Skyline Champion Stock

Skyline Champion Corporation is a leading producer of factory-built housing in North America.

The company offers a leading portfolio of manufactured and modular homes, park model RVs, accessory dwelling units (ADUs) and modular buildings for the multi-family and hospitality sectors. The company’s facilities are strategically located to serve strong regions in the United States and western Canada.

The company designs and builds a range of manufactured and modular homes, park model RVs, ADUs, and commercial structures. With its award-winning product designs, the company seeks to meet the needs of its localized customers, while also providing them with an array of pre-designed options. The company’s leading brands are marketed and distributed through a network of independent and company-owned retailers, community operators, government agencies, and builder/developers. The company builds homes under some of the most well-known brand names in the factory-built housing industry, including Skyline Homes, Champion Home Builders, Genesis 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.

In addition to its core home building business, the company provides construction services to install and set-up factory-built homes; it operates a factory-direct manufactured home retail business, marketed under the Titan Factory Direct and Champion Homes Center brands, with 31 sales centers spanning the United States; and it operates Star Fleet Trucking, which provides transportation services to the manufactured housing and other industries from several dispatch locations across the United States.

Factory-Built Housing

A majority of the company’s manufactured products are constructed in accordance with the regulations and rules of the U.S. Department of Housing and Urban Development (HUD) and the National Manufactured Housing Construction and Safety Standards Act of 1974, as amended (HUD code). The company produces a broad range of manufactured and modular homes under a variety of brand names and in a variety of floor plans and price ranges. While most of the homes the company builds are single-family, multi-section, ranch-style homes, it also builds two-story and single-section homes, as well as multi-family units, such as town homes, apartments, duplexes, and triplexes. The single-family homes that the company manufactures generally range in size from 400 to 4,000 square feet and typically include two to four bedrooms, a living room or family room, a dining room, a kitchen and typically two full bathrooms. The company also builds park model RVs for resorts and campgrounds, ADUs for backyard or recreational living, and commercial modular structures.

The company regularly introduces homes with new floor plans, exterior designs and elevations, decors and features. The company’s corporate architecture, marketing, and engineering departments work with its manufacturing facilities to design homes that appeal to consumers’ changing tastes at appropriate price points for their respective markets. The company designs and builds homes with a traditional residential or site-built appearance through the use of, among other features, dormers and higher pitched roofs. The company offers its Genesis brand of homes which have features similar to site-built home amenities, such as porches and garages. These homes are designed to be eligible for financing programs with terms similar to traditional mortgages. The company is also very active in the design and construction of energy-efficient homes.

The primary components include lumber, plywood, OSB, drywall, steel, floor coverings, insulation, exterior siding (vinyl, composites, wood and metal), doors, windows, shingles, kitchen appliances, furnaces, plumbing and electrical fixtures and hardware.

The company constructs homes in indoor facilities using an assembly-line process employing approximately 100 to 200 production employees at each facility. Factory-built HUD code homes are constructed in one or more sections affixed to a steel support frame that allows the sections to be moved through the assembly line and transported upon sale. The sections of many of the modular homes the company produces are built on wooden floor systems and transported on carriers that are removed upon placement of the home at the home site. Each section or floor is assembled in stages, beginning with the construction of the frame and the floor, then adding the walls, ceiling and roof assembly, and other constructed and purchased components, and ending with a final quality control inspection.

The production schedules of the company’s homebuilding facilities are based upon customer orders. The company manages its production levels, capacity and workforce size based upon current market demands.

As a result, most of the retailers and builders/developers the company sells to are located within a 500-mile radius of its manufacturing plants. In addition to its traditional channels of distribution, the company is one of a limited number of manufactured homebuilders that have been approved for contracts with the Federal Emergency Management Agency (FEMA) and has historically provided housing assistance requirements following natural disasters and other housing emergencies.

The company offers a wide selection of manufactured and modular homes, as well as park model RVs at company-owned retail locations marketed under the Titan Factory Direct and Champion Homes Center brands. The company maintains its company-owned retail presence through 31 retail sales centers across the U.S. The company’s captive retail distribution enhances the reach of its factory-built housing products directly to the homebuyers.

Each of the company’s full-service retail sales centers has a sales office and a variety of model homes of various sizes, floor plans, features, and prices that are displayed in a residential setting with sidewalks and landscaping. Customers may purchase a home from an inventory of homes maintained at the location, including a model home, or may order a home that will be built to their specifications.

Logistics

The company operates a logistics business, Star Fleet Trucking, specializing in the transportation of manufactured homes and recreational vehicles from manufacturing facilities to retailers. Star Fleet’s delivery logistics are coordinated through dispatch terminals located throughout the U.S. Star Fleet has strong relationships with its customer base, which includes some of the largest manufactured housing companies (including the company’s own factory-built housing operations), and recreational vehicle manufacturers in the U.S.

Business Strategy

The company will continue to pursue opportunities by constructing quality-built, sustainable, and innovatively designed homes and other modular structures in an environmentally friendly factory setting. In connection with executing this business strategy, the company focuses on the following four initiatives increasing the operating capacity and profitability of its existing facilities; investing in its customers’ online digital experience; implementing production automation and enterprise-wide digital technology; and continuing a balanced organic and acquisition-based growth strategy.

Seasonality

The company typically experiences decreased home buyer traffic during holidays and popular vacation periods. Demand for its core single-family new home products typically peaks each spring and summer before declining in the winter, consistent with the overall housing industry.

Government Regulation

The company’s park model RVs are built in conformity with the applicable standards approved by the American National Standards Institute, a private, non-profit organization that administers and coordinates voluntary standards and conformity programs.

History

Skyline Champion Corporation was founded in 2010.