Champion Homes, Inc.

Good morning and welcome to the Champion Homes second quarter fiscal 2025 earnings call. My name is Sachi and I will be coordinating your call today. At this time, all participants are in the listen only mode. A brief question and answer session will follow the formal presentation. Should anyone require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. I will now turn the call over to your host, Jason Blair, to begin. Jason, please go ahead.

Good morning. Thank you for taking the time to join us for today's conference call and review our business results for the second quarter ended September 28th, 2024. Here to review Champion's results are Mark Yost, Champion Homes President and Chief Executive Officer, and Lori Huff, Executive Vice President and Chief Financial Officer. Yesterday, after the market closed, we issued our earnings release. As a reminder, the earnings released and statements made during today's 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. Such risks and uncertainties include the factors set forth in the earnings release and in the company's filings with the Securities Exchange Commission. Please note that today's remarks contain non-GAAP financial measures which we believe can be useful in evaluating performance. Definitions and reconciliations of these measures can be found in the earnings release. I would now like to turn the call over to Champion Homes President and CEO, Mark Yost.

Good morning, ladies and gentlemen. Thank you for joining today's earnings call. Before we discuss our financial results and outlook, I would like to take a moment to honor the memory of Keith Anderson, a dear colleague, mentor, and transformative leader for Champion Homes. Keith served both as a director and former CEO at Champion, where his visionary leadership and steadfast commitment to excellence left an indelible mark on our company. His influence extended beyond our corporate boundaries as he played a significant role in shaping the broader housing industry through his board and advisory roles. Heath's career was distinguished by his integrity, innovation, and relentless dedication to corporate excellence. Heath was more than just a leader. He was a mentor and a friend to many of us. His wise counsel and warm personality enriched our professional lives and instilled our corporate culture with a sense of purpose and camaraderie. As we proceed with today's call, We hold Keith's memory dear and continue to be inspired by his enduring legacy. His contributions have not only shaped our past, but also laid the strong foundation for our future. Now let us move to the overview of this quarter's performance. Our performance this quarter demonstrates effective execution across the company, particularly enhancing our digital direct consumer strategy advancing the integration of regional homes acquisition, and scaling the benefits from Champion financing. These efforts have enabled Champion Homes to deliver more value to our customers. The second quarter exhibited strong growth, with home sales increasing 29% year-over-year to 6,536 units. Additionally, we saw a 14% increase in organic sales orders year over year, with gains across retail, builder-developer, and our community REIT partners. However, at the end of the quarter, hurricane impacts disrupted both orders and sales, affecting both manufacturing and retail locations due to prolonged power outages and the temporary suspension of policy writing by insurers. Despite these challenges, our team's extraordinary efforts ensured that our operations suffered no significant damage. The second quarter saw a sequential decrease in revenue from the fiscal first quarter down 12 million, while our backlog grew 23 million, resulting in a total backlog of 427 million at the end of the quarter. The average backlog lead time remains steady at 11 weeks, aligning with the end of the first fiscal quarter. I'm pleased to announce that the acquisition of regional homes has continued and surpassed our expectations. We have achieved the upper limit of our synergy targets this quarter, which marks a significant milestone for us. Impressively, this achievement comes just one year following the acquisition a full year ahead of projected schedule. Building on this success, Champion Financing, our collaboration with Triad Financial, has also gained significant momentum this quarter. Over recent quarters, we've launched new floor plan financing options for our independent dealers and consumer financing programs for our selected national products. The early outcomes from these initiatives have been very encouraging. bolstering our confidence that we can provide customers with a comprehensive and appealing home buying solution. This success underscores our commitment to enhancing financing accessibility, further propelling our growth in the manufactured housing market. Altogether, these strategic actions support our commitment to strengthening our market position and delivering on our promise of providing accessible, comprehensive housing solutions, and creating value for our shareholders. Looking to our third fiscal quarter, we are observing a softening in order rates, which is in line with our typically slower winter selling season. Additionally, we have noticed that consumers are taking a cautious approach, delaying their purchasing decisions as they await the outcome of the upcoming election. As we address the operational impacts from hurricanes Helene and Milton, I want to express our heartfelt concern for all those affected by these devastating events. Nine of our 48 plant locations in Florida, Georgia, and the Carolinas have been directly impacted, leading to expected timing delays in order fulfillment, home deliveries, and retail sales. Our focus is on the extensive cleanup and rebuilding efforts required in these regions, and we are committed to supporting our employees and the communities during this challenging time. Going forward, we do anticipate a modest decline in top line performance for the third quarter, projected to decrease by mid single digits sequentially. This anticipated dip is largely attributable to the timing disruptions from the hurricanes. Despite the immediate headwinds, we anticipate strong medium and long term demand within these regions spurred on by widespread destruction of homes. This is expected to increase demand and it places us in a pivotal position to aid in the rebuilding efforts, affirming our commitment to support the recovery in these communities. I will now turn the call over to Lori who will discuss our quarterly financial performance in more detail.