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): January 7, 2011

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 January 7, 2011, Skyline Corporation issued a news release reporting the financial results of the second fiscal quarter and six months ended November 30, 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 January 7, 2011

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: January 7, 2011

By: /s/ Jon S. Pilarski
Jon S. Pilarski
Chief Financial Officer

Index to Exhibits

99.1 News release of Skyline Corporation dated January 7, 2011

EX-99.1

Exhibit 99.1

ELKHART, INDIANA -— JANUARY 7, 2011

SKYLINE REPORTS RESULTS FOR SECOND QUARTER AND FIRST HALF

Skyline’s sales for the second quarter of fiscal year 2011 were $36,621,000 as compared to $34,246,000 in the second quarter of fiscal 2010. For the first half of fiscal 2011, sales were $82,448,000 as compared to $70,120,000 in the first half of fiscal 2010.

Sales for Skyline’s manufactured and modular housing segment were $24,557,000 in the second quarter of fiscal 2011 as compared to $24,921,000 in the second quarter of fiscal 2010. For the first half of fiscal 2011, sales were $55,186,000 as compared to $50,703,000 in the first half of fiscal 2010.

Sales for Skyline’s recreational vehicle segment were $12,064,000 in fiscal 2011’s second quarter as compared to $9,325,000 for the second quarter of fiscal 2010. For the first half of fiscal 2011, sales were $27,262,000 as compared to $19,417,000 for the same period a year ago.

Fiscal 2011’s second quarter loss before income taxes was $7,756,000 as compared to fiscal 2010’s second quarter loss before income taxes of $6,122,000. The loss before income taxes for the first half of fiscal 2011 was $13,821,000 as compared to $12,235,000 in the first half of fiscal 2011. Included in prior year’s pretax loss for the first half was $412,000 of income from life insurance proceeds.

Skyline established in the fourth quarter of fiscal 2010 a full valuation allowance against its deferred tax assets, and continued to maintain a full valuation allowance during the second quarter of fiscal 2011. As a result, Skyline has not recognized any benefit from income taxes in fiscal 2011. Skyline, however, did recognize in prior year’s second quarter and first six months a benefit from income taxes of $2,314,000 and $4,520,000, respectively. If the Corporation, after considering future negative and positive evidence regarding the realization of deferred tax assets, determines that a lesser valuation allowance is warranted, it would record a reduction to income tax expense and the valuation allowance in the period of determination.

Skyline reported a net loss of $7,756,000 in the second quarter of fiscal 2011 as compared to a net loss of $3,808,000 in the second quarter of fiscal 2010. On a per share basis, net loss was $.93 as compared to a net loss of $.45 for the same period a year ago.

For the first half of fiscal 2011, net loss was $13,821,000 compared to a net loss of $7,715,000 for a year ago. Net loss per share was $1.65 as compared to a net loss per share of $.92 for the same period a year ago.

As Skyline begins its third quarter, historically the slowest period in its fiscal year, the Corporation continues to maintain its traditionally strong balance sheet with no 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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SKYLINE CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS

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

	Three Months Ended						Six Months Ended
	November 30,						November 30,
	(Unaudited)						(Unaudited)
	2010			2009			2010			2009
Sales	$	36,621		$	34,246		$	82,448		$	70,120
Loss before income taxes		(7,756	)		(6,122	)		(13,821	)		(12,235	)(A)
Benefit from income taxes		—			2,314			—			4,520
Net loss	$	(7,756	)	$	(3,808	)	$	(13,821	)	$	(7,715	)
Basic loss per share	$	(.93	)	$	(.45	)	$	(1.65	)	$	(.92	)
Number of weighted average common shares outstanding		8,391,244			8,391,244			8,391,244			8,391,244

(A) Includes $412,000 of income from life insurance proceeds.

SKYLINE CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATED CONDENSED BALANCE SHEETS

(Dollars in thousands)

	November 30, (Unaudited)
	2010			2009
ASSETS
Cash and temporary cash investments	$	66,260		$	82,537
Accounts receivable		6,130			5,907
Inventories		6,922			6,131
Other current assets		3,194			18,849
Total Current Assets		82,506			113,424
Property, Plant and Equipment, net		25,661			29,918
Noncurrent Deferred Tax Assets		—			9,322
Other Assets		5,748			5,484
Total Assets	$	113,915		$	158,148
LIABILITIES AND SHAREHOLDERS’ EQUITY
Accounts payable, trade	$	1,953		$	2,476
Accrued liabilities		11,486			13,086
Total Current Liabilities		13,439			15,562
Other Deferred Liabilities		7,611			8,580
Common stock		312			312
Additional paid-in capital		4,928			4,928
Retained earnings		153,369			194,510
Treasury stock, at cost		(65,744	)		(65,744	)
Total Shareholders’ Equity		92,865			134,006
Total Liabilities and Shareholders’ Equity	$	113,915		$	158,148