8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): August 6, 2010

SKYLINE CORPORATION

(Exact name of registrant as specified in its charter)

Indiana	1-4714	35-1038277
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

P. O. Box 743, 2520 By-Pass Road Elkhart, IN	46515
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (574) 294-6521

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02 Results of Operations and Financial Condition.

On August 6, 2010, Skyline Corporation issued a news release reporting the financial results of the fourth fiscal quarter and year ended May 31, 2010. A copy of the news release is attached to this Current Report as Exhibit 99.1.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits:

99.1 News release of Skyline Corporation dated August 6, 2010

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this current report to be signed on its behalf by the undersigned hereunto duly authorized.

	SKYLINE CORPORATION
Date: August 6, 2010	By:	/s/ Jon S. Pilarski
		Jon S. Pilarski
		Chief Financial Officer

Index to Exhibits

99.1 News release of Skyline Corporation dated August 6, 2010

EX-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: FOURTH QUARTER REPORT Approved by: JON S. PILARSKI

ELKHART, INDIANA — AUGUST 6, 2010

SKYLINE REPORTS FOURTH QUARTER AND YEAR-END RESULTS

Sales for Skyline’s fiscal 2010 fourth quarter were $40,695,000 compared to $32,483,000 for the fourth quarter of fiscal 2009. For fiscal 2010, sales were $136,230,000 versus $166,676,000 for fiscal 2009.

For Skyline’s manufactured housing segment, sales for the fourth quarter of fiscal 2010 were $24,496,000 compared to $22,578,000 for the fourth quarter of fiscal 2009. For fiscal 2010, sales were $90,551,000 versus $123,930,000 for fiscal 2009.

For the recreational vehicle (RV) segment, sales were $16,199,000 for fiscal 2010’s fourth quarter compared to $9,905,000 for the fourth quarter of fiscal 2009. For fiscal 2010, sales were $45,679,000 versus $42,746,000 for the same period a year ago.

Fiscal 2010’s fourth quarter loss before income taxes was $1,562,000 compared to fiscal 2009’s loss before income taxes of $4,332,000. For fiscal 2010, loss before income taxes was $19,351,000 versus a loss before income taxes of $24,994,000 for a year ago. Loss before income taxes for fiscal 2010 and 2009 includes a gain on the sale of idle property, plant and equipment of $1,544,000 and $3,396,000, respectively.

As a result of an increase in the valuation allowance for deferred tax assets, income tax provision (expense) was $16,019,000 in the fourth quarter of 2010, compared to benefit of $1,967,000 for the fourth quarter of fiscal 2009. Income tax provision (expense) was $9,642,000 for the year ended May 31, 2010 compared to a benefit of $9,560,000 for the year ended May 31, 2009. Skyline’s deferred tax assets consist primarily of federal and state net operating losses and tax credits that can be used to offset future tax liabilities. The federal net operating loss carry forward and tax credits have a life expectancy of twenty years, while the state net operating loss carry forwards have a life expectancy between five and twenty years. Consistent with generally accepted accounting principles, an additional valuation allowance of approximately $16,867,000 was recorded in the fourth quarter of fiscal 2010 based on Skyline having cumulative book taxable losses for the fiscal years 2008 to 2010. The increase results in a non-cash charge in the fourth quarter. When economic conditions improve Skyline may determine that a lesser valuation allowance is warranted; resulting in a reduction to income tax provision (expense) and the valuation allowance in the period of determination.

Bringing America Home. Bringing America Fun.

NEWS RELEASE

Skyline Corporation
2520 By-Pass Road
P.O. Box 743
Elkhart, Indiana 46515-0743
(574) 294-6521

Subject: FOURTH QUARTER REPORT Approved by: JON S. PILARSKI

Resulting primarily from the increase in the valuation allowance for deferred tax assets, net loss for fiscal 2010’s fourth quarter was $17,581,000 compared to fiscal 2009’s fourth quarter net loss of $2,365,000. On a per share basis, net loss for the fourth quarter was $2.10 versus a net loss of $.28 for a year ago. For fiscal 2010, net loss was $28,993,000 compared to a net loss of $15,434,000 for a year ago. Net loss per share for fiscal 2010 was $3.46 versus a net loss per share of $1.84 for fiscal 2009.

Due to the unique nature of the increase to the deferred tax assets valuation allowance, management believes in the importance of presenting proforma Consolidated Statements of Operations exclusive of the $16,867,000 non-cash charge. Net loss for fiscal 2010’s fourth quarter would be $714,000 compared to fiscal 2009’s fourth quarter net loss of $2,365,000. On a per share basis, net loss for the fourth quarter would be $.09 versus a net loss of $.28 for a year ago. For fiscal 2010, net loss would be $12,126,000 compared to a net loss of $15,434,000 for a year ago. Net loss per share for fiscal 2010 would be $1.45 versus a net loss per share of $1.84 for fiscal 2009.

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.

**************

Bringing America Home. Bringing America Fun.

PROFORMA FINANCIAL RESULTS BEFORE RECOGNITION OF DEFERRED TAX ASSETS
VALUATION ALLOWANCE INCREASE OF $16,867,000

SKYLINE CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS

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

	(Unaudited)						(Unaudited)
	Three Months Ended						Year Ended
	May 31,						May 31,
	2010			2009			2010			2009
Sales	$	40,695		$	32,483		$	136,230		$	166,676
Loss before income taxes		(1,562	)		(4,332	)		(19,351	) (A)		(24,994	) (A)
Benefit for income taxes		(848	)		(1,967	)		(7,225	)		(9,560	)
Net loss	$	(714	)	$	(2,365	)	$	(12,126	)	$	(15,434	)
Basic loss per share	$	(.09	)	$	(.28	)	$	(1.45	)	$	(1.84	)
Number of weighted average common shares outstanding		8,391,244			8,391,244			8,391,244			8,391,244

(A) Includes a pretax gain on sale of idle property, plant and equipment of $1,544 in 2010, and $3,396 in 2009.

FINAL FINANCIAL RESULTS AFTER RECOGNITION OF DEFERRED TAX ASSETS VALUATION
ALLOWANCE INCREASE OF $16,867,000

SKYLINE CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS

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

	(Unaudited)
	Three Months Ended						Year Ended
	May 31,						May 31,
	2010			2009			2010			2009
Sales	$	40,695		$	32,483		$	136,230		$	166,676
Loss before income taxes		(1,562	)		(4,332	)		(19,351	) (A)		(24,994	) (A)
Provision (benefit) for income taxes		16,019			(1,967	)		9,642			(9,560	)
Net loss	$	(17,581	)	$	(2,365	)	$	(28,993	)	$	(15,434	)
Basic loss per share	$	(2.10	)	$	(.28	)	$	(3.46	)	$	(1.84	)
Number of weighted average common shares outstanding		8,391,244			8,391,244			8,391,244			8,391,244

(A) Includes a pretax gain on sale of idle property, plant and equipment of $1,544 in 2010, and $3,396 in 2009.

FINAL FINANCIAL RESULTS AFTER RECOGNITION OF DEFERRED TAX ASSETS VALUATION
ALLOWANCE INCREASE OF $16,867,000

SKYLINE CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATED CONDENSED BALANCE SHEETS

(Dollars in thousands)

	May 31,
	2010			2009
ASSETS
Cash and temporary investments	$	77,257		$	94,786
Accounts receivable		9,778			6,443
Inventories		6,756			6,502
Current deferred tax assets		3,314			6,213
Valuation allowance for current deferred tax assets		(3,314	)		(1,131	)
Other current assets		4,540			6,946
Total Current Assets		98,331			119,759
Property, Plant and Equipment, net		26,722			30,598
Noncurrent Deferred Tax Assets		14,684			11,851
Valuation allowance for noncurrent deferred tax assets		(14,684	)		—
		—			11,851
Other Assets		5,660			5,911
Total Assets	$	130,713		$	168,119
LIABILITIES AND SHAREHOLDERS’ EQUITY
Accounts payable, trade	$	3,136		$	1,853
Accrued liabilities		10,247			13,532
Total Current Liabilities		13,383			15,385
Other Deferred Liabilities		7,623			7,992
Common stock		312			312
Additional paid-in capital		4,928			4,928
Retained earnings		170,211			205,246
Treasury stock, at cost		(65,744	)		(65,744	)
Total Shareholders’ Equity		109,707			144,742
Total Liabilities and Shareholders’ Equity	$	130,713		$	168,119