EX-99.1 2 c98652exv99w1.htm EXHIBIT 99.1

Exhibit 99.1

Exhibit 99.1

NEWS RELEASE Skyline Corporation 2520 By-Pass Road P.O. Box 743 Elkhart, Indiana 46515-0743 (574) 294-6521 Subject: THIRD QUARTER REPORT Approved by: JON S. PILARSKI

ELKHART, INDIANA -— APRIL 2, 2010

SKYLINE REPORTS THIRD QUARTER AND NINE MONTHS RESULTS

Sales for Skyline’s fiscal 2010 third quarter were $25,415,000 compared to $24,386,000 for the third quarter of fiscal 2009. For the first nine months of fiscal 2010, sales were $95,535,000 versus $134,193,000 for fiscal 2009.

Skyline Corporation reported a net loss for the third quarter of fiscal 2010 of $3,697,000 compared to a net loss of $4,825,000 for the third quarter of fiscal 2009. On a per share basis, net loss for the quarter which ended February 28, 2010 was $.44 versus a net loss of $.58 for a year ago. For the first nine months of fiscal 2010, net loss was $11,412,000 compared to a net loss of $13,069,000 for a year ago. Net loss per share for the first nine months of fiscal 2010 was $1.36 versus a net loss per share of$1.56 for the first nine months of fiscal 2009. Net loss per share for the three and nine months ending February 28, 2010 and February 28, 2009 includes a gain on the sale of idle property, plant and equipment of $.12 and $.25, respectively.

For Skyline’s manufactured housing group, sales for the third quarter of fiscal 2010 were $15,352,000 compared to $17,784,000 for the third quarter of fiscal 2009. For the first nine months of fiscal 2010, sales by the manufactured housing group were $66,055,000 versus the $101,352,000 recorded for the first nine months of fiscal 2009.

For the recreational vehicle (RV) group, sales amounted to $10,063,000 for fiscal 2010’s third quarter compared to $6,602,000 for the third quarter of fiscal 2009. For the first nine months of fiscal 2010, sales by the RV group were $29,480,000 versus $32,841,000 for the same period a year ago.

Skyline continues to maintain its traditionally strong balance sheet with no bank debt and a healthy position in cash and U.S. Treasury Bills. This financial strength, along with a seasoned management team, should help the corporation meet the challenges ahead.

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Bringing America Home. Bringing America Fun.

SKYLINE CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS

(Dollars in thousands, except share and per share data)

		Three Months Ended								Nine Months Ended
		February 28,								February 28,
		(Unaudited)								(Unaudited)
		2010				2009				2010				2009
Sales		$	25,415			$	24,386			$	95,535			$	134,193
Loss before income taxes			(5,554	)			(7,565	)			(17,789	)			(20,662	)
Benefit for income taxes			1,857				2,740				6,377				7,593
Net loss		$	(3,697	)		$	(4,825	)		$	(11,412	)		$	(13,069	)
Basic loss per share		$	(.44	) (A)		$	(.58	) (A)		$	(1.36	) (A)		$	(1.56	) (A)
Number of weighted average common shares outstanding			8,391,244				8,391,244				8,391,244				8,391,244

(A) Includes an after-tax gain on sale of idle property, plant and equipment of $.12 per share in 2010, and $.25 per share in 2009.

SKYLINE CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATED CONDENSED BALANCE SHEETS

(Dollars in thousands)

		February 28, (Unaudited)
		2010				2009
ASSETS
Cash and temporary cash investments		$	76,411			$	99,266
Accounts receivable			7,061				5,415
Inventories			5,900				8,254
Other current assets			18,615				20,327
Total Current Assets			107,987				133,262
Property, Plant and Equipment, net			26,917				30,855
Noncurrent Deferred Tax Assets			11,237				5,050
Other Assets			5,496				5,785
Total Assets		$	151,637			$	174,952
LIABILITIES AND SHAREHOLDERS’ EQUITY
Accounts payable, trade		$	2,480			$	1,283
Accrued liabilities			11,778				16,139
Total Current Liabilities			14,258				17,422
Other Deferred Liabilities			8,580				8,912
Common stock			312				312
Additional paid-in capital			4,928				4,928
Retained earnings			189,303				209,122
Treasury stock, at cost			(65,744	)			(65,744	)
Total Shareholders’ Equity			128,799				148,618
Total Liabilities and Shareholders’ Equity		$	151,637			$	174,952