Skyline Champion (SKY) 8-K Skyline Reports Third Quarter and Nine Months Results

ELKHART, INDIANA -— APRIL 4, 2008

SKYLINE REPORTS THIRD QUARTER AND NINE MONTHS RESULTS

Sales for the third quarter of Skyline Corporation’s 2008 fiscal year were $57,314,000 compared to $66,345,000 last year. Net loss for the three-month period was $4,570,000 equal to $0.54 per share, compared to a net loss of $2,175,000, or $0.26 per share, for the same period a year ago.

Sales for the first nine months of fiscal 2008 were $230,906,000 compared to $276,937,000 for the first nine months of fiscal 2007. For the first nine months of fiscal 2008, net loss was $5,747,000, or $0.68 per share, compared to net earnings of $346,000, or $0.04 per share, for the first nine months of fiscal 2007. Net loss per share for the three and nine months ending February 29, 2008 includes a gain on the sale of idle property, plant and equipment of $0.05.

Sales of Skyline’s manufactured housing group for the third quarter of fiscal 2008 were $38,644,000 compared to the $51,247,000 of a year ago. For the first nine months of fiscal 2008, sales by the manufactured housing group were $169,355,000 compared to the $208,348,000 recorded for the first nine months of fiscal 2007.

For the recreational vehicle (RV) group, sales for the third quarter of fiscal 2008 were $18,670,000 compared to the $15,098,000 of the third quarter of fiscal 2007. For the first nine months of fiscal 2008, sales by the RV group were $61,551,000 compared to the $68,589,000 of the same period a year ago.

Skyline continues to maintain its traditionally strong balance sheet with no long-term debt and a healthy position in cash and temporary cash investments. This financial strength, along with a seasoned management team, should help the company meet the challenges ahead.

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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 Bringing America Home. Bringing America Fun.

SKYLINE CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS

(Dollars in thousands except share and per share data)

	Three Months Ended						Nine Months Ended
	(Unaudited)						(Unaudited)
	February 29,			February 28,			February 29,			February 28,
	2008			2007			2008			2007
Sales	$	57,314		$	66,345		$	230,906		$	276,937
(Loss) earnings before income taxes		(7,146	)		(3,519	)		(8,813	)		533
(Benefit) provision for income taxes		(2,576	)		(1,344	)		(3,066	)		187
Net (loss) earnings	$	(4,570	)	$	(2,175	)	$	(5,747	)	$	346
Basic (loss) earnings per share	$	(.54	) (A)	$	(.26	)	$	( .68	) (A)	$	.04
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 $0.05 per share.

SKYLINE CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATED CONDENSED BALANCE SHEETS

(Dollars in thousands)

	(Unaudited)
	February 29,			February 28,
	2008			2007
ASSETS
Cash and temporary investments	$	116,227		$	125,549
Accounts receivable		16,929			21,418
Inventories		10,642			12,076
Other current assets		13,970			11,412
Total Current Assets		157,768			170,455
Property, Plant and Equipment, net		32,876			35,643
Other Assets		10,491			10,353
Total Assets	$	201,135		$	216,451
LIABILITIES AND SHAREHOLDERS’ EQUITY
Accounts payable, trade	$	2,949		$	3,917
Accrued liabilities		20,919			25,199
Total Current Liabilities		23,868			29,116
Other Deferred Liabilities		9,730			10,549
Common stock		312			312
Additional paid-in capital		4,928			4,928
Retained earnings		228,041			237,290
Treasury stock, at cost		(65,744	)		(65,744	)
Total Shareholders’ Equity		167,537			176,786
Total Liabilities and Shareholders’ Equity	$	201,135		$	216,451