Skyline Reports 3Q Net Loss on Higher Revenue
Recreational vehicle and manufactured housing builder Skyline Corp. reported a net loss on increased revenue for its fiscal third quarter, ended Feb. 29.
Total net sales in the period were $36.8 million, a 16% increase from the $31.8 million reported in the same period a year ago. RV sales rose 34% to $17.7 million from $13.3 million in the previous year while housing revenue edged up 3% to $19 million.
Net loss for the third quarter of fiscal 2012 was nearly $7.4 million as compared to a loss of $8.7 million for the third quarter of fiscal 2011. On a per share basis, net loss was 88 cents compared to $1.04 for the same period a year ago.
Elkhart, Ind.-based Skyline announced the closure of its recreational vehicle facility in Hemet, Calif., due to weak demand in its market area – primarily states in the Pacific and Rocky Mountain regions. Operations are expected to conclude in April. The company said dealers that purchased recreational vehicles from this facility will have their product needs met by the facilities in Bristol and Elkhart.
Other highlights included:
• The board approved a resolution to suspend dividend payments on the outstanding shares of the corporation’s common stock until further notice. The suspension was for cash preservation purposes. The Board will evaluate financial performance and liquidity needs in determining the timing and amount of future dividend payments.
• Skyline reached a settlement in the case of FEMA formaldehyde product liability litigation. The settlement resulted in the corporation incurring a charge of approximately $400,000. The total settlement of $737,000 was remitted to the United States District Court, Eastern District of Louisiana subsequent to Feb. 29.
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