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SKY Champion Homes Inc

97.41

0.33 (0.34%)

Last Updated: 05:02:29

Delayed by 15 minutes

Form 10-Q - Quarterly report [Sections 13 or 15(d)]

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 28, 2024

or

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number: 001-04714

Champion Homes, Inc.

(Exact name of registrant as specified in its charter)


Indiana		35-1038277
(State of Incorporation)		(I.R.S. Employer Identification No.)

755 West Big Beaver Road, Suite 1000
Troy, Michigan		48084
(Address of Principal Executive Offices)		(Zip Code)

    (248) 614-8211

   

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Stock		SKY		New York Stock Exchange

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filers,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act:):


Large accelerated filer	☒	Accelerated filer	☐	Non-accelerated filer	☐
Smaller reporting company	☐	Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Number of shares of common stock outstanding as of October 22, 2024: 57,403,251

CHAMPION HOMES, INC.

FORM 10-Q

TABLE OF CONTENTS


PART I – FINANCIAL INFORMATION

Item 1. Financial Statements
Condensed Consolidated Balance Sheets as of September 28, 2024 (unaudited) and March 30, 2024	1
Condensed Consolidated Income Statements (unaudited) for the three and six months ended September 28, 2024 and September 30, 2023	2
Condensed Consolidated Statements of Comprehensive Income (unaudited) for the three and six months ended September 28, 2024 and September 30, 2023	3
Condensed Consolidated Statements of Cash Flows (unaudited) for the six months ended September 28, 2024 and September 30, 2023	4
Condensed Consolidated Statements of Stockholders’ Equity (unaudited) for the three and six months ended September 28, 2024 and September 30, 2023	5
Notes to Condensed Consolidated Financial Statements	6

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	16

Item 3. Quantitative and Qualitative Disclosures About Market Risk	29

Item 4. Controls and Procedures	29

PART II – OTHER INFORMATION

Item 1. Legal Proceedings	30

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	30

Item 5. Other Information	30

Item 6. Exhibits	31

SIGNATURES	32

i

EXPLANATORY NOTE

On August 5, 2024, Skyline Champion Corporation changed its name to Champion Homes, Inc., which we refer to in this Quarterly Report on Form 10-Q as the “name change.” Unless the context otherwise requires, references herein to the “Company,” “we,” “us,” or “our” refer to Skyline Champion Corporation for periods ending on or before the name change and to Champion Homes, Inc. for any references to the Company after the name change.

ii

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

Champion Homes, Inc.

Condensed Consolidated Balance Sheets

(Dollars and shares in thousands, except per share amounts)


		September 28, 2024				March 30, 2024
		(unaudited)
ASSETS
Current assets:
Cash and cash equivalents		$	570,231			$	495,063
Trade accounts receivable, net			74,755				64,632
Inventories, net			325,534				318,737
Other current assets			43,594				39,870
Total current assets			1,014,114				918,302
Long-term assets:
Property, plant, and equipment, net			300,840				290,930
Goodwill			357,973				357,973
Amortizable intangible assets, net			70,491				76,369
Deferred tax assets			27,784				26,878
Other noncurrent assets			256,470				252,889
Total assets		$	2,027,672			$	1,923,341
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Floorplan payable		$	85,978			$	91,286
Accounts payable			64,260				50,820
Other current liabilities			268,446				247,495
Total current liabilities			418,684				389,601
Long-term liabilities:
Long-term debt			24,690				24,669
Deferred tax liabilities			7,297				6,905
Other liabilities			84,745				79,796
Total long-term liabilities			116,732				111,370

Stockholders' Equity:
Common stock, $0.0277 par value, 115,000 shares authorized, 57,384 and 57,815 shares issued as of September 28, 2024 and March 30, 2024, respectively			1,592				1,605
Additional paid-in capital			579,685				568,203
Retained earnings			924,408				866,485
Accumulated other comprehensive loss			(13,429	)			(13,923	)
Total stockholders’ equity			1,492,256				1,422,370
Total liabilities and stockholders’ equity		$	2,027,672			$	1,923,341

See accompanying Notes to Condensed Consolidated Financial Statements.

1

Champion Homes, Inc.

Condensed Consolidated Income Statements

(Unaudited, dollars in thousands, except per share amounts)


		Three months ended								Six months ended
		September 28, 2024				September 30, 2023				September 28, 2024				September 30, 2023
Net sales		$	616,877			$	464,236			$	1,244,656			$	929,005
Cost of sales			450,544				347,747				914,108				682,843
Gross profit			166,333				116,489				330,548				246,162
Selling, general, and administrative expenses			99,655				64,454				208,482				134,893
Operating income			66,678				52,035				122,066				111,269
Interest (income), net			(4,737	)			(10,480	)			(8,986	)			(19,781	)
Other expense (income)			14				2,065				(1,205	)			2,065
Income before income taxes			71,401				60,450				132,257				128,985
Income tax expense			15,392				14,781				29,111				32,047
Net income before equity in net loss of affiliates			56,009				45,669				103,146				96,938
Equity in net loss of affiliates			691				—				2,034				—
Net income			55,318				45,669				101,112				96,938
Net (income) attributable to non-controlling interest			(584	)			—				(584	)			—
Net income attributable to Champion Homes, Inc.		$	54,734			$	45,669			$	100,528			$	96,938
Net income attributable to Champion Homes, Inc. per share:
Basic		$	0.95			$	0.80			$	1.74			$	1.69
Diluted		$	0.94			$	0.79			$	1.73			$	1.68

See accompanying Notes to Condensed Consolidated Financial Statements.

2

Champion Homes, Inc.

Condensed Consolidated Statements of Comprehensive Income

(Unaudited, dollars in thousands)


		Three months ended								Six months ended
		September 28, 2024				September 30, 2023				September 28, 2024				September 30, 2023
Net income		$	55,318			$	45,669			$	101,112			$	96,938
Other comprehensive (loss) income, net of tax:
Foreign currency translation adjustments			1,624				(2,115	)			494				68
Total other comprehensive income (loss)			1,624				(2,115	)			494				68
Total comprehensive income before non-controlling interests			56,942				43,554				101,606				97,006
Comprehensive (income) attributable to non-controlling interests			(584	)			—				(584	)			—
Comprehensive income attributable to Champion Homes, Inc.		$	56,358			$	43,554			$	101,022			$	97,006

See accompanying Notes to Condensed Consolidated Financial Statements.

3

Champion Homes, Inc.

Condensed Consolidated Statements of Cash Flows

(Unaudited, dollars in thousands)


		Six months ended
		September 28, 2024				September 30, 2023

Cash flows from operating activities
Net income		$	101,112			$	96,938
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			20,123				14,378
Amortization of deferred financing fees			187				162
Equity-based compensation			11,213				10,943
Deferred taxes			(596	)			(1,919	)
Loss on disposal of property, plant, and equipment			57				96
Foreign currency transaction (gain) loss			(70	)			76
Equity in net loss of affiliates			2,034				—
Dividends from equity method investment			766				—
Change in fair value of contingent consideration			7,912				—
Change in assets and liabilities:
Accounts receivable			(10,051	)			12,101
Floor plan receivables			(15,155	)			(2,521	)
Inventories			(6,759	)			20,059
Other assets			(330	)			(13,434	)
Accounts payable			13,895				4,387
Accrued expenses and other liabilities			20,104				(12,128	)
Net cash provided by operating activities			144,442				129,138
Cash flows from investing activities
Additions to property, plant, and equipment			(24,827	)			(22,847	)
Cash paid for equity method investment			—				(1,000	)
Cash paid for investment in ECN common stock			—				(78,858	)
Cash paid for investment in ECN preferred stock			—				(64,520	)
Investment in floor plan loans			—				(18,466	)
Proceeds from floor plan loans			2,136				10,528
Proceeds from disposal of property, plant, and equipment			138				524
Net cash used in investing activities			(22,553	)			(174,639	)
Cash flows from financing activities
Changes in floor plan financing, net			(5,308	)			—
Payments on long term debt			(11	)			—
Payments on repurchase of common stock			(40,000	)			—
Stock option exercises			272				224
Tax payments for equity-based compensation			(2,273	)			(982	)
Net cash used in financing activities			(47,320	)			(758	)
Effect of exchange rate changes on cash and cash equivalents			599				(39	)
Net increase (decrease) in cash and cash equivalents			75,168				(46,298	)
Cash and cash equivalents at beginning of period			495,063				747,453
Cash and cash equivalents at end of period		$	570,231			$	701,155

See accompanying Notes to Condensed Consolidated Financial Statements.

4

Champion Homes, Inc.

Condensed Consolidated Statements of Stockholders’ Equity

(Unaudited, dollars and shares in thousands)


		Three months ended September 28, 2024
		Common Stock
		Shares				Amount				Additional Paid in Capital				Retained Earnings				Accumulated Other Comprehensive Loss				Non-Controlling Interest				Total
Balance at June 29, 2024			57,579			$	1,598			$	574,365			$	889,837			$	(15,053	)		$	—			$	1,450,747
Net income			—				—				—				54,734				—				584				55,318
Equity-based compensation			—				—				5,123				—				—				—				5,123
Net common stock issued under equity-based compensation plans			19				—				197				(28	)			—				—				169
Common stock repurchases			(214	)			(6	)			—				(20,135	)			—				—				(20,141	)
Distributions declared payable to non-controlling interest			—				—				—				—				—				(584	)			(584	)
Foreign currency translation adjustments			—				—				—				—				1,624				—				1,624
Balance at September 28, 2024			57,384			$	1,592			$	579,685			$	924,408			$	(13,429	)		$	—			$	1,492,256


		Six months ended September 28, 2024
		Common Stock
		Shares				Amount				Additional Paid in Capital				Retained Earnings				Accumulated Other Comprehensive Loss				Non-Controlling Interest				Total
Balance at March 30, 2024			57,815			$	1,605			$	568,203			$	866,485			$	(13,923	)		$	—			$	1,422,370
Net income			—				—				—				100,528				—				584				101,112
Equity-based compensation			—				—				11,213				—				—				—				11,213
Net common stock issued under equity-based compensation plans			75				2				269				(2,270	)			—				—				(1,999	)
Common stock repurchases			(506	)			(15	)			—				(40,335	)			—				—				(40,350	)
Distributions declared payable to non-controlling interest			—				—				—				—				—				(584	)			(584	)
Foreign currency translation adjustments			—				—				—				—				494				—				494
Balance at September 28, 2024			57,384			$	1,592			$	579,685			$	924,408			$	(13,429	)		$	—			$	1,492,256


		Three months ended September 30, 2023
		Common Stock
		Shares				Amount				Additional Paid in Capital				Retained Earnings				Accumulated Other Comprehensive Loss				Total
Balance at July 1, 2023			57,133			$	1,586			$	524,907			$	775,980			$	(11,552	)		$	1,290,921
Net income			—				—				—				45,669				—				45,669
Equity-based compensation			—				—				5,515				—				—				5,515
Net common stock issued under equity-based compensation plans			29				1				223				(21	)			—				203
Foreign currency translation adjustments			—				—				—				—				(2,115	)			(2,115	)
Balance at September 30, 2023			57,162			$	1,587			$	530,645			$	821,628			$	(13,667	)		$	1,340,193


		Six months ended September 30, 2023
		Common Stock
		Shares				Amount				Additional Paid in Capital				Retained Earnings				Accumulated Other Comprehensive Loss				Total
Balance at April 1, 2023			57,108			$	1,585			$	519,479			$	725,672			$	(13,735	)		$	1,233,001
Net income			—				—				—				96,938				—				96,938
Equity-based compensation			—				—				10,943				—				—				10,943
Net common stock issued under equity-based compensation plans			54				2				223				(982	)			—				(757	)
Foreign currency translation adjustments			—				—				—				—				68				68
Balance at September 30, 2023			57,162			$	1,587			$	530,645			$	821,628			$	(13,667	)		$	1,340,193

Components of accumulated other comprehensive loss consisted solely of foreign currency translation adjustments.

See accompanying Notes to Condensed Consolidated Financial Statements.

5

Champion Homes, Inc.

Notes to Condensed Consolidated Financial Statements

1. Basis of Presentation and Business

Nature of Operations: The operations of Champion Homes, Inc., formerly known as Skyline Champion Corporation (the “Company”), consist of manufacturing, retail, construction services, and transportation activities. At September 28, 2024, the Company operated 43 manufacturing facilities throughout the United States (“U.S.”) and 5 manufacturing facilities in western Canada that primarily construct factory-built, timber-framed manufactured and modular houses that are sold primarily to independent retailers, builders/developers, and manufactured home community operators. The Company’s retail operations consist of 72 sales centers that sell manufactured houses to consumers across the U.S. The Company's construction services business provides installation and set-up services of factory-built homes. The Company’s transportation business engages independent owners/drivers to transport recreational vehicles throughout the U.S. and Canada and manufactured houses in certain regions of the U.S.

Basis of Presentation: The accompanying unaudited condensed consolidated financial statements of the Company have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) for Quarterly Reports on Form 10-Q and Article 10 of SEC Regulation S-X. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with United States Generally Accepted Accounting Principles (“U.S. GAAP”) have been condensed or omitted pursuant to such rules and regulations.

The condensed consolidated financial statements include the accounts of the Company and its majority-owned subsidiaries after elimination of intercompany balances and transactions. In the opinion of management, these statements include all normal recurring adjustments necessary to fairly state the Company’s consolidated results of operations, cash flows, and financial position. The Company has evaluated subsequent events after the balance sheet date through the date of the filing of this report with the SEC. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes to the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K, which was filed with the SEC on May 29, 2024 (the “Fiscal 2024 Annual Report”).

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and the accompanying notes thereto. Actual results could differ from those estimates. The condensed consolidated income statements, condensed consolidated statements of comprehensive income, and condensed consolidated statements of cash flows for the interim periods are not necessarily indicative of the results of operations or cash flows for the full year.

The Company’s fiscal year is a 52- or 53-week period that ends on the Saturday nearest to March 31. The Company’s current fiscal year, “fiscal 2025,” will end on March 29, 2025 and will include 52 weeks. References to “fiscal 2024” refer to the Company’s fiscal year ended March 30, 2024. The three and six months ended September 28, 2024 and September 30, 2023 each included 13 weeks and 26 weeks, respectively.

The Company’s allowance for credit losses on financial assets measured at amortized cost reflects management’s estimate of credit losses over the remaining expected life of such assets, measured primarily using historical experience, as well as current economic conditions and forecasts that affect the collectability of the reported amount. Expected credit losses for newly recognized financial assets, as well as changes to expected credit losses during the period, are recognized in earnings. Accounts receivable are reflected net of reserves of $1.7 million and $1.9 million at September 28, 2024 and March 30, 2024, respectively.

Floor plan receivables consist primarily of amounts loaned by the Company through Triad Financial Services, Inc. ("Triad") to certain independent retailers for purchases of homes manufactured by the Company, of which $31.1 million and $18.1 million was outstanding at September 28, 2024 and March 30, 2024, respectively. Floor plan receivables are carried net of payments received and recorded at amortized cost. The Company intends to hold the floor plan receivables until maturity or payoff. These loans are serviced by Triad, to which we pay a servicing fee. Upon execution of the financing arrangement, the floor plan loans are generally payable at the earlier of the sale of the underlying home or two years from the origination date. Floor plan receivables are included in other current assets and other noncurrent assets in the accompanying Condensed Consolidated Balance Sheets.

The floor plan receivables are collateralized by the related homes, mitigating loss exposure. The Company and Triad evaluate the credit worthiness of each independent retailer prior to credit approval, including reviewing the independent retailer’s payment history, financial condition, and the overall economic environment. The Company evaluates the risk of credit loss in aggregate on existing loans with similar terms, based on historic experience and current economic conditions, as well as individual retailers with past due balances or other indications of heightened credit risk. The allowance for credit losses related to floor plan receivables was not material as of September 28, 2024 or March 30, 2024. Loans are considered past due if any required interest or curtailment payment remains unpaid 30 days after the due date. Receivables are placed on non-performing status if any interest or installment payments are past due over 90 days. Loans are placed on nonaccrual status when interest payments are past due over 90 days. At September 28, 2024, there were no floor plan receivables on nonaccrual status and the weighted-average age of the floor plan receivables was six months.

6

Champion Homes, Inc.

Notes to Condensed Consolidated Financial Statements - Continued

Interest income from floor plan receivables is recognized on an accrual basis and is included in interest income in the accompanying Condensed Consolidated Income Statements. Interest income from floor plan receivables for the three months ended September 28, 2024 and September 30, 2023 was $0.6 million and $0.3 million, respectively. Interest income from floor plan receivables for the six months ended September 28, 2024 and September 30, 2023 was $1.1 million and $0.6 million, respectively.

Recently issued accounting pronouncements: In November 2023, the FASB issued Accounting Standards Update ("ASU") 2023-07, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures", which expands disclosures about a public entity’s reportable segments and requires more enhanced information about a reportable segment’s expenses, interim segment profit or loss, and how a public entity’s chief operating decision maker uses reported segment profit or loss information in assessing segment performance and allocating resources. The update will be effective for annual periods beginning after December 15, 2023 (fiscal 2025). We are assessing the effect of this update on our consolidated financial statement disclosures.

In December 2023, the FASB issued ASU 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures", which expands disclosures in an entity’s income tax rate reconciliation table and regarding cash taxes paid both in the U.S. and foreign jurisdictions. The update will be effective for annual periods beginning after December 15, 2024 (fiscal 2026). We are assessing the effect of this update on our consolidated financial statement disclosures.

2. Business Combinations

Regional Homes Acquisition

On October 13, 2023, the Company acquired all of the outstanding equity interests in Regional Enterprises, LLC and related companies (collectively, "Regional Homes") for total purchase consideration of $316.9 million, net of assumed indebtedness and working capital adjustments. The purchase consideration consisted of net cash of $279.5 million, the issuance of 455,098 shares of common stock equal to approximately $27.9 million, and contingent consideration with an estimated fair value of $5.9 million. The contingent consideration is related to an earnout provision in the event certain conditions are met per the terms of the purchase agreement, with a maximum earnout amount of $25.0 million. The initial fair value of the earnout was established using a Monte Carlo simulation method and the resulting liability is recorded in other liabilities in the accompanying Condensed Consolidated Balance Sheets. In the first quarter of fiscal 2025, the method and timing of measuring the earnout was amended, which resulted in a charge of $7.9 million which is reflected in selling, general, and administrative expense in the accompanying Condensed Consolidated Income Statements. The Company accounted for the acquisition as a business combination under the acquisition method of accounting provided by FASB ASC 805, Business Combinations ("ASC 805"). As such, the purchase price was allocated to the net assets acquired, inclusive of intangible assets, with the excess fair value recorded to goodwill. The purchase price allocation is based upon preliminary valuation information available to determine the fair value of certain assets and liabilities, including goodwill, and is subject to change as additional information is obtained about the facts and circumstances that existed at the valuation date. The Company expects to finalize the fair values of the assets acquired and liabilities assumed during the one-year measurement period.

7

Champion Homes, Inc.

Notes to Condensed Consolidated Financial Statements - Continued

The following table presents the consideration transferred and the purchase price allocation:


Description		Amount
Fair value of consideration transferred
Fair value of Champion Homes, Inc. common stock issued as consideration (455,098 shares at $61.20)		$	27,852
Cash consideration, net of cash acquired			279,545
Working capital adjustment			3,644
Estimated earn out consideration			5,904
Total consideration		$	316,945
Preliminary purchase price allocations:
Trade accounts receivable			16,300
Inventories			138,933
Other current assets			3,002
Property, plant, and equipment, net			86,174
Amortizable intangible assets, net			41,800
Other noncurrent assets			10,640
Floor plan payable			(75,916	)
Accounts payable			(14,427	)
Other current liabilities			(35,662	)
Long-term debt			(12,233	)
Other liabilities			(3,065	)
Identifiable net assets acquired			155,546
Goodwill			161,399
Total purchase price		$	316,945

Trade accounts receivable, other assets, floor plan and accounts payable, long-term debt and other liabilities are generally stated at historical carrying values as they approximate fair value. Retail inventories are reflected at manufacturer wholesale prices. Intangible assets include $16.9 million in customer relationships and $24.9 million in trade names and are based on an independent appraisal. The fair value of customer relationships was determined using the multi-period excess earnings method and fair value of the trade name was determined using the relief-from-royalty method. The Company estimated that each intangible asset has a weighted average useful life of ten years from the acquisition date. Fair value estimates of property, plant, and equipment were based on independent appraisals, giving consideration to the highest and best use of the assets. Key assumptions used in the appraisals were drawn from a combination of market, cost, and sales comparison approaches, as appropriate. Level 3 fair value estimates of $86.2 million related to property, plant, and equipment and $41.8 million related to intangible assets were recorded in the accompanying consolidated balance sheet as of the acquisition date. For further information on acquired assets measured at fair value, see Note 5, Goodwill, Intangible Assets and Cloud Computing Arrangements.

The acquisition of Regional Homes was a taxable business combination. Therefore, the Company’s tax basis in the assets acquired and the liabilities assumed approximate the respective fair values at the acquisition date.

3. Inventories, net

The components of inventory, net of reserves for obsolete inventory, were as follows:


(Dollars in thousands)		September 28, 2024				March 30, 2024
Raw materials		$	102,445			$	101,429
Work in process			24,452				23,436
Finished goods and other			198,637				193,872
Total inventories, net		$	325,534			$	318,737

At September 28, 2024 and March 30, 2024, reserves for obsolete inventory were $10.2 million and $10.1 million, respectively.

8

Champion Homes, Inc.

Notes to Condensed Consolidated Financial Statements - Continued

4. Property, Plant, and Equipment

Property, plant, and equipment are stated at cost. Depreciation is calculated primarily on a straight-line basis, generally over the following estimated useful lives: land improvements – 3 to 10 years; buildings and improvements – 8 to 25 years; and vehicles and machinery and equipment – 3 to 8 years. Depreciation expense for the three months ended September 28, 2024 and September 30, 2023 was $6.5 million and $4.7 million, respectively. Depreciation expense for the six months ended September 28, 2024 and September 30, 2023 was $14.2 million and $9.3 million, respectively.

The components of property, plant, and equipment were as follows:


(Dollars in thousands)		September 28, 2024				March 30, 2024
Land and improvements		$	75,004			$	72,188
Buildings and improvements			192,169				183,109
Machinery and equipment			154,384				142,870
Construction in progress			21,403				20,469
Property, plant, and equipment, at cost			442,960				418,636
Less: accumulated depreciation			(142,120	)			(127,706	)
Property, plant, and equipment, net		$	300,840			$	290,930

5. Goodwill, Intangible Assets, and Cloud Computing Arrangements

Goodwill

Goodwill represents the excess of the cost of an acquired business over the fair value of the identifiable tangible and intangible assets acquired and liabilities assumed in a business combination. At both September 28, 2024 and March 30, 2024, the Company had goodwill of $358.0 million. Goodwill is allocated to reporting units included in the U.S. Factory-built Housing segment, which include the Company’s U.S. manufacturing and retail operations. At September 28, 2024, there were no accumulated impairment losses related to goodwill.

Intangible Assets

The components of amortizable intangible assets were as follows:


(Dollars in thousands)		September 28, 2024												March 30, 2024
		Customer Relationships & Other				Trade Names				Total				Customer Relationships & Other				Trade Names				Total
Gross carrying amount		$	82,928			$	46,402			$	129,330			$	82,909			$	46,393			$	129,302
Accumulated amortization			(43,562	)			(15,277	)			(58,839	)			(39,825	)			(13,108	)			(52,933	)
Amortizable intangibles, net		$	39,366			$	31,125			$	70,491			$	43,084			$	33,285			$	76,369

During the three months ended September 28, 2024 and September 30, 2023, amortization of intangible assets was $3.0 million and $2.1 million, respectively. During the six months ended September 28, 2024 and September 30, 2023, amortization of intangible assets was $5.9 million and $5.0 million, respectively.

Cloud Computing Arrangements

The Company capitalizes costs associated with the development of cloud computing arrangements in a manner consistent with internally developed software. At September 28, 2024 and March 30, 2024, the Company had capitalized cloud computing costs, net of amortization of $25.0 million and $25.7 million, respectively. Cloud computing costs are included in other noncurrent assets in the accompanying Condensed Consolidated Balance Sheets. Amortization of capitalized cloud computing costs for the three months ended September 28, 2024 and September 30, 2023 was $0.5 million and $0.2 million, respectively. Amortization of capitalized cloud computing costs for the six months ended September 28, 2024 and September 30, 2023 was $0.7 million and $0.4 million, respectively.

9

Champion Homes, Inc.

Notes to Condensed Consolidated Financial Statements - Continued

6. Investment in ECN Capital Corporation

In September 2023, the Company entered into a share subscription agreement with ECN Capital Corp. ("ECN") and made a $137.8 million equity investment in ECN on a private placement basis. The Company purchased 33.6 million common shares, representing approximately 12% of the total outstanding common shares of ECN, and 27.5 million mandatory convertible preferred shares (the “Preferred Shares”). The Preferred Shares receive cumulative cash dividends at an annual rate of 4.0%. Following the private placement, the Company owns approximately 19.9% of the voting shares of ECN. In connection with the share subscription agreement, the Company and Triad formed Champion Financing LLC ("Champion Financing"), a captive finance company that is 51% owned by the Company and 49% owned by Triad. The results of Champion Financing are included in the consolidated results of the Company on a three-month lag. Triad's 49% ownership interest is reflected as non-controlling interest in the Condensed Consolidated Income Statements.

The Company's interest in the common stock investment in ECN is accounted for under the equity method and the Company’s share of the earnings or losses of ECN are recorded on a three-month lag. For the three months ended September 28, 2024, the Company's share of ECN's earnings was $0.7 million. For the six months ended September 28, 2024, the Company's share of ECN's losses were $0.5 million. There were no earnings or losses recognized related to the equity method investment for the three and six months ended September 30, 2023. Dividends received on the investment in common stock of ECN are reflected as a reduction to the investment balance and are presented on the Condensed Consolidated Statements of Cash Flows using the nature of the distribution approach. At September 28, 2024, the investment in the common stock of ECN totaled $70.5 million, including $3.1 million of capitalized transaction costs, and is included in other noncurrent assets in the accompanying Condensed Consolidated Balance Sheets. The aggregate value of the Company’s investment in the common stock of ECN based on quoted market price of ECN’s common stock at September 28, 2024 was approximately $53.0 million. We assess our investment in ECN common stock for other than temporary impairment on a quarterly basis or when events or circumstances suggest that the carrying amount of the investment may be impaired. We do not consider the difference in the fair market value of ECN common stock and our investment balance to be other than temporary at September 28, 2024.

The Company's investment in the Preferred Shares is included in other noncurrent assets in the accompanying Condensed Consolidated Balance Sheets. The investment is measured using the measurement alternative for equity investments without a readily determinable fair value. The carrying amount of $64.5 million at September 28, 2024 represents the purchase price and capitalized transaction costs of $2.5 million. There have been no adjustments to the carrying amount or impairment of the investment. For the six months ended September 28, 2024, the Company has reflected dividend income of $1.2 million in other (income) on the accompanying Condensed Consolidated Income Statements from the investment in ECN Preferred Shares. There was no dividend income from the ECN Preferred Shares for the three months ended September 28, 2024 or for the three and six months ended September 30, 2023.

Triad, a related party through its parent ECN, provides loan servicing for the Company's floor plan receivables. The Company pays Triad a fee for servicing loans which was not material for the three and six months ended September 28, 2024 and September 30, 2023, respectively. Triad also provides floor plan financing of the Company's products to Company-owned and independent retailers. At September 28, 2024, the Company had floor plan payables due to Triad of $26.7 million. At September 28, 2024, the Company had repurchase commitments of $104.4 million on independent retailer floor plan loans outstanding with Triad.

7. Other Current Liabilities

The components of other current liabilities were as follows:


(Dollars in thousands)		September 28, 2024				March 30, 2024
Customer deposits		$	85,027			$	80,833
Accrued volume rebates			26,345				21,169
Accrued warranty obligations			43,995				39,176
Accrued compensation and payroll taxes			40,289				35,063
Accrued insurance			12,892				12,772
Accrued product liability - water intrusion			34,500				34,500
Other			25,398				23,982
Total other current liabilities		$	268,446			$	247,495

10

Champion Homes, Inc.

Notes to Condensed Consolidated Financial Statements - Continued

8. Accrued Warranty Obligations

Changes in the accrued warranty obligations were as follows:


		Three months ended									Six months ended
(Dollars in thousands)		September 28, 2024				September 30, 2023					September 28, 2024				September 30, 2023
Balance at beginning of period		$	54,111			$	35,090				$	50,869			$	35,961
Warranty expense			18,131				14,977					36,819				27,833
Cash warranty payments			(16,554	)			(12,705	)				(32,000	)			(26,432	)
Balance at end of period			55,688				37,362					55,688				37,362
Less: noncurrent portion in other long-term liabilities			(11,693	)			(7,385	)				(11,693	)			(7,385	)
Total current portion		$	43,995			$	29,977				$	43,995			$	29,977

9. Debt and Floor Plan Payable

Long-term debt consisted of the following:


(Dollars in thousands)		September 28, 2024				March 30, 2024
Obligations under industrial revenue bonds due 2029		$	12,430			$	12,430
Notes payable to Romeo Juliet, LLC, due 2026			5,314				5,314
Notes payable to Romeo Juliet, LLC, due 2039			2,036				2,036
Note payable to United Bank, due 2026			4,910				4,889
Revolving credit facility maturing in 2026			—				—
Total long-term debt		$	24,690			$	24,669

On July 7, 2021, the Company entered into an Amended and Restated Credit Agreement with a syndicate of banks that provides for a revolving credit facility of up to $200.0 million, including a $45.0 million letter of credit sub-facility ("Amended Credit Agreement"). The Amended Credit Agreement replaced the Company's previously existing $100.0 million revolving credit facility. The Amended Credit Agreement allows the Company to draw down, repay and re-draw loans on the available funds during the term, subject to certain terms and conditions, matures in July 2026, and has no scheduled amortization.

On May 18, 2023, the Company further amended the Amended Credit Agreement, which removed references to the London Interbank Offer Rate ("LIBOR") and clarified language pertaining to the Secured Overnight Financing Rate ("SOFR") in regards to the interest rate on borrowings. The interest rate on borrowings under the Amended Credit Agreement is based on SOFR plus a SOFR adjustment, plus an interest rate spread. The interest rate spread adjusts based on the consolidated total net leverage of the Company from a high of 1.875% when the consolidated total net leverage ratio is equal to or greater than 2.25:1.00, to a low of 1.125% when the consolidated total net leverage ratio is below 0.50:1.00. Alternatively for same day borrowings, the interest rate is based on an Alternative Base Rate ("ABR") plus an interest rate spread that ranges from a high of 0.875% to a low of 0.125% based on the consolidated total net leverage ratio. In addition, the Company is obligated to pay an unused line fee ranging between 0.15% and 0.3% depending on the consolidated total net leverage ratio, in respect of unused commitments under the Amended Credit Agreement. At September 28, 2024, the interest rate under the Amended Credit Agreement was 6.07% and letters of credit issued under the Amended Credit Agreement totaled $31.5 million. Available borrowing capacity under the Amended Credit Agreement as of September 28, 2024 was $168.5 million.

The Amended Credit Agreement contains covenants that restrict the amount of additional debt, liens and certain payments, including equity buy-backs, investments, dispositions, mergers and consolidations, among other restrictions as defined. The Company was in compliance with all covenants of the Amended Credit Agreement as of September 28, 2024.

Obligations under industrial revenue bonds are supported by letters of credit and bear interest based on a municipal bond index rate. The weighted-average interest rate at September 28, 2024, including related costs and fees, was 4.75%. The industrial revenue bonds require lump-sum payments of principal upon maturity in 2029 and are secured by the assets of certain manufacturing facilities.

As part of the acquisition of Regional Homes, the Company assumed notes payable to Romeo Juliet, LLC, a subsidiary of Wells Fargo Community Investment Holdings, Inc. ("WFC"). The weighted-average interest rate on those notes at September 28, 2024 was 5.42%. The notes are secured by certain assets of Regional Homes. In addition, the Company assumed a note payable to United Bank with an interest rate of 3.85% that is secured by a note receivable from HHB Investment Fund, LLC, a subsidiary of WFC.

11

Champion Homes, Inc.

Notes to Condensed Consolidated Financial Statements - Continued

Floor Plan Payable

The Company’s retail operations utilize floor plan financing to fund the purchase of manufactured homes for display or resale. At September 28, 2024 and March 30, 2024, the Company had outstanding borrowings on floor plan financing agreements of $86.0 million and $91.3 million, respectively. Total credit line capacity provided under the agreements was $223.0 million as of September 28, 2024. The weighted average interest rate on the floor plan payable was 7.25% at September 28, 2024. Borrowings are secured by the homes and are required to be repaid when the Company sells the related home to a customer.

10. Revenue Recognition

The following tables disaggregate the Company’s revenue by sales category:


		Three months ended September 28, 2024
(Dollars in thousands)		U.S. Factory-Built Housing				Canadian Factory-Built Housing				Corporate/ Other				Total
Manufacturing		$	378,506			$	22,234			$	—			$	400,740
Retail			208,621				—				—				208,621
Transportation/Other			—				—				7,516				7,516
Total		$	587,127			$	22,234			$	7,516			$	616,877

		Six months ended September 28, 2024
(Dollars in thousands)		U.S. Factory-Built Housing				Canadian Factory-Built Housing				Corporate/ Other				Total
Manufacturing		$	758,800			$	43,033			$	—			$	801,833
Retail			427,860				—				—				427,860
Transportation/Other			—				—				14,963				14,963
Total		$	1,186,660			$	43,033			$	14,963			$	1,244,656

		Three months ended September 30, 2023
(Dollars in thousands)		U.S. Factory-Built Housing				Canadian Factory-Built Housing				Corporate/ Other				Total
Manufacturing		$	351,997			$	29,256			$	—			$	381,253
Retail			76,135				—				—				76,135
Transportation			—				—				6,848				6,848
Total		$	428,132			$	29,256			$	6,848			$	464,236

		Six months ended September 30, 2023
(Dollars in thousands)		U.S. Factory-Built Housing				Canadian Factory-Built Housing				Corporate/ Other				Total
Manufacturing		$	697,254			$	55,376			$	—			$	752,630
Retail			159,663				—				—				159,663
Transportation			—				—				16,712				16,712
Total		$	856,917			$	55,376			$	16,712			$	929,005

12

Champion Homes, Inc.

Notes to Condensed Consolidated Financial Statements - Continued

11. Income Taxes

For the three months ended September 28, 2024 and September 30, 2023, the Company recorded $15.4 million and $14.8 million of income tax expense and had an effective tax rate of 21.6% and 24.5%, respectively. For the six months ended September 28, 2024 and September 30, 2023, the Company recorded $29.1 million and $32.0 million of income tax expense and had an effective tax rate of 22.0% and 24.8% respectively.

The Company’s effective tax rate for the three and six months ended September 28, 2024 and September 30, 2023, differs from the federal statutory income tax rate of 21.0% due primarily to the effect of state and local income taxes, non-deductible expenses, tax credits, and results in foreign jurisdictions.

At September 28, 2024, the Company had no unrecognized tax benefits.

12. Earnings Per Share

Basic net income per share attributable to the Company was computed by dividing net income attributable to the Company by the average number of common shares outstanding during the period. Diluted earnings per share is calculated using our weighted-average outstanding common shares, including the dilutive effect of stock awards as determined under the treasury stock method.

The following table sets forth the computation of basic and diluted earnings per common share:


		Three months ended							Six months ended
(Dollars and shares in thousands, except per share data)		September 28, 2024				September 30, 2023				September 28, 2024				September 30, 2023
Numerator:
Net income attributable to Champion Homes, Inc.		$	54,734			$	45,669			$	100,528			$	96,938
Denominator:
Basic weighted-average shares outstanding			57,648				57,232				57,757				57,224
Dilutive securities			537				492				492				471
Diluted weighted-average shares outstanding			58,185				57,724				58,249				57,695

Basic net income per share		$	0.95			$	0.80			$	1.74			$	1.69
Diluted net income per share		$	0.94			$	0.79			$	1.73			$	1.68

13. Segment Information

Financial results for the Company's reportable segments have been prepared using a management approach, which is consistent with the basis and manner in which financial information is evaluated by the Company's chief operating decision maker in allocating resources and in assessing performance. The Company’s chief operating decision maker, the Chief Executive Officer, evaluates the performance of the Company’s segments primarily based on net sales, before elimination of inter-company shipments, earnings before interest, taxes, depreciation, and amortization (“EBITDA”) and operating assets.

The Company operates in two reportable segments: (i) U.S. Factory-built Housing, which includes manufacturing and retail housing operations and (ii) Canadian Factory-built Housing. Corporate/Other includes the Company’s transportation operations, the Company's financing activities, corporate costs directly incurred for all segments and intersegment eliminations. Segments are generally determined by geography. Segment data includes intersegment revenues and corporate office costs that are directly and exclusively incurred for each segment. Total assets for Corporate/Other primarily include cash and certain U.S. deferred tax items not specifically allocated to another segment.

13

Champion Homes, Inc.

Notes to Condensed Consolidated Financial Statements - Continued

Selected financial information by reportable segment was as follows:


		Three months ended								Six months ended
(Dollars in thousands)		September 28, 2024				September 30, 2023				September 28, 2024				September 30, 2023
Net sales:
U.S. Factory-built Housing		$	587,127			$	428,132			$	1,186,660			$	856,917
Canadian Factory-built Housing			22,234				29,256				43,033				55,376
Corporate/Other			7,516				6,848				14,963				16,712
Consolidated net sales		$	616,877			$	464,236			$	1,244,656			$	929,005
Operating income:
U.S. Factory-built Housing EBITDA		$	88,448				64,752			$	167,469			$	138,985
Canadian Factory-built Housing EBITDA			2,979				5,763				5,858				10,527
Corporate/Other EBITDA			(15,943	)			(13,759	)			(31,967	)			(25,930	)
Other expense (income)			14				2,065				(1,205	)			2,065
Depreciation			(6,543	)			(4,700	)			(14,245	)			(9,333	)
Amortization			(2,968	)			(2,086	)			(5,878	)			(5,045	)
Equity in net loss of affiliates			691				—				2,034				—
Consolidated operating income		$	66,678			$	52,035			$	122,066			$	111,269
Depreciation:
U.S. Factory-built Housing		$	5,944			$	4,198			$	13,048			$	8,326
Canadian Factory-built Housing			448				356				885				712
Corporate/Other			151				146				312				295
Consolidated depreciation		$	6,543			$	4,700			$	14,245			$	9,333

Amortization of U.S. Factory-built Housing intangible assets:		$	2,968			$	2,086			$	5,878			$	5,045
Capital expenditures:
U.S. Factory-built Housing		$	12,465			$	11,743			$	21,992			$	21,421
Canadian Factory-built Housing			448				475				874				941
Corporate/Other			1,202				288				1,961				485
Consolidated capital expenditures		$	14,115			$	12,506			$	24,827			$	22,847

(Dollars in thousands)										September 28, 2024				March 30, 2024

Total Assets:
U.S. Factory-built Housing (1)										$	1,251,635			$	1,239,338
Canadian Factory-built Housing (1)											137,703				132,420
Corporate/Other (1)											638,334				551,583
Consolidated total assets										$	2,027,672			$	1,923,341

(1)

Deferred tax assets for the Canadian operations are reflected in the Canadian Factory-built Housing segment. U.S. deferred tax assets are presented in Corporate/Other because an allocation between segments is not practicable.

14

Champion Homes, Inc.

Notes to Condensed Consolidated Financial Statements - Continued

14. Commitments, Contingencies, and Legal Proceedings

Repurchase Contingencies and Guarantees

The Company is contingently liable under terms of repurchase agreements with lending institutions that provide wholesale floor plan financing to retailers. These arrangements, which are customary in the manufactured housing industry, provide for the repurchase of products sold to retailers in the event of default by the retailer on its agreement to pay the financial institution. The risk of loss from these agreements is significantly reduced by the potential resale value of any products that are subject to repurchase and is spread over numerous retailers. The repurchase price is generally determined by the original sales price of the product less contractually defined curtailment payments. Based on these repurchase agreements and our historical loss experience, we established an associated loss reserve which was $1.7 million at September 28, 2024 and $1.8 million at March 30, 2024, respectively. Excluding the resale value of the homes, the contingent repurchase obligation as of September 28, 2024 was estimated to be $254.9 million. Losses incurred on homes repurchased were immaterial during the three and six months ended September 28, 2024 and September 30, 2023.

At September 28, 2024, the Company was contingently obligated for $31.5 million under letters of credit, consisting of $12.7 million to support long-term debt, $18.5 million to support the casualty insurance program, and $0.3 million to support bonding agreements. The letters of credit are issued from a sub-facility of the Amended Credit Agreement. The Company was also contingently obligated for $19.1 million under surety bonds, generally to support performance on long-term construction contracts and license and service bonding requirements.

In the normal course of business, the Company’s former subsidiaries that operated in the United Kingdom historically provided certain guarantees to two customers. Those guarantees provide contractual liability for proven construction defects up to 12 years from the date of delivery of certain products. The guarantees remain a contingent liability of the Company which declines over time through October 2027. As of the date of this report, the Company expects few, if any, claims to be reported under the terms of the guarantees.

Product Liability - Water Intrusion

The Company has received consumer complaints for damages related to water intrusion in homes built in one of its manufacturing facilities prior to fiscal 2022. The Company has investigated, and believes, the cause of the damage is the result of materials that did not perform in accordance with the manufacturer's contractual obligations. The Company has identified certain homes constructed over that period that may be affected. Based on the results of ongoing investigation and repair efforts, the Company has developed and HUD has approved a remediation plan under Subpart I of the HUD code. The plan calls for inspection and repair of affected homes if there is evidence of damage, or procedures to mitigate the opportunity for future damage. As a result of the proposal, the Company recorded charges to execute the remediation plan of $34.5 million during the fourth quarter of fiscal 2024. The Company estimated the charges by establishing a range of total expected costs determined by an actuary using a Monte Carlo simulation. The analysis resulted in a range of losses between $34.5 million and $85.0 million. The Company was not able to determine a value in the range that was more likely than any other value, and as prescribed by U.S. GAAP, recorded the charge for remediation based on the low end of the range of potential losses. The Company is monitoring the results of the inspection and repair activities, and may revise the amount of the estimated liability, which could result in an increase or decrease in the estimated liability in future periods. The liability is included in other current liabilities in the accompanying Condensed Consolidated Balance Sheets.

Based on the Company's investigation into the cause of the water intrusion, including third-party testing of the material at issue, the Company believes it is possible that it will recover some or all of the estimated remediation costs. The Company will attempt to recover those costs from the manufacturer of the material, the distributor of the material, their related insurance providers or from the Company's insurance providers. However, the Company is unable to record an offset for any estimated costs at this time in accordance with U.S. GAAP.

Legal Proceedings

The Company has agreed to indemnify counterparties in the ordinary course of its business in agreements to acquire and sell business assets and in financing arrangements. The Company is subject to various legal proceedings and claims that arise in the ordinary course of its business. As of the date of this filing, the Company believes the ultimate liability with respect to these contingent obligations will not have, either individually or in the aggregate, a material adverse effect on the Company’s financial condition, results of operations, or cash flows.

15

Item 2. MANAGEMENT’ S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following should be read in conjunction with Champion Homes, Inc.’s condensed consolidated financial statements and the related notes that appear in Item 1 of this Report.

Overview

Champion Homes, Inc., formerly known as Skyline Champion Corporation (the “Company”), is a leading producer of factory-built housing in the U.S. and Canada. The Company serves as a complete solutions provider across complementary and vertically integrated businesses including factory-built home manufacturing, company-owned retail locations, construction services, and transportation logistics services. The Company markets its homes under several nationally recognized brand names including Champion Homes, Genesis Homes, Skyline Homes, Regional Homes, Athens Park Models, Dutch Housing, Atlantic Homes, Excel Homes, Homes of Merit, New Era, Redman Homes, ScotBilt Homes, Shore Park, Silvercrest, and Titan Homes in the U.S., and Moduline and SRI Homes in western Canada. The Company operates 43 manufacturing facilities throughout the U.S. and five manufacturing facilities in western Canada that primarily construct factory-built, timber-framed, manufactured and modular houses that are sold primarily to independent retailers, builders/developers, and manufactured home community operators. The Company’s retail operations consist of 72 sales centers that sell manufactured homes to consumers across the U.S. The Company’s transportation business engages independent owners/drivers to transport manufactured homes, recreational vehicles, and other products throughout the U.S. and Canada.

Acquisitions and Expansions

The Company is focused on operational improvements to increase capacity utilization and profitability at its existing manufacturing facilities as well as measured expansion of its manufacturing and retail footprint through facility and equipment investments and acquisitions. Those investments will help improve the Company's ability to satisfy demand for affordable housing. During fiscal 2023, robust demand for housing began to slow as inflation and higher interest rates made housing less affordable. The current economic environment drives an even greater need for attainable housing solutions. As a result, the Company continues to focus on growing in strong housing markets across the U.S. and Canada, as well as expanding products and services to provide more holistic and affordable solutions to homebuyers.

In October 2023, the Company acquired Regional Homes, which operated three manufacturing facilities in Alabama and 44 retail sales centers across the Southeast U.S. Regional Home's strong presence in large HUD markets expanded our captive retail and manufacturing distribution in that region. In July 2022, the Company acquired 12 Factory Expo retail sales centers from Alta Cima Corporation, which expanded the internal retail network across a broader portion of the U.S. In May 2022, the Company acquired Manis Custom Builders, Inc. ("Manis") in order to expand its manufacturing footprint and further streamline its product offering in the Southeast U.S.

In addition to those acquisitions, the Company is also focused on enhancing its U.S. manufacturing production capacity through various plant start-ups in strategic locations. As a result, the Company began production in previously idled or acquired facilities in Decatur, Indiana and Bartow, Florida in fiscal 2024 and a facility in Pembroke, North Carolina in the fourth quarter of fiscal 2023. The Company owns six idle manufacturing facilities that could be used for further manufacturing capacity expansion in future periods.

During fiscal 2024, the Company made an equity investment in ECN. The investment, in part, facilitated the creation of a captive finance company in partnership with Triad, a subsidiary of ECN. The captive finance company, Champion Financing, through Triad, provides factory-built home floor plan and consumer loans to manufactured home retailers and homebuyers. The Company believes this offering will provide customers needed financing solutions and improve the Company's market share.

The Company's acquisitions and investments are part of a strategy to grow and diversify revenue with a focus on increasing the Company’s homebuilding presence in the U.S. as well as improving the results of operations through streamlining production of similar product categories. These acquisitions and investments are included in the Company's consolidated results for periods subsequent to their respective acquisition dates.

Industry and Company Outlook

The need for newly built affordable, single-family housing has continued to drive demand for new homes in the U.S. and Canadian markets. In recent years, manufactured home construction experienced revenue growth due to a number of favorable demographic trends and demand drivers in the United States, including underlying growth trends in key homebuyer groups, such as the population over 55 years of age, the population of first-time home buyers, and the population of households earning less than $60,000 per year.

Because of the need for affordable housing, the Company saw an increase in customers orders during the six months ended September 28, 2024 versus the same period last year that outpaced production rates. As a result, of the increased orders and the acquisition of Regional Homes, the Company's manufacturing backlog was $427.5 million as of September 28, 2024 compared to $257.8 million as of September 30, 2023.

16

For the six months ended September 28, 2024, approximately 87% of the Company’s U.S. manufacturing sales were generated from the manufacture of homes that comply with the U.S. Department of Housing and Urban Development ("HUD") code construction standard in the U.S. Industry shipments of HUD-code homes are reported on a one-month lag. According to data reported by the Manufactured Housing Institute, HUD-code industry home shipments were 44,278 and 37,536 units during the five months ended August 31, 2024 and 2023, respectively. Based on industry data, the Company’s U.S. wholesale market share of HUD code homes sold was 21.9% and 17.9%, for the five months ended August 31, 2024 and 2023, respectively. Annual HUD-code industry shipments have generally increased since calendar year 2009 when only 50,000 HUD-coded manufactured homes were shipped, the lowest level since the industry began recording statistics in 1959. While shipments of HUD-coded manufactured homes have improved modestly in recent years, current manufactured housing shipments are still at lower levels than the long-term historical average of over 200,000 units per year. Manufactured home sales represent approximately 9% of all U.S. single family home starts. Our market share in the U.S total housing market was approximately 2.4% and 1.9% for the six months ended September 28, 2024 and September 30, 2023, respectively.

UNAUDITED RESULTS OF OPERATIONS FOR THE SECOND QUARTER OF FISCAL 2025 VS. 2024


		Three months ended
(Dollars in thousands)		September 28, 2024				September 30, 2023
Income Statements Data:
Net sales		$	616,877			$	464,236
Cost of sales			450,544				347,747
Gross profit			166,333				116,489
Selling, general, and administrative expenses			99,655				64,454
Operating income			66,678				52,035
Interest income, net			(4,737	)			(10,480	)
Other expense			14				2,065
Income before income taxes			71,401				60,450
Income tax expense			15,392				14,781
Net income before equity in net loss of affiliates			56,009				45,669
Equity in net loss of affiliates			691				—
Net income		$	55,318			$	45,669
Net (income) attributable to non-controlling interest			(584	)			—
Net income attributable to Champion Homes, Inc.		$	54,734			$	45,669

Reconciliation of Adjusted EBITDA:
Net income attributable to Champion Homes, Inc.		$	54,734			$	45,669
Income tax expense			15,392				14,781
Interest income, net			(4,737	)			(10,480	)
Depreciation and amortization			9,511				6,786
Equity in net income of ECN			(658	)			—
Transaction costs			—				2,065
Adjusted EBITDA		$	74,242			$	58,821
As a percent of net sales:
Gross profit			27.0	%			25.1	%
Selling, general, and administrative expenses			16.2	%			13.9	%
Operating income			10.8	%			11.2	%
Net income attributable to Champion Homes, Inc.			8.9	%			9.8	%
Adjusted EBITDA			12.0	%			12.7	%

17

NET SALES

The following table summarizes net sales for the three months ended September 28, 2024 and September 30, 2023:


		Three months ended
(Dollars in thousands)		September 28, 2024				September 30, 2023				$ Change				% Change
Net sales		$	616,877			$	464,236			$	152,641				32.9	%
U.S. manufacturing and retail net sales		$	587,127			$	428,132			$	158,995				37.1	%
U.S. homes sold			6,357				4,842				1,515				31.3	%
U.S. manufacturing and retail average home selling price			92.4			$	88.4			$	3.9				4.5	%
Canadian manufacturing net sales		$	22,234			$	29,256			$	(7,022	)			(24.0	%)
Canadian homes sold			179				232				(53	)			(22.8	%)
Canadian manufacturing average home selling price		$	124.2			$	126.1			$	(1.9	)			(1.5	%)
Corporate/Other net sales		$	7,516			$	6,848			$	668				9.8	%
U.S. manufacturing facilities in operation at end of period			43				39
U.S. retail sales centers in operation at end of period			72				31
Canadian manufacturing facilities in operation at end of period			5				5

Net sales for the three months ended September 28, 2024 were $616.9 million, an increase of $152.6 million, or 32.9%, compared to the three months ended September 30, 2023. The following is a summary of the change by operating segment.

U.S. Factory-built Housing:

Net sales for the Company’s U.S. manufacturing and retail operations increased by $159.0 million, or 37.1%, for the three months ended September 28, 2024 compared to the three months ended September 30, 2023. The increase was primarily due to the inclusion of $148.0 million of net sales from Regional Homes in fiscal 2025. The number of new homes sold during the period increased 31.3% and the average selling price per new home increased 4.5%. The increase in the number of homes sold was due to higher customer demand and production volumes compared to the prior year, and the inclusion of Regional Homes in fiscal 2025. The increase in average selling price was due to the increase in the number of units sold through our company-owned retail sales centers, also in part a result of the addition of Regional Homes. The mix of wholesale unit sales sold to independent channels versus homes sold through our company-owned retail sales centers impacts average selling price since we capture revenue from additional installation services for homes sold through internal channels.

Canadian Factory-built Housing:

The Canadian Factory-built Housing segment net sales decreased by $7.0 million, or 24.0% for the three months ended September 28, 2024 compared to the same period in the prior fiscal year, primarily due to a 22.8% decrease in homes sold and a 1.5% decrease in average home selling price. The decrease in homes sold is due to slowing demand in the Canadian market. On a constant currency basis, net sales for the Canadian segment were unfavorably impacted by approximately $1.2 million due to fluctuations in the translation of the Canadian dollar to the U.S. dollar during the three months ended September 28, 2024 as compared to the same period of the prior fiscal year.

Corporate/Other:

Net sales for Corporate/Other includes the Company’s transportation business, financing activities, and the elimination of intersegment sales. For the three months ended September 28, 2024, net sales increased $0.7 million, or 9.8%, primarily attributable to Champion Financing, partially offset by lower recreational vehicle shipments from the Company's transportation business.

18

GROSS PROFIT

The following table summarizes gross profit for the three months ended September 28, 2024 and September 30, 2023:


		Three months ended
(Dollars in thousands)		September 28, 2024				September 30, 2023				$ Change				% Change
Gross profit:
U.S. Factory-built Housing		$	156,319			$	105,084			$	51,235				48.8	%
Canadian Factory-built Housing			4,837				8,007				(3,170	)			(39.6	%)
Corporate/Other			5,177				3,398				1,779				52.4	%
Total gross profit		$	166,333			$	116,489			$	49,844				42.8	%
Gross profit as a percent of net sales			27.0	%			25.1	%

Gross profit as a percent of sales during the three months ended September 28, 2024 was 27.0% compared to 25.1% during the three months ended September 30, 2023. The following is a summary of the change by operating segment.

U.S. Factory-built Housing:

Gross profit for the U.S. Factory-built Housing segment increased by $51.2 million, or 48.8%, during the three months ended September 28, 2024 compared to the same period in the prior fiscal year. Gross profit was 26.6% as a percent of segment net sales for the three months ended September 28, 2024 compared to 24.5% in the same period of the prior fiscal year. The increase in gross profit as a percent of segment net sales is being driven by higher average selling prices from our Company owned retail stores, which also generated a greater percentage of total segment revenue than the prior year as well as lower input costs primarily from forest products and higher capacity utilization.

Canadian Factory-built Housing:

Gross profit for the Canadian Factory-built Housing segment decreased by $3.2 million, or 39.6%, during the three months ended September 28, 2024 compared to the same period in the prior fiscal year. The decrease in gross profit is primarily due to lower sales volumes and average selling prices caused by slowing demand. Gross profit as a percent of net sales was 21.8% for the three months ended September 28, 2024, compared to 27.4% in the same period of the prior year, primarily due to less absorption of fixed costs due to lower sales volumes.

Corporate/Other:

Gross profit for the Corporate/Other segment increased $1.8 million, or 52.4%, during the three months ended September 28, 2024 compared to the same period of the prior fiscal year due primarily to the inclusion of Champion Financing.

SELLING, GENERAL, AND ADMINISTRATIVE EXPENSES

Selling, general, and administrative expenses include in part costs that are not directly attributable to the manufacture or resale of our products, including foreign currency transaction gains and losses, equity compensation, and intangible amortization expense. The following table summarizes selling, general, and administrative expenses for the three months ended September 28, 2024 and September 30, 2023:


		Three months ended
(Dollars in thousands)		September 28, 2024				September 30, 2023				$ Change				% Change
Selling, general, and administrative expenses:
U.S. Factory-built Housing		$	76,781			$	46,614			$	30,167				64.7	%
Canadian Factory-built Housing			2,306				2,600				(294	)			(11.3	%)
Corporate/Other			20,568				15,240				5,328				35.0	%
Total selling, general, and administrative expenses		$	99,655			$	64,454			$	35,201				54.6	%
Selling, general, and administrative expense as a percent of net sales			16.2	%			13.9	%

Selling, general, and administrative expenses were $99.7 million for the three months ended September 28, 2024, an increase of $35.2 million, or 54.6%, compared to the same period in the prior fiscal year. The following is a summary of the change by operating segment.

19

U.S. Factory-built Housing:

Selling, general, and administrative expenses for the U.S. Factory-built Housing segment increased $30.2 million, or 64.7%, during the three months ended September 28, 2024 as compared to the same period in the prior fiscal year. SG&A, as a percent of segment net sales increased to 13.1% for the three months ended September 28, 2024 compared to 10.9% during the comparable period of the prior fiscal year. The acquisition of Regional Homes was the primary driver of the increase in both the amount of SG&A and as a percent of sales. Sales through our internal retail channels incur a higher percent of SG&A than wholesale sales to independent retailers. We also had higher incentive compensation during the period, which is generally based on sales volume or a measure of profitability.

Canadian Factory-built Housing:

Selling, general, and administrative expenses for the Canadian Factory-built Housing segment decreased $0.3 million, or 11.3%, for the three months ended September 28, 2024 when compared to the same period of the prior fiscal year. Selling, general, and administrative expenses as a percent of segment net sales increased to 10.4% for the three months ended September 28, 2024 compared to 8.9% during the comparable period of the prior fiscal year due to decreased leverage of fixed manufacturing costs.

Corporate/Other:

Selling, general, and administrative expenses for Corporate/Other includes the Company’s transportation operations, corporate costs incurred for all segments, and intersegment eliminations. Selling, general, and administrative expenses for Corporate/Other increased $5.3 million, or 35.0%, during the three months ended September 28, 2024 as compared to the same period of the prior fiscal year. The increase was due to investments made in people and information systems to support future growth.

INTEREST (INCOME), NET

The following table summarizes the components of interest (income), net for the three months ended September 28, 2024 and September 30, 2023:


		Three months ended
(Dollars in thousands)		September 28, 2024				September 30, 2023				$ Change				% Change
Interest expense		$	2,113			$	362			$	1,751				483.7	%
Less: interest income			(6,850	)			(10,842	)			3,992				(36.8	%)
Interest (income), net		$	(4,737	)		$	(10,480	)		$	5,743				(54.8	%)
Average outstanding floor plan payable		$	89,418			$	—
Average outstanding long-term debt		$	24,687			$	12,430
Average cash balance		$	559,582			$	749,436

Interest income, net was $4.7 million for the three months ended September 28, 2024, compared to $10.5 million in the same period of the prior fiscal year. The change was primarily due to lower interest income from lower average invested cash balances and higher interest expense from larger average floor plan payables and long-term debt balances assumed in the acquisition of Regional Homes.

OTHER EXPENSE

The following table summarizes other expense for the three months ended September 28, 2024 and September 30, 2023:


		Three months ended
(Dollars in thousands)		September 28, 2024				September 30, 2023				$ Change				% Change
Other expense		$	14			$	2,065			$	(2,051	)			(99.3	%)

The decrease in other expense for the three months ended September 28, 2024 compared to September 30, 2023 is due to transaction costs incurred for the acquisition of Regional Homes in the prior fiscal year.

20

INCOME TAX EXPENSE

The following table summarizes income tax expense for the three months ended September 28, 2024 and September 30, 2023:


		Three months ended
(Dollars in thousands)		September 28, 2024				September 30, 2023				$ Change				% Change
Income tax expense		$	15,392			$	14,781			$	611				4.1	%
Effective tax rate			21.6	%			24.5	%

Income tax expense for the three months ended September 28, 2024 was $15.4 million, representing an effective tax rate of 21.6%, compared to income tax expense of $14.8 million, representing an effective tax rate of 24.5% for the three months ended September 30, 2023. The effective tax rate for the three months ended September 28, 2024 was positively impacted by an increase in recognition of tax credits related to the sale of energy efficient homes.

The Company’s effective tax rate for the three months ended September 28, 2024 and September 30, 2023, differ from the federal statutory income tax rate of 21.0% due primarily to the effect of state and local income taxes, non-deductible expenses, tax credits, and results in foreign jurisdictions.

EQUITY IN NET LOSS OF AFFILIATES

The following table summarizes equity in net loss of affiliates for the three months ended September 28, 2024 and September 30, 2023:


		Three months ended
(Dollars in thousands)		September 28, 2024				September 30, 2023				$ Change				% Change
Equity in net loss of affiliates		$	691			$	—			$	691				100.0	%

The Company's investment in ECN is accounted for under the equity method and the Company’s share of the earnings or losses of ECN are recorded on a three-month lag. Equity in net loss of affiliates of $0.7 million for the three months ended September 28, 2024 represents a gain on the equity method investment in ECN of $0.7 million and net losses from other unconsolidated affiliates of $1.4 million. There were no earnings or losses recognized related to equity method investments for the three months ended September 30, 2023.

NON-CONTROLLING INTEREST

The following table summarizes net (income) attributable to non-controlling interest for the three months ended September 28, 2024 and September 30, 2023:


		Three months ended
(Dollars in thousands)		September 28, 2024				September 30, 2023				$ Change				% Change
Net (income) attributable to non-controlling interest		$	(584	)		$	—			$	(584	)			100.0	%

Net income attributable to non-controlling interest represents the minority partner's 49% share of the results of operations of Champion Financing.

21

ADJUSTED EBITDA

The following table reconciles net income attributable to Champion Homes, Inc., the most directly comparable U.S. GAAP measure, to Adjusted EBITDA, a non-GAAP financial measure, for the three months ended September 28, 2024 and September 30, 2023:


		Three months ended
(Dollars in thousands)		September 28, 2024				September 30, 2023				$ Change				% Change
Net income attributable to Champion Homes, Inc.		$	54,734			$	45,669			$	9,065				19.8	%
Income tax expense			15,392				14,781				611				4.1	%
Interest (income), net			(4,737	)			(10,480	)			5,743				(54.8	%)
Depreciation and amortization			9,511				6,786				2,725				40.2	%
Equity in net income of ECN			(658	)			—				(658	)		*
Transaction costs			—				2,065				(2,065	)		*
Adjusted EBITDA		$	74,242			$	58,821			$	15,421				26.2	%

* indicates that the calculated percentage is not meaningful

Adjusted EBITDA for the three months ended September 28, 2024 was $74.2 million, an increase of $15.4 million from the same period of the prior fiscal year. The increase is primarily a result of higher sales volumes and gross profit, partially offset by higher SG&A expenses, primarily due to the inclusion of Regional Homes.

UNAUDITED INCOME STATEMENTS FOR THE FIRST HALF OF FISCAL 2025 VS. 2024


		Six months ended
(Dollars in thousands)		September 28, 2024				September 30, 2023
Income Statements Data:
Net sales		$	1,244,656			$	929,005
Cost of sales			914,108				682,843
Gross profit			330,548				246,162
Selling, general, and administrative expenses			208,482				134,893
Operating income			122,066				111,269
Interest income, net			(8,986	)			(19,781	)
Other (income) expense			(1,205	)			2,065
Income before income taxes			132,257				128,985
Income tax expense			29,111				32,047
Net income before equity in net loss of affiliates			103,146				96,938
Equity in net loss of affiliates			2,034				—
Net income		$	101,112			$	96,938
Net (income) attributable to non-controlling interest			(584	)			—
Net income attributable to Champion Homes, Inc.		$	100,528			$	96,938

Reconciliation of Adjusted EBITDA:
Net income attributable to Champion Homes, Inc.		$	100,528			$	96,938
Income tax expense			29,111				32,047
Interest (income), net			(8,986	)			(19,781	)
Depreciation and amortization			20,123				14,378
Equity in net loss of ECN			521				—
Change in fair value of contingent consideration			7,912				—
Transaction costs			—				2,065
Adjusted EBITDA		$	149,209			$	125,647
As a percent of net sales:
Gross profit			26.6	%			26.5	%
Selling, general, and administrative expenses			16.8	%			14.5	%
Operating income			9.8	%			12.0	%
Net income attributable to Champion Homes, Inc.			8.1	%			10.4	%
Adjusted EBITDA			12.0	%			13.5	%

22

NET SALES

The following table summarizes net sales for the six months ended September 28, 2024 and September 30, 2023:


		Six months ended
(Dollars in thousands)		September 28, 2024				September 30, 2023				$ Change				% Change
Net sales		$	1,244,656			$	929,005			$	315,651				34.0	%
U.S. manufacturing and retail net sales		$	1,186,660			$	856,917			$	329,743				38.5	%
U.S. homes sold			12,895				9,659				3,236				33.5	%
U.S. manufacturing and retail average home selling price		$	92.0			$	88.7			$	3.3				3.7	%
Canadian manufacturing net sales		$	43,033			$	55,376			$	(12,343	)			22.3	%
Canadian homes sold			346				453				(107	)			23.6	%
Canadian manufacturing average home selling price		$	124.4			$	122.2			$	2.2				1.8	%
Corporate/Other net sales		$	14,963			$	16,712			$	(1,749	)			10.5	%
U.S. manufacturing facilities in operation at end of period			43				39
U.S. retail sales centers in operation at end of period			72				31
Canadian manufacturing facilities in operation at end of period			5				5

Net sales for the six months ended September 28, 2024 were $1.2 billion, an increase of $315.7 million, or 34.0%, compared to the six months ended September 30, 2023. The following is a summary of the change by operating segment.

U.S. Factory-built Housing:

Net sales for the Company’s U.S. manufacturing and retail operations increased by $329.7 million, or 38.5%, for the six months ended September 28, 2024 compared to the six months ended September 30, 2023. The increase was primarily due to the inclusion of $299.4 million of net sales from Regional Homes in fiscal 2025. The number of homes sold during the period increased 33.5% and the average home selling price increased 3.7%. The increase in the number of homes sold was due to higher customer demand and production volumes compared to the prior year and the inclusion of Regional Homes in fiscal 2025. The increase in average selling price was due to the increase in the number of units sold through our company-owned retail sales centers, also in part a result of the addition of Regional Homes. The mix of wholesale unit sales versus homes sold through our company-owned stores impacts average selling price. During the six months ended September 28, 2024, wholesale average selling price per new home decreased due to the changes in product mix, including customers choosing homes with fewer or lower cost options.

Canadian Factory-built Housing:

The Canadian Factory-built Housing segment net sales decreased by $12.3 million, or 22.3% for the six months ended September 28, 2024 compared to the same period in the prior fiscal year, primarily due to a 23.6% decrease in homes sold, partially offset by a 1.8% increase in average home selling price. The decrease in homes sold is due to slowing demand in the Canadian market. On a constant currency basis, net sales for the Canadian segment were unfavorably impacted by approximately $0.8 million due to fluctuations in the translation of the Canadian dollar to the U.S. dollar during the six months ended September 28, 2024 as compared to the same period of the prior fiscal year.

Corporate/Other:

Net sales for Corporate/Other includes the Company’s transportation business, financing activities and the elimination of intersegment sales. For the six months ended September 28, 2024, net sales decreased $1.7 million, or 10.5%, primarily attributable to the decrease in recreational vehicle shipments, offset in part by the inclusion of Champion Financing.

GROSS PROFIT

The following table summarizes gross profit for the six months ended September 28, 2024 and September 30, 2023:


		Six months ended
(Dollars in thousands)		September 28, 2024				September 30, 2023				$ Change				% Change
Gross profit:
U.S. Factory-built Housing		$	310,660			$	223,508			$	87,152				39.0	%
Canadian Factory-built Housing			10,189				15,035				(4,846	)			32.2	%
Corporate/Other			9,699				7,619				2,080				27.3	%
Total gross profit		$	330,548			$	246,162			$	84,386				34.3	%
Gross profit as a percent of net sales			26.6	%			26.5	%

23

Gross profit as a percent of sales during the six months ended September 28, 2024 was 26.6% compared to 26.5% during the six months ended September 28, 2024. The following is a summary of the change by operating segment.

U.S. Factory-built Housing:

Gross profit for the U.S. Factory-built Housing segment increased by $87.2 million or 39.0%, during the six months ended September 28, 2024 compared to the same period in the prior fiscal year. The increase in gross profit was driven by higher unit volume due to higher customer demand and production rates and the inclusion of Regional Homes. Gross profit was 26.2% as a percent of segment net sales for the six months ended September 28, 2024 compared to 26.1% in the same period of the prior fiscal year.

Canadian Factory-built Housing:

Gross profit for the Canadian Factory-built Housing segment decreased by $4.8 million, or 32.2% during the six months ended September 28, 2024 compared to the same period in the prior fiscal year. The decrease in gross profit is primarily due to lower sales volumes. Gross profit as a percent of net sales was 23.7% for the six months ended September 28, 2024, compared to 27.2% in the same period of the prior year, primarily the result of decreased leverage of fixed manufacturing costs.

Corporate/Other:

Gross profit for the Corporate/Other segment increased $2.1 million, or 27.3%, during the six months ended September 28, 2024 compared to the same period of the prior fiscal year. Gross profit increased as a a result of the revenue mix in the Company's transportation operations and the inclusion of Champion Financing.

SELLING, GENERAL, AND ADMINISTRATIVE EXPENSES

Selling, general, and administrative expenses include in part costs that are not directly attributable to the manufacture or resale of our products, including foreign currency transaction gains and losses, equity compensation, and intangible amortization expense. The following table summarizes selling, general, and administrative expenses for the six months ended September 28, 2024 and September 30, 2023:


		Six months ended
(Dollars in thousands)		September 28, 2024				September 30, 2023				$ Change				% Change
Selling, general, and administrative expenses:
U.S. Factory-built Housing		$	162,115			$	97,893			$	64,222				65.6	%
Canadian Factory-built Housing			5,216				5,220				(4	)			(0.1	%)
Corporate/Other			41,151				31,780				9,371				29.5	%
Total selling, general, and administrative expenses		$	208,482			$	134,893			$	73,589				54.6	%
Selling, general, and administrative expense as a percent of net sales			16.8	%			14.5	%

Selling, general, and administrative expenses were $208.5 million for the six months ended September 28, 2024, an increase of $73.6 million, or 54.6%, compared to the same period in the prior fiscal year. The following is a summary of the change by operating segment.

U.S. Factory-built Housing:

Selling, general, and administrative expenses for the U.S. Factory-built Housing segment increased $64.2 million, or 65.6%, during the six months ended September 28, 2024 as compared to the same period in the prior fiscal year. Selling, general, and administrative expenses, as a percent of segment net sales increased to 13.7% for the six months ended September 28, 2024 compared to 11.4% during the comparable period of the prior fiscal year primarily due to the acquisition of Regional Homes, including a charge of $7.9 million in the first quarter of fiscal 2025 related to the change in fair value of the contingent consideration included in the acquisition of Regional Homes, as well as higher incentive compensation, which is generally based on sales volume or a measure of profitability.

Canadian Factory-built Housing:

Selling, general, and administrative expenses for the Canadian Factory-built Housing segment were flat when compared to the same period of the prior fiscal year. Selling, general, and administrative expenses as a percent of segment net sales increased to 12.1% for the six months ended September 28, 2024 compared to 9.4% during the comparable period of the prior fiscal year due to less absorption of fixed costs caused by lower sales.

24

Corporate/Other:

Selling, general, and administrative expenses for Corporate/Other includes the Company’s transportation operations, corporate costs incurred for all segments, and intersegment eliminations. Selling, general, and administrative expenses for Corporate/Other increased $9.4 million, or 29.5%, during the six months ended September 28, 2024 as compared to the same period of the prior fiscal year due primarily to higher incentive and stock-based compensation expense and investments made in people and information systems to support future growth.

INTEREST (INCOME), NET

The following table summarizes the components of interest (income), net for the six months ended September 28, 2024 and September 30, 2023:


		Six months ended
(Dollars in thousands)		September 28, 2024				September 30, 2023				$ Change				% Change
Interest expense		$	4,310			$	739			$	3,571				483.2	%
Less: interest income			(13,296	)			(20,520	)			7,224				(35.2	%)
Interest (income), net		$	(8,986	)		$	(19,781	)		$	10,795				(54.6	%)
Average outstanding floor plan payable		$	88,632			$	—
Average outstanding long-term debt		$	24,680			$	12,430
Average cash balance		$	532,647			$	724,304

Interest (income), net was $9.0 million for the six months ended September 28, 2024, compared to $19.8 million in the same period of the prior fiscal year. The change was primarily due to lower interest income from lower average invested cash balances and higher interest expense from higher average floor plan payables and long-term debt balances assumed in the acquisition of Regional Homes.

OTHER (INCOME) EXPENSE

The following table summarizes other (income) expense for the six months ended September 28, 2024 and September 30, 2023:


		Six months ended
(Dollars in thousands)		September 28, 2024				September 30, 2023				$ Change				% Change
Other (income) expense		$	(1,205	)		$	2,065			$	(3,270	)			(158.4	%)

Other (income) of $1.2 million for the six months ended September 28, 2024 represents dividend income from the investment in ECN Preferred shares. Other expense of $2.1 million for the six months ended September 30, 2023 represents transaction costs incurred for the acquisition of Regional Homes.

INCOME TAX EXPENSE

The following table summarizes income tax expense for the six months ended September 28, 2024 and September 30, 2023:


		Six months ended
(Dollars in thousands)		September 28, 2024				September 30, 2023				$ Change				% Change
Income tax expense		$	29,111			$	32,047			$	(2,936	)			(9.2	%)
Effective tax rate			22.0	%			24.8	%

Income tax expense for the six months ended September 28, 2024 was $29.1 million, representing an effective tax rate of 22.0%, compared to income tax expense of $32.0 million, representing an effective tax rate of 24.8% for the six months ended September 30, 2023. The effective tax rate for the six months ended September 28, 2024 was positively impacted by an increase in recognition of tax credits related to the sale of energy efficient homes.

The Company’s effective tax rates for the six months ended September 28, 2024 and September 30, 2023 differ from the federal statutory income tax rate of 21.0% due primarily to the effect of state and local income taxes, non-deductible expenses, tax credits, and results in foreign jurisdictions.

25

EQUITY IN NET LOSS OF AFFILIATES

The following table summarizes equity in net loss of affiliates for the six months ended September 28, 2024 and September 30, 2023:


		Six months ended
(Dollars in thousands)		September 28, 2024				September 30, 2023				$ Change				% Change
Equity in net loss of affiliates		$	2,034			$	—			$	2,034				100.0	%

The Company's investment in ECN is accounted for under the equity method and the Company’s share of the earnings or losses of ECN are recorded on a three-month lag. Equity in net loss of affiliates of $2.0 million for the six months ended September 28, 2024 represents a loss on the equity method investment in ECN of $0.5 million and net losses from other unconsolidated affiliates of $1.5 million. There were no earnings or losses recognized related to equity method investments for the six months ended September 30, 2023.

NON-CONTROLLING INTEREST

The following table summarizes non-controlling interest for the six months ended September 28, 2024 and September 30, 2023:


		Six months ended
(Dollars in thousands)		September 28, 2024				September 30, 2023				$ Change				% Change
Net (income) attributable to non-controlling interest		$	(584	)		$	—			$	(584	)			100.0	%

Net income attributable to non-controlling interest represents the minority partner's 49% share of the results of operations of Champion Financing.

ADJUSTED EBITDA

The following table reconciles net income attributable to Champion Homes, Inc., the most directly comparable U.S. GAAP measure, to Adjusted EBITDA, a non-GAAP financial measure, for the six months ended September 28, 2024 and September 30, 2023:


		Six months ended
(Dollars in thousands)		September 28, 2024				September 30, 2023				$ Change				% Change
Net income attributable to Champion Homes, Inc.		$	100,528			$	96,938			$	3,590				3.7	%
Income tax expense			29,111				32,047				(2,936	)			(9.2	%)
Interest (income), net			(8,986	)			(19,781	)			10,795				(54.6	%)
Depreciation and amortization			20,123				14,378				5,745				40.0	%
Equity in net loss of ECN			521				—				521			*
Change in fair value of contingent consideration			7,912				—				7,912			*
Transaction costs			—				2,065				(2,065	)		*
Adjusted EBITDA		$	149,209			$	125,647			$	23,562				18.8	%

* indicates that the calculated percentage is not meaningful

Adjusted EBITDA for the six months ended September 28, 2024 was $149.2 million, an increase of $23.6 million from the same period of the prior fiscal year. The increase is primarily a result of higher sales volumes and gross profit, partially offset by higher SG&A expenses, primarily due to the inclusion of Regional Homes.

The Company defines Adjusted EBITDA as net income or loss attributable to Champion Homes, Inc. plus expense or minus income: (a) the provision for income taxes; (b) interest (income) expense, net; (c) depreciation and amortization; (d) gain or loss from discontinued operations; (e) non-cash restructuring charges and impairment of assets; (f) equity in net earnings or losses of ECN; (g) charges related to the remediation of the water intrusion product liability claims; and (h) other non-operating income and costs, including but not limited to those costs for the acquisition and integration or disposition of businesses, including the change in fair value of contingent consideration, and idle facilities. Adjusted EBITDA is not a measure of earnings calculated in accordance with U.S. GAAP, and should not be considered an alternative to, or more meaningful than, net income or loss, net sales, operating income or earnings per share prepared on a U.S. GAAP basis. Adjusted EBITDA does not purport to represent cash flow provided by, or used in, operating activities as defined by U.S. GAAP, which is presented in the Statement of Cash Flows. In addition, Adjusted EBITDA is not necessarily comparable to similarly titled measures reported by other companies.

26

Adjusted EBITDA is presented as a supplemental measure of the Company’s financial performance that management believes is useful to investors, because the excluded items may vary significantly in timing or amounts and/or may obscure trends useful in evaluating and comparing the Company’s operating activities across reporting periods. Management believes Adjusted EBITDA is useful to an investor in evaluating operating performance for the following reasons: (i) Adjusted EBITDA is widely used by investors to measure a company’s operating performance without regard to items such as interest income and expense, taxes, depreciation and amortization and other non-operating income or loss, which can vary substantially from company to company depending upon accounting methods and the book value of assets, capital structure and the method by which assets were acquired; and (ii) analysts and investors use Adjusted EBITDA as a supplemental measure to evaluate the overall operating performance of companies in the industry.

Management uses Adjusted EBITDA for planning purposes, including the preparation of internal annual operating budget and periodic forecasts: (i) in communications with the Board of Directors and investors concerning financial performance; (ii) as a factor in determining bonuses under certain incentive compensation programs; and (iii) as a measure of operating performance used to determine the ability to provide cash flows to support investments in capital assets, acquisitions and working capital requirements for operating expansion.

BACKLOG

Although orders from customers can be canceled at any time without penalty, and unfilled orders are not necessarily an indication of future business, the Company’s unfilled U.S. and Canadian manufacturing orders at September 28, 2024 totaled $427.5 million compared to $257.8 million at September 30, 2023. The increase in backlog is due to higher net orders and the acquisition of Regional Homes.

Liquidity and Capital Resources

Sources and Uses of Cash

The following table presents summary cash flow information for the six months ended September 28, 2024 and September 30, 2023:


		Six months ended
(Dollars in thousands)		September 28, 2024				September 30, 2023
Net cash provided by (used in):
Operating activities		$	144,442			$	129,138
Investing activities			(22,553	)			(174,639	)
Financing activities			(47,320	)			(758	)
Effect of exchange rate changes on cash, cash equivalents			599				(39	)
Net increase (decrease) in cash and cash equivalents			75,168				(46,298	)
Cash and cash equivalents at beginning of period			495,063				747,453
Cash and cash equivalents at end of period		$	570,231			$	701,155

The Company’s primary sources of liquidity are cash flows from operations and existing cash balances. Cash balances and cash flows from operations for the next year are expected to be adequate to cover working capital requirements, capital expenditures, and strategic initiatives and investments. The Company has an Amended Credit Agreement which provides for a $200.0 million revolving credit facility, including a $45.0 million letter of credit sub-facility. At September 28, 2024, $168.5 million was available for borrowing under the Amended Credit Agreement. The Company’s revolving credit facility includes (i) a maximum consolidated total net leverage ratio of 3.25 to 1.00, subject to an upward adjustment upon the consummation of a material acquisition, and (ii) a minimum interest coverage ratio of 3.00 to 1.00. The Company anticipates compliance with its debt covenants and projects its level of cash availability to be in excess of cash needed to operate the business for the next year and beyond. In the event operating cash flow and existing cash balances were deemed inadequate to support the Company’s liquidity needs, and one or more capital resources were to become unavailable, the Company would revise its operating strategies.

Cash provided by operating activities was $144.4 million for the six months ended September 28, 2024 compared to $129.1 million for the six months ended September 30, 2023. The increase was primarily driven by higher income before non-cash charges, including the charge for the change in fair value of contingent consideration for the Regional Homes acquisition, partially offset by less favorable changes in working capital items during the first six months of fiscal 2025 as compared to the same period of the prior year.

Cash used in investing activities was $22.6 million for the six months ended September 28, 2024 compared to $174.6 million for the six months ended September 30, 2023. The decrease in cash used for investing activities was related to the Company's investment in floor plan loans, ECN common stock and ECN preferred stock in fiscal 2024 which did not recur in fiscal 2025.

Cash used in financing activities was $47.3 million for the six months ended September 28, 2024 compared to $0.8 million for the six months ended September 30, 2023. The change in cash between periods was primarily due to repurchases of the Company's common stock totaling $40.0 million in the first half of fiscal 2025.

27

Critical Accounting Policies

For a discussion of our critical accounting policies that management believes affect its more significant judgments and estimates used in the preparation of our Consolidated Financial Statements, see Part II, Item 7 of the Fiscal 2024 Annual Report, under the heading “Critical Accounting Policies.” There have been no significant changes in our significant accounting policies or critical accounting estimates discussed in the Fiscal 2024 Annual Report, other than those included in Note 1, "Basis of Presentation".

Recently Issued Accounting Pronouncements

For information on the impact of recently issued accounting pronouncements, see Note 1, “Basis of Presentation – Recently Issued Accounting Pronouncements,” to the condensed consolidated financial statements included in this Report.

Forward-Looking Statements

Some of the statements in this Report are not historical in nature and are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements about our expectations regarding our future liquidity, earnings, expenditures, and financial condition. These statements are often identified by the words “will,” “could”, “should,” “anticipate,” “believe,” “expect,” “intend,” “estimate,” “hope,” or similar expressions. These statements reflect management’s current views with respect to future events and are subject to risks and uncertainties. There are risks and uncertainties, many of which are beyond our control, that could cause our actual results to differ materially from those in our forward-looking statements, including regional, national and international economic, financial, public health and labor conditions, and the following:

•

supply-related issues, including prices and availability of materials;

•

labor-related issues;

•

inflationary pressures in the North American economy;

•

the cyclicality and seasonality of the housing industry and its sensitivity to changes in general economic or other business conditions;

•

demand fluctuations in the housing industry, including as a result of actual or anticipated increases in homeowner borrowing rates;

•

the possible unavailability of additional capital when needed;

•

competition and competitive pressures;

•

changes in consumer preferences for our products or our failure to gauge those preferences;

•

quality problems, including the quality of parts sourced from suppliers and related liability and reputational issues, including those related to the remediation of the water intrusion claims;

•

data security breaches, cybersecurity attacks, and other information technology disruptions;

•

the potential disruption of operations caused by the conversion to new information systems;

•

the extensive regulation affecting the production and sale of factory-built housing and the effects of possible changes in laws with which we must comply;

•

the potential impact of natural disasters on our supply chain, sales and raw material costs;

•

the risks associated with mergers and acquisitions, including integration of operations and information systems;

•

periodic inventory adjustments by, and changes to relationships with, independent retailers;

•

changes in interest and foreign exchange rates;

•

insurance coverage and cost issues;

•

the possibility that all or part of our intangible assets, including goodwill, might become impaired;

•

the possibility that all or part of our investment in ECN Capital Corp. ("ECN") might become impaired;

•

the possibility that our risk management practices may leave us exposed to unidentified or unanticipated risks;

28

•

the potential disruption to our business caused by public health issues, such as an epidemic or pandemic, and resulting government actions;

•

the possibility our share repurchase program will not enhance long-term stockholder value, could increase the volatility of our stock price, and diminish our cash reserves; and

•

other risks described in Part I — Item 1A, "Risk Factors," included in the Fiscal 2024 Annual Report, as well as the risks and information provided from time to time in our other periodic reports filed with the Securities and Exchange Commission (the “SEC”).

If any of the risks or uncertainties referred to above materializes or if any of the assumptions underlying our forward-looking statements proves to be incorrect, then differences may arise between our forward-looking statements and our actual results, and such differences may be material. Investors should not place undue reliance on our forward-looking statements, which speak only as of the date of this report. We assume no obligation to update, amend or clarify them to reflect events, new information or circumstances occurring after the date hereof, except as required by law.

Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

For a discussion of the Company’s interest rate and foreign exchange risks, see Part II, Item 7A of the Fiscal 2024 Annual Report, under the heading "Quantitative and Qualitative Disclosures about Market Risk." There have been no significant changes in such risks since March 30, 2024.

Item 4. CONTROLS AND PROCEDURES

Evaluation of disclosure controls and procedures

The Company maintains disclosure controls and procedures designed to provide reasonable assurance that information required to be disclosed in reports filed under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) is recorded, processed, summarized, and reported within the specified time periods and accumulated and communicated to management, including the principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure.

The Company’s management, with the participation of the CEO and CFO, evaluated the effectiveness of the Company’s disclosure controls and procedures pursuant to Rule 13a-15(e) of the Exchange Act at September 28, 2024. Based upon this evaluation, the CEO and CFO concluded that the Company’s disclosure controls and procedures were effective as of September 28, 2024.

Changes in internal control over financial reporting

There have been no changes in our internal control over financial reporting during the fiscal quarter to which this report relates that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting. In October 2023, we completed the acquisition of Regional Homes and are currently integrating Regional Homes into our operations, compliance programs and internal control processes. Regional Homes constituted approximately 26% of our total assets as of September 28, 2024, including the goodwill and intangible assets recorded as part of the purchase price allocation and approximately 24% of our net sales for the six months ended September 28, 2024. United States Securities and Exchange Commission guidance allows companies to exclude acquisitions from their assessment of the internal control over financial reporting during the first year following an acquisition while integrating the acquired company. We have excluded the acquired operations of Regional Homes from our assessment of the Company's internal control over financial reporting.

29

PART II – OTHER INFORMATION

Item 1. LEGAL PROCEEDINGS

We are involved from time to time in various legal proceedings and claims, including, without limitation, commercial or contractual disputes, product liability claims and other matters. For additional information on legal proceedings, see Note 14 “Commitments, Contingencies and Legal Proceedings – Legal Proceedings,” to the condensed consolidated financial statements included in this Report.

Item 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Issuer Purchases of Equity Securities

On May 16, 2024, Champion Homes, Inc.’s Board of Directors approved a share repurchase program for up to $100.0 million of the Company’s common stock, which was subsequently amended for up to $120.0 million. On October 28, 2024, the Company's Board of Directors approved an increase to this share repurchase program to repurchase up to an additional $20.0 million of the Company's common stock. Under this share repurchase program, the number of shares ultimately purchased, and the timing of purchases are at the discretion of management and subject to compliance with applicable laws and regulations. The share repurchase program does not expire. The Company intends to fund the program from existing cash. Share repurchases are made in the open market or in privately negotiated transactions in compliance with applicable state and federal securities laws and other legal requirements. The level of repurchase activity is subject to market conditions and other investment opportunities. The repurchase program does not obligate the Company to acquire any particular amount of common stock and may be suspended or discontinued at any time. Share repurchase activity during the three months ended September 28, 2024 was as follows:


Period		Total Number of Shares Purchased				Average Price Paid Per Share				Total Number of Shares Purchased as Part of the Publicly Announced Programs				Approximate Dollar Value of Shares That May Yet Be Purchased Under the Programs (in thousands)
9/1/2024 - 9/28/2024			214,275			$	93.32				214,275			$	80,000
			214,275								214,275

Item 5. OTHER INFORMATION

During the six months ended September 28, 2024, none of the Company’s directors or Section 16 officers adopted or terminated a Rule 10b5-1 Trading Plan or “non-Rule 10b5-1 trading arrangement,” as defined in Item 408(a) of Regulation S-K.

30

Item 6. EXHIBITS


Exhibit Number		Description

31.1		Certification of Chief Executive Officer pursuant to Exchange Act rules 13a-4 and 15d-14, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. †

31.2		Certification of Chief Financial Officer pursuant to Exchange Act rules 13a-4 and 15d-14, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. †

32		Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. §1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. †

101 (INS)		Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
101(SCH)		Inline XBRL Taxonomy Extension Schema With Embedded Linkbases Document.
104		Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).

† Filed herewith.

31

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Champion Homes, Inc.

Registrant


Signature		Title		Date

/s/ Mark Yost		President and Chief Executive Officer		October 29, 2024
Mark Yost		(Principal Executive Officer)

/s/ Laurie Hough		Executive Vice President, Chief Financial Officer and Treasurer		October 29, 2024
Laurie Hough		(Principal Financial Officer)

32

Exhibit 31.1

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER PURSUANT TO SECTION 302

OF THE SARBANES-OXLEY ACT OF 2002

I, Mark Yost, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Champion Homes, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.


Dated:		October 29, 2024
By:		/s/ Mark Yost
		Mark Yost
		Chief Executive Officer (Principal Executive Officer)

Exhibit 31.2

CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER PURSUANT TO SECTION 302

OF THE SARBANES-OXLEY ACT OF 2002

I, Laurie Hough, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Champion Homes, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.


Dated:		October 29, 2024
By:		/s/ Laurie Hough
		Laurie Hough
		Executive Vice President, Chief Financial Officer, and Treasurer (Principal Financial Officer)

Exhibit 32

CERTIFICATION OF CHIEF EXECUTIVE OFFICER AND

CHIEF FINANCIAL OFFICER

PURSUANT TO 18 U.S.C. §1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of Champion Homes, Inc. (the “Registrant”) for the period ending September 28, 2024 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), each of the undersigned officers of the Registrant hereby certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that to his or her knowledge:

1. The Report fully complies with the requirements of Sections 13(a) - 15(e) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

    October 29, 2024

   

    /s/ Mark Yost

   

    Mark Yost

   

    Chief Executive Officer (Principal Executive Officer)

   

    /s/ Laurie Hough

   

    Laurie Hough

   

    Executive Vice President, Chief Financial Officer, and Treasurer

   

    (Principal Financial Officer)

   

Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Sep. 28, 2024	Oct. 22, 2024
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 28, 2024
Document Fiscal Year Focus	2025
Document Fiscal Period Focus	Q2
Entity Registrant Name	Champion Homes, Inc.
Entity Central Index Key	0000090896
Current Fiscal Year End Date	--03-29
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		57,403,251
Entity File Number	001-04714
Entity Tax Identification Number	35-1038277
Entity Address, Address Line One	755 West Big Beaver Road
Entity Address, Address Line Two	Suite 1000
Entity Address, City or Town	Troy
Entity Address, State or Province	MI
Entity Address, Postal Zip Code	48084
City Area Code	248
Local Phone Number	614-8211
Title of 12(b) Security	Common Stock
Trading Symbol	SKY
Security Exchange Name	NYSE
Entity Incorporation, State or Country Code	IN
Entity Interactive Data Current	Yes
Document Transition Report	false
Document Quarterly Report	true

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 28, 2024	Mar. 30, 2024
Current assets:
Cash and cash equivalents	$ 570,231	$ 495,063
Trade accounts receivable, net	74,755	64,632
Inventories, net	325,534	318,737
Other current assets	43,594	39,870
Total current assets	1,014,114	918,302
Long-term assets:
Property, plant, and equipment, net	300,840	290,930
Goodwill	357,973	357,973
Amortizable intangible assets, net	70,491	76,369
Deferred tax assets	27,784	26,878
Other noncurrent assets	256,470	252,889
Total assets	2,027,672	1,923,341
Current liabilities:
Floorplan payable	85,978	91,286
Accounts payable	64,260	50,820
Other current liabilities	268,446	247,495
Total current liabilities	418,684	389,601
Long-term liabilities:
Long-term debt	24,690	24,669
Deferred tax liabilities	7,297	6,905
Other liabilities	84,745	79,796
Total long-term liabilities	116,732	111,370
Stockholders' Equity:
Common stock, $0.0277 par value, 115,000 shares authorized, 57,384 and 57,815 shares issued as of September 28, 2024 and March 30, 2024, respectively	1,592	1,605
Additional paid-in capital	579,685	568,203
Retained earnings	924,408	866,485
Accumulated other comprehensive loss	(13,429)	(13,923)
Total stockholders' equity	1,492,256	1,422,370
Total liabilities and stockholders' equity	$ 2,027,672	$ 1,923,341

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 28, 2024	Mar. 30, 2024
Statement of Financial Position [Abstract]
Common stock, par value	$ 0.0277	$ 0.0277
Common stock, shares authorized	115,000,000	115,000,000
Common stock, shares issued	57,384,000	57,815,000

Condensed Consolidated Income Statements - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 28, 2024	Sep. 30, 2023	Sep. 28, 2024	Sep. 30, 2023
Income Statement [Abstract]
Net sales	$ 616,877	$ 464,236	$ 1,244,656	$ 929,005
Cost of sales	450,544	347,747	914,108	682,843
Gross profit	166,333	116,489	330,548	246,162
Selling, general, and administrative expenses	99,655	64,454	208,482	134,893
Operating income	66,678	52,035	122,066	111,269
Interest (income), net	(4,737)	(10,480)	(8,986)	(19,781)
Other expense (income)	14	2,065	(1,205)	2,065
Income before income taxes	71,401	60,450	132,257	128,985
Income tax expense	15,392	14,781	29,111	32,047
Net income before equity in net loss of affiliates	56,009	45,669	103,146	96,938
Equity in net loss of affiliates	691	0	2,034	0
Net income	55,318	45,669	101,112	96,938
Net (income) attributable to non-controlling interest	(584)	0	(584)	0
Net income attributable to Champion Homes, Inc.	$ 54,734	$ 45,669	$ 100,528	$ 96,938
Net income attributable to Champion Homes, Inc. per share:
Basic	$ 0.95	$ 0.8	$ 1.74	$ 1.69
Diluted	$ 0.94	$ 0.79	$ 1.73	$ 1.68

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 28, 2024	Sep. 30, 2023	Sep. 28, 2024	Sep. 30, 2023
Statement of Comprehensive Income [Abstract]
Net income	$ 55,318	$ 45,669	$ 101,112	$ 96,938
Other comprehensive (loss) income, net of tax:
Foreign currency translation adjustments	1,624	(2,115)	494	68
Total other comprehensive income (loss)	1,624	(2,115)	494	68
Total comprehensive income before non-controlling interests	56,942	43,554	101,606	97,006
Comprehensive (income) attributable to non-controlling interests	(584)	0	(584)	0
Comprehensive income attributable to Champion Homes, Inc.	$ 56,358	$ 43,554	$ 101,022	$ 97,006

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Sep. 28, 2024	Sep. 30, 2023
Cash flows from operating activities
Net income	$ 101,112	$ 96,938
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	20,123	14,378
Amortization of deferred financing fees	187	162
Equity-based compensation	11,213	10,943
Deferred taxes	(596)	(1,919)
Loss on disposal of property, plant, and equipment	57	96
Foreign currency transaction (gain) loss	(70)	76
Equity in net loss of affiliates	2,034	0
Dividends from equity method investment	766	0
Change in fair value of contingent consideration	7,912	0
Change in assets and liabilities:
Accounts receivable	(10,051)	12,101
Floor plan receivables	(15,155)	(2,521)
Inventories	(6,759)	20,059
Other assets	(330)	(13,434)
Accounts payable	13,895	4,387
Accrued expenses and other liabilities	20,104	(12,128)
Net cash provided by operating activities	144,442	129,138
Cash flows from investing activities
Additions to property, plant, and equipment	(24,827)	(22,847)
Cash paid for equity method investment	0	(1,000)
Cash paid for investment in ECN common stock	0	(78,858)
Cash paid for investment in ECN preferred stock	0	(64,520)
Investment in floor plan loans	0	(18,466)
Proceeds from floor plan loans	2,136	10,528
Proceeds from disposal of property, plant, and equipment	138	524
Net cash used in investing activities	(22,553)	(174,639)
Cash flows from financing activities
Changes in floor plan financing, net	(5,308)	0
Payments on long term debt	(11)	0
Payments on repurchase of common stock	(40,000)	0
Stock option exercises	272	224
Tax payments for equity-based compensation	(2,273)	(982)
Net cash used in financing activities	(47,320)	(758)
Effect of exchange rate changes on cash and cash equivalents	599	(39)
Net increase (decrease) in cash and cash equivalents	75,168	(46,298)
Cash and cash equivalents at beginning of period	495,063	747,453
Cash and cash equivalents at end of period	$ 570,231	$ 701,155

Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Loss [Member]	Non-Controlling Interest [Member]
Beginning Balance at Apr. 01, 2023	$ 1,233,001	$ 1,585	$ 519,479	$ 725,672	$ (13,735)
Beginning balance, shares at Apr. 01, 2023		57,108,000
Net income	96,938			96,938
Equity-based compensation	10,943		10,943
Net common stock issued under equity-based compensation plans	(757)	$ 2	223	(982)
Net common stock issued under equity-based compensation plans, shares		54,000
Foreign currency translation adjustments	68				68
Ending Balance at Sep. 30, 2023	1,340,193	$ 1,587	530,645	821,628	(13,667)
Ending balance, shares at Sep. 30, 2023		57,162,000
Beginning Balance at Jul. 01, 2023	1,290,921	$ 1,586	524,907	775,980	(11,552)
Beginning balance, shares at Jul. 01, 2023		57,133,000
Net income	45,669			45,669
Equity-based compensation	5,515		5,515
Net common stock issued under equity-based compensation plans	203	$ 1	223	(21)
Net common stock issued under equity-based compensation plans, shares		29,000
Foreign currency translation adjustments	(2,115)				(2,115)
Ending Balance at Sep. 30, 2023	1,340,193	$ 1,587	530,645	821,628	(13,667)
Ending balance, shares at Sep. 30, 2023		57,162,000
Beginning Balance at Mar. 30, 2024	1,422,370	$ 1,605	568,203	866,485	(13,923)	$ 0
Beginning balance, shares at Mar. 30, 2024		57,815,000
Net income	101,112			100,528		584
Equity-based compensation	11,213		11,213
Net common stock issued under equity-based compensation plans	(1,999)	$ 2	269	(2,270)
Net common stock issued under equity-based compensation plans, shares		75,000
Common stock repurchases	(40,350)	$ (15)		(40,335)
Common stock repurchases, shares		(506,000)
Distributions declared payable to non-controlling interest	(584)					(584)
Foreign currency translation adjustments	494				494
Ending Balance at Sep. 28, 2024	1,492,256	$ 1,592	579,685	924,408	(13,429)	0
Ending balance, shares at Sep. 28, 2024		57,384,000
Beginning Balance at Jun. 29, 2024	1,450,747	$ 1,598	574,365	889,837	(15,053)	0
Beginning balance, shares at Jun. 29, 2024		57,579,000
Net income	55,318			54,734		584
Equity-based compensation	5,123		5,123
Net common stock issued under equity-based compensation plans	169	$ 0	197	(28)
Net common stock issued under equity-based compensation plans, shares		19,000
Common stock repurchases	(20,141)	$ (6)		(20,135)
Common stock repurchases, shares		(214,000)
Distributions declared payable to non-controlling interest	(584)					(584)
Foreign currency translation adjustments	1,624				1,624
Ending Balance at Sep. 28, 2024	$ 1,492,256	$ 1,592	$ 579,685	$ 924,408	$ (13,429)	$ 0
Ending balance, shares at Sep. 28, 2024		57,384,000

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Sep. 28, 2024	Sep. 30, 2023	Sep. 28, 2024	Sep. 30, 2023
Pay vs Performance Disclosure
Net Income (Loss)	$ 54,734	$ 45,669	$ 100,528	$ 96,938

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Sep. 28, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Basis of Presentation and Business	6 Months Ended
Basis of Presentation and Business	Sep. 28, 2024
Accounting Policies [Abstract]
Basis of Presentation and Business	1. Basis of Presentation and Business Nature of Operations: The operations of Champion Homes, Inc., formerly known as Skyline Champion Corporation (the “Company”), consist of manufacturing, retail, construction services, and transportation activities. At September 28, 2024, the Company operated 43 manufacturing facilities throughout the United States (“U.S.”) and 5 manufacturing facilities in western Canada that primarily construct factory-built, timber-framed manufactured and modular houses that are sold primarily to independent retailers, builders/developers, and manufactured home community operators. The Company’s retail operations consist of 72 sales centers that sell manufactured houses to consumers across the U.S. The Company's construction services business provides installation and set-up services of factory-built homes. The Company’s transportation business engages independent owners/drivers to transport recreational vehicles throughout the U.S. and Canada and manufactured houses in certain regions of the U.S. Basis of Presentation: The accompanying unaudited condensed consolidated financial statements of the Company have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) for Quarterly Reports on Form 10-Q and Article 10 of SEC Regulation S-X. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with United States Generally Accepted Accounting Principles (“U.S. GAAP”) have been condensed or omitted pursuant to such rules and regulations. The condensed consolidated financial statements include the accounts of the Company and its majority-owned subsidiaries after elimination of intercompany balances and transactions. In the opinion of management, these statements include all normal recurring adjustments necessary to fairly state the Company’s consolidated results of operations, cash flows, and financial position. The Company has evaluated subsequent events after the balance sheet date through the date of the filing of this report with the SEC. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes to the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K, which was filed with the SEC on May 29, 2024 (the “Fiscal 2024 Annual Report”). The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and the accompanying notes thereto. Actual results could differ from those estimates. The condensed consolidated income statements, condensed consolidated statements of comprehensive income, and condensed consolidated statements of cash flows for the interim periods are not necessarily indicative of the results of operations or cash flows for the full year. The Company’s fiscal year is a 52- or 53-week period that ends on the Saturday nearest to March 31. The Company’s current fiscal year, “fiscal 2025,” will end on March 29, 2025 and will include 52 weeks. References to “fiscal 2024” refer to the Company’s fiscal year ended March 30, 2024. The three and six months ended September 28, 2024 and September 30, 2023 each included 13 weeks and 26 weeks, respectively. The Company’s allowance for credit losses on financial assets measured at amortized cost reflects management’s estimate of credit losses over the remaining expected life of such assets, measured primarily using historical experience, as well as current economic conditions and forecasts that affect the collectability of the reported amount. Expected credit losses for newly recognized financial assets, as well as changes to expected credit losses during the period, are recognized in earnings. Accounts receivable are reflected net of reserves of $1.7 million and $1.9 million at September 28, 2024 and March 30, 2024, respectively. Floor plan receivables consist primarily of amounts loaned by the Company through Triad Financial Services, Inc. ("Triad") to certain independent retailers for purchases of homes manufactured by the Company, of which $31.1 million and $18.1 million was outstanding at September 28, 2024 and March 30, 2024, respectively. Floor plan receivables are carried net of payments received and recorded at amortized cost. The Company intends to hold the floor plan receivables until maturity or payoff. These loans are serviced by Triad, to which we pay a servicing fee. Upon execution of the financing arrangement, the floor plan loans are generally payable at the earlier of the sale of the underlying home or two years from the origination date. Floor plan receivables are included in other current assets and other noncurrent assets in the accompanying Condensed Consolidated Balance Sheets. The floor plan receivables are collateralized by the related homes, mitigating loss exposure. The Company and Triad evaluate the credit worthiness of each independent retailer prior to credit approval, including reviewing the independent retailer’s payment history, financial condition, and the overall economic environment. The Company evaluates the risk of credit loss in aggregate on existing loans with similar terms, based on historic experience and current economic conditions, as well as individual retailers with past due balances or other indications of heightened credit risk. The allowance for credit losses related to floor plan receivables was not material as of September 28, 2024 or March 30, 2024. Loans are considered past due if any required interest or curtailment payment remains unpaid 30 days after the due date. Receivables are placed on non-performing status if any interest or installment payments are past due over 90 days. Loans are placed on nonaccrual status when interest payments are past due over 90 days. At September 28, 2024, there were no floor plan receivables on nonaccrual status and the weighted-average age of the floor plan receivables was six months. Interest income from floor plan receivables is recognized on an accrual basis and is included in interest income in the accompanying Condensed Consolidated Income Statements. Interest income from floor plan receivables for the three months ended September 28, 2024 and September 30, 2023 was $0.6 million and $0.3 million, respectively. Interest income from floor plan receivables for the six months ended September 28, 2024 and September 30, 2023 was $1.1 million and $0.6 million, respectively. Recently issued accounting pronouncements: In November 2023, the FASB issued Accounting Standards Update ("ASU") 2023-07, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures", which expands disclosures about a public entity’s reportable segments and requires more enhanced information about a reportable segment’s expenses, interim segment profit or loss, and how a public entity’s chief operating decision maker uses reported segment profit or loss information in assessing segment performance and allocating resources. The update will be effective for annual periods beginning after December 15, 2023 (fiscal 2025). We are assessing the effect of this update on our consolidated financial statement disclosures. In December 2023, the FASB issued ASU 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures", which expands disclosures in an entity’s income tax rate reconciliation table and regarding cash taxes paid both in the U.S. and foreign jurisdictions. The update will be effective for annual periods beginning after December 15, 2024 (fiscal 2026). We are assessing the effect of this update on our consolidated financial statement disclosures.

Business Combinations

6 Months Ended

Sep. 28, 2024

Business Combinations [Abstract]

Business Combinations

2. Business Combinations

Regional Homes Acquisition

On October 13, 2023, the Company acquired all of the outstanding equity interests in Regional Enterprises, LLC and related companies (collectively, "Regional Homes") for total purchase consideration of $316.9 million, net of assumed indebtedness and working capital adjustments. The purchase consideration consisted of net cash of $279.5 million, the issuance of 455,098 shares of common stock equal to approximately $27.9 million, and contingent consideration with an estimated fair value of $5.9 million. The contingent consideration is related to an earnout provision in the event certain conditions are met per the terms of the purchase agreement, with a maximum earnout amount of $25.0 million. The initial fair value of the earnout was established using a Monte Carlo simulation method and the resulting liability is recorded in other liabilities in the accompanying Condensed Consolidated Balance Sheets. In the first quarter of fiscal 2025, the method and timing of measuring the earnout was amended, which resulted in a charge of $7.9 million which is reflected in selling, general, and administrative expense in the accompanying Condensed Consolidated Income Statements. The Company accounted for the acquisition as a business combination under the acquisition method of accounting provided by FASB ASC 805, Business Combinations ("ASC 805"). As such, the purchase price was allocated to the net assets acquired, inclusive of intangible assets, with the excess fair value recorded to goodwill. The purchase price allocation is based upon preliminary valuation information available to determine the fair value of certain assets and liabilities, including goodwill, and is subject to change as additional information is obtained about the facts and circumstances that existed at the valuation date. The Company expects to finalize the fair values of the assets acquired and liabilities assumed during the one-year measurement period.

The following table presents the consideration transferred and the purchase price allocation:


Description		Amount
Fair value of consideration transferred
Fair value of Champion Homes, Inc. common stock issued as consideration (455,098 shares at $61.20)		$	27,852
Cash consideration, net of cash acquired			279,545
Working capital adjustment			3,644
Estimated earn out consideration			5,904
Total consideration		$	316,945
Preliminary purchase price allocations:
Trade accounts receivable			16,300
Inventories			138,933
Other current assets			3,002
Property, plant, and equipment, net			86,174
Amortizable intangible assets, net			41,800
Other noncurrent assets			10,640
Floor plan payable			(75,916	)
Accounts payable			(14,427	)
Other current liabilities			(35,662	)
Long-term debt			(12,233	)
Other liabilities			(3,065	)
Identifiable net assets acquired			155,546
Goodwill			161,399
Total purchase price		$	316,945

Trade accounts receivable, other assets, floor plan and accounts payable, long-term debt and other liabilities are generally stated at historical carrying values as they approximate fair value. Retail inventories are reflected at manufacturer wholesale prices. Intangible assets include $16.9 million in customer relationships and $24.9 million in trade names and are based on an independent appraisal. The fair value of customer relationships was determined using the multi-period excess earnings method and fair value of the trade name was determined using the relief-from-royalty method. The Company estimated that each intangible asset has a weighted average useful life of ten years from the acquisition date. Fair value estimates of property, plant, and equipment were based on independent appraisals, giving consideration to the highest and best use of the assets. Key assumptions used in the appraisals were drawn from a combination of market, cost, and sales comparison approaches, as appropriate. Level 3 fair value estimates of $86.2 million related to property, plant, and equipment and $41.8 million related to intangible assets were recorded in the accompanying consolidated balance sheet as of the acquisition date. For further information on acquired assets measured at fair value, see Note 5, Goodwill, Intangible Assets and Cloud Computing Arrangements.

The acquisition of Regional Homes was a taxable business combination. Therefore, the Company’s tax basis in the assets acquired and the liabilities assumed approximate the respective fair values at the acquisition date.

Inventories, Net

6 Months Ended

Sep. 28, 2024

Inventory Disclosure [Abstract]

Inventories, Net

3. Inventories, net

The components of inventory, net of reserves for obsolete inventory, were as follows:


(Dollars in thousands)		September 28, 2024				March 30, 2024
Raw materials		$	102,445			$	101,429
Work in process			24,452				23,436
Finished goods and other			198,637				193,872
Total inventories, net		$	325,534			$	318,737

At September 28, 2024 and March 30, 2024, reserves for obsolete inventory were $10.2 million and $10.1 million, respectively.

Property, Plant, and Equipment

6 Months Ended

Sep. 28, 2024

Property, Plant and Equipment [Abstract]

Property, Plant, and Equipment

4. Property, Plant, and Equipment

Property, plant, and equipment are stated at cost. Depreciation is calculated primarily on a straight-line basis, generally over the following estimated useful lives: land improvements – 3 to 10 years; buildings and improvements – 8 to 25 years; and vehicles and machinery and equipment – 3 to 8 years. Depreciation expense for the three months ended September 28, 2024 and September 30, 2023 was $6.5 million and $4.7 million, respectively. Depreciation expense for the six months ended September 28, 2024 and September 30, 2023 was $14.2 million and $9.3 million, respectively.

The components of property, plant, and equipment were as follows:


(Dollars in thousands)		September 28, 2024				March 30, 2024
Land and improvements		$	75,004			$	72,188
Buildings and improvements			192,169				183,109
Machinery and equipment			154,384				142,870
Construction in progress			21,403				20,469
Property, plant, and equipment, at cost			442,960				418,636
Less: accumulated depreciation			(142,120	)			(127,706	)
Property, plant, and equipment, net		$	300,840			$	290,930

Goodwill, Intangible Assets, and Cloud Computing Arrangements

6 Months Ended

Sep. 28, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill, Intangible Assets, and Cloud Computing Arrangements

5. Goodwill, Intangible Assets, and Cloud Computing Arrangements

Goodwill

Goodwill represents the excess of the cost of an acquired business over the fair value of the identifiable tangible and intangible assets acquired and liabilities assumed in a business combination. At both September 28, 2024 and March 30, 2024, the Company had goodwill of $358.0 million. Goodwill is allocated to reporting units included in the U.S. Factory-built Housing segment, which include the Company’s U.S. manufacturing and retail operations. At September 28, 2024, there were no accumulated impairment losses related to goodwill.

Intangible Assets

The components of amortizable intangible assets were as follows:


(Dollars in thousands)		September 28, 2024												March 30, 2024
		Customer Relationships & Other				Trade Names				Total				Customer Relationships & Other				Trade Names				Total
Gross carrying amount		$	82,928			$	46,402			$	129,330			$	82,909			$	46,393			$	129,302
Accumulated amortization			(43,562	)			(15,277	)			(58,839	)			(39,825	)			(13,108	)			(52,933	)
Amortizable intangibles, net		$	39,366			$	31,125			$	70,491			$	43,084			$	33,285			$	76,369

During the three months ended September 28, 2024 and September 30, 2023, amortization of intangible assets was $3.0 million and $2.1 million, respectively. During the six months ended September 28, 2024 and September 30, 2023, amortization of intangible assets was $5.9 million and $5.0 million, respectively.

Cloud Computing Arrangements

The Company capitalizes costs associated with the development of cloud computing arrangements in a manner consistent with internally developed software. At September 28, 2024 and March 30, 2024, the Company had capitalized cloud computing costs, net of amortization of $25.0 million and $25.7 million, respectively. Cloud computing costs are included in other noncurrent assets in the accompanying Condensed Consolidated Balance Sheets. Amortization of capitalized cloud computing costs for the three months ended September 28, 2024 and September 30, 2023 was $0.5 million and $0.2 million, respectively. Amortization of capitalized cloud computing costs for the six months ended September 28, 2024 and September 30, 2023 was $0.7 million and $0.4 million, respectively.

Investment in ECN Capital Corporation

6 Months Ended

Sep. 28, 2024

Investments, Debt and Equity Securities [Abstract]

Investment in ECN Capital Corporation

6. Investment in ECN Capital Corporation

In September 2023, the Company entered into a share subscription agreement with ECN Capital Corp. ("ECN") and made a $137.8 million equity investment in ECN on a private placement basis. The Company purchased 33.6 million common shares, representing approximately 12% of the total outstanding common shares of ECN, and 27.5 million mandatory convertible preferred shares (the “Preferred Shares”). The Preferred Shares receive cumulative cash dividends at an annual rate of 4.0%. Following the private placement, the Company owns approximately 19.9% of the voting shares of ECN. In connection with the share subscription agreement, the Company and Triad formed Champion Financing LLC ("Champion Financing"), a captive finance company that is 51% owned by the Company and 49% owned by Triad. The results of Champion Financing are included in the consolidated results of the Company on a three-month lag. Triad's 49% ownership interest is reflected as non-controlling interest in the Condensed Consolidated Income Statements.

The Company's interest in the common stock investment in ECN is accounted for under the equity method and the Company’s share of the earnings or losses of ECN are recorded on a three-month lag. For the three months ended September 28, 2024, the Company's share of ECN's earnings was $0.7 million. For the six months ended September 28, 2024, the Company's share of ECN's losses were $0.5 million. There were no earnings or losses recognized related to the equity method investment for the three and six months ended September 30, 2023. Dividends received on the investment in common stock of ECN are reflected as a reduction to the investment balance and are presented on the Condensed Consolidated Statements of Cash Flows using the nature of the distribution approach. At September 28, 2024, the investment in the common stock of ECN totaled $70.5 million, including $3.1 million of capitalized transaction costs, and is included in other noncurrent assets in the accompanying Condensed Consolidated Balance Sheets. The aggregate value of the Company’s investment in the common stock of ECN based on quoted market price of ECN’s common stock at September 28, 2024 was approximately $53.0 million. We assess our investment in ECN common stock for other than temporary impairment on a quarterly basis or when events or circumstances suggest that the carrying amount of the investment may be impaired. We do not consider the difference in the fair market value of ECN common stock and our investment balance to be other than temporary at September 28, 2024.

The Company's investment in the Preferred Shares is included in other noncurrent assets in the accompanying Condensed Consolidated Balance Sheets. The investment is measured using the measurement alternative for equity investments without a readily determinable fair value. The carrying amount of $64.5 million at September 28, 2024 represents the purchase price and capitalized transaction costs of $2.5 million. There have been no adjustments to the carrying amount or impairment of the investment. For the six months ended September 28, 2024, the Company has reflected dividend income of $1.2 million in other (income) on the accompanying Condensed Consolidated Income Statements from the investment in ECN Preferred Shares. There was no dividend income from the ECN Preferred Shares for the three months ended September 28, 2024 or for the three and six months ended September 30, 2023.

Triad, a related party through its parent ECN, provides loan servicing for the Company's floor plan receivables. The Company pays Triad a fee for servicing loans which was not material for the three and six months ended September 28, 2024 and September 30, 2023, respectively. Triad also provides floor plan financing of the Company's products to Company-owned and independent retailers. At September 28, 2024, the Company had floor plan payables due to Triad of $26.7 million. At September 28, 2024, the Company had repurchase commitments of $104.4 million on independent retailer floor plan loans outstanding with Triad.

Other Current Liabilities

6 Months Ended

Sep. 28, 2024

Other Liabilities Disclosure [Abstract]

Other Current Liabilities

7. Other Current Liabilities

The components of other current liabilities were as follows:


(Dollars in thousands)		September 28, 2024				March 30, 2024
Customer deposits		$	85,027			$	80,833
Accrued volume rebates			26,345				21,169
Accrued warranty obligations			43,995				39,176
Accrued compensation and payroll taxes			40,289				35,063
Accrued insurance			12,892				12,772
Accrued product liability - water intrusion			34,500				34,500
Other			25,398				23,982
Total other current liabilities		$	268,446			$	247,495

Accrued Warranty Obligations

6 Months Ended

Sep. 28, 2024

Guarantees and Product Warranties [Abstract]

Accrued Warranty Obligations

8. Accrued Warranty Obligations

Changes in the accrued warranty obligations were as follows:


		Three months ended									Six months ended
(Dollars in thousands)		September 28, 2024				September 30, 2023					September 28, 2024				September 30, 2023
Balance at beginning of period		$	54,111			$	35,090				$	50,869			$	35,961
Warranty expense			18,131				14,977					36,819				27,833
Cash warranty payments			(16,554	)			(12,705	)				(32,000	)			(26,432	)
Balance at end of period			55,688				37,362					55,688				37,362
Less: noncurrent portion in other long-term liabilities			(11,693	)			(7,385	)				(11,693	)			(7,385	)
Total current portion		$	43,995			$	29,977				$	43,995			$	29,977

Debt and Floor Plan Payable

6 Months Ended

Sep. 28, 2024

Debt Disclosure [Abstract]

Debt and Floor Plan Payable

9. Debt and Floor Plan Payable

Long-term debt consisted of the following:


(Dollars in thousands)		September 28, 2024				March 30, 2024
Obligations under industrial revenue bonds due 2029		$	12,430			$	12,430
Notes payable to Romeo Juliet, LLC, due 2026			5,314				5,314
Notes payable to Romeo Juliet, LLC, due 2039			2,036				2,036
Note payable to United Bank, due 2026			4,910				4,889
Revolving credit facility maturing in 2026			—				—
Total long-term debt		$	24,690			$	24,669

On July 7, 2021, the Company entered into an Amended and Restated Credit Agreement with a syndicate of banks that provides for a revolving credit facility of up to $200.0 million, including a $45.0 million letter of credit sub-facility ("Amended Credit Agreement"). The Amended Credit Agreement replaced the Company's previously existing $100.0 million revolving credit facility. The Amended Credit Agreement allows the Company to draw down, repay and re-draw loans on the available funds during the term, subject to certain terms and conditions, matures in July 2026, and has no scheduled amortization.

On May 18, 2023, the Company further amended the Amended Credit Agreement, which removed references to the London Interbank Offer Rate ("LIBOR") and clarified language pertaining to the Secured Overnight Financing Rate ("SOFR") in regards to the interest rate on borrowings. The interest rate on borrowings under the Amended Credit Agreement is based on SOFR plus a SOFR adjustment, plus an interest rate spread. The interest rate spread adjusts based on the consolidated total net leverage of the Company from a high of 1.875% when the consolidated total net leverage ratio is equal to or greater than 2.25:1.00, to a low of 1.125% when the consolidated total net leverage ratio is below 0.50:1.00. Alternatively for same day borrowings, the interest rate is based on an Alternative Base Rate ("ABR") plus an interest rate spread that ranges from a high of 0.875% to a low of 0.125% based on the consolidated total net leverage ratio. In addition, the Company is obligated to pay an unused line fee ranging between 0.15% and 0.3% depending on the consolidated total net leverage ratio, in respect of unused commitments under the Amended Credit Agreement. At September 28, 2024, the interest rate under the Amended Credit Agreement was 6.07% and letters of credit issued under the Amended Credit Agreement totaled $31.5 million. Available borrowing capacity under the Amended Credit Agreement as of September 28, 2024 was $168.5 million.

The Amended Credit Agreement contains covenants that restrict the amount of additional debt, liens and certain payments, including equity buy-backs, investments, dispositions, mergers and consolidations, among other restrictions as defined. The Company was in compliance with all covenants of the Amended Credit Agreement as of September 28, 2024.

Obligations under industrial revenue bonds are supported by letters of credit and bear interest based on a municipal bond index rate. The weighted-average interest rate at September 28, 2024, including related costs and fees, was 4.75%. The industrial revenue bonds require lump-sum payments of principal upon maturity in 2029 and are secured by the assets of certain manufacturing facilities.

As part of the acquisition of Regional Homes, the Company assumed notes payable to Romeo Juliet, LLC, a subsidiary of Wells Fargo Community Investment Holdings, Inc. ("WFC"). The weighted-average interest rate on those notes at September 28, 2024 was 5.42%. The notes are secured by certain assets of Regional Homes. In addition, the Company assumed a note payable to United Bank with an interest rate of 3.85% that is secured by a note receivable from HHB Investment Fund, LLC, a subsidiary of WFC.

Floor Plan Payable

The Company’s retail operations utilize floor plan financing to fund the purchase of manufactured homes for display or resale. At September 28, 2024 and March 30, 2024, the Company had outstanding borrowings on floor plan financing agreements of $86.0 million and $91.3 million, respectively. Total credit line capacity provided under the agreements was $223.0 million as of September 28, 2024. The weighted average interest rate on the floor plan payable was 7.25% at September 28, 2024. Borrowings are secured by the homes and are required to be repaid when the Company sells the related home to a customer.

Revenue Recognition

6 Months Ended

Sep. 28, 2024

Revenue from Contract with Customer [Abstract]

Revenue Recognition

10. Revenue Recognition

The following tables disaggregate the Company’s revenue by sales category:


		Three months ended September 28, 2024
(Dollars in thousands)		U.S. Factory-Built Housing				Canadian Factory-Built Housing				Corporate/ Other				Total
Manufacturing		$	378,506			$	22,234			$	—			$	400,740
Retail			208,621				—				—				208,621
Transportation/Other			—				—				7,516				7,516
Total		$	587,127			$	22,234			$	7,516			$	616,877

		Six months ended September 28, 2024
(Dollars in thousands)		U.S. Factory-Built Housing				Canadian Factory-Built Housing				Corporate/ Other				Total
Manufacturing		$	758,800			$	43,033			$	—			$	801,833
Retail			427,860				—				—				427,860
Transportation/Other			—				—				14,963				14,963
Total		$	1,186,660			$	43,033			$	14,963			$	1,244,656

		Three months ended September 30, 2023
(Dollars in thousands)		U.S. Factory-Built Housing				Canadian Factory-Built Housing				Corporate/ Other				Total
Manufacturing		$	351,997			$	29,256			$	—			$	381,253
Retail			76,135				—				—				76,135
Transportation			—				—				6,848				6,848
Total		$	428,132			$	29,256			$	6,848			$	464,236

		Six months ended September 30, 2023
(Dollars in thousands)		U.S. Factory-Built Housing				Canadian Factory-Built Housing				Corporate/ Other				Total
Manufacturing		$	697,254			$	55,376			$	—			$	752,630
Retail			159,663				—				—				159,663
Transportation			—				—				16,712				16,712
Total		$	856,917			$	55,376			$	16,712			$	929,005

Income Taxes

6 Months Ended

Sep. 28, 2024

Income Tax Disclosure [Abstract]

11. Income Taxes

For the three months ended September 28, 2024 and September 30, 2023, the Company recorded $15.4 million and $14.8 million of income tax expense and had an effective tax rate of 21.6% and 24.5%, respectively. For the six months ended September 28, 2024 and September 30, 2023, the Company recorded $29.1 million and $32.0 million of income tax expense and had an effective tax rate of 22.0% and 24.8% respectively.

The Company’s effective tax rate for the three and six months ended September 28, 2024 and September 30, 2023, differs from the federal statutory income tax rate of 21.0% due primarily to the effect of state and local income taxes, non-deductible expenses, tax credits, and results in foreign jurisdictions.

At September 28, 2024, the Company had no unrecognized tax benefits.

Earnings Per Share

6 Months Ended

Sep. 28, 2024

Earnings Per Share [Abstract]

Earnings Per Share

12. Earnings Per Share

Basic net income per share attributable to the Company was computed by dividing net income attributable to the Company by the average number of common shares outstanding during the period. Diluted earnings per share is calculated using our weighted-average outstanding common shares, including the dilutive effect of stock awards as determined under the treasury stock method.

The following table sets forth the computation of basic and diluted earnings per common share:


		Three months ended							Six months ended
(Dollars and shares in thousands, except per share data)		September 28, 2024				September 30, 2023				September 28, 2024				September 30, 2023
Numerator:
Net income attributable to Champion Homes, Inc.		$	54,734			$	45,669			$	100,528			$	96,938
Denominator:
Basic weighted-average shares outstanding			57,648				57,232				57,757				57,224
Dilutive securities			537				492				492				471
Diluted weighted-average shares outstanding			58,185				57,724				58,249				57,695

Basic net income per share		$	0.95			$	0.80			$	1.74			$	1.69
Diluted net income per share		$	0.94			$	0.79			$	1.73			$	1.68

Segment Information

6 Months Ended

Sep. 28, 2024

Segment Reporting [Abstract]

Segment Information

13. Segment Information

Financial results for the Company's reportable segments have been prepared using a management approach, which is consistent with the basis and manner in which financial information is evaluated by the Company's chief operating decision maker in allocating resources and in assessing performance. The Company’s chief operating decision maker, the Chief Executive Officer, evaluates the performance of the Company’s segments primarily based on net sales, before elimination of inter-company shipments, earnings before interest, taxes, depreciation, and amortization (“EBITDA”) and operating assets.

The Company operates in two reportable segments: (i) U.S. Factory-built Housing, which includes manufacturing and retail housing operations and (ii) Canadian Factory-built Housing. Corporate/Other includes the Company’s transportation operations, the Company's financing activities, corporate costs directly incurred for all segments and intersegment eliminations. Segments are generally determined by geography. Segment data includes intersegment revenues and corporate office costs that are directly and exclusively incurred for each segment. Total assets for Corporate/Other primarily include cash and certain U.S. deferred tax items not specifically allocated to another segment.

Selected financial information by reportable segment was as follows:


		Three months ended								Six months ended
(Dollars in thousands)		September 28, 2024				September 30, 2023				September 28, 2024				September 30, 2023
Net sales:
U.S. Factory-built Housing		$	587,127			$	428,132			$	1,186,660			$	856,917
Canadian Factory-built Housing			22,234				29,256				43,033				55,376
Corporate/Other			7,516				6,848				14,963				16,712
Consolidated net sales		$	616,877			$	464,236			$	1,244,656			$	929,005
Operating income:
U.S. Factory-built Housing EBITDA		$	88,448				64,752			$	167,469			$	138,985
Canadian Factory-built Housing EBITDA			2,979				5,763				5,858				10,527
Corporate/Other EBITDA			(15,943	)			(13,759	)			(31,967	)			(25,930	)
Other expense (income)			14				2,065				(1,205	)			2,065
Depreciation			(6,543	)			(4,700	)			(14,245	)			(9,333	)
Amortization			(2,968	)			(2,086	)			(5,878	)			(5,045	)
Equity in net loss of affiliates			691				—				2,034				—
Consolidated operating income		$	66,678			$	52,035			$	122,066			$	111,269
Depreciation:
U.S. Factory-built Housing		$	5,944			$	4,198			$	13,048			$	8,326
Canadian Factory-built Housing			448				356				885				712
Corporate/Other			151				146				312				295
Consolidated depreciation		$	6,543			$	4,700			$	14,245			$	9,333

Amortization of U.S. Factory-built Housing intangible assets:		$	2,968			$	2,086			$	5,878			$	5,045
Capital expenditures:
U.S. Factory-built Housing		$	12,465			$	11,743			$	21,992			$	21,421
Canadian Factory-built Housing			448				475				874				941
Corporate/Other			1,202				288				1,961				485
Consolidated capital expenditures		$	14,115			$	12,506			$	24,827			$	22,847

(Dollars in thousands)										September 28, 2024				March 30, 2024

Total Assets:
U.S. Factory-built Housing (1)										$	1,251,635			$	1,239,338
Canadian Factory-built Housing (1)											137,703				132,420
Corporate/Other (1)											638,334				551,583
Consolidated total assets										$	2,027,672			$	1,923,341

(1)

Deferred tax assets for the Canadian operations are reflected in the Canadian Factory-built Housing segment. U.S. deferred tax assets are presented in Corporate/Other because an allocation between segments is not practicable.

Commitments, Contingencies and Legal Proceedings

6 Months Ended

Sep. 28, 2024

Commitments and Contingencies Disclosure [Abstract]

Commitments, Contingencies and Legal Proceedings

14. Commitments, Contingencies, and Legal Proceedings

Repurchase Contingencies and Guarantees

The Company is contingently liable under terms of repurchase agreements with lending institutions that provide wholesale floor plan financing to retailers. These arrangements, which are customary in the manufactured housing industry, provide for the repurchase of products sold to retailers in the event of default by the retailer on its agreement to pay the financial institution. The risk of loss from these agreements is significantly reduced by the potential resale value of any products that are subject to repurchase and is spread over numerous retailers. The repurchase price is generally determined by the original sales price of the product less contractually defined curtailment payments. Based on these repurchase agreements and our historical loss experience, we established an associated loss reserve which was $1.7 million at September 28, 2024 and $1.8 million at March 30, 2024, respectively. Excluding the resale value of the homes, the contingent repurchase obligation as of September 28, 2024 was estimated to be $254.9 million. Losses incurred on homes repurchased were immaterial during the three and six months ended September 28, 2024 and September 30, 2023.

At September 28, 2024, the Company was contingently obligated for $31.5 million under letters of credit, consisting of $12.7 million to support long-term debt, $18.5 million to support the casualty insurance program, and $0.3 million to support bonding agreements. The letters of credit are issued from a sub-facility of the Amended Credit Agreement. The Company was also contingently obligated for $19.1 million under surety bonds, generally to support performance on long-term construction contracts and license and service bonding requirements.

In the normal course of business, the Company’s former subsidiaries that operated in the United Kingdom historically provided certain guarantees to two customers. Those guarantees provide contractual liability for proven construction defects up to 12 years from the date of delivery of certain products. The guarantees remain a contingent liability of the Company which declines over time through October 2027. As of the date of this report, the Company expects few, if any, claims to be reported under the terms of the guarantees.

Product Liability - Water Intrusion

The Company has received consumer complaints for damages related to water intrusion in homes built in one of its manufacturing facilities prior to fiscal 2022. The Company has investigated, and believes, the cause of the damage is the result of materials that did not perform in accordance with the manufacturer's contractual obligations. The Company has identified certain homes constructed over that period that may be affected. Based on the results of ongoing investigation and repair efforts, the Company has developed and HUD has approved a remediation plan under Subpart I of the HUD code. The plan calls for inspection and repair of affected homes if there is evidence of damage, or procedures to mitigate the opportunity for future damage. As a result of the proposal, the Company recorded charges to execute the remediation plan of $34.5 million during the fourth quarter of fiscal 2024. The Company estimated the charges by establishing a range of total expected costs determined by an actuary using a Monte Carlo simulation. The analysis resulted in a range of losses between $34.5 million and $85.0 million. The Company was not able to determine a value in the range that was more likely than any other value, and as prescribed by U.S. GAAP, recorded the charge for remediation based on the low end of the range of potential losses. The Company is monitoring the results of the inspection and repair activities, and may revise the amount of the estimated liability, which could result in an increase or decrease in the estimated liability in future periods. The liability is included in other current liabilities in the accompanying Condensed Consolidated Balance Sheets.

Based on the Company's investigation into the cause of the water intrusion, including third-party testing of the material at issue, the Company believes it is possible that it will recover some or all of the estimated remediation costs. The Company will attempt to recover those costs from the manufacturer of the material, the distributor of the material, their related insurance providers or from the Company's insurance providers. However, the Company is unable to record an offset for any estimated costs at this time in accordance with U.S. GAAP.

Legal Proceedings

The Company has agreed to indemnify counterparties in the ordinary course of its business in agreements to acquire and sell business assets and in financing arrangements. The Company is subject to various legal proceedings and claims that arise in the ordinary course of its business. As of the date of this filing, the Company believes the ultimate liability with respect to these contingent obligations will not have, either individually or in the aggregate, a material adverse effect on the Company’s financial condition, results of operations, or cash flows.

Basis of Presentation and Business (Policies)	6 Months Ended
Basis of Presentation and Business (Policies)	Sep. 28, 2024
Accounting Policies [Abstract]
Nature of Operations	Nature of Operations: The operations of Champion Homes, Inc., formerly known as Skyline Champion Corporation (the “Company”), consist of manufacturing, retail, construction services, and transportation activities. At September 28, 2024, the Company operated 43 manufacturing facilities throughout the United States (“U.S.”) and 5 manufacturing facilities in western Canada that primarily construct factory-built, timber-framed manufactured and modular houses that are sold primarily to independent retailers, builders/developers, and manufactured home community operators. The Company’s retail operations consist of 72 sales centers that sell manufactured houses to consumers across the U.S. The Company's construction services business provides installation and set-up services of factory-built homes. The Company’s transportation business engages independent owners/drivers to transport recreational vehicles throughout the U.S. and Canada and manufactured houses in certain regions of the U.S.
Basis of Presentation	Basis of Presentation: The accompanying unaudited condensed consolidated financial statements of the Company have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) for Quarterly Reports on Form 10-Q and Article 10 of SEC Regulation S-X. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with United States Generally Accepted Accounting Principles (“U.S. GAAP”) have been condensed or omitted pursuant to such rules and regulations. The condensed consolidated financial statements include the accounts of the Company and its majority-owned subsidiaries after elimination of intercompany balances and transactions. In the opinion of management, these statements include all normal recurring adjustments necessary to fairly state the Company’s consolidated results of operations, cash flows, and financial position. The Company has evaluated subsequent events after the balance sheet date through the date of the filing of this report with the SEC. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes to the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K, which was filed with the SEC on May 29, 2024 (the “Fiscal 2024 Annual Report”). The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and the accompanying notes thereto. Actual results could differ from those estimates. The condensed consolidated income statements, condensed consolidated statements of comprehensive income, and condensed consolidated statements of cash flows for the interim periods are not necessarily indicative of the results of operations or cash flows for the full year. The Company’s fiscal year is a 52- or 53-week period that ends on the Saturday nearest to March 31. The Company’s current fiscal year, “fiscal 2025,” will end on March 29, 2025 and will include 52 weeks. References to “fiscal 2024” refer to the Company’s fiscal year ended March 30, 2024. The three and six months ended September 28, 2024 and September 30, 2023 each included 13 weeks and 26 weeks, respectively. The Company’s allowance for credit losses on financial assets measured at amortized cost reflects management’s estimate of credit losses over the remaining expected life of such assets, measured primarily using historical experience, as well as current economic conditions and forecasts that affect the collectability of the reported amount. Expected credit losses for newly recognized financial assets, as well as changes to expected credit losses during the period, are recognized in earnings. Accounts receivable are reflected net of reserves of $1.7 million and $1.9 million at September 28, 2024 and March 30, 2024, respectively. Floor plan receivables consist primarily of amounts loaned by the Company through Triad Financial Services, Inc. ("Triad") to certain independent retailers for purchases of homes manufactured by the Company, of which $31.1 million and $18.1 million was outstanding at September 28, 2024 and March 30, 2024, respectively. Floor plan receivables are carried net of payments received and recorded at amortized cost. The Company intends to hold the floor plan receivables until maturity or payoff. These loans are serviced by Triad, to which we pay a servicing fee. Upon execution of the financing arrangement, the floor plan loans are generally payable at the earlier of the sale of the underlying home or two years from the origination date. Floor plan receivables are included in other current assets and other noncurrent assets in the accompanying Condensed Consolidated Balance Sheets. The floor plan receivables are collateralized by the related homes, mitigating loss exposure. The Company and Triad evaluate the credit worthiness of each independent retailer prior to credit approval, including reviewing the independent retailer’s payment history, financial condition, and the overall economic environment. The Company evaluates the risk of credit loss in aggregate on existing loans with similar terms, based on historic experience and current economic conditions, as well as individual retailers with past due balances or other indications of heightened credit risk. The allowance for credit losses related to floor plan receivables was not material as of September 28, 2024 or March 30, 2024. Loans are considered past due if any required interest or curtailment payment remains unpaid 30 days after the due date. Receivables are placed on non-performing status if any interest or installment payments are past due over 90 days. Loans are placed on nonaccrual status when interest payments are past due over 90 days. At September 28, 2024, there were no floor plan receivables on nonaccrual status and the weighted-average age of the floor plan receivables was six months. Interest income from floor plan receivables is recognized on an accrual basis and is included in interest income in the accompanying Condensed Consolidated Income Statements. Interest income from floor plan receivables for the three months ended September 28, 2024 and September 30, 2023 was $0.6 million and $0.3 million, respectively. Interest income from floor plan receivables for the six months ended September 28, 2024 and September 30, 2023 was $1.1 million and $0.6 million, respectively.
Recently issued accounting pronouncements	Recently issued accounting pronouncements: In November 2023, the FASB issued Accounting Standards Update ("ASU") 2023-07, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures", which expands disclosures about a public entity’s reportable segments and requires more enhanced information about a reportable segment’s expenses, interim segment profit or loss, and how a public entity’s chief operating decision maker uses reported segment profit or loss information in assessing segment performance and allocating resources. The update will be effective for annual periods beginning after December 15, 2023 (fiscal 2025). We are assessing the effect of this update on our consolidated financial statement disclosures. In December 2023, the FASB issued ASU 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures", which expands disclosures in an entity’s income tax rate reconciliation table and regarding cash taxes paid both in the U.S. and foreign jurisdictions. The update will be effective for annual periods beginning after December 15, 2024 (fiscal 2026). We are assessing the effect of this update on our consolidated financial statement disclosures.

Business Combinations (Tables)

6 Months Ended

Sep. 28, 2024

Business Combinations [Abstract]

Schedule of Consideration Transferred and Purchase Price Preliminary Allocation on Assets and Liabilities

The following table presents the consideration transferred and the purchase price allocation:


Description		Amount
Fair value of consideration transferred
Fair value of Champion Homes, Inc. common stock issued as consideration (455,098 shares at $61.20)		$	27,852
Cash consideration, net of cash acquired			279,545
Working capital adjustment			3,644
Estimated earn out consideration			5,904
Total consideration		$	316,945
Preliminary purchase price allocations:
Trade accounts receivable			16,300
Inventories			138,933
Other current assets			3,002
Property, plant, and equipment, net			86,174
Amortizable intangible assets, net			41,800
Other noncurrent assets			10,640
Floor plan payable			(75,916	)
Accounts payable			(14,427	)
Other current liabilities			(35,662	)
Long-term debt			(12,233	)
Other liabilities			(3,065	)
Identifiable net assets acquired			155,546
Goodwill			161,399
Total purchase price		$	316,945

Inventories, Net (Tables)

6 Months Ended

Sep. 28, 2024

Inventory Disclosure [Abstract]

Summary of Components of Inventory, Net of Reserves for Obsolete Inventory

The components of inventory, net of reserves for obsolete inventory, were as follows:


(Dollars in thousands)		September 28, 2024				March 30, 2024
Raw materials		$	102,445			$	101,429
Work in process			24,452				23,436
Finished goods and other			198,637				193,872
Total inventories, net		$	325,534			$	318,737

Property, Plant, and Equipment (Tables)

6 Months Ended

Sep. 28, 2024

Property, Plant and Equipment [Abstract]

Summary of Components of Property, Plant, and Equipment

The components of property, plant, and equipment were as follows:


(Dollars in thousands)		September 28, 2024				March 30, 2024
Land and improvements		$	75,004			$	72,188
Buildings and improvements			192,169				183,109
Machinery and equipment			154,384				142,870
Construction in progress			21,403				20,469
Property, plant, and equipment, at cost			442,960				418,636
Less: accumulated depreciation			(142,120	)			(127,706	)
Property, plant, and equipment, net		$	300,840			$	290,930

Goodwill, Intangible Assets, and Cloud Computing Arrangements (Tables)

6 Months Ended

Sep. 28, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Components of Amortizable Intangible Assets

The components of amortizable intangible assets were as follows:


(Dollars in thousands)		September 28, 2024												March 30, 2024
		Customer Relationships & Other				Trade Names				Total				Customer Relationships & Other				Trade Names				Total
Gross carrying amount		$	82,928			$	46,402			$	129,330			$	82,909			$	46,393			$	129,302
Accumulated amortization			(43,562	)			(15,277	)			(58,839	)			(39,825	)			(13,108	)			(52,933	)
Amortizable intangibles, net		$	39,366			$	31,125			$	70,491			$	43,084			$	33,285			$	76,369

Other Current Liabilities (Tables)

6 Months Ended

Sep. 28, 2024

Other Liabilities Disclosure [Abstract]

Components of Other Current Liabilities

The components of other current liabilities were as follows:


(Dollars in thousands)		September 28, 2024				March 30, 2024
Customer deposits		$	85,027			$	80,833
Accrued volume rebates			26,345				21,169
Accrued warranty obligations			43,995				39,176
Accrued compensation and payroll taxes			40,289				35,063
Accrued insurance			12,892				12,772
Accrued product liability - water intrusion			34,500				34,500
Other			25,398				23,982
Total other current liabilities		$	268,446			$	247,495

Accrued Warranty Obligations (Tables)

6 Months Ended

Sep. 28, 2024

Guarantees and Product Warranties [Abstract]

Summary of Changes in Accrued Warranty Obligations

Changes in the accrued warranty obligations were as follows:


		Three months ended									Six months ended
(Dollars in thousands)		September 28, 2024				September 30, 2023					September 28, 2024				September 30, 2023
Balance at beginning of period		$	54,111			$	35,090				$	50,869			$	35,961
Warranty expense			18,131				14,977					36,819				27,833
Cash warranty payments			(16,554	)			(12,705	)				(32,000	)			(26,432	)
Balance at end of period			55,688				37,362					55,688				37,362
Less: noncurrent portion in other long-term liabilities			(11,693	)			(7,385	)				(11,693	)			(7,385	)
Total current portion		$	43,995			$	29,977				$	43,995			$	29,977

Debt and Floor Plan Payable (Tables)

6 Months Ended

Sep. 28, 2024

Debt Disclosure [Abstract]

Summary of Long Term Debt

Long-term debt consisted of the following:


(Dollars in thousands)		September 28, 2024				March 30, 2024
Obligations under industrial revenue bonds due 2029		$	12,430			$	12,430
Notes payable to Romeo Juliet, LLC, due 2026			5,314				5,314
Notes payable to Romeo Juliet, LLC, due 2039			2,036				2,036
Note payable to United Bank, due 2026			4,910				4,889
Revolving credit facility maturing in 2026			—				—
Total long-term debt		$	24,690			$	24,669

Revenue Recognition (Tables)

6 Months Ended

Sep. 28, 2024

Revenue from Contract with Customer [Abstract]

Summary of Corporate Net Sales

The following tables disaggregate the Company’s revenue by sales category:


		Three months ended September 28, 2024
(Dollars in thousands)		U.S. Factory-Built Housing				Canadian Factory-Built Housing				Corporate/ Other				Total
Manufacturing		$	378,506			$	22,234			$	—			$	400,740
Retail			208,621				—				—				208,621
Transportation/Other			—				—				7,516				7,516
Total		$	587,127			$	22,234			$	7,516			$	616,877

		Six months ended September 28, 2024
(Dollars in thousands)		U.S. Factory-Built Housing				Canadian Factory-Built Housing				Corporate/ Other				Total
Manufacturing		$	758,800			$	43,033			$	—			$	801,833
Retail			427,860				—				—				427,860
Transportation/Other			—				—				14,963				14,963
Total		$	1,186,660			$	43,033			$	14,963			$	1,244,656

		Three months ended September 30, 2023
(Dollars in thousands)		U.S. Factory-Built Housing				Canadian Factory-Built Housing				Corporate/ Other				Total
Manufacturing		$	351,997			$	29,256			$	—			$	381,253
Retail			76,135				—				—				76,135
Transportation			—				—				6,848				6,848
Total		$	428,132			$	29,256			$	6,848			$	464,236

		Six months ended September 30, 2023
(Dollars in thousands)		U.S. Factory-Built Housing				Canadian Factory-Built Housing				Corporate/ Other				Total
Manufacturing		$	697,254			$	55,376			$	—			$	752,630
Retail			159,663				—				—				159,663
Transportation			—				—				16,712				16,712
Total		$	856,917			$	55,376			$	16,712			$	929,005

Earnings Per Share (Tables)

6 Months Ended

Sep. 28, 2024

Earnings Per Share [Abstract]

Computation of Basic and Diluted Earnings per Common Share

The following table sets forth the computation of basic and diluted earnings per common share:


		Three months ended							Six months ended
(Dollars and shares in thousands, except per share data)		September 28, 2024				September 30, 2023				September 28, 2024				September 30, 2023
Numerator:
Net income attributable to Champion Homes, Inc.		$	54,734			$	45,669			$	100,528			$	96,938
Denominator:
Basic weighted-average shares outstanding			57,648				57,232				57,757				57,224
Dilutive securities			537				492				492				471
Diluted weighted-average shares outstanding			58,185				57,724				58,249				57,695

Basic net income per share		$	0.95			$	0.80			$	1.74			$	1.69
Diluted net income per share		$	0.94			$	0.79			$	1.73			$	1.68

Segment Information (Tables)

6 Months Ended

Sep. 28, 2024

Segment Reporting [Abstract]

Schedule of Financial Information by Reportable Segments

Selected financial information by reportable segment was as follows:


		Three months ended								Six months ended
(Dollars in thousands)		September 28, 2024				September 30, 2023				September 28, 2024				September 30, 2023
Net sales:
U.S. Factory-built Housing		$	587,127			$	428,132			$	1,186,660			$	856,917
Canadian Factory-built Housing			22,234				29,256				43,033				55,376
Corporate/Other			7,516				6,848				14,963				16,712
Consolidated net sales		$	616,877			$	464,236			$	1,244,656			$	929,005
Operating income:
U.S. Factory-built Housing EBITDA		$	88,448				64,752			$	167,469			$	138,985
Canadian Factory-built Housing EBITDA			2,979				5,763				5,858				10,527
Corporate/Other EBITDA			(15,943	)			(13,759	)			(31,967	)			(25,930	)
Other expense (income)			14				2,065				(1,205	)			2,065
Depreciation			(6,543	)			(4,700	)			(14,245	)			(9,333	)
Amortization			(2,968	)			(2,086	)			(5,878	)			(5,045	)
Equity in net loss of affiliates			691				—				2,034				—
Consolidated operating income		$	66,678			$	52,035			$	122,066			$	111,269
Depreciation:
U.S. Factory-built Housing		$	5,944			$	4,198			$	13,048			$	8,326
Canadian Factory-built Housing			448				356				885				712
Corporate/Other			151				146				312				295
Consolidated depreciation		$	6,543			$	4,700			$	14,245			$	9,333

Amortization of U.S. Factory-built Housing intangible assets:		$	2,968			$	2,086			$	5,878			$	5,045
Capital expenditures:
U.S. Factory-built Housing		$	12,465			$	11,743			$	21,992			$	21,421
Canadian Factory-built Housing			448				475				874				941
Corporate/Other			1,202				288				1,961				485
Consolidated capital expenditures		$	14,115			$	12,506			$	24,827			$	22,847

(Dollars in thousands)										September 28, 2024				March 30, 2024

Total Assets:
U.S. Factory-built Housing (1)										$	1,251,635			$	1,239,338
Canadian Factory-built Housing (1)											137,703				132,420
Corporate/Other (1)											638,334				551,583
Consolidated total assets										$	2,027,672			$	1,923,341

(1)

Deferred tax assets for the Canadian operations are reflected in the Canadian Factory-built Housing segment. U.S. deferred tax assets are presented in Corporate/Other because an allocation between segments is not practicable.

Basis of Presentation and Business - Additional information (Detail) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Sep. 28, 2024 USD ($) Center	Sep. 30, 2023 USD ($)	Sep. 28, 2024 USD ($) Facility Center	Sep. 30, 2023 USD ($)	Mar. 30, 2024 USD ($)
Significant Accounting Policies [Line Items]
Trade accounts receivable, net	$ 74,755		$ 74,755		$ 64,632
Payments for loans receivable			31,100		18,100
Floor plan receivables on nonaccrual status			0
Interest income from floor plan receivables	600	$ 300	1,100	$ 600
Accounting Standards Update 2016-13 [Member] \| Cumulative Effect, Period of Adoption, Adjustment [Member]
Significant Accounting Policies [Line Items]
Trade accounts receivable, net	$ 1,700		$ 1,700		$ 1,900
U.S [Member]
Significant Accounting Policies [Line Items]
Number of manufacturing facilities \| Facility			43
Number of sales centers \| Center	72		72
Canada [Member]
Significant Accounting Policies [Line Items]
Number of manufacturing facilities \| Facility			5

Business Combinations - Additional information (Detail) - USD ($) shares in Thousands, $ in Thousands		3 Months Ended	6 Months Ended
	Oct. 13, 2023	Jun. 29, 2024	Sep. 28, 2024
Business Acquisition [Line Items]
Expense related to acquisition		$ 7,900
Regional Homes [Member]
Business Acquisition [Line Items]
Effective date of business acquisition			Oct. 13, 2023
Total purchase consideration	$ 316,900		$ 316,945
Cash portion of purchase consideration	$ 279,500		$ 279,545
Issuance of shares of common stock	455,098		455,098
Issuance of shares of common stock, Value	$ 27,900		$ 27,852
Contingent consideration	5,900
Estimated earn out consideration			$ 5,904
Estimated weighted average useful lives			10 years
Property, plant, and equipment			$ 86,174
Intangible assets			41,800
Regional Homes [Member] \| Level 3 Fair Value Estimates [Member]
Business Acquisition [Line Items]
Property, plant, and equipment			86,200
Intangible assets			41,800
Regional Homes [Member] \| Customer Relationships [Member]
Business Acquisition [Line Items]
Intangible assets			16,900
Regional Homes [Member] \| Trade Names [Member]
Business Acquisition [Line Items]
Intangible assets			$ 24,900
Regional Homes [Member] \| Maximum [Member]
Business Acquisition [Line Items]
Estimated earn out consideration	$ 25,000

Business Combinations - Schedule of Consideration Transferred and Purchase Price Preliminary Allocation on Assets and Liabilities (Detail) - USD ($) $ in Thousands		6 Months Ended
	Oct. 13, 2023	Sep. 28, 2024	Mar. 30, 2024
Preliminary purchase price allocations:
Goodwill		$ 357,973	$ 357,973
Regional Homes [Member]
Fair value of consideration transferred
Fair value of Champion Homes, Inc. common stock issued as consideration (455,098 shares at $61.20)	$ 27,900	27,852
Cash consideration, net of cash acquired	279,500	279,545
Working capital adjustment		3,644
Estimated earn out consideration		5,904
Total consideration	$ 316,900	316,945
Preliminary purchase price allocations:
Trade accounts receivable		16,300
Inventories		138,933
Other current assets		3,002
Property, plant, and equipment, net		86,174
Amortizable intangible assets, net		41,800
Other noncurrent assets		10,640
Floor plan payable		(75,916)
Accounts payable		(14,427)
Other current liabilities		(35,662)
Long-term debt		(12,233)
Other liabilities		(3,065)
Identifiable net assets acquired		155,546
Goodwill		161,399
Total purchase price		$ 316,945

Business Combinations - Schedule of Purchase Price Preliminary Allocation on Assets and Liabilities (Detail) (Parenthetical) - Regional Homes [Member] - $ / shares shares in Thousands		6 Months Ended
	Oct. 13, 2023	Sep. 28, 2024
Business Acquisition [Line Items]
Fair value of Skyline Champion common stock issued as consideration, Shares	455,098	455,098
Fair value of Skyline Champion common stock issued as consideration, Per share		$ 61.2

Inventories, Net - Summary of Components of Inventory, Net of Reserves for Obsolete Inventory (Detail) - USD ($) $ in Thousands	Sep. 28, 2024	Mar. 30, 2024
Inventory Disclosure [Abstract]
Raw materials	$ 102,445	$ 101,429
Work in process	24,452	23,436
Finished goods and other	198,637	193,872
Total inventories, net	$ 325,534	$ 318,737

Inventories, Net - Additional Information (Detail) - USD ($) $ in Millions	Sep. 28, 2024	Mar. 30, 2024
Inventory Disclosure [Abstract]
Reserves for obsolete inventory	$ 10.2	$ 10.1

Property Plant, and Equipment - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Sep. 28, 2024	Sep. 30, 2023	Sep. 28, 2024	Sep. 30, 2023
Property, Plant and Equipment [Line Items]
Depreciation expense	$ 6.5	$ 4.7	$ 14.2	$ 9.3
Minimum [Member] \| Land and Improvements [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives of property, plant and equipment	3 years		3 years
Minimum [Member] \| Building and Improvements [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives of property, plant and equipment	8 years		8 years
Minimum [Member] \| Vehicles [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives of property, plant and equipment	3 years		3 years
Minimum [Member] \| Machinery and Equipment [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives of property, plant and equipment	3 years		3 years
Maximum [Member] \| Land and Improvements [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives of property, plant and equipment	10 years		10 years
Maximum [Member] \| Building and Improvements [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives of property, plant and equipment	25 years		25 years
Maximum [Member] \| Vehicles [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives of property, plant and equipment	8 years		8 years
Maximum [Member] \| Machinery and Equipment [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives of property, plant and equipment	8 years		8 years

Property Plant, and Equipment - Summary of Components of Property, Plant, and Equipment (Detail) - USD ($) $ in Thousands	Sep. 28, 2024	Mar. 30, 2024
Property, Plant and Equipment [Line Items]
Property, plant and equipment, at cost	$ 442,960	$ 418,636
Less accumulated depreciation	(142,120)	(127,706)
Property, plant, and equipment, net	300,840	290,930
Land and Improvements [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, at cost	75,004	72,188
Building and Improvements [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, at cost	192,169	183,109
Machinery and Equipment [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, at cost	154,384	142,870
Construction in Progress [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, at cost	$ 21,403	$ 20,469

Goodwill, Intangible Assets, and Cloud Computing Arrangements - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 28, 2024	Sep. 30, 2023	Sep. 28, 2024	Sep. 30, 2023	Mar. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	$ 357,973		$ 357,973		$ 357,973
Accumulated impairment losses	0		0
Amortization of intangible assets	3,000	$ 2,100	5,900	$ 5,000
Capitalized cloud computing costs	25,000		25,000		$ 25,700
Amortization of capitalized cloud computing costs	$ 500	$ 200	$ 700	$ 400

Goodwill, Intangible Assets, and Cloud Computing Arrangements - Components of Amortizable Intangible Assets (Detail) - USD ($) $ in Thousands	Sep. 28, 2024	Mar. 30, 2024
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	$ 129,330	$ 129,302
Accumulated amortization	(58,839)	(52,933)
Amortizable intangibles, net	70,491	76,369
Customer Relationships & Other [Member]
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	82,928	82,909
Accumulated amortization	(43,562)	(39,825)
Amortizable intangibles, net	39,366	43,084
Trade Names [Member]
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	46,402	46,393
Accumulated amortization	(15,277)	(13,108)
Amortizable intangibles, net	$ 31,125	$ 33,285

Investment in ECN Capital Corporation - Additional Information (Detail) - USD ($) $ in Thousands, shares in Millions	1 Months Ended	3 Months Ended		6 Months Ended
	Sep. 30, 2023	Sep. 28, 2024	Sep. 30, 2023	Sep. 28, 2024	Sep. 30, 2023	Mar. 30, 2024
Schedule of Equity Method Investments [Line Items]
Share of earnings (losses)		$ (691)	$ 0	$ (2,034)	$ 0
Investment in the common stock		1,592		1,592		$ 1,605
Carrying amount of preferred shares		64,500		64,500
Floor plan payable		85,978		85,978		$ 91,286
Preferred Stock [Member]
Schedule of Equity Method Investments [Line Items]
Aggregate cost of investments		2,500		2,500
ECN Capital Corp.
Schedule of Equity Method Investments [Line Items]
Equity investments in ECN	$ 137,800		$ 137,800		$ 137,800
Common shares purchased	33.6		33.6		33.6
Percentage of common stock outstanding	12.00%		12.00%		12.00%
Cash dividend on preferred Shares	4.00%
Voting shares	19.90%
Percentage of ownership	51.00%		51.00%		51.00%
Share of earnings (losses)		700		(500)
Investment in the common stock		70,500		70,500
Aggregate cost of investments		3,100		3,100
Aggregate value of investments		53,000		53,000
Dividend income				1,200
Commitments on retailer floor plan loans outstanding		104,400		104,400
ECN Capital Corp. \| Mandatory convertible preferred shares
Schedule of Equity Method Investments [Line Items]
Number of shares issued	27.5		27.5		27.5
Triad Financial Services, Inc
Schedule of Equity Method Investments [Line Items]
Percentage of ownership	49.00%		49.00%		49.00%
Floor plan payable		$ 26,700		$ 26,700

Other Current Liabilities - Components of Other Current Liabilities (Detail) - USD ($) $ in Thousands	Sep. 28, 2024	Mar. 30, 2024	Sep. 30, 2023
Other Liabilities Disclosure [Abstract]
Customer deposits	$ 85,027	$ 80,833
Accrued volume rebates	26,345	21,169
Accrued warranty obligations	43,995	39,176	$ 29,977
Accrued compensation and payroll taxes	40,289	35,063
Accrued insurance	12,892	12,772
Accrued product liability - water intrusion	34,500	34,500
Other	25,398	23,982
Total other current liabilities	$ 268,446	$ 247,495

Accrued Warranty Obligations - Summary of Changes in Accrued Warranty Obligations (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 28, 2024	Sep. 30, 2023	Sep. 28, 2024	Sep. 30, 2023	Mar. 30, 2024
Guarantees and Product Warranties [Abstract]
Balance at beginning of period	$ 54,111	$ 35,090	$ 50,869	$ 35,961
Warranty expense	18,131	14,977	36,819	27,833
Cash warranty payments	(16,554)	(12,705)	(32,000)	(26,432)
Balance at end of period	55,688	37,362	55,688	37,362
Less noncurrent portion in other long-term liabilities	(11,693)	(7,385)	(11,693)	(7,385)
Total current portion	$ 43,995	$ 29,977	$ 43,995	$ 29,977	$ 39,176

Debt and Floor Plan Payable - Summary of Long Term Debt (Detail) - USD ($) $ in Thousands	Sep. 28, 2024	Mar. 30, 2024
Debt Instrument [Line Items]
Total long-term debt	$ 24,690	$ 24,669
Obligations Under Industrial Revenue Bonds Due 2029 [Member]
Debt Instrument [Line Items]
Total long-term debt	12,430	12,430
Notes payable to Romeo Juliet, LLC, due 2026 [Member]
Debt Instrument [Line Items]
Total long-term debt	5,314	5,314
Notes payable to Romeo Juliet, LLC, due 2039 [Member]
Debt Instrument [Line Items]
Total long-term debt	2,036	2,036
Note payable to United Bank, due 2026 [Member]
Debt Instrument [Line Items]
Total long-term debt	4,910	4,889
Revolving Credit Facility Maturing in 2026 [Member]
Debt Instrument [Line Items]
Total long-term debt	$ 0	$ 0

Debt and Floor Plan Payable - Additional Information (Detail) $ in Millions		6 Months Ended
	May 18, 2023	Sep. 28, 2024 USD ($)	Mar. 30, 2024 USD ($)	Jul. 07, 2021 USD ($)	Jul. 03, 2021 USD ($)
Debt Instrument [Line Items]
Revolving credit facility, maturity month and year		2026-07
Obligations Under Industrial Revenue Bonds Due 2029 [Member]
Debt Instrument [Line Items]
Weighted-average interest rate		4.75%
Industrial revenue bonds maturity		2029
Notes payable to Romeo Juliet, LLC [Member]
Debt Instrument [Line Items]
Weighted-average interest rate		5.42%
Note Payable To United Bank [Member]
Debt Instrument [Line Items]
Weighted-average interest rate		3.85%
Floor Plan Financing Arrangements [Member]
Debt Instrument [Line Items]
Weighted-average interest rate		7.25%
Outstanding borrowings		$ 86.0	$ 91.3
Line of Credit Facility, description		Borrowings are secured by the homes and are required to be repaid when the Company sells the related home to a customer.
Credit Agreement [Member] \| Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Revolving credit facility				$ 200.0	$ 100.0
First lien leverage ratio	0.0225
Interest rate on borrowings		6.07%
Credit Agreement [Member] \| Revolving Credit Facility [Member] \| Consolidated Total Net Leverage Ratio Equal to Or Greater Than 2.25:1.00 [Member] \| SOFR [Member]
Debt Instrument [Line Items]
Basis spread on variable rate	1.875%
Credit Agreement [Member] \| Revolving Credit Facility [Member] \| Consolidated Total Net Leverage Ratio Equal to Or Greater Than 2.25:1.00 [Member] \| Base Rate [Member]
Debt Instrument [Line Items]
Basis spread on variable rate	0.875%
Credit Agreement [Member] \| Revolving Credit Facility [Member] \| Consolidated Total Net Leverage Below 0.50:1.00 [Member] \| SOFR [Member]
Debt Instrument [Line Items]
Basis spread on variable rate	1.125%
Credit Agreement [Member] \| Revolving Credit Facility [Member] \| Consolidated Total Net Leverage Below 0.50:1.00 [Member] \| Base Rate [Member]
Debt Instrument [Line Items]
Basis spread on variable rate	0.125%
Minimum [Member] \| Credit Agreement [Member] \| Revolving Credit Facility [Member] \| Consolidated Total Net Leverage [Member]
Debt Instrument [Line Items]
Unused line fee percentage	0.15%
Maximum [Member] \| Floor Plan Financing Arrangements [Member]
Debt Instrument [Line Items]
Revolving credit facility		$ 223.0
Maximum [Member] \| Credit Agreement [Member] \| Revolving Credit Facility [Member] \| Consolidated Total Net Leverage [Member]
Debt Instrument [Line Items]
Unused line fee percentage	0.30%
Letter of Credit [Member] \| Credit Agreement [Member]
Debt Instrument [Line Items]
Revolving credit facility				$ 45.0
Letters of credit issued		31.5
Available borrowings under Credit Agreement		$ 168.5

Revenue Recognition - Summary of Corporate Net Sales (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 28, 2024	Sep. 30, 2023	Sep. 28, 2024	Sep. 30, 2023
Disaggregation of Revenue [Line Items]
Consolidated Net Sales	$ 616,877	$ 464,236	$ 1,244,656	$ 929,005
Manufacturing [Member]
Disaggregation of Revenue [Line Items]
Consolidated Net Sales	400,740	381,253	801,833	752,630
Retail [Member]
Disaggregation of Revenue [Line Items]
Consolidated Net Sales	208,621	76,135	427,860	159,663
Transportation/Other [Member]
Disaggregation of Revenue [Line Items]
Consolidated Net Sales	7,516		14,963
Transportation [Member]
Disaggregation of Revenue [Line Items]
Consolidated Net Sales		6,848		16,712
U.S Factory-built Housing [Member]
Disaggregation of Revenue [Line Items]
Consolidated Net Sales	587,127	428,132	1,186,660	856,917
U.S Factory-built Housing [Member] \| Manufacturing [Member]
Disaggregation of Revenue [Line Items]
Consolidated Net Sales	378,506	351,997	758,800	697,254
U.S Factory-built Housing [Member] \| Retail [Member]
Disaggregation of Revenue [Line Items]
Consolidated Net Sales	208,621	76,135	427,860	159,663
Canadian Factory-built Housing [Member]
Disaggregation of Revenue [Line Items]
Consolidated Net Sales	22,234	29,256	43,033	55,376
Canadian Factory-built Housing [Member] \| Manufacturing [Member]
Disaggregation of Revenue [Line Items]
Consolidated Net Sales	22,234	29,256	43,033	55,376
Corporate Other [Member]
Disaggregation of Revenue [Line Items]
Consolidated Net Sales	7,516	6,848	14,963	16,712
Corporate Other [Member] \| Transportation/Other [Member]
Disaggregation of Revenue [Line Items]
Consolidated Net Sales	$ 7,516		$ 14,963
Corporate Other [Member] \| Transportation [Member]
Disaggregation of Revenue [Line Items]
Consolidated Net Sales		$ 6,848		$ 16,712

Income Taxes - Additional Information (Detail) - USD ($)	3 Months Ended		6 Months Ended
	Sep. 28, 2024	Sep. 30, 2023	Sep. 28, 2024	Sep. 30, 2023
Income Tax Contingency [Line Items]
Income tax expense	$ 15,392,000	$ 14,781,000	$ 29,111,000	$ 32,047,000
Effective tax rate	21.60%	24.50%	22.00%	24.80%
Statutory federal income tax rate	21.00%	21.00%	21.00%	21.00%
Unrecognized tax benefits	$ 0		$ 0

Earnings Per Share - Computation of Basic and Diluted Earnings Per Common Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 28, 2024	Sep. 30, 2023	Sep. 28, 2024	Sep. 30, 2023
Numerator:
Net income attributable to Champion Homes, Inc.	$ 54,734	$ 45,669	$ 100,528	$ 96,938
Denominator:
Basic weighted-average shares outstanding	57,648	57,232	57,757	57,224
Dilutive securities	537	492	492	471
Diluted weighted-average shares outstanding	58,185	57,724	58,249	57,695
Basic net income per share	$ 0.95	$ 0.8	$ 1.74	$ 1.69
Diluted net income per share	$ 0.94	$ 0.79	$ 1.73	$ 1.68

Segment Information - Additional Information (Detail)	6 Months Ended
Segment Information - Additional Information (Detail)	Sep. 28, 2024 Segment
Segment Reporting [Abstract]
Number of reportable segments	2

Segment Information - Schedule of Financial Information by Reportable Segments (Detail) - USD ($)
$ in Thousands

3 Months Ended

6 Months Ended

Sep. 28, 2024

Sep. 30, 2023

Sep. 28, 2024

Sep. 30, 2023

Mar. 30, 2024

Segment Reporting Information [Line Items]

$ 616,877

$ 464,236

$ 1,244,656

$ 929,005

Operating income

66,678

52,035

122,066

111,269

Other expense (income)

14

2,065

(1,205)

2,065

(6,543)

(4,700)

(14,245)

(9,333)

(2,968)

(2,086)

(5,878)

(5,045)

Equity in net loss of affiliates

691

0

2,034

0

Amortization of U.S. Factory-built Housing intangible assets

3,000

2,100

5,900

5,000

2,027,672

2,027,672

$ 1,923,341

U.S Factory-built Housing [Member]

Segment Reporting Information [Line Items]

587,127

428,132

1,186,660

856,917

Amortization of U.S. Factory-built Housing intangible assets

2,968

2,086

5,878

5,045

Canadian Factory-built Housing [Member]

Segment Reporting Information [Line Items]

22,234

29,256

43,033

55,376

Corporate/Other [Member]

Segment Reporting Information [Line Items]

7,516

6,848

14,963

16,712

^[1]

638,334

638,334

551,583

Operating Segments [Member] | U.S Factory-built Housing [Member]

Segment Reporting Information [Line Items]

587,127

428,132

1,186,660

856,917

Operating income

88,448

64,752

167,469

138,985

5,944

4,198

13,048

8,326

Capital expenditures

12,465

11,743

21,992

21,421

^[1]

1,251,635

1,251,635

1,239,338

Operating Segments [Member] | Canadian Factory-built Housing [Member]

Segment Reporting Information [Line Items]

22,234

29,256

43,033

55,376

Operating income

2,979

5,763

5,858

10,527

448

356

885

712

Capital expenditures

448

475

874

941

^[1]

137,703

137,703

132,420

Corporate, Non-Segment [Member]

Segment Reporting Information [Line Items]

Operating income

(15,943)

(13,759)

(31,967)

(25,930)

151

146

312

295

Capital expenditures

1,202

288

1,961

485

Segment Reconciling Items [Member]

Segment Reporting Information [Line Items]

616,877

464,236

1,244,656

929,005

Operating income

66,678

52,035

122,066

111,269

6,543

4,700

14,245

9,333

Capital expenditures

14,115

$ 12,506

24,827

$ 22,847

$ 2,027,672

$ 2,027,672

$ 1,923,341

[1]	Deferred tax assets for the Canadian operations are reflected in the Canadian Factory-built Housing segment. U.S. deferred tax assets are presented in Corporate/Other because an allocation between segments is not practicable.

Commitments, Contingencies and Legal Proceedings - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Mar. 30, 2024	Sep. 28, 2024
Commitment And Contingencies [Line Items]
Reserve for estimated losses under repurchase agreements	$ 1.8	$ 1.7
Contingent repurchase obligation		$ 254.9
Guarantor Obligation, Term		12 years
Loss contingency damages paid value	$ 34.5
Minimum [Member]
Commitment And Contingencies [Line Items]
Range of losses		$ 34.5
Maximum [Member]
Commitment And Contingencies [Line Items]
Range of losses		85.0
Letters of Credit [Member]
Commitment And Contingencies [Line Items]
Contingent obligation		31.5
Long-term Debt [Member]
Commitment And Contingencies [Line Items]
Contingent obligation		12.7
Casualty Insurance Program [Member]
Commitment And Contingencies [Line Items]
Contingent obligation		18.5
Bonding Agreements [Member]
Commitment And Contingencies [Line Items]
Contingent obligation		0.3
Surety Bond [Member]
Commitment And Contingencies [Line Items]
Contingent obligation		$ 19.1

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Champion Homes Inc News

Form SC 13G/A - Statement of Beneficial Ownership by Certain Investors: [Amend]
Thursday 14 November 2024 (5 days ago) • Edgar (US Regulatory)

The Neighborhood Village: Champion Homes Joins Effort to Create Innovative Village to Address Homelessness in Central California
Tuesday 5 November 2024 (2 weeks ago) • Business Wire

Form 10-Q - Quarterly report [Sections 13 or 15(d)]
Wednesday 30 October 2024 (3 weeks ago) • Edgar (US Regulatory)

Form 8-K - Current report
Tuesday 29 October 2024 (3 weeks ago) • Edgar (US Regulatory)

Champion Homes Announces Second Quarter Fiscal 2025 Results
Tuesday 29 October 2024 (3 weeks ago) • Business Wire

Form 8-K - Current report
Friday 11 October 2024 (1 month ago) • Edgar (US Regulatory)

Champion Homes Announces Second Quarter Fiscal Year 2025 Earnings Release Date and Conference Call
Wednesday 9 October 2024 (1 month ago) • Business Wire

Form 4 - Statement of changes in beneficial ownership of securities
Friday 13 September 2024 (2 months ago) • Edgar (US Regulatory)

Champion Homes and Quartz Properties Boosts Asheville Housing Availability with New Community
Thursday 12 September 2024 (2 months ago) • Business Wire

Form 144 - Report of proposed sale of securities
Wednesday 11 September 2024 (2 months ago) • Edgar (US Regulatory)

Form 4 - Statement of changes in beneficial ownership of securities
Saturday 7 September 2024 (2 months ago) • Edgar (US Regulatory)

Form SC 13D/A - General Statement of Acquisition of Beneficial Ownership: [Amend]
Saturday 7 September 2024 (2 months ago) • Edgar (US Regulatory)

More Champion Homes Inc News Articles

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