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Skyline Champion (SKY)

Participants
Mark Yost President and Chief Executive Officer
Laurie Hough Executive Vice President and Chief Financial Officer
Daniel Moore CJS Securities
Greg Palm Craig-Hallum
Matthew Bouley Barclays
Phil Ng Jefferies
Call transcript
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Operator

Good morning and welcome to Skyline Champion Corporation’s Fourth Quarter and Full Year Fiscal 2021 Earnings Call. The company has 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 the company’s 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, I measures, today’s can believe in during company non-GAAP will which Additionally, evaluating its reconciliation can release. measures of in A earnings the be found these call I like Champion’s and Executive would Chief Mark to the President now Officer. Yost, over turn Skyline to go Please ahead.

Mark Yost

Thank joining call our and morning everyone. you for earnings good

about so full I talk about productivity pleased top activity in delivering the Skyline our me call for levels to Laurie balance our is update the briefly Joining far then of the delivered Hough, EVP in an and the quarter progress line quarter, year. will our customers. up and year growth continue I fiscal Champion we make on the with and am highlights, and provide fiscal CFO. and Today, thoughts achieving as with XXXX capacity first fourth on results improved wrap

operating We million terrific finished by environment. in unpredictable results an this continue extraordinarily to the to the as we results due during outstanding to robust grew we adjusted existing new that rates EBITDA we for to solutions robust to provides and an success industry single despite our I we fourth and business demand the am Champion interest standpoint, our to leverage Skyline new housing. XX% remains delivering by points. and capitalize achieved strong the year for can margins believe homebuilder the service the demand homes. and high-quality We scale $XXX low proud expanding see business confidence and facilities increasingly continue consumers and across with the am levels, levels. lean quarter, model growing production I financial for basis our high operations and family ability challenging inventories with had historically and environment. operations at of housing. For we and From and affordable expanded confident idled team restricted of year, started to demand we on year XXX

demand financing, historically low become driven looking earlier, numerous of stated rapidly factors, millennials is by to As being inventory and number growing homeowners. levels including favorable

Our affordable growing that, $XXX resulted demand. the $XXX reach price million order with created And ScotBilt, along times of fourth these in quarter strong the acquisition during by million. point inflationary backlogs during to

of Fortunately, despite allowing us moderate weeks the we March during XX times the quarter, in quarter, at our of end to end were growth in weeks our able third increase to orders. surge to customers compared the the production to XX delivery the the at to

increases solid caused achieving XX% and XX% the As utilization to production We X,XXX production homes, during a the quarter, year result of of an despite XX% an increases, points third sequentially. and by prior X the up from manufacturing U.S. the facilities of disruptions our percentage we industry. improved chain our facing across delivered these capacity from operational supply challenges quarter, increase manufacturing operations improvement

made Our in due increase on part to over streamlining sequential efficiencies the us improved daily progress rates allowed offerings. third quarter production achieved the the production in product to levels

While as well we year plants continues volume we XXX% increase challenge. workforce, saw people sales progress prior to to the over made to sequentially. XX% availability a Canadian and our were We add Western as in labor homes able from be

in significantly announced also mid-south we enhanced distribution manufacturing quarter, attractive in Georgia. the region with of which the the acquisition X presence During and ScotBilt facilities Skyline’s Homes,

capture forward ScotBilt thrilled are synergies. on continuing We have to to to team and board the look

our and in We solid strategy. to as value shareholder deliver are overall meaningful capital allocation confident ability part our returns of

stimulus economy quarter, strong the for anticipate would and then materials normal higher to that housing in the raw of and starts remain that moderate what and extremely fade. supply demand believe the revenue as time, chain second and the compounding we quarters the we attainable will the labor, similar levels challenges line same to expect in Moving quarters. quarter into sequential At starts then operate the fiscal ‘XX, first effect than and top our levels maintain to and the reopen we have to we cause decline to which fiscal We fourth in saw of third first XXXX. the for second

these to We subside and quarter return quarter, us will challenges fiscal subdue allowing expect levels. to fourth by first our that

we our and Inflationary confidence antiquated Therefore, enhance increasing, today expanding capacity hasten short-term millennial practices. rate ‘XX, performed will With and supply formations outward. move focus site-built the production our to household we to investing in housing five-decade methods offerings. will While side transition our entry-level supply we gain during turnkey pressures in from in looking low is currently fiscal manage on digital modern our focused to more are our the continue only and and a automation through processes. interest challenges away hitting into

channel will we enhanced as housing experience of more Today’s ‘XX, to sustained and manufactured our seamless who our call, into last by In our new initial our experience XX,XXX accelerating our in Tim and homebuyers. best addition create rating expectation. experiences that builder need growth that able named Tim for on Chief Growth the We our our and experience will as the transforming company’s diverse has pandemic him we customer The only and a Larson trust of growth. platform. Officer more to accelerate attainable that a our team senior with they and during mentioned investments we a investments due digitally receiving across efforts be strategy partners most-trusted brands Champion proven customers customers X-star quarter role, into supply as leadership our digital than develop to even brands of fourth experience our at housing digital our industries. need and in was the with reward We Skyline trust are retail. experienced him affordable more Skyline With new growth homes. industry this opportunities in being in portfolio omni-channel simple America’s a can digital expanded deliver for performance to orders our am can significant recently for and and and manufactured company. The and consumers customer to platforms this fiscal survey intensified and I confident brings solutions

to central in will to a as participate affordable high-quality when Finally, fiscal demonstrate to commitment in practices gases we homes program for ESG in every our now replenishing detail. well programs yet of quarterly fiscal tree more products to financials the business construction with will reforestation Reforestation protecting initiated watershed. as plant company-wide I homebuyers. of one call the to to reducing a in and greenhouse ‘XX, providing discuss our have homes. construction to program tree in our we plant-specific turn used the everyday forests, continue the launched through and by have contributes Laurie through environment Beginning the homes our we ‘XX, to to forestry over

Laurie Hough

morning as flows. the discuss good will quarter, fiscal followed results I our first as everyone. cash and well our the also begin our discussion sheet will financial reviewing by by and expectations briefly for balance of I for Mark outlook. Thanks, a quarter long-term the fourth

period. few that year to highlight Before our like the a compared to in results I impacted quarter would reviewing dynamics ago our numbers, the

compared our The quarter fourth release, approximately the in our of of had press the during XXXX fourth in extra fiscal in week quarter. accounted $XX an week mentioned to year for we million extra fiscal As quarter XXXX. sales

of have month its March. In addition, XX results for February the and we acquired included on ScotBilt Homes

X,XXX factory-built at experienced to the we COVID quarter Finally, which negative to Net from the last of growth last saw XX end year. quarter the $XXX.X in of in fourth driven XX% as that us quarter same period. versus was number well $XXX selling factory-built impacts sold segment overall million. to an sold the increased our per year, levels total homes in We U.S. of U.S. year. caused The revenue reducing or in number The close price in the of average by increase the housing rising by of revenue product an segment for and to the homes as fourth $XX.X increased mix million plants production same the XX%, growth of U.S. The a average factory-built compared XX.X% response to sold last costs. material restrictions, housing units due million sales homes Canadian quarter in temporarily increase to and for in homes by price. $XX,XXX increase increases the X,XXX selling price in increase was

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

of million will investment to system marketing the the share earnings of gross quarter variable last in year. quarter net segment costs and up segment by quarter decreased year $XX.X million, to fourth a leverage diluted improvement direct offset basis for million the quarter to of of recognition credits. efficiencies was XXX% fourth Net of $X to fixed basis deferred due driven last of same to a a in revenue the was year EPS for during million the of gross XX.X% year. expenses higher increased for for an Our tax result share partially $X.XX sales asset fourth points income enhancements, year and period and year. by due from experience last million, Lower XXX customer XX.X% a margin the or XX.X% by caused accelerate labor quarter $XX.X due period same leverage per growth, diluted same effective ago. as year company’s the $X.XX the XX.X% volumes. more rate offset compared U.S. per gross ago in margin income increase or decreased adjusted and by fiscal increase of EBITDA and certain housing than sales, over the The an were in The $XX.X travel Adjusted tax tax margins period sales expanded to combination online of and tax higher to rate XXXX points higher in valuation were profit. $XX.X increase the higher fixed effective allowance, company’s of effective a quarter. costs. rate increased was which tax other compensation versus the by EBITDA SG&A primarily The net from company’s throughout continue was The XXX

building quarter and fourth Forest product inflation to increase into our first well as continued quarter. the other product as XXXX during costs fiscal

we supply pass qualify to of global by inflationary at for chain the further several in levers as we quarter seeing as operational we our availability due during these material well adjustments, on call, material Despite raw inflation including to costs, labor higher the ability conference financing rates. our continue well. make of increasing labor raw standardization, As during materials to substitutions homebuyer’s our can increase product be began and utilize production to discussed are the periods impacted qualified improvements, third as response the challenges, and an inflation availability improvements. may labor price in to There and operational efforts

$XXX in As of to June X, of cash by employer We of long-term raw prior cash cash year. material year, allowed we the were customer of XXXX. primarily $XX Act, inventory flow million an increase payroll million by balances. in doubled which million operating no and the April cash partially from for and Cares of maturities operating the flow the offset generated $XXX of borrowings and The in is with deposits deferment XXXX, had increase increase equivalents which taxes income, due net until

liquidity to for reinvest turn acquire to Mark During used hand business and initiatives growth and our strategic and remain cash favorable quarter, our closing back on position, I to now executing the given plan We of on the call will fourth $XX.X utilize we million operational on growth. in support some remarks. ScotBilt. focused cash our the our to

Mark Yost

I fiscal Laurie. momentum with Thanks, solid and encouraged we business in am the the our delivered year. results this

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

our take team. to with Q&A, overcame delivered Before year to moment while crisis we has challenging housing the strong open unique and the and the am our everyone, thank solutions Skyline solve for now a the lines this with even lines the the along results and may ensuring truly execute to I ability our those safety and And Champion open way. want more been for that, and forward team innovative of strategy home This going our all a confident year. you Q&A. challenges involved extraordinary operator, in for affordable after I helping

Operator

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

Daniel Moore

taking morning. the Thanks good Laurie, and for Mark questions.

Mark Yost

Dan, Good morning how you? are

Daniel Moore

little more experience you then tangible described. of separately, a on examples well digital provide and process? specific are congrats any I can execution of examples am review the the you Thank some you buying really customer simplifying team. as a initiatives how where And and you be of projects, few ramping of those Maybe where Can projects are helpful? investment with the on you maybe detail would you automation as start well. bit and kind

Mark Yost

Dan. Yes, Thanks, sure.

as it we thing experience, to retail I an leads doing experience their is are make and first buying think of the partners as easier amount driving increase a the customer. business far for channel buying to the to tremendous our

salesperson comes looked retail for that what and customers’ in, want online, pre-vetted customer retail channel know serve they much because the it the a if So, partner the easier with priced home it, the it’s to they they needs. at they

a from delivered home options the going. first backlog, to think I of more find it can along design to our second customer make home then transparency allows that step A I have providing and buying home, configure is the channel that long that when online the retail very a order that that Dan, that where so that process and in they in is because maybe vetted process, is going So, pick that’s is think more take, to leads and partners. is your with see step how world to the to in easy communication selection process eventually

end rather the finish customer, crew frontend. to make the set set, of easier So, systems I seamless retail different it having too, to a home community our through end think it’s multiple have have so either turnkey the country turnkey also, partner our then really over those experience of a that will and to connected and a for streamlining some the solutions investing it’s handoffs of partner, parts we And in customer finish and/or be been with in than can U.S. in, all and and just a digitally. the that that

process of to handing and is seamless the like looks it customer the So, the the makes buying baton end enjoyable. more

Daniel Moore

side, maybe there? able of be And share Perfect. you of on the – automation kind some might the examples to any then

Mark Yost

Yes.

there far, side, don’t are have processes have have many on don’t good that that things, we Dan, come work Thus out there, capital. and some to automation frankly, new the on studied think bear. or is return that innovative seen I and a

that have are companies the met about tools vendors today that that being speed off-the-shelf, XX starting suppliers really are now be different have XX come of meet speed new there We quality. we to are is a and/or can But that, meet today, many or designed, that’s automation that cost the handful equipment actually not that what and doing components out to process effective would and/or seen savings to or quality and developed that with is things. of is needed. different and In or

into but investments – some there we yet, in be potential quite throughout not are right see that the are we next on – are and horizon going we year. this actually, to we So making the next year

because level. – proven on high it’s a least itself at So out

Daniel Moore

Got it. gears more. And switch maybe one for

in of are enter for some you QX pain talk materials? as you you QX you about industry? What fiscal the Just kind as substitute of those and procurement availability. maybe points biggest are alternatives raw the and terms the material of fiscal or And that described seeing

Mark Yost

Yes. Thanks, Dan.

largest us. think I raw material industry and probably the would for driver be short-term for supply chain the the specifically

supply look production themselves. of challenges many – dealing supply the partners with we of our As are

are and in they going place. out So, allocations putting

said, certain So, give have material They will an raw we critical got. year-over-year. increase we supplies that you

that However, increase reduction XX% fourth were roughly quarter. in year-over-year a where would mean to we the

I the get So, create challenges working problem allocations supply substitute are are we we materials as chain year. going through. got solved through those have that several to given But either we were to work a on think components which

find can the then tubs, is issues the can fiberglass than of substitute maintain two-part certain but it’s some short-term production, today. for challenges insulation. day-to-day categories, issue that and/or confronting if allocation we we levels just Other adhesives, products hopefully, supply of supply So, of materials those larger really in PVC,

I think I It’s volatile of year. through it’s larger it’s exceptional very situation. thus the today, The be that team has but will an managing the this think job issues allocation – – volumes far. driver done a

Daniel Moore

any will jump Thank with I follow-ups. Perfect. you. back

Mark Yost

you. Thank

Operator

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

Greg Palm

Congrats XX% Congrats Hi, the good getting stuff into Laurie. overall. that plus morning as EBITDA well, Mark quarter. and impressive really on margin on

Mark Yost

Greg. Thanks

Greg Palm

And just expectations I I color unit of to I solely related appreciate those for the some line, the on are wanted about top ask quarter starting production. the you just clarify a somewhat in we what I ASPs go-forward see prices basis past the what reported assuming higher is, am home the doing. on will on reason whether I just off, based fiscal guess the guess to be year. comments or why pricing than

that’s commentary higher sales home from top am well? contribution on or line curious the incremental if as includes I if So,

Laurie Hough

that Hi Greg, I take can one.

versus kind through the quarter fourth ASPs to moderate, going to in moderate ASPs expect of really growth the ‘XX. fiscal we So, forward

We product going price but have through, going in with that’s to to some are offset comes increase that mix. be

Greg Palm

it. Got

Okay.

singles than maybe somewhat a like-for-like down basis. multies, but the brings which ASP, So, more on prices higher

maybe thinking? So, evens that are you ASPs. out what That’s

Laurie Hough

You got Yes. it.

Greg Palm

adjustments the production decent Got even looking in extra still And you pretty some the for back shipments amount. you a just make industry quarter, it. by or if week, are outpacing

row. quarter it’s second a I think in the

this I some it to don’t if I So, that online maybe others sustainable don’t, having forward? byproduct digital is it’s are know returns gains. initiative, of implies share you starting – a How that’s available in capacity that going additional don’t know. see

Mark Yost

Yes.

definitely The has definitely some we had it’s think – team sustainable. I have gains. productivity

labor just have in definitely up the of productivity Our efficiencies year. picked and the second half

that I So, chain continuing borrowing and supply – chain see progressing supply issues.

that’s So, mix. encouraging. us more and product very we to standardized bringing digital the are of I yes, been think a vetted simplifying And then, our solutions product, have

year I those allowing factors, we terms gain in this share So think have especially past all to the and are of us states been helping us Greg, down given that today, of many of volume. in participate

Florida participate states in the So, some of key Pennsylvania, Michigan, in, California, we regions. New York,

you those actually If total are housing, at manufactured down. industry for look shipments

us quite gain is for down key of encouraging. serve the So, year some geographies overall were to share we when the for

Greg Palm

a good That’s point. forward. Thanks there. I going it Best Alright, again. great. leave luck Well, will of

Mark Yost

Greg. Thanks

Greg Palm

you. Thank

Operator

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

Matthew Bouley

ask on the taking the results. Congrats for pricing Thanks the everyone. morning on Good back wanted side. I question. to

a eye an for You prices that and you people move the financing the comment coming prepared rate about mentioned growth made qualifying on and this remarks moderating in higher. keeping year as

a this increases, ability typical you. of the it point to for about the affordability kind consideration stretching on price think accept too or at customer further there you to any manufactured far? ceiling do not housing just is of Thank how Just

Mark Yost

Thanks, Matt. Good morning.

by the is definitely fallout watch still. yes, what low we at standards for Right think, that. historic call very now, rates lenders I we

some price definitely our increase, that seeing create a way. so But increases site builders is more in vis-à-vis as I So traditional we’re prices lower. ceiling think what much will is really

attainable more qualify moving getting qualified into they moving a affordable price they home, kind home, home. but actually we’re point can’t a home So a more could but are site-built for Maybe maybe they so in. have they couldn’t are homebuyers of move state-built – for now a they that

rate manufactured construction those generally, does as happen, and generally than inflation or increases So during site-built off-site better happens interest housing times.

anticipate So as versus as over share time. we site-build this, see we inflation see we the gaining and

the – So are that’s any are lenders. yet we fallout But haven’t a at There seen positive rates we watching concerns yet. is significant not note. but it, we concerned on

Matthew Bouley

Thank it. that. Mark. you really That’s helpful, for Got

XX% just the on margin one, why seeing the versus long-term year you’re the in the side, soft months, margin it’s rate quarter of XX% call this margins, sustain strength volumes you. light obviously, north a Is the and can’t on it X there goal full puts reason price double-digit any of Thank given only on of Second a kind year of takes cost? on of EBITDA ahead basis. but that all

Laurie Hough

Hi, Matt.

number, the got consider So things. couple XX.X% a that of in we’ve to

We fourth extra in week have this the quarter.

our mentioned, were had we able from Mark we fixed production. more to simplification So with leverage costs labor products. of efficiencies significant

that benefit barring than kind more any price market forest which cost, seen a fourth see based So our we of the at our on way did backlog. quarter, looking we’ve we will the – product products and versus sounds those that but futures But labor futures forest significant is continue, from certainly in challenges.

dipped to saw continue accordingly, going cost those forward. we features going but slightly. actually priced then the not so That’s And and

So those The it XX.X%. was XX% our because from of actually pre-COVID we see mentioned, Mark reasons are coming our higher. volumes. margin down Is the at as volumes, is And had sustainable? actually

well. So as we that have impacting

into our to is our go and going direct-to-consumer SG&A EBITDA the that’s component offerings platform. in increase digital margin an in Another from investment

Matthew Bouley

helpful. really and thanks, you, Okay, Thank Mark. Laurie,

Laurie Hough

Yes.

Mark Yost

Matt. Thanks,

Operator

Thank you.

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

Unidentified Analyst

any base our site-built, on questions. are rollout? of kind seen of also, update first the you of any part customer evidence traditional market? some having given of they Genesis the tangible do Have the come kind out, you of struggles I taking wondering you And that Chris kind for Thanks Hi. My have any broadening recent strength particularly of This guys on is of was Mike. the side, the on to if seen calling from builder complete question, for demand homes. your

Mark Yost

Yes. Thank you.

two recently – the I high is builders construction costs. One site of site-built things. we’re just material side, think seeing on because pause the

have very still still cost structure, we – producing. not affordable We we’re with are and our not

that is So switch happen. I yet to think

I too of switch. much that see think it’s stage to early the in

in to of continue produce. because to lower production, we’re activity pause these levels. high costs, And construction even builders As able at still point margin price make

for it’s a have. cost most structure So more than builders effective us site

but a start think So it’s transition number. I in from of will flowing handful that going to at least happen, take one a months the really before other people to side significant

side, Genesis site the meet those definitely to is and increase a builders. is make we to us challenge The activity amount on tremendous On been and still adequate output the there just have for of sure interest supply for demands that.

capacity but has acute adding in get it we primary focus. So, supply them It’s can well issue product the sure demand allocations make really for much – adding to supply a and not is been Genesis, is is the so builders issue very as itself a received.

Unidentified Analyst

Understood. terms in of between and channel? any Thanks has that. channel, by been notable differences retail there of kind demand the for community trends And

Mark Yost

No.

I bit was little today. the of returned and channels I community probably more even more And the retail momentum believe out say, of initially channel of are pandemic would currently than I channel adequately they has channel the say a than strong. bit that community the I retail. both pandemic. kind would strong, with probably the at softened, think Retail bigger community a have even little recently returned beginning

strong outlook. So it’s just a very

housing with affordable For think point housing rate the and increases. today’s attractive is I the in price concerns inflationary demand, market particularly over pressures interest

Unidentified Analyst

taking Thanks questions. Understood. my for

Mark Yost

you. Thank

Operator

proceed of Instructions] Ng the question question. [Operator from your Phil next Jefferies. is Please you. Thank line Our with with

Phil Ng

on morning. Hey, you a mentioned said On Congrats another strong quarter. Laurie, pricing little bit it growth forward. think going may I guys. Good pricing, moderate that

little and of have out get taken and offset So to level, color drive kind to pricing supply maybe ability we’re inflation called want seeing? through just this on I the are would pushing of all your more year? you in margins more enough I stay suppliers constraints to You imagine that front a price. from the a inflation high

Laurie Hough

taking Hi, it. information the just be has sure majority everybody we best eye inflation, been, we have of on can Phil. we’re to and that the based honest, on Yes, call seen commodities are really that I’m the keeping volatile, I so offset are future think the to on price an increases doing as show the perfectly

So going integrating backlog to also that’s pricing. acquisition ScotBilt were we flowing and through have are that their be pre-acquisition

So just in and the coming of quarters. that’s of component margin another price through next couple

Phil Ng

kind constraints on that Okay. optimal of your better, strong your getting That’s end considering that demand meet your on? a on helpful. It – you’re to The demand? an bringing production suppliers. get XQ. at have you XQ out, and levels And getting sounds and your the from it’s in Just like calling Any meeting color help when from getting standpoint will your least more you’re level end? any issues supply from of material production mothball potentially that facilities and

Mark Yost

Yes. Thanks, Phil.

the on we are have limitation make at some our supply those materials I Really, operate primarily looking today. want sure is to effectively. plants chain driven of think bringing anxiously we idle to facilities. adequate We there

The been good. has improved, we’ve very been feel has onboarding we year has process So been this better. done

been Our training and a our people doing great have job.

So I need to where internal think of all of – are not processes, those they those be. some they

team exceptional of we some but internally. doing room the is have done simplifying operating processes job an has I improvement, think the there for and at always

long we have materials operate. production very the ramp feel ability to adequate as to good I about So as

is supply housing very we demand a in looking we in needed the to capacity I see will we supply. So see think when break be affordable chain, bring because on more

Phil Ng

these polyethylene-type of it kind are long they for out you of terms which Thanks. bringing more on material, don’t are storm, a out type facilities in some the Texas little I on what if side And from these and color on And about one, level, of know then standpoint, lastly, been that from on a Mark, seeing been operational really these the that How supply from mostly capital few of material PVC, have material impacted note, is a were the of called in some because intensive? I mothball time. Are but material capacity, of you have you impacted, think them. constraint might a general? anymore talked of more a

Mark Yost

Phil. Thanks, Yes.

plants think we’re I looking the idle to restart. on that

fairly get one it’s or some them of restarted. those think having with lean We to plants do capabilities. two capital restarted automation I anticipate

facilities the put time our And that little a that be crazy. as with So longer, then little will think to expensive, bit more facilities, of automation a we may restart into low levels. in some nothing little market we get different. capacity our on a But the from will I standpoint, quickly, that but lead be to take very CapEx

what’s up I think facility capital it’s open our – is? Laurie, a to normal

Laurie Hough

$X $X million million. to

Mark Yost

million It’s $X $X fairly low. to million.

Phil Ng

And it. – on sorry, I am the go Got ahead, sides Mark. material then

Mark Yost

of entire any to in supply chain, effect to definitely material side, we’ve functions, And hiccups cascading on On will supply issues mentioned, the side. that. that the And the some such that’s I destocked as in a – we’re the lingering. seeing starting a up petrochemical other effect. clear allocation that you challenges cascading chain It’s the think is level it create from has certain but

a fiberglass well for going other I people supply part it’s that it’s in labor think will instance, products start-up period little and having functions, linger can’t or or a that initially I and be because certain because of in we as than maybe times immediate difficult just bring solution capacity bringing and side, at back repopulate definitely to quickly. of petrochemical anticipated a like So items year, time the capacity and they a to throughout have portion you are on think of kind they other least longer the But time up on restock ramp general. lead to have in longer plant, an chain and that the are also insulation anticipate

those time side. So, more going also of longer on lead items some be allocation the are to

Phil Ng

Okay, it. great Really color, Mark. that’s appreciate

Mark Yost

Thank you.

Operator

back comments. the you. I’ll floor Thank this Mark closing time, to At turn for Yost

Mark Yost

for and attainable for homes in U.S. throughout thank solve look this I’d and great good Champion. a interest, people provide Thank to We like morning affordable safe, country and housing to crisis Skyline to interest everyone you Canada. for and quality the stay your time day. across the and have your forward and the on continuing taking

Operator

This conference. conclude will you. today’s Thank

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