Don Emahiser, president of Skyline Corp's RV Group, stands before one of the company's new travel trailer brands, the Trident, Monday, Sept. 15, 2014 as his staff sets up its display for this week's RV Open House Week outside the RV/MH Hall of Fame. (JEFF PARROTT/The Elkhart Truth)
When Elkhart-based Skyline Corp. displays its 2015 models at this week’s RV Open House, it will have more at stake than other local recreational vehicle manufacturers out to entertain RV dealers and get a jump on next year’s production orders.
The longtime Elkhart RV and manufactured housing maker, having just posted its eighth consecutive annual statement showing multi-million dollar losses, is revamping its RV offerings in an attempt to turn things around.
Skyline was the nation’s third largest towable RV manufacturer with 10 percent of the market in 1982 but has fallen to No. 7 in the market with a 1.3 percent share. On Thursday, Sept. 11, the publicly traded company released a statement, as required by New York Stock Exchange rules, announcing that an auditor had issued a “going concern qualification” after reviewing Skyline’s most recent annual statement for the fiscal year ending May 31.
Citing its recurring losses, negative cash flow and need to raise additional capital, independent accounting firm Crowe Horwath LLP concluded there is “substantial doubt about the company’s ability to continue as a going concern.”
Skyline has lost more than $129.5 million over the past eight years, and hasn’t turned a profit since 2006. It posted operating losses of nearly $11.9 million in the fiscal year that ended May 31, following operating losses of $10.5 million in 2013, $19.3 million in 2012, $26.6 million in 2011, $19.4 million in 2010 and $25.9 million in 2009, according to its annual financial statements.
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