Loading...
Docoh

Skyline Champion (SKY)

Participants
Sarah Janowicz Investor Relations
Mark Yost President & Chief Executive Officer
Laurie Hough Executive Vice President & Chief Financial Officer
Daniel Moore CJS Securities
Ashley Kim Barclays
Greg Palm Craig-Hallum Capital Group
Christopher Kalata RBC Capital Markets
Maggie Grady Jefferies
Call transcript
Due to licensing restrictions, you must log in to view earnings call transcripts.
Operator

Good morning, and welcome to Skyline Champion Corporation's Second Quarter Fiscal Year 2021 Earnings Call. The company issued an earnings press release yesterday after the close. I would now like to introduce your host for today's call, Sarah Janowicz, the Company's Director of Investor Relations and External Reporting. Sarah, you may begin.

Sarah Janowicz

Good morning, and thank you for participating in our earnings call to discuss our second quarter results.

call EVP Yost, and today's and and on Hough, Laurie CFO. me is President Mark CEO; Joining I would forward-looking like Reform release meaning and to the Act remind everyone made of this that of during XXXX. call Securities include Private statements the statements within Litigation yesterday's press These subject and to uncertainties actual could cause projections. statements to expectations differ and are results materially risks that from our Exchange include earnings with uncertainties and the and release the in risks forth the factors Such in filings and our Securities Commission. set

today's in A during be be these measures, the release. will which we non-GAAP over turn Additionally, to earnings can call call, discuss evaluating I to we believe measures like would found the can reconciliation useful in performance. now our of Mark.

Mark Yost

everyone. on strong the an morning, housing as overall will Thank environment, and as fiscal well the continues and Today the in balance quarter I to you, update very of the beyond. favorable long-term which the dynamics. year good provide second discuss I will Sarah, recover

believe adapting remain lifestyles me point low Let especially industry. entertainment significant being macro by will people that a is about we millennial home, encouraged rates, industry seen We’ve office, safety for around the center very of homes With inflection the strength level school, I’m of the high-quality demand affordable the strong. at and home. demand, now and broader ownership to homebuilding solitude, and gym, driven serving as centered and homes the by home interest as a in a place begin saying

in dynamics, these well we’re benefit these dynamics. to that order fortunate very we’re from are to rates. We seeing strong demand True positioned

ramp. the quarter, XX% production quarter, quarter, an due were last X% our sequentially but first up quarter, our delivered prior from down XX% X,XXX from our consolidated the and first quarter XX% from to improvement sequential during We year. During a from of homes orders up second year the

utilization and same supplier capacity we end during similar facilities the being achieved our outages. intermittent downs, the related During reached quarter, despite hurricane the by manufacturing by last hampered levels disruptions the XX% short-term X%, at those year. September, production to shut time quarter, are that improved U.S of By reaching plant COVID

have the last pattern has in from as like order the the up in year, Our during has Canada also a the we're plants down Sales of to 'XX Western about backlog. in increases fiscal followed but were demand Canadian the plants. a quarter our period same saw continued first U.S XX% fiscal compared resulted quarter. in steady strong which production, quarter. outpace increase for homes The orders X% to

backlog million second and million average XX during weeks. in the U.S. $XXX to $XXX quarter the at grew on stands Our

was weeks a last quarter and X grew during of U.S. As the second year $XX in basis of of in average are million comparison, backlog out

supply will deliver able our more their partners products customers. to As chain be our increased production levels, to we

over new is improved months. of has most at it levels, last regions pre-COVID recruitment While few of U.S. the not applicants the in

home our of increase our onboarding a follow process still priority, training a increased stores measures other facilities are guidelines adhering and retail top reduce able Maintaining continue are at is of and the moving Walk-in are the buyers and for to levels, purchasing due availability protocols to for spend pre-COVID also to lean time demand as has over but sanitation homes that with more buy. entering customers safety at accommodate employees COVID-XX. time apartment as custom the healthy housing. the the is for instead CDC distancing are in inventory more and below and In are and space many are first last levels spec enhanced look spread dealers, social they few we homes months. waiting for market. arrive in force are talking still many hear to labor and traffic facilities. our buyers ordered need We financing buildings working improved strong of Customers remains come our employees for to multifamily environment at financing to environment, the to to manufacturing and from our new from the in and to homes We the safe ready

gain our traction builder in Genesis continue channel to our developer with We brand.

our to the and In of product. Builders momentum. small the continues full into subdivision turnkey asking set market year, Our underway. ADU More is services crew launched Genesis for like starting West. the a on turnkey penetration partners our out and turnkey Northeast last our are exclusive finishing up gain pick Likewise, where to nature midsize the of utilizing solutions. we've approach currently we builders are subdivision channel

solutions which and of with for backdrop that is will to note is sustainable the What interest supply, Given past demand geographies, being every serve has limited believe combined is trends in geographic across that low deeper channel roots housing in and driven the demand favorable rates, grow. the demographic we multiple like years. important our housing we demands

capabilities, believe between factors and solutions especially will a heavily overall turn Laurie behind now long-term, to that and automation the our market. labor force detail. housing our we inflationary call the recovering and work dichotomy our economy payments the scale our in more which to in can out wanting of the quarterly I as invest outpace attainable for we we in over digital will discuss to expand, with expand Given over millions to our With intend customers. financials we effectively more housing more

Laurie Hough

U.S as results segment morning, the our I million headwinds factory housing and by quarter. a flows. in same of and the our in of for $XXX begin the followed briefly factory-built by by fiscal We built also discussion in X% second cash as we declines decreased financial versus our will third discuss housing balance our expecting the in reviewing the well a the versus U.S compared sheet I Thanks, year. in of quarter last customers homes in the quarter, primarily last section will was are same expensive $XX,XXX good was and everyone. Net year. decline more a million revenue driven in revenue homes The Canadian number by margin quarter of sales quarter to The to year. segment, reduction average to last saw $XX.X declines X.X% number single factory-built by average per mix price in XXX sold or same decrease selling decreased shift home the to less period $X.X units homes of decline to selecting upgrades The the X.X% a sold and U.S due product sold in price. selling million. Mark,

in first respectively number to and quarter remained results X% encouraged beginning the of homes have the shift to revenue down strong average to sold reduced sequential $XX.X the year a versus sold the compared levels, by gross increased to ago to last a average performance segment in year our sales to XX% quarter a in decline due the decrease below of million, in driven While XXXX. as for prior year of price second was we million pandemic. mix. to by profit number product conditions decreased The a significantly particularly the Canadian XX.X% X% selling X% XX% compared U.S as XXX $XX,XXX, price revenue improved Net fiscal quarter units. to sales factory-built compared and the homes decline home of the $XX.X as Consolidated to well due decreased the volume. in are selling the

products. sales was same second last sales, the in primarily SG&A XXX in $XX.X quarter variable last housing due segment forest to of basis The by decrease compensation reduced points caused due in segment second and gross quarter from $XX.X decreased percent versus marketing costs including volatility to a net million U.S. of Our certain down margins increased in the incentive year. and market material were million the a costs. XX.X% travel period year commodities, as to reduction

We program the SG&A non-cash enacted during million. to expense also $X.X a favorability other to equity the in income response pandemic. quarter due of recorded related experienced $X.X Canada's costs of emergency the in We compensation million wage subsidy in to reduction

offset volatility year-ago. credits a lower third the profit, wage other million EBITDA gross ago have by partially $XX.X per the was XXXX over The federal we Shifting period primarily quarter We the increased cost, to a net would fiscal income XX.X% was million, EBITDA our SG&A, quarter forest to months. quarter, of monitor million STAR related will months per $X.XX the during and R&D to a to tax for of for subsidy, and The financial or period to adjusted which tax of eligibility for than the $X.XX to labor our higher net the income for apply and due earnings products, been financial a share decreased program. tax including ENERGY $X.XX compared Adjusted the to our been same tax program. September adjusted COVID year. $X.XX especially Canadian $XX.X market last and effective continue XX.X% decrease basis share wage wage benefit lower the believe year income considerable lumber second expense. assistance any compared company's was the that rate by constraints, diluted costs margin of reduction prior points same partially XX.X% in the government to by be outlook a the reduction this income subsidy of to shortages. the On the continue was expenses Canadian subsidy were normal or over generated Without share with by in or absenteeism combination for program to compressed EBITDA XX in results material the effective per and program. due our increased to $XX.X driven of by quarter. basis, OSB we margin intermittent adjusted few XXXX effective the X rate material an rate There the in ended increase tax X% in due versus an offset material The company's of SG&A has for impacted for XX, X.X%. benefit an second quarter Net of

and the the While backlog and structure our will fiscal decrease, to pricing our peaked be to in impact the realized pricing to of our have lumber third lumber in of we see of as starting expect our our in OSB and spike it's due in margins seems of length results more contracts. compression the quarter to

increases increased help But portion material by dynamics constrained that instituted we in of costs the full the of We and recovery market other cases, pressures in the are competitive a have some offset a increased short-term. costs. permit price to don't

the to on and the and passed Over demand end strong we the housing family and as solutions. for attainable increase can seek is in long-term, homes be consumer costs affordable the believe single medium they input

lower this time meet last team compared direct is members attrition to team labor and people Turning voluntary quarter to are our value our our demand. force, committed labor and growing year. to We this retaining to increased our

to recruit the and new continue support growth train in We to team onboard the members business. expected

quarter, However, related to limited fiscal shutdowns be operations instances situated second initiative plants production restarted in idle year to at absenteeism and plant are our other or continue a contributed COVID-XX. labor to layout. restart We style the idling in plants later quarter two of of at by that allow. campus this recruiting high capability our expect that plant of operations constraints our additional By one may last our the end two of as the intermittent we the to short-term mentioned

believe we using half manage second we with home labor delays including process. our COVID expect the shortages supplies homes. and experiencing normal to similar absenteeism. the challenges of situations to raw our in vendors are effectively alternate through for partners work progress to constraints, materials sources our year, used products continue certain be able these intermittent or to supply the to fiscal with We needed believe We chain we outbreaks by that or will of experience our higher than obtain building through As

operating the million long-term CARES same as part increase period the operating as equivalents, the June of maturities second cash generated $XX payroll cash September Under of taxes The to employers primarily flow of XX, until to benefits eligible Act, $XX We last compared the government with are to $XX due cash until during defer As flow and XXXX, year. million and portion cash in flow late cash December, of is million during borrowings we XXXX. employer no of $XXX in had quarter million XXXX. from programs.

to focused the We deferred of remain the utilize call of support plan turn for $X and the the I'll back over half fiscal initiatives just and cash business have on growth. During Mark operational remarks. to program. our the subsidy payroll to $X U.S million to our and growth some first year, Canadian wage on and closing executing now received taxes reinvest million in we've almost from strategic

Mark Yost

Laurie. Thanks,

introduced, mindful uncertain constraints in remain revenues has longer we the as term labor impressed positioned the conditions and team that While the over through short-term. we we support be well of growth with I we our expanded the dynamics entire returns to pandemic believe environment. are rallied in way has together to pricing and the current continue over the work

are Our amazing continue may that today. the very lines attainable with desperately now employees and options for providing open dedicated. Q&A. needed They the so And are work that hard, to operator, market with housing you

Operator

of CJS [Operator Daniel Moore Please the with with your proceed Instructions] Our from question. first Securities. question line comes

Daniel Moore

taking questions. Thank you Laurie. and morning, Good for Mark the

Mark Yost

morning, Good Dan.

Daniel Moore

describe through of maybe quarter and cadence the far into wanted monthly the start I thus just October. shipped with homes to

I similar to if been rates September. this time of at we at this were production have exceed think of Mark, to last you the the I'm back that year said at point? end able you wondering

Mark Yost

Yes. Dan, thanks.

think and August saw we through I September, pickups in July, production. steadily

after So month. pretty pickups good it was month

the production into during levels October, second increase than Thus production first in in average we're running about October quarter first of higher XX% a have to versus in second the We the the XX% weeks were we far few of quarter. the quarter. XX%

maybe October for going of kind The with disruption, the in So or we've in and think forward, we're COVID think flat and last levels of relatively terms year. cases it's for that to the improvement seen potential shipments I production production We're quarter later the potential be even supplier increase the to steady moderating levels progressing. in is enhanced into quarter. concern going versus

Daniel Moore

so, about Got to in is long it. just it but bottlenecks of your And bit gave take but helpful. concerns? little ordering, rank the good If in the items is significant what's what whether control the color, expanding ramp kind prepared and just talk it's That's control how you remarks, it supply obviously labor, up? most your a than chain maybe and it production, of very what's in less might terms to

Mark Yost

up, about improved the quarter. hired labor than And traction people, brought getting so we've Yes, has think, during been ramping good brought in. I in think the steadily We've and during seen new we've on hundred quarter. a I they've more onboarding hires

then. of So say I in in think market, with improved was that's Later was were forest quarter, still disruption that supply but cases waning, I products the was especially the probably it second scarce. CARES in Act Labor I comes probably to certain it the very related. think subsidies since steadily quarter, it primary, labor kind second would popped up early quarter,

a things in to cases find get travel home complete some find many around we had the or we and So In to cases. go lumber for trying products just to other make appliances customer. sure to

far in Those in were in thus late October quarter. think mitigated the somewhat. those have challenges second So probably I

pretty which seeing chain is improvement supply and labor in encouraging. the consistently, we're in improvement So

to really at will will cause certain to down plant a a and people outage cases limitations. other ramping outage it Just COVID another pull the action or governors take comes or certain back week week

Daniel Moore

it all what production down think you or least those to see today but on based flat being Okay. Thanks. could one put factors? do specificity early more, margins in be to we around And back gross and But -- able for versus actually the margins sequentially relatively a sequentially you more I'll are quarter, know this commentary maybe from bit queue. I little -- we it's and not quarter ramp you on about if margin if around being in at jump should the expanding, expect

Laurie Hough

that Dan. Hi, one. can I take

of We margins the OSB go to length see our primarily structure backlogs our to and from down expect sequentially lumber in decreases, of quarter, to the and still expecting contracts, second especially U.S. due some the the

Daniel Moore

Thanks. ups. back I'll follow with jump Okay.

Mark Yost

Dan. Thanks,

Operator

Thank you.

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

Ashley Kim

on is morning. actually this Kim Matt Ashley This for Hi.

costs So given any of the just ask that, light of And to to you about in on increased how are volatility costs? then input managing are these. increased backlogs, increased I exposure pricing worried wanted kind the just materials you on

Mark Yost

Yes.

thanks. Ashley,

think the think with the demand site overall think built price. -- environment and know homes pricing, really and I I is no, have significantly in pricing gone I good most I levels up

to I think increases. price increases on those for price was It to us, future contracts dynamic we products only able bit on I most into supply fact in had had and we're set pass of prices region. quite quickly. by is -- And depending generally that able we're think to of forecast here, pressures OSB that referring competitive with would lumber our were our adjusted unprecedented. and backlogs, Laurie pass but we moved of disrupted. on along window backlog say then those The that moment that overall, somewhat generally ago of have was our I the outside our But a the a we in top certain

And so lumber even on those to we contracts. weren't able get

had market to to met. being we able the some go were not in spot current cases buy because to to obligations So our be

is I So one. a pricing overall good environment think

any. quarter is the of I expect don't compression. third we're think quarter, where after the that Once I should some compression much out of that, we if see third

Ashley Kim

labor more labor of Okay. to was That's have you changes ramping the any for meet that kind to your needed Act that CARES then or demand order you Thank order just make you a compensation and result in And the around to that. on way? of kind of to uncertainty in mainly helpful. did the capacity, bringing get that was

Mark Yost

CARES driving the challenges earlier the competition due primarily labor Yes, year. in to I Act it was the the for that think was

expect on packages a labor say overall depending I'd And -- enact, but more high becoming labor role could is government availability the would play labor I is things that levels certain of I definitely. they There's might as or other available, unemployment. think it stimulus availability, in available.

So for need homes today. work people product and company are people great work a we're looking good to to build, and for

which I is ramped much So it trained developed few really a months. think labor as as environment and a it's the pricing up, just and getting not for labor takes

Ashley Kim

that. Okay. I'll leave you. it Thank at

Mark Yost

Thank you.

Operator

you. Thank

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

Greg Palm

on. demand I of sounded back to spot, is from Good results cautious, quarter, little going right way thinking standpoint, guess I on maybe the everything a I to hate last optimistic thanks. but Yes, Mark, cautiously in mean, put the more light bit it. a you describe you to or

You bullish this gives order the backlog now the what of in seeing terms in some has sounded more you not rates, the a obviously, confidence that guess behind what that's that I maybe all quarter, But demand it. legs some we're lot given surprising. environment added

Mark Yost

I Overall, Yes. there's thanks one in good demand morning. multiple we Greg, think from channel every few markets. coming a Number and is, that things. and there's serve

past it's supply let's from from, one-time that the coming in So surge there the industry, was of MH contract, -- of it a which call years was orders, looked I'll large large kind sudden you generally will, coming either say, FEMA if flooded chain. -- you a a amounts in demand event, in if was which a

that a kind If remember, that had supply buildup then subsequently orders. years and of either orders supply in network like ago in the chain, destocking of retail a which lowered the you chain large two we accelerated a

channels, see from think what since -- really it and it's it are is we And They're position. also to here roots. good seeing in we're deeper generally inventories more multiple lean. speaking a coming is dispersed demand has I retail

to month are -- amount I jobs, what environment We're going dealers maybe few of seeing tremendous our actually talking financing or think to who think is are they environment a millennial apartment, on. of from our people to People of in by purchase I lost looking can rent homes. trying of out we're community, have live the good. lower out get traffic get their a high to save income $XXX one a going to payment a a and

and everything some was it, I of I current economic continuing which a driving the So with just think environment for lot time. foresee, financing

I have good. significant are I'm California, when So presence very we up by wildfires. demand was think even the that is a which XX%, order encouraged affected rates our in

and shipments, terms presence Louisiana, significant We yet like parts that some those in was States look shipments, -- States in of are have of a Florida, at of when the key some for which up were affected orders hurricanes, by significantly. you in us our even of were States Michigan down

and demand it to So very of has lot to to strong roots me, continue. a Very is it deep good.

Greg Palm

the inflation pricing, Okay, how good. maybe And missed sort we've it. has here over much given not all quantify, pricing I of maybe did in up gone terms seeing? sure of of I'm industry months, been you the recent

Mark Yost

that much, don't and -- not up per in quite dollars our so I would a industry don't know a Dan. say I lumber in by meaningful when NHB, number. has up. I in I lumber say, read right, builders, $XX,XXX about, But think doubles would per definitely if thousands It's quantified has been report up I yes. home. that pricing overall, site we of neighborhood. significant gone I price, -- recent saw think pricing, it's went But triples it's gone but I I they the home industry

Greg Palm

Yes.

be as is the alluding that help quarter, mean, gross understand expectations presumably beat margin, every certainly almost has but think stock. I you're sequentially. I raw are might up to the would And lumber us gone already I quarter, that pricing up worse. we've and Okay. our guide you guess because won't just to be for bad fact I shipments year-over-year, conservatism, guess up I the materials. covered And the a previous but you've may is be as back and since if though up pricing just headwind Even revenue going It assume from the it certainly margin probably means flat. That

in So us just help maybe there. [indiscernible] understand

Laurie Hough

one. that Hey, I can Greg. take

in of have hit the the increases our quarter of be And we're the same the going So of to are backlogs. prices because structure at trickle by over our lumber to of length time because higher to price the going December contract.

versus are see So the we quarter margins. and in third expecting significant sequentially pretty a actually decrease to

Greg Palm

I as plus through get baseline good the that pre-COVID. running we near-term of were Is I we're mean, when near-term mean, consistently sort of sort impact? this Okay. sort a you impact, this, XX% through of

Laurie Hough

Yes, definitely.

think I we'll able there quarter. shortly to be pretty back get this for

Greg Palm

Okay, perfect.

Okay. for Thanks. it That's me.

Mark Yost

Greg. Thanks,

Operator

you. Thank

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

Christopher Kalata

Chris Hey taking guys, this actually questions. Mike. my Thanks for for is

The first question, just more, want competition. competition Could comments us increased to dive and into the mean, just forward? competitive of dynamics [technical in continue you're that Laurie little given a should difficulty] difficulty] you seeing going expect potentially we kind whether right now, increase your I driving give [technical to that on

Laurie Hough

Yes. Thanks, and good morning. Chris,

I obviously, overall there. the competitive always think environment is,

is supply. today industry's most right think now outweighing to the manufacturing demand of I ability

the reaction see coming maybe obviously the good maybe sequencing that a the dynamics think inflation. speaking, I think pass to it's think than in you is competitive basis given that market. Generally competition company dynamics I a really just a might market. I more So challenging timing times, think manage on and the to on overall, is over That of are able lumber But geographic It's it's the and former business we'll of price lean are see more competitive and the others. months. the competitive effectively overall than pockets increases that not the I dynamic peoples

Christopher Kalata

is for to -- what enough, today, need like? cover enough you incremental it. do to here from through you peak that place once just that those in is look to that Or pricing then Okay. make guys with have the my of lumber this to question, costs? inflation Got you backlog, second pricing going the is still the cover kind And work

Mark Yost

I not price price really It's what it, to you overall try Yes, product forecast, but the the be peak a we think for it, you try to generally didn't and price full is you think the going always in forecast. necessarily, think inflation. I

forecast on are aligned think with coming lumber think we So our probably overall be. should down where I prices with we average

seeing So are is to of prices as products uptick to some start -- increase, that input those earlier. we challenges of lagging other to offsetting are lumber input we're to but seeing maybe chain they're that continue declines expected because the supply because inflation, lumber to starting decrease, lumber that other mentioned I in

So you're to see lumber going I think coming down.

kind think see of other with we materials be it's where in to come be up be going going to to line start it'll at. You're and

Christopher Kalata

could cost sneak Got more will pricing that your as to low on [indiscernible] I abate allow it. the just up? and If catch for one to what's just that clarify, the that commentary pressures is driving point

Mark Yost

Yes.

were affected outages. with backlogs think or year end contracts our I lumber time have So pricing, we that our through the supply either that the of same the at was by

our available, able contracted So we prices it weren't it at say, or buy negotiated to wasn't I should at prices. those

in quickly situation because the some went the to And to continue a where in some have cases so spot shortages margin that those or it and of backlog. you had go production the compress of just to so we market will lumber

Christopher Kalata

the Appreciate color. all it. Got

Mark Yost

Chris. Thanks,

Operator

Thank you.

Phil proceed Our Ng with next question with comes from the of your question. Jefferies. line Please

Maggie Grady

sticking for This Hey, increase hear to guess about and and insulation now lot talked I you've lumber is also to elevated categories first a the raw about doors. Phil. manufacturers costs, on good for we've materials, the morning. started make Maggie other roofing price but like

the this So quarter about how could you magnitude of you're and categories talk on thinking other of just about into the some I quarter? fourth into guess if those

Mark Yost

Yes. Maggie. Thanks,

commodities to the will overall think into start mentioned other pressures that you inflationary just those come from play. see we I

to mentioned. those materials roofing all quarter third you the increases think of I quarter, the and those on fourth is other closer early some commodities of end when seeing we're that

lumber in with the meaningful a our -- declines and the component that such believe lumber building within I So because process. home is

think actually things you'll of those net see most out. I

believe increase other don't be will I there'll overall I of those the or think an wise. increase So you decreases by some lumber mentioned. in offset inflationary be that absolute commodities just

think where should we're priced be. I So we

Maggie Grady

Got it.

maybe of of and the opportunities color some acceptance, about product And or Genesis then revenue on line you and the talk switching gears the year next the so? on, Okay. over rollout [indiscernible] the can kind on market

Mark Yost

Thank Yes. you.

product a is with exciting traction us. Genesis think well. We're mid builders tier for very I gaining that's subdivision going and and very small

able partners, the -- think some year we now multiple in crews that launched have very retailers, are subdivision our rollout set been by community turnkey channels, last focused last and primarily we one the underway do our finish received and we have of our our in Northeast of well I started the services that to that and Northeast. currently developments year to do

how builders to and as out very subdivision. turnkey builders a use price build quality as they easy solution and think find oriented the So especially the their it's it for I simple Genesis point, is

think of we I have this the developing very developers we're proof positive is our case that and So build product well. multiple really continuing that potential sells subdivision and works so good the to business

Maggie Grady

you. Thank great. Okay,

Mark Yost

Thank you.

Operator

Thank you.

question Moore Daniel Our next Securities. Please question. is follow-up with line of a proceed from CJS with the your

Daniel Moore

that little as challenging remainder that Thank run COVID outbreaks, think QX, ramp specificity of good got continue as you of we looking plateauing for cetera. rate for or for given October. sense again. potential about possible, et to bit, much more fiscal the availability, lumber as Is we is a a that that If up sort Totally so reasonable? production we've can

Mark Yost

Yes. Thanks, Dan.

day. we'll that I to on continue expect I think per production ramp overall, obviously the

take disruptions in we're given and U.S days it concerned produce I the things. cases. out of what think in to production and relatives get that floors I -- nature we're some of as be just the day. the people quarter, to per do units and see seeing in during we in number if expect seeing the the of even Canada and will that success won't the with related hard that to throughout you can especially believe absentee more higher continues and with spike It's closer we levels, visiting holidays maybe increase COVID elevate to may that COVID other

right and may after holidays. they come to into less right So be maybe likely work, before

COVID do also I on I and concerned the supply but So the am will that our increase, day production per expect outages base. impact that about

high of last single because towards overall year. digits few outages will to net we there probably closer even from end third a think levels just might more overall, saw producing current the mid this be -- so per though And quarter quarter tail production be And we're year. the the I up day, of what the of more

Daniel Moore

it. Got

into Although better equal should run QX, other in all obviously COVID it and fiscal position exiting the depending the sounds we else on be rate and like as quarter factors.

Mark Yost

Yes, doubt. a without

Daniel Moore

you. Thank Okay.

Mark Yost

Thank you.

Operator

floor Thank to you. Ladies session. Mr. turn and final question-and-answer gentlemen, back the concludes that comments. for our Yost any I'll

Mark Yost

continue to their I'm up you team only for good in everyone very what everyone homes out to but there. great much. work the for ability conditions has thrive survive, and impressed listening and done Thank keep here for our challenging these people. to great very just and not with produce We're

great Have day. much. you very thank So a

Operator

concludes you. Thank today's This conference.

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