Attached files
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| 8-K - FORM 8-K - Skyline Champion Corp | d442424d8k.htm |
Exhibit 99.1
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NEWS RELEASE |
Skyline Corporation
2520 By-Pass Road
P.O. Box 743
Elkhart, Indiana 46515-0743
(574) 294-6521
| Subject: FOURTH QUARTER REPORT | Approved by: JON S. PILARSKI |
ELKHART, INDIANA — AUGUST 11, 2017
SKYLINE REPORTS FOURTH QUARTER AND YEAR-END RESULTS
For the fourth quarter of fiscal 2017, Skyline Corporation (NYSE American: SKY) (“Skyline” or the “Corporation”) reported the following results:
| • | Net sales from continuing operations of $59,462,000, an increase of 5.0% over net sales of $56,651,000 from continuing operations in the year ago quarter. In June 2016, Skyline commenced operation of a leased facility in Elkhart, Indiana which contributed $415,000 of net sales and incurred a loss of $478,000 in the current quarter. |
| • | Income from continuing operations of $2,303,000 as compared to income of $1,534,000 from continuing operations in the fourth quarter of fiscal 2016. Included in current year income is a $1,280,000 net gain on the sale of property, plant and equipment. |
| • | No income or loss from discontinued operations as compared to a loss of $208,000 from discontinued operations in the fourth quarter of fiscal 2016. |
| • | Net income of $2,303,000 or $0.27 per share as compared to a net income of $1,326,000 or $0.16 per share in the fourth quarter of fiscal 2016. |
For fiscal 2017, the Corporation reported the following results:
| • | Net sales from continuing operations of $236,504,000, an increase of 11.7% over net sales of $211,774,000 from continuing operations in the prior year. Net sales attributable to the Elkhart facility during this period were $10,969,000 while losses at the Elkhart operations were $2,083,000. |
| • | Income from continuing operations of $5,000 as compared to income of $1,873,000 from continuing operations in fiscal 2016. Included in current year income from continuing operations is a $1,280,000 gain on the sale of property, plant and equipment. |
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NEWS RELEASE |
Skyline Corporation
2520 By-Pass Road
P.O. Box 743
Elkhart, Indiana 46515-0743
(574) 294-6521
| Subject: FOURTH QUARTER REPORT | Approved by: JON S. PILARSKI |
| • | No income or loss from discontinued operations as compared to a loss of $195,000 from discontinued operations in fiscal 2016. |
| • | Net income of $5,000 or $0.00 per share as compared to a net income of $1,678,000 or $0.20 per share in the fiscal 2016. |
“We are pleased to have returned to profitability in the fourth quarter, but our operating and financial performance continued to be adversely impacted by the Elkhart and Mansfield facilities.” said CEO Richard Florea. “With those closures behind us we are focusing our resources on driving profitable sales in our core business. We are encouraged by the overall demand for our products and manufactured housing in general.”
Forward-Looking Statements
Information contained in this press release contains “forward-looking statements,” including but not limited to statements related to the suspension of operations at the Elkhart and Mansfield facilities and the effects of such action, which are based on current expectations, forecasts, and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. These risks and uncertainties include, but are not limited to, possible adverse consequences to the Corporation in connection with the suspension of operations at the facility, general business and economic conditions, and other factors, risks, and uncertainties contained in the Corporation’s other filings with the Securities and Exchange Commission. For a further list and description of such risks, see the reports and other filings made by the Corporation with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended May 31, 2017. The Corporation disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
Skyline Corporation and Subsidiary Companies
Consolidated Balance Sheets
(Dollars in thousands)
| May 31, 2017 | May 31, 2016 | |||||||
| Current Assets: |
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| Cash |
$ | 11,384 | $ | 7,659 | ||||
| Accounts receivable |
12,751 | 15,153 | ||||||
| Inventories |
12,233 | 11,381 | ||||||
| Workers’ compensation security deposit |
371 | 1,294 | ||||||
| Other current assets |
563 | 331 | ||||||
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| Total Current Assets |
37,302 | 35,818 | ||||||
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| Property, Plant and Equipment, at Cost: |
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| Land |
2,965 | 2,996 | ||||||
| Buildings and improvements |
35,368 | 36,624 | ||||||
| Machinery and equipment |
16,364 | 16,977 | ||||||
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| 54,697 | 56,597 | |||||||
| Less accumulated depreciation |
43,721 | 44,952 | ||||||
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| 10,976 | 11,645 | |||||||
| Other Assets |
7,366 | 7,515 | ||||||
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| Total Assets |
$ | 55,644 | $ | 54,978 | ||||
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| Current Liabilities: |
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| Accounts payable, trade |
$ | 3,861 | $ | 3,921 | ||||
| Accrued salaries and wages |
3,530 | 3,557 | ||||||
| Accrued marketing programs |
1,986 | 1,767 | ||||||
| Accrued warranty |
4,757 | 4,817 | ||||||
| Customer deposits |
1,880 | 1,521 | ||||||
| Other accrued liabilities |
2,371 | 2,448 | ||||||
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| Total Current Liabilities |
18,385 | 18,031 | ||||||
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| Long-Term Liabilities: |
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| Deferred compensation expense |
4,848 | 5,002 | ||||||
| Accrued warranty |
2,800 | 2,500 | ||||||
| Life insurance loans |
4,312 | 4,312 | ||||||
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| Total Long-Term Liabilities |
11,960 | 11,814 | ||||||
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| Shareholders’ Equity: |
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| Common stock, $.0277 par value, 15,000,000 shares authorized; issued 11,217,144 shares |
312 | 312 | ||||||
| Additional paid-in capital |
5,171 | 5,010 | ||||||
| Retained earnings |
85,560 | 85,555 | ||||||
| Treasury stock, at cost, 2,825,900 shares |
(65,744 | ) | (65,744 | ) | ||||
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| Total Shareholders’ Equity |
25,299 | 25,133 | ||||||
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| Total Liabilities and Shareholders’ Equity |
$ | 55,644 | $ | 54,978 | ||||
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Skyline Corporation and Subsidiary Companies
Consolidated Statements of Operations
For the Three-Months and Years Ended May 31, 2017 and 2016
(Dollars in thousands, except share and per share amounts)
| Three-Months Ended | Years Ended | |||||||||||||||
| 2017 | 2016 | 2017 | 2016 | |||||||||||||
| (Unaudited) | ||||||||||||||||
| OPERATIONS |
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| Net sales |
$ | 59,462 | $ | 56,651 | $ | 236,504 | $ | 211,774 | ||||||||
| Cost of sales |
52,514 | 50,018 | 214,527 | 188,461 | ||||||||||||
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| Gross profit |
6,948 | 6,633 | 21,977 | 23,313 | ||||||||||||
| Selling and administrative expenses |
5,838 | 5,015 | 22,908 | 21,120 | ||||||||||||
| Net gain on sale of property, plant and equipment |
1,280 | — | 1,280 | — | ||||||||||||
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| Operating income |
2,390 | 1,618 | 349 | 2,193 | ||||||||||||
| Interest expense |
(87 | ) | (84 | ) | (344 | ) | (320 | ) | ||||||||
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| Income from continuing operations |
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| before income taxes |
2,303 | 1,534 | 5 | 1,873 | ||||||||||||
| Income tax expense |
— | — | — | — | ||||||||||||
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| Income from continuing operations |
2,303 | 1,534 | 5 | 1,873 | ||||||||||||
| Loss from discontinued operations, net of taxes |
— | (208 | ) | — | (195 | ) | ||||||||||
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| Net income |
$ | 2,303 | $ | 1,326 | $ | 5 | $ | 1,678 | ||||||||
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| Basic and diluted income per share |
$ | .27 | $ | .16 | $ | .00 | $ | .20 | ||||||||
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| Basic and diluted income per share from continuing operations |
$ | .27 | $ | .18 | $ | .00 | $ | .22 | ||||||||
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| Basic and diluted loss per share from discontinued operations |
$ | .00 | $ | (.02 | ) | $ | .00 | $ | (.02 | ) | ||||||
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| Weighted average number of common shares outstanding: |
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| Basic |
8,391,244 | 8,391,244 | 8,391,244 | 8,391,244 | ||||||||||||
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| Diluted |
8,473,521 | 8,472,601 | 8,512,374 | 8,391,244 | ||||||||||||
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