Skyline Reports Second Quarter And First Half Results

ELKHART, Ind., Jan. 12, 2017

• 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."