Skyline Corp.’s Terry Decio says he’s back in charge of RV sales after a hiatus of many years, and that he is consolidating all of the company’s RV production in Elkhart, Ind., over the next four or five weeks.
Decio told RVBUSINESS.com that in addition to Elkhart, where the RV and manufactured home builder is based, the company currently operates RV plants in Bristol, Ind., and Mansfield, Texas.
“We will keep the Mansfield plant running for a while, until we decide what to do with it,” said Decio, son of Skyline founder Art Decio. “Texas is still the No. 1 destination state for RVs, so we want to continue to work that market in a big way and will continue shipping a lot of product into the Lone Star State. But we’re going to do it from Elkhart County.”
On the RV side, Skyline today makes smaller travel trailers, destination trailers and park models. Decio is intent on adding to that mix.
“What I’m trying to do is expand the base of product into the market,” says Decio. “I cannot produce the variety of product that buyers are looking for out of the Texas plant. I can give them far more choices out of the Indiana plant because 90% of towable RV’s are built in Indiana and the Elkhart plants are a lot bigger than our facility in Texas.
“I can’t build any of the bigger units in Texas, plus there’s no supplier base. I’m the last plant left down there – everybody else has left. I can’t be flexible or creative, so I made a decision based on the fact that we want to offer more products. I know that in Elkhart I can do anything I want.”
The consolidation comes on the heels of the company’s annual earnings report which showed a net loss of $10.5 million, punctuated by a 10% decline in year-over-year RV sales.
Decio said that Terry Bodenbender, who has been running RV operations, will continue focusing more on product development as he has done for the past 18 months.
“I managed RV’s for a long time. Now, I’ve decided, I want to do it again,” Decio said, noting that he will assume duties as vice president of sales for and marketing for both RV’s and housing. “I ran RV’s for 20 years, then focused on the housing side after 40 years with the company. Everybody’s excited. I’m excited, and I want to keep pushing this business along. I think it’s going to get better and better.”
Skyline builds manufactured housing in several locations, including Pennsylvania, Florida, Ohio, Wisconsin, Kansas, California and Oregon. Decio aknowledged that the MH side is “a bigger component” for Skyline than RV’s.
“We’ve always been larger in the housing than we were in the RV’s,” Decio said. “But now we want to grow our RV’s again, too.”
Decio adds that Skyline will have product to show dealers during next month’s Elkhart County RV Open House, exhibiting on Northland Drive in Elkhart.
Elkhart, Ind.-based Skyline Corp. recently reported a net loss for its full fiscal year on a 3% decline in sales.
Sales for the full year were $177.6 million compared to $182.8 million reported in the same period a year ago.
The company incurred a net loss of $10.5 million for the year as compared to a net loss of $19.4 million for fiscal 2012. On a per share basis, net loss was $1.25 compared to $2.31 for the comparable period a year ago.
Recreational vehicle sales declined 10% to $66. 5 million in fiscal 2013 from $73.7 million in fiscal 2012 while housing sales dipped 2% to $111.1 million from $109.157 million.
Other highlights for the year included:
• Two idle recreational vehicle facilities located in Hemet, Calif., were sold for a gain of $1.4 million.
• An idle manufactured housing facility located in Mocksville, North Carolina was sold for a gain of $230,000.
Elkhart, Ind.-based RV and manufactured housing builder Skyline Corp. reported flat sales for the fiscal first quarter of 2013 while improving on its net loss.
According to documents filed with Security and Exchange Commission (SEC) sales during the first quarter totaled $49.9 million, an approximate 1% decrease from $50.3 million in the same period a year ago.
RV sales were $19 million in the first quarter, a 10% decrease from $21.1 million a year ago. Housing sales rose 6% to $30.9 million from $29.1 million in the first quarter of fiscal 2012.
Net loss for the first quarter was $3.5 million as compared to $6.8 million the previous year. On a per share basis, net loss was 41 cents as compared to 82 cents for the same period a year ago.
The company said that decreases in the RV segment were caused primarily by a decline in sales to Canadian dealers.
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.
To view the entire report click here.
Manufactured housing and recreational vehicle builder Skyline Corp. will be replaced by Exterran Holdings Inc. in the S&P SmallCap 600 index after the close of trading on Dec. 30. Skyline is ranked No. 600 in the SmallCap 600 index.
SmartTrend reported that it identified a “downtrend” for Skyline on July 18 when the stock was $15.76 per share. Since then, Skyline share prices have moved between a 52-week high of $27.69 and a 52-week low of $4.25, and started today’s trading at $4.69.
Skyline, based in Elkhart, Ind., filed its financial report on Oct. 7 for the fiscal 2012 first quarter, ended Aug. 31. The company reported sales of $50.3 million compared with $45.8 million the previous year while posting a net loss of $6.8 million versus a net loss of $6 million.
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.
To view the entire report click here.
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.