Document and Entity Information
Document and Entity Information - shares shares in Thousands | 9 Months Ended | |
Dec. 30, 2023 | Jan. 25, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Dec. 30, 2023 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | Skyline Champion Corporation | |
Entity Central Index Key | 0000090896 | |
Current Fiscal Year End Date | --04-01 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 57,753,517 | |
Entity File Number | 001-04714 | |
Entity Tax Identification Number | 35-1038277 | |
Entity Address, Address Line One | 755 West Big Beaver Road | |
Entity Address, Address Line Two | Suite 1000 | |
Entity Address, City or Town | Troy | |
Entity Address, State or Province | MI | |
Entity Address, Postal Zip Code | 48084 | |
City Area Code | 248 | |
Local Phone Number | 614-8211 | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | SKY | |
Security Exchange Name | NYSE | |
Entity Incorporation, State or Country Code | IN | |
Entity Interactive Data Current | Yes | |
Document Transition Report | false | |
Document Quarterly Report | true |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 30, 2023 | Apr. 01, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 497,907 | $ 747,453 |
Trade accounts receivable, net | 48,659 | 67,296 |
Inventories, net | 290,542 | 202,238 |
Other current assets | 33,057 | 26,479 |
Total current assets | 870,165 | 1,043,466 |
Long-term assets: | ||
Property, plant, and equipment, net | 287,708 | 177,125 |
Goodwill | 359,260 | 196,574 |
Amortizable intangible assets, net | 79,320 | 45,343 |
Deferred tax assets | 22,255 | 17,422 |
Other noncurrent assets | 250,711 | 82,794 |
Total assets | 1,869,419 | 1,562,724 |
Current liabilities: | ||
Floorplan payable | 80,389 | 0 |
Accounts payable | 43,810 | 44,702 |
Other current liabilities | 215,098 | 204,215 |
Total current liabilities | 339,297 | 248,917 |
Long-term liabilities: | ||
Long-term debt | 24,663 | 12,430 |
Deferred tax liabilities | 6,867 | 5,964 |
Other liabilities | 76,634 | 62,412 |
Total long-term liabilities | 108,164 | 80,806 |
Stockholders' Equity: | ||
Common stock, $0.0277 par value, 115,000 shares authorized 57,636 and 57,108 shares issued as of December 30, 2023 and April 1, 2023, respectively | 1,600 | 1,585 |
Additional paid-in capital | 563,019 | 519,479 |
Retained earnings | 868,598 | 725,672 |
Accumulated other comprehensive loss | (11,259) | (13,735) |
Total stockholders' equity | 1,421,958 | 1,233,001 |
Total liabilities and stockholders' equity | $ 1,869,419 | $ 1,562,724 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 30, 2023 | Apr. 01, 2023 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 0.0277 | $ 0.0277 |
Common stock, shares authorized | 115,000,000 | 115,000,000 |
Common stock, shares issued | 57,636,000 | 57,108,000 |
Condensed Consolidated Income S
Condensed Consolidated Income Statements - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Dec. 30, 2023 | Dec. 31, 2022 | |
Income Statement [Abstract] | ||||
Net sales | $ 559,455 | $ 582,322 | $ 1,488,460 | $ 2,115,028 |
Cost of sales | 418,183 | 408,233 | 1,101,026 | 1,437,498 |
Gross profit | 141,272 | 174,089 | 387,434 | 677,530 |
Selling, general, and administrative expenses | 85,091 | 71,820 | 219,984 | 228,017 |
Operating income | 56,181 | 102,269 | 167,450 | 449,513 |
Interest (income), net | (4,309) | (5,409) | (24,090) | (7,293) |
Other expense (income) | 756 | 0 | 2,821 | (634) |
Income before income taxes | 59,734 | 107,678 | 188,719 | 457,440 |
Income tax expense | 12,764 | 24,865 | 44,811 | 113,384 |
Net income | $ 46,970 | $ 82,813 | $ 143,908 | $ 344,056 |
Net income per share: | ||||
Basic | $ 0.81 | $ 1.45 | $ 2.51 | $ 6.04 |
Diluted | $ 0.81 | $ 1.44 | $ 2.49 | $ 6 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Dec. 30, 2023 | Dec. 31, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 46,970 | $ 82,813 | $ 143,908 | $ 344,056 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments | 2,408 | 1,008 | 2,476 | (6,591) |
Total comprehensive income | $ 49,378 | $ 83,821 | $ 146,384 | $ 337,465 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Dec. 30, 2023 | Dec. 31, 2022 | |
Cash flows from operating activities | ||
Net income | $ 143,908 | $ 344,056 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 24,017 | 19,341 |
Amortization of deferred financing fees | 255 | 266 |
Equity-based compensation | 15,231 | 11,631 |
Deferred taxes | (3,115) | 3,581 |
Loss (gain) on disposal of property, plant, and equipment | 145 | (143) |
Foreign currency transaction loss | (184) | 844 |
Loss on equity method investment | 217 | 0 |
Change in assets and liabilities: | ||
Accounts receivable | 39,340 | 42,847 |
Floor plan receivables | (4,978) | 0 |
Inventories | 47,696 | 30,470 |
Other assets | (10,756) | (9,895) |
Accounts payable | (15,309) | (52,663) |
Accrued expenses and other liabilities | (17,850) | (26,291) |
Net cash provided by operating activities | 218,617 | 364,044 |
Cash flows from investing activities | ||
Additions to property, plant, and equipment | (40,986) | (38,177) |
Cash paid for equity method investment | (2,250) | 0 |
Cash paid for investment in ECN common stock | (78,858) | 0 |
Cash paid for investment in ECN preferred stock | (64,520) | 0 |
Investment in floor plan loans | (18,466) | 0 |
Proceeds from floor plan loans | 14,646 | 0 |
Acquisitions, net of cash acquired | (284,545) | (6,810) |
Proceeds from disposal of property, plant, and equipment | 556 | 224 |
Net cash used in investing activities | (474,423) | (44,763) |
Cash flows from financing activities | ||
Changes in floor plan financing, net | 4,474 | (35,460) |
Payments on long term debt | (67) | 0 |
Stock option exercises | 506 | 596 |
Tax payments for equity-based compensation | (983) | (1,363) |
Net cash provided by (used in) financing activities | 3,930 | (36,227) |
Effect of exchange rate changes on cash and cash equivalents | 2,330 | (6,019) |
Net (decrease) increase in cash and cash equivalents | (249,546) | 277,035 |
Cash and cash equivalents at beginning of period | 747,453 | 435,413 |
Cash and cash equivalents at end of period | $ 497,907 | $ 712,448 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss [Member] |
Beginning balance at Apr. 02, 2022 | $ 825,113 | $ 1,573 | $ 502,846 | $ 327,902 | $ (7,208) |
Beginning balance, shares at Apr. 02, 2022 | 56,838,000 | ||||
Net income | 344,056 | 344,056 | |||
Equity-based compensation | 11,631 | 11,631 | |||
Net common stock issued under equity-based compensation plans | (767) | $ 7 | 651 | (1,425) | |
Net common stock issued under equity-based compensation plans, shares | 87,000 | ||||
Foreign currency translation adjustments | (6,591) | (6,591) | |||
Ending balance at Dec. 31, 2022 | 1,173,442 | $ 1,580 | 515,128 | 670,533 | (13,799) |
Ending balance, shares at Dec. 31, 2022 | 56,925,000 | ||||
Beginning balance at Oct. 01, 2022 | 1,085,743 | $ 1,580 | 511,250 | 587,720 | (14,807) |
Beginning balance, shares at Oct. 01, 2022 | 56,925,000 | ||||
Net income | 82,813 | 82,813 | |||
Equity-based compensation | 3,878 | 3,878 | |||
Foreign currency translation adjustments | 1,008 | 1,008 | |||
Ending balance at Dec. 31, 2022 | 1,173,442 | $ 1,580 | 515,128 | 670,533 | (13,799) |
Ending balance, shares at Dec. 31, 2022 | 56,925,000 | ||||
Beginning balance at Apr. 01, 2023 | 1,233,001 | $ 1,585 | 519,479 | 725,672 | (13,735) |
Beginning balance, shares at Apr. 01, 2023 | 57,108,000 | ||||
Net income | 143,908 | 143,908 | |||
Equity-based compensation | 15,231 | 15,231 | |||
Net common stock issued under equity-based compensation plans | (510) | $ 2 | 470 | (982) | |
Net common stock issued under equity-based compensation plans, shares | 73,000 | ||||
Common stock issued for business combination | 27,852 | $ 13 | 27,839 | ||
Common stock issued for business combination, shares | 455,000 | ||||
Foreign currency translation adjustments | 2,476 | 2,476 | |||
Ending balance at Dec. 30, 2023 | 1,421,958 | $ 1,600 | 563,019 | 868,598 | (11,259) |
Ending balance, shares at Dec. 30, 2023 | 57,636,000 | ||||
Beginning balance at Sep. 30, 2023 | 1,340,193 | $ 1,587 | 530,645 | 821,628 | (13,667) |
Beginning balance, shares at Sep. 30, 2023 | 57,162,000 | ||||
Net income | 46,970 | 46,970 | |||
Equity-based compensation | 4,288 | 4,288 | |||
Net common stock issued under equity-based compensation plans | 247 | 247 | |||
Net common stock issued under equity-based compensation plans, shares | 19,000 | ||||
Common stock issued for business combination | 27,852 | $ 13 | 27,839 | ||
Common stock issued for business combination, shares | 455,000 | ||||
Foreign currency translation adjustments | 2,408 | 2,408 | |||
Ending balance at Dec. 30, 2023 | $ 1,421,958 | $ 1,600 | $ 563,019 | $ 868,598 | $ (11,259) |
Ending balance, shares at Dec. 30, 2023 | 57,636,000 |
Basis of Presentation and Busin
Basis of Presentation and Business | 9 Months Ended |
Dec. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Business | 1. Basis of Presentation and Business Nature of Operations: Skyline Champion Corporation's (the “Company”) operations consist of manufacturing, retail, construction services, and transportation activities. At December 30, 2023, the Company operated 43 manufacturing facilities throughout the United States (“U.S.”) and five manufacturing facilities in western Canada that primarily construct factory-built, timber-framed manufactured and modular houses that are sold primarily to independent retailers, builders/developers, and manufactured home community operators. In addition to its core home building business, the Company provides construction services to install and set-up factory-built homes. The Company’s retail operations consist of 73 sales centers that sell manufactured houses to consumers across the U.S. The Company’s transportation business engages independent owners/drivers to transport recreational vehicles throughout the U.S. and Canada and manufactured houses in certain regions of the U.S. The Company also has a holding company located in the Netherlands. Basis of Presentation: The accompanying unaudited condensed consolidated financial statements of the Company have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) for Quarterly Reports on Form 10-Q and Article 10 of SEC Regulation S-X. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with United States Generally Accepted Accounting Principles (“U.S. GAAP”) have been condensed or omitted pursuant to such rules and regulations. The condensed consolidated financial statements include the accounts of the Company and its majority-owned subsidiaries after elimination of intercompany balances and transactions. In the opinion of management, these statements include all normal recurring adjustments necessary to fairly state the Company’s consolidated results of operations, cash flows, and financial position. The Company has evaluated subsequent events after the balance sheet date through the date of the filing of this report with the SEC. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes to the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K, which was filed with the SEC on May 30, 2023 (the “Fiscal 2023 Annual Report”). The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and the accompanying notes thereto. Actual results could differ from those estimates. The condensed consolidated income statements, condensed consolidated statements of comprehensive income, and condensed consolidated statements of cash flows for the interim periods are not necessarily indicative of the results of operations or cash flows for the full year. The Company’s fiscal year is a 52- or 53-week period that ends on the Saturday nearest to March 31. The Company’s current fiscal year, “fiscal 2024,” will end on March 30, 2024 and will include 52 weeks. References to “fiscal 2023” refer to the Company’s fiscal year ended April 1, 2023. The three and nine months ended December 30, 2023 and December 31, 2022 each included 13 and 39 weeks, respectively. The Company’s allowance for credit losses on financial assets measured at amortized cost reflects management’s estimate of credit losses over the remaining expected life of such assets, measured primarily using historical experience, as well as current economic conditions and forecasts that affect the collectability of the reported amount. Expected credit losses for newly recognized financial assets, as well as changes to expected credit losses during the period, are recognized in earnings. Accounts receivable are reflected net of reserves of $ 1.7 million at both December 30, 2023 and April 1, 2023. Floor plan receivables consist of loans the Company purchased from Triad Financial Services, Inc. ("Triad") in the first quarter of fiscal 2024 for $ 18.5 million, of which approximately $ 3.8 million remains outstanding at December 30, 2023 , and amounts loaned by the Company through that financial institution to certain independent retailers for purchases of homes manufactured by the Company, of which $ 5.2 million was outstanding at December 30, 2023, both of which are carried net of payments received and recorded at amortized cost. The Company intends to hold the floor plan receivables until maturity or payoff. These loans are serviced by the financial institution, to which we pay a servicing fee. Upon execution of the financing arrangement, the loans are generally payable at the earlier of the sale of the underlying home or two years from the origination date. At December 30, 2023, floor plan receivables are included in Other Current Assets and Other Noncurrent Assets in the Condensed Consolidated Balance Sheets. The floor plan receivables are collateralized by the related homes, mitigating loss exposure. The Company and the financial institution evaluate the credit worthiness of each independent retailer prior to credit approval, including reviewing the independent retailer’s payment history, financial condition, and the overall economic environment. We evaluate the risk of credit loss in aggregate on existing loans with similar terms, based on historic experience and current economic conditions, as well as individual retailers with past due balances or other indications of heightened credit risk. The allowance for credit losses related to floor plan receivables was not material as of December 30, 2023. Loans are considered past due if any required interest or curtailment payment remains unpaid 30 days after the due date. Receivables are placed on non-performing status if any interest or installment payments are past due over 90 days. Loans are placed on nonaccrual status when interest payments are past due over 90 days. At December 30, 2023 , there were no floor plan receivables on nonaccrual status and the weighted-average age of the floor plan receivables was eight months. Interest income from floor plan receivables is recognized on an accrual basis and is included in Interest Income in the accompanying Condensed Consolidated Income Statements. Interest income from floor plan receivables for the three and nine months ended December 30, 2023 was $ 0.3 million and $ 0.9 million, respectively. There were no floor plan receivables as of December 31, 2022 or related interest income for the three and nine months then ended. Recently issued accounting pronouncements: In November 2023, the FASB issued Accounting Standards Update ("ASU") 2023-07, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures" , which expands disclosures about a public entity’s reportable segments and requires more enhanced information about a reportable segment’s expenses, interim segment profit or loss, and how a public entity’s chief operating decision maker uses reported segment profit or loss information in assessing segment performance and allocating resources. The update will be effective for annual periods beginning after December 15, 2023 (fiscal 2025). We are assessing the effect of this update on our consolidated financial statements and related disclosures. In December 2023, the FASB issued ASU 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures" , which expands disclosures in an entity’s income tax rate reconciliation table and regarding cash taxes paid both in the U.S. and foreign jurisdictions. The update will be effective for annual periods beginning after December 15, 2024 (fiscal 2026). We are assessing the effect of this update on our consolidated financial statements and related disclosures. |
Business Combinations
Business Combinations | 9 Months Ended |
Dec. 30, 2023 | |
Business Combinations [Abstract] | |
Business Combinations | 2. Business Combinations Regional Homes Acquisition On October 13, 2023 , the Company acquired all of the outstanding equity interests in Regional Enterprises, LLC and related companies (collectively, "Regional Homes") for total purchase consideration of $ 350.9 million, net of assumed indebtedness and preliminary working capital adjustments. The purchase consideration consisted of cash of $ 317.2 million, the issuance of 455,098 shares of common stock equal to approximately $ 27.9 million, and contingent consideration with an estimated fair value of $ 5.9 million. The contingent consideration is related to an earnout provision in the event certain conditions are met per the terms of the purchase agreement, with a maximum earnout amount of $ 25.0 million. The initial fair value of the earnout was established using a Monte Carlo simulation method and the resulting liability is recorded in Other Liabilities in the accompanying condensed consolidated balance sheets. Subsequent to the acquisition date, the Company adjusted the preliminary purchase price by $ 5.0 million pursuant to the working capital provisions included within the purchase agreement. The Company accounted for the acquisition as a business combination under the acquisition method of accounting provided by FASB ASC 805, Business Combinations ("ASC 805"). As such, the purchase price was allocated to the net assets acquired, inclusive of intangible assets, with the excess fair value recorded to goodwill. The purchase price allocation is based upon preliminary valuation information available to determine the fair value of certain assets and liabilities, including goodwill, and is subject to change as additional information is obtained about the facts and circumstances that existed at the valuation date. The Company expects to finalize the fair values of the assets acquired and liabilities assumed during the one-year measurement period. The following table presents the consideration transferred and the preliminary purchase price allocation as of December 30, 2023: Description Amount Fair value of consideration transferred Fair value of Skyline Champion common stock issued as consideration ( 455,098 shares at $ 61.20 ) $ 27,852 Cash consideration 317,164 Preliminary working capital adjustment 5,000 Estimated earn out consideration 5,904 Total consideration $ 355,920 Preliminary purchase price allocations: Cash and cash equivalents $ 37,619 Trade accounts receivable 20,654 Inventories 135,669 Other current assets 3,212 Property, plant, and equipment, 86,174 Amortizable intangible assets 41,800 Other noncurrent assets 9,199 Floorplan payable ( 75,916 ) Accounts payable ( 14,427 ) Other current liabilities ( 35,452 ) Long-term debt ( 12,233 ) Other liabilities ( 3,065 ) Identifiable net assets acquired 193,234 Goodwill 162,686 Total purchase price $ 355,920 Goodwill, which is deductible for income tax purposes, is primarily attributable to expected synergies from the combination of companies and was allocated to reporting units within the Company's U.S. Factory-built Housing segment, which includes its U.S. manufacturing and retail operations. Cash, trade accounts receivable, other assets, floor plan and accounts payable, long-term debt and other liabilities are generally stated at historical carrying values as they approximate fair value. Retail inventories are reflected at manufacturer wholesale prices. Intangible assets include $ 16.9 million in customer relationships and $ 24.9 million in trade names and are based on an independent appraisal. The fair value of customer relationships was determined using the multi-period excess earnings method and fair value of the trade name was determined using the relief-from-royalty method. The Company estimates that each intangible asset has a weighted average useful life of ten years from the acquisition date. Fair value estimates of property, plant, and equipment were based on independent appraisals, giving consideration to the highest and best use of the assets. Key assumptions used in the appraisals were drawn from a combination of market, cost, and sales comparison approaches, as appropriate. Level 3 fair value estimates of $ 86.2 million related to property, plant, and equipment and $ 41.8 million related to intangible assets were recorded in the accompanying consolidated balance sheet as of the acquisition date. For further information on acquired assets measured at fair value, see Note 5, Goodwill and Intangible Assets. The acquisition of Regional Homes was a taxable business combination. Therefore, the Company’s tax basis in the assets acquired and the liabilities assumed approximate the respective fair values at the acquisition date. The Company's consolidated net sales and net income for the three and nine months ended December 30, 2023 included $ 119.7 million and $ 5.7 million, respectively, from Regional Homes. The following unaudited pro forma information presents a summary of the operating results as if the acquisition of Regional Homes had been completed on April 3, 2022, which is the beginning of the comparable annual reporting period: Three months ended Nine months ended December 30, 2023 December 31, 2022 December 30, 2023 December 31, 2022 Pro forma net sales $ 568,045 $ 679,444 $ 1,750,936 $ 2,492,411 Pro forma net income $ 47,058 $ 87,672 $ 159,351 $ 379,416 The pro forma results for the three and nine months ended December 30, 2023 and December 31, 2022 reflect amortization of intangible assets, depreciation of property, plant and equipment, reduction of interest expense to reflect the new capital structure, elimination of sales between the Company and Regional Homes, the impact of the fair value step up of Regional Homes' inventory, and the tax effects of the related adjustments. The unaudited pro forma financial information has been prepared for comparative purposes only and it is not necessarily indicative of the results of operations as they would have been had the acquisition occurred on the assumed date, nor is it necessarily an indication of future operating results. Other Acquisitions In May 2022, the Company acquired certain operating assets from Manis Custom Builders, Inc. ("Manis"). In July 2022, the Company acquired 12 Factory Expo retail sales centers from Alta Cima Corporation. The purchase price and net assets acquired for both transactions were not material to the accompanying condensed consolidated financial statements. |
Inventories, Net
Inventories, Net | 9 Months Ended |
Dec. 30, 2023 | |
Inventory Disclosure [Abstract] | |
Inventories, Net | 3. Inventories, net The components of inventory, net of reserves for obsolete inventory, were as follows: (Dollars in thousands) December 30, 2023 April 1, Raw materials $ 98,780 $ 100,379 Work in process 21,774 23,157 Finished goods and other 169,988 78,702 Total inventories, net $ 290,542 $ 202,238 At December 30, 2023 and April 1, 2023, reserves for obsolete inventory were $ 10.3 million and $ 7.9 million , respectively. |
Property, Plant, and Equipment
Property, Plant, and Equipment | 9 Months Ended |
Dec. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant, and Equipment | 4. Property, Plant, and Equipment Property, plant, and equipment are stated at cost. Depreciation is calculated primarily on a straight-line basis, generally over the following estimated useful lives: land improvements – 3 to 10 years; buildings and improvements – 8 to 25 years ; and vehicles and machinery and equipment – 3 to 8 years . Depreciation expense for the three months ended December 30, 2023 and December 31, 2022 was $ 6.9 million and $ 3.8 million , respectively. Depreciation expense for the nine months ended December 30, 2023 and December 31, 2022 was $ 16.2 million and $ 11.7 million , respectively. The components of property, plant, and equipment were as follows: (Dollars in thousands) December 30, 2023 April 1, Land and improvements $ 71,919 $ 41,749 Buildings and improvements 168,562 119,226 Machinery and equipment 126,315 91,007 Construction in progress 41,815 30,010 Property, plant, and equipment, at cost 408,611 281,992 Less: accumulated depreciation ( 120,903 ) ( 104,867 ) Property, plant, and equipment, net $ 287,708 $ 177,125 |
Goodwill, Intangible Assets, an
Goodwill, Intangible Assets, and Cloud Computing Arrangements | 9 Months Ended |
Dec. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill, Intangible Assets, and Cloud Computing Arrangements | 5. Goodwill, Intangible Assets, and Cloud Computing Arrangements Goodwill Goodwill represents the excess of the cost of an acquired business over the fair value of the identifiable tangible and intangible assets acquired and liabilities assumed in a business combination. At December 30, 2023 and April 1, 2023, the Company had goodwill of $ 359.3 million and $ 196.6 million , respectively. The change in goodwill is attributed to the acquisition of Regional Homes. At December 30, 2023 , there were no accumulated impairment losses related to goodwill. Intangible Assets The components of amortizable intangible assets were as follows: (Dollars in thousands) December 30, 2023 April 1, 2023 Customer Trade Total Customer Trade Total Gross carrying amount $ 83,035 $ 46,446 $ 129,481 $ 66,013 $ 21,497 $ 87,510 Accumulated amortization ( 38,100 ) ( 12,061 ) ( 50,161 ) ( 32,103 ) ( 10,064 ) ( 42,167 ) Amortizable intangibles, net $ 44,935 $ 34,385 $ 79,320 $ 33,910 $ 11,433 $ 45,343 During the three months ended December 30, 2023 and December 31, 2022, amortization of intangible assets was $ 2.8 million and $ 3.0 million , respectively. During the nine months ended December 30, 2023 and December 31, 2022, amortization of intangible assets was $ 7.8 million and $ 7.7 million , respectively. Cloud Computing Arrangements The Company capitalizes costs associated with the development of cloud computing arrangements in a manner consistent with internally developed software. At December 30, 2023 and April 1, 2023, the Company had capitalized cloud computing costs, net of amortization of $ 25.9 million and $ 25.0 million , respectively. Cloud computing costs are included in other noncurrent assets in the accompanying condensed consolidated balance sheets. Amortization of capitalized cloud computing costs for the three and nine months ended December 30, 2023 was $ 0.3 million and $ 0.7 million , respectively. Amortization of capitalized cloud computing costs for the three and nine months ended December 31, 2022 was $ 0.2 million and $ 0.6 million , respectively . |
Investment in ECN Capital Corpo
Investment in ECN Capital Corporation | 9 Months Ended |
Dec. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment in ECN Capital Corporation | 6. Investment in ECN Capital Corporation In September 2023, the Company entered into a share subscription agreement with ECN Capital Corp. ("ECN") and made a $ 137.8 million equity investment in ECN on a private placement basis. The Company purchased 33.6 million common shares, representing approximately 12 % of the total outstanding common shares of ECN, and 27.5 million mandatory convertible preferred shares (the “Preferred Shares”). The Preferred Shares receive cumulative cash dividends at an annual rate of 4.0 %. Following the private placement, the Company owns approximately 19.9 % of the voting shares of ECN. The Company's interest in the common stock investment in ECN is accounted for under the equity method and the Company’s share of the earnings or losses of ECN are recorded on a three-month lag. For the three and nine months ended December 30, 2023 , the Company's share of ECN's losses of $ 0.2 million are reflected in Other expense (income) in the accompanying condensed consolidated income statements. There were no earnings or losses recognized related to the equity method investment for the three and nine months ended December 31, 2022. At December 30, 2023 , the investment in the common stock of ECN totaled $ 78.7 million, including $ 3.1 million of capitalized transaction costs, and is included in Other Noncurrent Assets in the accompanying Condensed Consolidated Balance Sheets. The Company's investment in the Preferred Shares is included in Other Noncurrent Assets in the accompanying condensed consolidated balance sheets. The investment is measured using the measurement alternative for equity investments without a readily determinable fair value. The carrying amount of $ 65.1 million at December 30, 2023 represents the purchase price, capitalized transaction costs of $ 2.5 million and accrued dividends. There have been no adjustments to the carrying amount or impairment of the investment. For the three and nine months ended December 30, 2023 , the Company has reflected dividend income of $ 0.6 million in Other expense (income) on the accompanying condensed consolidated income statements from the dividend income on the investment in ECN Preferred Shares. There was no dividend income from the ECN Preferred Shares for the three and nine months ended December 31, 2022. Amounts due to ECN, a related party, were not material at December 30, 2023. ECN, through its wholly-owned subsidiary Triad Financial Services ("Triad"), provides loan servicing for the Company's floor plan receivables, for which we pay a fee that was immaterial for the period subsequent to the investment in ECN. Triad also provides floor plan financing of the Company's products to independent retailers. At December 30, 2023 , the Company had repurchase commitments of $ 61.8 million on retailer floor plan loans outstanding with Triad. |
Other Current Liabilities
Other Current Liabilities | 9 Months Ended |
Dec. 30, 2023 | |
Other Liabilities Disclosure [Abstract] | |
Other Current Liabilities | 7. Other Current Liabilities The components of other current liabilities were as follows: (Dollars in thousands) December 30, 2023 April 1, Customer deposits $ 73,044 $ 69,285 Accrued volume rebates 28,508 25,084 Accrued warranty obligations 40,681 28,576 Accrued compensation and payroll taxes 33,853 41,422 Accrued insurance 15,896 15,075 Other 23,116 24,773 Total other current liabilities $ 215,098 $ 204,215 |
Accrued Warranty Obligations
Accrued Warranty Obligations | 9 Months Ended |
Dec. 30, 2023 | |
Guarantees and Product Warranties [Abstract] | |
Accrued Warranty Obligations | 8. Accrued Warranty Obligations Changes in the accrued warranty obligations were as follows: Three months ended Nine months ended (Dollars in thousands) December 30, 2023 December 31, 2022 December 30, 2023 December 31, 2022 Balance at beginning of period $ 37,362 $ 35,755 $ 35,961 $ 32,832 Warranty expense 17,494 12,958 45,327 40,718 Acquired warranty obligations 11,043 — 11,043 — Cash warranty payments ( 15,833 ) ( 12,575 ) ( 42,265 ) ( 37,412 ) Balance at end of period 50,066 36,138 50,066 36,138 Less: noncurrent portion in other long-term liabilities ( 9,385 ) ( 7,026 ) ( 9,385 ) ( 7,026 ) Total current portion $ 40,681 $ 29,112 $ 40,681 $ 29,112 |
Debt and Floor Plan Payable
Debt and Floor Plan Payable | 9 Months Ended |
Dec. 30, 2023 | |
Debt Disclosure [Abstract] | |
Debt and Floor Plan Payable | 9. Debt and Floor Plan Payable Long-term debt consisted of the following: (Dollars in thousands) December 30, 2023 April 1, Obligations under industrial revenue bonds due 2029 $ 12,430 $ 12,430 Notes payable to Romeo Juliet, LLC, due 2026 5,314 — Notes payable to Romeo Juliet, LLC, due 2039 2,036 — Note payable to United Bank, due 2026 4,883 — Revolving credit facility maturing in 2026 — — Total long-term debt $ 24,663 $ 12,430 On July 7, 2021, the Company entered into an Amended and Restated Credit Agreement with a syndicate of banks that provides for a revolving credit facility of up to $ 200.0 million, including a $ 45.0 million letter of credit sub-facility ("Amended Credit Agreement"). The Amended Credit Agreement replaced the Company's previously existing $ 100.0 million revolving credit facility. The Amended Credit Agreement allows the Company to draw down, repay and re-draw loans on the available facility during the term, subject to certain terms and conditions, matures in July 2026 , and has no scheduled amortization. On May 18, 2023, the Company further amended the Amended Credit Agreement, which removed references to the London Interbank Offer Rate ("LIBOR") and clarified language pertaining to the Secured Overnight Financing Rate ("SOFR") in regards to the interest rate on borrowings. The interest rate on borrowings under the Amended Credit Agreement is based on SOFR plus a SOFR adjustment, plus an interest rate spread. The interest rate spread adjusts based on the consolidated total net leverage of the Company from a high of 1.875 % when the consolidated total net leverage ratio is equal to or greater than 2.25 :1.00, to a low of 1.125 % when the consolidated total net leverage ratio is below 0.50:1.00. Alternatively for same day borrowings, the interest rate is based on an Alternative Base Rate ("ABR") plus an interest rate spread that ranges from a high of 0.875 % to a low of 0.125 % based on the consolidated total net leverage ratio. In addition, the Company is obligated to pay an unused line fee ranging between 0.15 % and 0.3 % depending on the consolidated total net leverage ratio, in respect of unused commitments under the Amended Credit Agreement. At December 30, 2023 the interest rate under the Amended Credit Agreement was 6.58 % and letters of credit issued under the Amended Credit Agreement totaled $ 34.0 million. Available borrowing capacity under the Amended Credit Agreement as of December 30, 2023 was $ 166.0 million. Obligations under industrial revenue bonds are supported by letters of credit and bear interest based on a municipal bond index rate. The weighted-average interest rate at December 30, 2023, including related costs and fees, was 5.48 %. T he industrial revenue bonds require lump-sum payments of principal upon maturity in 2029 and are secured by the assets of certain manufacturing facilities. As part of the acquisition of Regional Homes, the Company assumed notes payable to Romeo Juliet, LLC, a subsidiary of Wells Fargo Community Investment Holdings, Inc. ("WFC"). The weighted-average interest rate on those notes at December 30, 2023 was 5.4 %. The notes are secured by certain assets of Regional Homes. In addition, the Comp any assumed a note payable to United Bank with an interest rate of 3.85 % that is secured by a Note Receivable from HHB Investment Fund, LLC, a subsidiary of Wells Fargo Community Investment Holdings, Inc. (“WFC”). The Amended Credit Agreement contains covenants that restrict the amount of additional debt, liens and certain payments, including equity buybacks, investments, dispositions, mergers and consolidations, among other restrictions as defined. The Company was in compliance with all covenants of the Amended Credit Agreement as of December 30, 2023. Floor Plan Payable The Company’s retail operations utilize floor plan financing to fund the purchase of manufactured homes for display or resale. At December 30, 2023 , the Company had outstanding borrowings on floor plan financing agreements of $ 80.4 million. Total credit line capacity provided under the agreements was $ 248.0 million as of December 30, 2023 . Borrowings are secured by the homes and are required to be repaid when the Company sells the related home to a customer. There were no floor plan borrowings at April 1, 2023 . |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Dec. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | 10. Revenue Recognition The following tables disaggregate the Company’s revenue by sales category: Three months ended December 30, 2023 (Dollars in thousands) U.S. Canadian Corporate/ Total Manufacturing and retail $ 521,124 $ 30,803 $ — $ 551,927 Transportation — — 7,528 7,528 Total $ 521,124 $ 30,803 $ 7,528 $ 559,455 Nine months ended December 30, 2023 (Dollars in thousands) U.S. Canadian Corporate/ Total Manufacturing and retail $ 1,378,041 $ 86,179 $ — $ 1,464,220 Transportation — — 24,240 24,240 Total $ 1,378,041 $ 86,179 $ 24,240 $ 1,488,460 Three months ended December 31, 2022 (Dollars in thousands) U.S. Canadian Corporate/ Total Manufacturing and retail $ 541,838 $ 31,342 $ — $ 573,180 Transportation — — 9,142 9,142 Total $ 541,838 $ 31,342 $ 9,142 $ 582,322 Nine months ended December 31, 2022 (Dollars in thousands) U.S. Canadian Corporate/ Total Manufacturing and retail $ 1,956,797 $ 115,602 $ — $ 2,072,399 Commercial 359 — — 359 Transportation — 42,270 42,270 Total $ 1,957,156 $ 115,602 $ 42,270 $ 2,115,028 |
Income Taxes
Income Taxes | 9 Months Ended |
Dec. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 11. Income Taxes For the three months ended December 30, 2023 and December 31, 2022, the Company recorded $ 12.8 million and $ 24.9 million of income tax expense and had an effective tax rate of 21.4 % and 23.1 % , respectively. For the nine months ended December 30, 2023 and December 31, 2022, the Company recorded $ 44.8 million and $ 113.4 million of income tax expense and had an effective tax rate of 23.7 % and 24.8 % , respectively. The Company’s effective tax rate for the three and nine months ended December 30, 2023 differs from the federal statutory income tax rate of 21.0 % due primarily to the effect of state and local income taxes, non-deductible expenses, tax credits, and results in foreign jurisdictions. The Company’s effective tax rate for the three and nine months ended December 31, 2022 differs from the federal statutory income tax rate of 21.0 % due primarily to the effect of state and local income taxes, non-deductible expenses, tax credits, and results in foreign jurisdictions. At December 30, 2023 , the Company had no unrecognized tax benefits. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Dec. 30, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 12. Earnings Per Share Basic net income per share attributable to the Company was computed by dividing net income attributable to the Company by the average number of common shares outstanding during the period. Diluted earnings per share is calculated using our weighted-average outstanding common shares, including the dilutive effect of stock awards as determined under the treasury stock method. The following table sets forth the computation of basic and diluted earnings per common share: Three months ended Nine months ended (Dollars and shares in thousands, except per share data) December 30, 2023 December 31, 2022 December 30, 2023 December 31, 2022 Numerator: Net income attributable to the Company's common shareholders $ 46,970 $ 82,813 $ 143,908 $ 344,056 Denominator: Basic weighted-average shares outstanding 57,644 56,971 57,364 56,946 Dilutive securities 492 406 478 444 Diluted weighted-average shares outstanding 58,136 57,377 57,842 57,390 Basic net income per share $ 0.81 $ 1.45 $ 2.51 $ 6.04 Diluted net income per share $ 0.81 $ 1.44 $ 2.49 $ 6.00 |
Segment Information
Segment Information | 9 Months Ended |
Dec. 30, 2023 | |
Segment Reporting [Abstract] | |
Segment Information | 13. Segment Information Financial results for the Company's reportable segments have been prepared using a management approach, which is consistent with the basis and manner in which financial information is evaluated by the Company's chief operating decision maker in allocating resources and in assessing performance. The Company’s chief operating decision maker, the Chief Executive Officer, evaluates the performance of the Company’s segments primarily based on net sales, before elimination of inter-company shipments, earnings before interest, taxes, depreciation, and amortization (“EBITDA”) and operating assets. The Company operates in two reportable segments: (i) U.S. Factory-built Housing, which includes manufacturing and retail housing operations and (ii) Canadian Factory-built Housing. Corporate/Other includes the Company’s transportation operations, corporate costs directly incurred for all segments and intersegment eliminations. Segments are generally determined by geography. Segment data includes intersegment revenues and corporate office costs that are directly and exclusively incurred for each segment. Total assets for Corporate/Other primarily include cash and certain U.S. deferred tax items not specifically allocated to another segment. Selected financial information by reportable segment was as follows: Three months ended Nine months ended (Dollars in thousands) December 30, 2023 December 31, 2022 December 30, 2023 December 31, 2022 Net sales: U.S. Factory-built Housing $ 521,124 $ 541,838 $ 1,378,041 $ 1,957,156 Canadian Factory-built Housing 30,803 31,342 86,179 115,602 Corporate/Other 7,528 9,142 24,240 42,270 Consolidated net sales $ 559,455 $ 582,322 $ 1,488,460 $ 2,115,028 Operating income: U.S. Factory-built Housing EBITDA $ 71,862 $ 115,483 $ 210,847 $ 476,332 Canadian Factory-built Housing EBITDA 6,473 5,893 17,000 27,361 Corporate/Other EBITDA ( 13,271 ) ( 12,323 ) ( 39,201 ) ( 34,205 ) Other expense (income) 756 — 2,821 ( 634 ) Depreciation ( 6,862 ) ( 3,824 ) ( 16,195 ) ( 11,660 ) Amortization ( 2,777 ) ( 2,960 ) ( 7,822 ) ( 7,681 ) Consolidated operating income $ 56,181 $ 102,269 $ 167,450 $ 449,513 Depreciation: U.S. Factory-built Housing $ 6,332 $ 3,245 $ 14,658 $ 9,787 Canadian Factory-built Housing 372 277 1,084 903 Corporate/Other 158 302 453 970 Consolidated depreciation $ 6,862 $ 3,824 $ 16,195 $ 11,660 Amortization of U.S. Factory-built Housing intangible assets: $ 2,777 $ 2,960 $ 7,822 $ 7,681 Capital expenditures: U.S. Factory-built Housing $ 16,670 $ 11,181 $ 38,091 $ 34,892 Canadian Factory-built Housing 1,091 1,163 2,032 2,592 Corporate/Other 378 220 863 693 Consolidated capital expenditures $ 18,139 $ 12,564 $ 40,986 $ 38,177 (Dollars in thousands) December 30, 2023 April 1, Total Assets: U.S. Factory-built Housing (1) $ 1,180,081 $ 708,573 Canadian Factory-built Housing (1) 133,363 124,673 Corporate/Other (1) 555,975 729,478 Consolidated total assets $ 1,869,419 $ 1,562,724 (1) Deferred tax assets for the Canadian operations are reflected in the Canadian Factory-built Housing segment. U.S. deferred tax assets are presented in Corporate/Other because an allocation between segments is not practicable. |
Commitments, Contingencies and
Commitments, Contingencies and Legal Proceedings | 9 Months Ended |
Dec. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, Contingencies and Legal Proceedings | 14. Commitments, Contingencies, and Legal Proceedings Repurchase Contingencies and Guarantees The Company is contingently liable under terms of repurchase agreements with lending institutions that provide wholesale floor plan financing to retailers. These arrangements, which are customary in the manufactured housing industry, provide for the repurchase of products sold to retailers in the event of default by the retailer on its agreement to pay the financial institution. The risk of loss from these agreements is significantly reduced by the potential resale value of any products that are subject to repurchase and is spread over numerous retailers. The repurchase price is generally determined by the original sales price of the product less contractually defined curtailment payments. Based on these repurchase agreements and our historical loss experience, we established an associated loss reserve which was $ 1.9 million and $ 2.5 million at December 30, 2023 and April 1, 2023, respectively. Excluding the resale value of the homes, the contingent repurchase obligation as of December 30, 2023 was estimated to be $ 286.6 million . Losses incurred on homes repurchased were immaterial during the three and nine months ended December 30, 2023 and December 31, 2022. At December 30, 2023, the Company was contingently obligated fo r $ 34.0 million under letters of credit, consisting of $ 12.6 million to support long-term debt, $ 21.1 million to support the casualty insurance program, and $ 0.3 million to support b onding agreements. The letters of credit are issued from a sub-facility of the Amended Credit Agreement. The Company was also contingently obl igated for $ 32.8 million und er surety bonds, generally to support performance on long-term construction contracts and license and service bonding requirements. The Company has received claims for damage related to water intrusion in homes built in one of its manufacturing facilities. The Company is investigating the cause of the damage and assessing its responsibility to remediate. While it is reasonably possible that the Company will receive future claims that could result in additional costs to repair that could be significant in the aggregate, the Company is unable to estimate the number of such claims or the amount or range of any potential losses associated with such claims at this time. In the normal course of business, the Company’s former subsidiaries that operated in the United Kingdom historically provided certain guarantees to two customers. Those guarantees provide contractual liability for proven construction defects up to 12 years from the date of delivery of certain products. The guarantees remain a contingent liability of the Company which declines over time through October 2027. As of the date of this report, the Company expects few, if any, claims to be reported under the terms of the guarantees. Legal Proceedings The Company has agreed to indemnify counterparties in the ordinary course of its business in agreements to acquire and sell business assets and in financing arrangements. The Company is subject to various legal proceedings and claims that arise in the ordinary course of its business. As of the date of this filing, the Company believes the ultimate liability with respect to these contingent obligations will not have, either individually or in the aggregate, a material adverse effect on the Company’s financial condition, results of operations, or cash flows. |
Basis of Presentation and Bus_2
Basis of Presentation and Business (Policies) | 9 Months Ended |
Dec. 30, 2023 | |
Accounting Policies [Abstract] | |
Nature of Operations | Nature of Operations: Skyline Champion Corporation's (the “Company”) operations consist of manufacturing, retail, construction services, and transportation activities. At December 30, 2023, the Company operated 43 manufacturing facilities throughout the United States (“U.S.”) and five manufacturing facilities in western Canada that primarily construct factory-built, timber-framed manufactured and modular houses that are sold primarily to independent retailers, builders/developers, and manufactured home community operators. In addition to its core home building business, the Company provides construction services to install and set-up factory-built homes. The Company’s retail operations consist of 73 sales centers that sell manufactured houses to consumers across the U.S. The Company’s transportation business engages independent owners/drivers to transport recreational vehicles throughout the U.S. and Canada and manufactured houses in certain regions of the U.S. The Company also has a holding company located in the Netherlands. |
Basis of Presentation | Basis of Presentation: The accompanying unaudited condensed consolidated financial statements of the Company have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) for Quarterly Reports on Form 10-Q and Article 10 of SEC Regulation S-X. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with United States Generally Accepted Accounting Principles (“U.S. GAAP”) have been condensed or omitted pursuant to such rules and regulations. The condensed consolidated financial statements include the accounts of the Company and its majority-owned subsidiaries after elimination of intercompany balances and transactions. In the opinion of management, these statements include all normal recurring adjustments necessary to fairly state the Company’s consolidated results of operations, cash flows, and financial position. The Company has evaluated subsequent events after the balance sheet date through the date of the filing of this report with the SEC. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes to the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K, which was filed with the SEC on May 30, 2023 (the “Fiscal 2023 Annual Report”). The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and the accompanying notes thereto. Actual results could differ from those estimates. The condensed consolidated income statements, condensed consolidated statements of comprehensive income, and condensed consolidated statements of cash flows for the interim periods are not necessarily indicative of the results of operations or cash flows for the full year. The Company’s fiscal year is a 52- or 53-week period that ends on the Saturday nearest to March 31. The Company’s current fiscal year, “fiscal 2024,” will end on March 30, 2024 and will include 52 weeks. References to “fiscal 2023” refer to the Company’s fiscal year ended April 1, 2023. The three and nine months ended December 30, 2023 and December 31, 2022 each included 13 and 39 weeks, respectively. The Company’s allowance for credit losses on financial assets measured at amortized cost reflects management’s estimate of credit losses over the remaining expected life of such assets, measured primarily using historical experience, as well as current economic conditions and forecasts that affect the collectability of the reported amount. Expected credit losses for newly recognized financial assets, as well as changes to expected credit losses during the period, are recognized in earnings. Accounts receivable are reflected net of reserves of $ 1.7 million at both December 30, 2023 and April 1, 2023. Floor plan receivables consist of loans the Company purchased from Triad Financial Services, Inc. ("Triad") in the first quarter of fiscal 2024 for $ 18.5 million, of which approximately $ 3.8 million remains outstanding at December 30, 2023 , and amounts loaned by the Company through that financial institution to certain independent retailers for purchases of homes manufactured by the Company, of which $ 5.2 million was outstanding at December 30, 2023, both of which are carried net of payments received and recorded at amortized cost. The Company intends to hold the floor plan receivables until maturity or payoff. These loans are serviced by the financial institution, to which we pay a servicing fee. Upon execution of the financing arrangement, the loans are generally payable at the earlier of the sale of the underlying home or two years from the origination date. At December 30, 2023, floor plan receivables are included in Other Current Assets and Other Noncurrent Assets in the Condensed Consolidated Balance Sheets. The floor plan receivables are collateralized by the related homes, mitigating loss exposure. The Company and the financial institution evaluate the credit worthiness of each independent retailer prior to credit approval, including reviewing the independent retailer’s payment history, financial condition, and the overall economic environment. We evaluate the risk of credit loss in aggregate on existing loans with similar terms, based on historic experience and current economic conditions, as well as individual retailers with past due balances or other indications of heightened credit risk. The allowance for credit losses related to floor plan receivables was not material as of December 30, 2023. Loans are considered past due if any required interest or curtailment payment remains unpaid 30 days after the due date. Receivables are placed on non-performing status if any interest or installment payments are past due over 90 days. Loans are placed on nonaccrual status when interest payments are past due over 90 days. At December 30, 2023 , there were no floor plan receivables on nonaccrual status and the weighted-average age of the floor plan receivables was eight months. Interest income from floor plan receivables is recognized on an accrual basis and is included in Interest Income in the accompanying Condensed Consolidated Income Statements. Interest income from floor plan receivables for the three and nine months ended December 30, 2023 was $ 0.3 million and $ 0.9 million, respectively. There were no floor plan receivables as of December 31, 2022 or related interest income for the three and nine months then ended. |
Recently issued accounting pronouncements | Recently issued accounting pronouncements: In November 2023, the FASB issued Accounting Standards Update ("ASU") 2023-07, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures" , which expands disclosures about a public entity’s reportable segments and requires more enhanced information about a reportable segment’s expenses, interim segment profit or loss, and how a public entity’s chief operating decision maker uses reported segment profit or loss information in assessing segment performance and allocating resources. The update will be effective for annual periods beginning after December 15, 2023 (fiscal 2025). We are assessing the effect of this update on our consolidated financial statements and related disclosures. In December 2023, the FASB issued ASU 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures" , which expands disclosures in an entity’s income tax rate reconciliation table and regarding cash taxes paid both in the U.S. and foreign jurisdictions. The update will be effective for annual periods beginning after December 15, 2024 (fiscal 2026). We are assessing the effect of this update on our consolidated financial statements and related disclosures. |
Business Combinations (Tables)
Business Combinations (Tables) | 9 Months Ended |
Dec. 30, 2023 | |
Business Combinations [Abstract] | |
Schedule of Consideration Transferred and Purchase Price Preliminary Allocation on Assets and Liabilities | The following table presents the consideration transferred and the preliminary purchase price allocation as of December 30, 2023: Description Amount Fair value of consideration transferred Fair value of Skyline Champion common stock issued as consideration ( 455,098 shares at $ 61.20 ) $ 27,852 Cash consideration 317,164 Preliminary working capital adjustment 5,000 Estimated earn out consideration 5,904 Total consideration $ 355,920 Preliminary purchase price allocations: Cash and cash equivalents $ 37,619 Trade accounts receivable 20,654 Inventories 135,669 Other current assets 3,212 Property, plant, and equipment, 86,174 Amortizable intangible assets 41,800 Other noncurrent assets 9,199 Floorplan payable ( 75,916 ) Accounts payable ( 14,427 ) Other current liabilities ( 35,452 ) Long-term debt ( 12,233 ) Other liabilities ( 3,065 ) Identifiable net assets acquired 193,234 Goodwill 162,686 Total purchase price $ 355,920 |
Summary of Pro Forma Results of Operations | The following unaudited pro forma information presents a summary of the operating results as if the acquisition of Regional Homes had been completed on April 3, 2022, which is the beginning of the comparable annual reporting period: Three months ended Nine months ended December 30, 2023 December 31, 2022 December 30, 2023 December 31, 2022 Pro forma net sales $ 568,045 $ 679,444 $ 1,750,936 $ 2,492,411 Pro forma net income $ 47,058 $ 87,672 $ 159,351 $ 379,416 |
Inventories, Net (Tables)
Inventories, Net (Tables) | 9 Months Ended |
Dec. 30, 2023 | |
Inventory Disclosure [Abstract] | |
Summary of Components of Inventory, Net of Reserves for Obsolete Inventory | The components of inventory, net of reserves for obsolete inventory, were as follows: (Dollars in thousands) December 30, 2023 April 1, Raw materials $ 98,780 $ 100,379 Work in process 21,774 23,157 Finished goods and other 169,988 78,702 Total inventories, net $ 290,542 $ 202,238 |
Property, Plant, and Equipment
Property, Plant, and Equipment (Tables) | 9 Months Ended |
Dec. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Summary of Components of Property, Plant, and Equipment | The components of property, plant, and equipment were as follows: (Dollars in thousands) December 30, 2023 April 1, Land and improvements $ 71,919 $ 41,749 Buildings and improvements 168,562 119,226 Machinery and equipment 126,315 91,007 Construction in progress 41,815 30,010 Property, plant, and equipment, at cost 408,611 281,992 Less: accumulated depreciation ( 120,903 ) ( 104,867 ) Property, plant, and equipment, net $ 287,708 $ 177,125 |
Goodwill, Intangible Assets, _2
Goodwill, Intangible Assets, and Cloud Computing Arrangements (Tables) | 9 Months Ended |
Dec. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Components of Amortizable Intangible Assets | The components of amortizable intangible assets were as follows: (Dollars in thousands) December 30, 2023 April 1, 2023 Customer Trade Total Customer Trade Total Gross carrying amount $ 83,035 $ 46,446 $ 129,481 $ 66,013 $ 21,497 $ 87,510 Accumulated amortization ( 38,100 ) ( 12,061 ) ( 50,161 ) ( 32,103 ) ( 10,064 ) ( 42,167 ) Amortizable intangibles, net $ 44,935 $ 34,385 $ 79,320 $ 33,910 $ 11,433 $ 45,343 |
Other Current Liabilities (Tabl
Other Current Liabilities (Tables) | 9 Months Ended |
Dec. 30, 2023 | |
Other Liabilities Disclosure [Abstract] | |
Components of Other Current Liabilities | The components of other current liabilities were as follows: (Dollars in thousands) December 30, 2023 April 1, Customer deposits $ 73,044 $ 69,285 Accrued volume rebates 28,508 25,084 Accrued warranty obligations 40,681 28,576 Accrued compensation and payroll taxes 33,853 41,422 Accrued insurance 15,896 15,075 Other 23,116 24,773 Total other current liabilities $ 215,098 $ 204,215 |
Accrued Warranty Obligations (T
Accrued Warranty Obligations (Tables) | 9 Months Ended |
Dec. 30, 2023 | |
Guarantees and Product Warranties [Abstract] | |
Summary of Changes in Accrued Warranty Obligations | Changes in the accrued warranty obligations were as follows: Three months ended Nine months ended (Dollars in thousands) December 30, 2023 December 31, 2022 December 30, 2023 December 31, 2022 Balance at beginning of period $ 37,362 $ 35,755 $ 35,961 $ 32,832 Warranty expense 17,494 12,958 45,327 40,718 Acquired warranty obligations 11,043 — 11,043 — Cash warranty payments ( 15,833 ) ( 12,575 ) ( 42,265 ) ( 37,412 ) Balance at end of period 50,066 36,138 50,066 36,138 Less: noncurrent portion in other long-term liabilities ( 9,385 ) ( 7,026 ) ( 9,385 ) ( 7,026 ) Total current portion $ 40,681 $ 29,112 $ 40,681 $ 29,112 |
Debt and Floor Plan Payable (Ta
Debt and Floor Plan Payable (Tables) | 9 Months Ended |
Dec. 30, 2023 | |
Debt Disclosure [Abstract] | |
Summary of Long Term Debt | Long-term debt consisted of the following: (Dollars in thousands) December 30, 2023 April 1, Obligations under industrial revenue bonds due 2029 $ 12,430 $ 12,430 Notes payable to Romeo Juliet, LLC, due 2026 5,314 — Notes payable to Romeo Juliet, LLC, due 2039 2,036 — Note payable to United Bank, due 2026 4,883 — Revolving credit facility maturing in 2026 — — Total long-term debt $ 24,663 $ 12,430 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Dec. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Corporate Net Sales | The following tables disaggregate the Company’s revenue by sales category: Three months ended December 30, 2023 (Dollars in thousands) U.S. Canadian Corporate/ Total Manufacturing and retail $ 521,124 $ 30,803 $ — $ 551,927 Transportation — — 7,528 7,528 Total $ 521,124 $ 30,803 $ 7,528 $ 559,455 Nine months ended December 30, 2023 (Dollars in thousands) U.S. Canadian Corporate/ Total Manufacturing and retail $ 1,378,041 $ 86,179 $ — $ 1,464,220 Transportation — — 24,240 24,240 Total $ 1,378,041 $ 86,179 $ 24,240 $ 1,488,460 Three months ended December 31, 2022 (Dollars in thousands) U.S. Canadian Corporate/ Total Manufacturing and retail $ 541,838 $ 31,342 $ — $ 573,180 Transportation — — 9,142 9,142 Total $ 541,838 $ 31,342 $ 9,142 $ 582,322 Nine months ended December 31, 2022 (Dollars in thousands) U.S. Canadian Corporate/ Total Manufacturing and retail $ 1,956,797 $ 115,602 $ — $ 2,072,399 Commercial 359 — — 359 Transportation — 42,270 42,270 Total $ 1,957,156 $ 115,602 $ 42,270 $ 2,115,028 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Dec. 30, 2023 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings per Common Share | The following table sets forth the computation of basic and diluted earnings per common share: Three months ended Nine months ended (Dollars and shares in thousands, except per share data) December 30, 2023 December 31, 2022 December 30, 2023 December 31, 2022 Numerator: Net income attributable to the Company's common shareholders $ 46,970 $ 82,813 $ 143,908 $ 344,056 Denominator: Basic weighted-average shares outstanding 57,644 56,971 57,364 56,946 Dilutive securities 492 406 478 444 Diluted weighted-average shares outstanding 58,136 57,377 57,842 57,390 Basic net income per share $ 0.81 $ 1.45 $ 2.51 $ 6.04 Diluted net income per share $ 0.81 $ 1.44 $ 2.49 $ 6.00 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Dec. 30, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Financial Information by Reportable Segments | Selected financial information by reportable segment was as follows: Three months ended Nine months ended (Dollars in thousands) December 30, 2023 December 31, 2022 December 30, 2023 December 31, 2022 Net sales: U.S. Factory-built Housing $ 521,124 $ 541,838 $ 1,378,041 $ 1,957,156 Canadian Factory-built Housing 30,803 31,342 86,179 115,602 Corporate/Other 7,528 9,142 24,240 42,270 Consolidated net sales $ 559,455 $ 582,322 $ 1,488,460 $ 2,115,028 Operating income: U.S. Factory-built Housing EBITDA $ 71,862 $ 115,483 $ 210,847 $ 476,332 Canadian Factory-built Housing EBITDA 6,473 5,893 17,000 27,361 Corporate/Other EBITDA ( 13,271 ) ( 12,323 ) ( 39,201 ) ( 34,205 ) Other expense (income) 756 — 2,821 ( 634 ) Depreciation ( 6,862 ) ( 3,824 ) ( 16,195 ) ( 11,660 ) Amortization ( 2,777 ) ( 2,960 ) ( 7,822 ) ( 7,681 ) Consolidated operating income $ 56,181 $ 102,269 $ 167,450 $ 449,513 Depreciation: U.S. Factory-built Housing $ 6,332 $ 3,245 $ 14,658 $ 9,787 Canadian Factory-built Housing 372 277 1,084 903 Corporate/Other 158 302 453 970 Consolidated depreciation $ 6,862 $ 3,824 $ 16,195 $ 11,660 Amortization of U.S. Factory-built Housing intangible assets: $ 2,777 $ 2,960 $ 7,822 $ 7,681 Capital expenditures: U.S. Factory-built Housing $ 16,670 $ 11,181 $ 38,091 $ 34,892 Canadian Factory-built Housing 1,091 1,163 2,032 2,592 Corporate/Other 378 220 863 693 Consolidated capital expenditures $ 18,139 $ 12,564 $ 40,986 $ 38,177 (Dollars in thousands) December 30, 2023 April 1, Total Assets: U.S. Factory-built Housing (1) $ 1,180,081 $ 708,573 Canadian Factory-built Housing (1) 133,363 124,673 Corporate/Other (1) 555,975 729,478 Consolidated total assets $ 1,869,419 $ 1,562,724 (1) Deferred tax assets for the Canadian operations are reflected in the Canadian Factory-built Housing segment. U.S. deferred tax assets are presented in Corporate/Other because an allocation between segments is not practicable. |
Basis of Presentation and Bus_3
Basis of Presentation and Business - Additional information (Detail) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Dec. 30, 2023 USD ($) Center | Jul. 01, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 30, 2023 USD ($) Center Facility | Dec. 31, 2022 USD ($) | Apr. 01, 2023 USD ($) | Jul. 31, 2022 Center | |
Significant Accounting Policies [Line Items] | |||||||
Trade accounts receivable, net | $ 48,659 | $ 48,659 | $ 67,296 | ||||
Floor Plan Receivable | $ 18,500 | $ 0 | $ 0 | ||||
Outstanding floor plan receivable | 3,800 | 3,800 | |||||
Payments for loans receivable | 5,200 | ||||||
Floor plan receivables on nonaccrual status | 0 | ||||||
Interest income from floor plan receivables | 300 | 900 | |||||
Alta Cima Corporation [Member] | |||||||
Significant Accounting Policies [Line Items] | |||||||
Number of retail sales centers | Center | 12 | ||||||
Accounting Standards Update 2016-13 [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | |||||||
Significant Accounting Policies [Line Items] | |||||||
Trade accounts receivable, net | $ 1,700 | $ 1,700 | $ 1,700 | ||||
U.S [Member] | |||||||
Significant Accounting Policies [Line Items] | |||||||
Number of manufacturing facilities | Facility | 43 | ||||||
Number of sales centers | Center | 73 | 73 | |||||
Canada [Member] | |||||||
Significant Accounting Policies [Line Items] | |||||||
Number of manufacturing facilities | Facility | 5 |
Business Combinations - Additio
Business Combinations - Additional information (Detail) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Oct. 13, 2023 USD ($) shares | Dec. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 30, 2023 USD ($) shares | Dec. 31, 2022 USD ($) | Jul. 31, 2022 Center | |
Business Acquisition [Line Items] | ||||||
Pro forma net sales | $ 568,045 | $ 679,444 | $ 1,750,936 | $ 2,492,411 | ||
Pro forma net income | 47,058 | $ 87,672 | 159,351 | $ 379,416 | ||
Regional Homes [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Effective date of business acquisition | Oct. 13, 2023 | |||||
Total purchase consideration | $ 350,900 | 355,920 | ||||
Cash portion of purchase consideration | $ 317,200 | $ 317,164 | ||||
Issuance of shares of common stock | shares | 455,098 | 455,098 | ||||
Issuance of shares of common stock, Value | $ 27,900 | $ 27,852 | ||||
Contingent consideration | 5,900 | |||||
Estimated earn out consideration | 5,904 | |||||
Preliminary working capital adjustment | 5,000 | $ 5,000 | ||||
Estimated weighted average useful lives | 10 years | |||||
Property, plant, and equipment | 86,174 | $ 86,174 | ||||
Intangible assets | 41,800 | 41,800 | ||||
Pro forma net sales | 119,700 | 119,700 | ||||
Pro forma net income | 5,700 | 5,700 | ||||
Regional Homes [Member] | Level 3 Fair Value Estimates [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Property, plant, and equipment | 86,200 | 86,200 | ||||
Intangible assets | 41,800 | 41,800 | ||||
Regional Homes [Member] | Customer Relationships [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets | 16,900 | 16,900 | ||||
Regional Homes [Member] | Trade Names [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets | $ 24,900 | $ 24,900 | ||||
Regional Homes [Member] | Maximum [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Estimated earn out consideration | $ 25,000 | |||||
Alta Cima Corporation [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Number of retail sales centers | Center | 12 |
Business Combinations - Schedul
Business Combinations - Schedule of Consideration Transferred and Purchase Price Preliminary Allocation on Assets and Liabilities (Detail) - USD ($) $ in Thousands | 9 Months Ended | ||
Oct. 13, 2023 | Dec. 30, 2023 | Apr. 01, 2023 | |
Preliminary purchase price allocations: | |||
Goodwill | $ 359,260 | $ 196,574 | |
Regional Homes [Member] | |||
Fair value of consideration transferred | |||
Fair value of Skyline Champion common stock issued as consideration (455,098 shares at $61.20) | $ 27,900 | 27,852 | |
Cash consideration | 317,200 | 317,164 | |
Preliminary working capital adjustment | 5,000 | 5,000 | |
Estimated earn out consideration | 5,904 | ||
Total consideration | $ 350,900 | 355,920 | |
Preliminary purchase price allocations: | |||
Cash and cash equivalents | 37,619 | ||
Trade accounts receivable | 20,654 | ||
Inventories | 135,669 | ||
Other current assets | 3,212 | ||
Property, plant, and equipment, | 86,174 | ||
Amortizable intangible assets | 41,800 | ||
Other noncurrent assets | 9,199 | ||
Floorplan payable | (75,916) | ||
Accounts payable | (14,427) | ||
Other current liabilities | (35,452) | ||
Long-term debt | (12,233) | ||
Other liabilities | (3,065) | ||
Identifiable net assets acquired | 193,234 | ||
Goodwill | 162,686 | ||
Total purchase price | $ 355,920 |
Business Combinations - Sched_2
Business Combinations - Schedule of Purchase Price Preliminary Allocation on Assets and Liabilities (Detail) (Parenthetical) - Regional Homes [Member] - $ / shares shares in Thousands | 9 Months Ended | |
Oct. 13, 2023 | Dec. 30, 2023 | |
Business Acquisition [Line Items] | ||
Fair value of Skyline Champion common stock issued as consideration, Shares | 455,098 | 455,098 |
Fair value of Skyline Champion common stock issued as consideration, Per share | $ 61.2 |
Business Combinations - Summary
Business Combinations - Summary of Pro Forma Results of Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Dec. 30, 2023 | Dec. 31, 2022 | |
Business Acquisition, Pro Forma Information [Abstract] | ||||
Pro forma net sales | $ 568,045 | $ 679,444 | $ 1,750,936 | $ 2,492,411 |
Pro forma net income | $ 47,058 | $ 87,672 | $ 159,351 | $ 379,416 |
Inventories, Net - Summary of C
Inventories, Net - Summary of Components of Inventory, Net of Reserves for Obsolete Inventory (Detail) - USD ($) $ in Thousands | Dec. 30, 2023 | Apr. 01, 2023 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 98,780 | $ 100,379 |
Work in process | 21,774 | 23,157 |
Finished goods and other | 169,988 | 78,702 |
Total inventories, net | $ 290,542 | $ 202,238 |
Inventories, Net - Additional I
Inventories, Net - Additional Information (Detail) - USD ($) $ in Millions | Dec. 30, 2023 | Apr. 01, 2023 |
Inventory Disclosure [Abstract] | ||
Reserves for obsolete inventory | $ 10.3 | $ 7.9 |
Property Plant, and Equipment -
Property Plant, and Equipment - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Dec. 30, 2023 | Dec. 31, 2022 | |
Property, Plant and Equipment [Line Items] | ||||
Depreciation expense | $ 6.9 | $ 3.8 | $ 16.2 | $ 11.7 |
Minimum [Member] | Land and Improvements [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Estimated useful lives of property, plant and equipment | 3 years | 3 years | ||
Minimum [Member] | Building and Improvements [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Estimated useful lives of property, plant and equipment | 8 years | 8 years | ||
Minimum [Member] | Vehicles [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Estimated useful lives of property, plant and equipment | 3 years | 3 years | ||
Maximum [Member] | Land and Improvements [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Estimated useful lives of property, plant and equipment | 10 years | 10 years | ||
Maximum [Member] | Building and Improvements [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Estimated useful lives of property, plant and equipment | 25 years | 25 years | ||
Maximum [Member] | Machinery and Equipment [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Estimated useful lives of property, plant and equipment | 8 years | 8 years |
Property Plant, and Equipment_2
Property Plant, and Equipment - Summary of Components of Property, Plant, and Equipment (Detail) - USD ($) $ in Thousands | Dec. 30, 2023 | Apr. 01, 2023 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | $ 408,611 | $ 281,992 |
Less accumulated depreciation | (120,903) | (104,867) |
Property, plant, and equipment, net | 287,708 | 177,125 |
Land and Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | 71,919 | 41,749 |
Building and Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | 168,562 | 119,226 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | 126,315 | 91,007 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | $ 41,815 | $ 30,010 |
Goodwill, Intangible Assets, _3
Goodwill, Intangible Assets, and Cloud Computing Arrangements - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Dec. 30, 2023 | Dec. 31, 2022 | Dec. 30, 2023 | Dec. 31, 2022 | Apr. 01, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||||
Goodwill | $ 359,260,000 | $ 359,260,000 | $ 196,574,000 | ||
Accumulated impairment losses | 0 | 0 | |||
Amortization of intangible assets | 2,800,000 | $ 3,000,000 | 7,800,000 | $ 7,700,000 | |
Capitalized cloud computing costs | 25,900,000 | 25,900,000 | $ 25,000,000 | ||
Amortization of capitalized cloud computing costs | $ 300,000 | $ 200,000 | $ 700,000 | $ 600,000 |
Goodwill, Intangible Assets, _4
Goodwill, Intangible Assets, and Cloud Computing Arrangements - Components of Amortizable Intangible Assets (Detail) - USD ($) $ in Thousands | Dec. 30, 2023 | Apr. 01, 2023 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 129,481 | $ 87,510 |
Accumulated amortization | (50,161) | (42,167) |
Amortizable intangibles, net | 79,320 | 45,343 |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 83,035 | 66,013 |
Accumulated amortization | (38,100) | (32,103) |
Amortizable intangibles, net | 44,935 | 33,910 |
Trade Names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 46,446 | 21,497 |
Accumulated amortization | (12,061) | (10,064) |
Amortizable intangibles, net | $ 34,385 | $ 11,433 |
Investment in ECN Capital Cor_2
Investment in ECN Capital Corporation - Additional Information (Detail) - USD ($) $ in Thousands, shares in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Dec. 30, 2023 | Dec. 30, 2023 | Dec. 31, 2022 | Apr. 01, 2023 | |
Schedule of Equity Method Investments [Line Items] | |||||
Share of losses | $ (217) | $ 0 | |||
Investment in the common stock | $ 1,600 | 1,600 | $ 1,585 | ||
Carrying amount of preferred shares | 65,100 | 65,100 | |||
Preferred Stock [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Aggregate cost of investments | 2,500 | 2,500 | |||
ECN Capital Corp. | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity investments in ECN | $ 137,800 | ||||
Common shares purchased | 33.6 | ||||
Percentage of common stock outstanding | 12% | ||||
Cash dividend on preferred Shares | 4% | ||||
Voting shares | 19.90% | ||||
Share of losses | 200 | 200 | |||
Investment in the common stock | 78,700 | 78,700 | |||
Aggregate cost of investments | 3,100 | 3,100 | |||
Dividend income | 600 | 600 | |||
Commitments on retailer floor plan loans outstanding | $ 61,800 | $ 61,800 | |||
ECN Capital Corp. | Mandatory convertible preferred shares | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Number of shares issued | 27.5 |
Other Current Liabilities - Com
Other Current Liabilities - Components of Other Current Liabilities (Detail) - USD ($) $ in Thousands | Dec. 30, 2023 | Apr. 01, 2023 | Dec. 31, 2022 |
Other Liabilities Disclosure [Abstract] | |||
Customer deposits | $ 73,044 | $ 69,285 | |
Accrued volume rebates | 28,508 | 25,084 | |
Accrued warranty obligations | 40,681 | 28,576 | $ 29,112 |
Accrued compensation and payroll taxes | 33,853 | 41,422 | |
Accrued insurance | 15,896 | 15,075 | |
Other | 23,116 | 24,773 | |
Total other current liabilities | $ 215,098 | $ 204,215 |
Accrued Warranty Obligations -
Accrued Warranty Obligations - Summary of Changes in Accrued Warranty Obligations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Dec. 30, 2023 | Dec. 31, 2022 | Dec. 30, 2023 | Dec. 31, 2022 | Apr. 01, 2023 | |
Guarantees and Product Warranties [Abstract] | |||||
Balance at beginning of period | $ 37,362 | $ 35,755 | $ 35,961 | $ 32,832 | |
Warranty expense | 17,494 | 12,958 | 45,327 | 40,718 | |
Acquired warranty obligations | 11,043 | 0 | 11,043 | 0 | |
Cash warranty payments | (15,833) | (12,575) | (42,265) | (37,412) | |
Balance at end of period | 50,066 | 36,138 | 50,066 | 36,138 | |
Less noncurrent portion in other long-term liabilities | (9,385) | (7,026) | (9,385) | (7,026) | |
Total current portion | $ 40,681 | $ 29,112 | $ 40,681 | $ 29,112 | $ 28,576 |
Debt and Floor Plan Payable - S
Debt and Floor Plan Payable - Summary of Long Term Debt (Detail) - USD ($) $ in Thousands | Dec. 30, 2023 | Apr. 01, 2023 |
Debt Instrument [Line Items] | ||
Total long-term debt | $ 24,663 | $ 12,430 |
Obligations Under Industrial Revenue Bonds Due 2029 [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 12,430 | 12,430 |
Notes payable to Romeo Juliet, LLC, due 2026 [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 5,314 | 0 |
Notes payable to Romeo Juliet, LLC, due 2039 [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 2,036 | 0 |
Note payable to United Bank due 2026 [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 4,883 | 0 |
Revolving Credit Facility Maturing in 2026 [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | $ 0 | $ 0 |
Debt and Floor Plan Payable - A
Debt and Floor Plan Payable - Additional Information (Detail) $ in Thousands | 9 Months Ended | ||||
May 18, 2023 | Dec. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) | Jul. 07, 2021 USD ($) | Jul. 03, 2021 USD ($) | |
Debt Instrument [Line Items] | |||||
Revolving credit facility, maturity month and year | 2026-07 | ||||
Deferred financing fees written off | $ 255 | $ 266 | |||
Obligations Under Industrial Revenue Bonds Due 2029 [Member] | |||||
Debt Instrument [Line Items] | |||||
Weighted-average interest rate | 5.48% | ||||
Industrial revenue bonds maturity | 2029 | ||||
Notes payable to Romeo Juliet, LLC [Member] | |||||
Debt Instrument [Line Items] | |||||
Weighted-average interest rate | 5.40% | ||||
Note Payable To United Bank [Member] | |||||
Debt Instrument [Line Items] | |||||
Weighted-average interest rate | 3.85% | ||||
Floor Plan Financing Arrangements [Member] | |||||
Debt Instrument [Line Items] | |||||
Outstanding borrowings | $ 80,400 | ||||
Line of Credit Facility, description | Borrowings are secured by the homes and are required to be repaid when the Company sells the related home to a customer. | ||||
Credit Agreement [Member] | Revolving Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Revolving credit facility | $ 200,000 | $ 100,000 | |||
First lien leverage ratio | 0.0225 | ||||
Interest rate on borrowings | 6.58% | ||||
Credit Agreement [Member] | Revolving Credit Facility [Member] | Consolidated Total Net Leverage Ratio Equal to Or Greater Than 2.25:1.00 [Member] | SOFR [Member] | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 1.875% | ||||
Credit Agreement [Member] | Revolving Credit Facility [Member] | Consolidated Total Net Leverage Ratio Equal to Or Greater Than 2.25:1.00 [Member] | Base Rate [Member] | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 0.875% | ||||
Credit Agreement [Member] | Revolving Credit Facility [Member] | Consolidated Total Net Leverage Below 0.50:1.00 [Member] | SOFR [Member] | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 1.125% | ||||
Credit Agreement [Member] | Revolving Credit Facility [Member] | Consolidated Total Net Leverage Below 0.50:1.00 [Member] | Base Rate [Member] | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 0.125% | ||||
Minimum [Member] | Credit Agreement [Member] | Revolving Credit Facility [Member] | Consolidated Total Net Leverage [Member] | |||||
Debt Instrument [Line Items] | |||||
Unused line fee percentage | 0.15% | ||||
Maximum [Member] | Floor Plan Financing Arrangements [Member] | |||||
Debt Instrument [Line Items] | |||||
Revolving credit facility | $ 248,000 | ||||
Maximum [Member] | Credit Agreement [Member] | Revolving Credit Facility [Member] | Consolidated Total Net Leverage [Member] | |||||
Debt Instrument [Line Items] | |||||
Unused line fee percentage | 0.30% | ||||
Letter of Credit [Member] | Credit Agreement [Member] | |||||
Debt Instrument [Line Items] | |||||
Revolving credit facility | $ 45,000 | ||||
Letters of credit issued | 34,000 | ||||
Available borrowings under Credit Agreement | $ 166,000 |
Revenue Recognition - Summary o
Revenue Recognition - Summary of Corporate Net Sales (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Dec. 30, 2023 | Dec. 31, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Consolidated Net Sales | $ 559,455 | $ 582,322 | $ 1,488,460 | $ 2,115,028 |
Manufacturing and Retail [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Consolidated Net Sales | 551,927 | 573,180 | 1,464,220 | 2,072,399 |
Commercial [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Consolidated Net Sales | 359 | |||
Transportation [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Consolidated Net Sales | 7,528 | 9,142 | 24,240 | 42,270 |
U.S Factory-built Housing [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Consolidated Net Sales | 521,124 | 541,838 | 1,378,041 | 1,957,156 |
U.S Factory-built Housing [Member] | Manufacturing and Retail [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Consolidated Net Sales | 521,124 | 541,838 | 1,378,041 | 1,956,797 |
U.S Factory-built Housing [Member] | Commercial [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Consolidated Net Sales | 359 | |||
Canadian Factory-built Housing [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Consolidated Net Sales | 30,803 | 31,342 | 86,179 | 115,602 |
Canadian Factory-built Housing [Member] | Manufacturing and Retail [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Consolidated Net Sales | 30,803 | 31,342 | 86,179 | 115,602 |
Corporate Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Consolidated Net Sales | 7,528 | 9,142 | 24,240 | 42,270 |
Corporate Other [Member] | Transportation [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Consolidated Net Sales | $ 7,528 | $ 9,142 | $ 24,240 | $ 42,270 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Dec. 30, 2023 | Dec. 31, 2022 | |
Income Tax Contingency [Line Items] | ||||
Income tax expense | $ 12,764,000 | $ 24,865,000 | $ 44,811,000 | $ 113,384,000 |
Effective tax rate | 21.40% | 23.10% | 23.70% | 24.80% |
Statutory federal income tax rate | 21% | 21% | 21% | 21% |
Unrecognized tax benefits | $ 0 | $ 0 |
Earnings Per Share - Computatio
Earnings Per Share - Computation of Basic and Diluted Earnings Per Common Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Dec. 30, 2023 | Dec. 31, 2022 | |
Numerator: | ||||
Net income attributable to the Company's common shareholders | $ 46,970 | $ 82,813 | $ 143,908 | $ 344,056 |
Denominator: | ||||
Basic weighted-average shares outstanding | 57,644 | 56,971 | 57,364 | 56,946 |
Dilutive securities | 492 | 406 | 478 | 444 |
Diluted weighted-average shares outstanding | 58,136 | 57,377 | 57,842 | 57,390 |
Basic net income per share | $ 0.81 | $ 1.45 | $ 2.51 | $ 6.04 |
Diluted net income per share | $ 0.81 | $ 1.44 | $ 2.49 | $ 6 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 9 Months Ended |
Dec. 30, 2023 Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
Segment Information - Schedule
Segment Information - Schedule of Financial Information by Reportable Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Dec. 30, 2023 | Dec. 31, 2022 | Dec. 30, 2023 | Dec. 31, 2022 | Apr. 01, 2023 | ||
Segment Reporting Information [Line Items] | ||||||
Net sales | $ 559,455 | $ 582,322 | $ 1,488,460 | $ 2,115,028 | ||
Operating income | 56,181 | 102,269 | 167,450 | 449,513 | ||
Other expense (income) | 756 | 0 | 2,821 | (634) | ||
Depreciation | (6,862) | (3,824) | (16,195) | (11,660) | ||
Amortization | (2,777) | (2,960) | (7,822) | (7,681) | ||
Amortization of intangible assets | 2,800 | 3,000 | 7,800 | 7,700 | ||
Assets | 1,869,419 | 1,869,419 | $ 1,562,724 | |||
U.S Factory-built Housing [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | 521,124 | 541,838 | 1,378,041 | 1,957,156 | ||
Amortization of intangible assets | 2,777 | 2,960 | 7,822 | 7,681 | ||
Canadian Factory-built Housing [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | 30,803 | 31,342 | 86,179 | 115,602 | ||
Corporate/Other [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | 7,528 | 9,142 | 24,240 | 42,270 | ||
Assets | [1] | 555,975 | 555,975 | 729,478 | ||
Operating Segments [Member] | U.S Factory-built Housing [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | 521,124 | 541,838 | 1,378,041 | 1,957,156 | ||
Operating income | 71,862 | 115,483 | 210,847 | 476,332 | ||
Depreciation | 6,332 | 3,245 | 14,658 | 9,787 | ||
Capital expenditures | 16,670 | 11,181 | 38,091 | 34,892 | ||
Assets | [1] | 1,180,081 | 1,180,081 | 708,573 | ||
Operating Segments [Member] | Canadian Factory-built Housing [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | 30,803 | 31,342 | 86,179 | 115,602 | ||
Operating income | 6,473 | 5,893 | 17,000 | 27,361 | ||
Depreciation | 372 | 277 | 1,084 | 903 | ||
Capital expenditures | 1,091 | 1,163 | 2,032 | 2,592 | ||
Assets | [1] | 133,363 | 133,363 | 124,673 | ||
Corporate, Non-Segment [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Operating income | (13,271) | (12,323) | (39,201) | (34,205) | ||
Depreciation | 158 | 302 | 453 | 970 | ||
Capital expenditures | 378 | 220 | 863 | 693 | ||
Segment Reconciling Items [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | 559,455 | 582,322 | 1,488,460 | 2,115,028 | ||
Operating income | 56,181 | 102,269 | 167,450 | 449,513 | ||
Depreciation | 6,862 | 3,824 | 16,195 | 11,660 | ||
Capital expenditures | 18,139 | $ 12,564 | 40,986 | $ 38,177 | ||
Assets | $ 1,869,419 | $ 1,869,419 | $ 1,562,724 | |||
[1] Deferred tax assets for the Canadian operations are reflected in the Canadian Factory-built Housing segment. U.S. deferred tax assets are presented in Corporate/Other because an allocation between segments is not practicable. |
Commitments, Contingencies an_2
Commitments, Contingencies and Legal Proceedings - Additional Information (Detail) - USD ($) $ in Millions | 9 Months Ended | |
Dec. 30, 2023 | Apr. 01, 2023 | |
Commitment And Contingencies [Line Items] | ||
Reserve for estimated losses under repurchase agreements | $ 1.9 | $ 2.5 |
Contingent repurchase obligation | $ 286.6 | |
Guarantee obligations term | 12 years | |
Letters of Credit [Member] | ||
Commitment And Contingencies [Line Items] | ||
Contingent obligation | $ 34 | |
Long-term Debt [Member] | ||
Commitment And Contingencies [Line Items] | ||
Contingent obligation | 12.6 | |
Casualty Insurance Program [Member] | ||
Commitment And Contingencies [Line Items] | ||
Contingent obligation | 21.1 | |
Bonding Agreements [Member] | ||
Commitment And Contingencies [Line Items] | ||
Contingent obligation | 0.3 | |
Surety Bond [Member] | ||
Commitment And Contingencies [Line Items] | ||
Contingent obligation | $ 32.8 |