<PAGE>

                                   FORM 10-Q

                       SECURITIES AND EXCHANGE COMMISSION

                               WASHINGTON DC 20549

(Mark One)

  X                Quarterly Report Pursuant to Section 13 or
-----             15(d) of the Securities Exchange Act of 1934
                 For the quarterly period ended March 31, 2000.

                                     - or -

                   Transition Report Pursuant to Section 13 or
-----             15(d) of the Securities Exchange Act of 1934
               For the Transition Period From ________ to_______.

                          COMMISSION FILE NUMBER 0-5555
                               LIBERTY HOMES, INC.
             (Exact name of registrant as specified in its charter)

<TABLE>

<S>                                           <C>
     INDIANA                                                        35-1174256
(State of Incorporation)                      (IRS Employer Identification No.)

P.O. BOX 35, GOSHEN, INDIANA                                              46527
(Address of principal executive offices)                             (ZIP Code)
</TABLE>

                                 (219) 533-0431
              (Registrant's telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes  X  No
                                       ---    ---

Indicate the number of shares outstanding of each of the registrant's classes of
common stock, as of the latest practicable date.

<TABLE>
<CAPTION>

                                                   Shares of Outstanding
Class                                                at May 1, 2000
-----                                              ----------------------
<S>                                                      <C>
Class A Common Stock, $1.00 par value                     2,192,008

Class B Common Stock, $1.00 par value                     1,706,247
</TABLE>


                                     1 of 10
<PAGE>


                               INDEX

PART I - CONSOLIDATED FINANCIAL INFORMATION (UNAUDITED)
<TABLE>
<CAPTION>
                                                                          Pages
                                                                          -----
<S>                                                                        <C>
General                                                                     3

Item 1.     Consolidated Financial Statements -
                     Liberty Homes, Inc.

            Consolidated Balance Sheet, as of
                     March 31, 2000 and December 31, 1999                   4

            Consolidated Statement of Income, for the
                     three months ended March 31, 2000 and 1999             5

            Consolidated Statement of Cash Flows for the
                     three months ended March 31, 2000 and 1999             6

            Notes to Consolidated Financial Statements                      7

Item 2.     Management's Discussion and Analysis
                     of Financial Condition and
                     Results of Operations                                  8-9

PART II - OTHER INFORMATION

Item 6.           Exhibits and Reports on Form 8-K                          9

                  Signature                                                 10
</TABLE>


                                       2

<PAGE>


                   PART I - CONSOLIDATED FINANCIAL INFORMATION

GENERAL

         The consolidated financial statements and footnotes thereto listed
in the Index on page 2 of this report have been prepared using generally
accepted accounting principles applied on a basis consistent with 1999. The
results of operations for the interim period presented are not necessarily
indicative of results to be expected for the year. The information furnished
herein reflects all adjustments (consisting of normal recurring adjustments)
which, in the opinion of management, are necessary for a fair presentation of
the results for the interim periods.





                                       3

<PAGE>


                               LIBERTY HOMES, INC.
                           CONSOLIDATED BALANCE SHEET
                   as of March 31, 2000 and December 31, 1999
<TABLE>
<CAPTION>
                                              March 31,          December 31,
ASSETS                                          2000                 1999
------                                          ----                 ----
<S>                                        <C>                  <C>
  Current assets:
     Cash and cash equivalents              $ 5,761,000          $10,555,000
     Short term investments                     485,000            6,535,000
     Receivables                             17,906,000           10,248,000
     Inventories                             17,439,000           15,327,000
     Deferred tax asset                       2,240,000            2,240,000
     Income taxes refundable                  1,127,000              715,000
     Prepayments and other                    1,859,000            1,988,000
                                          --------------       --------------


         Total current assets                46,817,000           47,608,000
                                          --------------       --------------



  Property, plant and equipment:

     Land                                     1,928,000            1,926,000
     Buildings and improvements              28,766,000           28,241,000
     Machinery and equipment                 21,179,000           20,742,000
                                          --------------       --------------

                                             51,873,000           50,909,000

     Less accumulated  depreciation          24,087,000           23,429,000
                                          --------------       --------------

                                             27,786,000           27,480,000
                                          --------------       --------------

Total assets                                $74,603,000          $75,088,000
                                          ==============       ==============
</TABLE>

<TABLE>
<CAPTION>
                                                  March 31,            December 31,
 LIABILITIES                                        2000                  1999
 -----------                                        ----                  ----
<S>                                             <C>                  <C>
   Current liabilities:
      Accounts payable                           $6,982,000           $2,216,000
      Dividend payable                              273,000              273,000
      Accrued compensation & payroll taxes        2,360,000            2,479,000
      Other accrued liabilities                   6,574,000           10,837,000

                                             ---------------       --------------
          Total current liabilities              16,189,000           15,805,000
   Deferred income taxes                          2,420,000            2,420,000
                                             ---------------       --------------
   Minority interest in subsidiaries              1,389,000            1,341,000
                                             ---------------       --------------
   Contingent liabilities (see notes)


 SHAREHOLDER'S EQUITY
   Capital Stock:
     Class A, $1 par value
       Authorized-7,500,000 Shares
          Issued & outstanding-2,198,000
          in 2000 & in 1999                       2,198,000            2,198,000
     Class B, $1 par value
       Authorized-3,500,000 Shares
          Issued & outstanding-1,706,000
          in 2000 & in 1999                       1,706,000            1,706,000


   Other capital                                     83,000               83,000

   Retained earnings                             50,618,000           51,535,000
                                             ---------------       --------------

                                                 54,605,000           55,522,000
                                             ---------------       --------------

 Total liabilities and stockholder's equity     $74,603,000          $75,088,000
                                             ===============       ==============
</TABLE>




                                    4

<PAGE>


                               LIBERTY HOMES, INC.

                        CONSOLIDATED STATEMENT OF INCOME

               for the three months ended March 31, 2000 and 1999

                                  ------------
<TABLE>
<CAPTION>
                                                                       2000                    1999
                                                                       ----                    ----
<S>                                                                    <C>                     <C>
Net sales                                                               $36,276,000             $44,350,000

Cost of sales                                                            33,152,000              38,541,000
                                                                      -------------           -------------

         Gross profit                                                     3,124,000               5,809,000

Selling, general and administrative
         expenses                                                         4,350,000               4,919,000
                                                                      -------------           -------------

         Operating income (loss)                                        (1,226,000)                 890,000

Interest and other income                                                  234,0000                 291,000
                                                                      -------------           -------------

         Income (loss) before minority interest                           (992,000)               1,181,000
             and income taxes

Minority interest                                                          (48,000)               (133,000)

Income tax (expense) benefit                                                397,000               (449,000)
                                                                      -------------           -------------

         Net income (loss)                                               $(643,000)                $599,000
                                                                      =============           =============

Share income (loss) per outstanding Common
         Share - basic and fully diluted                                 $(0.16)                  $0.15
                                                                         =======                  =====

Weighted average shares outstanding                                       3,904,000               3,937,000
                                                                      =============           =============

Cash dividend per share:

         Class A Common Stock                                              $0.07                   $0.07
                                                                           =====                   =====

         Class B Common Stock                                              $0.07                   $0.07
                                                                           =====                   =====
</TABLE>




                                       5

<PAGE>


                               LIBERTY HOMES, INC.

                      CONSOLIDATED STATEMENT OF CASH FLOWS

               for the three months ended March 31, 2000 and 1999

                                 ---------------
<TABLE>
<CAPTION>
                                                                                    2000                     1999
                                                                                    ----                     ----
<S>                                                                       <C>                      <C>
Cash flows from operating activities:
         Net income (loss)                                                     $  (643,000)          $      599,000
         Adjustment to reconcile net income
               to net cash used in operating activities -
               Depreciation                                                        658,000                  656,000
               Deferred income taxes                                                    --                  (33,000)
               Minority interest                                                    48,000                  133,000

         Changes in assets and liabilities:
                Receivables                                                     (7,658,000)              (9,952,000)
                Inventories                                                     (2,112,000)              (2,599,000)
                Prepayments and other                                              129,000                 (473,000)
                Accounts payable                                                 4,766,000                4,353,000
                Other current liabilities                                       (4,383,000)              (3,199,000)
                Income taxes receivable/payable                                   (412,000)              (1,136,000)
                                                                              -------------           --------------

Net cash used in operating activities                                           (9,607,000)             (11,651,000)
                                                                              -------------           --------------

Cash flows provided by (used in) investing activities --
         Additions to property, plant and equipment                               (964,000)              (1,327,000)
         Redemption of (investment in) short-term investments                    6,050,000               (1,000,000)
                                                                              -------------           --------------

Net cash provided by (used in) investing activities                              5,086,000               (2,327,000)
                                                                              -------------           --------------

Cash flows used in financing activities -
         Cash dividends paid                                                      (273,000)                (274,000)
         Minority interest contributed capital                                          --                   11,000
         Retirement of common stock                                                     --                 (258,000)
                                                                              -------------           --------------

Net cash used in financing activities                                             (273,000)                (521,000)
                                                                              -------------           --------------

Net decrease in cash and cash equivalents                                       (4,794,000)             (14,499,000)
                                                                              -------------           --------------

Cash and cash equivalents at beginning of period                                10,555,000               18,441,000
                                                                              -------------           --------------

Cash and cash equivalents at end of period                                     $ 5,761,000              $ 3,942,000
                                                                            ==============           ==============

Supplemental disclosures of cash flow information - cash
         paid during the period for income taxes                               $    19,000              $ 1,822,000
                                                                            ==============           ==============
</TABLE>





                                       6

<PAGE>


                                OTHER INFORMATION

SHORT TERM INVESTMENTS:

         Short-term investments consist primarily of certificates of deposits
with original maturities greater than 90 days.

INVENTORIES:

         Inventories, consisting primarily of raw materials, are stated at
the lower of cost or market, with cost determined on a first-in, first-out
basis.

CONTINGENT LIABILITIES:

         Repurchase Obligations -- The Company is contingently liable under
terms of repurchase agreements with various financial institutions which
provide for the repurchase of its homes sold to dealers under floor plan
financing arrangements upon dealer default. The Company's exposure to loss
under such agreements is reduced by the resale of the repurchased home. The
Company believes any losses incurred under outstanding repurchase agreements
in excess of the accruals established as of March 31, 2000 will not have a
significant impact on the financial condition of the Company.

         Other Contingencies -- Letters of Credit totaling $500,000 have been
issued to the Company's insurance carriers who have underwritten the Company's
insurance programs.

REVENUE RECOGNITION:

         The Company recognizes revenue when the product is shipped to
independent dealers.







                                       7

<PAGE>


ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
         RESULTS OF OPERATIONS.

Liquidity and Capital Resources

         Cash, cash equivalents and short term investments as of March 31,
2000 and December 31, 1999 were $6,246,000 and $17,090,000, respectively.
Working capital as of March 31, 2000 and December 31, 1999 was $30,628,000
and $31,803,000, respectively. The decrease of these items has been caused by
accounts receivable and inventory increases as the Company's operations
expand over the normal year-end base, and by the funding of various property,
plant and equipment projects. Although the Company continues its Common Stock
Repurchase Program efforts, no shares were repurchased during the quarter.

Results of Operations

         Net sales for the first quarter of 2000 were $36,276,000, a decrease
of $8,074,000 from the same quarter of 1999. The sales activity of the
Company followed the industry trend during the first quarter. Statistics
comparing the first quarter of 2000 to the same period in 1999 and reported
by the National Conference of States on Building Codes and Standards show for
the industry a 22% drop in homes shipped and a 20% drop in floors shipped.
This downturn in sales was caused, in part, by an overproduction of homes by
the industry relative to retail sales in prior periods. Additionally, the
industry has seen a tightening of credit on both the wholesale and retail
financing of our homes. This tightening has been caused by the decision of
several major financing companies to cease doing business in the manufactured
housing industry along with a reluctance by the secondary market to purchase
retail contracts of the finance companies thus causing a sharp increase





                                       8
<PAGE>


in interest rates for our retail customers. Comparatively, the Company
experienced a 22% drop in homes shipped, a 19% drop in floors shipped and an
18% decline in net sales. The reduction in sales had an adverse effect on net
income for the first quarter of 2000. The Company had a net loss of $643,000
for the first quarter of 2000 compared to net income of $599,000 for the same
quarter in 1999.

Outlook and Risk Factors

         As sales backlogs in the manufactured housing industry are
traditionally short and as dealer inventories do not normally fluctuate
substantially, the orders that the Company receives are indicative of the
day-to-day retail sales activity of its products. Any changes affecting the
desire or ability of retail customers to purchase, such as cost, availability
of credit and unemployment, have an immediate effect on the Company's
operations.

                           PART II - OTHER INFORMATION

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

         Exhibit 27 - Financial Data Schedule

         No reports on Form 8-K for January, February or March, 2000 have been
filed.





                                       9

<PAGE>


                                    SIGNATURE

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

                                      LIBERTY HOMES, INC.
                                      -------------------
                                          Registrant



                                      By /S/ MARC A. DOSMANN
                                         -------------------
                                      Marc A. Dosmann
                                      Vice President - Chief Financial Officer
                                      (Principal Financial and
                                      Accounting Officer)

Dated    May 15, 2000
         ------------





                                       10