10-Q 1 sky-20230930.htm 10-Q 10-Q
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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2023

or

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number: 001-04714

Skyline Champion Corporation

(Exact name of registrant as specified in its charter)

 

Indiana

35-1038277

(State of Incorporation)

(I.R.S. Employer Identification No.)

 

755 West Big Beaver Road, Suite 1000

Troy, Michigan

48084

(Address of Principal Executive Offices)

(Zip Code)

 

(248) 614-8211

(Registrant’s telephone number, including area code)

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading Symbol(s)

 

Name of each exchange on which registered

Common Stock

 

SKY

 

New York Stock Exchange

 

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filers,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act:):

 

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

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.

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No

Number of shares of common stock outstanding as of October 23, 2023: 57,617,679

 

 


 

SKYLINE CHAMPION CORPORATION

FORM 10-Q

 

TABLE OF CONTENTS

PART I – FINANCIAL INFORMATION

 

 

 

Item 1. Financial Statements

 

Condensed Consolidated Balance Sheets as of September 30, 2023 (unaudited) and April 1, 2023

1

Condensed Consolidated Income Statements (unaudited) for the three and six months ended September 30, 2023 and October 1, 2022

2

Condensed Consolidated Statements of Comprehensive Income (unaudited) for the three and six months ended September 30, 2023 and October 1, 2022

3

Condensed Consolidated Statements of Cash Flows (unaudited) for the six months ended September 30, 2023 and October 1, 2022

4

Condensed Consolidated Statements of Stockholders’ Equity (unaudited) for the three and six months ended September 30, 2023 and October 1, 2022

5

Notes to Condensed Consolidated Financial Statements

6

 

 

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

14

 

 

Item 3. Quantitative and Qualitative Disclosures About Market Risk

26

 

 

Item 4. Controls and Procedures

27

 

 

PART II – OTHER INFORMATION

 

 

 

Item 1. Legal Proceedings

28

 

 

Item 6. Exhibits

29

 

 

SIGNATURES

30

 

i


 

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

Skyline Champion Corporation

Condensed Consolidated Balance Sheets

(Dollars and shares in thousands, except per share amounts)

 

 

 

September 30,
2023

 

 

April 1,
2023

 

 

 

(unaudited)

 

 

 

 

ASSETS

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

701,155

 

 

$

747,453

 

Trade accounts receivable, net

 

 

55,097

 

 

 

67,296

 

Inventories, net

 

 

182,239

 

 

 

202,238

 

Other current assets

 

 

39,447

 

 

 

26,479

 

Total current assets

 

 

977,938

 

 

 

1,043,466

 

Long-term assets:

 

 

 

 

 

 

Property, plant, and equipment, net

 

 

191,766

 

 

 

177,125

 

Goodwill

 

 

196,574

 

 

 

196,574

 

Amortizable intangible assets, net

 

 

40,299

 

 

 

45,343

 

Deferred tax assets

 

 

19,798

 

 

 

17,422

 

Other noncurrent assets

 

 

242,800

 

 

 

82,794

 

Total assets

 

$

1,669,175

 

 

$

1,562,724

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

50,829

 

 

$

44,702

 

Other current liabilities

 

 

192,322

 

 

 

204,215

 

Total current liabilities

 

 

243,151

 

 

 

248,917

 

Long-term liabilities:

 

 

 

 

 

 

Long-term debt

 

 

12,430

 

 

 

12,430

 

Deferred tax liabilities

 

 

6,417

 

 

 

5,964

 

Other liabilities

 

 

66,984

 

 

 

62,412

 

Total long-term liabilities

 

 

85,831

 

 

 

80,806

 

 

 

 

 

 

 

Stockholders' Equity:

 

 

 

 

 

 

Common stock, $0.0277 par value, 115,000 shares authorized, 57,162 and 57,108 shares issued as of September 30, 2023 and April 1, 2023, respectively

 

 

1,587

 

 

 

1,585

 

Additional paid-in capital

 

 

530,645

 

 

 

519,479

 

Retained earnings

 

 

821,628

 

 

 

725,672

 

Accumulated other comprehensive loss

 

 

(13,667

)

 

 

(13,735

)

Total stockholders’ equity

 

 

1,340,193

 

 

 

1,233,001

 

Total liabilities and stockholders’ equity

 

$

1,669,175

 

 

$

1,562,724

 

 

See accompanying Notes to Condensed Consolidated Financial Statements.

1


 

Skyline Champion Corporation

Condensed Consolidated Income Statements

(Unaudited, dollars in thousands, except per share amounts)

 

 

 

Three months ended

 

 

Six months ended

 

 

 

September 30,
2023

 

 

October 1,
2022

 

 

September 30,
2023

 

 

October 1,
2022

 

Net sales

 

$

464,236

 

 

$

806,825

 

 

$

929,005

 

 

$

1,532,706

 

Cost of sales

 

 

347,747

 

 

 

532,719

 

 

 

682,843

 

 

 

1,029,265

 

Gross profit

 

 

116,489

 

 

 

274,106

 

 

 

246,162

 

 

 

503,441

 

Selling, general, and administrative expenses

 

 

64,454

 

 

 

83,915

 

 

 

134,893

 

 

 

156,197

 

Operating income

 

 

52,035

 

 

 

190,191

 

 

 

111,269

 

 

 

347,244

 

Interest (income), net

 

 

(10,480

)

 

 

(1,974

)

 

 

(19,781

)

 

 

(1,884

)

Other expense (income)

 

 

2,065

 

 

 

 

 

 

2,065

 

 

 

(634

)

Income before income taxes

 

 

60,450

 

 

 

192,165

 

 

 

128,985

 

 

 

349,762

 

Income tax expense

 

 

14,781

 

 

 

48,073

 

 

 

32,047

 

 

 

88,519

 

Net income

 

$

45,669

 

 

$

144,092

 

 

$

96,938

 

 

$

261,243

 

Net income per share:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.80

 

 

$

2.53

 

 

$

1.69

 

 

$

4.59

 

Diluted

 

$

0.79

 

 

$

2.51

 

 

$

1.68

 

 

$

4.55

 

See accompanying Notes to Condensed Consolidated Financial Statements.

2


 

Skyline Champion Corporation

Condensed Consolidated Statements of Comprehensive Income

(Unaudited, dollars in thousands)

 

 

 

Three months ended

 

 

Six months ended

 

 

 

September 30,
2023

 

 

October 1,
2022

 

 

September 30,
2023

 

 

October 1,
2022

 

Net income

 

$

45,669

 

 

$

144,092

 

 

$

96,938

 

 

$

261,243

 

Other comprehensive (loss) income:

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation adjustments

 

 

(2,115

)

 

 

(5,295

)

 

 

68

 

 

 

(7,599

)

Total comprehensive income

 

$

43,554

 

 

$

138,797

 

 

$

97,006

 

 

$

253,644

 

 

See accompanying Notes to Condensed Consolidated Financial Statements.

3


 

Skyline Champion Corporation

Condensed Consolidated Statements of Cash Flows

(Unaudited, dollars in thousands)

 

 

 

Six months ended

 

 

 

September 30,
2023

 

 

October 1,
2022

 

Cash flows from operating activities

 

 

 

 

 

 

Net income

 

$

96,938

 

 

$

261,243

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

 

Depreciation and amortization

 

 

14,378

 

 

 

12,557

 

Amortization of deferred financing fees

 

 

162

 

 

 

175

 

Equity-based compensation

 

 

10,943

 

 

 

7,753

 

Deferred taxes

 

 

(1,919

)

 

 

3,318

 

Loss (gain) on disposal of property, plant, and equipment

 

 

96

 

 

 

(85

)

Foreign currency transaction loss

 

 

76

 

 

 

974

 

Change in assets and liabilities:

 

 

 

 

 

 

Accounts receivable

 

 

12,101

 

 

 

7,633

 

Floor plan receivables

 

 

(2,521

)

 

 

 

Inventories

 

 

20,059

 

 

 

11,540

 

Other assets

 

 

(13,434

)

 

 

(14,489

)

Accounts payable

 

 

4,387

 

 

 

(21,000

)

Accrued expenses and other liabilities

 

 

(12,128

)

 

 

8,947

 

Net cash provided by operating activities

 

 

129,138

 

 

 

278,566

 

Cash flows from investing activities

 

 

 

 

 

 

Additions to property, plant, and equipment

 

 

(22,847

)

 

 

(25,613

)

Cash paid for equity method investment

 

 

(1,000

)

 

 

 

Cash paid for investment in ECN common stock

 

 

(78,858

)

 

 

 

Cash paid for investment in ECN preferred stock

 

 

(64,520

)

 

 

 

Investment in floor plan loans

 

 

(18,466

)

 

 

 

Proceeds from floor plan loans

 

 

10,528

 

 

 

 

Acquisitions, net of cash acquired

 

 

 

 

 

(6,810

)

Proceeds from disposal of property, plant, and equipment

 

 

524

 

 

 

132

 

Net cash used in investing activities

 

 

(174,639

)

 

 

(32,291

)

Cash flows from financing activities

 

 

 

 

 

 

Changes in floor plan financing, net

 

 

 

 

 

3,027

 

Stock option exercises

 

 

224

 

 

 

596

 

Tax payments for equity-based compensation

 

 

(982

)

 

 

(1,363

)

Net cash (used in) provided by financing activities

 

 

(758

)

 

 

2,260

 

Effect of exchange rate changes on cash and cash equivalents

 

 

(39

)

 

 

(6,944

)

Net (decrease) increase in cash and cash equivalents

 

 

(46,298

)

 

 

241,591

 

Cash and cash equivalents at beginning of period

 

 

747,453

 

 

 

435,413

 

Cash and cash equivalents at end of period

 

$

701,155

 

 

$

677,004

 

 

See accompanying Notes to Condensed Consolidated Financial Statements.

4


 

Skyline Champion Corporation

Condensed Consolidated Statements of Stockholders’ Equity

(Unaudited, dollars and shares in thousands)

 

 

 

Three months ended September 30, 2023

 

 

 

Common Stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares

 

 

Amount

 

 

Additional
Paid in
Capital

 

 

Retained
Earnings

 

 

Accumulated
Other
Comprehensive
Loss

 

 

Total

 

Balance at July 1, 2023

 

 

57,133

 

 

$

1,586

 

 

$

524,907

 

 

$

775,980

 

 

$

(11,552

)

 

$

1,290,921

 

Net income

 

 

 

 

 

 

 

 

 

 

 

45,669

 

 

 

 

 

 

45,669

 

Equity-based compensation

 

 

 

 

 

 

 

 

5,515

 

 

 

 

 

 

 

 

 

5,515

 

Net common stock issued under equity-based compensation plans

 

 

29

 

 

 

1

 

 

 

223

 

 

 

(21

)

 

 

 

 

 

203

 

Foreign currency translation adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2,115

)

 

 

(2,115

)

Balance at September 30, 2023

 

 

57,162

 

 

$

1,587

 

 

$

530,645

 

 

$

821,628

 

 

$

(13,667

)

 

$

1,340,193

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six months ended September 30, 2023

 

 

 

Common Stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares

 

 

Amount

 

 

Additional
Paid in
Capital

 

 

Retained
Earnings

 

 

Accumulated
Other
Comprehensive
Loss

 

 

Total

 

Balance at April 1, 2023

 

 

57,108

 

 

$

1,585

 

 

$

519,479

 

 

$

725,672

 

 

$

(13,735

)

 

$

1,233,001

 

Net income

 

 

 

 

 

 

 

 

 

 

 

96,938

 

 

 

 

 

 

96,938

 

Equity-based compensation

 

 

 

 

 

 

 

 

10,943

 

 

 

 

 

 

 

 

 

10,943

 

Net common stock issued under equity-based compensation plans

 

 

54

 

 

 

2

 

 

 

223

 

 

 

(982

)

 

 

 

 

 

(757

)

Foreign currency translation adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

68

 

 

 

68

 

Balance at September 30, 2023

 

 

57,162

 

 

$

1,587

 

 

$

530,645

 

 

$

821,628

 

 

$

(13,667

)

 

$

1,340,193

 

 

 

 

 

 

 

Three months ended October 1, 2022

 

 

 

Common Stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares

 

 

Amount

 

 

Additional
Paid in
Capital

 

 

Retained
Earnings

 

 

Accumulated
Other
Comprehensive
Loss

 

 

Total

 

Balance at July 2, 2022

 

 

56,848

 

 

$

1,573

 

 

$

506,815

 

 

$

444,702

 

 

$

(9,512

)

 

$

943,578

 

Net income

 

 

 

 

 

 

 

 

 

 

 

144,092

 

 

 

 

 

 

144,092

 

Equity-based compensation

 

 

 

 

 

 

 

 

3,793

 

 

 

 

 

 

 

 

 

3,793

 

Net common stock issued under equity-based compensation plans

 

 

77

 

 

 

7

 

 

 

642

 

 

 

(1,074

)

 

 

 

 

 

(425

)

Foreign currency translation adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(5,295

)

 

 

(5,295

)

Balance at October 1, 2022

 

 

56,925

 

 

$

1,580

 

 

$

511,250

 

 

$

587,720

 

 

$

(14,807

)

 

$

1,085,743

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six months ended October 1, 2022

 

 

 

Common Stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares

 

 

Amount

 

 

Additional
Paid in
Capital

 

 

Retained
Earnings

 

 

Accumulated
Other
Comprehensive
Loss

 

 

Total

 

Balance at April 2, 2022

 

 

56,838

 

 

$

1,573

 

 

$

502,846

 

 

$

327,902

 

 

$

(7,208

)

 

$

825,113

 

Net income

 

 

 

 

 

 

 

 

 

 

 

261,243

 

 

 

 

 

 

261,243

 

Equity-based compensation

 

 

 

 

 

 

 

 

7,753

 

 

 

 

 

 

 

 

 

7,753

 

Net common stock issued under equity-based compensation plans

 

 

87

 

 

 

7

 

 

 

651

 

 

 

(1,425

)

 

 

 

 

 

(767

)

Foreign currency translation adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(7,599

)

 

 

(7,599

)

Balance at October 1, 2022

 

 

56,925

 

 

$

1,580

 

 

$

511,250

 

 

$

587,720

 

 

$

(14,807

)

 

$

1,085,743

 

 

Components of accumulated other comprehensive loss consisted solely of foreign currency translation adjustments.

See accompanying Notes to Condensed Consolidated Financial Statements.

5


 

Skyline Champion Corporation

Notes to Condensed Consolidated Financial Statements

 

1. Basis of Presentation and Business

Nature of Operations: Skyline Champion Corporation's (the “Company”) operations consist of manufacturing, retail, construction services, and transportation activities. At September 30, 2023, the Company operated 39 manufacturing facilities throughout the United States (“U.S.”) and five manufacturing facilities in western Canada that primarily construct factory-built, timber-framed manufactured and modular houses that are sold primarily to independent retailers, builders/developers, and manufactured home community operators. In addition to its core home building business, the Company provides construction services to install and set-up factory-built homes. The Company’s retail operations consist of 31 sales centers that sell manufactured houses to consumers across the U.S. The Company’s transportation business engages independent owners/drivers to transport recreational vehicles throughout the U.S. and Canada and manufactured houses in certain regions of the U.S. The Company also has a holding company located in the Netherlands.

Basis of Presentation: The accompanying unaudited condensed consolidated financial statements of the Company have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) for Quarterly Reports on Form 10-Q and Article 10 of SEC Regulation S-X. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with United States Generally Accepted Accounting Principles (“U.S. GAAP”) have been condensed or omitted pursuant to such rules and regulations.

The condensed consolidated financial statements include the accounts of the Company and its majority-owned subsidiaries after elimination of intercompany balances and transactions. In the opinion of management, these statements include all normal recurring adjustments necessary to fairly state the Company’s consolidated results of operations, cash flows, and financial position. The Company has evaluated subsequent events after the balance sheet date through the date of the filing of this report with the SEC. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes to the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K, which was filed with the SEC on May 30, 2023 (the “Fiscal 2023 Annual Report”).

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and the accompanying notes thereto. Actual results could differ from those estimates. The condensed consolidated income statements, condensed consolidated statements of comprehensive income, and condensed consolidated statements of cash flows for the interim periods are not necessarily indicative of the results of operations or cash flows for the full year.

The Company’s fiscal year is a 52- or 53-week period that ends on the Saturday nearest to March 31. The Company’s current fiscal year, “fiscal 2024,” will end on March 30, 2024 and will include 52 weeks. References to “fiscal 2023” refer to the Company’s fiscal year ended April 1, 2023. The three and six months ended September 30, 2023 and October 1, 2022 each included 13 and 26 weeks, respectively.

The Company’s allowance for credit losses on financial assets measured at amortized cost reflects management’s estimate of credit losses over the remaining expected life of such assets, measured primarily using historical experience, as well as current economic conditions and forecasts that affect the collectability of the reported amount. Expected credit losses for newly recognized financial assets, as well as changes to expected credit losses during the period, are recognized in earnings. Accounts receivable are reflected net of reserves of $2.6 million and $1.7 million at September 30, 2023 and April 1, 2023, respectively.

Floor plan receivables consist of loans the Company purchased from an independent financial institution in the first quarter of fiscal 2024 for $18.5 million, of which approximately $8.0 million remains outstanding at September 30, 2023, and amounts loaned by the Company through the financial institution to certain independent retailers for purchases of homes manufactured by the Company, of which $2.6 million was outstanding at September 30, 2023, both of which are carried net of payments received and recorded at amortized cost. The Company intends to hold the floor plan receivables until maturity or payoff. These loans are serviced by the financial institution for which we pay a servicing fee. Upon execution of the financing arrangement, the loans are generally payable at the earlier of the sale of the underlying home or two years from the origination date. At September 30, 2023, Floor Plan Receivables are included in Other Current Assets and Other Noncurrent Assets in the Condensed Consolidated Balance Sheets.

The floor plan receivables are collateralized by the related homes, mitigating loss exposure. The Company and the financial institution evaluate the credit worthiness of each independent retailer prior to credit approval, including reviewing the independent retailer’s payment history, financial condition, and overall economic environment. We evaluate the risk of credit loss in aggregate on existing loans with similar terms, based on historic experience and current economic conditions, as well as individual retailers with past due balances or other indications of heightened credit risk. The allowance for credit losses related to floor plan receivables was not material as of September 30, 2023. Loans are considered past due if any required interest or curtailment payment remains unpaid 30 days after the due date. Receivables are placed on non-performing status if any interest or installment payments are past due over 90 days. Loans are placed on nonaccrual status when interest payments are past due over 90 days. At September 30, 2023, there were no floor plan receivables on nonaccrual status and the weighted-average age of the floor plan receivables was nine months.

 

6


Skyline Champion Corporation

Notes to Condensed Consolidated Financial Statements - Continued

 

Interest income from floor plan receivables is recognized on an accrual basis and is included in Interest Income in the accompanying Condensed Consolidated Income Statements. Interest income for the three and six months ended September 30, 2023 was $0.3 million and $0.6 million, respectively. There were no floor plan receivables as of October 1, 2022 or related interest income for the three and six months then ended.

In May 2022, the Company acquired certain operating assets from Manis Custom Builders, Inc. ("Manis"). In July 2022, the Company acquired 12 Factory Expo retail sales centers from Alta Cima Corporation. The purchase price and net assets acquired for both transactions were not material to the accompanying condensed consolidated financial statements.

There were no accounting standards recently issued that are expected to have a material impact on the Company’s financial position or results of operations.

2. Inventories, net

The components of inventory, net of reserves for obsolete inventory, were as follows:

 

(Dollars in thousands)

 

September 30,
2023

 

 

April 1,
2023

 

Raw materials

 

$

92,121

 

 

$

100,379

 

Work in process

 

 

21,239

 

 

 

23,157

 

Finished goods and other

 

 

68,879

 

 

 

78,702

 

Total inventories, net

 

$

182,239

 

 

$

202,238

 

 

At September 30, 2023 and April 1, 2023, reserves for obsolete inventory were $9.1 million and $7.9 million, respectively.

 

3. Property, Plant, and Equipment

Property, plant, and equipment are stated at cost. Depreciation is calculated primarily on a straight-line basis, generally over the following estimated useful lives: land improvements – 3 to 10 years; buildings and improvements – 8 to 25 years; and vehicles and machinery and equipment – 3 to 8 years. Depreciation expense for the three months ended September 30, 2023 and October 1, 2022 was $4.7 million and $4.2 million, respectively. Depreciation expense for the six months ended September 30, 2023 and October 1, 2022 was $9.3 million and $7.8 million, respectively.

The components of property, plant, and equipment were as follows:

 

(Dollars in thousands)

 

September 30,
2023

 

 

April 1,
2023

 

Land and improvements

 

$

42,676

 

 

$

41,749

 

Buildings and improvements

 

 

131,386

 

 

 

119,226

 

Machinery and equipment

 

 

100,694

 

 

 

91,007

 

Construction in progress

 

 

31,035

 

 

 

30,010

 

Property, plant, and equipment, at cost

 

 

305,791

 

 

 

281,992

 

Less: accumulated depreciation

 

 

(114,025

)

 

 

(104,867

)

Property, plant, and equipment, net

 

$

191,766

 

 

$

177,125

 

 

 

7


Skyline Champion Corporation

Notes to Condensed Consolidated Financial Statements - Continued

 

 

4. Goodwill, Intangible Assets, and Cloud Computing Arrangements

Goodwill

Goodwill represents the excess of the cost of an acquired business over the fair value of the identifiable tangible and intangible assets acquired and liabilities assumed in a business combination. At both September 30, 2023 and April 1, 2023, the Company had goodwill of $196.6 million. At September 30, 2023, there were no accumulated impairment losses related to goodwill.

Intangible Assets

The components of amortizable intangible assets were as follows:

 

(Dollars in thousands)

 

September 30, 2023

 

 

April 1, 2023

 

 

 

Customer
Relationships
& Other

 

 

Trade
Names

 

 

Total

 

 

Customer
Relationships
& Other

 

 

Trade
Names

 

 

Total

 

Gross carrying amount

 

$

66,019

 

 

$

21,499

 

 

$

87,518

 

 

$

66,013

 

 

$

21,497

 

 

$

87,510

 

Accumulated amortization

 

 

(36,200

)

 

 

(11,019

)

 

 

(47,219

)

 

 

(32,103

)

 

 

(10,064

)