Skyline Champion (SKY) 6 Nov 182018 Q2 Earnings call transcript

Good morning and welcome to Skyline Champion Corporation, Second Quarter Fiscal 2019 Earning Call. The company issued an earnings press release yesterday.

Before we begin, I would like to remind everyone that today’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 risk and uncertainties that could cause actual results to differ materially from our expectations and projections. Those risks and uncertainties include the factor set forth in the earnings release and in their filings with the Securities and Exchange Commission.

the be discuss performance. useful call we measures today’s can believe in during company non-GAAP will which Additionally, evaluating their reconciliation can release. measures of in A earnings the be found these call I like would management. to the now over turn to Please go ahead.

new ahead start opportunity the on and like providing the Skyline excitement that out integrate our Good and CEO. as and new this earnings you businesses second of lay background company EVP are pursuing we CFO quarter opportunities With Hough, our to growth operational about some Thank those company. story. I’d strategy the Champion’s of morning. and XXXX Laurie Keith number off of the is company to improvements. you me for continued is I’ll and by the This our express Anderson, my morning for call. joining

of share in a in Following and market pro-forma second the XX% industry. manufactured factory housing of now the built largest Skyline business housing company of the of XXXX, with we’re HUD combination Champion approximately U.S. June

also months This adjusted-EBITDA in of million On stemming the we approximately XX which combination. pro-forma basis realizing of XX, September of Western $X.X an and for position hold billion a a generated $XX net the before is all trailing Canada. equates sales We to XXXX. from ended leading adjusted-EBITDA synergies X.X%, margin expected

approximately business, represents our with pro-forma of business XX% approximately each representing transportation U.S. X%. and Our net our sales Canada,

of types price points. Our product as various at portfolio of homes a is offer different broad we number

is Modular Model and our have for of strong shipments, RVs. presence housing Park accounts manufactured While Commercial we the majority Homes, a

XX dealers the in our as as owned well stores to markets XX network in U.S. XXXX manufacturing Our primarily products of than country, facilities strategically more in a were close that Southern operate located located across are retail customers. We company independent the a through sold

units to trends approach significantly but Our growth leading about significant for being housing expected single averages to industry recovering, built term average housing starts to XXX,XXX growth market. term of room secular Viewed family MH continued be this Market long and We long average industry MH is volumes to MH by driven compared XXXX industry. to to XX%. of remain the is is the from below traditional it another for outsized XX% manufactured is year, of housing perspective, differentiated term been with expected volumes attractive compared site have the believe more and than longer the in there compared XXX,XXX.

new with historical important close growing providing housing options expect MH demand, in the plays gap help affordable with financing the to with solutions. increasingly combined We trends market as role an

highlight as into completed jump financial offerings. I’d we successfully in had the a quarter we like that busy the equity very capital I results, markets secondary two Before to

prompted is performance our to the of forward. you like share new we million both XX meaning X We offerings August, of operating and as transition transaction York three from raising going that milestone XX.XX New for an shareholders. forward continuing The controlled of in investor in was the share Board Champion all to for of marked to interest core Exchange. I equity completed about offering. appreciate off our September offerings, business by important a updating Stock million Skyline million welcome proceeds shareholders shares sponsors was to million Champion. look longer the First offering share September fell the of upsized The in gross completed the selling the million Then XX.X know million would representatives raising a on to no strong defined $XXX.X as our get Skyline and sponsor’s and to $XXX.X selling proceeds of gross of in shareholders. XX%, you under ownership company considered completion Directors. of to original also this our This

financials. to moving the on Now,

second this business that full both Skyline QX is three earnings the companies. had months Champion, results of While Recall months included our our of one our this operations call first combination month on following Skyline. is fiscal the between time of June and X, but only from three Champion that results

we a XXXX. As year the quarter. March second months delivered XX, topline points reminder, We grew I the the basis our for our XX quarter am by on We by margin adjusted-EBITDA September and XX% fiscal expanded X.X%. our to results pleased our XX, XX%. by are end second three are will ended with XXXX performance and adjusted-EBITDA in

Our results were more segment. the driven selling We XX,XXX. homes at retail nearly and of average manufacturing U.S. by an XX% from improved volumes price and margins sold

to due discipline in see improved pricing, volume effectiveness, control and usage over margins improvements. better content continued to We material operating and improvements the and leverage in

Next on the begin provide from our should quarter we comments initiatives. some now to in trends the more our I’ll realize markets. benefits synergies

strong markets. to in continuing most demand are our see of U.S. We

large have Specifically such Florida and as California markets to backlogs. continue Texas, long

which demand of are describe adding all Overall detail distribution channels, owned our backlogs independent stores through shortly. capacity to in meet three remain more will We and healthy. we selectively remain dealers, demand communities company strong as

to in and We of grew second in experience Canada, a quarter. Alberta to our weak continue that Canadian demand, the the see Saskatchewan During million remain quarter softening are in healthy. did consolidated we housing while markets from $XXX first million some other provinces the backlog $XXX

demand manufactured shipments of strong housing XXXX. X.X% terms eight there through by hard be industry, increased In continues to overall year-over-year first the of the as months

digits, housing growing as to take is in site housing expected to continue see manufactured starts market traditional growth outpacing from built houses. share the Going overall of forward industry single high we the

Modular boost We are drive and markets Park helping higher. the for strength, average which seeing also to and Model selling prices is backlogs

and are in housing backlog cost backlog growth a fitting place. during as seasonal and families. concerns remain drivers remain quarter, order in underlying with continue slowdown the have priced. third recent of in low about with continue the and strong. softening expect market but compared as sequential are slowdown to seen given along our We not demographic for needs there the alternatives. affordably advantages we broader our positive features unemployment sector built They do outlook our quality the given While our U.S. statistics, and in other the to market our any view the normal growing care Consumers Supportive rates today’s to homes with help trends attractive the housing our

to in improving in to that programs competitive also to quartz XXX are year We compared largely as of points a when rates Mae built them for chattel land to Freddie product rates the to is business. tangible consumers, resulted year-over-year. with the efficiency, cases This see home continues increased lower allowing such countertops purchase compares by as have our ago. where Fannie to financing providing and attractive that result Mac be smart for both a to technology. larger has and features retail Increased such alternative, interest basis purchasers homes competition or our benefits some XX The also very market granite unchanged site and segments affordable continue energy, our

only industry last about addition, shipments financed. year our were of half In

land Fannie to as guidelines. more benefit our appraisal to in Mae increase home for language the expect lending advantage purchases industry. number product We enhanced niche recently enter their their MH this institutions underwriting

their as well. of shortly to this Mac release We version expect Freddie product

not year, GSC do products financing industry should from has While along momentum with been see we enhance next materially that building the impacting chattel year. this the other impact

seeing plant XXs Lastly in into rising we’re capacity rates utilization the some markets.

California We improve result, of [inaudible] production to small Models efficiency. taken recently completed This and facility. focus expand capacity and actions a our Corona will facilities. production As of capacity both Corona, a on homes, second in streamlining line number we’ve of the expansion a Park and line

record facilities a and that that place. in growth margin strong driving in of proven have teams expanding track and revenue are labor have We management forces by

is anticipate facility with Florida manufacturing I strategy addition, as to and and markets scale us now expand that us opening the in and we increased will take call growing an company more is market share a such Louisiana. flood been to in This as will allow to the are also to execute equip top continue will the the our that to In XX we nearby meet region Austin Panhandle. it staff Houston, in detail. Leesville, allows We months a important demand underserved in historically scope. as facility. turn six combined to the Laurie a our over another nine to quarter and This approximately and step discuss new

Keith. Thank

during homes U.S. by by up the profit to increase of and $XX the rising increased of was $XXX sold XX% with net net actions pricing driven home the Canadian as net The the increased Saskatchewan. compared price the to one, Alberta offset sales the factors; prior sales by per-U.S. provinces period. million performance increased costs. labor operation an and led XX% Average quarter, of Gross sold of to the quarter selling $XXX in factory year. four three, built sales housing pleased are XX%, mix main material centers sales increased prior and XXXX operations; impact million result inclusion XX% We our fiscal during volume the of demands, as million in two, and $XX selling number quarter; additional output; to increased retail million $XX recent a to home second driven compared million to in of increased increase decline product market plants which soft price. sale and for Skyline improvements most in The demand year the of in average the four, operating XX%.

sales U.S. built housing last Our to period margins in of XX.X% gross increased segment same segment the net year. XX.X% factory from

continues for number demand increased we as connection product offer our allowing $XX versus operational equity increase, divested shares what we our to growing adding build in as the costs employee recent expense The volume gross to last impact price effect labor $XX continuing increases to value better did margin while $XXX to allows our result been in SKUs. Canadian how allows offerings. the increase to to of was the and been of million rationalize to streamline restricted prices product and adjustment, we to our the to issued million material the meet product material plans costs. overall operations leverage for million able the non-cash the Decreased of company second compensation portfolio, those in customers, These shares cost with which needs improvements to with combination Although of combination. and continues offset same and the increase of primarily innovation a have have it margin. company quarter at in our SG&A Continuing The increasing effective of equity period enhance by the rationalization. periods, models us due output, fixed year. of

due of related the for XXXX EBITDA $X.X would September effective second compensation same quarter. items XX, $XX.X million second during quarter primarily year. continued tax XX, entire basis rate or adjusted September to $XX due fiscal have we ended In the versus over quarter period for XX% the loss income months in three ended $X.XX Absent rate decline increased million, costs the from for restructuring in was fiscal the been The The compared three with was non-deductible to driven compensation. XXXX $XX and share addition, equity operations the year a by Adjusted change SG&A EBITDA per an the rate identified associated in the quarter, prior The and negative the million XXXX three XX rate the of by X.X%. combination. points discrete SG&A months an transaction increase income to $X.X to of non-cash XX, ago second the of million million the inclusion Skyline adjusted associated of to diluted stock effective in compared ended these net expense. of the the for company’s net effective quarter. with On net for increase months The and the the X.X% tax generated XXXX effective was of was September $X.XX margin XXXX. expenses the XX.X% non-deductible basis expanded The an the company’s integration was tax XX.X%.

grows seeing and are We strong driven the markets, operating results demand of improved improvement number operating from initiative. our improvement our leverage our volume by continued margin in as

as same months September generated year, credit equity period six year driven facility equivalent. capacity working of adjusted compensation million $XX million profitability of $XXX operations for based company the had improved and revolving million the XXXX over management. and capital improved XX. by the under from $XXX of September we $XX.X cash The first cash improved As had of for the by Cash of XX, unused non-cash million last versus borrowing

our ample position, growing initiatives. credit flexibility strong liquidity invest facility We our in provides from business have to with and strategic core that and our added a cash

the Champion’s this critical process synergies time continue We through track functions $XX million to original Skylines’ the make product into material from June core Skyline improvements throughput million and on integration and than $XX our plants expected. XXXX. $XX better as our good by costs, changeovers range synergy to platform. rolled within we The rationalization them material A and improvements Champion take focused streamlining chain our moving have progressing are These to synergy Operational company to in estimate coming are fees. are to are on to million. is of revising supply conversions expect and Procurement progress on legacy will integrating targets as the and been of updated are eliminating $XX million aspect systems. in expected has resulting included capture, of mix. redundant complete Systems refining

like our revising a of to from to the We to are estimate the in back did for results some XX September our I’d to of a closing quarter, call December We XX some time months bigger towards but reaching financial remarks. by months impact turn expect Keith begin or the achieve rate XXXX. our run synergies QX. to end original realize synergies to

Thanks Laurie.

backlog outlook material the we see, potential by the soft. in recent the given fiscal We half first some and results can impacted feel about half good our you second weeks strong has pent hurricanes. demand strong the As for up year. of the during recent In areas delivered for inflation

provide and for the nice and We synergies trends are the improvement. a beginning from growth to margin transaction. revenue these see company backdrop continue to Skyline they Collectively deliver

lines forward, business demand organically, improving healthy, look regulatory markets by pursue we remain affordable affordable by leading housing, incremental we We and financing and M&A our initiatives to increasing you may returns generate for we leverage, transaction our homes one our of for positioned while our remain Operator, and open providers term, see opportunities to stakeholders, environments. housing our Longer synergies. to margins operating customers. built Q&A. through for and As related expect expand are well supported of factory attractive now driven grow the for the providing operational

Instructions]. [Operator

line a with proceed Our Securities Moore first question Daniel Please from comes CJS from of Incorporated. your question.

Thanks Laurie. taking morning, Good the Keith. morning, questions. Good for

morning, Dan. Good

as and top line, obviously I strong QX? weather wondering exceptionally as wanted was in impacts just in hurricanes and growth. any to Florence you I’m to start any there revenue with the if far impact see Michael whether quarter at and/or all expect

end, quarter some Thanks didn’t Michael this the We immaterial. question. for Good Dan. hurricane till did was impact of hurricane after in Obviously results third landfall quarter relatively make There the into have but have Coast obviously and Midwest. that the and days we Willington, East shipping in abilities Carolina then – off one production of North the facility rainfall lost the impacted heavy the seven Florence.

Texas that, impacted there. a that tropical capabilities to was in shipping addition came through depression that there In

is as concerned, that well then expecting that any or well. as you know comments QX And as are – you encompass as far encompass is those impact

areas of ability the the the dependent were as really production know, flooding shipments crews facility. the if year for You lost end by eventually do ship product it’s on hurricane, up see the catch homes. would that we to the we’ll will I more delay and transporters know the Willington as the and in overall through that the the up, say set those set well But to the at of the catch then impacted

Expectations Obviously grow backlogs a know you’re so to then and ‘XX, for rising, a has you Okay, at as we comp outlook replenishment and calendar it. any pretty then look know inventory ‘XX? expect question. comp. on you you potential for the FEMA, But or are tough QX thoughts a for of sorry through fiscal related kind comments FEMA, that

year-to-date close are very year which either current production third Champion standardized in in periods FEMA in also efficiency with help there you’re plan. Last quarter. was in results. up produced third coming our comp in no some very alone concentrated X,XXX and earnings and tough fourth the the absolutely products quarter through units. backlog number, FEMA and the FEMA the those heavily our no There is of There’s X,XXX, presented are to That rates right,

how of to down kind Got just and put of of it’s it, wondering and about bit Canada Thanks. in sequentially, it lastly the mix I’m If me an operations, apples-to-apples for out; a Skyline trying margins, of I’ll strong fiscal to basis. and would gross bips year-over-year. we’ve QX, attribute change you jump given kind very of how quarter it a that compare the much we on got full much a now to to in XX

it a of Skyline. was It Canada was piece Canadian it say. last certainly I was Yeah, would of than driven mix

had going the back, we second versus in Champion the the Skyline’s the know a than lower plants. the You quarter. were full quarter months in know, one we And first three of in bit results Skyline operating traditional historically included month only as margins

are working of improve obviously, capture. we part margins, quite yet the So that’s to there those not synergy but

quarter the So in quarter, – sorry. the that the whole dilutive was in to second definitely third

I Thanks. jump Got back. will It’s it. helpful.

Dan. Thanks

question Craig-Hallum. Greg from of the proceed your Please comes Palm next line question. Our from with

and everyone the congrats progress here. morning Good thanks. Yes on continued

Greg. Thanks

as You to out relates know commentary there, broader we cycle. it the Keith, housing some mix maybe could commentary start

there out environment your perspective. your trends. true You the in to know get that you rising a change relevant, It and fare against product does rate more what are would opinion? kind demand a in other And you maybe some how sense talked your and how order specifically does on about curious options of from of backlogs seeing

it’s good Yeah, Greg. a question

and stable. very our been watching past this closely quarter we’ve know throughout been it’s You demand

affordability in As opening it’s and our value on the about growing to a country I than that’s backlog on still side a get some some stable, different with what seeing There timely homes we and challenges trends. working costs we’re rising costs and an feel price robustly perspective more very versus site the the housing built consumers delivered in areas mentioned rising good is my through apartment it’s from and on a homes of points it. the comments, perspective our alternative basis. our are from caused But our

the industry year-over-year you I growth strong. know So a quite is think performing at still rate X.X%

it’s to backlogs up in open to capacity our of got So thus time longer that markets view Greg. more – some we’ve these in

Yeah, the built mean know that no year-to-date I that more site seen and manufacturer maybe in concern that know as affordability start look seeing. you house, product i.e. traditional any that seeing that evidence options, have past that makes rising to consumers you rates quarter or are of at other bigger you sense. becomes a the know for you you’re anything maybe you’re

Yeah short that’s which product next built of your issue HUD homes the an faster the drop growing I typical in buyer Especially one-time rising down be finding into buyers. product the would seen we been window in rates affordability product, even down would, in think past that class our in than some be you the and has modular site would is the know our dropping modular. taking of then over being year, a at modular here potentially have array looking a home, and

you on the our is Freddie. product, for are site side HUD the with board seeing factor distinguishing build other The Fannie across gone and haven’t like rates our up

stable. got been So our institutions niche sources capital We’ve different financial industry. we with and very rates are have a unique

also perspective. from that’s helping an So affordability

do in at back you what to previous demand, on replacement region? of know know sense seeing start set are and those some the I you down is in mean I but now okay. you know opportunity. following-up any impacts, you from you’re some terms just how be replacement in what big guess demand, hurricane Interesting, a able you point related assuming seeing you And the that of opportunity homes in know question

and down hear community in surge getting especially everything very start will still both the in people in we see Florida dealer ground, quarters their early, settling a determining the we yet steps. in You the but from seen on the from network, know from Carolinas. and our the definite coming as and the local their Florence spurt next people in the there But hurricane volumes haven’t and insurance Panhandle, proceeds be in it’s

color. Okay, luck! great. I Good appreciate Alright, the Thanks.

Greg. you, Thank

from from question Capital line proceed Dahl with RBC next Our comes Markets. Mike questions. the your of Please

Thanks Good for morning. taking my questions.

Hi Mike.

out that which guess lagging start mid-single in low well. as the Hi! demand in growth industry a to think know digit would like moving little I it I well if to you pieces, organic maybe on about the seems quarter, is be side wanted the type range the I bit.

industry you’ve kind and give You how of just to quarter. the to the moved mix geographic Can much of the of relates that year? that kind how share seeing are outgrew for you related is a as the about through position back we your last should as kind you of us it year going how or thinking the be balance to whether of sense

answer question, through mix the really to running need your to financial consider the Mike, that’s statements. we

unit numbers in and retail you have manufacturing. So both

are units. which impacts We seeing also overall

increase are last quarter also year. increase well we seeing over factories, unit single into So produce the in and period same our models period, in our mostly ship as from builds, And as U.S. sales modular type; our we other Canada and home in an see park Canada. product this we an that and multi-section into home year-to-date our wide Eastern sales did versus

all how would impacting numbers. one growth unit given I of organic So that is calculate think maybe

it, Got that you can a you Is number have there that offer? okay. comparable

the in digits. more single look the we I an when higher which think mid perspective, from at floor I to we organic I to Yeah, closer – volume, was are directionally

Laurie. second and helped of inflationary the pricing and price push the environment half first clearly you relates had you’ve you an that’s of pushed Great, of costs. question environment pricing that’s then year and you lumber And helpful for kind ahead the know my on to

be for more deflationary margins. we environment, average is, on or thinking about we operating of about should kind effects and – your unit a that how how in lumber you’re know should be price you thinking related that Now EBITDA

I think consider inflation together. Well, a when to it and couple of and how we look about talking there’s price at things

of once our rationalizing prices product are really inflation, not that segment to necessarily of the then addition we’ve broader we’re and to looking sourced price. So we’re the products solidify the product earlier. not we impact managing. specifically, tariff, more we of seeing raising on offset products waiting again inflation to in and to also their the our company have mix only building lumber those those portfolio States, increase that different but labor we are recently, of we’re specifically. talked because see softened to that those even optimizing are In United and relation lumber products whether prices at And tariffs in But but healthcare – and products about

going though down, costs have even are some So commodities other that we up. are coming

quarters, prior we manage going to managed and margin the to continue price we’ve in are overall. as So

conventional me, the way one given any you there easier change to seeing investments and last business the are traditional that’s and does know in strength you be process in in to then Okay, viewing more seem helpful. conversion And are that increases rapidly? from on just modular you for that that that. potential site-built-buyer and expand that product the any Is also mortgage

I’ll and growing – we instance is now now know in very modular mix rapidly. the that have sector Colorado Mike, challenge in country monitor give of for a the you around right You our right to number plants

and So the that backlog a products. modular production converted ship we portion a HUD bigger into plants have now few more Colorado in have their produce from of that in product

as, plants and expansions that looking areas consider have of we’ll of that. and what is of one line it continue what types making investments, growing the something as and and do each So our at to are new closely, we country product as monitor well to market each the

important factor. a So it is very

Keith thanks and Laurie. Okay,

you. Thank

Our proceed question. next question of from from your line Bouley Barclays. with Matt comes the Please

my for Thank Good questions. morning. taking you

the you for broader housing the on questions, deceleration it housing. up there in think following manufactured guess just data know So growth was in seems I some industry like I August

see track you How would so site-built business, guess as I companies trends love into your September about similar hear And own trends Thank know guess you. U.S. know for you October a you’ve the heard the did to well. deceleration? I everything just growth and given you any from comments did in

you, order they a September and August so our stable bounce the rate, haven’t changes of overall markets, really Yeah, at We from I $XXX numbers obviously us were major level. seen shipment any thus very end million in our rate demand The HUD some have industry from the events. then in month-to-month months from real of quarter. backlog in production related and any producing the cautioned do of around because weather

people on ground and to are improve, things I’m look robust outlook. what have so tend our occupancy pretty of we listen the So the sure have what macro then calls the and our their retailers. to community rate local telling with side, traffic’s good you some the us a markets, as in at up more communities, from are been a they so environment at of the opening new as big some we are far REITs to far the industry goals continue

be Okay, thank Leesville few you that. hold a And on you Skyline the know to integrating secondly, I know under were for impression you going was that were as and then weeks the you ago you opening, that think Champion. know we

short kind region just led just Thank in kind what’s relatively of integration you. really period to demand of change thought the thought it So that I is in how the a or your these process in going? Is specific know weeks? process such few I the guess past what’s in well of changed time? guess you

systems number the integration Yes, opening one was side impact on are progress it’s specifically comments synergies mentioned around The and as made Laurie conversions a well. in her going good question. the

Michael a we’ve that to now market buried strong gave from impacts in Texas; demand months. over management certainly Leesville; be XX remain So in Panhandle move hurricane but going are to identified by East teams the externally to Louisiana next greener going us the certainly it’s running internally, Florida are the forward the for help light really that and – the that

So us, things drove well months ready. it’s the plant, timing a Matt six will the It nine take plant. to as combination staff of was as to that that and buy quit the to

really next launch those you spring know So we markets. are for a later preparing in

Okay, a Thanks details. lot. I appreciate the

you. Thank

[Operator Instructions].

Phil next Ng question comes of your with question. proceeds Please from Jefferies. Our a line from

actually Phil. on this Colin is Hi, for

us much Just talked Can praising you about a in the feel give improvement. mix like about that talking were you change discussion, XX% product of going the how that for just that a like back that was actually to you little earlier? versus about more of pricing bit

Yeah both separate mix and to it’s difficult unfortunately. a really Colin, generally of two the

Okay, guess second the that rate you quarter that Is think something you that is the rest put the is mid-teens. sustainable XX% year? I growth for at the of at then

both competitive Yeah, manage based it’s plants and competitive and pressures are regionally the and more to generally the inflation pressures set. certainly we even know you need sometimes with

maintain are models in margins. unit, We’ll of build price where if sensitive products the way the the in order the necessarily raise So can’t to look price at changing more those we because markets competition. we our de-specing that

this be going use to Thanks. and capacity are profitability kind about great and optimized? then involved that more you of the can any see what a bit on little Okay, going be plant before fully potential investments color just additions, capital drag just back provide to in

XX product to is in speed be range ramp labor of the on from and even that’s break million, the specifically the to generally million bring the months million, to force. we which the training range and can can to $X is $X.X that in million then Yeah, depending CapEx on time to for built and $X you know going the needs at anywhere $X.X being Leesville XX

you Thank Great! very much.

may Corona, want Laurie you Laurie. to mention

Yeah, streamline know the because the helps we force there models, Corona park team in at different famous of the were you for situation, product a product core to Corona. the a we that entering of the and labor lot line where place have additional which management lines added production

to much little a shorter ramp cost. that’s really So time very ramp and

with proceed from line the your questions. Moore next CJS of Please question Daniel Our from Securities. comes

verticals other you some of stabilizing? Canada HUD are bit and Number code, a what are you is be you there markets, Thank modular. obviously Any traditional comments one, you soft. was hospitality, great? market again. in as second seeing first time on would seeing Wondering spent outside What that’s the other

we continued were and a side other Well, see modular mentioned and growth you few year-to-date. The sectors to in HUD as Sure. pleased is side outpacing the Dan.

those as Detroit, Fairfield completed good Our large of in in a Wisconsin. just later we those We we year-over-year Corners Communities, a year, coming unit as are tiny RV we the XX% the do models, lastly, completing sector, our next then in spring. are hotel pipeline up a nearly hospitality early well complex next in as are known on have units typically put additional homes that apartment commercial and park

always as we Avenue different through. an margin to looking will different that’s work So at around demand be and product array plants spreading our as

So continued be us importance a certain markets. that will in for diversify to

demand current What we there? Canada levels expect should you from things seeing In are the in quarter? stabilize

they Columbia we’d like. are The Saskatchewan, comments, got in strong, long our we Alberta but rates and the shorter in remain very down. backlogs are than order as backlogs, opening mentioned British we Yeah, very

continue have back We that predict months I haven’t bounce there, so past seen future to for XX the there Dan. foreseeable a soft we’ll markets in the

And you from pending mentioned meaningful benefit? it. bit some for lastly from results Keith know Got tangible Fannie think programs. the Any more in to-date little your yet real we – financing sense Freddie then might a when you and no of from I see benefit

that’s good a Yeah, question.

few As take advantage and to was does distribution programs. a a the versus through here That operational tweaked these thousands end. year It different that so institutions, hundreds industry. received I favorable and are financial roll Mac out before very Mae We ago. advantage take dealers be by product time well MH will of product similar Freddie language releasing on time. mentioned, their their weeks These Fannie their think MH will

that program So about I’m see benefits and on tangible earnest from really waiting looking and is these the with we’re financing in into XXXX chattel GSCs. we around the enthusiastic before most programs,

that told to committed they are launching pilot those next year being are their still programs. We on programs,

it. coming color, luck Thanks the the again best quarters. Got in of and for

Thank you.

we Ladies session. the the end reached question-and-answer of have and gentlemen,

call like remarks. to back to for closing management I’d turn Now the

updating forward good you Well, thank months. quarter to we day! interest third your and much very support our a Have you look a few and in for on results

conference. today’s concludes This

this may your You lines for you your disconnect Thank at time. participation.