SKYLINE CORPORATION ELKHART, Ind., Jan. 12, 2017 /PRNewswire/ -- For the second quarter of fiscal 2017, Skyline Corporation (NYSE MKT: SKY) ("Skyline" or the "Corporation") reported the following results:
-- Net sales from continuing operations of $64,226,000, an increase of 9.4%
over net sales of $58,684,000 from continuing operations in the year ago
quarter.
-- Loss from continuing operations of $595,000 as compared to income of
$1,748,000 from continuing operations in the second quarter of fiscal
2016. Net income in the year ago quarter included a $250,000 payment on
an account that had previously been fully reserved.
-- No income or loss from discontinued operations as compared to a loss of
$42,000 from discontinued operations in the second quarter of fiscal
2016.
-- Net loss of $595,000 or $0.07 per share as compared to a net income of
$1,706,000 or $0.20 per share in the second quarter of fiscal 2016.
-- Skyline commenced operation of a new facility in June of 2016 which
contributed $4,168,000 of sales and incurred $4,718,000 of expenses in
the current quarter.
For the first half of fiscal 2017, the Corporation reported the following results:
-- Net sales from continuing operations of $125,402,000, an increase of
16.7% over net sales of $107,426,000 from continuing operations in the
year ago first half.
-- Income from continuing operations of $149,000 as compared to income of
$853,000 from continuing operations in the first six months of fiscal
2016. Net income in the year ago first half included a $250,000 payment
on an account that had been previously reserved.
-- No income or loss from discontinued operations as compared to income of
$19,000 from discontinued operations in the first two quarters of fiscal
2016.
-- Net income of $149,000 or $0.02 per share as compared to a net income of
$872,000 or $0.10 per share in the first half of fiscal 2016.
-- Skyline commenced operation of a new facility in June of 2016 which
contributed $6,254,000 of sales and incurred $7,535,000 of expenses in
the first half of fiscal 2017.
"Our second quarter and year to date results were negatively impacted by higher than expected startup costs and general inefficiencies in our new facility. We also experienced higher labor costs associated with hiring and training employees to meet the demands of increased production in a number of our facilities," commented President and Chief Executive Officer, Richard Florea. "We are redoubling our efforts to bolster our cost control environment to ensure that our labor and material costs meet our expectations despite these challenges."
Skyline Corporation and Subsidiary Companies
Consolidated Balance Sheets
(Dollars in thousands)
November 30, 2016 May 31, 2016
----------------- ------------
(Unaudited)
Current Assets:
Cash $8,902 $7,659
Accounts receivable 15,823 15,153
Inventories 11,956 11,381
Workers' compensation security
deposit 690 1,294
Other current assets 1,048 331
----- ---
Total Current Assets 38,419 35,818
------ ------
Property, Plant and Equipment, at Cost:
Land 2,996 2,996
Buildings and improvements 37,207 36,624
Machinery and equipment 17,142 16,977
------ ------
57,345 56,597
Less accumulated depreciation 45,423 44,952
------ ------
11,922 11,645
Other Assets 7,386 7,515
----- -----
Total Assets $57,727 $54,978
======= =======
Current Liabilities:
Accounts payable, trade $4,013 $3,921
Accrued salaries and wages 3,507 3,557
Accrued marketing programs 3,638 1,767
Accrued warranty 5,379 4,817
Customer deposits 1,332 1,521
Other accrued liabilities 2,756 2,448
----- -----
Total Current Liabilities 20,625 18,031
------ ------
Long-Term Liabilities:
Deferred compensation expense 4,946 5,002
Accrued warranty 2,500 2,500
Life insurance loans 4,312 4,312
----- -----
Total Long-Term Liabilities 11,758 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 5,072 5,010
Retained earnings 85,704 85,555
Treasury stock, at cost,
2,825,900 shares (65,744) (65,744)
------- -------
Total Shareholders' Equity 25,344 25,133
------ ------
Total Liabilities and
Shareholders' Equity $57,727 $54,978
======= =======
Skyline Corporation and Subsidiary Companies
Consolidated Statements of Operations
For the Three-Months and Six-Months Ended November 30, 2016 and 2015
(Dollars in thousands, except share and per share amounts)
Three-Months Ended Six-Months Ended
2016 2015 2016 2015
---- ---- ---- ----
(Unaudited) (Unaudited)
OPERATIONS
Net sales $64,226 $58,684 $125,402 $107,426
Cost of sales 58,996 51,457 113,592 95,556
------ ------ ------- ------
Gross profit 5,230 7,227 11,810 11,870
Selling and administrative
expenses 5,739 5,400 11,489 10,859
----- ----- ------ ------
Operating (loss) income (509) 1,827 321 1,011
Interest expense (86) (79) (172) (158)
--- --- ---- ----
(Loss) income from continuing operations
before income taxes (595) 1,748 149 853
Income tax expense - - - -
--- --- --- ---
(Loss) income from
continuing operations (595) 1,748 149 853
(Loss) income from discontinued operations,
net of taxes - (42) - 19
--- --- --- ---
Net (loss) income $(595) $1,706 $149 $872
===== ====== ==== ====
Basic and diluted (loss)
income per share $(.07) $.20 $.02 $.10
===== ==== ==== ====
Basic and diluted (loss) income per share
from continuing operations $(.07) $.21 $.02 $.10
===== ==== ==== ====
Basic and diluted income (loss) per share
from discontinued
operations $ - $(.01) $ - $ -
============= ===== ============= =============
Weighted average number of common shares
outstanding:
Basic 8,391,244 8,391,244 8,391,244 8,391,244
========= ========= ========= =========
Diluted 8,391,244 8,391,244 8,512,903 8,391,244
========= ========= ========= =========
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/skyline-reports-second-quarter-and-first-half-results-300390152.html
SOURCE Skyline Corporation
