Exhibit 99.1
ELKHART, INDIANA -— JANUARY 7, 2011
SKYLINE REPORTS RESULTS FOR SECOND QUARTER AND FIRST HALF
Skyline’s sales for the second quarter of fiscal year 2011 were $36,621,000 as compared to $34,246,000 in the second quarter of fiscal 2010. For the first half of fiscal 2011, sales were $82,448,000 as compared to $70,120,000 in the first half of fiscal 2010.
Sales for Skyline’s manufactured and modular housing segment were $24,557,000 in the second quarter of fiscal 2011 as compared to $24,921,000 in the second quarter of fiscal 2010. For the first half of fiscal 2011, sales were $55,186,000 as compared to $50,703,000 in the first half of fiscal 2010.
Sales for Skyline’s recreational vehicle segment were $12,064,000 in fiscal 2011’s second quarter as compared to $9,325,000 for the second quarter of fiscal 2010. For the first half of fiscal 2011, sales were $27,262,000 as compared to $19,417,000 for the same period a year ago.
Fiscal 2011’s second quarter loss before income taxes was $7,756,000 as compared to fiscal 2010’s second quarter loss before income taxes of $6,122,000. The loss before income taxes for the first half of fiscal 2011 was $13,821,000 as compared to $12,235,000 in the first half of fiscal 2011. Included in prior year’s pretax loss for the first half was $412,000 of income from life insurance proceeds.
Skyline established in the fourth quarter of fiscal 2010 a full valuation allowance against its deferred tax assets, and continued to maintain a full valuation allowance during the second quarter of fiscal 2011. As a result, Skyline has not recognized any benefit from income taxes in fiscal 2011. Skyline, however, did recognize in prior year’s second quarter and first six months a benefit from income taxes of $2,314,000 and $4,520,000, respectively. If the Corporation, after considering future negative and positive evidence regarding the realization of deferred tax assets, determines that a lesser valuation allowance is warranted, it would record a reduction to income tax expense and the valuation allowance in the period of determination.
Skyline reported a net loss of $7,756,000 in the second quarter of fiscal 2011 as compared to a net loss of $3,808,000 in the second quarter of fiscal 2010. On a per share basis, net loss was $.93 as compared to a net loss of $.45 for the same period a year ago.
For the first half of fiscal 2011, net loss was $13,821,000 compared to a net loss of $7,715,000 for a year ago. Net loss per share was $1.65 as compared to a net loss per share of $.92 for the same period a year ago.
As Skyline begins its third quarter, historically the slowest period in its fiscal year, the Corporation continues to maintain its traditionally strong balance sheet with no debt and a healthy position in cash and U.S. Treasury Bills. This financial strength, along with a seasoned management team, should help the Corporation meet the challenges ahead.
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SKYLINE CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(Dollars in thousands, except share and per share data)
| | | | | | | | | | | | | | | | | |
| | | Three Months Ended | | | Six Months Ended | |
| | | November 30, | | | November 30, | |
| | | (Unaudited) | | | (Unaudited) | |
| | | 2010 | | | 2009 | | | 2010 | | | 2009 | |
| Sales | | $ | 36,621 | | | $ | 34,246 | | | $ | 82,448 | | | $ | 70,120 | |
| | | | | | | | | | | | | |
| Loss before income taxes | | | (7,756 | ) | | | (6,122 | ) | | | (13,821 | ) | | | (12,235 | )(A) |
| Benefit from income taxes | | | — | | | | 2,314 | | | | — | | | | 4,520 | |
| | | | | | | | | | | | | |
| Net loss | | $ | (7,756 | ) | | $ | (3,808 | ) | | $ | (13,821 | ) | | $ | (7,715 | ) |
| | | | | | | | | | | | | |
| Basic loss per share | | $ | (.93 | ) | | $ | (.45 | ) | | $ | (1.65 | ) | | $ | (.92 | ) |
| | | | | | | | | | | | | |
| Number of weighted average common shares outstanding | | | 8,391,244 | | | | 8,391,244 | | | | 8,391,244 | | | | 8,391,244 | |
| | | | | | | | | | | | | |
(A) Includes $412,000 of income from life insurance proceeds.
SKYLINE CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATED CONDENSED BALANCE SHEETS
(Dollars in thousands)
| | | | | | | | | |
| | | November 30, (Unaudited) | |
| | | 2010 | | | 2009 | |
| ASSETS | | | | | | | | |
| | | | | | | | | |
| Cash and temporary cash investments | | $ | 66,260 | | | $ | 82,537 | |
| Accounts receivable | | | 6,130 | | | | 5,907 | |
| Inventories | | | 6,922 | | | | 6,131 | |
| Other current assets | | | 3,194 | | | | 18,849 | |
| | | | | | | |
| | | | | | | | | |
| Total Current Assets | | | 82,506 | | | | 113,424 | |
| | | | | | | | | |
| Property, Plant and Equipment, net | | | 25,661 | | | | 29,918 | |
| | | | | | | | | |
| Noncurrent Deferred Tax Assets | | | — | | | | 9,322 | |
| | | | | | | | | |
| Other Assets | | | 5,748 | | | | 5,484 | |
| | | | | | | |
| | | | | | | | | |
| Total Assets | | $ | 113,915 | | | $ | 158,148 | |
| | | | | | | |
| | | | | | | | | |
| LIABILITIES AND SHAREHOLDERS’ EQUITY | | | | | | | | |
| | | | | | | | | |
| Accounts payable, trade | | $ | 1,953 | | | $ | 2,476 | |
| Accrued liabilities | | | 11,486 | | | | 13,086 | |
| | | | | | | |
| | | | | | | | | |
| Total Current Liabilities | | | 13,439 | | | | 15,562 | |
| | | | | | | |
| | | | | | | | | |
| Other Deferred Liabilities | | | 7,611 | | | | 8,580 | |
| | | | | | | |
| | | | | | | | | |
| Common stock | | | 312 | | | | 312 | |
| Additional paid-in capital | | | 4,928 | | | | 4,928 | |
| Retained earnings | | | 153,369 | | | | 194,510 | |
| Treasury stock, at cost | | | (65,744 | ) | | | (65,744 | ) |
| | | | | | | |
| | | | | | | | | |
| Total Shareholders’ Equity | | | 92,865 | | | | 134,006 | |
| | | | | | | |
| | | | | | | | | |
| Total Liabilities and Shareholders’ Equity | | $ | 113,915 | | | $ | 158,148 | |
| | | | | | | |
