Skyline Reports Fourth Quarter And Year-End Results

PR Newswire 11-Aug-2017 5:30 PM

ELKHART, Ind., Aug. 11, 2017 /PRNewswire/ --For the fourth quarter of fiscal 2017, Skyline Corporation (NYSE American: SKY) ("Skyline" or the "Corporation") reported the following results:

  • Net sales from continuing operations of $59,462,000, an increase of 5.0% over net sales of $56,651,000 from continuing operations in the year ago quarter. In June 2016, Skyline commenced operation of a leased facility in Elkhart, Indiana which contributed $415,000 of net sales and incurred a loss of $478,000 in the current quarter.
  • Income from continuing operations of $2,303,000 as compared to income of $1,534,000 from continuing operations in the fourth quarter of fiscal 2016. Included in current year income is a $1,280,000 net gain on the sale of property, plant and equipment.
  • No income or loss from discontinued operations as compared to a loss of $208,000 from discontinued operations in the fourth quarter of fiscal 2016.
  • Net income of $2,303,000 or $0.27 per share as compared to a net income of $1,326,000 or $0.16 per share in the fourth quarter of fiscal 2016.

For fiscal 2017, the Corporation reported the following results:

  • Net sales from continuing operations of $236,504,000, an increase of 11.7% over net sales of $211,774,000 from continuing operations in the prior year. Net sales attributable to the Elkhart facility during this period were $10,969,000 while losses at the Elkhart operations were $2,083,000.
  • Income from continuing operations of $5,000 as compared to income of $1,873,000 from continuing operations in fiscal 2016. Included in current year income from continuing operations is a $1,280,000 gain on the sale of property, plant and equipment.
  • No income or loss from discontinued operations as compared to a loss of $195,000 from discontinued operations in fiscal 2016.
  • Net income of $5,000 or $0.00 per share as compared to a net income of $1,678,000 or $0.20 per share in the fiscal 2016.

"We are pleased to have returned to profitability in the fourth quarter, but our operating and financial performance continued to be adversely impacted by the Elkhart and Mansfield facilities," said CEO Richard Florea. "With those closures behind us we are focusing our resources on driving profitable sales in our core business. We are encouraged by the overall demand for our products and manufactured housing in general."

Forward-Looking Statements

Information contained in this press release contains "forward-looking statements," including but not limited to statements related to the suspension of operations at the Elkhart and Mansfield facilities and the effects of such action, which are based on current expectations, forecasts, and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially.These risks and uncertainties include, but are not limited to, possible adverse consequences to the Corporation in connection with the suspension of operations at the facility, general business and economic conditions, and other factors, risks, and uncertainties contained in the Corporation's other filings with the Securities and Exchange Commission. For a further list and description of such risks, see the reports and other filings made by the Corporation with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended May 31, 2017. The Corporation disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

Skyline Corporation and Subsidiary Companies

Consolidated Balance Sheets

(Dollars in thousands)

May 31, 2017

May 31, 2016

Current Assets:

Cash

$ 11,384

$ 7,659

Accounts receivable

12,751

15,153

Inventories

12,233

11,381

Workers' compensation security deposit

371

1,294

Other current assets

563

331

Total Current Assets

37,302

35,818

Property, Plant and Equipment, at Cost:

Land

2,965

2,996

Buildings and improvements

35,368

36,624

Machinery and equipment

16,364

16,977

54,697

56,597

Less accumulated depreciation

43,721

44,952

10,976

11,645

Other Assets

7,366

7,515

Total Assets

$ 55,644

$ 54,978

Current Liabilities:

Accounts payable, trade

$ 3,861

$ 3,921

Accrued salaries and wages

3,530

3,557

Accrued marketing programs

1,986

1,767

Accrued warranty

4,757

4,817

Customer deposits

1,880

1,521

Other accrued liabilities

2,371

2,448

Total Current Liabilities

18,385

18,031

Long-Term Liabilities:

Deferred compensation expense

4,848

5,002

Accrued warranty

2,800

2,500

Life insurance loans

4,312

4,312

Total Long-Term Liabilities

11,960

11,814

Shareholders' Equity:

Common stock, $.0277 par value, 15,000,000 shares

authorized; issued 11,217,144 shares

312

312

Additional paid-in capital

5,171

5,010

Retained earnings

85,560

85,555

Treasury stock, at cost, 2,825,900 shares

(65,744)

(65,744)

Total Shareholders' Equity

25,299

25,133

Total Liabilities and Shareholders' Equity

$55,644

$ 54,978

Skyline Corporation and Subsidiary Companies

Consolidated Statements of Operations

For the Three-Months and Years Ended May 31, 2017 and 2016

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

Three-Months Ended

Years Ended

2017

2016

2017

2016

(Unaudited)

OPERATIONS

Net sales

$ 59,462

$ 56,651

$236,504

$211,774

Cost of sales

52,514

50,018

214,527

188,461

Gross profit

6,948

6,633

21,977

23,313

Selling and administrative expenses

5,838

5,015

22,908

21,120

Net gain on sale of property, plant and

equipment

1,280

-

1,280

-

Operating income

2,390

1,618

349

2,193

Interest expense

(87)

(84)

(344)

(320)

Income from continuing operations

before income taxes

2,303

1,534

5

1,873

Income tax expense

-

-

-

-

Income from continuing operations

2,303

1,534

5

1,873

Loss from discontinued operations,

net of taxes

-

(208)

-

(195)

Net income

$ 2,303

$ 1,326

$ 5

$ 1,678

Basic and diluted income per share

$ .27

$ .16

$ .00

$ .20

Basic and diluted income per share

from continuing operations

$ .27

$ .18

$ .00

$ .22

Basic and diluted loss per share

from discontinued operations

$ .00

$ (.02)

$ .00

$ (.02)

Weighted average number of common shares

outstanding:

Basic

8,391,244

8,391,244

8,391,244

8,391,244

Diluted

8,473,521

8,472,601

8,512,374

8,391,244

View original content:http://www.prnewswire.com/news-releases/skyline-reports-fourth-quarter-and-year-end-results-300503382.html

SOURCE Skyline Corporation