Champion Homes Inc (SKY) 2024 Q2 法說會逐字稿

Good morning, and welcome to Skyline Champion Corporation's Second Quarter Fiscal 2024 Earnings Call. The company issued an earnings press release yesterday after the close. I would like to remind everyone that today's press release and statements made during this call include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are subject to risks and uncertainties that could cause actual results to differ materially from the company's expectations and projections.

早安，歡迎參加 Skyline Champion Corporation 的 2024 財年第二季財報電話會議。該公司昨天收盤後發布了收益新聞稿。我想提醒大家，今天的新聞稿和本次電話會議期間發表的聲明包含1995 年《私人證券訴訟改革法案》含義內的前瞻性聲明。這些聲明存在風險和不確定性，可能導致實際結果存在重大差異來自公司的期望和預測。

Such risks and uncertainties include the factors set forth in the earnings release and in the company's filings with the Securities and Exchange Commission.

這些風險和不確定性包括收益報告和公司向美國證券交易委員會提交的文件中列出的因素。

Additionally, during today's call, the company will discuss non-GAAP measures, which it believes can be useful in evaluating its performance. A reconciliation of these measures can be found in the earnings release.

此外，在今天的電話會議上，該公司將討論非公認會計準則衡量標準，該公司認為這些衡量標準有助於評估其績效。這些措施的調整可以在收益報告中找到。

I would now like to turn the call over to Mark Yost, Skyline Champion's President and Chief Executive Officer. Please go ahead.

我現在想將電話轉給 Skyline Champion 總裁兼執行長 Mark Yost。請繼續。

Thank you for joining our earnings call, and good morning, everyone. I am pleased to be joined on this call by Laurie Hough, EVP and CFO.

感謝您參加我們的財報電話會議，大家早安。我很高興執行副總裁兼財務長 Laurie Hough 參加本次電話會議。

Today, I will briefly talk about our second quarter highlights and then provide an update on activities so far in our third quarter, include with though on the balance of the year.

今天，我將簡要討論我們第二季度的亮點，然後提供第三季度迄今為止活動的最新情況，包括今年剩餘時間的活動。

We saw healthy demand from end consumers through our captive and independent retail channels. Community rechannel softness continued as expected through the September quarter as our REIT partners worked through their backlog of existing new home inventory before placing new orders. This pause in the community ordering, combined with the absence of FEMA-related sales that were in the second quarter of last year drove our year-over-year declines in both production and revenue.

我們透過自營和獨立的零售管道看到了終端消費者的健康需求。由於我們的房地產投資信託基金合作夥伴在下新訂單之前處理了積壓的現有新房庫存，因此社區重新渠道的疲軟在整個 9 月季度持續如預期。社區訂購的暫停，加上去年第二季 FEMA 相關銷售的缺失，導致我們的產量和收入年減。

Backlog as of September 30 was $258 million compared to $260 million at the end of the June quarter as sequential quarterly unit increases were offset by decreases in price.

截至 9 月 30 日，積壓訂單為 2.58 億美元，而 6 月季度末的訂單量為 2.6 億美元，因為季度銷售的連續增長被價格下降所抵消。

Average lead times of 8 weeks have normalized within our historical range of 4 to 12 weeks and are consistent with lead times at the end of the first quarter.

8 週的平均交貨時間已在 4 至 12 週的歷史範圍內正常化，並且與第一季末的交貨時間一致。

Order volume during the quarter increased again sequentially, and we are seeing the expected decrease in home prices as consumers shift to smaller homes or homes with fewer features and options given the current interest rate environment.

本季的訂單量再次環比增加，鑑於當前的利率環境，隨著消費者轉向較小的房屋或功能和選擇較少的房屋，我們預計房價將下降。

Shifting to some of our strategic actions we have taken recently. On September 26, we closed our investment in ECN Capital and the establishment of our new captive finance company, Champion Financing. We believe that the formation of the captive finance companies will unlock home volume growth and bring value for our key stakeholders by providing broader and more attractive financing options and services to our customers. It will enable us to provide a comprehensive home-buying solution while becoming more deeply connected with our channel partner customers and the end consumers who purchase our homes.

轉向我們最近採取的一些策略行動。 9 月 26 日，我們完成了對 ECN Capital 的投資以及新的自保金融公司 Champion Financing 的成立。我們相信，自保金融公司的成立將為我們的客戶提供更廣泛、更具吸引力的融資選擇和服務，從而釋放房屋銷售的成長，並為我們的主要利害關係人帶來價值。這將使我們能夠提供全面的購屋解決方案，同時與我們的通路合作夥伴客戶和購買我們房屋的最終消費者建立更深入的連結。

The investment aligns with our longer-term strategic view on offering digital configuration and selling to home buyers. As we continue to ramp up Champion Financing, we believe the benefits will create a deeper connection with our dealers and end consumers.

這項投資符合我們向購屋者提供數位配置和銷售的長期策略觀點。隨著我們繼續增加冠軍融資的力度，我們相信其好處將與我們的經銷商和最終消費者建立更深的聯繫。

As we drive more volume to ECN, which will help to increase the diversity of capital sources that will accelerate the growth of the industry overall.

隨著我們推動 ECN 交易量的增加，這將有助於增加資本來源的多樣性，從而加速整個產業的成長。

Additionally, in October, we closed on the acquisition of Regional Homes, the fourth-largest hub manufacturer in the United States, the largest independent retailer and the company we have long admired. We are confident that the addition of Regional Homes to the Skyline Champion platform will allow us to accelerate profitable growth through the expansion of our retail and manufacturing distribution across the Southeastern United States.

此外，10 月份，我們完成了對 Regional Homes 的收購，這是美國第四大輪轂製造商、最大的獨立零售商，也是我們長期欽佩的公司。我們相信，將 Regional Homes 添加到 Skyline Champion 平台將使我們能夠透過擴大我們在美國東南部的零售和製造分銷來加速獲利成長。

Regional Homes has a customer-centric selling approach and is dedicated to providing an exceptional homebuying experience to its customers, which directly aligns with Skyline Champion's core value and our strategic initiatives to enhance the customer buying experience. In coordination with the closing of the acquisition, I'm excited to welcome Heath Jenkins for the Skyline Champion leadership team as he will serve as President of our captive retail operations. Heath brings years of industry retail experience and strong leadership capabilities, but most importantly, exhibits an unwavering commitment with the customer first.

Regional Homes 採取以客戶為中心的銷售方式，致力於為客戶提供卓越的購屋體驗，這與 Skyline Champion 的核心價值和我們增強客戶購買體驗的策略性舉措直接一致。在收購完成之際，我很高興歡迎 Heath Jenkins 加入 Skyline Champion 領導團隊，他將擔任我們自營零售業務的總裁。 Heath 擁有多年的行業零售經驗和強大的領導能力，但最重要的是，他展現了客戶至上的堅定承諾。

Altogether, these investments represent an exciting opportunity as we strengthen our efforts to support the long-term growth and solidify Skyline Champion's market positioning as a leading provider of attainable housing solutions, for which the market is in tremendous need of today.

總而言之，這些投資代表了一個令人興奮的機會，因為我們加強了支持長期增長的努力，並鞏固了Skyline Champion 作為可實現住房解決方案領先提供商的市場地位，而當今市場對此有著巨大的需求。

Moving to the third quarter outlook. We continue to see stronger order rates from our retail and builder developer channels. And while some REIT customers have returned to the market as others are continuing to destock as we move into our normal seasonally slower period, we expect the third quarter revenue to be up mid- to high single digits as a result. We have seen orders strengthen 5 quarters in a row by the growing needs from consumers for affordable housing. We anticipate this need for housing to be longer in duration than we initially anticipated due to recent indications from the Federal Reserve.

轉向第三季展望。我們繼續看到零售和建築開發商的通路訂單率更高。儘管隨著我們進入正常的季節性放緩時期，一些房地產投資信託基金客戶已重返市場，而其他房地產投資信託基金客戶則繼續去庫存，但我們預計第三季度收入將實現中高個位數增長。由於消費者對經濟適用房的需求不斷增長，我們看到訂單連續五個季度增長。由於聯準會最近的跡象，我們預計這種住房需求的持續時間將比我們最初預期的更長。

Additionally, this REIT is driving more regulatory tailwinds for our products that can give us increasing confidence in the long-term growth potential of our housing solution. With our long-term strategic investments into retail, financing, digital and automation, we are adding value and enhancing the buying experience for the end consumer and our channel partners.

此外，該房地產投資信託基金正在為我們的產品帶來更多的監管推動力，這可以讓我們對住房解決方案的長期成長潛力充滿信心。透過對零售、金融、數位化和自動化的長期策略性投資，我們正在為最終消費者和通路合作夥伴增加價值並增強購買體驗。

I will now turn the call over to Laurie to discuss our quarterly financials in more detail.

我現在將把電話轉給勞裡，更詳細地討論我們的季度財務狀況。

Thanks, Mark, and good morning, everyone. I'll begin by reviewing our financial results for the second quarter, followed by a discussion of our balance sheet and cash flow. I will also briefly discuss our near-term expectations.

謝謝，馬克，大家早安。我將首先回顧我們第二季度的財務業績，然後討論我們的資產負債表和現金流量。我還將簡要討論我們的近期期望。

During the second quarter, net sales decreased 42% to $464 million compared to the same quarter last year, in which we recognized $118 million in semi-unit sales. The decrease in net sales reflects a 15% year-over-year decline in average selling price per U.S. home due to semi-unit sales last year, which carry a higher ASP than our core product due to the complexity of build.

與去年同期相比，第二季的淨銷售額下降了 42%，至 4.64 億美元，其中我們確認了 1.18 億美元的半單位銷售額。淨銷售額的下降反映出，由於去年的半單元銷售，每套美國房屋的平均售價同比下降了 15%，由於建造的複雜性，半單元銷售的平均售價高於我們的核心產品。

In addition, our core product ASP declined due to product mix and the decrease in material surcharges. During the quarter, we sold 4,842 homes in the U.S. compared to 7,274 homes in the prior year period. U.S. home volume was down year-over-year due to the absence of FEMA-related sales and reduced production schedules to align with order rate. On a sequential basis, U.S. factory-built housing revenue was in line with the first quarter, consistent with expectations that demand would remain relatively flat.

此外，由於產品結構和材料附加費的下降，我們的核心產品平均售價下降。本季度，我們在美國售出了 4,842 套房屋，而去年同期為 7,274 套。由於缺乏與聯邦緊急事務管理局相關的銷售，以及為了與訂單率保持一致而減少的生產計劃，美國房屋銷售量較去年同期下降。從環比來看，美國工廠建造的住房收入與第一季持平，與需求將保持相對穩定的預期一致。

An increase in the number of homes sold was partially offset by a decrease in the average selling price per home as core customers opt for smaller and less optioned homes in an effort to maintain affordable monthly payments in the current interest rate environment.

售出房屋數量的增加被每套房屋平均售價的下降部分抵消，因為核心客戶選擇較小且選擇較少的房屋，以努力在當前利率環境下維持負擔得起的每月付款。

Capacity utilization decreased to 53% compared to 56% in the sequential first quarter of fiscal 2024. Capacity utilization is being adversely impacted by newly opened plant and a rightsizing of production rates at certain plants that serve end markets in which current order trends remain faster.

產能利用率從 2024 財年第一季的 56% 下降至 53%。產能利用率受到新開設工廠以及服務於終端市場（目前訂單趨勢仍然較快）的某些工廠產能調整的不利影響。

Canadian revenue decreased 25% to $29 million compared to the second quarter last year, primarily due to a 23% decline in the number of homes sold driven by slowing demand. The average home selling price in Canada decreased to $126,100 compared to $129,400 in the prior year period, primarily due to the fluctuation in the translation of the Canadian dollar to the U.S. dollar for the year-over-year period.

與去年第二季相比，加拿大收入下降 25% 至 2,900 萬加元，主要是由於需求放緩導致售出房屋數量下降 23%。加拿大的平均房屋售價從去年同期的 129,400 美元下降至 126,100 美元，主要是由於去年同期加幣兌美元匯率的波動。

Consolidated gross profit decreased 58% to $116 million in the second quarter and gross margins contracted by 890 basis points versus the prior year quarter. On a sequential basis, we saw gross margin declined 280 basis points. Our U.S. housing segment gross margins were 24.5% of segment net sales down 950 basis points from the same quarter last year, primarily due to higher margin semi-unit sales in the prior year quarter. As well as lower core product sales volumes and a mix shift to homes with less features and options, allowing the homeowner to hit their monthly payment price point given higher interest rates.

第二季綜合毛利下降 58%，至 1.16 億美元，毛利率較去年同期下降 890 個基點。環比來看，毛利率下降了 280 個基點。我們的美國房屋業務毛利率佔該業務淨銷售額的 24.5%，比去年同期下降 950 個基點，這主要是由於去年同期半單元銷售利潤率較高。核心產品銷售下降以及向功能和選項較少的房屋的混合轉變，使得房主能夠在利率較高的情況下達到每月付款的價格點。

Gross margins were also negatively impacted by lower production rates as we are choosing to operate plants at lower run rate in order to be prepared to quickly ramp upon the return to normal order volume. SG&A in the second quarter decreased $19 million to $64 million, primarily due to lower incentive compensation expense on reduced sales activity.

毛利率也受到生產率下降的負面影響，因為我們選擇以較低的運行速度運營工廠，以便準備在恢復正常訂單量後迅速增加。第二季的SG&A 減少1,900 萬美元至6,400 萬美元，主要是因為銷售活動減少導致激勵補償費用減少。

Net income for the second quarter decreased 68% to $46 million or $0.79 per diluted share compared to net income of $144 million or earnings of $2.51 per diluted share during the same period last year. The decrease in EPS was driven by the decline in sales and reduced operating leverage on lower volume.

第二季淨利下降 68%，至 4,600 萬美元，即稀釋後每股收益 0.79 美元，去年同期淨利潤為 1.44 億美元，即稀釋後每股收益 2.51 美元。每股盈餘下降是由於銷售下降以及銷售下降導致營運槓桿降低所致。

Diluted EPS for this quarter includes approximately $0.03 of transaction-related costs incurred for the acquisition of Regional Homes. The company's effective tax rate for the quarter was 24.5% versus an effective tax rate of 25.0% for the year ago period. Adjusted EBITDA for the quarter was $59 million compared to $197 million in the prior year period. Adjusted EBITDA margin of 12.7% compared to 24.4% in the prior year period reflects the return to more normal profitability levels.

本季的稀釋每股收益包括因收購區域住宅而產生的約 0.03 美元的交易相關成本。該公司本季的有效稅率為 24.5%，而去年同期的有效稅率為 25.0%。本季調整後 EBITDA 為 5,900 萬美元，去年同期為 1.97 億美元。調整後 EBITDA 利潤率為 12.7%，而去年同期為 24.4%，反映出獲利水準已回歸正常水準。

In the near term, we remain focused on maintaining efficient production lines as channel conditions improve and order activity return to a more regular cadence. The structural improvements and investments made in our business have strengthened our operational capabilities, protecting profitability in periods of lower output.

短期內，隨著通路條件的改善和訂單活動恢復到更正常的節奏，我們仍然專注於維持高效的生產線。我們業務的結構改進和投資增強了我們的營運能力，在產量較低的時期保護了獲利能力。

That said, we reiterate our expectation that the mix shift by customers looking to maintain affordable monthly payments in the current interest rate environment will continue for the remainder of fiscal 2024. We expect margins to compress further in the sequential third and fourth quarters due to product mix shifts, newly added production capacity continuing to ramp and the purchase accounting implications of the Regional Homes acquisition.

儘管如此，我們重申我們的預期，即希望在當前利率環境下維持負擔得起的每月付款的客戶的組合轉變將在2024 財年剩餘時間內持續下去。我們預計，由於產品的影響，第三季度和第四季度的利潤率將進一步壓縮。混合變化、新增產能持續增加以及區域住宅收購的購買會計影響。

As of September 30, 2023, we had $701 million of cash and cash equivalents and long-term borrowings of $12 million with no maturities until 2029. We generated $54 million of operating cash flows for the quarter compared to $231 million for the prior year period. The decrease in operating cash flows is primarily due to lower net income and the working capital impact of producing semi-units in the prior year.

截至2023 年9 月30 日，我們擁有7.01 億美元的現金和現金等價物以及1,200 萬美元的長期借款，直到2029 年才到期。本季度我們產生了5,400 萬美元的營運現金流，而去年同期為2.31 億美元。經營現金流量的減少主要是由於前一年淨利下降以及生產半成品對營運資金的影響。

During the quarter, we allocated $143 million of our capital for the strategic purchase of common and preferred shares of ECN Capital. Subsequent to quarter end, we used $318 million of cash to purchase regional homes. In addition, we assumed $93 million of debt, primarily related to inventory floor plan liabilities.

本季度，我們分配了 1.43 億美元的資本用於策略性購買 ECN Capital 的普通股和優先股。季度末後，我們使用了 3.18 億美元現金購買地區住宅。此外，我們還承擔了 9,300 萬美元的債務，主要與庫存計劃負債有關。

We remain focused on executing on our operational initiatives, and given our favorable liquidity position plan to utilize our cash to reinvest in the business and for opportunities that support strategic long-term growth.

我們仍然專注於執行我們的營運計劃，並考慮到我們有利的流動性狀況計劃，利用我們的現金對業務進行再投資，並尋找支持策略性長期成長的機會。

Since closing on the ECN investment, we've been working to develop the business plan for the strategic partnership with Triad Financial Services, including the rollout of Champion Financing branded floor plan programs for our retail and community channel partners as well as tailored retail loan programs for our retail network.

自完成 ECN 投資以來，我們一直致力於與 Triad Financial Services 制定策略合作夥伴關係的業務計劃，包括為我們的零售和社區通路合作夥伴推出 Champion Financing 品牌平面圖計劃以及量身定制的零售貸款計劃對於我們的零售網路。

We are targeting launching these programs in January 2024. As a reminder, the partnership is an asset-light structure, leveraging Triad's existing origination and servicing infrastructure and ECN's funding capabilities, which include relationships with Unity banks and leading institutional investors with no loan risk on the Skyline Champion balance sheet.

我們的目標是在2024 年1 月啟動這些計劃。需要提醒的是，該合作夥伴關係是一種輕資產結構，利用Triad 現有的發起和服務基礎設施以及ECN 的融資能力，其中包括與Unity 銀行和領先機構投資者的關係，不存在貸款風險。天際線冠軍資產負債表。

We will be reporting the impact of the ECN common stock investment and the results of the captive financing partnership on a quarterly lag.

我們將報告 ECN 普通股投資和自保融資合作夥伴關係結果對季度滯後的影響。

We began the integration of regional homes upon closing of the transaction in mid-October. The teams have been meeting to share best practices and to begin to capture synergies. As a reminder, we anticipate synergy capture of $10 million to $15 million over the next 2 years including manufacturing procurement synergies, leveraging our national footprint and operational improvements from sharing of best practices across productions and sales.

十月中旬交易結束後，我們開始整合區域住宅。這些團隊一直在開會分享最佳實踐並開始發揮協同作用。提醒一下，我們預計未來 2 年內將獲得 1000 萬至 1500 萬美元的協同效應，包括製造採購協同效應、利用我們的全國足跡以及透過共享生產和銷售最佳實踐來改善營運。

The regional balance sheet, including retail finished goods inventory will be revalued to its fair value and will negatively impact the company's consolidated gross margin in the next several quarters as those homes are retail sold. In addition, SG&A will increase for the amortization of intangible assets generated from the acquisition.

包括零售成品庫存在內的區域資產負債表將重估至其公允價值，並將在未來幾季對該公司的綜合毛利率產生負面影響，因為這些房屋是零售的。此外，SG&A 將因收購產生的無形資產攤銷而增加。

I'll now turn the call back to Mark for some closing remarks.

現在我將把電話轉回給馬克，讓他做一些結束語。

Thanks, Laurie. As we manage through the rebalancing of our channels, we believe Skyline Champion is well positioned due to our affordable price points, strategic positioning and our core initiatives. The long-term outlook for demand is supported by the channel opportunities with community REIT, manufacturer rent and builder developer growth as well as helping our retail partners adapt changes in consumer demographics.

謝謝，勞裡。當我們透過通路再平衡進行管理時，我們相信 Skyline Champion 憑藉我們實惠的價格點、策略定位和我們的核心舉措而處於有利地位。社區房地產投資信託基金、製造商租金和建築開發商成長的通路機會以及幫助我們的零售合作夥伴適應消費者人口統計變化的通路機會為需求的長期前景提供了支持。

In addition, the need for affordable housing continues to grow each and every day, and we believe that the elevated cost of housing will drive more traditional state-built buyers to our homes.

此外，對經濟適用房的需求每天都在持續增長，我們相信，住房成本的上漲將促使更多傳統的國有買家購買我們的房屋。

Before we open the line for Q&A, I want to take a moment to thank our people. The entire Skyline Champion team has our consistently strong performance as a result of the amazing things that may happen each and every day.

在我們開通問答熱線之前，我想花點時間感謝我們的員工。由於每天都可能發生令人驚奇的事情，整個天際線冠軍團隊始終保持著強勁的表現。

So with that, operator, you may now open the lines for Q&A.

因此，接線員，您現在可以打開問答線路。

(Operator Instructions) Our first question is coming from Greg Palm with Craig-Hallum Capital Group.

（操作員說明）我們的第一個問題來自 Craig-Hallum Capital Group 的 Greg Palm。

I wanted to start with gross margin, it sounds like in the quarter, maybe the weaker-than-expected result was more of a function of some of these plant operating costs versus maybe increased competition or discounting. So I just wanted to make sure that was right. And then just sort of going forward, is the thought process that you're maybe keeping more employees on or keeping more shifts in preparation for that return of demand? Is that why one of the reasons why gross margin is going to maybe stay a little bit subdued to you in the near term?

我想從毛利率開始，聽起來這個季度的結果可能弱於預期，更多是這些工廠營運成本與競爭或折扣加劇的函數有關。所以我只是想確保這是正確的。然後，繼續前進，您是否可能保留更多員工或保留更多班次，為需求的回歸做好準備？這就是為什麼毛利率在短期內可能會稍微低迷的原因之一嗎？

Yes, Greg, I think that you summed it up pretty well. We are definitely seeing, in addition to the things that you mentioned a product -- that product mix shift that we were anticipating, but to a greater degree as well. So yes.

是的，格雷格，我認為你總結得很好。除了您提到的產品之外，我們確實看到了我們預期的產品組合變化，但程度也更大。所以是的。

And just in terms of maybe quantify a little bit more relative to this previous quarter, what kind of compression should we expect over the next quarter or two?

就可能相對於上一季進行更多量化而言，我們應該預期在接下來的一兩個季度會出現什麼樣的壓縮？

Yes. For the next few quarters, we're definitely -- it's going to be -- there's a lot of moving parts. So we're going to continue to see that product mix shift with the consumer trying to reach a more affordable monthly payment with interest rates where they are today. And as well as the ramping plants and then the impact of the regional purchase accounting on gross margin. So we're expecting it probably around 200 basis points.

是的。在接下來的幾個季度中，我們肯定——將會——有很多變化的部分。因此，我們將繼續看到產品結構轉變，消費者試圖以目前的利率獲得更實惠的每月付款。以及工廠的擴建以及區域採購核算對毛利率的影響。所以我們預計它可能會上漲 200 個基點左右。

And the purchase accounting was kind of 40 to 60 basis points, correct?

購買會計是 40 到 60 個基點，對嗎？

Yes, I did mention that last quarter. We're still working through all the numbers based on the closing balance sheet.

是的，我上個季度確實提到這一點。我們仍在根據期末資產負債表計算所有數據。

Yes. Okay. And then I don't know if you can maybe talk a little bit more about Champion Financing and what that looks like over the next 1 to 2 years? I know ECN, the partner here, they've publicly stated the expectation of that JV contributing $40 million of pretax income per partner in calendar '25.

是的。好的。然後我不知道您是否可以多談談冠軍融資以及未來 1 到 2 年的情況？我知道 ECN，這裡的合作夥伴，他們公開表示期望該合資企業在 25 日曆年為每個合作夥伴貢獻 4000 萬美元的稅前收入。

I think maybe they said at least $40 million, if I remember right. Is that something you want to bless as well? And if that's the case, just kind of curious what that ramp might look like over the next couple of years?

如果我沒記錯的話，我想他們可能會說至少 4000 萬美元。這也是你想要祝福的事嗎？如果是這樣的話，只是有點好奇未來幾年斜坡會是什麼樣子？

Yes, Greg, I think the ramp is out there. I think ECN mentioned 12 to 24 for their 50%. So I think that's where you're looking at that. That piece for that. The JV is obviously in a great position. We're very excited about that, especially given the banking conditions that we're seeing today. I think the fact that ECN has capital flow partners from Blackstone and Carlyle is tremendous in today's market. We've already seen 2 or 3 banks start to -- regional and community banks start to exit out of the lending space our customers.

是的，格雷格，我想坡道就在那裡。我認為 ECN 提到 12 到 24 是他們的 50%。所以我認為這就是你所關注的地方。那件作品就是為了那個。合資企業顯然處於有利地位。我們對此感到非常興奮，特別是考慮到我們今天看到的銀行業狀況。我認為 ECN 擁有來自 Blackstone 和 Carlyle 的資本流動合作夥伴這一事實在當今市場上是巨大的。我們已經看到 2 或 3 家銀行開始——區域銀行和社區銀行開始退出我們客戶的貸款領域。

And as there's further pressure and we anticipate some further pressure on regional and community banks, making sure our customers have access to liquidity is very important for our dealers and obviously, our community partners and builder developers as a matter of fact.

隨著壓力進一步加大，並且我們預計區域和社區銀行將面臨進一步壓力，確保我們的客戶能夠獲得流動性對於我們的經銷商以及顯然對我們的社區合作夥伴和建築開發商來說非常重要。

So I think having that partnership with ECN is vital, especially with the strong relationships they have with Blackstone and Carlyle, who committed an additional $1.3 billion worth of capital. So infusing liquidity into the market with community and regional banks.

因此，我認為與 ECN 建立合作關係至關重要，特別是考慮到他們與 Blackstone 和 Carlyle 的牢固關係，後者額外投入了價值 13 億美元的資金。因此，與社區和區域銀行一起向市場注入流動性。

So that really is a strong -- like forward to us. So as Laurie mentioned, we're getting things set up right now. We anticipate we'll have the systems and other things ready to go by January time period. And so we'll really start to ramp it in the calendar year of '24. And so I think evening's on track to that. And -- the teams are working very well together.

所以這對我們來說確實是一個強而有力的轉發。正如勞裡所說，我們現在正在安排一切。我們預計我們將在一月份之前準備好系統和其他東西。因此，我們將在 24 年真正開始加強。所以我認為晚上將會實現這一目標。而且——這些團隊合作得很好。

And just to be clear, I was talking calendar '25. I think they mentioned 12 to 24 in calendar '24. Is that right?

需要澄清的是，我說的是 25 年曆。我認為他們在 24 年曆中提到了 12 點到 24 點。是對的嗎？

Yes, that's correct.

對，那是正確的。

Our next question is coming from Daniel Moore with CJS Securities.

我們的下一個問題來自 CJS 證券的 Daniel Moore。

First off, just want to clarify comments, Mark. I think you said you have some Q3 revenue up mid- to high single digits sequentially. Is that correct? And if so, is that organically or inclusive of regional?

首先，我想澄清一下評論，馬克。我想你說過你的第三季收入連續上升到中高個位數。那是對的嗎？如果是這樣，這是有機的還是包括區域性的？

That's inclusive of regional, Dan, in that number. Yes, we expect somewhere at least in that range, mid- to high single digits, at least for the quarter sequentially.

丹，這個數字包括地區性的。是的，我們預計至少在這個範圍內，中高個位數，至少本季是如此。

Got it. And it sounds like some communities returning, some still destocking. Are there any discernible differences, be it regional or other that you can sort of identify? Or is it more community versus community by community?

知道了。聽起來有些社區正在回歸，有些社區仍在去庫存。是否存在任何您可以識別的明顯差異，無論是區域差異還是其他差異？還是更多的社區與社區之間的關係？

It's really more community by community. We've seen actually a handful of communities returns. They've been starting to order and get back on a normal cadence. Others are still in that destocking process. So it's, I don't want to say it's 50-50, Dan, but it's definitely -- there's a split between communities that are starting to move and others are still kind of in that pause mode.

這確實是一個又一個社區。我們實際上已經看到少數社區回歸。他們已經開始訂購並恢復正常節奏。其他人仍在去庫存過程中。所以，我不想說這是 50-50，丹，但它肯定是——開始移動的社區和其他社區之間存在分歧，而其他社區仍然處於暫停模式。

Got it. And what can you say just in terms of kind of longer-term progress that the Genesis solution is making? We focus on those top 100 builders, but even beyond that in terms of sort of converting to your solution. I recognize it takes years, not quarters, but what's the sort of momentum or cadence of those dialogues?

知道了。就 Genesis 解決方案正在取得的長期進展而言，您能說些什麼？我們專注於前 100 名建造者，但在轉換為您的解決方案方面甚至更進一步。我承認這需要數年時間，而不是幾個季度，但這些對話的動力或節奏是怎樣的？

The momentum is phenomenal, actually. I think now that interest rates have stayed up a little bit and they're forecasted to stay up a little longer according to the Fed. It's really causing builders to take a look at what that outlook is.

事實上，這種勢頭是驚人的。我認為現在利率已經上升了一點，根據聯準會的預測，利率將維持更長的時間。這確實讓建築商開始審視這種前景。

Right now, a majority of builders are buying down loans to really drive their volumes. I look at our -- and I look at our quarter, we had order growth of 20% sequentially and orders year-over-year grew by 250%. And that's with no buydowns, no real incentives to drive volumes. So I think the affordable price points there and with their cost of capital, for small to mid-tier builders kind of ranging in that 14% range for development. That really can drive a huge incentive for them to switch to our solutions to where we can save them 9 to 12 months of cost capital time. So it's tremendous.

目前，大多數建築商都在購買首付貸款，以真正提高銷售量。我看看我們的季度，我們的訂單環比增長了 20%，訂單同比增長了 250%。而且這還沒有減持，也沒有真正的激勵措施來推動銷售。因此，我認為對於中小型建築商來說，可負擔的價格點及其資本成本在開發範圍內為 14%。這確實可以極大地激勵他們改用我們的解決方案，從而為他們節省 9 至 12 個月的資本成本時間。所以這是巨大的。

So I'd say the momentum is definitely picking up, especially now that people are looking at the fact that buy-downs can't last forever, and the Fed is extending longer. I think that really is a motivation for builders to look at an alternative because they can't do it otherwise.

因此，我想說，這種勢頭肯定正在增強，尤其是現在人們正在考慮這樣一個事實：減持不會永遠持續下去，而且聯準會的期限正在延長。我認為這確實是建築商尋找替代方案的動力，因為他們別無選擇。

Got it. And last for me, just circling back to the gross margin. I appreciate the color and commentary. 200 bps kind of back down to the 23% range, maybe a little conservative, we'll see.

知道了。最後我要回到毛利率。我很欣賞它的色彩和評論。 200 bps 有點回落到 23% 的範圍，也許有點保守，我們拭目以待。

Just talk, Laurie, about when we get through the purchase accounting and get to maybe back to 60%, 65% utilization, where you see margins leveling off, even at this new, let's say, if it's a new norm for a longer period of time in terms of lower price points, mix, et cetera, where you sort of see us leveling off over the next 4 to 8 quarters?

勞裡，請談談當我們完成採購核算並可能回到60%、65% 的利用率時，您會看到利潤率趨於平穩，即使在這個新的情況下，比方說，如果這是一個較長時期的新規範就較低的價格點、混合等方面而言，您認為我們在未來 4 到 8 個季度內會趨於平穩嗎？

Yes, Dan, thanks for the question. We still think that our long-term structural margin targets are in that mid-20% range. So I do believe that we're going to get back to the targets that we talked about historically. It's going to be bumpy for the next few quarters.

是的，丹，謝謝你的提問。我們仍然認為我們的長期結構性利潤率目標在 20% 的中間範圍內。所以我確實相信我們將回到我們歷史上討論過的目標。未來幾季的情況將會很坎坷。

Our next question is coming from the line of Phil Ng with Jefferies.

我們的下一個問題來自 Phil Ng 和 Jefferies 的電話。

Mark, you sound pretty excited about this direct-to-builder channel. Certainly, you have some excess capacity right now with a softer demand backdrop. What's your ability to kind of pivot to serve that channel a little more fuller? Is there anything you got to do on the labor front or the facilities?

馬克，聽起來你對這個直接面向建構者的頻道感到非常興奮。當然，在需求疲軟的背景下，目前產能過剩。您有什麼能力為該通路提供更全面的服務？您在勞工或設施方面有什麼要做的嗎？

No. Thanks for the question, Phil. No, part of the reason we're running this quarter we ran at 53% capacity utilization. Part of the reason we're choosing to run at kind of less than optimal capacity utilization is really to make sure we have that available capacity to enter that channel. Right now is that pressure point. And I think a lot of builders have been buying down rates, doing that in view that it would be a short term. They just need to do it for a few quarters. to get through to keep their sales up. I think now that it's more of a marathon, less than a sprint of rate buy-downs, I think they're starting to reconsider.

不，謝謝你的提問，菲爾。不，我們本季產能利用率達到 53%，這也是我們運作的部分原因。我們選擇以低於最佳容量利用率運行的部分原因實際上是為了確保我們有足夠的容量進入該通道。現在就是那個壓力點。我認為許多建築商一直在降低利率，這樣做是因為這將是短期的。他們只需要做幾個季度就可以了。來保持銷售量。我認為現在這更像是一場馬拉松，而不是一次利率下調的衝刺，我認為他們開始重新考慮。

So I think we've got this infrastructure in place to move in to that channel very quickly, which is why I think the pipeline is shaping up the way it is for us.

因此，我認為我們已經擁有了基礎設施，可以很快進入該管道，這就是為什麼我認為管道正在為我們塑造它的方式。

Okay. That's helpful. And then how do you see this ECN integration rolling out and progressing, call it, in the next 6 to 12 months? Any big mile marks you want to achieved ahead of the spring selling season.

好的。這很有幫助。那麼您如何看待 ECN 整合在未來 6 到 12 個月內的推出和進展？您希望在春季銷售季節之前實現的任何重要里程碑。

And you called out how having this partnership now gives you better access to liquidity, especially in an environment where credit is a little tougher. Does it help on the rate side of things as well? Do you have consumers get more competitive right now versus when you didn't have this partnership previously?

您指出，現在建立這種合作關係如何讓您更好地獲得流動性，特別是在信貸稍微困難的環境下。它對利率方面也有幫助嗎？與之前沒有這種合作關係時相比，現在的消費者是否變得更具競爭力？

Yes. So we haven't done anything to drive rates in a different way. There are some benefits, I think, to our partners in terms of rate that we can look at, especially with our turnkey solutions that we're offering, Phil. I think if they're using -- if they're buying from us, if they're using our construction services, they're using our floor plan and other things, I think overall, we can look at it from a DVD or a volume discount basis that will definitely help them in some ways.

是的。因此，我們沒有採取任何措施以不同的方式推動利率。我認為，就我們可以考慮的費率而言，我們的合作夥伴有一些好處，尤其是我們提供的交鑰匙解決方案，菲爾。我認為，如果他們使用——如果他們從我們這裡購買，如果他們使用我們的建築服務，他們使用我們的平面圖和其他東西，我認為總的來說，我們可以從 DVD 或批量折扣肯定會在某些方面幫助他們。

I really think the benefit for them is going to be a fewfold. One, it's access to liquidity. Two, it is the speed that we're going to deliver. So we're working hand-in-hand with ECN in the Champion Financing program really to deliver great customer experience, faster turnaround times, better offerings, in terms of what we can deliver to them. And then I think the third piece is really just, like I said, a suite of services to where they have one partner they can deal with for multiple needs. And obviously, competitive rates to the end consumer is only what it's all about.

我真的認為他們的好處將會是數倍的。一是獲得流動性。第二，這是我們要提供的速度。因此，我們在 Champion Financing 計劃中與 ECN 攜手合作，真正為客戶提供卓越的體驗、更快的周轉時間、更好的產品，以及我們可以為他們提供的服務。然後我認為第三部分實際上只是，就像我說的，一套服務，他們有一個合作夥伴可以滿足多種需求。顯然，對最終消費者來說有競爭力的價格才是最重要的。

Super. And just one last one for me. How do you kind of see your sales cadence kind of wrapping up the fourth quarter? You talked about 3Q. It's just kind of a noisy year, so it would be helpful to kind of get your perspective on how the shape of the year wraps up. And do you expect pricing and mix to kind of stabilize here? Or there could be some further degradation in the back half?

極好的。對我來說只是最後一件。您如何看待第四季結束時的銷售節奏？你談到了3Q。今年是喧鬧的一年，所以了解這一年的結局會很有幫助。您預期價格和產品組合會趨於穩定嗎？或者後半部可能會進一步退化？

Yes. I think there's going to be a little bit of noise, right? I mean we're going to have some choppiness as we integrate regional. They have a different price point and other things that we'll have to bring in here. But I would see revenue up sequentially and then continue to grow in the spring as the market ramps and some of the community customers continue to come back.

是的。我想會有一點噪音，對嗎？我的意思是，當我們整合區域時，我們將會遇到一些不穩定的情況。他們有不同的價格點和其他我們必須帶進來的東西。但我會看到收入連續成長，然後隨著市場的成長和一些社群客戶的持續回歸，在春季繼續成長。

I really think it's positioned very well. ASPs are going to be a little bit noisy, to be honest, just because with the mix of retail versus manufacturing, you're going to see kind of volatility in rates just in terms of all of it noise, which is not really price deterioration or increases, it will be more mix oriented, as Laurie mentioned earlier.

我真的認為它的定位非常好。老實說，平均售價會有點吵，因為零售業與製造業的混合，你會看到利率的波動，這並不是真正的價格惡化。或增加，它將更加以混合為導向，正如勞里之前提到的。

And then regional mix is down or up? Or I just want to make sure you made some comment about integrating regional. I just want to make sure I flesh that out.

那麼區域組合是下降還是上升？或者我只是想確保您對區域一體化發表了一些評論。我只是想確保我能充實這一點。

Yes. So regional has seen the mix shift that we're seeing more broadly across all of the plants. So where last year, they had higher prices, their prices are coming down as well. Just due to the mix shift in the monthly payment price points that the customer is writing. So we do expect ASPs to come down just generally sequentially from the second quarter to the third quarter and probably stay in that range for the next few quarters as we work through that leveling of mix.

是的。因此，區域性的結構發生了變化，我們在所有工廠中都看到了更廣泛的變化。去年價格較高的地方，現在價格也在下降。只是由於客戶所寫的每月付款價格點的混合變化。因此，我們確實預計平均售價從第二季到第三季將普遍連續下降，並且在我們努力實現混合平衡的過程中，可能會在接下來的幾季保持在這個範圍內。

Our next question is coming from Mike Dahl with RBC Capital.

我們的下一個問題來自 RBC Capital 的 Mike Dahl。

It's actually Chris Kalata on for Mike. Just a follow-up on the regional discussion now that the deal is closed, is there any more specifics you could provide in terms of expected unit contribution in next quarter and into 4Q, just given the additional color you have now?

實際上是克里斯·卡拉塔（Chris Kalata）代替邁克。現在交易已經完成，這只是區域討論的後續行動，鑑於您現在擁有的額外顏色，您是否可以提供下個季度和第四季度的預期單位貢獻方面的更多細節？

Yes. We don't -- Chris, thank you for the question. We don't break out regional separately in terms of the guidance. I think they're wrapped up in our overall safe if how we see the third quarter shaping up.

是的。我們不——克里斯，謝謝你的提問。我們不會在指南中單獨劃分地區。我認為，如果我們如何看待第三季的情況，他們就會被我們的整體安全所包圍。

Got it. Understood. And then just shifting on -- shifting towards the many changes in the core customer dynamics following the move up higher rates. I mean have you seen a change in order trends in the last month or two, how has the financing environment shifted in response to the move higher like our spreads have spreads expanded? And any color you could provide on the health of the core MH consumer today relative to a few weeks back and the financing changes?

知道了。明白了。然後繼續前進——隨著費率的提高，核心客戶動態發生了許多變化。我的意思是，您是否看到過去一兩個月訂單趨勢發生了變化？融資環境如何隨著價格上漲而變化，例如我們的利差擴大了？您能否提供有關當前 MH 核心消費者相對於幾週前的健康狀況以及融資變化的任何資訊？

Yes. Thank you, Chris. I think I'm actually fairly confident in the consumer right now. We've seen -- like I said, one thing I look at very directly is the fact that we're -- our unit volumes and our order rates have picked up 20% sequentially. And like I said earlier, I think, 250 year-over-year percent, and that's without incentives. So I think that we're seeing that drive to affordability. We're seeing customers look for a better alternative. And we don't really have to drive huge financial incentives to capture that customer base. So I think that outlook is shaping up very well for us in terms of that.

是的。謝謝你，克里斯。我認為我現在對消費者相當有信心。我們已經看到——就像我說的，我非常直接地看到的一件事是——我們的單位數量和訂單率連續上升了 20%。正如我之前所說，我認為同比增長了 250%，而且這還是在沒有激勵措施的情況下。所以我認為我們正在看到可負擔性的驅動力。我們看到客戶正在尋找更好的替代方案。我們其實並不需要推動龐大的經濟誘因來吸引客戶群。因此，我認為從這方面來看，我們的前景非常好。

Our customers right now are seeing, probably -- we're seeing rates, probably the best rates we're seeing right now for channel are about 8.5%. I would say the average is probably closer to 8%, 9%, if they're poor credit, they're in 10%, 11%, 11.5%. So -- but it's a great spread right now, in some cases, 50, 100 basis points we're seeing for channels, which is very competitive in the marketplace today. So it's a great value for our consumers.

我們的客戶現在可能會看到，我們正在看到費率，我們現在看到的管道最佳費率可能約為 8.5%。我想說平均值可能接近8%、9%，如果他們的信用較差，他們的比例是10%、11%、11.5%。所以，但現在的利差很大，在某些情況下，我們看到管道有 50、100 個基點，這在當今的市場上非常有競爭力。所以這對我們的消費者來說具有很大的價值。

We do have a follow-up question coming from the line of Greg Palm with Craig-Hallum Capital Group.

我們確實有一個後續問題，來自克雷格-哈勒姆資本集團 (Craig-Hallum Capital Group) 的 Greg Palm。

Can -- apart from the -- excluding this purchase accounting, will Regional's gross margins be accretive? Or are they kind of in line with kind of that mid-20's gross margin? I forget whether you've talked about that before, but maybe you can remind us.

除了－排除這種採購會計之外，地區的毛利率會增加嗎？還是它們與 20 世紀中期的毛利率一致？我忘記你以前是否談過這一點，但也許你可以提醒我們。

Yes, Greg, they're a little bit lower. So we've got to work on bringing in the synergy capture over the next couple of years to bring that up.

是的，格雷格，它們有點低。因此，我們必須在未來幾年內努力引入協同效應來實現這一目標。

Okay. Got it. So maybe that's part of the mix shift as well. And then just thinking longer term, I know, Laura, you mentioned kind of getting back to mid-20s, but why wouldn't it be higher, whether it's in that kind of 26% to 27% range that you were talking about previously or even somewhere in the higher 20s. Just under more normal capacity utilization levels, you mentioned the synergy capture. It just feels like, but I just wanted to maybe flesh that out a little bit more, if I could.

好的。知道了。所以也許這也是混合轉變的一部分。然後從長遠來看，我知道，勞拉，你提到要回到 20 多歲左右，但為什麼不更高呢，無論是在你之前提到的 26% 到 27% 的範圍內甚至是20多歲的某個地方。就在更正常的產能利用率水準下，您提到了協同效應捕獲。感覺就像，但如果可以的話，我只是想把它充實一點。

Yes, Greg, the 26%, 27% is still certainly doable at normal capacity levels. And obviously, as volumes increase, there's some upside potential there, too. So we see it in that range, 25% to 27%, whatever.

是的，Greg，26%、27% 在正常容量水準下仍然是可行的。顯然，隨著銷量的增加，也存在一些上升潛力。所以我們看到它在這個範圍內，25% 到 27%，無論如何。

Yes. Okay. So it doesn't sound like anything sort of changed in terms of getting back to that level or long term versus what we were thinking last quarter?

是的。好的。因此，與我們上季度的想法相比，在回到這一水平或長期水平方面，聽起來並沒有發生任何變化？

Not from a long-term perspective. No.

不是從長遠的角度來看。不。

It appears we have no further questions at this time. So I'd like to pass the floor back over to Mr. Yost for any additional closing remarks.

目前看來我們沒有其他問題了。因此，我想將發言權交還給約斯特先生，請他發表補充的結論。

I'd like to thank everyone for participating in today's call. We appreciate the time and your continued interest. We look forward to updating you on our progress on our third quarter call. Thank you, and have a great day. .

我要感謝大家參加今天的電話會議。我們感謝您的時間和持續的關注。我們期待在第三季電話會議上向您通報最新進展。謝謝您，祝您有美好的一天。 。

Thank you. Ladies and gentlemen, this does conclude today's teleconference. Once again, we thank you for your participation, and you may disconnect your lines at this time.

謝謝。女士們、先生們，今天的電話會議到此結束。我們再次感謝您的參與，此時您可以斷開線路。