UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15 (d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) January 11, 2018
SKYLINE CORPORATION
(Exact name of registrant as specified in its charter)
Indiana | 1-4714 | 35-1038277 | ||
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
P. O. Box 743, 2520 By-Pass Road Elkhart, IN 46515
(Address of principal executive offices) (Zip Code)
(Registrants telephone number, including area code) (574) 294-6521
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under Exchange Act (17 CFR 240.13e-4(c)) |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On January 11, 2018, Skyline Corporation issued a news release reporting its financial results for the second quarter and first half ended on December 3, 2017. A copy of the news release is attached to this Current Report as Exhibit 99.1.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits:
99.1 | News release of Skyline Corporation dated January 11, 2018 |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this current report to be signed on its behalf by the undersigned hereunto duly authorized.
SKYLINE CORPORATION |
Date: January 11, 2018
By: | /s/ Jon S. Pilarski | |
Jon S. Pilarski Chief Financial Officer |
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: SECOND QUARTER REPORT | Approved by: JON S. PILARSKI |
ELKHART, INDIANA JANUARY 11, 2018
SKYLINE REPORTS SECOND QUARTER AND FIRST HALF RESULTS
For the second quarter of fiscal 2018, Skyline Corporation (NYSE MKT: SKY) (Skyline or the Corporation) reported the following results:
| Net sales of $57,765,000, a decrease of 10.1% over net sales of $64,226,000 from the year ago quarter. The decrease is mainly due to prior period net manufactured housing sales including $8,092,000 attributable to facilities in Elkhart, Indiana and Mansfield, Texas which closed in the fourth quarter of fiscal 2017. Modular housing net sales partially offset the decrease as a result of multiple facilities experiencing increased customer demand for this product. |
| Operating income for fiscal 2018 was $3,001,000 as compared to an operating loss of $509,000 for fiscal 2017. Current year operating income includes a $762,000 net gain on the sale of property, plant and equipment. Prior years operating loss included a $1,362,000 loss, excluding corporate overhead allocation, attributable to the Elkhart and Mansfield facilities. |
| Net income of $2,964,000 or $0.35 per share as compared to a net loss of $595,000 or $0.07 per share in the second quarter of fiscal 2017. Included in current year income is a net gain on sale of property, plant and equipment of $762,000. |
For the first half of fiscal 2018, the Corporation reported the following results:
| Net sales of $116,227,000, a decrease of 7.3% over net sales of $125,402,000 from the year ago first half. The decrease is mainly due to prior period net manufactured housing sales including $13,293,000 attributable to the Elkhart and Mansfield facilities. Modular housing net sales partially offset the decrease as a result of multiple facilities experiencing increased customer demand for this product. In addition, park model net sales rose as a result of managements continuing initiative to increase this products exposure at substantially all of the Corporations facilities. |
| Operating income for fiscal 2018 was $4,755,000 as compared to operating income of $321,000 for fiscal 2017. Current year operating income includes a $702,000 net gain on the sale of property, plant and equipment. Prior years operating income included a $2,517,000 loss, excluding corporate overhead allocation, attributable to the Elkhart and Mansfield facilities. |
| Net income of $4,571,000 or $0.54 per share as compared to a net income of $149,000 or $0.02 per share in the six months of fiscal 2017. Included in current year income is a net gain on sale of property, plant and equipment of $702,000. |
Bringing America Home. | Bringing America Fun. |
Skyline Corporation and Subsidiary Companies
Consolidated Balance Sheets
(Dollars in thousands)
December 3, 2017 |
May 31, 2017 |
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(Unaudited) | ||||||||
Current Assets: |
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Cash |
$ | 12,287 | $ | 11,384 | ||||
Accounts receivable |
14,802 | 12,751 | ||||||
Inventories |
12,929 | 12,233 | ||||||
Workers compensation security deposit |
371 | 371 | ||||||
Other current assets |
995 | 563 | ||||||
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Total Current Assets |
41,384 | 37,302 | ||||||
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Property, Plant and Equipment, at Cost: |
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Land |
2,016 | 2,965 | ||||||
Buildings and improvements |
35,615 | 35,368 | ||||||
Machinery and equipment |
16,872 | 16,364 | ||||||
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54,503 | 54,697 | |||||||
Less accumulated depreciation |
44,092 | 43,721 | ||||||
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10,411 | 10,976 | |||||||
Other Assets |
7,242 | 7,366 | ||||||
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Total Assets |
$ | 59,037 | $ | 55,644 | ||||
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Current Liabilities: |
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Accounts payable, trade |
$ | 4,056 | $ | 3,861 | ||||
Accrued salaries and wages |
2,942 | 3,530 | ||||||
Accrued marketing programs |
3,220 | 1,986 | ||||||
Accrued warranty |
3,916 | 4,757 | ||||||
Customer deposits |
1,977 | 1,880 | ||||||
Other accrued liabilities |
2,596 | 2,371 | ||||||
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Total Current Liabilities |
18,707 | 18,385 | ||||||
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Long-Term Liabilities: |
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Deferred compensation expense |
4,808 | 4,848 | ||||||
Accrued warranty |
2,800 | 2,800 | ||||||
Life insurance loans |
2,707 | 4,312 | ||||||
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Total Long-Term Liabilities |
10,315 | 11,960 | ||||||
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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 |
5,316 | 5,171 | ||||||
Retained earnings |
90,131 | 85,560 | ||||||
Treasury stock, at cost, 2,825,900 shares |
(65,744 | ) | (65,744 | ) | ||||
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Total Shareholders Equity |
30,015 | 25,299 | ||||||
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Total Liabilities and Shareholders Equity |
$ | 59,037 | $ | 55,644 | ||||
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Skyline Corporation and Subsidiary Companies
Consolidated Income Statements
For the Three-Months and Six-Months Ended December 3, 2017 and November 30, 2016
(Dollars in thousands, except share and per share amounts)
Three-Months Ended | Six-Months Ended | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
(Unaudited) | (Unaudited) | |||||||||||||||
OPERATIONS |
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Net sales |
$ | 57,765 | $ | 64,226 | $ | 116,227 | $ | 125,402 | ||||||||
Cost of sales |
49,394 | 58,996 | 99,930 | 113,592 | ||||||||||||
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Gross profit |
8,371 | 5,230 | 16,297 | 11,810 | ||||||||||||
Selling and administrative expenses |
6,132 | 5,739 | 12,244 | 11,489 | ||||||||||||
Net gain on sale of property, plant and equipment |
762 | | 702 | | ||||||||||||
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Operating income (loss) |
3,001 | (509 | ) | 4,755 | 321 | |||||||||||
Interest expense |
(37 | ) | (86 | ) | (184 | ) | (172 | ) | ||||||||
Income tax expense |
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Net income (loss) |
$ | 2,964 | $ | (595 | ) | $ | 4,571 | $ | 149 | |||||||
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Basic and diluted income (loss) per share |
$ | .35 | $ | (.07 | ) | $ | .54 | $ | .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 |
8,562,899 | 8,391,244 | 8,531,191 | 8,512,903 | ||||||||||||
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