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."
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 ======= ======= Current Liabilities: 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 ------ ------ Long-Term Liabilities: Deferred compensation expense 4,946 5,002 Accrued warranty 2,500 2,500 Life insurance loans 4,312 4,312 ----- ----- Total Long-Term Liabilities 11,758 11,814 ------ ------ Shareholders' Equity: Common stock, $.0277 par value, 15,000,000 shares authorized; issued 11,217,144 shares 312 312 Additional paid-in capital 5,072 5,010 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 ======= =======
Skyline Corporation and Subsidiary Companies Consolidated Statements of Operations For the Three-Months and Six-Months Ended November 30, 2016 and 2015 (Dollars in thousands, except share and per share amounts) Three-Months Ended Six-Months Ended 2016 2015 2016 2015 ---- ---- ---- ---- (Unaudited) (Unaudited) OPERATIONS 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 ===== ==== ==== ==== 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 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