“Heath [Jenkins] not only brings years of industry retail experience, and strong leadership capabilities exemplified by the strength and tenure of the Regional Homes’ team but also exhibits an unwavering commitment to put the customer first. These are traits that perfectly align with our core operating principles.” So said Mark Yost, Skyline Champion (SKY) President, and Chief Executive Officer (CEO) according to the press release that follows in Part I of this report and analysis. Based on known data that will be explored further below (Part III), Skyline Champion is the #2 producer of HUD Code manufactured homes in the United States.
Theses document and media releases carry the typical legal disclaimers found in similar investor pitches for a publicly traded company.
Among the points not found in the first press release posted below by Skyline Champion is a reference to the deal made by Skyline Champion with ECN-Triad Financial. Note that deal was mentioned in a prior release, which is provided in Part II, below.
Restating that, potential investors, shareholders, and manufactured home industry stakeholders who are only looking at the most recent press release and are not looking at the bigger picture beyond the Regional Homes deal are arguably missing significant insights.
So, MHProNews will provide that larger context, which includes insights from others beyond or in MHVille in Part III of this report.
Note, for example, that these deals were announced shortly before the first of what now appears to be a series of antitrust lawsuits involving several Manufactured Housing Institute (MHI) member firms. Skyline Champion happens to be an MHI member. Skyline Champion (SKY) CEO Mark Yost has served for some time on MHI’s board of directors.
Part I Skyline Champion Announces Closing of the Acquisition of Regional Homes
October 13, 2023 at 05:22 PM Eastern Daylight Time
TROY, Mich.–(BUSINESS WIRE)–Champion Home Builders and Champion Retail Housing, subsidiaries of Skyline Champion Corporation (NYSE: SKY) (“Skyline Champion”) today announced the closing of its previously announced acquisition of Regional Enterprises LLC, and related companies (collectively, “Regional Homes”).
“We are excited to announce the closing and to welcome Regional Homes to the Skyline Champion family,” said Mark Yost, Skyline Champion’s President, and Chief Executive Officer. “We believe Regional Homes is an excellent strategic fit given their customer-centric selling approach which goes together with our on-going efforts to enhance our customers’ buying experience. Regional Homes’ strong presence in Alabama and Mississippi strengthens Skyline Champion’s market positioning as a leading provider of attainable housing solutions by expanding our captive retail and manufacturing distribution in this large region. We expect this transaction to generate solid returns over time with meaningful stakeholder value creation from day one, supported by Regional Homes’ attractive margin profile, its talented team, as well as available synergy capture.”
In coordination with the closing of the transaction, Skyline Champion is pleased to announce that Heath Jenkins will serve as the President of the Company’s captive retail operations. “We are fortunate to add Heath to the Skyline Champion team,” said Mark Yost. “Heath not only brings years of industry retail experience, and strong leadership capabilities exemplified by the strength and tenure of the Regional Homes’ team but also exhibits an unwavering commitment to put the customer first. These are traits that perfectly align with our core operating principles.”
The purchase price was approximately $313 million, net of cash acquired, plus assumed debt, primarily related to inventory floor plan liabilities, of $93 million. In addition to the purchase price, the transaction is subject to an earnout provision as well as customary net working capital adjustments. Skyline Champion funded the acquisition with cash on hand and $30 million of the Company’s common stock.
About Skyline Champion Corporation:
Skyline Champion Corporation (NYSE: SKY) is a leading producer of factory-built housing in North America and employs approximately 7,600 people. With more than 70 years of homebuilding experience and 44 manufacturing facilities throughout the United States and western Canada, Skyline Champion 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, Skyline Champion provides construction services to install and set-up factory-built homes, operates a factory-direct retail business with 31 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.
Skyline Champion builds homes under some of the most well-known brand names in the factory-built housing industry including Skyline Homes, Champion Home Builders, Genesis Homes, Athens Park Models, Dutch Housing, Atlantic Homes, Excel Homes, Homes of Merit, New Era, Redman Homes, ScotBilt Homes, Shore Park, Silvercrest, Titan Homes in the U.S. and Moduline and SRI Homes in western Canada.
About Regional Homes:
Headquartered in Flowood, MS, Regional Homes is a manufactured and modular housing company. With over 1,200 employees, three manufacturing facilities, and 43 retail locations throughout the Southeast, Regional Homes is the fourth largest company in the industry, with the largest independent retail footprint. Since its founding in 2006, Regional Homes has sold over 30,000 manufactured homes and has built a reputation of exemplary service and customer satisfaction. In addition to manufacturing and retailing, other turnkey services provided with home purchases include site preparation, installation, furnishing, servicing, and maintenance. Regional Homes also maintains strong relationships with federal and state agencies by providing disaster relief housing programs in Texas, Mississippi, Florida, Alabama, and Louisiana.
With a distinguished company culture, Regional Homes strikes a balance of teamwork, competitiveness, and discipline that creates a cohesive and supportive environment. It is dedicated to the continued development of a collaborative and thriving environment for our staff, as well as to producing an exceptional home-buying experience for our customers.
Forward-Looking Statements
Statements in this press release, including certain statements regarding Skyline Champion’s strategic initiatives, and future market demand 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 Skyline Champion. 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 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; 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 April 1, 2023 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 Skyline Champion 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. Skyline Champion 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. … ##
The IR contact info is omitted by MHProNews. This is a report and analysis of SKY’s deal, not a plug of the firm or their stock.
Note that SKY used Berkshire Hathaway owned BusinessWire for their media release.
Part II
Skyline Champion Announces Acquisition of Regional Homes
August 28, 2023
TROY, Mich.–(BUSINESS WIRE)– Champion Home Builders and Champion Retail Housing, subsidiaries of Skyline Champion Corporation (NYSE: SKY) (“Skyline Champion”) today announced a definitive agreement to acquire Regional Enterprises LLC, and related companies (collectively, “Regional Homes”). Regional Homes is the fourth largest HUD manufacturer in the United States and operates three manufacturing facilities in Alabama and 43 retail sales centers across the southeast. They sold approximately 5,000 new homes and had estimated revenue of approximately $523 million for the year ended December 31, 2022, and generated estimated EBITDA of approximately $84 million for the same period.
“We are excited to welcome Regional Homes and its 1,200 employees to the Skyline Champion family,” said Mark Yost, Skyline Champion’s President and Chief Executive Officer. “We believe Regional Homes is an excellent fit given their customer-centric selling approach which goes hand-in-hand with our on-going efforts to enhance our customers’ buying experience. The transaction is expected to accomplish several objectives within our strategic framework for profitable growth. Notably, Regional Homes’ strong presence in the large markets of Alabama and Mississippi helps expand our captive retail and manufacturing distribution in that region. We expect this transaction to generate solid returns over time with meaningful stakeholder value creation from day one, supported by Regional Homes’ attractive margin profile, its talented team, as well as available synergy capture.”
Heath Jenkins, owner of Regional Homes commented, “We couldn’t be more excited to partner with a company that not only has a reputation of excellence in our industry, but one that perfectly complements our business model and strategic goals. And with Skyline Champion’s recent announcement of their partnership with ECN Capital Corporation, our capacity to provide tangible value to our customers has increased exponentially. This transaction provides a significant opportunity to make a positive impact for our customers and employees. The team at Skyline Champion has been able to witness the unique culture we have developed at Regional Homes firsthand. Their leadership has shown tremendous support in our abilities, but most of all, our people – who are what make this company so special. I’m confident that with these alliances, we are on the path to something great.”
The purchase price will be approximately $328 million plus assumed debt, primarily related to inventory floor plan liabilities, of $130 million. In addition to the purchase price, the transaction is subject to an earnout provision as well as customary net working capital adjustments. Skyline Champion expects to fund the acquisition with cash on hand and $30 million of the Company’s common stock, which is subject to certain restrictions. The transaction is subject to regulatory approval and is expected to close during the Company’s fiscal 2024 third quarter.
Conference Call and Webcast Information:
Skyline Champion management will host a conference call on August 28, 2023, at 9:00 a.m. Eastern Time, to discuss this transaction. A slide presentation discussing the transaction has been published in the Events & Presentations section of Skyline Champion’s website.
Investors and other interested parties can listen to a webcast of the live conference call by logging onto the Investor Relations section of Skyline Champion’s website at skylinechampion.com. The online replay will be available on the same website immediately following the call.
The conference call can also be accessed by dialing (877) 407-4018 (domestic) or (201) 689-8471 (international). A telephonic replay will be available approximately two hours after the call by dialing (844) 512-2921, or for international callers, (412) 317-6671. The passcode for the live call and the replay is 13740908. The replay will be available until 11:59 P.M. Eastern Time on September 11, 2023.
About Skyline Champion Corporation:
Skyline Champion Corporation (NYSE: SKY) is a leading producer of factory-built housing in North America and employs approximately 7,600 people. With more than 70 years of homebuilding experience and 44 manufacturing facilities throughout the United States and western Canada, Skyline Champion 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, Skyline Champion provides construction services to install and set-up factory-built homes, operates a factory-direct retail business with 31 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.
Skyline Champion builds homes under some of the most well-known brand names in the factory-built housing industry including Skyline Homes, Champion Home Builders, Genesis Homes, Athens Park Models, Dutch Housing, Atlantic Homes, Excel Homes, Homes of Merit, New Era, Redman Homes, ScotBilt Homes, Shore Park, Silvercrest, Titan Homes in the U.S. and Moduline and SRI Homes in western Canada.
About Regional Homes:
Headquartered in Flowood, MS, Regional Homes is a manufactured and modular housing company. With over 1,200 employees, three manufacturing facilities, and 43 retail locations throughout the Southeast, Regional Homes is the 4th largest company in the industry, with the largest independent retail footprint. Since its founding in 2006, Regional Homes has sold over 30,000 manufactured homes and has built a reputation of exemplary service and customer satisfaction. In addition to manufacturing and retailing, other turnkey services provided with home purchases include site preparation, installation, furnishing, servicing, and maintenance. Regional Homes also maintains strong relationships with federal and state agencies by providing disaster relief housing programs in Texas, Mississippi, Florida, Alabama, and Louisiana.
With a distinguished company culture, Regional Homes strikes a balance of teamwork, competitiveness, and discipline that creates a cohesive and supportive environment. It is dedicated to the continued development of a collaborative and thriving environment for our staff, as well as to producing an exceptional home-buying experience for our customers.
Forward-Looking Statements
Certain statements made in this press release and in other written or oral statements made by us or on our behalf are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 (“PSLRA”). A forward-looking statement is a statement that is not a historical fact and, without limitation, includes any statement that may predict, forecast, indicate or imply future results, performance or achievements, including without limitation, statements relating to the planned acquisition of Regional Homes and timing thereof, projected accretion to financial and production results, estimates of Regional Homes’ revenue and EBITDA, our earnings growth, and expected synergies related to the acquisition. Skyline Champion’s strategic initiatives, and future market demand are also intended to be covered by the safe harbor for “forward-looking statements” provided by the PSLRA. 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 Skyline Champion. 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 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; 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 April 1, 2023 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 Skyline Champion 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. Skyline Champion 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.
Non-GAAP Financial Measures
In addition to disclosing financial measures that are determined in accordance with GAAP, we present and discuss certain non-GAAP financial measures, as supplemental measures to help investors evaluate our operational performance. EBITDA is defined as net income before taxes attributable to Regional Homes before interest income, interest expense, and depreciation and amortization. See below for a reconciliation of EBITDA of Regional Homes to the most directly comparable GAAP measure of net income before taxes. Measures related to Regional Homes’ financial results are unaudited.
|
SKYLINE CHAMPION CORPORATION RECONCILIATION OF REGIONAL HOMES NET INCOME BEFORE TAXES TO EBITDA (Unaudited, dollars in thousand) |
|||
|
|
|
For the Year Ended |
|
|
Net income before taxes |
|
$ |
70,698 |
|
Interest expense, net |
|
|
9,262 |
|
Depreciation and amortization |
|
|
3,901 |
|
EBITDA |
|
$ |
83,861 |
Part III – Segments Quoted from “Planned Acquisition of Regional Homes” – Skyline Champion IR Pitch Deck
HIGHLIGHTS
• Founded in 2006, now the 4th largest company in the industry, with the largest independent retail footprint
• Strong relationship with federal and state disaster relief housing programs in AL, FL, LA, MS, and TX
• Headquartered in Flowood, Mississippi
• Owned by Heath Jenkins – trusted, and well respected leader in the industry
KEY STATISTICS
- Operates 3 manufacturing facilities in Northwest Alabama
- Services low-to-high product segments with Hamilton Home Builders, Embark Home Builders, Bravo Home Builders, and Winston Home Builders brands
- 43 retail locations across the Southeastern US
- Approximately 5,000 homes sold in calendar 2022
- Approximately 1,200 employees
Transaction Rationale
• Combines #2 SKY with #4 Regional Homes enhancing combined procurement and national digital marketing leverage
• Expands SKY’s market share in complimentary geographies including Alabama and Mississippi which are the #3 and #11 largest states for manufactured housing(1)
• Strengthens SKY’s captive retail organization and our ability to accelerate the digital, direct-to-consumer, and builder developer channels as well as provide a larger platform for our future captive finance partnership with Triad Financial Services and ECN Capital
• Has strong industrial logic with potential to generate $10-15M in operational and procurement synergies
(1) Based on CY2022 wholesale shipments of new manufactured homes based on U.S. Census data
Part IV – Additional Information with More MHProNews Analysis and Commentary
To put Skyline Champions deal for Regional Homes into a broader evidence-based context, the market’s response to the deal is summed up in the graphic below. Yahoo Finance indicates that the stock is trading lower today than when the deal was announced. Closing the deal did not boost the enthusiasm among investors. Such insights are only possible by waiting a few days to see what happens. Note that since the graphic below SKY’s stock slid one more yesterday. At the close, per Yahoo Finance on October 18 04:00PM EDT 61.47-1.67 (-2.64%).
In fact, it appears that since the deal for Regional Homes was announced, there was a brief bump in SKY’s stock value, but it has fallen since. SKY’s stock fell in value again after the announced deal for Regional was closed.
Though Yahoo’s graphic shows the stock’s “fair value” as “undervalued,” most investors apparently don’t yet agree.
AI
As regular and detail minded readers know, MHProNews has been testing the use of Artificial Intelligence (AI) in the context of our reports in recent months. With that in mind, MHProNews asked Bing’s AI the following.
> “What has Manufactured Housing trade media had to say about the closing of the Skyline Champion Regional Homes Acquisition?”
- Skyline Champion Corporation (NYSE: SKY) is a leading producer of factory-built housing in North America and employs approximately 7,600 people1.
- On October 13, 2023, Skyline Champion announced the closing of its previously announced acquisition of Regional Enterprises LLC, and related companies (collectively, “Regional Homes”)123.
- Regional Homes is a leading retailer of manufactured and modular homes in Alabama and Mississippi, with 18 retail locations and two manufacturing facilities1.
- The purchase price was approximately $313 million, net of cash acquired, plus assumed debt, primarily related to inventory floor plan liabilities, of $93 million1.
- Skyline Champion funded the acquisition with cash on hand and $30 million of the Company’s common stock1.
- Skyline Champion expects this transaction to generate solid returns over time with meaningful stakeholder value creation from day one, supported by Regional Homes’ attractive margin profile, its talented team, as well as available synergy capture1.
- Skyline Champion also announced that Heath Jenkins, the former CEO of Regional Homes, will serve as the President of the Company’s captive retail operations1.
I hope this helps you. If you want to learn more, you can visit the web links I provided. 😊
Learn more:
As MHProNews previously reported, and as the Skyline Champion screen capture above of the Regional Enterprises deal made clear again, SKY has had several “idle” plants, some of which they have recently (see linked reports) begun to ramp up. While that should beg some questions from investors and regulators, apparently that isn’t yet a big cause for a second look among what might be called ‘the consolidator crowd’ at the Manufactured Housing Institute (MHI).
Now note for the broader context. Skyline Champion, #2 behind Berkshire Hathaway (BRK) owned Clayton Homes, has closed on a top ten manufactured home producer in this latest deal with Regional Homes. Meanwhile, #3 Cavco Industries (CVCO) acquired one of the other top ten producers of HUD Code manufactured homes, Solitaire.
The so-called “Big Three” at MHI are in the Regional, Solitaire, and strategic potential in the ECN-Capital deal have taken significant steps toward consolidation.
But let’s further frame this market moves by the Big Three firms.
Cavco’s William “Bill” Boor told Congress on 7.14.2023 that the manufactured home industry is at a “critical crossroads.” And what is occurring in MHVille among these Big Three producers during this “critical crossroads?” Consolidation. Consolidation by Skyline Champion (SKY). Consolidation by Cavco Industries (CVCO). Consolidation by several MHI and/or MHI-state affiliation linked manufactured home community operators.
As a subset to this pattern, there is an apparent consolidation of street retail increasingly being consolidated (acquired) by the so-called Big Three at MHI. Previously independent Solitaire had their own captive (i.e.: production company owned) retail stores. So too that is the case with Regional Homes, with three factories but 43 “captive” or company owned street retail stores.
For more detail in that broader manufactured home industry context, consider the facts found in the report linked below.
As is exemplified in the “Rise and Fall of Manufactured Housing” and the chart below, the manufactured home industry is operating at only a small fraction of the production levels in the mid-to-late 1990s. In a conversation recently with a mainstream media reporter, a journalist who called expressed surprise – shocked – that manufactured housing production is trending downward in 2023 vs. 2022 and is at such a low level. That reporter didn’t know that manufactured housing was performing at under 100,000 new homes annually. In a sense, that may not be entirely surprising to those of us who have a keen and objective grasp of what is occurring with respect to MHI. As MHProNews has been documenting, MHI does not provide certain information to the public on their website. If someone goes to the MHI website and is looking for information on manufactured home production, what will they find? A page that requires a member login.
below the graphic below or click the image and follow the prompts.
More Insights Via Q&A with Bing AI
MHProNews asked Bing’s AI the following questions.
> “The Biden White House issued a statement on the harmful impact of consolidation and the importance of competition. Can you give me a summary of that and how that might impact the manufactured housing industry as reported by manufactured home industry trade media?”
- On July 9, 2021, President Biden signed an Executive Order to promote competition in the American economy, which aims to reduce the trend of corporate consolidation, increase consumer choice, lower prices, raise wages, and foster innovation1.
- The Executive Order covers various sectors of the economy, including healthcare, agriculture, internet platforms, and financial services. It also addresses some specific issues related to the housing industry, such as:
- Encouraging the Federal Housing Finance Agency (FHFA) to allow Fannie Mae and Freddie Mac to support manufactured housing, 2-4 unit properties, and other affordable housing options1.
- Directing HUD to review its rules on manufactured housing and consider actions to remove barriers to financing and development of this type of housing1.
- Directing the Consumer Financial Protection Bureau (CFPB) to issue a rule allowing customers to download their banking data and take it with them1, which could help them access more affordable mortgage options.
- The Executive Order also establishes a White House Competition Council, led by the Director of the National Economic Council, to coordinate the federal government’s response to the rising power of large corporations in the economy1.
- The impact of the Executive Order on the manufactured housing industry is not yet clear, as it depends on how the agencies implement the directives and how the market responds. However, some possible outcomes are:
- Increased availability and affordability of manufactured housing for low- and moderate-income buyers and renters, especially in rural areas where conventional housing is scarce or expensive2.
- Increased competition and innovation among manufactured housing producers and retailers, as well as between manufactured housing and other types of housing23.
- Increased consumer protection and empowerment for manufactured housing owners and residents, especially against predatory practices by landlords or lenders23.
I hope this helps you. If you want to learn more, you can visit the web links I provided. 😊
Learn more:
Our previous report on that topic is linked below.
> “Bing, what is missing in your reply is any reference from sources IN manufactured housing. Also, isn’t it true that despite the happy talk from the Biden White House about increasing housing supply and increasing competition, that there has been more consolidation in manufactured housing? And hasn’t there been a sharp decline reported in manufactured home production since July 9 2021?”
- Publicly Traded Manufactured Housing Firms – Which Source Do You Trust More? Why? MHI, MHARR, Others: This article compares the perspectives of different national trade associations on the state of the manufactured housing industry, and argues that the Manufactured Housing Institute (MHI) has a fiduciary responsibility to its stockholders to address the issues of discriminatory zoning, financing, and consolidation1.
- Manufactured Housing Industry Trends & Statistics: This blog post provides some facts and figures on the manufactured housing industry, such as the cost per square foot, the number of residents, the occupancy rates, and the satisfaction levels of manufactured home owners and renters2.
- HUD Code Manufactured Home Production Decline Worsens in January 2023: This article reports that HUD Code manufactured home production declined by 23.6% in January 2023 compared to January 2022, and blames the failures of the post-production sector, especially Fannie Mae and Freddie Mac, for not supporting manufactured housing financing3.
To answer your questions, yes, it is true that there has been more consolidation in manufactured housing, as reported by Market Trends Report and Valuation Index, which states that “the manufactured housing industry has experienced consolidation of single-asset and smaller portfolios, driving valuations upward”4. It is also true that there has been a sharp decline in manufactured home production since July 9 2021, as reported by Severe Manufactured Home Production Decline Continues in August 2023, which states that HUD Code manufacturers produced 8,670 new homes in August 2023, a 19.1% decrease from the 10,722 new HUD Code homes produced in August 20225.
I hope this helps you. If you want to learn more, you can visit the web links I provided. 😊
Learn more:
1. manufacturedhomepronews.com 2. manufacturedhomepronews.com 3. mhvillage.com 4. mhvillage.com 5. manufacturedhomepronews.com 6. manufacturedhomepronews.com 7. us.jll.com 8. us.jll.com 9. manufacturedhomepronews.com 10. manufacturedhomepronews.com 11. fox4kc.com 12. manufacturedhomepronews.com 13. manufacturedhousing.org 14. mhvillage.com 15. us.jll.com 16. consumerfinance.gov 17. manufacturedhousingassociationregulatoryreform.org 18. manufacturedhomepronews.com
Note the void from the Manufactured Housing Institute (MHI)? MHProNews reported that MHI has apparently reduced the amount of content available to the public on their newly updated website – why?
Also note that with respect to Equity LifeStyle Properties (ELS) owned MHVillage’s MHInsider, fact checks of their ‘research’ reveals apparently significant errors. See the report linked below for details.
There are at least two wide raising and national class action suits launched in the communities’ sector that alleges antitrust violations. Will litigation hit the consolidators in the production side of the industry?
In this broad context, the insights from the attorneys linked below are perhaps timelier now than they were at the time their remarks were initially made. Given the history in the last few years at Cavco Industries (CVCO) with their SEC legal issues and shareholder suits, questions ought to be asked about what is occurring with MHI member Skyline Champion to be prudent, right?
Part III – is our Daily Business News on MHProNews stock market recap which features our business-daily at-a-glance update of over 2 dozen manufactured housing industry stocks.
This segment of the Daily Business News on MHProNews is the recap of yesterday evening’s market report, so that investors can see at glance the type of topics may have influenced other investors. Thus, our format includes our signature left (CNN Business) and right (Newsmax) ‘market moving’ headlines.
The macro market move graphics below provide context and comparisons for those invested in or tracking manufactured housing connected equities. Meaning, you can see ‘at a glance’ how manufactured housing connected firms do compared to other segments of the broader equities market.
In minutes a day readers can get a good sense of significant or major events while keeping up with the trends that are impacting manufactured housing connected investing.
Reminder: several of the graphics on MHProNews can be opened into a larger size. For instance: click the image and follow the prompts in your browser or device to OPEN In a New Window. Then, in several browsers/devices you can click the image and increase the size. Use the ‘x out’ (close window) escape or back key to return.
Headlines from left-of-center CNN Business – from the evening of 10.18.2023
- Americans’ net worth surged by a record 37% from 2019-2022
- A customer walks by a Costco store on September 23, 2022 in Monterey Park, California. Costco Wholesale Corp. topped estimates for quarterly results this week with total revenue rising 15% to $72.10 billion in a strong fourth quarter.
- Costco’s CEO steps down
- Tesla third-quarter earnings slow, missing forecasts
- Netflix stock surges after it announces price hikes and a boost in subscribers
- The Hilton Houston Post Oak hotel by the Galleria in Houston, Texas.
- Texas Hilton cancels conference hosted by Palestinian rights group, citing ‘escalating security concerns’
- Rite Aid is closing nearly 100 stores as part of its bankruptcy. See the list
- USB-C charging is expanding to Apple Pencil.
- Apple continues its sweep to roll out USB-C to more devices
- Premiums for family health insurance at work jump to nearly $24,000 this year
- Venture capitalist David Magerman is the latest major donor to the University of Pennsylvania to cut off financial support to the Ivy League school.
- ‘Deeply ashamed.’ Another major UPenn backer halts donations and calls on other Jews to do the same
- Wheat crops grow at a demonstration farm of Syngenta Group China’s Modern Agriculture Platform (MAP) service, during a media tour in Wei county of Handan, Hebei province, China June 11, 2021. Picture taken June 11, 2021.
- Arkansas orders Chinese-owned seed producer Syngenta to sell US farmland
- News outlets in fog of war amid dueling claims on Gaza hospital blast
- US escalates tech battle by cutting China off from AI chips
- Homebuilding bounced back in September
- This 1980s Domino’s delivery car looks like a spaceship, and you can buy it
- What the Israel-Hamas war means for defense stocks
- Taiwan’s Foxconn to build ‘AI factories’ with Nvidia
- China’s economy regains momentum. But real estate remains a drag
- Billionaire Ronald Lauder threatens to pull funding if UPenn doesn’t do more to fight antisemitism
- Elon Musk’s X is testing an annual fee for unverified accounts
- Lina Khan’s rise was heralded as an antitrust revolution. Now she has to pull it off
- GM postpones expanding production of electric trucks
- Hamas’ social media following has skyrocketed since its attack. America is powerless to stop it
- Victoria’s Secret will sell intimate apparel for women with disabilities
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below the graphic below or click the image and follow the prompts.
Headlines from right-of-center Newsmax 10.18.2023
- IDF Releases Audio of Hamas Admitting Hospital Strike
- Palestinians look at the site of the explosion at al-Ahli hospital in Gaza City, Wednesday.
- Israel at War
- US Intel: Hospital Blast Likely Caused by Palestinian Group
- Satellite Images Show Before, After of Gaza Hospital
- Poll: Three-Quarters Support Military Aid for Israel
- US Analysis Shows Israel Not Responsible for Hospital Blast
- Netanyahu: No Aid Through Israel Until Hostages Freed
- Qatar Plays Key Role to Rescue Hostages
- Biden Pledges Support for Israel, $100M Aid to Gaza
- Biden in Israel: ‘Deeply Saddened’ by Hospital Blast
- Biden: Israel OKs Humanitarian Assistance From Egypt to Gaza
- Israel: Hospital Blast Caused by Palestinian Rocket; 500 Dead
- The Race for Speaker
- Jordan Loses 2nd Ballot, 22 Republicans Vote Against Him
- Jordan Staying in the Speaker Race
- Meuser: Americans Demand a Speaker | video
- Biggs : ‘Surprised’ Speaker Hasn’t Been Picked | video
- Russell Fry: Holdouts Should Listen to Their District | video
- Bob Good: GOP in ‘All the Way’ for Jordan | video
- Jordan Vows to Keep at It Through Future Votes
- 20 House Republicans Take Stand Against Jordan
- More The Race for Speaker
- Ernst: Protests Across Middle East Getting Out of Hand
- McFarland: ‘Important’ to See Biden Stand With Israel | video
- Lindsey Graham: If Hezbollah Attacks, Strike Iran | video
- Lindsey Graham: PLO Ignoring Biden ‘Big Mistake’ | video
- Russell Fry: Holdouts Should Listen to District | video
- Lara Trump: Americans Before Palestine Refugees | video
- Bob Good: GOP in ‘All the Way’ for Jim Jordan | video
- Fmr Amb. Danon: Biden’s Israel Visit Sign of Solidarity | video
- Rick Scott: US Must ‘Hold Iran Accountable’ | video
- More Newsmax TV
- Newsfront
- Van Der Sloot Admits to Murdering Natalee Holloway
- The chief suspect in Natalee Holloway’s 2005 disappearance in Aruba admitted he killed her and disposed of her remains, and has agreed to plead guilty to charges he tried to extort money from the teen’s mother years later, a U.S. judge said Wednesday…. [Full Story]
- Chicago’s Top Cop: Migrants in Police Stations a ‘Burden’
- Chicago’s new police chief said the city’s use of police stations as [Full Story]
- Qatar Plays Key Role to Rescue Hostages
- The United States is relying on Qatar to help secure the release of [Full Story]
- Stocks Drop on Profit Reports, Oil Jumps on War Fears
- Wall Street dropped after big U.S. companies delivered a mixed set of [Full Story]
- Trump: Gov’t Using ‘Vicious Lies’ in Civil Trial
- Former President Donald Trump, speaking outside the Manhattan [Full Story]
- Single-Family Starts Rebound Amid Soaring Mortgages
- S. single-family homebuilding rebounded in September, boosted by [Full Story]
- Ford Says Biden Fuel Plan Threatens ‘Substantial Economic Hardship’
- Ford Motor Co said the Biden administration’s proposal to drastically [Full Story]
- Household Wealth Surges 37 Percent to $193K
- The net worth of the typical U.S. household grew at the fastest pace [Full Story]
- 18 Holes of Golf Improves Cognition of Older Adults
- Want to do something to protect your thinking skills as you age? [Full Story]
- 2 Civilians Killed in Russian Attack on Zaporizhzhia
- Two people were killed and at least four wounded after an apartment [Full Story]
- Related
- Putin Says West Looks More Inclined Towards Ukraine Talks
- X to Test $1 Annual Subscription for Basic Features
- Social media platform X, formerly known as Twitter, said on Tuesday [Full Story]
- Industry Baffled by New Pentagon Drone Program
- The Pentagon’s “Replicator” program – which aims to deploy thousands [Full Story] | Platinum Article
- Is Israel Prepared for a War on Multiple Fronts?
- The Iranian-backed Hezbollah militia is ratcheting up tension in [Full Story] | Platinum Article
- Obesity Increases Risk for Breast Cancer Recurrence
- Many breast cancer survivors take a hormonal drug after cancer [Full Story]
- Parents Outraged Over ‘Winnie the Pooh’ Horror Film in School
- Parents are up in arms after a teacher at a K-12 charter school in [Full Story]
- Putin Ally Says Globe Is on Brink of World War III
- Margarita Simonyan, the head of the government-funded television [Full Story]
- Iowa AG Bird Backs Trump for 2024
- Iowa Republican Attorney General Brenna Bird on Monday endorsed [Full Story]
- Rasmussen Poll: Most Voters Say Biden Age Serious Issue
- If President Joe Biden wins reelection, he will be 82 at the time of [Full Story]
- Pence: Media Quick to Abandon Israel Except Newsmax
- Former Vice President Mike Pence, a 2024 Republican presidential [Full Story] | video
- Challenger to Sen. Rick Scott Opts for House Run
- Navy veteran and former congressional candidatePhil Ehr, a Democrat, [Full Story]
- Hamadeh Announces Bid for Lesko’s Arizona House Seat
- Republican Abe Hamadeh, a 2022 candidate for attorney general in [Full Story]
- Putin Meets ‘Dear Friend’ Xi in China Summit
- Russian President Vladimir Putin was set to meet Chinese President Xi [Full Story]
- Related
- Putin’s China Visit Underscoring Ties Amid Conflicts
- US Builds New Immigration Process for Some Ecuadoreans
- The U.S. Department of Homeland Security on Wednesday announced a new [Full Story]
- Pope Francis Deplores ‘Desperate’ Situation in Gaza
- Pope Francis deplored the “desperate” situation in Gaza on Wednesday [Full Story]
- US Says It Thwarted Drone Attack on Its Troops in Iraq
- The U.S. military thwarted an attack targeting its forces in Iraq [Full Story]
- Pentagon: Chinese Plane Intercepts ‘Highly Concerning’
- The Pentagon has released footage of some of the more than 180 [Full Story]
- Senate to Weigh Lew as Biden’s Pick for Amb. to Israel
- The Senate is moving quickly to confirm Jacob Lew as ambassador to [Full Story]
- US to Impose New Sanctions Against Hamas This Week
- The U.S. Treasury Department is preparing to announce new sanctions [Full Story]
- Debbie Lesko Calls Off 2024 Reelection Bid
- Republican Debbie Lesko announced Tuesday that she would not seek a [Full Story]
- Summit With Arab Leaders Called off, Biden Heads to Israel
- President Joe Biden’s efforts to tamp down tensions in the escalating [Full Story]
- Baldwin May Be Recharged in ‘Rust’ Shooting Death
- Special prosecutors are seeking to recharge actor Alec Baldwin in the [Full Story]
- Dean Martin Sold a Car to Jay Leno, and It is Unique
- Brake For It
- More Newsfront
- Finance
- Layoffs Lurk on Wall Street as Outlook Remains Murky
- Top U.S. banks could cut jobs further to keep their expenses in check, especially if lingering economic weakness derails a fledgling recovery in investment banking, according to comments made at their recent earnings…. [Full Story]
- Biden Announces $3.5B for Projects Nationwide to Strengthen Electric Grid, Bolster Resilience
- Fed on Pause as Policymakers Parse Mixed Data
- Tesla’s Q3 Margin Slightly Misses Analysts’ Estimates
- Escalating Global Conflicts Highlight Our Inept Leaders
- More Finance
- Health
- 10 Best Foods to Lower Cholesterol Levels
- High cholesterol levels increase your risk for heart disease, the leading cause of death, and stroke, the fifth leading cause of death. And yet, according to the Centers for Disease Control and Prevention, about 86 million U.S. adults have cholesterol levels above the…… [Full Story]
- Amazon Drones to Drop Prescriptions on Your Doorstep
- Study: Common Drug Found Effective Against IBS
- Blood Pressure Fluctuations May Harm Heart, Brain
- FDA Approves Non-Opioid Post-Op Pain Treatment
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2023 …Berkshire Hathaway is the parent company to Clayton Homes, 21st Mortgage, Vanderbilt Mortgage and other factory-built housing industry suppliers.
· LCI Industries, Patrick, UFPI, and LP each are suppliers to the manufactured housing industry, among others.
· AMG, CG, and TAVFX have investments in manufactured housing related businesses. For insights from third-parties and clients about our publisher, click here.
2022 was a tough year for many stocks. Unfortunately, that pattern held true for manufactured home industry (MHVille) connected stocks too. See the facts, linked above.
====================================
Disclosure. MHProNews holds no positions in the stocks in this report.
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- Note 1: MHVille means manufactured housing industry, MHVille also means artificially smaller manufactured housing (MH) industry,
- Note 2: Manufactured housing, building, factories, retail, dealers, manufactured home, communities, passive mobile home park investing, suppliers, brokers, finance, financial services, macro-markets, manufactured housing stocks, Manufactured Home Communities Real Estate Investment Trusts, MHC REITs.
That’s a wrap on this installment of “News Through the Lens of Manufactured Homes and Factory-Built Housing” © where “We Provide, You Decide.” © (Affordable housing, manufactured homes, stock, investing, data, metrics, reports, fact-checks, analysis, and commentary. Third-party images or content are provided under fair use guidelines for media.) (See Related Reports, further below. Text/image boxes often are hot-linked to other reports that can be access by clicking on them.)
By L.A. “Tony” Kovach – for MHProNews.
Tony earned a journalism scholarship along with numerous awards in history. There have been several awards, honors and numerous public recognitions for his achievements in manufactured housing. For example, he earned the prestigious Lottinville Award in history from the University of Oklahoma, where he studied history and business management. Kovach is a managing member and co-founder of LifeStyle Factory Homes, LLC, the parent company to MHProNews, and MHLivingNews.com, which is ranked as the runaway most read trade media in modern manufactured housing history. This article reflects the LLC’s and/or the writer’s editorial views and may or may not reflect the views of sponsors or supporters.
