UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): November 5, 2018
SKYLINE CHAMPION CORPORATION
(Exact Name of Registrant as Specified in Charter)
Indiana | 001-04714 | 35-1038277 | ||
(State or Other Jurisdiction of Incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
P. O. Box 743, 2520 By-Pass Road
Elkhart, IN 46515
(Address of Principal Executive Offices) (Zip Code)
(574) 294-6521
(Registrants Telephone Number, Including Area Code)
Not Applicable
(Former Name or Former Address, If Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
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. ☐
Item 2.02 | Results of Operations and Financial Condition. |
On November 5, 2018, Skyline Champion Corporation issued a press release relating to its results of operations and financial condition for the quarter ended September 29, 2018. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.
The attached press release contains both U.S. Generally Accepted Accounting Principles (GAAP) and non-GAAP financial measures. Reconciliations between non-GAAP and GAAP financial measures are included in the attached press release. Skyline Champion Corporations management utilizes non-GAAP financial information to provide a useful measure of comparative operating performance of Skyline Champion Corporation. The non-GAAP financial measures are supplemental to and not a substitute for, measures of financial performance prepared in accordance with GAAP.
The press release, and the information set forth therein, is being furnished pursuant to Item 2.02 of this Current Report and shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934 (the Exchange Act) or otherwise subject to the liabilities of that Section. Nor shall such document be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, regardless of any general incorporation language in the filing unless specifically stated so therein.
Item 9.01. | Financial Statements and Exhibits. |
(d) Exhibits.
99.1 | Press Release issued by Skyline Champion Corporation on November 5, 2018. |
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 hereunto duly authorized.
Skyline Champion Corporation | ||||||
By: | /s/ Roger Scholten | |||||
Roger Scholten | ||||||
Senior Vice President, General Counsel and Secretary |
Date: November 5, 2018
Exhibit 99.1
SKYLINE CHAMPION ANNOUNCES SECOND QUARTER FISCAL 2019 RESULTS
ELKHART, Indiana, November 5, 2018 / Business Wire/ Skyline Champion Corporation (NYSE:SKY) (Skyline Champion), today announced financial results for its second quarter ended September 29, 2018 of the fiscal year ending March 30, 2019 (fiscal 2019).
On June 1, 2018, Skyline Corporation (Skyline) and Champion Enterprises Holdings, LLC (Champion), the parent company of Champion Home Builders, Inc., completed the previously announced combination of their operations (the Combination). The combined company operates as Skyline Champion Corporation and is traded on the New York Stock Exchange under the ticker symbol SKY. The second quarter of fiscal 2019 includes a full quarter of results for both the Skyline and Champion businesses while the six-month period ended September 29, 2018 includes only four months of results from the Skyline operations. Results for the three and six months ended September 30, 2017 of the fiscal year ended March 31, 2018 (fiscal 2018) include only the results of Champion.
Second Quarter Fiscal 2019 Highlights (compared to Second Quarter Fiscal 2018)
| Net sales increased 37% to $355.4 million |
| Total homes sold increased 26% to 5,350 |
| Gross profit as a percent of sales expanded by 70 basis points to 16.6% |
| Net loss of $77.0 million, compared to net income of $7.4 million, the year-over-year decline includes $85.8 million in non-cash, equity-based compensation expense |
| EPS was a net loss of $1.42; excluding non-recurring expenses, Adjusted EPS was net income of $0.23 |
| Adjusted EBITDA increased 58% to $23.8 million |
| Adjusted EBITDA margin expanded by 90 basis points to 6.7% |
The second quarter fiscal 2019 was another strong period for Skyline Champion as we continued to benefit from a healthy market and increased demand for our products, said Keith Anderson, Skyline Champions Chief Executive Officer. I am encouraged by the results we are seeing and the progress that we have made toward achieving synergies from the combined businesses. As we look forward, demand for manufactured homes remains healthy and Skyline Champion is strategically adding capacity to meet the needs of the market.
Second Quarter Fiscal 2019 Results
Net sales for the second quarter fiscal 2019 increased by 37% to $355.4 million compared to the prior-year period. The increase in net sales was driven by an increase in the number of homes sold as well as an increase in average selling price (ASP) per home sold. The number of U.S. factory-built homes sold by Skyline Champion in the second quarter fiscal 2019 increased by 29% to 5,038 with U.S. ASPs increasing by 16% to $60,900. Unit volume increased due to additional manufacturing capacity as well as plant operating improvements. Home sales prices increased primarily in order to offset rising material cost inflation while remaining price
competitive and continuing to offer affordable housing alternatives to our customers. The number of Canadian factory-built homes sold declined to 312 homes compared to 345 homes in the prior-year period with the decrease concentrated in the Alberta and Saskatchewan provinces where housing demand remains soft. Looking forward, overall demand for manufactured housing remains strong and Skyline Champion is well positioned with $252 million in backlog as of September 2018.
Gross profit increased by 43% to $59.0 million compared to the prior-year period. Gross profit was 16.6% of net sales for the second quarter fiscal 2019, a 70-basis point improvement compared to 15.9% in the second quarter fiscal 2018. Gross profit expansion was driven by an increase in the average selling price of homes sold in addition to plant operating improvements which led to increased output and an increased number of homes sold.
Selling, general and administrative expenses (SG&A) in the second quarter fiscal 2019 increased to $128.1 million from $27.8 million in the same period last year, primarily due to non-cash, equity-based compensation expense of $85.8 million resulting from the vesting of restricted shares issued to Champion employees and directors in connection with the Combination, which was triggered by the secondary offerings which closed during the second quarter of fiscal 2019. In addition, SG&A includes the Skyline operations for the entire second quarter of fiscal 2019 as well as continued integration and restructuring costs associated with the Combination.
The net loss for the second quarter fiscal 2019 was $77.0 million, compared to net income of $7.4 million during the same period from the prior year. The decline in net income was driven by an increase in SG&A expenses related to the Combination, equity compensation expense and higher tax expense. Skyline Champions effective income tax rate for the second quarter fiscal 2019 was impacted by the non-deductibility of certain transaction-related expenses and non-cash equity compensation.
Adjusted EBITDA for the second quarter fiscal 2019 increased by 58% to $23.8 million compared to the second quarter fiscal 2018. The increase was primarily driven by higher sales volumes, improved gross profit and leveraging of fixed costs. The Adjusted EBITDA margin expanded by 90 basis points to 6.7%.
As of September 29, 2018, Skyline Champion had $102.9 million of cash and cash equivalents and $32.1 million of unused borrowing capacity under its revolving credit facility.
Six Months Ended September 29, 2018 Financial Highlights
For the six months ended September 29, 2018 net sales were $677.7 million, which represents growth of 34%, or $173.6 million, compared to the six months ended September 30, 2017.
Gross profit increased $36.8 million or 48% to $114.2 million compared to $77.4 million for the prior year period. Gross profit was 16.8% of net sales for the six months ended September 29, 2018, compared to 15.3% in the six months ended September 30, 2017.
SG&A increased to $173.2 million for the six months ended September 29, 2018, compared to $54.6 million in the prior year period, driven by $93.9 million of non-cash, equity compensation expense, as well as transaction and integration related expenses and added capacity from the Skyline operations.
The net loss for the six months ended September 29, 2018 was $77.9 million, compared to net income of $12.7 million for the prior year period.
Adjusted EBITDA for the six months ended September 29, 2018 increased by 79% to $46.5 million compared $26.0 million for the six months ended September 30, 2017.
Conference Call and Webcast Information:
Skyline Champion management will host a conference call tomorrow, November 6, 2018, at 8:30 a.m. Eastern Time, to discuss Skyline Champions financial results.
Investors and other interested parties can listen to a webcast of the live conference call by logging onto the Investor Relations section of Skyline Champions website at https://ir.skylinechampion.com/overview/default.aspx. The online replay will be available on the same website immediately following the call.
The conference call can also be accessed by dialing (877) 407-4018 (domestic) or (201) 689-8471 (international). A telephonic replay will be available approximately two hours after the call by dialing (844) 512-2921, or for international callers, (412) 317-6671. The passcode for the live call and the replay is 13684417. The replay will be available until 11:59 P.M. Eastern Time on November 20, 2018.
About Skyline Champion Corporation:
Skyline Champion Corporation (NYSE: SKY) was formed in June 2018 as the result of the Combination of Skyline Corporation and the operating assets of Champion Enterprises Holdings, LLC. The combined company employs more than 6,800 people and is the largest independent factory-built housing company in North America. With more than 65 years of homebuilding experience and 36 manufacturing facilities throughout the United States and western Canada, Skyline Champion is well positioned with a leading portfolio of manufactured and modular homes, park-models and modular buildings for the multi-family, hospitality, senior and workforce housing sectors.
In addition to its core home building business, Skyline Champion operates a factory-direct retail business, Titan Factory Direct, with 21 retail locations spanning the southern United States, and Star Fleet Trucking, providing transportation services to the manufactured housing and other industries from 10 dispatch locations across the United States.
Skyline Champion builds homes under some of the most well know brand names in the factory-built housing industry including Skyline Homes, Champion Home Builders, Athens Park Models, Dutch Housing, Excel Homes, Homes of Merit, New Era, Redman Homes, Shore Park, Silvercrest, Titan Homes in the U.S. and Moduline and SRI Homes in western Canada.
Learn more about our products and services at the following company brand websites:
Manufactured and Modular Homes
www.championhomes.com
www.skylinehomes.com
Park Model RVs
www.athensparkmodelrvs.com
www.skylinepm.com
Modular Buildings
www.championcommercial.com
Retail Sales Centers
www.titanfactorydirect.com
Transportation Services
www.starfleettrucking.com
Presentation of Non-GAAP Financial Measures
In addition to the results provided in accordance with U.S. generally accepted accounting principles (GAAP) throughout this press release, Skyline Champion has provided non-GAAP financial measuresAdjusted EBITDA, Adjusted EBITDA margin and Adjusted EPSwhich present operating results on a basis adjusted for certain items. Skyline Champion uses these non-GAAP financial measures for business planning purposes and in measuring its performance relative to that of its competitors. Skyline Champion believes that these non-GAAP financial measures are useful financial metrics to assess its operating performance from period-to-period by excluding certain items that Skyline Champion believes are not representative of its core business. These non-GAAP financial measures are not intended to replace, and should not be considered superior to, the presentation of Skyline Champions financial results in accordance with U.S. GAAP.
Adjusted EBITDA
Skyline Champion defines Adjusted EBITDA as net income or loss plus (a) the provision for income taxes, (b) interest expense, net, (c) depreciation and amortization, (d) gain or loss from discontinued operations, (e) foreign currency gains and losses, (f) equity-based compensation, (g) restructuring charges and impairment of assets, and (h) other non-operating costs including those for the acquisition and integration or disposition of businesses 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. Skyline Champion believes that Adjusted EBITDA is commonly used by investors to evaluate its performance and that of its competitors. However, Skyline Champions use of Adjusted EBITDA may vary from that of others in our industry. Adjusted EBITDA is reconciled from the respective measure under U.S. GAAP in the tables below.
Forward-Looking Statements
Statements in this press release regarding the potential benefits created by the Combination, including potential synergies, the future performance of Skyline Champion, market demand and backlogs, and the availability of financing are intended to be covered by the safe harbor for forward-looking statements provided by the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally can be identified by use of words such as believe,
expect, future, anticipate, intend, plan, foresee, may, should, will, estimates, potential, continue, or other similar words or phrases. Similarly, statements that describe objectives, plans, or goals also are forward-looking statements. Such forward-looking statements involve inherent risks and uncertainties, many of which are difficult to predict and are generally beyond the control of Skyline Champion. Skyline Champion cautions readers that a number of important factors could cause actual results to differ materially from those expressed in, implied, or projected by such forward-looking statements. Risks and uncertainties include, but are not limited to: Skyline Champions inability to realize the expected benefits from the Combination, general economic conditions; availability of wholesale and retail financing; the health of the U.S. housing market as a whole; federal, state, and local regulations pertaining to the manufactured housing industry; the cyclical nature of the manufactured housing industry; general or seasonal weather conditions affecting sales; potential impact of natural disasters on sales and raw material costs; potential periodic inventory adjustments by independent retailers; interest rate levels; the impact of inflation; the impact of high or rising fuel costs; the cost of labor and raw materials; competitive pressures on pricing and promotional costs; Skyline Champions relationships with its shareholders, customers, and other stakeholders; catastrophic events impacting insurance costs; the availability of insurance coverage for various risks to Skyline Champion; market demographics; and managements ability to attract and retain executive officers and key personnel and other risks and uncertainties more fully described in Skyline Champions Form 10-Q for the first quarter fiscal 2019 previously filed with the Securities and Exchange Commission (SEC), as well as the other filings that Skyline Champion makes with the SEC.
If any of these risks or uncertainties materializes or if any of the assumptions underlying such forward-looking statements proves to be incorrect, the developments and future events concerning Skyline Champion set forth in this press release may differ materially from those expressed or implied by these forward-looking statements. You are cautioned not to place undue reliance on these statements, which speak only as of the date of this document. We anticipate that subsequent events and developments will cause our expectations and beliefs to change. Skyline Champion assumes no obligation to update such forward-looking statements to reflect events or circumstances after the date of this document or to reflect the occurrence of unanticipated events, unless obligated to do so under the federal securities laws.
Investor contact information:
Email: investorrelations@championhomes.com
Phone: (248) 614-8211
Source: Skyline Champion Corporation
SKYLINE CHAMPION CORPORATION
CONSOLIDATED BALANCE SHEETS
(Dollars and shares in thousands, except per share amounts)
September 29, 2018 |
March 31, 2018 |
|||||||
(unaudited) | ||||||||
ASSETS |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ | 102,873 | $ | 113,731 | ||||
Trade accounts receivable, net |
55,165 | 41,984 | ||||||
Inventories |
113,147 | 98,022 | ||||||
Other current assets |
11,738 | 9,367 | ||||||
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|
|
|
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Total current assets |
282,923 | 263,104 | ||||||
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|
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Property, plant and equipment, net |
111,950 | 67,960 | ||||||
Restricted cash |
| 22,885 | ||||||
Goodwill |
177,485 | 3,179 | ||||||
Amortizable intangible assets, net |
43,158 | 1,542 | ||||||
Deferred tax assets |
37,112 | 30,290 | ||||||
Other noncurrent assets |
12,784 | 6,438 | ||||||
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|
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Total assets |
$ | 665,412 | $ | 395,398 | ||||
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LIABILITIES AND EQUITY |
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Current liabilities: |
||||||||
Floor plan payable |
$ | 29,893 | $ | 29,825 | ||||
Short-term portion of debt |
| 404 | ||||||
Accounts payable |
46,021 | 36,773 | ||||||
Other current liabilities |
119,736 | 100,112 | ||||||
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Total current liabilities |
195,650 | 167,114 | ||||||
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Long-term liabilities: |
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Long-term debt |
59,330 | 58,927 | ||||||
Deferred tax liabilities |
3,459 | 3,294 | ||||||
Other long-term liabilities |
20,504 | 12,766 | ||||||
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|
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Total long-term liabilities |
83,293 | 74,987 | ||||||
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Contingent liabilities |
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Equity: |
||||||||
Common stock, $0.0277 par value, 115,000 shares authorized, 56,713 shares issued as of September 29, 2018 (including 464 shares subject to restriction) |
1,571 | | ||||||
Additional paid-in capital |
472,176 | | ||||||
Members contributed capital |
| 140,076 | ||||||
(Accumulated deficit) retained earnings |
(77,878 | ) | 22,514 | |||||
Accumulated other comprehensive loss |
(9,400 | ) | (9,293 | ) | ||||
Total equity |
386,469 | 153,297 | ||||||
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Total liabilities and equity |
$ | 665,412 | $ | 395,398 | ||||
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SKYLINE CHAMPION CORPORATION
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(Dollars and shares in thousands, except per share amounts)
(Unaudited)
Three Months Ended | Six Months Ended | |||||||||||||||
September 29, 2018 |
September 30, 2017 |
September 29, 2018 |
September 30, 2017 |
|||||||||||||
Net sales |
$ | 355,436 | $ | 259,963 | $ | 677,697 | $ | 504,065 | ||||||||
Cost of sales |
296,436 | 218,636 | 563,537 | 426,706 | ||||||||||||
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Gross profit |
59,000 | 41,327 | 114,160 | 77,359 | ||||||||||||
Selling, general, and administrative expenses |
128,069 | 27,763 | 173,157 | 54,562 | ||||||||||||
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Operating (loss) income |
(69,069 | ) | 13,564 | (58,997 | ) | 22,797 | ||||||||||
Interest expense, net |
827 | 1,065 | 1,899 | 2,165 | ||||||||||||
Other expense |
1,307 | 842 | 7,720 | 923 | ||||||||||||
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(Loss) income before income taxes |
(71,203 | ) | 11,657 | (68,616 | ) | 19,709 | ||||||||||
Income tax expense |
5,822 | 4,249 | 9,262 | 7,038 | ||||||||||||
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Net (loss) income |
$ | (77,025 | ) | $ | 7,408 | $ | (77,878 | ) | $ | 12,671 | ||||||
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Comprehensive (loss) income: |
||||||||||||||||
Net (loss) income |
$ | (77,025 | ) | $ | 7,408 | $ | (77,878 | ) | $ | 12,671 | ||||||
Foreign currency translation gain (loss) |
588 | 1,382 | (107 | ) | 2,199 | |||||||||||
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Comprehensive (loss) income |
$ | (76,437 | ) | $ | 8,790 | $ | (77,985 | ) | $ | 14,870 | ||||||
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Net (loss) income per share: |
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Basic |
$ | (1.42 | ) | $ | 0.16 | $ | (1.53 | ) | $ | 0.27 | ||||||
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Diluted |
$ | (1.42 | ) | $ | 0.16 | $ | (1.53 | ) | $ | 0.27 | ||||||
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SKYLINE CHAMPION CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in thousands)
(Unaudited)
Six Months Ended | ||||||||
September 29, 2018 |
September 30, 2017 |
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Cash flows from operating activities |
||||||||
Net (loss) income |
$ | (77,878 | ) | $ | 12,671 | |||
Adjustments to reconcile net (loss) income to net cash provided by operating activities |
||||||||
Depreciation |
5,275 | 3,860 | ||||||
Amortization of intangible assets |
1,683 | 238 | ||||||
Equity-based compensation |
93,927 | 300 | ||||||
Deferred income taxes |
3,025 | 2,023 | ||||||
Amortization of deferred financing fees |
285 | 30 | ||||||
Loss on disposal of property, plant and equipment |
3 | 11 | ||||||
Foreign currency transaction loss (gain) |
33 | (1,233 | ) | |||||
(Increase) decrease in assets net of business acquired |
||||||||
Accounts receivable |
398 | (11,331 | ) | |||||
Inventories |
3,852 | (8,806 | ) | |||||
Prepaid expenses |
(1,028 | ) | (2,434 | ) | ||||
Other assets |
504 | 1,900 | ||||||
Increase (decrease) in liabilities net of business acquired |
||||||||
Accounts payable |
(586 | ) | 5,430 | |||||
Accrued expenses |
447 | (115 | ) | |||||
Other liabilities |
(922 | ) | 1,157 | |||||
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|
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Net cash provided by operating activities |
29,018 | 3,701 | ||||||
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Cash flows from investing activities |
||||||||
Additions to property, plant, and equipment |
(4,684 | ) | (5,853 | ) | ||||
Cash assumed in business acquisition |
9,722 | | ||||||
Proceeds from disposal of property, plant and equipment |
11 | 395 | ||||||
Decrease in note receivable |
132 | 120 | ||||||
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Net cash provided by (used in) investing activities |
5,181 | (5,338 | ) | |||||
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Cash flows from financing activities |
||||||||
Borrowings on revolving credit facility |
46,900 | | ||||||
Payments on term loans and capital leases |
(46,898 | ) | (216 | ) | ||||
Changes in floor plan financing, net |
68 | 5,771 | ||||||
Payments for deferred financing fees |
(1,976 | ) | | |||||
Members capital distributions |
(65,277 | ) | | |||||
Stock option exercises |
1,615 | | ||||||
Tax payments for equity-based compensation |
(2,336 | ) | | |||||
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|
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Net cash (used in) provided by financing activities |
(67,904 | ) | 5,555 | |||||
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Effect of exchange rate changes on cash, cash equivalents and restricted cash |
(38 | ) | 1,693 | |||||
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Net increase (decrease) in cash, cash equivalents and restricted cash during the period |
(33,743 | ) | 5,611 | |||||
Cash, cash equivalents and restricted cash at beginning of period |
136,616 | 102,692 | ||||||
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Cash, cash equivalents and restricted cash at end of period |
$ | 102,873 | $ | 108,303 | ||||
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Supplemental disclosures of cash flow information |
||||||||
Cash paid for income taxes, net of refunds |
$ | 5,878 | $ | 4,298 | ||||
Cash paid for interest |
$ | 2,572 | $ | 2,568 |
SKYLINE CHAMPION CORPORATION
RECONCILIATION OF NET (LOSS) INCOME TO ADJUSTED EBITDA
(Dollars in thousands)
(Unaudited)
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||||
(Dollars in thousands) | September 29, 2018 |
September 30, 2017 |
Change | % Change |
September 29, 2018 |
September 30, 2017 |
Change | % Change |
||||||||||||||||||||||||
Net (loss) income |
$ | (77,025 | ) | $ | 7,408 | $ | (84,433 | ) | N/M | $ | (77,878 | ) | $ | 12,671 | $ | (90,549 | ) | N/M | ||||||||||||||
Income tax expense |
5,822 | 4,249 | 1,573 | 37.0 | % | 9,262 | 7,038 | 2,224 | 31.6 | % | ||||||||||||||||||||||
Interest expense, net |
827 | 1,065 | (238 | ) | (22.3 | %) | 1,899 | 2,165 | (266 | ) | (12.3 | %) | ||||||||||||||||||||
Depreciation and amortization |
4,047 | 2,130 | 1,918 | 90.1 | % | 6,958 | 4,098 | 2,860 | 69.8 | % | ||||||||||||||||||||||
Equity-based compensation |
85,839 | 150 | 85,689 | N/M | 93,927 | 300 | 93,627 | N/M | ||||||||||||||||||||||||
Foreign currency gain (loss) |
(34 | ) | (754 | ) | 720 | (95.5 | %) | 33 | (1,233 | ) | 1,266 | 102.7 | % | |||||||||||||||||||
Transaction costs |
492 | 804 | (312 | ) | (38.8 | %) | 6,905 | 894 | 6,011 | N/M | ||||||||||||||||||||||
Acquisition integration costs |
2,313 | | 2,313 | 100.0 | % | 3,502 | | 3,502 | 100.0 | % | ||||||||||||||||||||||
Equity offering costs |
816 | | 816 | 100.0 | % | 816 | | 816 | 100.0 | % | ||||||||||||||||||||||
Restructuring charges |
703 | | 703 | 100.0 | % | 1,111 | | 1,111 | 100.0 | % | ||||||||||||||||||||||
Other |
(1 | ) | 37 | (38 | ) | (102.7 | %) | (1 | ) | 44 | (45 | ) | (102.3 | %) | ||||||||||||||||||
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Adjusted EBITDA |
$ | 23,799 | $ | 15,089 | $ | 8,711 | 57.7 | % | $ | 46,534 | $ | 25,977 | $ | 20,557 | 79.1 | % | ||||||||||||||||
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N/M indicates that the calculated percentage is not meaningful.
SKYLINE CHAMPION CORPORATION
RECONCILIATION OF NET (LOSS) INCOME TO ADJUSTED EARNINGS PER SHARE
(Dollars and shares in thousands, except per share amounts)
(Unaudited)
Three Months Ended | Six Months Ended | |||||||||||||||
(Dollars and shares in thousands, except per share data) | September 29, 2018 |
September 30, 2017 |
September 29, 2018 |
September 30, 2017 |
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(unaudited) | (unaudited) | |||||||||||||||
Net (loss) income, as reported |
$ | (77,025 | ) | $ | 7,408 | $ | (77,878 | ) | $ | 12,671 | ||||||
Adjustments: |
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Combination related equity-based compensation |
85,839 | | 93,927 | | ||||||||||||
Transaction costs |
492 | 804 | 6,905 | 894 | ||||||||||||
Acquisition integration costs |
2,313 | | 3,502 | | ||||||||||||
Equity offering costs |
816 | | 816 | | ||||||||||||
Restructuring charges |
703 | | 1,111 | | ||||||||||||
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Adjusted net income |
13,138 | 8,212 | 28,383 | 13,565 | ||||||||||||
Less: Undistributed earnings allocated to participating securities |
526 | 514 | 1,385 | 863 | ||||||||||||
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Adjusted net income attributable to the Companys common shareholders |
$ | 12,612 | $ | 7,698 | $ | 26,998 | $ | 12,702 | ||||||||
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Average common shares outstanding |
54,105 | 44,525 | 50,747 | 44,457 | ||||||||||||
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Adjusted net income per share |
$ | 0.23 | $ | 0.17 | $ | 0.53 | $ | 0.29 | ||||||||
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