Exhibit 99.1
NEWS RELEASE |
Skyline Corporation
2520By-Pass Road
P.O. Box 743
Elkhart, Indiana 46515-0743
(574)294-6521
Subject: SECOND QUARTER REPORT | Approved by: JON S. PILARSKI |
ELKHART, INDIANA — JANUARY 11, 2018
SKYLINE REPORTS SECOND QUARTER AND FIRST HALF RESULTS
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. |
Bringing America Home. | Bringing America Fun. |
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 | ||||||
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Total Current Assets | 41,384 | 37,302 | ||||||
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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 | ||||||
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54,503 | 54,697 | |||||||
Less accumulated depreciation | 44,092 | 43,721 | ||||||
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10,411 | 10,976 | |||||||
Other Assets | 7,242 | 7,366 | ||||||
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Total Assets | $ | 59,037 | $ | 55,644 | ||||
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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 | ||||||
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Total Current Liabilities | 18,707 | 18,385 | ||||||
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Long-Term Liabilities: | ||||||||
Deferred compensation expense | 4,808 | 4,848 | ||||||
Accrued warranty | 2,800 | 2,800 | ||||||
Life insurance loans | 2,707 | 4,312 | ||||||
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Total Long-Term Liabilities | 10,315 | 11,960 | ||||||
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Shareholders’ Equity: | ||||||||
Common stock, $.0277 par value, 15,000,000 shares | ||||||||
authorized; issued 11,217,144 shares | 312 | 312 | ||||||
Additionalpaid-in capital | 5,316 | 5,171 | ||||||
Retained earnings | 90,131 | 85,560 | ||||||
Treasury stock, at cost, 2,825,900 shares | (65,744 | ) | (65,744 | ) | ||||
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Total Shareholders’ Equity | 30,015 | 25,299 | ||||||
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Total Liabilities and Shareholders’ Equity | $ | 59,037 | $ | 55,644 | ||||
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Skyline Corporation and Subsidiary Companies
Consolidated Income Statements
For the Three-Months andSix-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 | ||||||||||||
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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 | — | ||||||||||||
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Operating income (loss) | 3,001 | (509 | ) | 4,755 | 321 | |||||||||||
Interest expense | (37 | ) | (86 | ) | (184 | ) | (172 | ) | ||||||||
Income tax expense | — | — | — | — | ||||||||||||
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Net income (loss) | $ | 2,964 | $ | (595 | ) | $ | 4,571 | $ | 149 | |||||||
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Basic and diluted income (loss) per share | $ | .35 | $ | (.07 | ) | $ | .54 | $ | .02 | |||||||
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Weighted average number of common shares outstanding: | ||||||||||||||||
Basic | 8,391,244 | 8,391,244 | 8,391,244 | 8,391,244 | ||||||||||||
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Diluted | 8,562,899 | 8,391,244 | 8,531,191 | 8,512,903 | ||||||||||||
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