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Skyline Champion (SKY)

Participants
Mark Yost CEO
Laurie Hough EVP and CFO
Daniel Moore CJS Securities
Greg Palm Craig-Hallum Capital Group
Phil Ng Jefferies
Matthew Bouley Barclays
Mike Dahl RBC Capital Markets
Call transcript
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Operator

Good morning, and welcome to Skyline Champion Corporation's First Quarter Fiscal Year 2020 Earnings Call.

The company issued an earnings press release yesterday after the close. I would like to remind everyone that yesterday's press release and statements made during this call include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are subject to risks and uncertainties that could cause actual results to differ materially from our expectations and projections.

Such risks and uncertainties include the factors set forth in the earnings release and in the company's filings with the Securities and Exchange Commission.

the be discuss performance. useful call, they 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 over I'd to Chief Officer. now Yost, turn call Executive like Skyline to the Champion's Mark go ahead. Please

Mark Yost

for results. you first our participating call in to Thank our discuss earnings quarter

organization, of to the call today's today for you of honor long on to today housing solutions. Hough, be high-quality, and as to business leading I me in is of while ahead joining our Executive is Laurie that June. following EVP an such continue a first be with earnings a providing Skyline have improve and and Keith grow customers Anderson Joining call our strong and CFO. innovative we affordable retirement Chief us Officer to I'm believe Champion, runway excited It my operations our

some updated progress market, our today's Laurie off from Then results, additional highlights will start with deliver made on we've some provide then growth discuss the touch outlook. operational some the our call initiatives, I'll we results. on and and the on of with detail commentary will the

Skyline year-ago Skyline which while month As results quarter of Champion, legacy champion for combination closed X the include full of X X, XXXX first Skyline X quarter XXXX, and the include the of the company our Champion months for Champion. operations a fiscal months June XXXX. was reminder, on combined first our the combined during and of comparables Therefore, of of fiscal

HUD destocking the choppy. in solid pleased am a housing market to period a of Let very and me begin I in that quarter the where was by results, was market saying report

a was the growth million, at was was in the basis profit. our improvements. costs, and we increase XX% During line the quarter average year-over-year. The compared revenue $XX.X EBITDA a leveraged growth, an delivered in by driven EBITDA to strong grew material selling improvement U.S. the We for XX% Adjusted lower X.X% quarter sold Adjusted ago. the XXX margin our in offerings XX% a product of top price gross XX% improvement X.X%, and We of year-over-year refinement operational more homes $XX,XXX. year first increase by quarter, revenue year-over-year. point margin our

the Additionally, we synergies continued to realize during quarter.

for Turning market. housing industry, outlook to opportunity positive we demographic continued factors. economic the as both see the the on driven growth, remain We for by the and manufactured

by demand many supply affordable a increases to Factory-built our limited short continue home rates. in rental homes, of driven coupled that affordability families issues consumers market for of production, out that decade see place following especially by a are to value still homeownership, proposition apartment homes We underlying by at compelling with impacted offering characterized a points. price

for growing Our housing. a homes need attainable solution are the sustainable and to

Toward levels experienced short-term U.S. in certain retailers. markets the as industry inventory first higher-than-normal at past the end of moved slowdowns improvements and quarter, weather-related the it industry

the and continues have we mentioned due have inventory remained markets in that delays past subsided, We issues and the the consumer delivery the and the impacted outlook short-term encouraged some demand destocking markets. softening U.S. we housing remain quarter's that retailer these to last moved and for remain market stabilized. end We healthy. about certain call, believe on As have by conditions experienced demand to

reduce production to Canadian market conditions, during market year-over-year experience our effectively weak. the largest fixed and housing due In were quarter. and loans British Columbia the decline, expenses down region well with cycle. to market during performed orders the our continued and challenging remained to light margins remained the slower Alberta Canada, profitable plants XX% of In the efforts manage solid

and Canada decrease backlogs was were driven the backlogs U.S. market the for in This while U.S. company are mentioned, retail down impacted by the fell the to challenging Overall, decline XX% conditions due in a the XX% year-over-year. by a backlog channel XX% destocking. Canadian by inventory

and reduce backlog. the U.S. our on-site core setting backlogs FEMA their of During inventory delivering Year-ago $XXX lingering worked end million. to compared was were elevated June, backlog production of inventories. backlog by June quarter, At the retailers consolidated to to $XXX the their million of due our on last impact product

significantly due Sequentially, slower weeks plant, the at the of to stood to grew Although season. U.S. average backlog backlogs by quarter. March X rebuild start end Canadian while to starting of U.S. backlogs quarter, orders selling X%. production a following backlog growth declined from plant backlog is at varied the our XX% the Sequential spring

On front, encouraged are by we the developments. recent regulatory

As on you focused officials access attainable who We toured impede homes. homes that on the from the Skyline housing. the the of increased and by class Champion quarter, manufactured the to may regulatory The production the the our customers to response know, drive leading affordable of including Mall, of President homes the the continued thousands was parts from government thereafter, all sustainable displayed some GSEs. help homes positive. National promoted of Shortly of will provide for believe signed demand during overwhelmingly new executive with consumers barriers order, and the government an ultimately spur homes

customers to part Advantage programs. that the the the and educate of On continue of MH are on duty-to-serve benefits GSE's financing programs Choice we home front, the our

related as process these and will new time. education expected, class of homes to underway, take The is

long-term about programs. encouraged are very of We these potential the

developer out this and are to our partners. to brand homes, of rolling separate We positioned serve have created and of dedicated class the needs new a retail builder

fiscal a the as have class of we to towards new GSE XXXX. channel We expect look impact positive loan securitization in homes this

Turning efforts. to expansion our

the began in profitability of contributed production April and to Our model end Pennsylvania quarter. Leola, by the park facility

began at represents Skyline floor Our lease wall and production and build new promising manufacturing Champion's beginning technology incorporates of facility Louisiana June. of Leesville XXth the schedule stations. facility on for

risks, some bottom line. of pilot a believe also that and and while manufacturing homes' our mitigate improving through before, we've we the safety technology, process we we labor this the while incorporating this into value the program mentioned will technology As benefiting our environment future direct Through of are employees. work homebuyers improving the are initially quality our of

team have part scale assessing longer-term incubator this other is our of We facilities. our technology enhancements to automation strategy an that as at

efforts MH markets our the in make is Our only of the to the helping facility Louisiana in homeownership leveraging state grow a are our Leesville customers more focus technology. located of in attainable strategic plant and proximity broader of families. to example close production is capacity prime reach while for These are to that

call to Laurie the to turn our in quarterly now will discuss financials over more I detail.

Laurie Hough

of XX% quarter to legacy $XXX the to sales quarter year-ago legacy prices. conditions. grew by by XX% additional an of increase segment performance sold million. million increased net U.S. last our of in of factory-built compared U.S. number Skyline adjusting X versus X% U.S. lagging year, the as selling the sales months increase net homes was increased to the in increased an home $XXX and increase with number average Skyline pleased homes We're number sales the operations, industry U.S. our despite first Mark. the sold of in sold housing $XXX the Thanks, homes When The out XX%. million the of operations, driven the The during in mainly inclusion quarter.

selling volume to a a increased U.S. product $XX,XXX, by sales. also to price of modular home per mix. continued shift result X% and drive in park primarily as our We improvement sold Average in modal product

conditions truck segment on In inventory and goods of from addition, site quarter-to-quarter stronger shipments Timing weather the revenue of U.S. end availability. benefited quarter. readiness, at shipments based of finished first from the vary

We expect finished normalize quarters. goods inventory in to the coming levels

quarter result of prior Columbia to Canadian XXX homes sales declined a compared the by provinces. in and a of period. the as sold million XXX to demand homes homes decline XX% in The in housing in to $XX number the year Alberta declined British

to pricing. However, average to prior profit prices $XX selling XX% $XX product quarter. gross to the and compared mix $XX,XXX million to million, in increased up due year Consolidated home increased XX%

of refinement and largely lumber benefit Our were retention. from of last employee investments March factory-built were gross Sequentially product net improve segment were care quarter, from margins U.S. and year. by segment of XXXX employees further housing made gross costs offerings up take OSB our the flat segment as synergy XX% housing margins in benefits U.S. to capture, offset the from sales, XX.X% and

we at the And run million rate $XX targeted which almost range previously range. During our end than our annually, the of of projected. synergy earlier higher estimated achieved is quarter, X months

We are to proud ahead. of shift can opportunities our value accomplishments, years in integrating the further now businesses, and drive to the new

same million as $XX inclusion due versus in quarter the was in increase higher last Skyline and million growth. to current profitability increased to as quarter compensation the primarily SG&A financial year. sales the period operations results and due of The to the first well variable $XX the

market costs year-ago and the higher million of combination. share basis, building and operating related reduction combination increased of costs the diluted ramp expansion and primarily we the of lower the or included loss increase an $X.XX by value $X.XX during adjustment million sales of in income same $X.XX adjusted income to Additionally, $X.XX office compared net for expenses, to period driven quarter share of share $XXX,XXX The are the $X per income per we an incurred compared expense. year. or in first prior from to fair SG&A On part a interest as $X.X a million per other capacity that improved was was a the $XX.X for generated profitability, for in net noncash Net acquired quarter.

XXXX, rate The rate first rate ended ongoing of was primarily current of more an tax X could to due effective related tax fiscal effective a change not company's The quarter's XXX% to XX, effective company's the was expected representative combination rate. tax tax months for in higher the which is take June XXXX tax the rate versus quarter. The for year-ago effective for tax costs we the XX.X% deduction.

X.X%, capture EBITDA from input, Adjusted expanded same an was of cost year basis XXX growth, to for The and increase improvements offerings. revenue by to over operational XX% quarter a refinement further ago. lower million, adjusted period $XX.X largely EBITDA due synergy of material points margin the the product

cash had lower of during and operating cash June XX, the finished $XX expenses, improved first from transaction-related of versus inventory management. we As same million working by goods margins, higher of driven last XXXX improved generated XXXX, quarter million year, operations Cash lower and by period equivalents. capital fiscal the $XXX

pay million credit revolving down cash used we $X quarter, to of the facility. outstanding our excess During

a borrowing June as the million XX. As credit revolving unused company capacity of the on result, had facility of $XX

that We now back it with to I'll invest initiatives. and synergy turn in including facility to free capture our and Mark or business strong integration behind liquidity organic further ample and now some focus can flow remarks. expansion. we acquisitions cash our for opportunistic potential growth, strong us, flexibility from closing core strategic position added our With a have credit cash provides our capacity

Mark Yost

Laurie. Thanks,

short-term levels. With anticipate inventory the industry destocking the rebalances stabilized, we backlog pressures pricing as

continue With see and consumer long-term to improving to driven demand Skyline demand healthy, are supported regulatory for position success. steps we We continued end favorable increasing demand Champion environments. taking fundamentals, financing attainable remain housing, for by the by

employee continuing retailers, in market the go-to-market in In will term, Leesville our technology, near training developers grow housing in of This well start-up, are with and independent to includes building starts. which development, we our our share help our single-family increasing plant our invest relationships as strategy. as our

criteria. potential As organic our growth a also backdrop, evaluating discipline fit supported to opportunities by pursue that acquisition we we continue favorable initiatives, are market

stakeholders for Longer while families. remain housing attractive of the factory-built term, to generate we homes leading returns our and are and providers one their of customers all for providing our quality well of positioned

for And may with you lines open Q&A. operator, the now that,

Operator

comes Your Securities. first Instructions] from [Operator Daniel CJS from Moore question

Daniel Moore

wondering not costs maybe just in the efforts in to the wanted impact selling did material to But the the X% numbers. these much start slightly try was of office park proportion Keith of streamlining a Maybe California. pass-through of around walk pricing? much I'm Mark, to brag with us look if how like? models too and higher through smaller ASPs, And quarter. up of about raw in terms rising what given mix an homes, you're year-over-year

about mix talk little Just bit. a

Laurie Hough

primarily I little timing the is it, I of is material bit would just Dan, from is inflation year. of last from the ASP raw -- growth of price price year-over-year, mix. the increases There mix. increase say, would a our But X% So most

higher overall are seeing We as a contented home well.

modular delayed sorry, And impacting that as then shipments So I'm the more -- ASPs. well. more is

Daniel Moore

costs? over improvements margin, of deflation attribute How year-over-year. input legacy good. terms that favorable the XXX few in input operating and much do Champion gross Very bit of last bps of in you synergies. And Skyline little up and months to A versus cost

margin gross maybe the impacts Just what for ordering, on trying to the largest sense year-over-year? get rank a

Laurie Hough

Yes. and lumber Difficult benefit from Certainly, to rank. we saw costs. the some lower OSB

from synergies, and And inflation. higher quarter. this sales some run volume. just did that the some We higher was saw offsetting a helpful general of reaching see rate employee wage costs also We gains benefit productivity

Daniel Moore

out. you're where operating does Okay. just that but And sequentially U.S. would last are talk And year-over-year, thing, historic many how and in about Backlog, of I'll you backlog the be? jump Can up at levels, to down compare to weeks optimal How averages? now? like you what

Mark Yost

Yes.

a So, our effectively operating we're the about Typically, us weeks schedule operate allows X Dan, at customers, now, to X delivery also backlog. like production to backlog suppliers. timely it our us of X-week the chain to of right in to to have range we'd with but supply that allows and

to So optimal. range X is X

actually compared of years, is effects And to the I normal, were actually. the think production. backlogs last prior kind due to weeks FEMA lingering above X of year elevated

backlog that we've So our year-over-year-over-year. the I given think especially productivity fact good, the levels increased are

So X of weeks probably better weeks years much ago year X productivity the this is enhancements. X than because

Operator

question Greg from next Capital Your Palm comes Group. Craig-Hallum from

Greg Palm

Congrats the results really on good here.

growth, the kind a of Where than capacity industry the starting volumes, most about out online. obviously, how gains. seeing the much is U.S., with just specifically, So talk market you which strength? new some curious, nicely let's share of trended But coming has are better implies that byproduct of unit

Mark Yost

Yes.

see think, similar up I did year-over-year. U.S. basis, we growth, overall, on a X% go our shipment

to seen So honest, the we're the across well given performing growth feel we board. do somewhat, markets. challenging Overall, Greg, very we've be

sales mod HUD the still to year-over-year. Texas Tennessee and in had region I'd up Things since park quarter. then. throughout shipments, been the model the we up have say, Our picked destocking have

slowdown the is of kind now So destocking we've us. say geographic would kind normalization. of seen a I in behind

what the the normalization plant specific, of Now seeing backlogs of and of pipeline. we're some development is some product more product specific,

the think, country overall, certain destocking. across backlog with feeling still categories just we're the kind inventory So coming I of pretty of good product out

Greg Palm

gears talked I there. to guess, what targeting, you the All there over technology right. margins of Shifting actually that can improved some curious, new this Great. from a sort What's plant, end efficiencies pilot little maybe throughput? detail about that of program? incorporating you're goal? and you And putting Leesville. bit that in you're talk better a I'm Is for in

Mark Yost

Yes, sure.

time. basic So technology that we're advance starting some off, just will Greg, very with over

processes. how of team redefine incubator to assembled our is we've So that kind working through production our

save end So out; enhancement the improve of day, scrap it less much so automation will generation quality, have have will, the there. material a at product we'll the one, cleaner our we'll coming and two, it will costs,

So you'll there. get benefits

future labor On labor labor direct it but get labor in the direct as would I a more not a the side, challenging, bit I future. costs, of challenging view going direct little we'll direct avoidance, is more say, less to risk save

enjoy up-and-coming labor. And technology training physical more that to much maybe so we millennials more so and in can that doing with the will benefits a than found speed this, the prior get with working up hire faster, we stable workforce this along

to as benefits those going work then optimize all in out and of and the accrue, learn and to it roll and roll we kind discover up curve. it Leesville step it So bugs and out the how forward we're

Greg Palm

Good.

going to attention or But standpoint quarter. don't something And from then should be What's been, Okay. that if think should like to newer started we the kind past forward? this you be facilities specific come to an mentioned how million as about modeling some I overall I Leesville paying know Laurie, of anything drag was margin of have a online? these thinking we $X.X just number. that was that

Laurie Hough

continue to here billion We're and Yes, well, the a to the of $X.X Leesville. drag. out of quarter bit forward products little we're moving a shipping going see going to number. be overall And an was -- second in

SG&A, of into instead drag So margins. to in all of flip going the it's

So to little we're of a going to that. margin you're in see going from -- drag bit a

the I last what quarters, with seen modeling would we've of say. So consistent perspective, from in a couple

Greg Palm

just comment towards to end Okay, Mark, remarks. guess, one. perfect. of then going back your last I a And prepared the

destocking. a something in months? we sort clarification, pressure early summer You that could. kind Or pricing of sort and you've in of a of to future Just comment? the hindsight, comment what of like that spring if a wanted due Was seen said was kind

Mark Yost

No, a let's more X, I or comment month think next say, the of it's future probably over Greg.

to pricing, of end effect into Towards we the weeks end the the X quarter. pricing country. the and backlogs That of of destocking, inventory came handful market trying to saw with orders on of have participants toward some parts the the looking a or tail the stimulate depending to X generate we of

I just but see softness. you'll you through. see that of little everybody, So just bit rolling it's a think kind of don't

Operator

Ng next question Your from Jefferies. comes from Phil

Phil Ng

Good activity? the of few has you FEMA to the growth destocking down seen you're some hear Have think lapping you're any that restocking do retailer the tougher next level. now you that expecting quarters? type in shipment And the of winded at how the about comps,

Mark Yost

Yes.

to has see in view of the good, it the think I rear Phil, destocking kind been mirror. getting

So that's been encouraging.

we year. I growth. market to calendar, And somewhat be we'll say next then would year, remainder the I the that year, think, marketplace maybe see itself the into year next this In last going be see slightly -- relatively, of the towards will up. for similar calendar quarters, few overall, last versus the

Phil Ng

Okay.

kind you're of bringing your of But you're of to in the expecting outpace So expect [indiscernible] kind you do to growth the geography flattish-type on, market? some market. given continue

Mark Yost

in to we outpace as yes. value market, continue long our that bringing to we're the think the I customers should as right ways

Phil Ng

I the through, the could kind input of coming are bit. reason The the costs now, meaningful. pricing? How Got called you sound was that quantify you like And channel see pricing some few then or quarters? right a we tariffs, some maybe It I'm didn't you given benefited in out The in modest on expand pressure magnitude? with obviously. why that modest you. can from depression fading of Could understand, be that asking, obviously, next margin impactful more the

Mark Yost

maybe I of coming month be you'll think probably in delayed be a or tariffs question with passing price costs X. or for a input increasing, some would those increases the slight in little through

in a think built backlog year-over-year. as to compression little So building with backlogs just could be -- said, market. there of do the you X% our I U.S. like normalize I bit But I think the go, has

that. backlogs as kind the build, So of normalize market we'll continue think see to I

tail of destocking. short-term to the I due just think the towards end was downturn it the

Phil Ng

Got one me. it. And just last one from

you now I you, Are think, of expect behind there driver taking bolt-ons any capacity you the capacity? your should some M&A, major any shaping think these pockets on where mentioned activity be think an M&A forward? -- when some ramp a to Laura, kind across way capital solid, regions. standpoint, obviously, balance sheet of that is you stance valuation? more mentioned and a integration industry. Skyline from to your where kind potentially you then Understand Curious, deployment. of proactive M&A up is lately organic And few we a more think of there's up And in about meaningful going about very

Mark Yost

Sure.

M&A overall, at looking I activity. always think, we're

costs opportunities economies consumer, the I in geographies. think, the end to both some lower and the of in industry of overall the scale there's think I certain consolidation to expand

growing staff third-party other we at market certain country. the levels placement think is end regions demand. in strong of in see demand healthily, the quite especially see survey you market we services, consumer I that and and still the When look end

new home of in of and So the class grow, channel would backdrop the interested and into with building market builder into to be both and I especially the with developers. of retail expansion homes the that the financing larger also think returning the we continuing

M&A customers. is ourselves make overall, to with those our to of opportunities, opportunity. think, capacity do startups, I for look And and both think I business probably we expand So an or organic further to better with

those solve the if acquisitions in or retail developer activities as channels and for So looking there's well. to doing or for channel builder that development communication points customers at other in our could investments opportunities and them, interested pain we in make or the channel

Operator

Barclays. question next comes Bouley Your from from Matthew

Matthew Bouley

follow to on Leesville plant. the wanted I up

that team. this a that is program You pilot got it you've mentioned and incubator

envision that? to Just what's time, bringing just the And these additional timeline evaluating how do for guess, I Mark, facilities? processes ultimately you over

Mark Yost

Sure. Sure, Matt.

plant think, I in up started the overall, just June.

kind curve. we're midst of I learning the in So think the of

quickly, year rolled different relatively expect is that learning could other pieces or we're thing. the of be So would which next great quickly this in a facilities. out so I to

changing we the of things to longer that in bit the production Some the X- do, the horizon. little probably larger and term, flow like X-year some probably need technology wall building to would processes a of

which So on it really just piece of depends automation.

kind We processes different have of And X that plant. or they're that stage. incubator in at X all ongoing

Matthew Bouley

Any then on July? I April double orders, you Okay, into perfect. trends quarter and through talked And think guys color quarter, the last order about digits. up

Mark Yost

Sure.

I trends was June was overall, strong. was think strong, May April order down,

our I'd orders overall, So say, up year-over-year on were for to X%. quarter, the X% basis, a same

and And trend so continue October normal then and going forward, we're winter between we typical the see I backlog September, strengthen the our to to slowdown. as see now think

Matthew Bouley

the then to the those short on Got price it just mix near actually positive to seeing, the just average term such enough current from pricing Are in the been offset will term? that the we've $XX,XXX that actually pressures, the decline pressures. and clarify

Laurie Hough

the see Matt, quarter, backlog little bit I say, so quarter, expect the of pressure third little term, as possibly. short I destocking a normalization. And then the a comes of and more to would in, bit in the the the in of effects would in the second build

Operator

from Dahl Markets. [Operator Capital next question Your Mike Instructions] comes RBC at

Mike Dahl

of from factors just views what here? to quicker still demand there's you the a retail, Mark, been guess, consumer your would on your you're forefront don't would wanted on impeding just get I issues, order think room the retailers? of I if some now. With up activity follow but the the around at commentary in why the kind on again, lines to comments destocking. ramp credit seem take past are it retailers back plan the seeing strong, have I And wanted the like about up inventory moving orders

Mark Yost

Yes. Thanks, Mike.

and when backlogs, long we forward when last we so way see you'll way normally they minute. orders earlier. cycle, pull are it the come And will at duration, are backlogs think works orders meaning I low, it will that orders see the backlogs in normally, the the is in in have place larger

the a order little can I of level be misread. think bit a So

In terms to of the people their fact the them orders are get last pipeline. when that backlogs light, will minute to the delay in

So to backlogs on an basis, I really equivalent order take with the the you've conjunction shorter-term in think got rates.

I until think second they kind coming of go time won't start which probably towards orders in hand period. in see hand will in because strong -- minute, quarter last you the the

Mike Dahl

Okay.

just So last-minute potential while prudent some half, like in orders? your market for a uptick based still flat seen, expectations those are it second of also the there's just is on you've what seems conservatism and better that some that's relatively the from probably

Mark Yost

I Sure. fair. that's mean,

Mike Dahl

guess, these Okay. a takes also and margin puts you costs. comment Shifting correctly look some understanding I margins think some would U.S. side. done quarters? and that quarters with I to of and other near-term an to the Laurie, back at few And pricing made X want similar of cadence the XX.X% gears in I then you've the around XX.X%. last to sure just commentary the the we're make

terms about of level you forward? you can new when it in set just be your going fairly on is So similar that talk expecting to what normal

Laurie Hough

Sure.

the the of our to going feel of and from some impact we expansion think see the generally, continued ramp and capacity Leesville Pennsylvania. I the are Leola, So sustainable. short-term that ramp margins we're U.S. But

we Although of profitability were end by June, the out that of seeing plant.

more be will that So than the Leesville facility. minimal

as we of costs continue inflation some that to In training see continue we that the and as development to the in going with insurance put higher addition, of we're employees. going wage are and saw to we match And place. our XXX(k) well

and So to be there's going takes. some puts

the margins the out. quarter; might fourth quarters the in down sustainable and we and further I flat third generally we are think to but be where slightly second in

Mike Dahl

and question, of much say or Okay, forward the And there. great. on product in on the last comments detail little mix that can and how out of when are if refinement. SKU other intentional was plan that also refinement some I give to us dig versus nice there. shifts more then you specifically wanted a you And you little a more my helpful. issues the talking just a a kind product benefit, what you is around rationalization just continue that level bit just Can about? of figure That's on

Mark Yost

Yes.

think forward our the plan allowing and us are of and at refinement for processes. bring where SKU curve, predesign I factor same optimize it's more the our the design other to getting optionality to time, more in but customers, we give ahead flexibility to manufacturing

So I standardization us think helped with to has refinement. SKU it's of that product combination that and rationalization along the some product optimize that

Operator

time. back I no are questions now to at There presenters like this would further hand to our for remarks. closing

Mark Yost

are -- would very quarter I Thank reiterate the second our our proud results. like we that with much, Well, fact just Cameron. you very to first

homes overall just overall the industry our we being forward, with strong We're the see on as more builder demand along developers to the starting of forward, most to new relatively of engagement look starting be produce and we go retailers that we're we of for about. couldn't As in trends end excited markets. class

for the call, thank joining that, forward Thank you. very future. you and With look to much the