With almost 2 months since the combination of Skyline and Champion – producers of manufactured home, modular housing, and other forms of factory-crafted construction – has occurred, it’s an apt time to take a snapshot of the new #2 in HUD Code home industry.
As with several other publicly-traded operations previously analyzed on the Daily Business News on MHProNews, this first look will begin with their own internally crafted information.
It is worth noting again that often useful industry insights are gained – not only for investors, but for others in the manufactured home industry – by reviewing such IR (investor relations) presentations.
These documents – properly understood – can also be useful for advocates, lenders, researchers, and public officials.
Typical of such reports are mostly accurate industry information.
The Daily Business News says “mostly,” as there are still times – for example, Cavco’s IR presentation – that cites information that is contradicted by other sources.
A specific example is the manufactured home community count, which matters very much to those in the community segment of the industry.
Frank Rolfe, Dave Reynolds, George Allen, Manufactured Home Community Controversy Continues
MHProNews is a strong believer – as are others who are forward-looking in MHVille – that accuracy in data matters. Any given company, as well as the industry at large, benefit from accurate data and facts.
Disclaimers
As with any source cited, or any report done by MHProNews or MHLivingNews, the relaying of information or an analysis should not be construed as an endorsement, nor its opposite.
Facts, insights and information are being conveyed for the sake of a deeper, richer understanding of the manufactured home industry in specific, or factory-built housing in general.
We’d also note that when we see an inaccuracy and mention it – again, using the example of the community count – that doesn’t mean that there may not be others.
We hold no stocks, nor any other positions for or against, this operation, which operates under Skyline Champion Corp. (NYSE:SKY), and is covered as part of our evening/nightly market snapshot. Last night’s closing numbers are found at this link.
Market Snapshot
Given the above disclaimers, the presentation by Skyline Champion (SKY) is one of the better ones for insights provided by publicly traded firms in manufactured housing.
While it is graphically rich, it could benefit from more photos that exemplify the full range of housing options offered.
Producers of HUD Code manufactured homes or modular housing often show the fanciest and biggest models they can. That makes sense for showcasing potential and for giving a good first impression.
But such reports – Skyline Champion or others – should arguably show more entry level housing too. Why? There are more low-to-mid range potential buyers than those at the top that may want a modular waterfront getaway.
“Why Advocates Need to Rethink Manufactured Home Quality,” Harvard, GSE, Genz, “High Satisfaction”
IR presentations have certain limitations. Not being specialized attorneys in public companies, we claim no expertise on those legal nuances in an IR presentation. That said, when Skyline Champion says that there is significant upside for their business, or the industry in general – with proper management – consider that an understatement.
Why?
Several tech giants have spawned or inspired leaders who have launched factory-built housing enterprises.
MHProNews recently noted that Japanese based SoftBank has bet big on Menlo Park, CA based Katerra.
Billion Dollar Startup Modular Builder, Using Robotics, Could Soon Rival Clayton Homes’ Total Sales
They are only the latest higher profile move by a factory-builder to address the affordable housing crisis.
- With approximately 8.3 million housing unit shortage,
- and with numerous voices inside and beyond the factory-built housing world having said for years that the construction gap can’t be closed by site builders alone,
- the upside for factory home building should be obvious.
This snapshot has selected those slides which in our view reflects the most interesting items to the greatest number of readers. A comparison between quality concerns of manufactured homes vs. conventional housing is launched in the related report, linked below.
Investors, Heartbroken Home Owners, Site Building Giant DR Horton, and Manufactured Housing
To see the entire SKY presentation, you can click the download linked here. “We Provide, You Decide.” © ##(News, analysis, and commentary.)
(Third-party images and content are provided under fair use guidelines.) See Related Reports, linked further below.
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Related Reports:
Realtor University ® “The Market for Manufactured Homes,” Research by Scholastica Cororaton, Certified Business Economist, Highlights – manufacturedhomelivingnews.com
Compared with the unregulated mobile/trailer homes of the past, the manufactured homes built after 1976 have a higher level of safety, durability, and quality, and the small fraction of homes damaged during hurricanes attests to their safety and durability.” – Scholastica “Gay” D. Cororaton, Certified Business Economist , National Association of Realtors ® (NAR).
Winners and Losers, 5 Midwestern States, Manufactured Home Shipment Breakdown
Another $1.5 Billion From FEDs, Disaster Dollars Spell Opportunities, Factory Builder$ Take Note
