ELKHART, Ind., July 5, 2016 /PRNewswire/ -- Skyline
Corporation (NYSE MKT: SKY) ("Skyline" or
"Corporation") announced today that Scott Parkhurst has joined the Company as its
National Sales Manager. Mr. Parkhurst will be responsible for
marketing initiatives, as well as sales strategy and growth for the
Corporation's 10 operating divisions. Mr. Parkhurst had previously
worked for Skyline as a Division Sales Manager, and was employed by
one of the nation's leading manufacturers of recreation
vehicles.
"I look forward to returning to the team at Skyline and building
upon the progress that is taking place. Skyline's strong
traditional values will support our commitment to expand our
business nationwide and I am excited to be a part of all that is
happening at Skyline," said Scott
Parkhurst.
"Scott has a great history in our industry and has been a
successful leader in developing sales strategies and delivering top
line results. We are excited to have Scott join our team,"
said Rich Florea, Skyline's
President and Chief Executive Officer.
In addition to the hiring of Mr. Parkhurst, the Corporation also
announced changes to its Loan and Security Agreement dated
March 20, 2015 (the "Loan Agreement")
with First Business Capital Corp. As a matter of precaution, the
Corporation sought and received amendments to certain covenants
under the Loan Agreement. On June 28,
2016, Sections 7.25 and 8.3 of the Loan Agreement were
amended as follows:
- An increase in the capital expenditure limit for the fiscal
year ended May 31, 2016 from
$800,000 in the aggregate to
$1,250,000 in the aggregate;
- An increase in the capital expenditure limit for the fiscal
year ending May 31, 2017 from
$800,000 in the aggregate to
$1,500,000 in the aggregate. In
the absence of any subsequent amendment, the capital expenditure
limit for subsequent fiscal years shall remain at $800,000 in the aggregate per fiscal year;
and
- A covenant specifying that a monthly net loss in fiscal 2017
not exceed $250,000 was increased to
$500,000 for June 2016, $1,000,000 for July
2016, and $1,000,000 for
December 2016. Such increases will be effective only for the
months identified. In the absence of any subsequent
amendment, the maximum monthly net loss for all other months of
fiscal year 2017 and thereafter remain at $250,000.
Except as provided herein, the Loan Agreement and all other loan
documentation related thereto shall remain in full force and effect
in accordance with their terms.
About Skyline Corporation
Skyline Corporation designs, produces and markets manufactured
housing, modular housing and park models to independent dealers and
manufactured housing communities located throughout the United States and Canada. The Company has ten manufacturing
facilities in nine states.
Skyline Corporation was originally incorporated in Indiana in 1959, as successor to a business
founded in 1951, and is one of the largest producers of
manufactured and modular housing in the
United States. Skyline generated net sales of approximately
$186.9 million in fiscal 2015. For
more information, visit www.skylinecorp.com.
Forward-Looking Statements
This press release contains statements regarding our strategic
direction and our projected financial and business results, which
may be considered forward-looking within the meaning of the U.S.
federal securities laws. These statements are subject to known and
unknown risks, uncertainties and other factors that may cause our
actual results, levels of activity, performance or achievements to
differ materially from those expressed or implied in this press
release. Such risk factors include those related to: consumer
confidence and economic uncertainty, availability of wholesale and
retail financing, the health of the U.S. housing market as a whole,
federal, state and local regulations pertaining to the manufactured
housing industry, the cyclical nature of the housing and park model
industries, general or seasonal weather conditions affecting sales,
potential impact of natural disasters on sales and raw material
costs, potential periodic inventory adjustments by independent
retailers, interest rate levels, impact of inflation, impact of
rising fuel costs, cost of labor and raw materials, competitive
pressures on pricing and promotional costs, catastrophic events
impacting insurance costs, and the availability of insurance
coverage for various risks to the Company. Actual results may
differ materially from those contained in the forward-looking
statements in this press release. We assume no obligation, and do
not intend, to update these forward-looking statements as a result
of future events or developments. Additional information concerning
these and other risks factors is contained in the Risk Factors
sections of our Form 10-K for the year ended May 31,
2015.
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SOURCE Skyline Corporation