Skyline Champion (SKY)

Sarah Janowicz Director of Investor Relations and External Reporting
Mark Yost President and Chief Executive Officer
Laurie Hough Executive Vice President and Chief Financial Officer
Greg Palm Craig-Hallum
Daniel Moore CJS Securities
Matthew Bouley Barclays
Mike Dahl RBC Capital Markets
Philip Ng Jefferies
Jay McCanless Wedbush
Greg Palm Craig-Hallum
Call transcript
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Good morning and welcome to Skyline Champion Corporation’s Third 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 third 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. fundamental on favorable the an morning historically high to an low confidence see as trends homes. new will Thank for a I as at fiscal well the and and our inventories next support and Today, the given balance remains lean industry quarter, also due standpoint, fiscal you, update strong of the will existing environment we to From and our the in year. good growth provide backdrop third on interest level, the I operations. touch demand of Sarah long-term homebuilder the housing rates single-family year for

model our are our We that believe operations demand encouraged by these to scale business environment. this we can leverage trends it as in robust

XX% throughput prior were last improve of our as improvement during up steadily. orders year. from quarter, homes demand up X,XXX quarter X% from delivered the strong see almost and consolidated sequentially, to continued continue the We our XX% production We third to of as year an

despite second for improved our the the U.S. expected by and reaching plant COVID increases achieved shutdowns. manufacturing the XX% During quarter, utilization holiday these from capacity production We the intermittent quarter, facilities X% quarter. sequential

due as we in fiscal direct streamlining increase prior year, were third able levels well achieved progress daily as and the anticipate the labor-staffing made have production part quarters. levels the We over the improvements that upcoming rates XXXX, have the to quarter increased further on to in during staffing improved, offerings. of – During production product efficiencies

we the of expect to our significant XXXX XX% COVID barring to revenues fourth up be fourth making, from consolidated quarter progress XX% With fiscal disruptions. or we are quarter any supply

plants in second were Our response in of order and demand. to the XX% performed fiscal same Western were compared the about Canadian also from sequentially to have Sales quarter. third stronger rates X% production up quarter also last XXXX the period increased Canada well. year up

backlogs quarter increases of a end our the during during an customers, XXX recruiting excellent order Due to As to reduce weeks additional to million. quarter. second backlog third strong to realized the the since demand, result the for operations U.S. quarter. the the U.S. the production The from of was which able quarter, grew job, weeks quarter employees, lead times and last the $XX an XX the our million at decreased $XXX third in XX have done hiring

to onboarding labor increased and will employees training these our in continue of are We new to accommodate our process for increase force the and homes. demand the

to stemming to driven us COVID. grown intermittent by quarters production the related Our largest upcoming delays allowed increasing than interruptions. chain will the sequentially, has and in production effectively from COVID-related and levels manage to daily more be output absenteeism challenges through year-over-year output which normal disruptions The have supply obstacles and higher

I recently as in care Builder, in and rating. that at new trust of traffic our well. we mind, say a Most great our receiving have and Manufactured that taking and home channel premium, is partners where proud channel of This America’s Our improved Skyline today’s to in five-star a know interest financing rates to environment higher retail more has to but are am customers conversion our Champion payment belongs that availability, named retail due a Trusted as customers. than down manufactured reported partners honor stores trust Housing the environment was XX,XXX survey only Skyline their to team, trust buyers, best in great not

reviews We are the getting which Genesis continue products, similar momentum with brand our gain market. in of to

that by operations dramatically options. why for partners. and have we buying expand, digital turnkey the and both Midwest than turnkey the Our The household and U.S. it Northeast Throughout regions is continued the market We announcing are as and positioned set invest millennial financing, our interest offerings finish provide offerings continued of production testing low of companies This enhanced channel expand a initial larger to in indications have we home housing our backdrop the ever the to crews redefine availability building and process. rates, we This automation of is solutions be in pandemic, believe and how design supported to we’re added well the to continuing before. work-from-anywhere for this how can to factories. will to revolutionary our and validate formations

intensifying these home near-term to the be in in buying investment for our evolve will areas customers. We

in growth North have We the strongest purchase U.S. manufacturing of growing idled the Carolina, as in two that mindful states in one January, facilities the customers are need we closed for also homes of our a such and on

in through call discuss quarterly will financials to working the automation I months. next to Laurie more are lead months times over in and turn now detail. XX our anticipate We the XX to the beginning production

Laurie Hough

outlook. of year. the or price. We U.S. in number of by increased longer-term housing as increase versus driven sales was also quarter, factory-built in The XX% average in the fiscal increase well The increase units segment homes of segment, to Net total last The as factory-built to U.S. sheet a due results cash for by sold million. well the a our homes, Thanks, the in of selling per Mark, revenue price million $XX,XXX homes third flows. our million year. in the average homes response quarter $X.X an and was $XXX I I’ll for same revenue expectations in begin same briefly everyone. and quarter, fourth compared and good increase balance X% X% factory-built price to our will increases growth the discuss Canadian X,XXX XXX rising morning increased costs. to by as selling discussion $XX.X of sold an of last the quarter reviewing by number in U.S. followed financial growth saw as quarter for by the material in to the our housing third

a revenue the the increased increased by which the the $XX.X XX% the a and in a fiscal number profit the in U.S. material factory-built response of home pricing year mix. XX% the a Canada revenue due compared units. relatively versus price. sales primarily stable XX% in increase same stayed to homes average in second to enacted to actions increase X% price quarter volume. up $XX,XXX to sold by XXX versus in increase The in in selling of driven third million, with increased of last were XX% $XX.X million to product to in year, compared This shift rising prior X% as increase We Canadian Consolidated increased quarter, gross year, homes was are costs pleased offset segment, driven by XXXX. average in sequential selling quarter growth quarter to sold last

for period revenue to and expenses, XX.X% versus costs increased initiated basis SG&A well persisted. $XX.X by ago, segment the leverage was $XX.X the actions U.S. benefit fixed ended material last variable in latter gross we’ve The volumes. net XX period a XXXX and of three offset $X.XX income down a program period net million, combination in was was the the increase XXth, XXXX decreased Our year. earnings partially $XX in caused rate quarter for December The margin third per travel points million months profit, the for versus we adjusted material market reductions due for higher income increase offset resulted flow same tax through during last increased of in effective in direct $XX.X ago. or partially a points million. half tax over The development X.X% and effective million the the the Adjusted tax months X.X%, third research million the same costs. share to rate compensation. was fiscal of quarter housing a a quarter. The an third helped quarter, of Net reduced third the income related from as $X.XX by decrease XX.X% for year. ENERGY increased recognition EBITDA primarily share the Company’s increase the year, of previously. The by that $XX.X tax driven efficiencies pricing result credit or XX% The year increase of U.S. The by portion as to gross per which tax of costs the of an to expense. quarter sales third higher of and tax rate marketing EPS in of and of million lumber basis tax same to to compressed started OSB in the has Company’s and in by study segment mentioned EBITDA few labor compared volatility a was SG&A credits to STAR the the of margins and decreased due effective due offset XXX to were last sales, costs, quarter material as $X.X

quarter. effective We throughout be the expect pricing fourth these will actions

our in retaining on Turning increased response force, to and demand. labor our to growing we’re focused team talent

see train capabilities can additional are near growth We in absenteeism dynamics plant we business. the changing in labor in administration All availability we or new if our are items There the COVID-XX. expected if continue intermittent instances passed. to utilize some the high said, shutdowns response some levers, of term, recruit, in production of inflation that the to the to level to experience and the the members short-term, of proposed market may We continue team limited support by be to longer-term. may and new related onboard in several labor

million the will of and $XX allowed borrowings I and initiatives operational December now last to million, no taxes equivalents we quarter to our focused CARES and during $XX on payroll maturities the the increase closing deferment the Act. an of increase million the June and compared on We Also our to We million our facility. cash in cash As XXth, outstanding generated The in $XX given revolving flow customer during position, $XXX of primarily is repaid of the some XXXX, with utilize we of business of had due growth balance the favorable call remain long-term quarter, flow $XX to cash reinvest same XXXX. operating credit operating until year. liquidity in during on by third employer million period deposits back and turn to for growth. and remarks. cash support to Mark plan our executing cash strategic

Mark Yost

quarter encouraged the as growth inflection sales return Thanks, in results the revenue. home total and delivered with the in Laurie. favorable year-over-year I’m we to points and we

positioned expand Our efforts meet to capacity increase has demand to us well growing strong the and and our our homes. backlog our for productivity

for secular open moment innovation market to for our we lines team. with The we with challenging extraordinarily are want strong to a by the able Q&A, people Company’s the now today. long-term I open what lines you to that our of amazed success. our in am may operator, Before execution have constantly foundation now team and lay I And thank the Q&A. conditions our the for accomplish combined that take the


session. Instructions]. Thank you. We’ll now question-and-answer a [Operator be conducting

is from Our today Greg coming from first question Craig-Hallum. Palm

Your line live. now is

Greg Palm

Congrats channel. Good community for demand versus heard space here. homes. any noticeable higher if this And anecdotally is dealers Starting difference you’re on in income morning, curious, Thanks. from a to what, I’m everyone. we’ve then the emerge new, that’s the with starting that quarter there the group just seeing a manufactured environment, maybe potentially the buying

Just seeing as curious that you’re evidence of well. if any

Mark Yost

I Overall, return to their started is would strong, channel Thanks the has still retail Greg, channel the community Yes. patterns. say morning. good and very ordering to

is So I think coming that back. market

today. definitely demographic a slightly there We’re of buying seeing different more millennials buyers, is

think attainable of for a of educated I starting are an looking to seeing our into that’s more buyer, we sector, home. kind kind move

new process you’re buying think is happen average definitely up that’s the to correct with end I December. of So the at to in sector, prices of educated starting there manufacturing more jumping that selling homes $XXX,XXX

So they about were year-over-year. up $XX,XXX

up Our over average – $X,XXX ASP time has gone in about just that period.

we’ve what spread about I year-over-year. $XX,XXX versus – between site-built So is think changed the average is

people seeing and for So value. you’re definitely look looking better

over I with then our and you homebuilding impacts to think – environmental concerns there built more concerns with mildew people are getting more homes the also, landfill site-built and and more health traditional know, is traditional just and that have concerned indoor. has and that homes people versus mold

all shopper the is educated new think factors buyer. which are marketplace then starting in higher generally creating I And are those come educated So of that’s to solution more buyer us. the is to today,

Greg Palm

an interesting perspective. Yes, that’s

the increases of on the some did? as is mean, heard of end flows that sort that double-digits, of maybe we’ve I double price we ASPs, where is up, to everything I up growth been quarter of U.S. think backlog? digit you top of range could what ASP out pricing ballpark relates the it should the As in north heard we’ve your further assume have ASPs the X%, there is that that

Mark Yost

our think we quarter, all of didn’t the increases we to I pricing of part during Yes, them. see see started

continue to escalation into going definitely. see quarter will our we price fourth So

Greg Palm

back like to then maybe I just then today. not and bunch industry it cost level, few seems like same last pricing And Okay. inflation I went commodity when the back one the recall normalize. stock, dynamic we But pricing went a prices with seeing we’re commodity a through up same thinking even and years, feel lumber

So if would certain pricing, input hold a point. mean, be that? tailwind this any you’re Do meaningful at to with is around, it pretty some difference able normalize when certainly cost agree could I there you imply actually there time

Mark Yost

definitely is to some ability maintain as if as margin think robust there environment stays is, of that some I overhang. it demand the

entire it think up the year. highly will demand challenged be will of the I year for the environment remainder think, keep is be Homebuilding supply chain inflationary I a aggregate with the to demand. and in up throughout

So majority inflationary on I year. relief of the side, don’t expect throughout the the much

Greg Palm

again. Congrats Best going sense. makes luck Okay, forward. of


you. Thank

coming from Daniel Moore question Securities. CJS Next is from

now is line live. Your

Daniel Moore

questions. Laurie. taking Mark, for Thanks morning, Good my

bit Just you wanted string the taking I hiring? on that COVID, to little Palm provide and that Any even to coming particularly will – the did just little You more indication capacity, and love gave light challenges digging to in streamlining, on great in quarter beyond seeing continued progress. just this the that the that a differently really steps – increase do a mentioned to you color terms but but What you’re more. pretty etc. we’re you you of where obviously from shake things of could. good quarter color and you’d if gave like this But a would out pull string wages

Mark Yost

Dan. you, Thank Yes.

overall, our increase progress year streamlining made throughout tremendous throughput. So fiscal we’ve to offerings the in product this

probably, increase a of think quarter we’ll because with product overall, utilization or in end As numbers actually next offerings, our matter end-capacity, probably we’ve readjusting overall some I just day. capacity de-bottlenecked refined fact, two, the I to our say the things at would of the the

to this it’s part, think frank, level production just be made people plant of out that increases, figuring the during and in at I conditions. to just solutions these large fiscal on But So year operate in challenging how the team really progress drive quarter. especially terms tremendous and innovation the and fantastic in during the has in

has to think issues lot I So and and between they team between to well. problem hopefully cross worked is solved plants, of There the correct identify happen collaboration very functions the to quickly them. before a

run into trouble. don’t we So

great future. streamline and our a and increase the offerings, team, benefit going product to raise the it’s overall having So think, it’s in utilization the I of also bar to overall

Daniel Moore

the feared. gross had a or to Got Laurie, lot perhaps fared it. than helpful. with probably it. much margins I better mean, Really throughput do the expected

quarter that be last to back Do getting back. that, case? Do see be would you may that little good of think you or expect this pretty a a the to time? quarter take I still this snap indicated XX% sort you quarter, it is more

Laurie Hough

Yes. Dan. Hi,

back get margin gross quarter. to we through more expect We range the move XX% that to as

Daniel Moore

capacity ramped, That’s much how capacity now? for months helpful. Once from fully do the those one maybe plus expect And more, to you add plants. incremental two new XX just

Mark Yost

quite Dan. a question, That’s have great that don’t We identified.

facility. working in automation the a through more some that putting will be automated We’re and of

to capability, months some will of done the we be So find I needed upcoming that here. in think, which

TBD for now. that’s So a

Daniel Moore

capacity in Okay. twos perspective? opportunity seeing to are you M&A terms add And more from and ones an of

Mark Yost


that pipeline. the I move always see we to deep think that have will opportunities, through we there’s as continue a year we

think, all facilities So I say it’s I very very the a is favorable. large Carolina will facility. in North

they’re generally So larger campuses.

one So of our it it – will be plants. will productivity. good very It larger has

Daniel Moore


color. for and thanks again Okay. Congrats the


you. Thank

is Bouley Matthew question from next from Our Barclays. coming

line Your now is live.

Matthew Bouley

QX. in Good thanks capacity you I XX% ask of just the been production It think But to morning, on, you to guided that Mark, terms have wanted worst of questions. that least of for at recent ahead the revenue taking you’re the congrats XX% touched sounds on of still about I the utilization running growth number. kind quarter to past orders recently the in like obviously it challenges. and

– further is kind an is running are my to is down is they from increase still ability So knock the there, there up peaking rates where backlog of actually to just production – question you – or against utilization capacity are here? that

Mark Yost

good in the factories potential will areas. we you. doing. which Yes, challenges related I the continued of we’re mentioned COVID supply Matt largest have and spikes be either on Overall, good really that morning, and think, our to the chain No, call – certain as our increase or plants, I throughput thank very

year that. they’ve effectively to the conditions and today. very steadily capacity Overall they’re that managed don’t continue utilization continuing do to teams conditions, them fortunate say normal the those I will are to to in learned so. operate think but in do have I We’re want operate throughout to increase, to

backlog during quarter. to from actually U.S. the in During XX our this second the XX decreased quarter quarter, weeks of backlogs weeks

that and increases progress the So seen. throughput we’ve with making we production are

just we to the to and So we’ll work demand we’re through it that every seeing from the very are is backlog, strong, channel. need continue orders continue coming,

more need provide just provide and partners. to to solutions our we So more product

Matthew Bouley

Okay, understood.

you online – you on, the about that? What can Mark enhancing homebuyer do, talked any some capabilities things one results you you thus bit like perhaps that. investments experience meant tangible about elaborate guess what has you I in been little and think some investments sounded Second far? – just a like Can of there it making and and and kind by

Mark Yost

been we’ve for some a digital Yes. price, investing quote, certain the Thanks, customers online pilot it then products and test experience can ordered. year of quite configure, for throughout the in online end-consumers, Overall, retailers, Matt. terms online get and bit design certain homes where immediately

so And test end-consumer and buying those more the will from seen We’ve interest believe very been online. successful. that people pilots have tremendous be products

going what that to making in I the success very it’s to phase And move phase a over complicated drive substantial so where buying simple, very can by experience pilot that we’re really think from home test a extraordinary where we to increases time today. demand call

we’ll I easier buy will end consumer. home. online So be think a it simple to those the make the make continue And we for to it better the it, solutions to can develop very

Matthew Bouley

it. again, keep progress We’ll that. congrats the Got thanks looking out results. And for on the on and


you. Thank

today Dahl coming RBC is Markets. question from Next Capital from Mike

is now live. Your line

Mike Dahl

I should on de-bottlenecking think, that about and about of you the I plans? to attributable automation that Laurie release Mark the as talked just and up – is improvements we comments Hi, capacity and in extent to in about you as what thanks, I how part some the think was follow the the expansion and also Mike, – talked just automation to and wondering of Laurie. capacity and wanted you expansion

Mark Yost

us. Overall, seen we’ve past the and I product year Thank test the that we’ve automation really primarily over proven investing of that out The good their is that mentioned driven I by automation. expansion thus Mike by streamlining, in far pilots been not you, to think Yes. success morning. have course driven capacity this

three And you it so want in think about I capacity to about think, two waves. really or if might you think utilization,

our ability roughly. which wave in XX% let’s bar two to product The on at day which utilization wave is us capacity XX% increase And first facilities, of another the can beyond utilization then end automate to raise ultimately will say simplification the capacity our the is that. the give by,

homes to So of really right a game from rolling we’ll automation and phase on of to some just board in developed prototype for suppliers and an be bringing our teams a to advanced some be customers. now, the automation we’re vendors our out with and ability phase that in-house our moving terms to partnering of up more the of automation start manufacturer

Mike Dahl

Got it.

Okay, second then that’s of the helpful. questions question a or couple actually. And

in secondly, have that the your wage a potential first there’s through wondering housing Just takes for have Laurie, from also just about Dodd-Frank administration would pushing then Can you talked think Administration that I standpoint. through, potential $XX clearly were at the guys? with and But potential And for and what the manufactured on effect if an studied labor talk Democratic – which negative kind last respect affordable if go puts and the change? to shift of proposals minimum to you effect time, inflation. for support for through you the you on or the a for I’m could quantify policy policy thoughts same responsible around had was you housing.

Mark Yost

two Overall, view tale the Yes. policy kind administrations. of I of the Mike. Thanks, change

think The been decades. that place first some for in of I the XX had years, overall prior or successful very regulatory was deregulating administration, XX administration, the for in in challenges HUD,

within they or think not were less I successful modifying jurisdictions. in local zoning successful

today’s barriers of impact view it’s in more for zoning think and at – that would administration, the administration I to level So – inclined a they’re local are I’d say the be probably ability probably today to do regulatory the new they more kind that. and

local priority a for a think administration. access Overall, big to affordable positive. I would the at the very is key housing changes regulatory and level zoning the think I So be a

I’m how confirmation more of made a confirmation as the saw days housing we HUD option. ago, housing Secretary saying actually the incorporate Secretary at an few a outstanding on new solution. during looking a manufactured said, XXX% her few can of supportive her she is you that If and Fudge, Later a reference, times manufactured

So solution, I which a were on radar, it’s of think part is already critical the positive. that a the big

think As not Dodd-Frank, far as I’m regulatory I other with. concerned barriers, as

I one watch reaction energy today. place think, or may the that administrative be challenges on is lending prior efficiency could housing, cost be and of and within HUD. time in was have challenge I for think that overall, other to And increase we regulatory that we to crisis put challenges. a to don’t excessive the the over type changes of have

Mike Dahl

really helpful. wages, That’s respect you? have minimum to And how Okay. with you could that done any around impact analysis

Mark Yost

just throughput escalation the automation is which greater payback just and improve of to Yes, not but increase we’re they time. expecting been not constantly labor investments improve to over some just looking pick naturally think we’ve has part we – automation and for return reason of to time, in mitigate prototyping at overall, in the wages, as I wages will the quality, up is and that been think some our the a But we will. we’ve

we’re it, think that sure that is some been curve. make studying we the that and done much we’ve of ahead prototype invested – expecting I why we’re So intently, to which frankly in we’ve that of quite so

Mike Dahl

Thanks, Makes sense. Great. Mark.


Thank you.

today Jefferies. from question Ng from coming Next Philip is

now is line live. Your

Philip Ng

a strong. clearly impressive out quarter. that XX% morning you very Mark, very for guys. sales Good the XQ to growth on Congrats XX% called

playing worked is down backlog. assume kind little that Some of you your of I catch as up a

type XXXX, what you expect? kind fiscal it of So us to sense, deliveries, would do of helpful a be of kind give

Mark Yost

supply as wane. the and year challenges deliveries steadily increase Yes, throughout will the COVID I think

range I on would we and So the think that year. for should XX%-plus increase mentioned prior quarter expect overall somewhere overall utilization to I I the

pretty on the the might the across happens So out current depending packages the what demand of I out that stimulus overall productivity administration. come of big see packages wait the will – because further we stimulus in other and increases of with production coming year. and increase levels type and

So right very book We’ve we’re I think increase. But mentioned now on call, Laurie as at XX% think is strong. still I evolving. seen pickup orders the order the

throughout of level to demand continue expect type So the we that year.

Philip Ng

it, to – bottlenecks expectation on have based growth is of of are your out that you – range, sales ramping Got up the to to price might you guys Mark, increases about comments takeaway XX% and just certainly well. the talking is there, these kind from your and how easing some as accelerate is up deliveries picking XX%

Mark Yost

I increases we expect as the and throughout go slow would Yes, year. steady revenue in

Philip Ng

I historically potentially your that’s then homes had that is little homes, lead going more lot than visibility. at kind of pandemic tracking was that modular gap a you may, favorably perspective, cycle manufactured Okay, super how more if time actually has quicker a home or And a changed Curious helpful. you forward? minimum, guys the for

Mark Yost


broke You could up repeat a for half second that? you there, Phil,

Philip Ng

presented think case Sure, forward? Is it’s Wi-Fi. for spotty visibility time Historically a that modular has going I still than my and Mark. the Apology from challenges. manufacture lead a been – the some better homes, and just site-built home, pandemic made had

Mark Yost

we’re think, running of weeks. at now the XX the quarter right I at end No,

know delivery side, there the challenges could and builder challenges chain fairly think of So vis-a-vis builders. I more times or I their be I the lead that’s more channel, time traditional and labor some site there manufacturer, do more more supply think good on is that side. with is traditional supply exaggerated.

start you’ll competing think and to I repair challenges start with lead see traditional even So the business. of and to homebuilders remodel side with times the the accelerate especially labor

positioned our to well I and So de-bottleneck think, lead as production capabilities some of in that. we’re accelerate times, our we delivery overall, very especially

Philip Ng

pretty quarter. you’re really good exit mentioned on a inflation sounds expect inflationary helpful. more question It also are that kind back super for fourth and Mark gross expecting managing But you margins progress get like to Laurie. of are And that’s a normal Okay, to guys year. making as you

assume to margins of another and So XQ, off for you should well? need round pricing gross of build as go obviously we continue do kind for accounting of seasonality to

Laurie Hough

closely mentioned as Mark a in hyper move fashion. very hyperinflationary in pricing as commodities – watching we’re So the

So to price very plant. challenges keep competitive geographies a certainly on expect and certain on based close of pricing eye – on

expect our do keeping pricing revenue So potentially be based able before, competitive leverage as and on to demand eye up, geographically margins and just talked cost with we as But going fixed yes. an to we’ve increases inflation.

Philip Ng

Super lot it. Thanks helpful. got Okay, guys. a



today is Wedbush. Your next from question coming Jay McCanless from

live. Your now line is

Jay McCanless

Good morning.

you First January, far compare in wanted magnitude raising you pricing does and thus question took that to all the just been confirm, to XQ? prices of and that some have in so, how if what

Laurie Hough

all Good inflation to commodities we just not relative morning. an – input and Yes, Hi, our to on lumber. costs, Jay. eye keep continue our of

have, based. it’s we so And geographically

So some have we January. taking been in it’s increases plant-dependent, but price

Jay McCanless

had into And is, then I like? the you homes? talk change to mix change HUD is what about driving millennial that you modular a so, happening could great. the starting come if question looks the market, is it in and Okay, second maybe the and where code commentary your that And between about had

Mark Yost

don’t Yes, terms home a driving or type home itself the that’s in they’re mix what of buying. of significant think I change

a point. just built with home along personal it’s a safe code, style, for I looking they’re think whether preference overall, think more and for and built whether price looking quality to code or good it’s modular really is a home. HUD They’re I the

in they’re dynamics haven’t are major it and level. between depends So buying a terms at shift their needs seen individual of the what a the buying. what the two, on really of key But we

Jay McCanless

but be improved question from me, on availability your and then Mark, last line much back quarter labor Got it. think, not I quarter. the it, last characterize this seems over and people to over the commentary And getting to about

staff look two And new forward? thinking those you Just the then your also feeling labors labor you talk are how plants? to plants, about ability to about these about for – you could

Mark Yost

Yes. you, Thank Jay.

we’re back will labor think people that. outcome good what how be certain those I return stimulus becoming on think better overall, are the awaiting starting we we Obviously, to will respond and availability of traction are to bills fronts. I is seeing work and to

got how three we’ve So on might depending maintain the to different levels respond keep on labor plans force. we what are, to drive and our and bills

more a As Carolina, be availability the in new but market. the we labor that as facilities, we those there’s far into going And as overall, have the new market also was two, I that in that facilities are good one, and labor I and of the think automated for studies people to one think need for staffing force. North labor did in to good looked plants less location understand likely

encouraged start that overall, to ability we’re think I plant. So by the

Jay McCanless

That’s taking all Thanks had. for great. questions. That’s my I


Thank you.

question next Palm is Craig-Hallum. a Our Greg from follow-up from

now is line Your live.

Greg Palm

thanks. Yes,

start. to clarification a maybe Just

think, of let’s XXXX, it’s were in much talking guidance I quarters from I fiscal a or revenue quarter XX%. about growth than now. March as mean, kind four the mean, comp say this I’m three rates I as the you thinking about XX% to Mark easier for quarter,

about talking when dollars of were rates in revenue as growth saying the the to we So in you gradual or still absolute you rates, growth were XXXX? kind you throughout could XX% year increase a fiscal talking that were about in go increase XX%

Mark Yost

is quarter quarter was quarter, increases absolute Greg, over talking over was I Yes, what thinking. I

in year as I think improvement revenue the progresses. absolute steady see we’ll

Greg Palm

Got it. That make sense.

on an guess given I just we update or out then, EBITDA is attainable and pricing And Okay. XX% I anything this given mean, maybe missed with I target the where I the maybe thinking are a of point top-line, the there, on with call. where an ago, but heard target? to year of that the it, haven’t margins. I improvements at back what sort all XX% guess, and had we are we

Laurie Hough

an internal COVID. XX% several ago, the timing We still the primarily is because Greg, off take did table the quarters target. of So,

shutdowns, going about. talked we So we is as to those impact experiencing still which are throughput COVID related

And impacted that, to Mark automation earlier. shutdown. our we In mind digital need see to addition going an also in some about and then of are and cost that was increase by to in SG&A transformation the COVID-related COVID our that we’re also, for suppliers talking keep

materials supply our key these we availability is So period. move chain from as through of

the of realistic put all kind striving timeframe a in we new COVID down before out it’s margin. that, still target. we’re are factors see of to bear want settle we think type related those for still we XX% we and So internally, mind, for a But

Greg Palm

taking great. Okay, for Thanks the follow-ups.


any end turn Thank question-and-answer the of further session. you. Mark over closing for floor comments. We reached to like our I’d back to

Mark Yost

Very we’ve you the to thank time everyone made. to good. Well, our taking into call and progress dial for listen the

and We presenting forward our May. Take and Look care you innovations team operation. have great a results for our stay great in safe. to and


That today’s does conclude you. Thank teleconference.

you We your this and line wonderful for your disconnect day. at a time, today. have may participation You thank