SKYLINE CORPORATION (NYSEMKT:SKY) Files An 8-K Costs Associated with Exit or Disposal Activities
Item 2.05 Costs Associated with Exit or Disposal Activities.

On February 14, 2017, Richard W. Florea, the President and Chief Executive Officer of Skyline Corporation (the “Corporation”), announced to employees at the Corporation’s Mansfield, Texas facility that the Corporation has determined to suspend operations at the Mansfield facility. The suspension is due to the plant being unable to profitably operate since it was converted from producing recreational vehicles to manufactured housing in fiscal 2014. Challenges this location faced included fewer independent manufactured housing dealerships buying homes than anticipated; resulting in sales volumes not reaching profitable levels.

The Corporation anticipates having sufficient orders to maintain production at the Mansfield facility for the next six to eight weeks. The Corporation is seeking potential buyers of the facility. If no buyer is found by the time production is completed, the majority of the workforce is expected to be terminated during the two-week period beginning March 27, 2017 and ending April 10, 2017.

As of the date of this filing, due to the uncertainty associated with finding a potential buyer for the Mansfield facility and other factors, the Corporation is unable to make a good faith determination of an estimate of (1) the total amount or range of amounts expected to be incurred in connection with the major types of costs associated with the suspension of operations at the Mansfield facility (such as one-time termination benefits, contract termination costs, and other associated costs), (2) the total amount or range of amounts expected to be incurred in connection with the action, or (3) the amount or range of amounts of the charge that will result in future cash expenditures. The Corporation will file an amended report on Form 8-K in connection with the Corporation’s determination of such estimates or range of estimates.

Forward-Looking Statements

Information contained in this Current Report on Form 8-K contains “forward-looking statements,” including but not limited to statements related to the suspension of operations at the Mansfield facility and the effects of such action, which are based on current expectations, forecasts, and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. These risks and uncertainties include, but are not limited to, possible adverse consequences to the Corporation in connection with the suspension of operations at the facility, general business and economic conditions, and other factors, risks, and uncertainties contained in the Corporation’s other filings with the Securities and Exchange Commission. For a further list and description of such risks, see the reports and other filings made by the Corporation with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended May 31, 2016. The Corporation disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

About SKYLINE CORPORATION (NYSEMKT:SKY)

Skyline Corporation designs, produces and markets manufactured housing, modular housing and park models to independent dealers and manufactured housing communities located throughout the United States and Canada. As of May 31, 2016, the Company sold 3,217 manufactured homes, 360 modular homes and 337 park models. Its housing products are marketed under a number of trademarks. They are available in lengths ranging from 30 feet to 76 feet and in singlewide widths from 12 feet to 18 feet, doublewide widths from 18 feet to 32 feet, and triplewide widths from 36 feet to 46 feet. As of May 31, 2016, the area of a singlewide ranges from approximately 400 to 1,200 square feet, a doublewide from approximately 700 to 2,400 square feet, and a triplewide from approximately 1,600 to 2,900 square feet. The Company’s Modular homes are built according to state, provincial or local building codes. Park models are marketed under the Shore Park trademark.

SKYLINE CORPORATION (NYSEMKT:SKY) Recent Trading Information

SKYLINE CORPORATION (NYSEMKT:SKY) closed its last trading session up +0.54 at 12.24 with 27,226 shares trading hands.