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
