The federal preemption and CrossMods related parts of the headline with respect to Champion Homes are addressed in Part II. But first up is the switch in leadership at Champion (SKY) from Mark Yost to Timothy Larson. According to WallMine on April 2, 2024 — “Mark Yost is 47, he’s been the President, Chief Executive Officer, and Director of Champion Homes since 2019.”  He appeared to be a younger management team member. According to Crane’s Tim “Larson, 50, has worked at Champion as chief growth officer since 2021, working on direct-to-consumer growth and brand transformation…” According to an SEC form 8K filing on 12.13.2024 it said the following.

On December 13, 2024, the Board of Directors (the “Board”) of Champion Homes, Inc. (the “Company”) appointed Timothy Larson as President and Chief Executive Officer (“CEO”) of the Company, effective immediately, succeeding Mark Yost.

In addition, on December 13, 2024, Mr. Yost resigned from the Board. Mr. Yost’s resignation was not the result of any dispute or disagreement with the Company or the Board on any matter relating to the Company’s operations, policies or practices.

In connection with his separation from the Company, Mr. Yost will be entitled to receive the payments and benefits pursuant to Section 5(d) of the Executive Employment Agreement, dated September 5, 2019 and effective as of June 1, 2019, between him and the Company, as well as certain entitlements pursuant to the award agreements governing his outstanding equity incentive awards, in each case, subject to his timely execution and non-revocation of a separation agreement containing, among other things, a customary release of claims and reaffirmation of his agreement to certain restrictive covenants related to confidentiality, non-competition and non-solicitation of customers and employees.

On December 13, 2024, Mr. Larson was also appointed as a member of the Board, effective as of such date, to hold office until the Company’s 2025 annual meeting of shareholders and until his successor is duly elected and qualified or until his earlier resignation or removal.

So, Larsen replaced a younger man (Yost) at the helm of Champion Homes. Yost’s LinkedIn Page still shows him as president and CEO on this date, so there are no clues there that go beyond what is said by the company as to why this change has occurred.

Yost said the following via a press release before the recent change was announced.

“We’re committed to helping increase housing availability during this critical time of widespread housing shortages across the nation,” said Champion Homes President and CEO Mark Yost. “The innovative pilot program in Versailles is raising awareness of what’s possible with manufactured housing.”

That was part of a report linked here.  In a press release on the Champion Homes website, Yost said this.

That same Champion page on this date (12.30.2024) has under that same page’s Skyline Champion Corporation – Sustainability subheading the following corporate ESG related statement.

Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum.

According to Google’s Latin to English translator, that means the following.

It is important to take care of the patient, to be followed by the patient, but it will happen at such a time that there is a lot of work and pain. For to come to the smallest detail, no one should practice any kind of work unless he derives some benefit from it. Do not be angry with the pain in the rebuke, in the pleasure he wants to be a hair from the pain, let him run away from the pain. Unless they are blinded by lust, they do not come out; they are in fault who abandon their duties and soften their hearts, that is toil.

Hmmm…okay. For those who may not be aware, a “Lorem ipsum” statement may be placed in a format (print or web) until the actual statement replaces it. Apparently, several people at Skyline Champion (SKY), which was recently rebranded as Champion Homes, failed to double check and thus that Lorem ipsum remained. Shall we check back later to see if Champion Homes updates/corrects that oversight after this article is published?

In fairness, we have glitches too. That said, we’re not a multi-billion-dollar corporation (at least, not yet).

Of arguably greater importance will be what follows about Champion Homes in Part II. But next up, Part I shares Champion Homes transition related press release. Part II will open with yet another Champion press release from earlier this month.

 

Part I

Champion Homes Implements CEO Succession Plan

Tim Larson Appointed President and Chief Executive Officer, Succeeding Mark Yost

December 13, 2024 04:15 PM Eastern Standard Time

TROY, Mich.–(BUSINESS WIRE)–Champion Homes, Inc. (NYSE: SKY) (“Champion Homes”) today announced the implementation of a succession plan in which Tim Larson, the Company’s Chief Growth Officer, has been appointed President, Chief Executive Officer, and a member of the Board of Directors, effective immediately. He succeeds Mark Yost in these roles. Mr. Yost will be available as needed to support an orderly transition.

“It has been a privilege to serve as CEO, and I am proud of what our team has accomplished during my tenure at Champion Homes”

Mr. Larson joined Champion Homes in 2021 as Chief Growth Officer. In this role, he has been responsible for leading the Company’s direct-to-consumer growth and brand transformation while driving a customer-centric approach to the business. Mr. Larson is an accomplished executive in the consumer products and manufacturing industries, including serving as CEO of Jostens, Inc. and CMO and Sr. Vice President of Global Customer Excellence at Polaris Industries.

“As we engaged in our ongoing succession planning activities, the Board determined that Tim has the right set of leadership, operational and financial skills and experience to lead Champion Homes as it embarks on its next phase of growth,” said Eddie Capel, Chair of the Board of Directors. “Since joining the Company, Tim has been instrumental in developing and executing our digital direct-to-consumer strategy, expanding our retail footprint, and driving a customer-centric approach to the business. We are confident now is the right time to transition leadership and that he will continue to build on the progress achieved during Mark’s tenure as CEO. We remain on track to deliver solid results in our third quarter and will look to capitalize on new opportunities to unlock even more value for our shareholders with Tim at the helm. On behalf of the Board of Directors, I thank Mark for his leadership as CEO of Champion Homes and his many contributions over the past decade.”

Mr. Larson said, “It is an especially exciting time at Champion Homes. There is a tremendous opportunity to expand and elevate offsite built homes through customer-centric product and service innovation, in support of both homeowners and our retailers. I look forward to working with our CFO, Laurie Hough, and the entire outstanding Champion team as we evolve and grow our portfolio of housing solutions.”

“It has been a privilege to serve as CEO, and I am proud of what our team has accomplished during my tenure at Champion Homes,” Mr. Yost said. “Having worked closely with Tim in recent years, I am confident in his ability to lead the Company forward.”

About Tim Larson

Mr. Larson has been a member of the Champion Homes executive leadership team since 2021, serving as the Chief Growth Officer. He has significant experience transforming the customer and digital experience across a diverse portfolio of brands and manufacturing businesses with dealer-based retail channels. Mr. Larson acted as Board Chair for several businesses, including Spectro Alloys and Botanic Innovations. From August 2013 to January 2018, he served as CMO and Sr. Vice President of Global Customer Excellence for Polaris Industries. He served as President and Chief Executive Officer of Jostens, Inc. from January 2008 to January 2013. Mr. Larson earned a B.A. in Strategic Communications from the University of Minnesota.

About Champion Homes, Inc.

Champion Homes, Inc. (NYSE: SKY) is a leading producer of factory-built housing in North America and employs approximately 9,000 people. With more than 70 years of homebuilding experience and 48 manufacturing facilities throughout the United States and western Canada, Champion Homes is well positioned with an innovative portfolio of manufactured and modular homes, ADUs, park-models and modular buildings for the single-family, multi-family, and hospitality sectors.

In addition to its core home building business, Champion Homes provides construction services to install and set-up factory-built homes, operates a factory-direct retail business with 72 retail locations across the United States, and operates Star Fleet Trucking, providing transportation services to the manufactured housing and other industries from several dispatch locations across the United States.

Champion Homes builds homes under some of the most well-known brand names in the factory-built housing industry including Skyline Homes, Champion Homes, Genesis Homes, Regional Homes, Athens Park Models, Dutch Housing, Atlantic Homes, Excel Homes, Homes of Merit, New Era, Redman Homes, ScotBilt Homes, Shore Park, Silvercrest, Titan Homes in the U.S. and Moduline and SRI Homes in western Canada.

Forward-Looking Statements

Statements in this press release, including certain statements regarding Champion Homes’ expected future results and statements related to the expectation that Mr. Larson will help Champion Homes realize strategic growth opportunities and generate long-term shareholder value, 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,” “could,” “should,” “will,” “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 Champion Homes. We caution 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 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; 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 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; 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; unanticipated impacts from the transition in executive leadership; and other risks set forth in the “Risk Factors” section, the “Legal Proceedings” section, the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” section, and other sections, as applicable, in our Annual Reports on Form 10-K, including our Annual Report on Form 10-K for the fiscal year ended March 30, 2024 previously filed with the Securities and Exchange Commission (“SEC”), as well as in our Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K, filed with or furnished to 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, then the developments and future events concerning Champion Homes 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 release. We anticipate that subsequent events and developments will cause our expectations and beliefs to change. Champion Homes 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.

…

Contacts
Name: Kevin Doherty
Email: investorrelations@championhomes.com

 

Part II – Additional Information with More MHProNews Analysis and Commentary

1) On December 5, 2024 Mark Yost was quoted in a Champion Homes press release. That release said the following.

 

Champion Homes is proud to announce the delivery and installation of a new manufactured home in Versailles, Ky., as a part of a pilot program highlighting factory-built housing as a solution to housing inventory shortages in Central Kentucky.

Working with the Kentucky Manufactured Housing Institute (KMHI) and the City of Versailles, Champion Homes was selected to design, build, set, and install the home. Throughout the pilot, local officials and residents are invited to walk the home, view the quality of the construction, and learn about the energy efficient features. After the pilot concludes, the home will become a permanent residence for a local individual or family.

“We’re committed to helping increase housing availability during this critical time of widespread housing shortages across the nation,” said Champion Homes President and CEO Mark Yost. “The innovative pilot program in Versailles is raising awareness of what’s possible with manufactured housing.”

The pilot is the result of a year-long task force spearheaded by members of the Versailles City Council in collaboration with KMHI. Versailles City Council unanimously approved the task force’s plan to showcase a modern manufactured home on city-owned property to present a solution to the critical shortage of available housing inventory in Central Kentucky.

Factory-built housing presents a pivotal opportunity for regions like Central Kentucky that are facing housing shortages. Manufactured homes are affordable and faster to construct than traditional site-built homes. They’re a timely, attractive solution to increasing housing inventory. Prefab homes can also be less disruptive to local neighborhoods than site-built homes. Since most of the construction happens off-site, there is less noise and construction traffic impacting current residents in the community.

“This partnership exemplifies what can be achieved when local government and industry leaders work together to solve community challenges,” said KMHI Executive Director Logan Hanes.

Champion Homes displayed the pilot house at the Kentucky League of Cities Conference & Expo on September 24-27, 2024, in Lexington, located less than 15 miles from Versailles. Attendees representing municipalities from across the state were invited to view the home.

As a CrossMod, or crossover modern home, the pilot house combines the best of off-site and on-site construction. CrossMods are manufactured homes built to the U.S. Department of Housing and Urban Development code while also featuring amenities typically found in site-built homes like garages, carports, and pitched roofs.

No mention of Larsen or a succession plan in that corporate press release earlier this month. MHProNews’ report on that topic is linked below. That fact check and analysis of the press release immediately above (Part II #1) points to prior projects and insights on CrossMods that may not fit the Champion Homes narrative.

 

 

2) ICYMI, the deeper dive into significant aspects of Champion’s most recent Investor Relations presentation is found below.  While it isn’t absolutely necessary, it is useful to be familiar with that to better grasp and appreciate what follows related to a prior inquiry with Skyline Champion’s Sarah Janowicz and a more recent one to Kevin Doherty and Jason Blair in PR/Investor Relations.

 

 

3) From that report, which cited Champion’s latest investor relations (IR) presentation (a.k.a.: pitch deck) was the following. On Page 6 among their IR statements is this.

Stakeholder Engagement

• Open and transparent communication with all our stakeholders – shareholders, employees, customers, suppliers, and communities we serve

• Social responsibility to homebuyers, customers, employees and the communities in which they live and work

The Q&A with Copilot illustrates that the above logically includes transparency via engagement with mainstream or specialized trade media.

 

 

4)

from:		L. A. Tony Kovach – for MHProNews
to:		Jason Blair @ championhomes.com
date:		Dec 29, 2024, 9:37 AM
subject:		Jason, I’ve not heard from Kevin or the others messaged. Can you lend a hand? Fwd: Kevin Doherty, media request for comment

Jason, I’ve not heard from Kevin or the others messaged. Can you lend a hand?

 

As of 10:21 AM ET, there have been no responses from Champion Homes. Should they respond later, MHProNews will plan to so report.

 

4) About Sarah Janowicz, previously with Champion Homes at the time of these emails that follow. 

from:		L. A. Tony K <latonyk@gmail.com>
to:		Sarah Janowicz @ championhomes.com
date:		Jun 10, 2020, 3:46 PM
subject:		Re: Media outreach

Sarah,

First, thanks again for the replies. Got it on the regional impact and electronic support.

That said, let me pose the following follow up questions on the balance of your comments.

Quoting your reply:

• “Any change in the regulations or the enforcement of regulations that reduce restrictions on the placement of HUD Code homes would be positive for the entire manufactured home industry.”
• “Skyline Champion, like many other manufactured home builders, is working with and supports MHI’s efforts.”

As the links and references provided in the MHProNews questions reflect, on paper, MHI has said it wants the full implementation of “enhanced preemption” provision of the Manufactured Housing Improvement Act of 2000.  As the first bullet you above you provided says, that would benefit the entire industry. With that noted, the questions.

Follow up Question 1a) But doesn’t MHI’s failure to robustly and routinely push for enforcement call into question the wisdom of blind loyalty by Skyline Champion to “MHI’s efforts?” First, what efforts?  When MHI leaders have met with HUD officials, why isn’t the MHIA’s Enhanced Preemption enforcement at the top of the list on the push? Letters they have sent may never be seen by the person it addresses. By contrast, when a face-to-face meeting occurs between HUD and MHI, shouldn’t that be raised each time until enforcement of preemption is a reality?

Question 1b) Additionally, wouldn’t MHI robustly pressing HUD in every meeting be in the best interest of shareholders?

Quoting your reply:

• Expanding home buyer access to financing would benefit the entire industry.

Note that editorially, we would concur with that statement. However, that begs a follow up query.

Follow up question 2) Then why has MHI pushed for the “new class of manufactured homes” now called “CrossMod^TM” homes, when that program reportedly has virtually no traction? Rephrased, isn’t it prudent and in the interest of shareholders to off competitive lending on all manufactured homes instead of only a select few that are hardly selling?

As before, your reply below the question will help our mutual clarity and accuracy once we publish our report. Thanks, we look forward to your reply.

Tony

[For MHProNews]

 

5) Sarah Janowicz had said in a prior emailed reply to MHProNews related to that thread: “I’ll circulate the commentary I provided to our legal and management team to ensure they are okay with the statements being on the record.”

 

6) In a subsequent email Janowicz said the following on behalf of Champion Homes (then Skyline Champion NYSE: SKY). To see the screen capture of the Janowicz email for Champion Homes image below full size, click here and follow the prompts.

from:		Sarah Janowicz @championhomes.com
to:		L. A. Tony Kovach for MHProNews
date:		Jun 11, 2020, 11:36 AM
subject:		RE: Media outreach

Hi Tony – We appreciate the opportunity to provide responses to clarify questions relating to our earnings call. While we also appreciate the interest on getting our feedback on the additional follow up questions,  we are declining to provide additional information at this time.

…

Sarah Janowicz

Director of Investor Relations and External Reporting
Skyline Champion Corporation
755 West Big Beaver Rd., Suite 1000
Troy, MI 48084

 

 

As of 1 PM ET on 12.30.2024 there have been no known replies to these inquiries to Champion Homes.

 

7) Why it Matters

In no particular order of importance are the following facts and concerns.

a) Champion says that they are transparent. Yet the declined to respond to significant questions about CrossMods.

b) Part of the pitch for CrossMods is supposed to be that they were supposed to open up new markets for manufactured housing and help make manufactured housing more palatable to the general public with a supposedly hipper name. But despite MHI’s so-called research and focus group claims about CrossMods, the program has yet to achieve any significant volume. The volume is so low that neither Clayton Homes, nor Champion Homes, nor Cavco Industries, nor MHI will say how many company or total CrossMods have been sold.  The following was uploaded onto the MHProNews website as part of a report dated December 18, 2019. Click here and follow the prompts to see that in a larger or full size for easier reading.  Per MHI: “While nine percent of respondents said they would consider purchasing a manufactured home, 46 percent said they would purchase a CrossMod^TM.”

 

That claim by MHI is problematic for several reasons. Among them, Freddie Mac subsequently did research on consumer willingness to consider buying a HUD Code (presumably mainstream) manufactured housing, and they reported that 56 percent said they would consider a manufactured home purchase. That’s higher than what MHI’s research claimed on CrossMod^® and several times higher than what MHI claimed are interested in mainstream manufactured homes.

c) But further, the logic of MHI in creating CrossMods was arguably flawed from the start. If you have a great product, but it is misunderstood for whatever reasons, the logical thing to do is to properly educate the public about why their conceptions are mistaken.  MHI commission research in 2004 and the next year (2005) what came to be called the Roper Report was released by MHI.  They encouraged the creation of a GoRVing style education/marketing program. MHI’s now late vice president of communications, Bruce Savage, said in his own words that it was an opportunity in disguise because they could turn lemons into lemonade. More specifically, Savage said if MHI launched that plan they would be “unleashing potential sales” because “perception is reality” for consumers.  Savage’s points were apt, which begs the question, why didn’t MHI follow their own VP’s and the Roper Research advice?

 

 

d) Savage is one of the MHI prior presidents/CEOs, and vice presidents whose names were removed from their own website. Former MHI VP Tom Heinemann is one of them. Heinemann reportedly was part of the advisory team with a GSE that ended up in a behind closed door meeting with MHI members that resulted in CrossMods.  Why haven’t those meeting minutes been released?

 

e) But much of the premise for CrossMods was flawed because, as MHI leaders know, “enhanced preemption” for ALL HUD Code manufactured homes is federal law.  Indeed, as our report Champion Homes last week shown above and linked again below revealed, Champion claims that CrossMods cost more than a modular home.

 

f) If that’s true, that CrossMods cost more than a modular home, then the rationale for the program was perhaps worse than was previously thought. By definition, a modular home meets the building requirements for conventional housing in a specific city, town, county, or state. Why create a program for a new name on a new product when that product isn’t modular? It makes no business, marketing, or other common sense. The only thing that is left to believe about CrossMods is that it had a purpose that wasn’t straightforward. After all, many HUD Code plants also produce modular housing too.

 

 

8) Under SEC rules, it is the duty of corporate officials to keep the interests of shareholders top of mind. A similar fiduciary duty may also exist for MHI board members.  The Legal Information Institute at Cornell University (LII) says in part the following.

Fiduciary duty is the legal obligation to act in the best interest of another person or entity. Learn about the types of fiduciary duties, such as care, loyalty, good faith, and confidentiality, and how they apply to corporations, charities, and other relationships.

LII also said this.

Duty of Disclosure

This duty requires directors to act with “complete candor.” In certain circumstances, this requires the directors to disclose to the stockholders “all of the facts and circumstances” relevant to the directors’ decision.

See Amgen Inc. v. Harris, 577 U.S. (2016).

As the report linked here outlined, there are no known statements by Champion Homes about the problems related to their lack of disclosure on issues related to CrossMods, HUD’s failure to consistently enforce enhanced preemption, or the apparent conflicts of interest that exist between producers and retailers of manufactured homes vs. large community operators that apparently like the zoning barriers because they think (right or wrong) that it somehow benefits their business model.

 

 

 

 

9) The Blue Orca dustup sent Sun Communities (SUI) shares down sharply.  Cavco Industries’ (CVCO share value also fell sharply after the SEC announced their probe of that MHI member firm.

 

 

10) While it is unclear why Yost is out and Larsen is in, it is interesting to recall that MHI apparently was unconcerned about Joe Stegmayer when he was named by the SEC in their legal case against Cavco. Stegmayer continued on as MHI chair. Later, Stegmayer paid a 7 figure fine to settle the matter.  The photo below is of Stegmayer next to Mark Yost.

 

 

11) As was noted above, MHProNews reached out to multiple members of Champion Homes for comment on the report linked here. AI powered Copilot finds no evidence online that they have addressed those concerns.

 

 

12) That can lead someone logically to this possible conclusion illustrated by the following Q&A by MHProNews with Bing’s Copilot.

Based on those search results, and that MHProNews report and analysis https://www.manufacturedhomepronews.com/champion-homes-sky-curious-investor-claimsmissing-info-champion-in-1998-vs-2024-attention-former-and-future-president-trump-hud-sec-nominee-eric-scott-turner-manufactured-housing-analysis/ is it possible that Champion Homes has failed in its requirements for material disclosures and failed in its fiduciary duties to shareholders and stakeholders?

 

13)

Is it correct in saying that ADU production soared in California after statewide preemption helped overcome local zoning barriers, correct? Logically, if federal “enhanced preemption” was consistently enforced by HUD, then isn’t it reasonable to believe that mainstream manufactured housing production could similarly soar? And if that is true, then haven’t MHI members like Champion Homes failed their investors by not making that potential a reality by needed legal efforts or other lawful advocacy means?

Congress held hearings on why that authority wasn’t enforced.

 

 

16) There is an array of research that points out why manufactured housing ought to be doing much better than it is, because of the importance of manufactured homes has an inherently affordable housing option. It seems that it may only be a matter of time before investors and/or public officials realize that some players at MHI, which includes publicly traded companies that could include Champion Homes and others, will be the subject of litigation or perhaps even “felony” criminal legal action. Who said? See the linked reports that follow.

 

 

 

 

 

 

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