Skyline Reports Second Quarter And First Half Results
ELKHART, Ind., Jan. 12, 2017 /PRNewswire/ -- For the second quarter of fiscal 2017, Skyline Corporation (NYSE MKT: SKY) ("Skyline" or the "Corporation") reported the following results:
- Net sales from continuing operations of $64,226,000, an increase of 9.4% over net sales of $58,684,000 from continuing operations in the year ago quarter.
- Loss from continuing operations of $595,000 as compared to income of $1,748,000 from continuing operations in the second quarter of fiscal 2016. Net income in the year ago quarter included a $250,000 payment on an account that had previously been fully reserved.
- No income or loss from discontinued operations as compared to a loss of $42,000 from discontinued operations in the second quarter of fiscal 2016.
- Net loss of $595,000 or $0.07 per share as compared to a net income of $1,706,000 or $0.20 per share in the second quarter of fiscal 2016.
- Skyline commenced operation of a new facility in June of 2016 which contributed $4,168,000 of sales and incurred $4,718,000 of expenses in the current quarter.
For the first half of fiscal 2017, the Corporation reported the following results:
- Net sales from continuing operations of $125,402,000, an increase of 16.7% over net sales of $107,426,000 from continuing operations in the year ago first half.
- Income from continuing operations of $149,000 as compared to income of $853,000 from continuing operations in the first six months of fiscal 2016. Net income in the year ago first half included a $250,000 payment on an account that had been previously reserved.
- No income or loss from discontinued operations as compared to income of $19,000 from discontinued operations in the first two quarters of fiscal 2016.
- Net income of $149,000 or $0.02 per share as compared to a net income of $872,000 or $0.10 per share in the first half of fiscal 2016.
- Skyline commenced operation of a new facility in June of 2016 which contributed $6,254,000 of sales and incurred $7,535,000 of expenses in the first half of fiscal 2017.
"Our second quarter and year to date results were negatively impacted by higher than expected startup costs and general inefficiencies in our new facility. We also experienced higher labor costs associated with hiring and training employees to meet the demands of increased production in a number of our facilities," commented President and Chief Executive Officer, Richard Florea. "We are redoubling our efforts to bolster our cost control environment to ensure that our labor and material costs meet our expectations despite these challenges."
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Skyline Corporation and Subsidiary Companies | |||
|
Consolidated Balance Sheets | |||
|
(Dollars in thousands) | |||
|
November 30, 2016 |
May 31, 2016 | ||
|
(Unaudited) |
|||
|
Current Assets: |
|||
|
Cash |
$ 8,902 |
$ 7,659 | |
|
Accounts receivable |
15,823 |
15,153 | |
|
Inventories |
11,956 |
11,381 | |
|
Workers' compensation security deposit |
690 |
1,294 | |
|
Other current assets |
1,048 |
331 | |
|
Total Current Assets |
38,419 |
35,818 | |
|
Property, Plant and Equipment, at Cost: |
|||
|
Land |
2,996 |
2,996 | |
|
Buildings and improvements |
37,207 |
36,624 | |
|
Machinery and equipment |
17,142 |
16,977 | |
|
57,345 |
56,597 | ||
|
Less accumulated depreciation |
45,423 |
44,952 | |
|
11,922 |
11,645 | ||
|
Other Assets |
7,386 |
7,515 | |
|
Total Assets |
$ 57,727 |
$ 54,978 | |
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Current Liabilities: |
|||
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Accounts payable, trade |
$ 4,013 |
$ 3,921 | |
|
Accrued salaries and wages |
3,507 |
3,557 | |
|
Accrued marketing programs |
3,638 |
1,767 | |
|
Accrued warranty |
5,379 |
4,817 | |
|
Customer deposits |
1,332 |
1,521 | |
|
Other accrued liabilities |
2,756 |
2,448 | |
|
Total Current Liabilities |
20,625 |
18,031 | |
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Long-Term Liabilities: |
|||
|
Deferred compensation expense |
4,946 |
5,002 | |
|
Accrued warranty |
2,500 |
2,500 | |
|
Life insurance loans |
4,312 |
4,312 | |
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Total Long-Term Liabilities |
11,758 |
11,814 | |
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Shareholders' Equity: |
|||
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Common stock, $.0277 par value, 15,000,000 shares |
|||
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authorized; issued 11,217,144 shares |
312 |
312 | |
|
Additional paid-in capital |
5,072 |
5,010 | |
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Retained earnings |
85,704 |
85,555 | |
|
Treasury stock, at cost, 2,825,900 shares |
(65,744) |
(65,744) | |
|
Total Shareholders' Equity |
25,344 |
25,133 | |
|
Total Liabilities and Shareholders' Equity |
$57,727 |
$ 54,978 | |
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Skyline Corporation and Subsidiary Companies Consolidated Statements of Operations | |||||||||
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For the Three-Months and Six-Months Ended November 30, 2016 and 2015 | |||||||||
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(Dollars in thousands, except share and per share amounts) | |||||||||
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Three-Months Ended |
Six-Months Ended | ||||||||
|
2016 |
2015 |
2016 |
2015 | ||||||
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(Unaudited) |
(Unaudited) | ||||||||
|
OPERATIONS |
|||||||||
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Net sales |
$ 64,226 |
$ 58,684 |
$125,402 |
$107,426 | |||||
|
Cost of sales |
58,996 |
51,457 |
113,592 |
95,556 | |||||
|
Gross profit |
5,230 |
7,227 |
11,810 |
11,870 | |||||
|
Selling and administrative expenses |
5,739 |
5,400 |
11,489 |
10,859 | |||||
|
Operating (loss) income |
(509) |
1,827 |
321 |
1,011 | |||||
|
Interest expense |
(86) |
(79) |
(172) |
(158) | |||||
|
(Loss) income from continuing operations |
|||||||||
|
before income taxes |
(595) |
1,748 |
149 |
853 | |||||
|
Income tax expense |
- |
- |
- |
- | |||||
|
(Loss) income from continuing operations |
(595) |
1,748 |
149 |
853 | |||||
|
(Loss) income from discontinued operations, |
|||||||||
|
net of taxes |
- |
(42) |
- |
19 | |||||
|
Net (loss) income |
$ (595) |
$ 1,706 |
$ 149 |
$ 872 | |||||
|
Basic and diluted (loss) income per share |
$ (.07) |
$ .20 |
$ .02 |
$ .10 | |||||
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Basic and diluted (loss) income per share |
|||||||||
|
from continuing operations |
$ (.07) |
$ .21 |
$ .02 |
$ .10 | |||||
|
Basic and diluted income (loss) per share |
|||||||||
|
from discontinued operations |
$ - |
$ (.01) |
$ - |
$ - | |||||
|
Weighted average number of common shares |
|||||||||
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outstanding: |
|||||||||
|
Basic |
8,391,244 |
8,391,244 |
8,391,244 |
8,391,244 | |||||
|
Diluted |
8,391,244 |
8,391,244 |
8,512,903 |
8,391,244 | |||||
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SOURCE Skyline Corporation