Champion Homes, Inc.

Previous wording

Champion Homes, Inc., formerly known as Skyline Champion Corporation (the “Company”), is a leading producer of factory-built housing in the U.S. and Canada. The Company serves as a complete solutions provider across complementary and vertically integrated businesses including factory-built home manufacturing, company-owned retail locations, construction services, and transportation logistics services. The Company markets its homes under several nationally recognized brand names including Champion Homes, Genesis Homes, Skyline Homes, Regional Homes, Athens Park Models, Dutch Housing, Atlantic Homes, Excel Homes, Homes of Merit, New Era, Redman Homes, ScotBilt Homes, Shore Park, Silvercrest, and Titan Homes in the U.S., and Moduline and SRI Homes in western Canada. The Company operates 43 manufacturing facilities throughout the 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. The Company’s retail operations consist of 72 sales centers that sell manufactured homes to consumers across the U.S. The Company’s transportation business engages independent owners/drivers to transport manufactured homes, recreational vehicles, and other products throughout the U.S. and Canada.

Current wording

Champion Homes, Inc., formerly known as Skyline Champion Corporation (the “Company”), is a leading producer of factory-built housing in the U.S. and Canada. The Company serves as a complete solutions provider across complementary and vertically integrated businesses including factory-built home manufacturing, company-owned retail locations, construction services, and transportation logistics services. The Company markets its homes under several nationally recognized brand names including Champion Homes, Genesis Homes, Skyline Homes, Regional Homes, Athens Park Models, Dutch Housing, Atlantic Homes, Excel Homes, Homes of Merit, New Era, J. Redman Homes, ScotBilt Homes, Shore Park, Silvercrest, and Titan Homes in the U.S., and Moduline and SRI Homes in western Canada. The Company operates 42 manufacturing facilities throughout the U.S. and four 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. The Company’s retail operations consist of 82 sales centers that sell manufactured homes to consumers across the U.S. The Company’s transportation business engages independent owners/drivers to transport manufactured homes, recreational vehicles, and other products throughout the U.S. and Canada.

Previous wording

In October 2023, the Company acquired Regional Homes, which operated three manufacturing facilities in Alabama and 44 retail sales centers across the Southeast U.S. Regional Home's strong presence in large HUD markets expanded our captive retail and manufacturing distribution in that region. In July 2022, the Company acquired 12 Factory Expo retail sales centers from Alta Cima Corporation, which expanded the internal retail network across a broader portion of the U.S. In May 2022, the Company acquired Manis Custom Builders, Inc. ("Manis") in order to expand its manufacturing footprint and further streamline its product offering in the Southeast U.S.

Current wording

In May 2025, the Company acquired Iseman Homes which operated 10 retail sales centers across the North Central U.S. This acquisition enhances the Company's ability to strengthen distribution from its nearby manufacturing facilities, furthering the Company’s commitment to integrated growth. In October 2023, the Company acquired Regional Homes, which operated three manufacturing facilities in Alabama and 44 retail sales centers across the Southeast U.S. Regional Homes' strong presence in large HUD markets expanded our captive retail and manufacturing distribution in that region.

Previous wording

In addition to those acquisitions, the Company is also focused on enhancing its U.S. manufacturing production capacity through various plant start-ups in strategic locations. As a result, the Company began production in previously idled or acquired facilities in Decatur, Indiana and Bartow, Florida in fiscal 2024 and a facility in Pembroke, North Carolina in the fourth quarter of fiscal 2023. The Company owns six idle manufacturing facilities that could be used for further manufacturing capacity expansion in future periods.

Current wording

In addition to those acquisitions, the Company is also focused on enhancing its U.S. manufacturing production capacity, as well as redeployment of capital and resources through strategic actions at specific plants. During the first quarter of fiscal 2026, the Company idled production at the Bartow, Florida manufacturing plant and communicated a plan to cease operations at the Kelowna, British Columbia manufacturing plant. We believe these actions will ultimately lead to greater operating efficiency and profitability. The Company owns seven idle manufacturing facilities that could be used for further manufacturing capacity expansion in future periods.

Previous wording

The Company's acquisitions and investments are part of a strategy to grow and diversify revenue with a focus on increasing the Company’s homebuilding presence in the U.S. as well as improving the results of operations through streamlining production of similar product categories. These acquisitions and investments are included in the Company's consolidated results for periods subsequent to their respective acquisition dates.

Current wording

The Company's acquisitions, investments and plant consolidation are part of a strategy to grow and diversify revenue with a focus on increasing the Company’s homebuilding presence in the U.S. as well as improving the results of operations through streamlining production of similar product categories. These acquisitions and investments are included in the Company's consolidated results for periods subsequent to their respective acquisition dates.

Previous wording

Because of the need for affordable housing, the Company saw an increase in customer orders during the nine months ended December 28, 2024 versus the same period last year. As a result of the increased orders the Company's manufacturing backlog was $312.6 million as of December 28, 2024 compared to $290.4 million as of December 30, 2023.

Current wording

The Company saw a decrease in customer orders during the three months ended June 28, 2025 versus the same period last year. As a result of the decreased orders, combined with higher production rates versus the prior year, the Company's manufacturing backlog decreased to $302.5 million as of June 28, 2025 compared to $404.8 million as of June 29, 2024.

Previous wording

For the nine months ended December 28, 2024, approximately 87% of the Company’s U.S. manufacturing sales were generated from the manufacture of homes that comply with the U.S. Department of Housing and Urban Development ("HUD") code construction standard in the U.S. Industry shipments of HUD-code homes are reported on a one-month lag. According to data reported by the Manufactured Housing Institute, HUD-code industry home shipments were 71,968 and 61,622 units during the eight months ended November 30, 2024 and 2023, respectively. Based on industry data, the Company’s U.S. wholesale market share of HUD code homes sold was 22.2% and 18.9%, for the eight months ended November 30, 2024 and 2023, respectively. Annual HUD-code industry shipments have generally increased since calendar year 2009 when only 50,000 HUD-coded manufactured homes were shipped, the lowest level since the industry began recording statistics in 1959. While shipments of HUD-coded manufactured homes have improved modestly in recent years, current manufactured housing shipments are still at lower levels than the long-term historical average of over 200,000 units per year. Manufactured home sales represent approximately 9% of all U.S. single family home starts. Our market share in the U.S total housing market was approximately 2.5% and 2.1% for the nine months ended December 28, 2024 and December 30, 2023, respectively.

Current wording

For the three months ended June 28, 2025, approximately 85.1% of the Company’s U.S. manufacturing sales were generated from the manufacture of homes that comply with the U.S. Department of Housing and Urban Development ("HUD") code construction standard in the U.S. Industry shipments of HUD-code homes are reported on a one-month lag. According to data reported by the Manufactured Housing Institute, HUD-code industry home shipments were 27,676 and 27,024 units during the three months ended May 31, 2025 and 2024, respectively. Based on industry data, the Company’s U.S. wholesale market share of HUD code homes sold was 22.5% and 21.3%, for the three months ended May 31, 2025 and 2024, respectively. Annual HUD-code industry shipments have generally increased since calendar year 2009 when only 50,000 HUD-coded manufactured homes were shipped, the lowest level since the industry began recording statistics in 1959. While shipments of HUD-coded manufactured homes have improved modestly in recent years, current manufactured housing shipments are still at lower levels than the long-term historical average of over 200,000 units per year. Manufactured home sales represent approximately 11% of all U.S. single family home starts. Our market share in the U.S total housing market was approximately 2.7% and 2.5% for the three months ended June 28, 2025 and June 29, 2024, respectively.

Previous wording

UNAUDITED RESULTS OF OPERATIONS FOR THE THIRD QUARTER OF FISCAL 2025 VS. 2024

Current wording

UNAUDITED RESULTS OF OPERATIONS FOR THE FIRST QUARTER OF FISCAL 2026 VS. 2025

Previous wording

Net sales for the three months ended December 28, 2024 were $644.9 million, an increase of $85.5 million, or 15.3%, compared to the three months ended December 30, 2023. The following is a summary of the change by operating segment.

Current wording

Net sales for the three months ended June 28, 2025 were $701.3 million, an increase of $73.5 million, or 11.7%, compared to the three months ended June 29, 2024. The following is a summary of the change by operating segment.

Previous wording

Net sales for the Company’s U.S. manufacturing and retail operations increased by $89.6 million, or 17.2%, for the three months ended December 28, 2024 compared to the three months ended December 30, 2023. The increase was due to a 14.1% increase in new homes sold and a 2.8% increase in the average selling price per new home. The increase in the number of homes sold was due to higher customer demand and production volumes compared to the prior year, as well as an additional 2 weeks of activity from Regional Homes in the current quarter. The increase in average selling price was due to the increase in the number of units sold through our company-owned retail sales centers. The mix of wholesale unit sales sold to independent channels versus homes sold through our company-owned retail sales centers impacts average selling price since we capture revenue from additional installation services for homes sold through internal channels.

Current wording

Net sales for the Company’s U.S. manufacturing and retail operations increased by $62.4 million, or 10.4%, for the three months ended June 28, 2025 compared to the three months ended June 29, 2024. The increase was due to a 6.5% increase in new homes sold and a 3.6% increase in the average selling price per new home. The increase in the number of homes sold was due to higher production volumes compared to the prior year. The increase in average selling price was due to a shift in mix to more multi-wide units and increased pricing at our company-owned retail sales centers.

Previous wording

The Canadian Factory-built Housing segment net sales decreased by $17.5 million, or 20.3% for the nine months ended December 28, 2024 compared to the same period in the prior fiscal year, primarily due to a 20.9% decrease in homes sold, partially offset by a 0.8% increase in average home selling price. The decrease in homes sold is due to slowing demand in the Canadian market. On a constant currency basis, net sales for the Canadian segment were unfavorably impacted by approximately $1.2 million due to fluctuations in the translation of the Canadian dollar to the U.S. dollar during the nine months ended December 28, 2024 as compared to the same period of the prior fiscal year.

Current wording

The Canadian Factory-built Housing segment net sales increased by $9.3 million, or 44.8% for the three months ended June 28, 2025 compared to the same period in the prior fiscal year, primarily due to a 49.7% increase in homes sold partially offset by a 3.3% decrease in average home selling price. The increase in homes sold was due to higher demand in certain markets. The decrease in average selling price was due to product mix. On a constant currency basis, net sales for the Canadian segment were unfavorably impacted by approximately $0.7 million due to fluctuations in the translation of the Canadian dollar to the U.S. dollar during the three months ended June 28, 2025 as compared to the same period of the prior fiscal year.

Previous wording

Net sales for Corporate/Other includes the Company’s transportation business, financing activities, and the elimination of intersegment sales. For the three months ended December 28, 2024, net sales increased $0.9 million, or 12.6%, primarily attributable to revenue generated from Champion Financing, partially offset by lower recreational vehicle shipments from the Company's transportation business.

Current wording

Net sales for Corporate/Other includes the Company’s transportation business, financing activities, and the elimination of intersegment sales. For the three months ended June 28, 2025, net sales increased $1.8 million, or 24.4%, primarily attributable to revenue generated from Champion Financing, partially offset by lower recreational vehicle shipments from the Company's transportation business.

Previous wording

Gross profit as a percent of sales during the three months ended December 28, 2024 was 28.1% compared to 25.3% during the three months ended December 30, 2023. The following is a summary of the change by operating segment.

Current wording

Gross profit as a percent of sales during the three months ended June 28, 2025 was 27.1% compared to 26.2% during the three months ended June 29, 2024. The following is a summary of the change by operating segment.

Previous wording

Gross profit for the U.S. Factory-built Housing segment increased by $39.5 million, or 30.8%, during the three months ended December 28, 2024 compared to the same period in the prior fiscal year. Gross profit was 27.4% as a percent of segment net sales for the three months ended December 28, 2024 compared to 24.6% in the same period of the prior fiscal year. The increase in gross profit as a percent of segment net sales is being driven by higher average selling prices on new homes sold through our Company-owned retail sales centers, which also generated a greater percentage of total segment revenue than the prior year as well as lower input costs and synergies realized from the acquisition of Regional Homes.

Current wording

Gross profit for the U.S. Factory-built Housing segment increased by $20.1 million, or 13.0%, during the three months ended June 28, 2025 compared to the same period in the prior fiscal year. Gross profit was 26.3% as a percent of segment net sales for the three months ended June 28, 2025 compared to 25.7% in the same period of the prior fiscal year. The increase in gross profit as a percent of segment net sales is being driven by higher average selling prices on new homes sold through our Company-owned retail sales centers and the reduction in the impact to the carrying value of inventory from purchase accounting as a result of the acquisition of Regional Homes in October 2023.

Previous wording

Gross profit for the Canadian Factory-built Housing segment decreased by $2.3 million, or 25.2%, during the three months ended December 28, 2024 compared to the same period in the prior fiscal year. The decrease in gross profit is primarily due to lower sales volumes and average selling prices caused by slowing demand. Gross profit as a percent of net sales was 26.4% for the three months ended December 28, 2024, compared to 29.4% in the same period of the prior year, primarily due to less absorption of fixed costs due to lower sales volumes.

Current wording

Gross profit for the Canadian Factory-built Housing segment increased by $2.9 million, or 54.6%, during the three months ended June 28, 2025 compared to the same period in the prior fiscal year. The increase in gross profit is primarily due to higher sales volumes. Gross profit as a percent of net sales was 27.5% for the three months ended June 28, 2025, compared to 25.7% in the same period of the prior year, primarily due to more absorption of fixed costs due to higher sales volumes.

Previous wording

Gross profit for the Corporate/Other segment increased $2.6 million, or 62.0%, during the three months ended December 28, 2024 compared to the same period of the prior fiscal year due primarily to the inclusion of Champion Financing.

Current wording

Gross profit for the Corporate/Other segment increased $2.6 million, or 58.2%, during the three months ended June 28, 2025 compared to the same period of the prior fiscal year due primarily to the inclusion of Champion Financing.

Previous wording

Selling, general, and administrative expenses were $108.2 million for the three months ended December 28, 2024, an increase of $23.1 million, or 27.2%, compared to the same period in the prior fiscal year. The following is a summary of the change by operating segment.

Current wording

Selling, general, and administrative expenses were $111.3 million for the three months ended June 28, 2025, an increase of $2.5 million, or 2.3%, compared to the same period in the prior fiscal year. The following is a summary of the change by operating segment.

Previous wording

Selling, general, and administrative expenses for the U.S. Factory-built Housing segment increased $79.0 million, or 48.4%, during the nine months ended December 28, 2024 as compared to the same period in the prior fiscal year. Selling, general, and administrative expenses, as a percent of segment net sales increased to 13.5% for the nine months ended December 28, 2024 compared to 11.8% during the comparable period of the prior fiscal year. The increases were primarily due to the inclusion of Regional Homes for the full period of fiscal 2025 compared to 2.5 months in the prior period, as well as a charge of $7.9 million in the first quarter of fiscal 2025 related to the change in fair value of the contingent consideration included in the acquisition of Regional Homes. Additionally, incentive compensation costs, which are generally based on sales volume or measures of profitability, increased in the current period.

Current wording

Selling, general, and administrative expenses for the U.S. Factory-built Housing segment increased $1.2 million, or 1.5%, during the three months ended June 28, 2025 as compared to the same period in the prior fiscal year. SG&A, as a percent of segment net sales decreased to 13.1% for the three months ended June 28, 2025 compared to 14.2% during the comparable period of the prior fiscal year. The increase in SG&A was due to higher incentive compensation, the acquisition of Iseman Homes and $1.0 million of costs associated with the idling of the Bartow, Florida plant, partially offset by a charge of $7.9 million in the first quarter of fiscal 2025 related to the change in fair value of the contingent consideration included in the acquisition of Regional Homes which did not recur in the current period. The decrease in SG&A as a percent of segment sales was a result of higher sales volumes.

Previous wording

Selling, general, and administrative expenses for Corporate/Other includes the Company’s transportation operations, corporate costs incurred for all segments, and intersegment eliminations. Selling, general, and administrative expenses for Corporate/Other increased $8.6 million, or 51.1%, during the three months ended December 28, 2024 as compared to the same period of the prior fiscal year. The increase was due primarily to investments made in people and information systems to support future growth.

Current wording

Selling, general, and administrative expenses for Corporate/Other includes the Company’s transportation operations, corporate costs incurred for all segments, and intersegment eliminations. Selling, general, and administrative expenses for Corporate/Other decreased $1.6 million, or 7.7%, during the three months ended June 28, 2025 as compared to the same period of the prior fiscal year. The decrease was primarily due to lower IT related costs and lower foreign currency transaction losses, partially offset by higher professional fees related to the acquisition of Iseman Homes.

Previous wording

Interest income, net was $4.0 million for the three months ended December 28, 2024, compared to $4.3 million in the same period of the prior fiscal year. The change was primarily due to lower interest income from lower average invested cash balances and higher interest expense from higher average outstanding floor plan payables.

Current wording

Interest income, net was $4.5 million for the three months ended June 28, 2025, compared to $4.2 million in the same period of the prior fiscal year. The change was primarily due to lower interest rates on invested cash balances and floor plan payables.

Previous wording

Other income for the three months ended December 28, 2024 represents dividend income of $1.2 million from the investment in ECN Preferred Shares and $1.0 million insurance proceeds for partial settlement of certain Champion Home Builders’ pre-bankruptcy workers' compensation claims. Other expense for the three months ended December 30, 2023 primarily related to $1.2 million of transaction costs incurred for the acquisition of Regional Homes, partially offset by dividend income of $0.6 million from the investment in ECN Preferred Shares.

Current wording

Other income for each of the three months ended June 28, 2025 and June 29, 2024 represents dividend income of $1.2 million from the investment in ECN Preferred Shares.

Previous wording

Income tax expense for the three months ended December 28, 2024 was $16.7 million, representing an effective tax rate of 21.1%, compared to income tax expense of $12.8 million, representing an effective tax rate of 21.4% for the three months ended December 30, 2023.

Current wording

Income tax expense for the three months ended June 28, 2025 was $17.7 million, representing an effective tax rate of 21.0%, compared to income tax expense of $13.7 million, representing an effective tax rate of 22.5% for the three months ended June 29, 2024.

Previous wording

The Company’s effective tax rate for the three months ended December 28, 2024 and December 30, 2023, differ from the federal statutory income tax rate of 21.0% due primarily to the effect of state and local income taxes, non-deductible expenses, tax credits, and results in foreign jurisdictions.

Current wording

The Company’s effective tax rate for each of the three months ended June 28, 2025 and June 29, 2024, differs from the federal statutory income tax rate of 21.0% due primarily to the effect of state and local income taxes, non-deductible expenses, tax credits, and results in foreign jurisdictions.

Previous wording

The following table summarizes equity in net income of affiliates for the three months ended December 28, 2024 and December 30, 2023:

Current wording

The following table summarizes equity in net loss of affiliates for the three months ended June 28, 2025 and June 29, 2024:

Previous wording

The Company's investment in ECN is accounted for under the equity method and the Company’s share of the earnings or losses of ECN are recorded on a three-month lag. Equity in net income of affiliates of $0.6 million for the three months ended December 28, 2024 represents a gain on the equity method investment in ECN of $0.7 million and net losses from other unconsolidated affiliates of $0.1 million.

Current wording

The Company's investment in ECN is accounted for under the equity method and the Company’s share of the earnings or losses of ECN are recorded on a three-month lag. Equity in net loss of affiliates of $0.6 million for the three months ended June 28, 2025 represents a loss on the equity method investment in ECN of $0.5 million and net losses from other unconsolidated equity method investments of $0.1 million. Equity in net loss of affiliates of $1.3 million for the three months ended June 29, 2024 represents a loss on the equity method investment in ECN of $1.2 million and net losses from other equity method investments of $0.1 million.

Previous wording

Adjusted EBITDA for the three months ended December 28, 2024 was $83.3 million, an increase of $17.0 million from the same period of the prior fiscal year. The increase is primarily a result of higher sales volumes and gross profit, partially offset by higher SG&A expenses.

Current wording

Adjusted EBITDA for the three months ended June 28, 2025 was $94.2 million, an increase of $19.2 million from the same period of the prior fiscal year. The increase is primarily a result of higher sales volumes and gross profit, partially offset by higher SG&A expenses.

Previous wording

Although orders from customers can be canceled at any time without penalty, and unfilled orders are not necessarily an indication of future business, the Company’s unfilled U.S. and Canadian manufacturing orders at December 28, 2024 totaled $312.6 million compared to $290.4 million at December 30, 2023. The increase in backlog is due to higher net orders compared to the prior fiscal year.

Current wording

Although orders from customers can be canceled at any time without penalty, and unfilled orders are not necessarily an indication of future business, the Company’s unfilled U.S. and Canadian manufacturing orders at June 28, 2025 totaled $302.5 million compared to $404.8 million at June 29, 2024. The decrease in backlog is a function of lower orders and higher production rates during the first quarter of fiscal 2026 compared to the same period in the prior year.

Previous wording

The following table presents summary cash flow information for the nine months ended December 28, 2024 and December 30, 2023:

Current wording

The following table presents summary cash flow information for the three months ended June 28, 2025 and June 29, 2024:

Previous wording

The Company’s primary sources of liquidity are cash flows from operations and existing cash balances. Cash balances and cash flows from operations for the next year are expected to be adequate to cover working capital requirements, capital expenditures, and strategic initiatives and investments. The Company has an Amended Credit Agreement which provides for a $200.0 million revolving credit facility, including a $45.0 million letter of credit sub-facility. At December 28, 2024, $168.5 million was available for borrowing under the Amended Credit Agreement. The Company’s revolving credit facility includes (i) a maximum consolidated total net leverage ratio of 3.25 to 1.00, subject to an upward adjustment upon the consummation of a material acquisition, and (ii) a minimum interest coverage ratio of 3.00 to 1.00. The Company anticipates compliance with its debt covenants and projects its level of cash availability to be in excess of cash needed to operate the business for the next year and beyond. In the event operating cash flow and existing cash balances were deemed inadequate to support the Company’s liquidity needs, and one or more capital resources were to become unavailable, the Company would revise its operating strategies.

Current wording

The Company’s primary sources of liquidity are cash flows from operations and existing cash balances. Cash balances and cash flows from operations for the next year are expected to be adequate to cover working capital requirements, capital expenditures, and strategic initiatives and investments. The Company has an Amended Credit Agreement which provides for a $200.0 million revolving credit facility, including a $45.0 million letter of credit sub-facility. At June 28, 2025, $172.5 million was available for borrowing under the Amended Credit Agreement. The Company’s revolving credit facility includes (i) a maximum consolidated total net leverage ratio of 3.25 to 1.00, subject to an upward adjustment upon the consummation of a material acquisition, and (ii) a minimum interest coverage ratio of 3.00 to 1.00. The Company anticipates compliance with its debt covenants and projects its level of cash availability to be in excess of cash needed to operate the business for the next year and beyond. In the event operating cash flow and existing cash balances were deemed inadequate to support the Company’s liquidity needs, and one or more capital resources were to become unavailable, the Company would revise its operating strategies.

Previous wording

Cash provided by operating activities was $194.9 million for the nine months ended December 28, 2024 compared to $218.6 million for the nine months ended December 30, 2023. The decrease was primarily driven by less favorable changes in working capital items during the first nine months of fiscal 2025 as compared to the same period of the prior year, partially offset by higher income before non-cash charges.

Current wording

Cash provided by operating activities was $75.3 million for the three months ended June 28, 2025 compared to $84.6 million for the three months ended June 29, 2024. The decrease was primarily driven by less favorable changes in working capital items during the first three months of fiscal 2025 as compared to the same period of the prior year, partially offset by higher operating income before non-cash charges.

Previous wording

Cash used in investing activities was $35.0 million for the nine months ended December 28, 2024 compared to $474.4 million for the nine months ended December 30, 2023. The decrease in cash used for investing activities was related to the Company's acquisition of Regional Homes, an investment in floor plan loans, and the purchase of ECN common and preferred stock in fiscal 2024 which did not recur in fiscal 2025.

Current wording

Cash used in investing activities was $33.9 million for the three months ended June 28, 2025 compared to $9.1 million for the three months ended June 29, 2024. The increase in cash used in investing activities was related to net cash used to acquire Iseman Homes in the first quarter of fiscal 2026.

Previous wording

Cash used in financing activities was $65.9 million for the nine months ended December 28, 2024 compared to $3.9 million for the nine months ended December 30, 2023. The change between periods was primarily due to repurchases of the Company's common stock totaling $60.0 million in fiscal 2025.

Current wording

Cash used in financing activities was $51.9 million for the three months ended June 28, 2025 compared to $20.6 million for the three months ended June 29, 2024. The change between periods was primarily a result of repurchases of the Company's common stock which totaled $50.0 million in first quarter fiscal 2026 compared to $20.0 million in the first quarter of fiscal 2025.

Previous wording

the potential disruption to our business caused by public health issues, such as an epidemic or pandemic, and resulting government actions;

Current wording

the potential disruption to our business caused by public health issues, such as an epidemic or pandemic, and resulting government actions; and