Skyline Reports Third Quarter And First Nine Months Results
ELKHART, Ind., April 12, 2018 /PRNewswire/ -- For the third quarter of fiscal 2018, Skyline Corporation (NYSE American: SKY) ("Skyline" or the "Corporation") reported the following results:
- Net sales of $57,978,000, an increase of 12.3% over net sales of $51,640,000 in the year ago quarter. The current quarter included approximately $5,000,000 of homes constructed to Federal Emergency Management Agency ("FEMA") specifications that were sold to an authorized FEMA contractor. The year ago quarter included net sales of $7,573,000 attributable to the Elkhart, Indiana and Mansfield, Texas facilities which closed in the fourth quarter of fiscal 2017.
- Operating income for fiscal 2018 was $1,233,000 as compared to an operating loss of $2,362,000 for fiscal 2017. Current year operating income includes $1,013,000 in non-recurring costs associated with the pending merger with Champion Enterprise Holdings, LLC ("Champion"). The prior year's operating loss included a $945,000 loss, excluding corporate overhead allocation, attributable to the Elkhart and Mansfield facilities.
- Net income for fiscal 2018 was $1,218,000 as compared to a net loss of $2,447,000 for fiscal 2017. On a basic per share basis, net income was $.15 as compared to a net loss of $.29 for year ago quarter.
For the nine months of fiscal 2018, the Corporation reported the following results:
- Net sales of $174,205,000, an approximate 1.6 percent decrease from net sales of $177,042,000 in the year ago period. The first nine months of fiscal 2017 included net sales of $20,866,000 attributable to the Elkhart, Indiana and Mansfield, Texas facilities.
- Operating income for fiscal 2018 was $5,988,000 as compared to an operating loss of $2,041,000 for fiscal 2017. Current year operating income includes a $702,000 net gain on the sale of property, plant and equipment, and $1,203,000 in non-recurring costs associated with the pending merger with Champion. Prior year's operating loss included a $3,462,000 loss, excluding corporate overhead allocation, attributable to the Elkhart and Mansfield facilities.
- Net income for fiscal 2018 was $5,789,000 as compared to a net loss of $2,298,000 for fiscal 2017. On a basic per share basis, net income was $.69 as compared to a net loss of $.27 for the year ago quarter.
Skyline Corporation and Subsidiary Companies Consolidated Balance Sheets (Dollars in thousands) | |||
March 4, 2018 | May 31, 2017 | ||
(Unaudited) | |||
Current Assets: | |||
Cash | $ 14,090 | $ 11,384 | |
Accounts receivable | 14,345 | 12,751 | |
Inventories | 13,046 | 12,233 | |
Workers' compensation security deposit | 800 | 371 | |
Other current assets | 820 | 563 | |
Total Current Assets | 43,101 | 37,302 | |
Property, Plant and Equipment, at Cost: | |||
Land | 2,016 | 2,965 | |
Buildings and improvements | 36,092 | 35,368 | |
Machinery and equipment | 16,715 | 16,364 | |
54,823 | 54,697 | ||
Less accumulated depreciation | 44,191 | 43,721 | |
10,632 | 10,976 | ||
Other Assets | 4,705 | 7,366 | |
Total Assets | $ 58,438 | $ 55,644 | |
Current Liabilities: | |||
Accounts payable, trade | $ 5,240 | $ 3,861 | |
Accrued salaries and wages | 3,350 | 3,530 | |
Accrued marketing programs | 3,306 | 1,986 | |
Accrued warranty | 3,811 | 4,757 | |
Customer deposits | 1,480 | 1,880 | |
Other accrued liabilities | 2,342 | 2,371 | |
Total Current Liabilities | 19,529 | 18,385 | |
Long-Term Liabilities: | |||
Deferred compensation expense | 4,801 | 4,848 | |
Accrued warranty | 2,800 | 2,800 | |
Life insurance loans | - | 4,312 | |
Total Long-Term Liabilities | 7,601 | 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 | 5,391 | 5,171 | |
Retained earnings | 91,349 | 85,560 | |
Treasury stock, at cost, 2,825,900 shares | (65,744) | (65,744) | |
Total Shareholders' Equity | 31,308 | 25,299 | |
Total Liabilities and Shareholders' Equity | $58,438 | $ 55,644 | |
Skyline Corporation and Subsidiary Companies Consolidated Income Statements For the Three-Months and Nine-Months Ended March 4, 2018 and February 28, 2017 (Dollars in thousands, except share and per share amounts) | |||||||
Three-Months Ended | Nine-Months Ended | ||||||
2018 | 2017 | 2018 | 2017 | ||||
(Unaudited) | (Unaudited) | ||||||
OPERATIONS | |||||||
Net sales | $ 57,978 | $ 51,640 | $174,205 | $177,042 | |||
Cost of sales | 49,832 | 48,421 | 149,762 | 162,013 | |||
Gross profit | 8,146 | 3,219 | 24,443 | 15,029 | |||
Selling and administrative expenses | 6,913 | 5,581 | 19,157 | 17,070 | |||
Net gain on sale of property, plant and | |||||||
equipment | - | - | 702 | - | |||
Operating income (loss) | 1,233 | (2,362) | 5,988 | (2,041) | |||
Interest expense | (15) | (85) | (199) | (257) | |||
Income tax expense | - | - | - | - | |||
Net income (loss) | $ 1,218 | $ (2,447) | $ 5,789 | $ (2,298) | |||
Basic income (loss) per share | $ .15 | $ (.29) | $ .69 | $ (.27) | |||
Diluted income (loss) per share | $ .14 | $ (.29) | $ .68 | $ (.27) | |||
Weighted average number of common | |||||||
shares outstanding: | |||||||
Basic | 8,391,244 | 8,391,244 | 8,391,244 | 8,391,244 | |||
Diluted | 8,627,332 | 8,391,244 | 8,574,146 | 8,391,244 | |||
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SOURCE Skyline Corporation
