Exhibit 99.1
ELKHART, INDIANA -— JULY 25, 2008
SKYLINE REPORTS FOURTH QUARTER, YEAR-END RESULTS
Sales for the fourth quarter of Skyline Corporation’s 2008 fiscal year were $70,859,000 compared to $88,536,000 last year. Net earnings for the three-month period were $191,000 equal to $0.02 per share, compared to net earnings of $2,247,000, or $0.27 per share, for the same period a year ago.
Sales for fiscal 2008 were $301,765,000 compared to $365,473,000 of a year earlier. Net loss for fiscal 2008 was $5,556,000, or $0.66 per share, compared to net earnings of $2,593,000, or $0.31 per share, for fiscal 2007. Net loss per share for fiscal 2008 includes a gain on the sale of idle property, plant and equipment of $0.05.
Sales for Skyline’s manufactured housing group for fiscal 2008 were $214,794,000 compared to $272,383,000 of fiscal 2007. The group’s sales for the fiscal 2008 fourth quarter totaled $45,439,000 compared to $64,035,000 of the comparable period of fiscal 2007.
For Skyline’s RV group, sales for fiscal 2008 were $86,971,000 compared to $93,090,000 of fiscal 2007. The RV group’s sales for fiscal 2008’s fourth quarter were $25,420,000 compared to $24,501,000 of the fourth quarter of fiscal 2007.
Skyline continues to maintain its traditionally strong balance sheet with no 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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CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS
| Three Months Ended | Year Ended | |||||||||||||||
| May 31, | May 31, | |||||||||||||||
| 2008 | 2007 | 2008 | 2007 | |||||||||||||
| (Unaudited) | (Unaudited) | |||||||||||||||
| Sales | $ | 70,859 | $ | 88,536 | $ | 301,765 | $ | 365,473 | ||||||||
| (Loss) earnings before income taxes | (325 | ) | 2,866 | (9,138 | ) | 3,399 | ||||||||||
| (Benefit) provision for income taxes | (516 | ) | 619 | (3,582 | ) | 806 | ||||||||||
| Net earnings (loss) | $ | 191 | $ | 2,247 | $ | (5,556 | ) | $ | 2,593 | |||||||
| Basic earnings (loss) per share | $ | .02 | $ | .27 | $ | (.66) | (A) | $ | .31 | |||||||
| Number of weighted average common shares outstanding | 8,391,244 | 8,391,244 | 8,391,244 | 8,391,244 | ||||||||||||
CONSOLIDATED CONDENSED BALANCE SHEETS
| May 31, | ||||||||
| 2008 | 2007 | |||||||
| ASSETS | ||||||||
| Cash and temporary cash investments | $ | 111,579 | $ | 124,240 | ||||
| Accounts receivable | 18,244 | 22,760 | ||||||
| Inventories | 10,150 | 10,561 | ||||||
| Other current assets | 14,234 | 11,381 | ||||||
| Total Current Assets | 154,207 | 168,942 | ||||||
| Property, Plant and Equipment, net | 32,535 | 35,806 | ||||||
| Other Assets | 10,257 | 10,192 | ||||||
| Total Assets | $ | 196,999 | $ | 214,940 | ||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
| Accounts payable, trade | $ | 3,967 | $ | 5,162 | ||||
| Accrued liabilities | 17,646 | 21,952 | ||||||
| Total Current Liabilities | 21,613 | 27,114 | ||||||
| Other Deferred Liabilities | 9,168 | 10,011 | ||||||
| Common stock | 312 | 312 | ||||||
| Additional paid-in capital | 4,928 | 4,928 | ||||||
| Retained earnings | 226,722 | 238,319 | ||||||
| Treasury stock, at cost | (65,744 | ) | (65,744 | ) | ||||
| Total Shareholders’ Equity | 166,218 | 177,815 | ||||||
| Total Liabilities and Shareholders’ Equity | $ | 196,999 | $ | 214,940 | ||||