Skyline Champion Corp (NYSE:SKY) Q1 2021 Earnings Conference Call - Final Transcript

Jul 30, 2020 • 08:00 am ET

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Skyline Champion Corp (NYSE:SKY) Q1 2021 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good morning and welcome to Skyline Champion Corporation's First Quarter Fiscal 2021 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, you may begin.

Executive
Sarah Janowicz

Good morning and thank you for participating in our earnings call to discuss our first quarter results. 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. Today, I will briefly talk about our first quarter results progress on our strategic initiatives and then provide you with an update on activity so far in our second fiscal quarter and thoughts about the balance of the. Let me begin by saying that I am pleased to report better results for our first fiscal quarter than I was originally expecting when we last reported results in May. Despite a 26.5% reduction in revenue, the team adapted well and executed well to take care of our people and our customers. As a result, we preserved margins and operating cash flows these unprecedented times. As we mentioned on our last earnings call, we temporarily idled many plants late in March and resumed operations at all, but one of our facilities by Memorial Day. As we moved through the back half of the first quarter, demand improved even as some of our geographies lagged and our order volumes increased. We have seen steady increase in production levels since the beginning of the first quarter and we're back to approximately 90% of last 's levels in June.

During the month of July strong order rates have continued, exceeding prior levels by over 50%. Recently we have seen strong over order increases across most of our markets due to pent-up demand caused by government ordered shutdowns early in the spring selling season, strong demand for affordable housing, as well as lower comps last, due to the inventory destocking and manufactured housing insurance. Our backlog grew by $65 million during the first quarter $292 million from $127 million at the end of March 2020. As a basis of comparison, our backlog grew $10 million during the same period of the prior. There are two factors contributing to