Champion Homes, Inc.

And welcome to Skyline Champion Corporation's first quarter fiscal 2024 earnings call. The company issued an earnings press release this morning. I would like to remind everyone that today's press release and statement 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 filing with the Securities and Exchange Commission. Additionally, during today's call, the company will discuss non-GAAP measures. which it believes can be useful in evaluating its performance. A reconciliation of these measures can be found in the earnings relief. I would now like to turn the call over to Mark Yost, the Skyline Champion President and Chief Executive Officer.

Please go ahead.

Thank you for joining our earnings call, and good morning, everyone. I'm pleased to be joined on this call by Lori Huff, EVP and CFO. Today, I will briefly talk about our first quarter highlights and then provide an update on activities so far in our second quarter and conclude with our thoughts on the balance of the year. For the quarter, we delivered more than 5,000 homes as we saw healthy demand from end consumers and a return to growth in our retail sales channel. Despite good retail order intake, we are still seeing a pause in the community REIT channel as they continue to set and finish their backlog of existing new home inventory. We expect this to continue through the end of our fiscal second quarter. The short-term pause in community ordering combined with the absence of FEMA-related sales that were in our first quarter of last year drove year-over-year declines in both production and revenue. In the current environment, we are aligning our plant production with order rates by channel. As a result of reduced volume leverage, margins continued to normalize to fiscal 2022 levels. I'm encouraged that our focus and our investment in enhancing the customer experience, streamlining our product offerings, and transforming the way homes are built and bought has led to a healthy margin profile even at lower production levels. Additionally, the current demand environment has driven average lead times within the historically normal range of 4 to 12 weeks. Normal backlog levels help homebuyers lock in both pricing and financing and benefits our direct sales channels to better meet the needs of their customers. Backlog as of July 1st was $260 million compared to $308 million at the end of March. The sequential decrease in backlog was primarily driven by the continued pause in the community orders and order cancellations in California. Sales orders in our first fiscal quarter were up 28% year over year. And quotes, which are a leading indicator of future orders, were up 44%. We also saw growth in deposits at our captive retail locations driven by a 22% year-over-year increase in e-leads. Sequentially, manufacturing quotes were up 17% and orders were up 50% from fourth quarter levels. Good trends given the pause in the community channel. During the quarter, we began production at our new manufacturing facility in Decatur, Indiana. This facility is a key investment in our broader efforts to innovate and streamline the production of our homes. In addition to traditional production at this location, we are ramping our R&D efforts in automating key production processes, and we believe this positions us to demonstrate the full benefits of modular construction specifically providing developers a turnkey solution at a price point, quality, and speed for today's market. Also, in an effort to support our channel partners, we began offering floor plan financing to select channel partners with the intent of growing this portfolio throughout the remainder of fiscal 2024. This investment will ensure ample credit to those retailers in timely delivery of orders to the end consumer. Moving to the second quarter outlook, we expect the community REIT pause in ordering to continue through September as they catch up on setting existing inventory. Accordingly, we are going to pull back production at our community-focused plants to better align the timing of the community channel needs. As a result, we anticipate second quarter revenue to be relatively flat to slightly down sequentially versus our first quarter. Midterm, strong end consumer demand for affordable housing, positive REIT channel outlook, and stable retail placements support our confidence in continuing to invest in the ramping of new capacity in Bartow, Florida, Decatur, Indiana, and Pembroke, North Carolina. This additional capacity will help us serve the upcoming needs from the impacts of Hurricane Ian and the growing builder developer pipeline. We are continuing to focus on our strategic initiatives by enhancing our digital tools, including our online customer experience and production automation investments. These long-term investments into our digital will not only be a better experience for the end consumer, but will drive greater efficiency in our operations and make us the preferred channel partner as we drive more engaged homebuyers to our customers. I will now turn the call over to Lori to discuss our quarterly financials in more detail.