Skyline Corp. posted an increase in recreational vehicle sales for its fiscal 2012 first quarter while reporting a net loss for the period, as the manufactured housing market remained soft.
RV sales were up 39%, growing from $15.2 million a year ago to $21.1 million. Unit shipments for travel trailers and fifth-wheels increased approximately 44% from the year prior while industry shipments for these products during the period decreased approximately 2%. Housing sales were down 5%, slipping to $29.1 million from $30.6 million.
The Elkhart, Ind.-based builder reported a net loss of $6.8 million compared to $6 million last year.
To keep in line with demand, on May 31 Skyline ceased housing production at its Bristol, Ind., facility to produce RVs. The conversion is scheduled to be completed Oct. 31. The company also closed a housing facility in Fair Haven, Vt.
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The National Association of RV Parks and Campgrounds (ARVC) and Skyline Corp. have negotiated an agreement that gives Skyline “preferred provider” status on park model and travel trailer sales to ARVC-member parks in the U.S. and Canada.
“I am very excited to have Skyline as a preferred provider,” said David L. Berg, ARVC chairman, adding that savings from a single park model purchase could offset the cost of ARVC dues for as much as 20 years.
“This agreement does not just cover rental units,” Berg said. “It covers all products that Skyline manufactures, including park models of all widths, towable travel trailers, park model cabins which they are designing specifically for ARVC members and mobile homes. The only restriction is that the member must use the units as rentals or sell them directly to their customers for use in their park.”
According to a press release, Skyline said the preferred provider agreement with ARVC should help boost sales for the Elkhart, Ind.-based company in an increasingly competitive market. “We’re looking forward to displaying some of our units at the upcoming Outdoor Hospitality Conference and Expo in Savannah,” said Terry Decio, Skyline’s vice president of sales and marketing.
Skyline has manufacturing facilities in Indiana, Vermont, Pennsylvania, Florida, Oregon and California.
“With Skyline plans from New England to California, this will be a far reaching member benefit that the vast majority of our membership can enjoy,” Berg said.
ARVC is the national trade association that represents the outdoor hospitality industry. Based in Denver, Colo., membership includes over 3,300 campgrounds, RV parks and resorts throughout the United States. ARVC’s consumer website is www.GoCampingAmerica.com, while its industry website is www.ARVC.org.
Skyline Corp.’s sales for the third quarter of fiscal year 2011 were $31,776,000 as compared to $25,415,000 in the third quarter of fiscal 2010, the company reported.
For the first nine months of fiscal 2011, sales were $114,224,000 as compared to $95,535,000 in the first nine months of fiscal 2010.
Sales for Skyline’s recreational vehicle segment were $13,279,000 in fiscal 2011’s third quarter as compared to $10,063,000 for the third quarter of fiscal 2010. For the nine months ending Feb. 28, 2011, sales were $40,541,000 as compared to $29,480,000 for the same period a year ago.
Sales for Skyline’s manufactured and modular housing segment were $18,497,000 in the third quarter of fiscal 2011 as compared to $15,352,000 in the third quarter of fiscal 2010. For the first three quarters of fiscal 2011, sales were $73,683,000 as compared to $66,055,000 for the first three quarters of fiscal 2010.
Fiscal 2011’s third quarter loss before income taxes was $8,742,000 as compared to fiscal 2010’s third quarter loss before income taxes of $5,554,000. The loss before income taxes for the first nine months of fiscal 2011 was $22,563,000 as compared to $17,789,000 in the first nine months of fiscal 2010. Included in prior year’s pretax loss for the third quarter and first nine months was a $1,544,000 gain on the sale of idle property, plant and equipment. In addition, prior year’s pretax loss for the first nine months included $412,000 of income from life insurance proceeds.
Skyline established in the fourth quarter of fiscal 2010 a full valuation allowance against its deferred tax assets, and continued to maintain a full valuation allowance during the third quarter of fiscal 2011. As a result, Skyline has not recognized any benefit from income taxes in fiscal 2011.
Skyline, however, did recognize in prior year’s third quarter and first nine months a benefit from income taxes of $1,857,000 and $6,377,000, respectively. If the corporation, after considering future negative and positive evidence regarding the realization of deferred tax assets, determines that a lesser valuation allowance is warranted, it would record a reduction to income tax expense and the valuation allowance in the period of determination.
Shares of Skyline Corp. saw unusually high trading volume on Monday (Jan. 10). Approximately 74,414 shares changed hands during mid-day trading. During the most recent quarter, the stock had an average daily volume of 28,329 shares. The stock last traded at $24.39, American Banking & Market News reported.
Skyline traded down 4.58% during mid-day trading on Monday. The stock has a 52-week low of $16.50 and a 52-week high of $29.39. Its 50-day moving average is $23.43 and its 200-day moving average is $20.18. The company has a market cap of $204.7 million.
Elkhart, Ind.-based Skyline designs, produces and distributes manufactured housing and recreational vehicles (travel trailers, fifth-wheels and park models) to independent dealers and manufactured housing communities located throughout the United States and Canada.
In the fiscal year ending May 31, 2010, the company sold a total of 3,100 recreational vehicles.
Last week, Skyline reported consolidated sales of $37.2 million for the three-month period ending Nov. 30 and a total operating loss of $7.77 million.
The company shipped 936 RVs during the quarter, 691 to U.S. dealers and 245 to Canadian dealers. Total value of the RV shipments was $12.15 million.
The total was well above the 629 valued at $9.35 million shipped to U.S. and Canadian dealers in the same quarter in 2009.
Editor’s Note: Wall Street Cheat Sheet, a newsletter for investors and entrepreneurs, filed comments on Sunday (Dec. 19) following last week’s quarterly report by Winnebago Industries Inc. Excerpts of the newsletter follow.
Winnebago Industries Inc. sports a $443 million market cap and has beaten estimates in six of the past 12 quarters.
The company’s balance sheet remains very strong with no debt and about $3 per share in cash.
Operating margins were 3.5% excluding a $644,000 asset sale gain.
Gross margins rose from 0.6% all the way to 9.1%.
Did You Hear That? CEO Bob Olson said on the call that “the outlook for 2011 looks good and labor availability is the one possible constraint the company could have later in fiscal 2011.”
Analysts at Morningstar noted that they “think Winnebago can be successful if it does not leverage up the company over time to make deals and only pursues acquisitions with a high probability of sufficient return. We will reduce our fair value if management starts to constantly make acquisitions simply to bring in more revenue without sufficient regard to long-term profitability.”
Competitors to Watch: Thor Industries, Skyline Corp. and Cavco Industries Inc.
Technicals: After last week’s rise, shares of WGO are not far from completing a cup-shaped base dating back to this past May. The stock’s 50-day moving average is poised to break above its 200-day line in the coming days, and volume has been steadily increasing for the past four weeks. All are bullish signals, and a breakout above $17.43 may be the beginning of the company’s next move higher. However, understand that cup-shaped bases often have handles, meaning that initial breakouts often fail, with the following “handle” breakout being the move that augurs in favor of future gains.
Commentary: WGO swung to a fiscal first-quarter profit that handily topped analysts estimates. Higher deliveries and a rise in average selling prices were behind the gain. The RV maker has returned to profitability in recent quarters, recovering from an industry crisis that saw some competitors file for bankruptcy. Still, it faces consumers who are reluctant to make big purchases due to persistent high unemployment and housing woes. The company is an interesting play for those seeking exposure to large-scale consumer purchases.
Skyline Corp. stock jumped 14.01% to a 52-week high of $27.50 on Wall Street Friday (Dec. 17).
Volume soared to 303,637 million shares traded, many times over its average daily volume of 19,145 shares.
Skyline stock has appreciated nearly 50% year-to-date.
Based in Elkhart, Ind., Skyline is a manufacturer of RVs and manufactured housing.
The stock’s price over the past year has ranged from a low of $16.25 to Friday’s high.
The company, which closed its second fiscal quarter on Nov. 30, is in its “quiet period” and is required by the Securities and Exchange Commission (SEC) not to comment on matters. In fact, Skyline routinely does not comment on its stock trading.
Skyline will be reporting its second quarter results no later than Jan. 9.
The company’s last public comment was its 8-K, filed on Oct. 8 with the SEC for its first quarter of fiscal 2011. Sales for the quarter were $45,827,000 as compared to $35,874,000 in the first quarter of fiscal 2010.
Sales for Skyline’s manufactured housing segment were $30,629,000 as compared to $25,782,000 for the first quarter a year ago. Sales for Skyline’s recreational vehicle segment were $15,198,000 for the first three months of fiscal 2011 as compared to prior year’s total of $10,092,000.
Fiscal 2011’s first quarter loss before income taxes was $6,065,000 as compared to fiscal 2010’s first quarter loss before income taxes of $6,113,000. Included in prior year’s pretax loss is $412,000 of income from life insurance proceeds.
Investors were active on Wall Street Monday (Dec. 13), sending the price of stock in Skyline Corp., an Elkhart, Ind.-based manufacturer of travel trailers, park models and manufactured housing, up 6.95% from the previous day’s close on more than triple the normal trading volume.
The stock closed Monday at $24.76, up 6.27% from its morning opening.
Volume exceeded 96,000 shares, compared to normal trading volume of 28,522.
The 52-week trading price ranges from a low of $16.25 to a high of $25.69.
Retail sales of RVs in Canada in June continued their strong, year-long rebound.
Statistical Surveys Inc. has reported that towable sales rose 29.1% in June, while motorized sales rose 35.4%.
Year-to-date, towable sales are up 27.8% while all motorhome sales are up 40.1%, Grand Rapids, Mich.based SSI reported.
By segment with comparisons to June 2009, the results were as follows:
- Travel trailers increased 34.5%.
- Fifth-wheels rose 26.9%.
- Folding camping trailers were up 1.3%.
- Park Models increased 21.9%.
Thor Industries Inc. was the towable leader in June with a 26.6% market share, followed by Forest River Inc. with a 20.2% share.
Year-to-date, Thor led with a 27.1%. Forest River was next with 20%.
Thor was No. 1 in travel trailer sales with a 28.4% share in June. Forest River had a 19.3% share and Jayco Inc. with 17.3%.
Thor was the fifth-wheel leader with a 30.4% share, Forest River was No. 2 with a 20.1% share and Heartland RV with 14% share.
Forest River was the folding camping trailer leader in June with a 29.2% share, followed by Jayco with a 28.1% share.
Thor was the park model leader in June with a 44.9% share. Skyline Corp. was No. 2 with a 24.4% share.
Year-to-date, Thor led in travel trailers (28.3%), fifth-wheels (33.6%) and park models (53.9%).
Forest River led in folding camping trailer sales with a 30.5% share.
Meanwhile, in the motorized area, Class A sales were up 10.6% in June and 20.1% year-to-date.
Class C sales were up 54.3% in June and 57% year-to-date.
Thor was the clear leader in all motorhome sales in June with a 40.7% market share. Forest River Inc. was a distant second with an 18.7% share.
Year-to-date, the competition is much closer with Thor leading with 26% and Forest River with 20.1% shares.
The June towables report was incomplete, as the province of Quebec, Canada’s second largest province, was experiencing delays in reporting data to SSI.
To subscribe to this or other SSI RV reports, contact Scott Stropkai, national RV sales manager, at (616) 281-9898 ext. 128, or (61) 446-8179 (cell).
Skyline Corp. reported higher RV sales for the quarter and year ending May 31 over the previous year.
Sales for Skyline’s fiscal 2010 fourth quarter were $40,695,000 compared to $32,483,000 for the fourth quarter of fiscal 2009. For fiscal 2010, sales were $136,230,000 versus $166,676,000 for fiscal 2009.
For Skyline’s manufactured housing segment, sales for the fourth quarter of fiscal 2010 were $24,496,000 compared to $22,578,000 for the fourth quarter of fiscal 2009. For fiscal 2010, sales were $90,551,000 versus $123,930,000 for fiscal 2009.
For the recreational vehicle segment, sales were $16,199,000 for fiscal 2010’s fourth quarter compared to $9,905,000 for the fourth quarter of fiscal 2009. For fiscal 2010, sales were $45,679,000 versus $42,746,000 for the same period a year ago.
Fiscal 2010’s fourth quarter loss before income taxes was $1,562,000 compared to fiscal 2009’s loss before income taxes of $4,332,000. For fiscal 2010, loss before income taxes was $19,351,000 versus a loss before income taxes of $24,994,000 for a year ago. Loss before income taxes for fiscal 2010 and 2009 includes a gain on the sale of idle property, plant and equipment of $1,544,000 and $3,396,000, respectively.
As a result of an increase in the valuation allowance for deferred tax assets, income tax provision (expense) was $16,019,000 in the fourth quarter of 2010, compared to benefit of $1,967,000 for the fourth quarter of fiscal 2009. Income tax provision (expense) was $9,642,000 for the year ended May 31, 2010 compared to a benefit of $9,560,000 for the year ended May 31, 2009. Skyline’s deferred tax assets consist primarily of federal and state net operating losses and tax credits that can be used to offset future tax liabilities.
The federal net operating loss carry forward and tax credits have a life expectancy of 20 years, while the state net operating loss carry forwards have a life expectancy between five and 20 years. Consistent with generally accepted accounting principles, an additional valuation allowance of approximately $16,867,000 was recorded in the fourth quarter of fiscal 2010 based on Skyline having cumulative book taxable losses for the fiscal years 2008 to 2010. The increase results in a non-cash charge in the fourth quarter. When economic conditions improve Skyline may determine that a lesser valuation allowance is warranted, resulting in a reduction to income tax provision (expense) and the valuation allowance in the period of determination.
Resulting primarily from the increase in the valuation allowance for deferred tax assets, net loss for fiscal 2010’s fourth quarter was $17,581,000 compared to fiscal 2009’s fourth quarter net loss of $2,365,000. On a per share basis, net loss for the fourth quarter was $2.10 versus a net loss of 28 cents for a year ago. For fiscal 2010, net loss was $28,993,000 compared to a net loss of $15,434,000 for a year ago. Net loss per share for fiscal 2010 was $3.46 versus a net loss per share of $1.84 for fiscal 2009.
Due to the unique nature of the increase to the deferred tax assets valuation allowance, management believes in the importance of presenting proforma Consolidated Statements of Operations exclusive of the $16,867,000 non-cash charge. Net loss for fiscal 2010’s fourth quarter would be $714,000 compared to fiscal 2009’s fourth quarter net loss of $2,365,000. On a per share basis, net loss for the fourth quarter would be 9 cents versus a net loss of 28 cents for a year ago. For fiscal 2010, net loss would be $12,126,000 compared to a net loss of $15,434,000 for a year ago. Net loss per share for fiscal 2010 would be $1.45 versus a net loss per share of $1.84 for fiscal 2009.
Donald R. Mossey, a longtime executive in the RV and manufactured housing industries., died Saturday (May 22) at St. Mary’s Hospital in Rochester, Minn. He was 84.
Mossey was an early manufacturer and promoter of manufactured housing in Elkhart, Ind. He was a longtime Mobile Home Manufacturers Association and Manufactured Housing Institute member. He founded and built five successful industry companies and developed numerous components and design features still in use for RV and housing units.
He has been a lifelong spokesman for housing industry causes. His companies, including Homette, Ventline, Leland Engineering and Imperial Stamping, have spanned a broad range of manufactured home component parts and homes.
A native of Elkhart, Mossey served aboard the USS Rowan DD782, a destroyer deployed in the Pacific theater during World War II. After the war, he entered Hillsdale College in Michigan. He returned to Elkhart upon his graduation from Hillsdale in 1951 to work as a commissioned salesman at Elkhart Richardson Homes, the first step in a remarkable career as an entrepreneur and civic leader. In 1957, he co-founded Homette Corp., a manufacturer of mobile homes and RVs.
Upon Homette’s merger with Skyline Corp., he was named executive vice president of Skyline and appointed to its board of directors.
In 1965 he became president and chairman of Ventline Inc., a manufacturer of metal products, a company he sold to Fortune 500 company Philips Industries, the board of which Mossey soon joined.
Over the next 40 years he served as chairman of numerous companies, including Custom Wood Products of Roanoke, Va., and Leland Engineering of White Pigeon, Mich.
In addition to his efforts for the industry, Mossey has served as chairman of the board of Hillsdale College for 28 years.
He was inducted into the RV/MH Hall of Fame in 2004.
Mossey helped establish Elkhart as a wellspring of entrepreneurial activity. He provided counsel, encouragement and backing to countless executives and community leaders. An astute judge of character, he made his friends carefully and kept them long. For him Elkhart was a barometer for the nation. He judged the national mood by the friends with whom he worked in his home town.
Mossey is survived by his widow, Jane Hill Mossey, his wife of 56 years; his three children, Merril (Dennis) McCarthy, Mark (Kathy) Mossey and Melanie (Charles) Mossey-Warren; six grandchildren; and one sister, June Verhagen. One son, Michael Alex Mossey, preceded him in death.
Hartzler-Gutermuth-Inman Funeral Home in Elkhart is in charge of arrangements.
Nine recreational park trailer manufacturers will be displaying their latest units for the RV park and campground industry in the Park Model Pavilion at the annual InSites Convention & Outdoor Hospitality Expo Nov. 11-12 in Orlando, Fla.
The show is sponsored by the National Association of RV Parks and Campgrounds (ARVC) and will be held at The Rosen Centre.
The displaying companies are: Airstream Inc., Athens Park Homes, Breckenridge Park Trailers, Cavco Industries Inc., Chariot Eagle Inc., CrossRoads RV, Keystone RV Co., Skyline Corp. and Stone Canyon Lodges & Park Models LLC.
Meanwhile, in a related development, ARVC and Thor Industries Inc. announced in October that they have formed a strategic alliance to provide private park operators with exclusive prices on park models and travel trailer units specifically designed for use as rental accommodations at campgrounds.
“Three of Thor’s companies, Airstream, Breckenridge and Keystone, now offer unique lines of park model cabin and travel trailer units that have been specially designed to meet the durability needs of private park operators who are anxious to expand their offering of rental accommodations,” said Shane Ott, Thor’s director of campground relations.
Ott, who was previously president and COO of Kampgrounds of America Inc. (KOA), joined Thor last summer and developed the company’s rental accommodations initiative with ARVC.
“We welcome this exciting Thor program and feel that the favorable pricing and unique designs of these units will be very enticing for campgrounds, RV parks and resorts as they continue to diversify their business base with rental accommodations,” said Linda Profaizer, ARVC president and CEO.
About one-third of the nation’s commercially owned campgrounds, RV parks and RV resorts offer rental units to accommodate families and other travelers who don’t have an RV, but want to enjoy the Great Outdoors – and the numbers are growing.
“Private parks have long seen the merits of investing in park model cabins for use as rental accommodations, and now they have a chance to invest in both park models and travel trailers for on-site rental use at special prices that are exclusive to ARVC members,” Profaizer said. “Many travel trailer owners already leave their units at campgrounds and RV parks and use them as getaway cottages.”
Ott said this strategic partnership, the first of its kind involving ARVC and RV manufacturers, has enabled Thor to develop unique units using the input and experience of campground owners across North America.
The ruggedized features along with a variety of floorplans and cozy design elements offer campground owners durable units built to withstand the rigors of high occupancy usage. The lodging units featured in the promotion include four Breckenridge park models ranging from 22- to 36-feet; two Keystone travel trailers, including one 29- and one 37-foot model; and one 25-foot Airstream travel trailer.
Ott added that while the initial promotion involves Airstream, Breckenridge, and Keystone, additional Thor companies could become involved in the promotion in the future, depending on the level of private park interest.
The Skyline Homes Inc. plant in Halstead, Kan., is closing Nov. 18, with 82 workers to be laid off, according to the Associated Press.
Skyline Homes Inc., which builds manufactured homes, is a division of Skyline Corp., based in Elkhart, Ind.
Tom McGillicuddy, vice president of human resources, referred to a statement saying the company notified employees Wednesday (Sept. 16) and has filed the appropriate paperwork under the Worker Adjustment and Retraining Notification Act. McGillicuddy said the company was “working with employees” to notify them but would not elaborate, according to The Kansan, Newton, Kan.
Under the WARN Act, an employer must give notice if an employment site or one or more facilities or operating units within an employment site will be shut down, and the shutdown will result in an employment loss for 50 or more employees during any 30-day period, according to the Department of Labor Web site. This does not count employees who have worked less than six months in the last 12 months or employees who work an average of less than 20 hours a week for that employer.
Skyline Corp., which also manufactures RVs, has 15 operating divisions in 10 states across the country, according to its website.
Newport Boats & RV, one of the largest boating and yacht dealerships on the West Coast, has been appointed the exclusive dealer for Skyline Corp.’s Nomad travel trailer.
The Corona, Calif.-based dealership has 30 years of experience in the boating and RV industries and has the largest mobile service department of any dealer in the country, according to a news release.
The firm also has locations in Newport Beach and Marina del Rey.
Sales for the fourth quarter of Skyline Corp.’s 2009 fiscal year ending May 31 were $32.5 million, compared to $70.9 million last year, the company reported in a news release.
Sales for fiscal 2009 were $166.68 million, compared to $301.77 million a year earlier.
Net loss for the fourth quarter of fiscal 2009 was $2.36 million, compared to net earnings of $191,000 for the same period a year ago. Net loss for fiscal 2009 was $15.4 million, compared to a net loss of $5.56 million for fiscal 2008. Net loss per share for fiscal 2009 and fiscal 2008 includes a gain on the sale of idle property, plant and equipment.
For Skyline’s RV group, sales for fiscal 2009 were $42.7 million compared to $86.97 million of fiscal 2008. The RV group’s sales for fiscal 2009’s fourth quarter were $9.9 million compared to $25.4 million inthe fourth quarter of fiscal 2008.
The company also has filed its Form 10-K for the 2009 Fiscal Year. During the fiscal year, Skyline shipped 2,564 travel trailers, which represented 2.9% of the travel trailer market, while shipping 188 fifth-wheels for a 0.5% market share.
During the year, Skyline consolidated RV operations in Hemet, Calif., and Elkhart, Ind.
Skyline Corp. reported fiscal 2009 third quarter sales were $24.4 million, compared to $57.3 million for the third quarter of fiscal 2008. For the first nine months of fiscal 2009, sales were $134,.2 million vs. $230.9 million for fiscal 2008.
The Elkhart, Ind.-based RV and manufactured housing builder reported a net loss for the third quarter of $4.8 million compared to a net loss of $4.6 million for the third quarter of fiscal 2008. For the first nine months of fiscal 2009, net loss was $13.1 million, compared to a net loss of $5.7 million a year ago.
For the recreational vehicle group, sales amounted to $6.6 million for fiscal 2009’s third quarter compared to $18.7 million for the third quarter of fiscal 2008. For the first nine months of fiscal 2009, sales by the RV group were $32.8 million vs. $61.6 million for the same period a year ago.