strong growth in the mid-southern markets. Even