Skyline Champion Corp - FORM 8-K - EX-99.1

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8-K - 8-K - Skyline Champion Corp	d454949d8k.htm

Exhibit 99.1

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ELKHART, INDIANA — OCTOBER 6, 2017

SKYLINE REPORTS FIRST QUARTER RESULTS

For the first quarter of fiscal 2018, Skyline Corporation (NYSE American: SKY) (“Skyline” or the “Corporation”) reported the following results:

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Net sales of $58,462,000, a decrease of 4.4% over net sales of $61,176,000 from the year ago quarter.

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Net income of $1,607,000 or $0.19 per share as compared to a net income of $744,000 or $0.09 per share in the first quarter of fiscal 2017. Included in current year net income is a $60,000 non-recurring loss on the sale of property, plant and equipment.

Forward-Looking Statements

Information contained in this press release contains “forward-looking statements,” 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, 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.

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Skyline Corporation and Subsidiary Companies

Consolidated Balance Sheets

(Dollars in thousands)


	September 3, 2017			May 31, 2017
	(Unaudited)
Current Assets:
Cash	$	12,635		$	11,384
Accounts receivable		13,562			12,751
Inventories		11,399			12,233
Workers’ compensation security deposit		371			371
Other current assets		1,156			563

Total Current Assets		39,123			37,302

Property, Plant and Equipment, at Cost:
Land		2,486			2,965
Buildings and improvements		35,356			35,368
Machinery and equipment		16,864			16,364

		54,706			54,697
Less accumulated depreciation		43,916			43,721

		10,790			10,976
Other Assets		7,230			7,366

Total Assets	$	57,143		$	55,644

Current Liabilities:
Accounts payable, trade	$	3,859		$	3,861
Accrued salaries and wages		3,002			3,530
Accrued volume rebates		2,643			1,986
Accrued warranty		4,088			4,757
Customer deposits		1,885			1,880
Other accrued liabilities		2,773			2,371

Total Current Liabilities		18,250			18,385

Long-Term Liabilities:
Deferred compensation expense		4,807			4,848
Accrued warranty		2,800			2,800
Life insurance loans		4,312			4,312

Total Long-Term Liabilities		11,919			11,960

Shareholders’ Equity:
Common stock, $.0277 par value, 15,000,000 shares authorized; issued 11,217,144 shares		312			312
Additional paid-in capital		5,239			5,171
Retained earnings		87,167			85,560
Treasury stock, at cost, 2,825,900 shares		(65,744	)		(65,744	)

Total Shareholders’ Equity		26,974			25,299

Total Liabilities and Shareholders’ Equity	$	57,143		$	55,644

Skyline Corporation and Subsidiary Companies

Consolidated Statements of Operations

For the Three-Months Ended September 3, 2017 and August 31, 2016

(Dollars in thousands, except share and per share amounts)


	Three-Months Ended
OPERATIONS	2017			2016
Net sales	$	58,462		$	61,176
Cost of sales		50,536			54,596

Gross profit		7,926			6,580
Selling and administrative expenses		6,112			5,750
Loss on sale of property, plant and equipment		(60	)		—

Operating income		1,754			830
Interest expense		(147	)		(86	)
Income tax expense		—			—

Net income	$	1,607		$	744

Basic and diluted income per share	$	.19		$	.09

Weighted average number of common shares outstanding:
Basic		8,391,244			8,391,244

Diluted		8,483,935			8,498,192

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