Exhibit 99.1
![]() | NEWS RELEASE |
Skyline Corporation
2520By-Pass Road
P.O. Box 743
Elkhart, Indiana 46515-0743
(574)294-6521
Subject: THIRD QUARTER REPORT | Approved by: JON S. PILARSKI |
ELKHART, INDIANA — APRIL 12, 2018
SKYLINE REPORTS THIRD QUARTER AND FIRST NINE MONTHS RESULTS
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 innon-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 innon-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. |
BRINGING AMERICA HOME. BRINGING AMERICA FUN.
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 | ||||||
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Total Current Assets | 43,101 | 37,302 | ||||||
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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 | ||||||
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54,823 | 54,697 | |||||||
Less accumulated depreciation | 44,191 | 43,721 | ||||||
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10,632 | 10,976 | |||||||
Other Assets | 4,705 | 7,366 | ||||||
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Total Assets | $ | 58,438 | $ | 55,644 | ||||
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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 | ||||||
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Total Current Liabilities | 19,529 | 18,385 | ||||||
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Long-Term Liabilities: | ||||||||
Deferred compensation expense | 4,801 | 4,848 | ||||||
Accrued warranty | 2,800 | 2,800 | ||||||
Life insurance loans | — | 4,312 | ||||||
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Total Long-Term Liabilities | 7,601 | 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 | 5,391 | 5,171 | ||||||
Retained earnings | 91,349 | 85,560 | ||||||
Treasury stock, at cost, 2,825,900 shares | (65,744 | ) | (65,744 | ) | ||||
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Total Shareholders’ Equity | 31,308 | 25,299 | ||||||
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Total Liabilities and Shareholders’ Equity | $ | 58,438 | $ | 55,644 | ||||
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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 | ||||||||||||
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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 | — | ||||||||||||
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Operating income (loss) | 1,233 | (2,362 | ) | 5,988 | (2,041 | ) | ||||||||||
Interest expense | (15 | ) | (85 | ) | (199 | ) | (257 | ) | ||||||||
Income tax expense | — | — | — | — | ||||||||||||
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Net income (loss) | $ | 1,218 | $ | (2,447 | ) | $ | 5,789 | $ | (2,298 | ) | ||||||
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Basic income (loss) per share | $ | .15 | $ | (.29 | ) | $ | .69 | $ | (.27 | ) | ||||||
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Diluted income (loss) per share | $ | .14 | $ | (.29 | ) | $ | .68 | $ | (.27 | ) | ||||||
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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 | 8,627,332 | 8,391,244 | 8,574,146 | 8,391,244 | ||||||||||||
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