Wednesday, January 17, 2018
Breaking News
Home » RV Industry News » Skyline auditors express ‘going concern’ about firm

Skyline auditors express ‘going concern’ about firm

(Sept. 30, 2015) -- "The company has incurred recurring operating losses and negative cash flows from operating activities. The company has a line of credit in place, however prospective debt covenant violations may limit the company’s ability to access these funds which would impact its liquidity. These matters raise substantial doubt about the company’s ability to continue as a going concern. " the auditors warned.

ELKHART — Skyline Corporation’s audited consolidated financial statements for the fiscal year ended May 31 included in the corporation’s annual report on Form 10-K, which was filed with the Securities and Exchange Commission Aug. 26, contains an audit opinion from its independent registered public accounting firm which includes a going concern qualification.

This announcement is made pursuant to New York Stock Exchange MKT Company Guide Section 610(b), which requires separate disclosure of receipt of an audit opinion containing going concern explanatory language.

RV Daily Report reviewed the annual report filing and found this statement from the company’s auditors, Crowe Horwath LLP:

“We have audited the accompanying consolidated balance sheets of Skyline Corporation and subsidiary companies as of May 31, 2015 and 2014, and the related consolidated statements of operations and retained earnings, and cash flows for the years then ended. These financial statements are the responsibility of the corporation’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

“We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The corporation is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting.

“Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the corporation’s internal control over financial reporting. Accordingly, we express no such opinion.

“An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

“In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the corporation as of May 31, 2015 and 2014, and the results of their operations and their cash flows for the years then ended, in conformity with U.S. generally accepted accounting principles.

“The accompanying consolidated financial statements have been prepared assuming that the corporation will continue as a going concern. As discussed in Note 1 to the consolidated financial statements, the company has incurred recurring operating losses and negative cash flows from operating activities. The company has a line of credit in place, however prospective debt covenant violations may limit the company’s ability to access these funds which would impact its liquidity.

“These matters raise substantial doubt about the company’s ability to continue as a going concern. Management’s plans in regard to these matters are also described in Note 1. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.”

To read Skyline’s complete annual report, click here.

SOURCE Skyline Corporation

Print Friendly, PDF & Email

About Greg Gerber

Greg Gerber is a freelance writer and podcaster who has been writing about the RV industry since 2000. He is the former editor of RV Daily Report.

Leave a Reply

Your email address will not be published. Required fields are marked *

*

RV Daily Report welcomes comments from readers. However, we expect that comments will be cordial and professional without reverting to name-calling, profanity and libelous language. Comments of that nature will be removed.