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."
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
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
Less accumulated depreciation 43,721 44,952
Other Assets 7,366 7,515
Total Assets $ 55,644 $ 54,978
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
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
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
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
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
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SOURCE Skyline Corporation