Skyline Reports Second Quarter And First Half Results

ELKHART, Ind., Jan. 11, 2018 /PRNewswire/ -- For the second quarter of fiscal 2018, Skyline Corporation (NYSE MKT: SKY) ("Skyline" or the "Corporation") reported the following results:

• Net sales of $57,765,000, a decrease of 10.1% over net sales of $64,226,000 from the year ago quarter.  The decrease is mainly due to prior period net manufactured housing sales including $8,092,000 attributable to facilities in Elkhart, Indiana and Mansfield, Texas which closed in the fourth quarter of fiscal 2017.  Modular housing net sales partially offset the decrease as a result of multiple facilities experiencing increased customer demand for this product.
• Operating income for fiscal 2018 was $3,001,000 as compared to an operating loss of $509,000 for fiscal 2017.  Current year operating income includes a $762,000 net gain on the sale of property, plant and equipment.  Prior year's operating loss included a $1,362,000 loss, excluding corporate overhead allocation, attributable to the Elkhart and Mansfield facilities.
• Net income of $2,964,000 or $0.35 per share as compared to a net loss of $595,000 or $0.07 per share in the second quarter of fiscal 2017.  Included in current year income is a net gain on sale of property, plant and equipment of $762,000.

For the first half of fiscal 2018, the Corporation reported the following results:

• Net sales of $116,227,000, a decrease of 7.3% over net sales of $125,402,000 from the year ago first half.  The decrease is mainly due to prior period net manufactured housing sales including $13,293,000 attributable to the Elkhart and Mansfield facilities.  Modular housing net sales partially offset the decrease as a result of multiple facilities experiencing increased customer demand for this product.  In addition, park model net sales rose as a result of management's continuing initiative to increase this product's exposure at substantially all of the Corporation's facilities.
• Operating income for fiscal 2018 was $4,755,000 as compared to operating income of $321,000 for fiscal 2017.  Current year operating income includes a $702,000 net gain on the sale of property, plant and equipment.  Prior year's operating income included a $2,517,000 loss, excluding corporate overhead allocation, attributable to the Elkhart and Mansfield facilities.
• Net income of $4,571,000 or $0.54 per share as compared to a net income of $149,000 or $0.02 per share in the six months of fiscal 2017.  Included in current year income is a net gain on sale of property, plant and equipment of $702,000.

 

 

Skyline Corporation and Subsidiary Companies Consolidated Balance Sheets (Dollars in thousands)
	December 3, 2017		May 31, 2017
	(Unaudited)
Current Assets:
Cash	$  12,287		$  11,384
Accounts receivable	14,802		12,751
Inventories	12,929		12,233
Workers' compensation security deposit	371		371
Other current assets	995		563
Total Current Assets	41,384		37,302
Property, Plant and Equipment, at Cost:
Land	2,016		2,965
Buildings and improvements	35,615		35,368
Machinery and equipment	16,872		16,364
	54,503		54,697
Less accumulated depreciation	44,092		43,721
	10,411		10,976
Other Assets	7,242		7,366
Total Assets	$  59,037		$  55,644
Current Liabilities:
Accounts payable, trade	$    4,056		$    3,861
Accrued salaries and wages	2,942		3,530
Accrued marketing programs	3,220		1,986
Accrued warranty	3,916		4,757
Customer deposits	1,977		1,880
Other accrued liabilities	2,596		2,371
Total Current Liabilities	18,707		18,385
Long-Term Liabilities:
Deferred compensation expense	4,808		4,848
Accrued warranty	2,800		2,800
Life insurance loans	2,707		4,312
Total Long-Term Liabilities	10,315		11,960
Shareholders' Equity:
Common stock, $.0277 par value, 15,000,000 shares
authorized; issued 11,217,144 shares	312		312
Additional paid-in capital	5,316		5,171
Retained earnings	90,131		85,560
Treasury stock, at cost, 2,825,900 shares	(65,744)		(65,744)
Total Shareholders' Equity	30,015		25,299
Total Liabilities and Shareholders' Equity	$59,037		$ 55,644

 

 

Skyline Corporation and Subsidiary Companies Consolidated Income Statements For the Three-Months and Six-Months Ended December 3, 2017 and November 30, 2016 (Dollars in thousands, except share and per share amounts)
	Three-Months Ended				Six-Months Ended
	2017		2016		2017		2016
	Unaudited)				(Unaudited)
OPERATIONS
Net sales	$ 57,765		$  64,226		$116,227		$125,402
Cost of sales	49,394		58,996		99,930		113,592
Gross profit	8,371		5,230		16,297		11,810
Selling and administrative expenses	6,132		5,739		12,244		11,489
Net gain on sale of property, plant and
equipment	762		-		702		-
Operating income (loss)	3,001		(509)		4,755		321
Interest expense	(37)		(86)		(184)		(172)
Income tax expense	-		-		-		-
Net income (loss)	$    2,964		$     (595)		$     4,571		$       149
Basic and diluted income (loss) per share	$        .35		$      (.07)		$         .54		$        .02
Weighted average number of common
shares outstanding:
Basic	8,391,244		8,391,244		8,391,244		8,391,244
Diluted	8,562,899		8,391,244		8,531,191		8,512,903

 

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SOURCE Skyline Corporation

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