<PAGE> 1
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                United States Securities and Exchange Commission
                            Washington, D.C. 20549
           -----------------------------------------------------------

                                  Form 10-Q
(Mark One)
           [ x ]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                        SECURITIES EXCHANGE ACT OF 1934

           For the quarterly period ended December 31, 2006

                                      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 0-23898
           -----------------------------------------------------------

                             MITY ENTERPRISES, INC.
            (Exact name of registrant as specified in its charter)

               Utah                                            87-0448892
(State or other jurisdiction of                             (I.R.S. Employer
 incorporation or organization)                            Identification No.)

                             1301 West 400 North
                               Orem, Utah 84057
          (Address of principal executive offices including zip code)

                  Registrant's telephone number:  (801) 224-0589

                                     N/A
  (Former name, former address and former fiscal year, if changed since last
                                   report)
           -----------------------------------------------------------

     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 by check mark whether the registrant is a large accelerated
filer, an accelerated filer, or a non-accelerated filer.  See definition of
"accelerated filer and large accelerated filer" in Rule 12b-2 of the Exchange
Act. (Check one): Large accelerated filer        Accelerated filer
Non-accelerated filer   X
     Indicate by check mark whether the registrant is a shell company (as
defined in Rule 12b-2 of the Exchange Act).  Yes        No   x

     There were 3,331,683 shares of the registrant's Common Stock, par value
$.01 per share, outstanding on January 30, 2007.
-----------------------------------------------------------------------------
<PAGE> 2

                         PART I:  FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS
                             MITY ENTERPRISES, INC.
                    CONDENSED CONSOLIDATED BALANCE SHEETS
                                  (unaudited)
                                                  DECEMBER 31,     MARCH 31,
                                                     2006            2006
                                                  -----------     -----------
ASSETS
Current assets:
  Cash and cash equivalents . . . . . . . . . . . $   239,000     $ 4,787,000
  Available-for-sale securities . . . . . . . . .        --         4,547,000
  Accounts receivable, less allowances of
    $143,000 at December 31, 2006 and
    $140,000 at March 31, 2006. . . . . . . . . .   8,601,000       6,718,000
  Inventories . . . . . . . . . . . . . . . . . .   4,346,000       2,587,000
  Prepaid expenses and other current assets . . .     748,000         655,000
  Deferred income tax assets. . . . . . . . . . .     360,000         402,000
                                                  -----------     -----------
Total current assets. . . . . . . . . . . . . . .  14,294,000      19,696,000
Property and equipment, net . . . . . . . . . . .  14,262,000      12,485,000
Deferred income tax assets. . . . . . . . . . . .     240,000         248,000
Goodwill, net . . . . . . . . . . . . . . . . . .   2,360,000       2,358,000
Other assets. . . . . . . . . . . . . . . . . . .      97,000          32,000
                                                  -----------     -----------
Total assets. . . . . . . . . . . . . . . . . . . $31,253,000     $34,819,000
                                                  ===========     ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
 Accounts payable . . . . . . . . . . . . . . . . $ 2,480,000     $ 1,989,000
 Accrued expenses and other current liabilities .   3,131,000       2,427,000
                                                  -----------     -----------
Total current liabilities . . . . . . . . . . . .   5,611,000       4,416,000
Net borrowing on line of credit . . . . . . . . .   3,298,000            --
                                                  -----------     -----------
Total liabilities . . . . . . . . . . . . . . . .   8,909,000       4,416,000
Commitments and contingencies . . . . . . . . . .        --              --
Stockholders' equity:
    Preferred stock, par value $.10 per share;
      authorized 3,000,000 shares; no shares
      issued and outstanding. . . . . . . . . . .        --              --
    Common stock, par value $.01 per share;
      authorized 10,000,000 shares; issued and
      outstanding 3,328,031 at December 31, 2006
      and 3,990,303 at March 31, 2006 . . . . . .      33,000          40,000
    Additional paid-in capital. . . . . . . . . .  10,552,000      12,244,000
    Retained earnings . . . . . . . . . . . . . .  10,898,000      17,247,000
    Accumulated other comprehensive income. . . .     861,000         872,000
                                                  -----------     -----------
  Total stockholders' equity. . . . . . . . . . .  22,344,000      30,403,000
                                                  -----------     -----------
Total liabilities and stockholders' equity. . . . $31,253,000     $34,819,000
                                                  ===========     ===========

         See accompanying notes to unaudited condensed consolidated
                            financial statements.
<PAGE> 3

                              MITY ENTERPRISES, INC.
                   CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                                  (unaudited)
                                                  THREE MONTHS ENDED DEC. 31,
                                                      2006           2005
                                                   -----------    -----------
Net sales . . . . . . . . . . . . . . . . . . . .  $15,242,000    $13,408,000
Cost of products sold . . . . . . . . . . . . . .   10,535,000      8,862,000
                                                   -----------    -----------
Gross profit. . . . . . . . . . . . . . . . . . .    4,707,000      4,546,000
Expenses:
  Selling . . . . . . . . . . . . . . . . . . . .    2,256,000      2,027,000
  General and administrative. . . . . . . . . . .      557,000        488,000
  Research and development. . . . . . . . . . . .      344,000        375,000
                                                   -----------    -----------
Total expenses. . . . . . . . . . . . . . . . . .    3,157,000      2,890,000
                                                   -----------    -----------
Income from operations. . . . . . . . . . . . . .    1,550,000      1,656,000
Other income
  Interest income . . . . . . . . . . . . . . . .        4,000         81,000
  Interest expense. . . . . . . . . . . . . . . .      (51,000)          -
  Other, net. . . . . . . . . . . . . . . . . . .      124,000        (17,000)
                                                   -----------    -----------
Total other income, net . . . . . . . . . . . . .       77,000         64,000
                                                   -----------    -----------
Income before provision for income taxes. . . . .    1,627,000      1,720,000
Provision for income taxes. . . . . . . . . . . .      553,000        521,000
                                                   -----------    -----------
Net income. . . . . . . . . . . . . . . . . . . .  $ 1,074,000    $ 1,199,000
                                                   ===========    ===========
Basic earnings per share. . . . . . . . . . . . .  $      0.32    $      0.29
                                                   ===========    ===========
Weighted average number of common shares - basic.    3,326,221      4,076,166
                                                   ===========    ===========

Diluted earnings per share. . . . . . . . . . . .  $      0.32    $      0.28
                                                   ===========    ===========
Weighted average number of common and common
 equivalent shares - diluted. . . . . . . . . . .    3,403,628      4,221,533
                                                   ===========    ===========


         See accompanying notes to unaudited condensed consolidated
                            financial statements.

<PAGE> 4

                              MITY ENTERPRISES, INC.
                   CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                                  (unaudited)
                                                   NINE MONTHS ENDED Dec. 31,
                                                      2006           2005
                                                   -----------    -----------
Net sales . . . . . . . . . . . . . . . . . . . .  $45,725,000    $41,845,000
Cost of products sold . . . . . . . . . . . . . .   30,890,000     26,856,000
                                                   -----------    -----------
Gross profit. . . . . . . . . . . . . . . . . . .   14,835,000     14,989,000
Expenses:
  Selling . . . . . . . . . . . . . . . . . . . .    6,455,000      5,927,000
  General and administrative. . . . . . . . . . .    1,799,000      1,609,000
  Research and development. . . . . . . . . . . .    1,121,000      1,276,000
                                                   -----------    -----------
Total expenses. . . . . . . . . . . . . . . . . .    9,375,000      8,812,000
                                                   -----------    -----------
Income from operations. . . . . . . . . . . . . .    5,460,000      6,177,000
Other income
  Interest income . . . . . . . . . . . . . . . .      113,000        221,000
  Interest expense. . . . . . . . . . . . . . . .      (62,000)          -
  Other, net. . . . . . . . . . . . . . . . . . .       60,000       (110,000)
                                                   -----------    -----------
Total other income, net . . . . . . . . . . . . .      111,000        111,000
                                                   -----------    -----------
Income before provision for income taxes. . . . .    5,571,000      6,288,000
Provision for income taxes. . . . . . . . . . . .    1,894,000      2,126,000
                                                   -----------    -----------
Net income. . . . . . . . . . . . . . . . . . . .  $ 3,677,000    $ 4,162,000
                                                   ===========    ===========
Basic earnings per share. . . . . . . . . . . . .  $      1.03    $      1.01
                                                   ===========    ===========
Weighted average number of common shares - basic.    3,577,615      4,135,492
                                                   ===========    ===========

Diluted earnings per share. . . . . . . . . . . .  $      1.00    $      0.97
                                                   ===========    ===========
Weighted average number of common and common
 equivalent shares - diluted. . . . . . . . . . .    3,675,154      4,288,388
                                                   ===========    ===========

         See accompanying notes to unaudited condensed consolidated
                            financial statements.

<PAGE> 5
                             MITY ENTERPRISES, INC.
               CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                  (unaudited)
                                                   NINE MONTHS ENDED DEC. 31,
                                                      2006           2005
                                                   -----------     ----------
CASH FLOWS FROM OPERATING ACTIVITIES
Net income . . . . . . . . . . . . . . . . . . .   $ 3,677,000    $ 4,162,000
Adjustments to reconcile net income to net cash
  provided by operating activities:
    Depreciation and amortization. . . . . . . .     1,265,000      1,092,000
    Deferred taxes . . . . . . . . . . . . . . .        50,000        128,000
    Net loss on disposal of property and
     equipment . . . . . . . . . . . . . . . . .         4,000         37,000
    Tax benefit from exercise of stock options .          -           248,000
    Excess tax benefit from stock-based
     compensation. . . . . . . . . . . . . . . .       (12,000)          -
    Stock-based compensation . . . . . . . . . .       223,000           -
    Changes in assets and liabilities:
      Accounts receivable. . . . . . . . . . . .    (1,907,000)      (159,000)
      Inventories. . . . . . . . . . . . . . . .    (1,763,000)      (353,000)
      Prepaid expenses and other current assets.      (101,000)      (143,000)
      Accounts payable . . . . . . . . . . . . .        (2,000)      (158,000)
      Accrued expenses and other current
       liabilities . . . . . . . . . . . . . . .       727,000        151,000
                                                   -----------     ----------
Net cash provided by operating activities. . . .     2,161,000      5,005,000
                                                   -----------     ----------
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of available-for-sale securities . . .      (781,000)    (3,580,000)
Sales and maturities of available-for-sale
  securities . . . . . . . . . . . . . . . . . .     5,332,000      6,223,000
Proceeds from sales of property and equipment. .         4,000         21,000
Net decrease (increase) in other assets. . . . .       (67,000)        78,000
Purchases of property and equipment. . . . . . .    (2,563,000)    (1,240,000)
                                                   -----------     ----------
Net cash provided by investing activities. . . .     1,925,000      1,502,000
                                                   -----------     ----------
CASH FLOWS FROM FINANCING ACTIVITIES
Net proceeds from exercise of stock options and
  issuance of shares to the 401(k) plan. . . . .       165,000        773,000
Excess tax benefit from stock-based compensation        12,000           -
Net proceeds from line of credit . . . . . . . .     3,298,000           -
Purchases and retirement of common stock . . . .   (12,124,000)    (6,443,000)
                                                   -----------     ----------
Net cash used in financing activities. . . . . .    (8,649,000)    (5,670,000)
                                                   -----------     ----------
Effect of exchange rate changes on cash. . . . .        15,000         15,000
                                                   -----------     ----------
Net increase (decrease) in cash and cash
 equivalents . . . . . . . . . . . . . . . . . .    (4,548,000)       852,000

Cash and cash equivalents at beginning of period     4,787,000      3,940,000
                                                   -----------     ----------
CASH AND CASH EQUIVALENTS AT END OF PERIOD . . .   $   239,000    $ 4,792,000
                                                   ===========    ===========

         See accompanying notes to unaudited condensed consolidated
                            financial statements.
<PAGE> 6

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:

                                                   NINE MONTHS ENDED DEC. 31,
                                                      2006           2005
                                                   ----------     ----------
Cash paid during the period for income taxes . . . $1,998,000     $2,224,000

Cash paid during the period for interest . . . . .     46,000           -


SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING AND FINANCING ACTIVITIES:

As of December 31, 2006, $518,000 of additions to property and equipment were
accrued as accounts payable.

During the nine months ended December 31, 2006, 56 matured shares (i.e. shares
owned for more than six months) of the Company's common stock with a value of
approximately $1,000 were surrendered in exchange for the exercise of stock
options.



         See accompanying notes to unaudited condensed consolidated
                            financial statements.

<PAGE> 7

                              MITY ENTERPRISES, INC.
                 NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                  (unaudited)

1.  BASIS OF PRESENTATION

Interim Period Accounting Policies

     In the opinion of the management of MITY Enterprises, Inc. (the
"Company"), the accompanying unaudited condensed consolidated financial
statements contain all normal recurring adjustments necessary to present
fairly the Company's financial position and results of operations for the
interim periods.  Results of operations for the three months and nine months
ended December 31, 2006 are not necessarily indicative of results to be
expected for the full fiscal year ending March 31, 2007.

     The accompanying unaudited condensed consolidated financial statements
have been prepared in accordance with accounting principles generally accepted
in the United States of America for interim financial statements.  Although
the Company believes that the disclosures in these unaudited condensed
consolidated financial statements are adequate to make the information
presented for the interim periods not misleading, certain information and
footnote information normally included in annual consolidated financial
statements prepared in accordance with accounting principles generally
accepted in the United States of America have been condensed or omitted
pursuant to the rules and regulations of the Securities and Exchange
Commission, and these financial statements should be read in conjunction with
the Company's audited consolidated financial statements included in the
Company's annual report to shareholders for the fiscal year ended March 31,
2006.

STOCK-BASED COMPENSATION

     Effective April 1, 2006, the Company adopted Statement of Financial
Accounting Standards (SFAS) No. 123R, "Share-Based Payment," using the
modified prospective transition method.  Under this transition method,
stock-based compensation cost recognized beginning April 1, 2006 includes
compensation cost for all share-based payments not yet vested as of April 1,
2006 based on the grant date fair value estimated had we adopted the
provisions of SFAS No. 123.  In addition, this transition method requires any
share-based payments granted after April 1, 2006 be accounted for in
accordance with the provisions of SFAS No. 123R.

<PAGE> 8

     For the three and nine months ended December 31, 2006, the adoption of
SFAS No. 123R resulted in incremental stock-based compensation expense of
$84,000 and $223,000, respectively.  Of this amount, $28,000 and $79,000,
respectively, was in cost of products sold, $18,000 and $51,000, respectively,
was in selling expenses, $29,000 and $69,000, respectively, was in general and
administrative expenses, and $9,000 and $24,000, respectively, was in research
and development expenses.  Stock-based compensation expense (net of an
expected forfeiture rate) was recognized for only those awards expected to
vest on a straight-line basis over the requisite service period.  The
stock-based compensation expense associated with the adoption of SFAS No. 123R
reduced net operating income and net income for the three and nine months
ended December 31, 2006 by $84,000 and $223,000, respectively, basic  earnings
per share by $0.03 and $0.02 per share, respectively, and diluted earnings per
share by $0.06 per share.  As of December 31, 2006, the total remaining
unrecognized compensation cost related to non-vested stock options, net of
forfeitures, was approximately $679,000 and is expected to be recognized
through the year ending March 31, 2012.  The total income tax benefit related
to share-based compensation for the nine months ended December 31, 2006 which
is recorded in additional paid-in capital was $12,000 and was shown as a cash
flow from operating and financing activities in the condensed consolidated
statements of cash flows.  The $223,000 stock-based compensation expense is
also included in cash flows from operating activities as an adjustment to
reconcile net income to net cash provided by operating activities.

     Prior to April 1, 2006, the Company accounted for stock-based
compensation under the intrinsic value method outlined in Accounting
Principles Board (APB) Opinion No. 25, "Accounting for Stock Issued to
Employees."  Accordingly, no compensation cost has been recognized for
stock-based compensation for the prior nine month period ended December 31,
2005.  Had compensation cost of the Company's two stock-based compensation
plans been determined consistent with SFAS No. 123R, the Company's net income
and earnings per share would have changed to the pro forma amounts indicated
below:
                                     THREE MONTHS ENDED   NINE MONTHS ENDED
                                     DECEMBER 31, 2005    DECEMBER 31, 2005
                                     ------------------   -----------------
Net income, as reported                   $1,199,000          $4,162,000
Deduct: Total stock-based employee
 compensation  expense determined
 under fair value based method for
 all awards, net of related tax               57,000             171,000
                                          ----------          ----------
Pro forma net income                      $1,142,000          $3,991,000
                                          ==========          ==========
Earnings per share - basic:
  As reported                                  $0.29              $1.01
  Pro forma                                     0.28               0.97

Earnings per share - diluted:
  As reported                                  $0.28              $0.97
  Pro forma                                     0.27               0.93

<PAGE> 9

     The Company's stock-based compensation consists of three stock incentive
plans, the 1990 Stock Option Plan (the "1990 Plan"), the 1997 Stock Incentive
Plan (the "1997 Plan") and the 2006 Stock Incentive Plan (the "2006 Plan").
The Company authorized and reserved 750,000 shares of common stock for
issuance under the 1990 Plan, 900,000 shares of common stock for issuance
under the 1997 Plan, and 300,000 shares of common stock for issuance under the
2006 Plan.  The purchase price for the shares under the Plans is equal to the
fair value of the common stock at the date the options are granted as
determined by the closing price listed on The Nasdaq Stock Market except for
shareholders holding more than ten percent of the outstanding stock, whose
options are issued at a ten percent premium to the then current market value.
A table of stock option activity is shown below:

                                          WEIGHTED      REMAINING
                               NUMBER      AVERAGE     CONTRACTUAL INTRINSIC
                             OF OPTIONS EXERCISE PRICE TERM(YEARS)   VALUE
                             ---------- -------------- ----------- ---------
Outstanding at April 1, 2006   375,371      $12.28
Granted                        108,500       17.05
Exercised                       (9,630)      11.08
Forfeited                      (22,751)      17.02
                             ----------- -------------
Outstanding at Dec. 31, 2006   451,490      $13.21         6.13    $2,115,000

Exercisable at Dec. 31, 2006   285,713      $11.17         4.38    $1,923,000

Options vest over a one- to four-year period and are generally exercisable
over ten years.

    The table below presents information related to stock option activity for
the nine months ended December 31, 2006 and 2005:
                                                   NINE MONTHS ENDED DEC. 31,
                                                      2006           2005
                                                   ----------      ---------
Total intrinsic value of stock options exercised . $   68,000      $ 813,000
Cash received from stock option exercises. . . . .    107,000        722,000
Net income tax benefit from the exercise and sale
 of stock options. . . . . . . . . . . . . . . . .     12,000        248,000

     During the nine months ended December 31, 2006, 108,500 options were
granted.  The fair value of each option grant was estimated on the date of
grant using the Black-Scholes option-pricing model with expected volatility of
23 percent, risk free interest rate of 4.82 percent, and an expected life of
five years. The average risk-free interest rate was determined using the U.S.
Treasury rate in effect as of the date of grant, based on the expected term of
the option.  The expected term of the options was determined using historical
data.  The expected price volatility was determined using a weighted average
of monthly historical volatility of the Company's stock price over the
corresponding expected option life.  The weighted-average estimated fair value
per share of options granted was $5.24.  During the three months ended
December 31, 2006 and the three months and nine months ended December 31,
2005, no options were granted.

<PAGE> 10

RECENTLY ISSUED FINANCIAL ACCOUNTING STANDARDS

     In November 2004, the Financial Accounting Standards Board (FASB) issued
SFAS No. 151, "Inventory Costs."  SFAS No. 151 amends the guidance in ARB No.
43, Chapter 4, "Inventory Pricing," to clarify the accounting for abnormal
amounts of idle facility expense, freight, handling costs, and wasted
material. SFAS No. 151 requires that those items be recognized as
current-period charges regardless of whether they meet the criterion of "so
abnormal."  In addition, this Statement requires that allocation of fixed
production overheads to the costs of conversion be based on the normal
capacity of the production facilities.  SFAS No. 151 is effective for fiscal
years beginning after June 15, 2005.  The Company adopted SFAS No. 151 on
April 1, 2006.  The adoption of SFAS No. 151 did not have an impact on the
Company's consolidated financial statements.

     In December 2004, the FASB issued SFAS No. 153, "Exchange of Nonmonetary
Assets."  SFAS No. 153 addresses the measurement of exchanges of nonmonetary
assets.  It eliminates the exception from the fair value measurement for
nonmonetary exchanges of similar productive assets and replaces it with a
general exception for exchanges that do not have a commercial substance.  This
Statement specifies that a nonmonetary exchange has commercial substance if
the future cash flows of the entity are expected to change significantly as a
result of the exchange.  SFAS No. 153 is effective for annual periods
beginning after June 15, 2005.  The Company adopted SFAS No. 153 on April 1,
2006.  The adoption of SFAS No. 153 did not have an impact on the Company's
consolidated financial statements.

     In May 2005, the FASB issued SFAS No. 154, "Accounting Changes and Error
Corrections," a replacement of APB Opinion No. 20 and FASB Statement No. 3.
SFAS No. 154 requires retrospective application to prior periods financial
statements for changes in accounting principle, unless it is impracticable to
determine either the period-specific effects or the cumulative effect of the
change.  SFAS No. 154 also requires that retrospective application of a change
in accounting principle be limited to the direct effects of the change.
Indirect effects of a change in accounting principle should be recognized in
the period of the accounting change.  SFAS No. 154 further requires a change
in depreciation, amortization or depletion method for long-lived,
non-financial assets to be accounted for as a change in accounting estimate
affected by a change in accounting principle.  SFAS No. 154 is effective for
accounting changes and corrections of errors made in fiscal years beginning
after December 31, 2005.  The Company adopted SFAS No. 154 on April 1, 2006.
The adoption of SFAS No. 154 did not have any impact on the Company's
consolidated financial statements.

     In July 2006, the FASB issued FASB Interpretation No. (FIN) 48,
"Accounting for Uncertainty in Income Taxes."  FIN 48 requires applying a
"more likely than not" threshold to the recognition and derecognition of tax
positions.  The Company anticipates adopting FIN 48 for its fiscal year
beginning April 1, 2007.  The Company is currently assessing what impact, if
any, the adoption of this statement will have on its consolidated financial
statements.

<PAGE> 11

     In September 2006, the FASB issued SFAS No. 157, "Fair Value
Measurements," which defines fair value, establishes guidelines for measuring
fair value and expands disclosure regarding fair value measurements.  SFAS No.
157 does not require new fair value measurements but rather eliminates
inconsistencies in guidance found in various prior accounting pronouncements.
SFAS No. 157 is effective for financial statements issued for fiscal years
beginning after November 15, 2007, on a prospective basis.  The Company does
not expect the adoption of SFAS No. 157 to have a material effect on its
consolidated financial statements.


2.  INVENTORIES

     Inventories consisted of the following:
                                                 DECEMBER 31,      MARCH 31,
                                                    2006             2006
                                                 -----------      -----------
               Materials and supplies . . . .    $ 2,788,000      $ 1,730,000
               Work-in-progress . . . . . . .        238,000          174,000
               Finished goods . . . . . . . .      1,320,000          683,000
                                                 -----------      -----------
                                                 $ 4,346,000      $ 2,587,000
                                                 ===========      ===========

3.  COMPREHENSIVE INCOME

     In accordance with SFAS No. 130,  "Reporting Comprehensive Income," the
Company's comprehensive income consists of foreign currency adjustments and
unrealized gains and losses on available-for-sale securities.  For the three
and nine months ended December 31, 2006, net income exceeded comprehensive
income by $269,000 and $11,000, respectively, consisting of $269,000 and
$15,000 in foreign currency translation losses, partially offset by $0 and
$4,000 in unrealized gains in available-for-sale securities, net of tax
effects.  For the three and nine months ended December 31, 2005, comprehensive
income exceeded net income by $25,000 and $205,000, respectively, consisting
of $23,000 and $199,000 in foreign currency translations gains and $2,000 and
$6,000 in unrealized gains on available-for-sale securities, net of tax
effects.


4.  BUSINESS SEGMENT INFORMATION

     In accordance with SFAS No. 131, "Disclosure about Segments of an
Enterprise and Related Information," management views the Company as being
three business segments: multipurpose room furniture, fence, and healthcare
seating, with multipurpose room furniture being the principal business
segment.  The multipurpose room furniture business segment manufactures and
markets lightweight, durable, folding leg tables, folding chairs, stacking
chairs, lecterns, portable partitions, and other related products.  During the
nine months ended December 31, 2006, the Company determined that fence
products met the criteria of a separate segment of the Company.  The fence
product segment includes a line of rotomolded fence panel products to be used
in commercial and residential fencing applications.  The Company's healthcare
seating segment manufactures and markets healthcare chairs and related
products.  The Company's healthcare seating segment represents all of the
Company's foreign-based sales.  Corporate related assets and expenditures are
included in the multipurpose room furniture segment.

<PAGE> 12

     Reportable segment data of continuing operations reconciled to the
consolidated financial statements for the three months and nine months ended
December 31, 2006 and 2005 is as follows:

                                             THREE MONTHS ENDED DECEMBER 31,
                                                  2006              2005
                                               -----------       -----------
Net sales:
  Multipurpose room furniture. . . . . . . .   $12,569,000       $11,370,000
  Fence. . . . . . . . . . . . . . . . . . .       346,000              -
  Healthcare seating . . . . . . . . . . . .     2,327,000         2,038,000
                                               -----------       -----------
                                               $15,242,000       $13,408,000
                                               ===========       ===========
Income (loss) from operations:
  Multipurpose room furniture. . . . . . . .   $ 1,320,000       $ 1,249,000
  Fence. . . . . . . . . . . . . . . . . . .      (300,000)             -
  Healthcare seating . . . . . . . . . . . .       530,000           407,000
                                               -----------       -----------
                                               $ 1,550,000       $ 1,656,000
                                               ===========       ===========
Depreciation and amortization expense:
  Multipurpose room furniture. . . . . . . .   $   272,000       $   310,000
  Fence. . . . . . . . . . . . . . . . . . .       104,000              -
  Healthcare seating . . . . . . . . . . . .        61,000            52,000
                                               -----------       -----------
                                               $   437,000       $   362,000
                                               ===========       ===========
Capital expenditures, net:
  Multipurpose room furniture. . . . . . . .   $   448,000       $   602,000
  Fence. . . . . . . . . . . . . . . . . . .         6,000              -
  Healthcare seating . . . . . . . . . . . .       571,000           228,000
                                               -----------       -----------
                                               $ 1,025,000       $   830,000
                                               ===========       ===========


                                              NINE MONTHS ENDED DECEMBER 31,
                                                  2006              2005
                                               -----------       -----------
Net sales:
  Multipurpose room furniture. . . . . . . .   $38,298,000       $36,320,000
  Fence. . . . . . . . . . . . . . . . . . .       799,000              -
  Healthcare seating . . . . . . . . . . . .     6,628,000         5,525,000
                                               -----------       -----------
                                               $45,725,000       $41,845,000
                                               ===========       ===========
Income (loss) from operations:
  Multipurpose room furniture. . . . . . . .   $ 4,961,000       $ 5,129,000
  Fence. . . . . . . . . . . . . . . . . . .      (954,000)             -
  Healthcare seating . . . . . . . . . . . .     1,453,000         1,048,000
                                               -----------       -----------
                                               $ 5,460,000       $ 6,177,000
                                               ===========       ===========
<PAGE> 13

Depreciation and amortization expense:
  Multipurpose room furniture. . . . . . . .   $   790,000       $   961,000
  Fence. . . . . . . . . . . . . . . . . . .       303,000              -
  Healthcare seating . . . . . . . . . . . .       172,000           131,000
                                               -----------       -----------
                                               $ 1,265,000       $ 1,092,000
                                               ===========       ===========
Capital expenditures, net:
  Multipurpose room furniture. . . . . . . .   $ 1,193,000       $   959,000
  Fence. . . . . . . . . . . . . . . . . . .       145,000              -
  Healthcare seating . . . . . . . . . . . .     1,225,000           281,000
                                               -----------       -----------
                                               $ 2,563,000       $ 1,240,000
                                               ===========       ===========

                                                DECEMBER 31,       MARCH 31,
                                                    2006             2006
                                                 -----------      -----------
Total assets:
  Multipurpose room furniture. . . . . . . .     $22,002,000      $28,735,000
  Fence. . . . . . . . . . . . . . . . . . .       1,739,000             -
  Healthcare seating . . . . . . . . . . . .       7,512,000        6,084,000
                                                 -----------      -----------
                                                 $31,253,000      $34,819,000
                                                 ===========      ===========
Total goodwill:
  Multipurpose room furniture. . . . . . . .     $ 1,085,000      $ 1,085,000
  Fence. . . . . . . . . . . . . . . . . . .           -                 -
  Healthcare seating . . . . . . . . . . . .       1,275,000      $ 1,273,000
                                                 -----------      -----------
                                                 $ 2,360,000      $ 2,358,000
                                                 ===========      ===========

5.  COMPUTATION OF NET INCOME PER SHARE

The following is the Company's reconciliation of basic and diluted net income
per share for the three months and nine months ended December 31, 2006 and
2005, respectively.

<PAGE> 14

                               THREE MONTHS ENDED        NINE MONTHS ENDED
                                   DECEMBER 31,              DECEMBER 31,
                                 2006        2005         2006        2005
                             ----------- -----------  ----------- -----------
Net income as reported. . . .$ 1,074,000 $ 1,199,000  $ 3,677,000 $ 4,162,000
                             =========== ===========  =========== ===========
BASIC:
 Weighted average number of
  common shares outstanding .  3,326,221   4,076,166    3,577,615   4,135,492
                             =========== ===========  =========== ===========
 Basic net income per share .     $ 0.32      $ 0.29       $ 1.03      $ 1.01
                             =========== ===========  =========== ===========
DILUTED:
 Common and common equivalent
  shares outstanding:
 Weighted average number of
  common shares outstanding .  3,326,221   4,076,166    3,577,615   4,135,492
   Common stock equivalents
    from options computed on
    the treasury-stock method
    using the average fair
    market value of common
    stock outstanding during
    the period  . . . . . . .     77,407     145,367       97,539     152,896
                             ----------- -----------  ----------- -----------
   Shares used in the
    computation . . . . . . .  3,403,628   4,221,533    3,675,154   4,288,388
                             =========== ===========  =========== ===========
 Diluted net income per share     $ 0.32      $ 0.28       $ 1.00      $ 0.97
                             =========== ===========  =========== ===========

6.  LINE OF CREDIT

     On August 21, 2006, the Company entered into a Loan Agreement and
Promissory Note ("Loan") between the Company and Zions First National Bank to
provide an unsecured revolving line of credit of up to $5.0 million.  The Loan
expires on September 1, 2008.  The Loan may be prepaid or terminated at the
Company's option at anytime without penalty.  No amortization is required.
Any outstanding principal balance together with any accrued but unpaid
interest or fees will be due in full at maturity.  The Loan contains negative
and affirmative covenants.  As of December 31, 2006, the Company is in
compliance with all debt covenants.  As of December 31, 2006, the Company had
$3.3 million of borrowings on the line of credit.

<PAGE> 15

7.  NOTES RECEIVABLE

     During the quarter ended March 31, 2002, the Company entered into an
agreement with a dealer for the Company's multipurpose room furniture in
Australia and created a note receivable for $365,000.  This note, which bears
interest at the prime rate, requires monthly payments of interest and
principal in the amount of $6,000 and is being amortized over a nine and one
half year period.  The note is secured by all of the assets of the dealership
and by personal guarantees from the principals of the dealership.  The Company
has no reserve for this note receivable as of December 31, 2006 and March 31,
2006, respectively.  At December 31, 2006, the gross value of this note
receivable was $33,000 as compared to $80,000 as of March 31, 2006.  At
December 31, 2006, all of this note receivable is included in prepaid expenses
and other current assets.  As of December 31, 2006, the dealer was current on
payments on this note receivable.  The Company has another note receivable for
$19,000, of which $10,000 is current.


8.  STOCK REPURCHASE

     On June 7, 2005, the Company announced its intention to repurchase up to
500,000 shares of the Company's common stock.  On January 24, 2006, the board
of directors increased the share repurchase authorization by 150,000 shares.
On May 18, 2006, the board of directors increased the share repurchase
authorization an additional 200,000 shares and on August 3, 2006, the board of
directors again increased the share repurchase authorization an additional
400,000 shares, bringing the total authorized to 1,250,000.  As of December
31, 2006, 1,156,779 shares had been repurchased for approximately $20.1
million.  Of this amount, no shares were repurchased during the three month
period ended December 31, 2006.  For the nine month period ended December 31,
2006, 674,933 shares were repurchased for approximately $12.1 million.  On
October 24, 2006, the board of directors ended the share repurchase
authorization.

<PAGE> 16


ITEM 2.

         MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
                          AND RESULTS OF OPERATIONS

GENERAL

     The following discussion should be read in conjunction with the
accompanying unaudited condensed consolidated financial statements of MITY
Enterprises, Inc. (the "Company") and the notes thereto and with the Company's
Annual Report on Form 10-K for the fiscal year ended March 31, 2006.

     The Company designs and manufactures institutional furniture and markets
its products in niche markets.  The Company's current product lines consist of
multipurpose room furniture, fence products, and healthcare seating.  In
addition, the Company continues to pursue development of new products and the
acquisition of product lines or companies that will be complementary to the
Company's businesses.

     MULTIPURPOSE ROOM FURNITURE.  The Company's multipurpose room furniture
line consists of lightweight, durable, folding leg tables, stacking chairs,
folding chairs, lecterns, portable partitions, portable dance floors, and
other related products.  These products are used in multipurpose rooms of
educational, recreational, hotel and hospitality, government, office,
healthcare, religious and other public assembly facilities.  Historically,
growth in this segment has come from an expanding base of new customers, from
increasing sales to existing customers and from expansion of the Company's
multipurpose room product line.  The current and future growth of the
Company's multipurpose room furniture operations depends largely upon
conditions in the industry, the Company's ability to successfully introduce
and market new product lines of multipurpose room furniture and its ability to
profitably increase its market penetration into existing and new markets.

     MULTIPURPOSE ROOM FURNITURE OUTLOOK.  Since 2004, the institutional
furniture marketplace has seen sustained growth.  For the calendar year 2006
through November, the Business and Institutional Furniture Manufacturer's
Association has reported continued growth at 8 percent, and are estimating
growth for calendar year 2007 of 9 percent.  The Company is encouraged by
these forecasts and is cautiously optimistic that the industry will continue
its growth and that the Company's multipurpose room sales volume will likewise
continue to grow.

     During the past few years, chair sales have begun to make up a larger
portion of the sales of the Company's multipurpose room operations.  Although
table sales still predominate the volume of this operation, much of the
increases in sales can be attributed to increases in chair sales.  Beyond this
fiscal year, the Company anticipates developing additional complementary chair
lines to continue to grow this portion of its business as well as further
penetrating its existing marketplace with its current lines of chairs.
However, the Company cannot guarantee that it will be able to successfully
develop and launch such chair lines or further penetrate its existing
marketplace.

<PAGE> 17

     During the quarter ended December 31, 2006, the Company started shipping
its new dance floor product line.  The Company manufactures, markets, and
sells this product line through an exclusive patent license agreement with the
inventor of the product.  The Company is encouraged by the customer response
that it has received thus far from this product line and believes that it will
also contribute to future growth.

     FENCE PRODUCTS.  Recently, the Company has started designing,
manufacturing, and marketing a line of rotomolded fence panel products used in
commercial and residential fencing application.  The Company is using the
facility and equipment originally acquired for use in a next generation table
line for the manufacture of fence panels and posts, which are outside of its
current institutional furniture market.  The Company is encouraged by the
response from customers who have purchased the product, as well as the
response from potential customers who have viewed and handled the product.
The Company plans to continue building its capacity and refining its
manufacturing techniques as it breaks into this marketplace and is hopeful
that fencing will contribute to its sales growth.  However, the Company cannot
guarantee that it will be successful in marketing these fencing products or in
utilizing its existing capacity.

     HEALTHCARE SEATING.  Through its wholly-owned subsidiary, Broda
Enterprises, Inc., the Company markets a line of healthcare seating products
to customers in Canada and the United States.  Broda's operations are based in
Waterloo, Ontario, Canada.  Broda focuses on providing products which assist
long-term care patients with advanced needs due to a debilitating condition or
disease, and has developed a line of premium-priced geriatric seating
products.  Broda chairs serve a very specific niche in the healthcare market
and thus do not compete in the commodity-oriented general healthcare seating
market.

     HEALTHCARE SEATING OUTLOOK.  The Company believes that the specialty
healthcare seating market is less subject to economic pressures than the
Company's multipurpose room furniture operations.  However, the medical and
healthcare industry is more subject to regulatory changes that could affect
the demand for Broda's products.  Recent changes in the durable medical
equipment marketplace relating to government reimbursements for these products
at the federal and state level has negatively impacted Broda's business.  The
Company is not currently aware of any other regulatory changes in the near
future that would have a substantial and negative impact on this business.
The Company's healthcare seating operation's future growth depends largely
upon increasing its market penetration into the U.S. and other foreign markets
as well as its ability to successfully introduce and market new product lines.
During the past few years, the Company has hired direct employees in the
United States to market its healthcare seating production, replacing some of
the dealers and distributors that it previously had in those areas. The
Company intends to expand this presence in the coming years.

     GENERAL OUTLOOK.  Based on the reasons stated above, the Company
anticipates that sales volumes during the quarter ending March 31, 2007 will
be up to 10 percent higher as compared to the prior year's fourth quarter.
Despite these trends, the Company, for a variety of reasons, including those
described elsewhere herein, may not be successful in achieving this sales
level in the fourth quarter.

<PAGE> 18

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

     This discussion and analysis of financial condition and results of
operations is based upon the Company's consolidated financial statements which
have been prepared in accordance with accounting principles generally accepted
in the United States of America.  These principles require the use of
estimates and assumptions that affect amounts reported and disclosed in the
financial statements and footnotes.  The critical accounting policies for the
Company, which require management to make judgments and assumptions about
matters that are uncertain at the time of the estimate include the allowance
for doubtful accounts receivable, the reserve for obsolete inventory, accruals
for warranty expense, assets related to the discontinued next generation table
line, goodwill and other intangible assets, notes receivable, income taxes,
revenue recognition, and stock-based compensation.

Allowance for doubtful accounts receivable: The Company exercises considerable
judgment in determining the ultimate collectability of its accounts
receivable.  Several factors are used in making these judgments including the
customer credit quality, historical write-off experience and current economic
trends.  The Company reviews these factors quarterly, and the allowance is
adjusted accordingly.  If the financial condition of the Company's customers
were to deteriorate, an additional allowance may be required.

Reserve for obsolete inventory: Inventories are stated at the lower of cost,
on a first in, first out basis, or market.  Additionally, the Company
evaluates its inventory reserves in terms of excess and obsolete exposures.
This evaluation includes such factors as anticipated usage, inventory turnover
and ultimate product sales value.  Decreases in customer demand or changes in
buying patterns could cause this reserve to be increased.

Accruals for warranty expense: The Company provides for the estimated cost of
product warranties at the time revenue is recognized.  This warranty
obligation is affected by failure rates, the introduction of new products, and
the costs of material and labor to repair or replace the product.  The Company
regularly assesses the adequacy of its accrual for warranty expense based upon
historical warranty rates and anticipated future warranty rates.  If the
Company were to experience an increase in warranty claims compared with its
historical experience or if the cost of servicing warranty claims is greater
than expected, gross margins could be adversely affected.

Assets related to the discontinued next generation table line: Due to the
decision by the board of directors in January 2005 to discontinue the next
generation table project, the Company impaired certain long-term assets during
the quarter ended March 31, 2005.  This resulted in an impairment charge of
$2.0 million related to the fixed assets.  The Company utilized an outside
specialist to help establish the fair value of the assets which involved
considerable judgment.  The Company believes that it will be able to fully
realize the impaired value of these assets but cannot ensure that it will be
successful.

<PAGE> 19

Goodwill and other intangible assets: The Company reviews annually the
carrying value of its goodwill.  The goodwill arose from its acquisitions of
Broda Enterprises and Versipanel.  During the quarter ended June 30, 2006, the
Company performed its annual review of the goodwill related to these
acquisitions.  These reviews are performed using estimates of future cash
flows.  If the carrying value of the goodwill is considered impaired, an
impairment charge is recorded for the amount by which the carrying value of
the intangible asset exceeds its fair value.  No impairment charges have been
recorded related to the Broda or Versipanel goodwill.  The Company's ongoing
consideration of these factors could result in future impairment charges,
which could adversely affect net income.  In addition, during the quarter
ended December 31, 2006 the Company acquired an intangible asset related to a
license agreement for its portable dance floors.  The term of this license
agreement extends through the life of the patent which expires in June 2016.
This intangible asset is being amortized, on a straight-line basis, over the
life of the patent.

Notes receivable: The Company reviews its notes receivable to determine likely
collectability.  Since some of the notes are with entities without a history
of an ability to create future cash flows, the Company bases its belief in
their collectability upon its understanding of the financial strength of the
entities.  Due to the level of uncertainty in the success of these entities,
these notes receivable may not be ultimately realized.

Income taxes: The Company has not provided a valuation allowance against the
deferred tax assets recorded in the financial statements.  The Company
evaluates quarterly the realizability of its deferred tax assets based upon
expected future taxable income.  Management believes that it is more likely
than not that future earnings will be sufficient to recover deferred tax
assets.  If future earnings are not as high as expected, the Company's ability
to recover deferred tax assets may be hindered.

Revenue Recognition: The Company recognizes revenue in accordance with Staff
Accounting Bulletin (SAB) No. 101, "Revenue Recognition," as revised by SAB
No. 104.  Sales are recorded when title passes and collectability is
reasonably assured under its various shipping terms.  Revenue is normally
recognized upon shipment of goods to customers.  In certain circumstances
revenue is not recognized until the goods are received by the customer based
on terms of the sales agreement.  Discounts directly related to the sale are
recorded as a reduction to net sales.

Stock-Based Compensation: Effective April 1, 2006, the Company adopted
Statement of Financial Accounting Standards (SFAS) No. 123R, "Share-Based
Payment," (SFAS No. 123R) using the modified prospective transition method.
Under this transition method, stock-based compensation cost recognized
beginning April 1, 2006 includes compensation cost for all share-based
payments not yet vested as of April 1, 2006 based on the grant date fair value
estimated had we adopted the provisions of SFAS No. 123.  In addition, this
transition method requires any share-based payments granted after April 1,
2006 be accounted in accordance with the provisions of SFAS No. 123R.

<PAGE> 20

Compensation cost is recognized net of a forfeiture rate for only those awards
expected to vest on a straight-line basis over the requisite service period.
Reasonable judgment is required in the determination of the fair value of
share-based payment on the date of grant using an option-pricing model with
assumptions regarding a number of highly complex and subjective variables.
These variables include, but are not limited to, the expected term of the
awards, the expected stock price volatility over the term of the awards, the
expected dividends of the awards, the risk-free interest rate of the awards,
and an estimate of the amount of awards that are expected to be forfeited.  If
factors change and different assumptions are employed to the application of
SFAS No. 123R in future periods, the stock-based compensation expense recorded
under SFAS No. 123R may differ significantly from what was recorded in the
current period.

COMPARISON OF THE RESULTS OF OPERATIONS FOR THE THREE MONTHS AND NINE MONTHS
ENDED DECEMBER 31, 2006 AND 2005

     NET SALES.  The Company's third quarter fiscal 2007 net sales of
$15,242,000 were up 14 percent as compared with the third quarter net sales in
the prior fiscal year.  The increase reflects sales increases at the
healthcare chair operations of 14 percent as compared to the prior year's
quarter due largely to higher U.S. sales.  Net sales also increased at the
Company's multipurpose room operations as compared to the prior year's quarter
by 11 percent.  The Company's total international sales represented 16 percent
of net sales as compared to 14 percent of net sales for the prior year's
quarter.  The increase in sales at the multipurpose room operations was due to
table sales being higher by 10 percent as compared to the prior year's
quarter, a 14 percent increase in chair sales, and a 10 percent increase in
other sales.  These increases were due to growth in the hospitality,
government, public assembly and recreation markets.  In addition, the Company
shipped $346,000 of its new fence product in the current quarter.  No fence
product was shipped in the prior year's third quarter.  During the quarter,
the Company continued seeing success at fully staffing its production
operations at the multipurpose room operations in response to increased sales
volume.  As a result, the high levels of backlogs experienced at the end of
the prior two quarters was reduced to more normal levels by the end of the
third quarter of fiscal 2007.  Net sales at the healthcare seating operation
increased due to increased penetration in the U.S. markets.  The Company
expects that its overall net sales will be up to 10 percent higher in the
fourth quarter of fiscal 2007 as compared to the fourth quarter of fiscal
2006.  However, the Company cannot ensure that it will be successful or that
it will reach this increased sales level.

<PAGE> 21

     For the nine months ended December 31, 2006, the Company's net sales of
$45,725,000 represented an increase of 9 percent over the same period in the
prior fiscal year.  For the nine months ended December 31, 2006, the increase
reflects sales increases, as compared to the nine months ended December 31,
2005, of 5 percent in the Company's multipurpose room operations and 20
percent in the Company's healthcare chair operations.  The Company's total
international sales represented 15 percent of net sales for the nine months
ended December 31, 2006 as compared to 15 percent in the prior year's period.
The 5 percent increase in the Company's multipurpose room operations is
attributed to a 9 percent increase in chair sales, a 4 percent increase in
table sales, and a 6 percent increase in other sales.  Sales at the healthcare
seating operation increased due to increased penetration in the U.S. markets.
For the nine months ended December 31, 2006, table sales accounted for 53
percent of net sales, multipurpose room chair sales accounted for 24 percent,
and healthcare chairs were 14 percent.  Other sales, consisting primarily of
sales of carts, portable partitions and lecterns, totaled 7 percent of the
Company's net sales.  In addition, the Company shipped $799,000 of its new
fence product during the nine months ended December 31, 2006.  No fence
product was shipped in the prior year period.

     GROSS PROFIT.  Gross profit as a percentage of net sales in the quarter
ended December 31, 2006 decreased by 3 percentage points as compared to the
same quarter in the prior fiscal year to 31 percent.  The lower margin was due
primarily to higher material and labor costs, as a percent of sales, at the
multipurpose room operation.  The higher material costs resulted from
increasing raw material costs and decreasing manufacturing efficiencies and
accounted for approximately one percentage point of the decrease.  The labor
cost increase resulted from increases in production wages as well as increased
overtime as compared to the prior year's third quarter.  In addition, the
Company experienced several days of downtime with one of its critical pieces
of equipment during the quarter which slowed production and significantly
increased the labor costs.  These higher labor costs accounted for
approximately two and one half percentage points of the decrease in gross
margin.  Gross margin was additionally reduced by an additional one percentage
point as a result of the material, labor and overhead costs related to the
continued startup of the fence operations in the current quarter.  The Company
also recognized $28,000 in stock-based compensation expense in costs of
products sold for the quarter ended December 31, 2006.  These increases were
partially offset by lower overhead costs, as a percent of net sales during the
current quarter as compared to the prior year's quarter at both the
multipurpose room and the healthcare seating operations as well as lower
material costs, as a percent of net sales, at the healthcare seating
operations.

<PAGE> 22

     Gross profit as a percentage of net sales in the nine months ended
December 31, 2006 decreased by 3 percentage points as compared to the same
period in the prior fiscal year to 32 percent.  The lower margin was due
primarily to higher material and labor costs, as a percent of net sales, at
the multipurpose room operation.  The higher material costs resulted from
increasing raw material costs and decreasing manufacturing efficiencies and
accounted for approximately one percentage point of the decrease.  The labor
cost increase resulted from increases in production wages as well as increased
overtime as compared to the prior year's period.  Due to local economic
conditions, turnover at the Company's multipurpose room operations has
significantly increased, resulting in higher labor costs and reduced
manufacturing efficiencies.  These higher labor costs accounted for
approximately two percentage points of the decrease in gross margin.  Labor
and overhead costs, as a percent of net sales, were also higher during the
current nine month period as compared to the prior year's period at the
healthcare seating operations.  In addition, the Company incurred higher
material, labor and overhead costs related to the continued startup of the
fence operations in the nine month period or one percentage point of the
variance.  The Company also recognized $79,000 in stock-based compensation
expense in costs of products sold for the nine months ended December 31, 2006.
These increases were partially offset during the period by lower overhead
costs, as a percent of net sales, at the multipurpose room furniture
operations as well as lower material costs, as a percent of net sales, at the
healthcare seating operations.

     SELLING EXPENSES.  Selling expenses were 15 percent of net sales in the
third quarter of fiscal 2007 and 2006.  Actual expenses increased by $229,000.
Multipurpose room furniture selling costs increased by $116,000 over the prior
fiscal year.  This increase resulted primarily from higher new representative
salary costs, higher trade show costs, and the recognition in the current
quarter of $18,000 in stock-based compensation expense.  These increases were
partially offset by lower literature and advertising expenses.  Selling
expenses at the healthcare seating operations increased by $85,000 over the
prior fiscal year primarily due to higher commission costs due to the higher
sales volume.  The Company also incurred $28,000 in selling expenses related
to the fence operation.

     Selling expenses were 14 percent of net sales in the nine months ended
December 31, 2006 and 2005.  Actual expenses increased by $528,000.
Multipurpose room furniture selling expenses increased by $299,000 over the
prior fiscal year.  This increase resulted primarily from higher commission
costs, new representative salary costs, trade show costs, and the recognition
in the current period of $51,000 in stock-based compensation expense.  These
increases were partially offset by lower office and sales samples expenses.
Selling expenses at the healthcare seating operations increased by $162,000
over the prior fiscal year primarily due to higher commission costs due to the
higher sales volume.  The Company also incurred $67,000 in selling expenses
related to the fence operation.

     GENERAL AND ADMINISTRATIVE EXPENSES.  General and administrative expenses
were 4 percent of net sales for the third quarter of fiscal 2007 and 2006.
Actual expenses increased by $69,000.  The increase was primarily due to
higher expenses for legal and professional fees and $29,000 in stock-based
compensation expense.

<PAGE> 23

     General and administrative expenses were 4 percent of net sales for the
nine months ended December 31, 2006 and 2005.  Actual expenses increased by
$190,000.  The increase was primarily due to higher personnel expenditures,
higher expenses for legal and professional fees, and $69,000 in stock-based
compensation expense.  These increases were partially offset by lower expenses
for outside services.

     RESEARCH AND DEVELOPMENT EXPENSES.  Research and development expenses
were 2 percent of net sales for the third quarter of fiscal 2007 as compared
to 3 percent in the same quarter of the prior fiscal year.  Actual expenses
decreased by $31,000 primarily due to lower outside services costs as well as
lower testing and prototyping expenses.  These decreases were partially offset
by stock-based compensation expenses of $9,000.

     Research and development expenses were 2 percent of net sales for the
nine month period ended December 31, 2006 as compared to 3 percent in the same
period in the prior fiscal year.  Actual expenses decreased by $155,000
primarily due to lower outside services costs, lower testing costs, and lower
depreciation costs due to classifying the fence related expenses in the
current year as a production expense rather than a research and development
expense.  These decreases were partially offset by stock-based compensation
expenses of $24,000.

     OTHER INCOME.  Other income netted to $77,000 for the third quarter of
fiscal 2007 as compared to $64,000 in fiscal 2006.  Third quarter interest
income was lower at $4,000 as compared to $81,000 in the third quarter of the
prior fiscal year due to lower investment balances.  Other income totaled
$124,000 for the current quarter, and consisted of $120,000 in net gains on
currency exchange and $4,000 in other income.  Partially offsetting other
income was interest expense, totalling $51,000 in the current quarter.

     Other income and expense netted to $111,000 for the nine month period
ended December 31, 2006 and 2007.  Interest income was lower at $113,000 as
compared to $221,000 in the prior fiscal year due to lower investment
balances, partially offset by higher rates of return.  Due to the use of a
line of credit during the current period, the Company incurred interest
expense of $62,000.  Other income totaled $60,000 for the current period, and
consisted of $51,000 in net gains on currency exchange and $9,000 in other
income.

     NET INCOME.  For the reasons stated above, the Company's fiscal 2007
third quarter net income of $1,074,000 decreased $125,000 or 10 percent as
compared to the third quarter net income in the same quarter in the prior
fiscal year.  For the nine month period ended December 31, 2006, net income
was $3,677,000, a decrease of $485,000 from the same period in the prior
fiscal year.


LIQUIDITY AND CAPITAL RESOURCES

     Cash and cash equivalents, which consist primarily of repurchase
agreements collateralized with U.S. Treasury securities, totaled $0.24 million
at December 31, 2006 as compared to $4.79 million at March 31, 2006.

     The following table highlights certain key cash flow and capital
information pertinent to the discussion that follows:

<PAGE> 24

                                                   NINE MONTHS ENDED
                                                   DECEMBER 31, 2006
                                                    --------------
Net cash provided by operating activities. . . .     $ 2,161,000
Net sales of available-for-sale securities . . .       4,551,000
Purchases and retirement of common stock . . . .     (12,124,000)
Purchases of property and equipment. . . . . . .      (2,563,000)
Net proceeds from line of credit . . . . . . . .       3,298,000
Net proceeds from exercise of stock options and
 the issuance of shares to the 401k plan . . . .         165,000

     The decrease in cash and cash equivalents was due primarily to stock
repurchases ($12.12 million) and purchases of property and equipment ($2.56
million).  The decrease was partially offset by cash provided by operating
activities ($2.16 million), the net sale of available-for-sale securities
($4.55 million), the net proceeds from line of credit ($3.30 million), and net
proceeds related to the exercise of stock options and the issuance of shares
to the 401k plan ($0.16 million).

     Historically, the Company has financed its growth primarily through cash
flows from its operations.  On August 21, 2006, the Company entered into a
Loan Agreement and Promissory Note ("Loan") between the Company and Zions
First National Bank to provide an unsecured revolving line of credit of up to
$5.0 million.  The Loan expires on September 1, 2008.  The Loan may be prepaid
or terminated at the Company's option at anytime without penalty.  No
amortization is required.  Any outstanding principal balance together with any
accrued but unpaid interest or fees will be due in full at maturity.  The Loan
contains negative and affirmative covenants.  As of December 31, 2006, the
Company was in compliance with all debt covenants.  As of December 31, 2006,
the Company had $3.3 million of borrowings outstanding on the line of credit.
The Company's subsidiary, Broda Enterprises, also has a line of credit with a
limit, as of December 31, 2006, of $0.90 million.  This limit was increased to
$1.3 million on January 29, 2007.  As of December 31, 2006, no amount was
drawn under this facility.  This credit facility requires the maintenance of
certain financial ratios and levels of working capital.  As of December 31,
2006, the Company was in full compliance with the loan covenants related to
Broda's credit facility.  The Company's liquidity depends only partially upon
the availability of the Broda credit facility.

     The Company currently believes that cash flows from its current
operations together with existing cash reserves and available lines of credit
will be sufficient to support its working capital requirements for its
existing operations for at least the next 12 months.  No assurances can be
given as to the sufficiency of the Company's working capital to support the
Company's operations.  If the existing cash reserves, cash flows from
operations and debt financing are insufficient or if working capital
requirements are greater than currently estimated, the Company could be
required to raise additional capital.  There can be no assurance that the
Company will be capable of raising additional capital or that the terms upon
which such capital will be available to the Company will be acceptable.
Additional sources of equity capital are available to the Company through the
exercise by holders of outstanding options.  At December 31, 2006, the
proceeds which would have been received by the Company upon exercise of
outstanding options which were exercisable on that date were approximately
$3.19 million.  There is no assurance that such options will be exercised.

<PAGE> 25

     The Company is in the process of constructing two manufacturing
facilities, one located adjacent to its Orem facility and the other located in
Waterloo, Ontario, Canada.  The new Orem facility will have 47,000 square feet
of warehousing and light manufacturing floorspace.  The Company estimates that
this facility will cost $3.0 million and that it will be completed by June
2007.  As of December 31, 2006, approximately $0.5 million has been paid for
this new facility.  The new Waterloo facility will have 42,000 square feet of
office, warehousing, and manufacturing floorspace.  This facility is
anticipated to replace the existing facilities that the Company is currently
leasing.  The Company estimates that this facility will cost $2.9 million and
that it will be completed by June 2007.  As of December 31, 2006,
approximately $0.5 million has been paid for this new facility.  The Company
anticipates funding the construction of these facilities utilizing operating
cash flows and existing lines of credit.  However, it may be necessary to
increase these lines of credit in order to fund this construction.

     On June 7, 2005, the Company announced its intention to repurchase up to
500,000 shares of the Company's common stock.  On January 24, 2006, the board
of directors increased the share repurchase authorization by 150,000 shares.
On May 18, 2006, the board of directors increased the share repurchase
authorization an additional 200,000 shares and on August 3, 2006, the board of
directors again increased the share repurchase authorization an additional
400,000 shares, bringing the total authorized to 1,250,000.  As of September
30, 2006, 1,156,779 shares had been repurchased for approximately $20.1
million.  For the nine month period ended December 31, 2006, 674,933 shares
were repurchased for approximately $12.1 million.  At a meeting of the board
of directors on October 24, 2006, the board ended the current stock repurchase
program.  No shares were purchased during the three month period ending
December 31, 2006.

     The Company's material cash commitments at December 31, 2006 include
current liabilities of $5.61 million to be repaid from funds generated from
operations.  Current liabilities consist of the following:

                                                 DECEMBER 31,      MARCH 31,
                                                    2006             2006
                                                 -----------      -----------
Accounts payable. . . . . . . . . . . . . . . .   $2,480,000       $1,989,000
Accrued payroll . . . . . . . . . . . . . . . .    1,876,000        1,080,000
Accrued warranty expense. . . . . . . . . . . .      471,000          470,000
Deferred revenue. . . . . . . . . . . . . . . .      316,000          492,000
Income taxes payable. . . . . . . . . . . . . .       95,000           88,000
Other accruals. . . . . . . . . . . . . . . . .      373,000          297,000
                                                 -----------      -----------
Total current liabilities . . . . . . . . . . .   $5,611,000       $4,416,000
                                                 ===========      ===========

     The Company has also entered into two operating lease agreements for
Broda's production and office facilities under which it is obligated to pay
$16,000 Canadian (approximately US $15,000) per month through April 2007.

<PAGE> 26

FORWARD-LOOKING STATEMENTS AND FACTORS THAT MAY AFFECT FUTURE RESULTS OF
OPERATIONS

     Certain statements made above in this filing that are not historical
facts are "forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995 (the "Reform Act").  When used in
this filing, the words or phrases "may," "will," "management believes,"
"Company believes," "Company intends," "estimates," "projects," "anticipates,"
"expects" and similar expressions are intended to identify "forward-looking
statements" within the meaning of the Reform Act.

     Forward-looking statements contained herein include plans and objectives
of management for future operations, including plans and objectives relating
to the products, marketing, customers, product line expansions or cost
reductions to preserve margins.  These forward-looking statements involve
risks and uncertainties and are based on certain assumptions that may not be
realized.  Actual results and outcomes may differ materially from those
discussed or anticipated.  The forward-looking statements and associated risks
set forth herein and elsewhere in this filing include, but are not limited to:

   - statements that the Company continues to pursue new product development
and acquisitions of product lines or companies that would be complementary to
the Company's businesses;
   - references to predicted increases in the institutional furniture and U.S.
office furniture markets;
   - statements that the Company plans to continue building its capacity and
refining its manufacturing techniques, and its hope that fencing will
contribute to its sales growth;
   - statements that the Company anticipates developing additional
complementary chair lines and further penetrating its existing marketplace
with its current line of chairs;
   - statements about the Company's belief that it will be able to fully
realize the impaired value of the assets associated with the next generation
table project;
   - statements that the Company anticipates that its sales volumes during the
fourth quarter of fiscal 2007 will be up to 10 percent higher as compared to
the sales levels of the fourth quarter of fiscal 2006;
   - the statement that the Company intends to expand the number of direct
employees hired to market its healthcare seating products in the coming years;
   - statements that management believes it is more likely than not that
future earnings will be sufficient to recover deferred tax assets;
   - statements relating to the Company's belief that cash flow from its
current operations, existing cash reserves, and available line of credit will
be sufficient to support its working capital requirements to fund existing
operations for at least the next 12 months; and
   - statements that management believes it will be able to work through its
backlog and return its backlog and lead times to more normal levels during the
quarter.

<PAGE> 27

     All forward-looking statements involve predictions and are subject to
known and unknown risks and uncertainties, including, without limitation,
those discussed below as well as general economic and business conditions that
could cause actual results to differ materially from historical results and
those presently anticipated or projected.  Readers should not place undue
reliance on any such forward-looking statements, which speak only as of the
date made.  The considerations listed below and elsewhere in this filing, as
well as those described in our Annual Report on Form 10-K, could affect the
Company's financial performance and could cause the Company's actual results
for future periods to differ materially from any views or statements expressed
with respect to future periods.  Important factors and risks that might cause
such differences, include, but are not limited to:
   - downturns or improvements in domestic and international economies and
business conditions, specifically in the institutional furniture industry;
   - continued global tension and U.S. military actions related thereto and
continued acts of terror and threats of terrorism;
   - increased competition in the Company's core businesses;
   - loss of important customer contracts through increased price-based and
product quality competition, especially in the Company's multipurpose room
furniture segment;
   - limited management and key employee resources;
   - declines in sales volumes and profit margins in the Company's
businesses;
   - lower than expected revenue, revenue growth, cash flow and gross margins
from the multipurpose room and healthcare seating operations, higher materials
and labor costs, or the Company's inability, for any reason, to profitably
introduce new products or implement its marketing strategies in the healthcare
seating and multipurpose room markets;
   - management's inability for any reason to manage effectively the Company's
operations;
   - the Company's inability for any reason to develop new products and expand
successfully into new markets;
   - the Company's ability to effectively produce and sell its next generation
multipurpose room table products;
   - the Company's ability to manufacture and market at current margins high
quality, high performance products at competitive prices;
   - import restrictions and economic conditions in the Company's foreign
markets and foreign currency risks associated therewith;
   - the Company's ability to maintain relatively low cost labor rates;
   - the Company's ability to source a sufficient volume of acceptable raw
materials at current prices;
   - increased product warranty service costs if warranty claims increase as a
result of the Company's new product introductions or acquisitions or for any
other reason;
   - the Company's ability to refine and enhance the quality and productivity
of its manufacturing process;
   - the Company's ability to locate and successfully consummate and integrate
acquisitions, if any, of complementary product lines or companies on terms
acceptable to the Company;
   - the Company's ability to retain and maintain relationships with key
customers;
   - the Company's ability to raise capital, if needed;
   - the availability of insurance funding for the Company's healthcare
seating products;
   - regulatory developments that adversely affect demand for the Company's
products, particularly the Company's healthcare seating products; and

<PAGE> 28

   - the Company's ability to hire and retain production workers and stabilize
its manufacturing operations.

     In light of the significant uncertainties inherent in forward-looking
statements, the inclusion of any such statement should not be regarded as a
representation by the Company or any other person that the objectives or plans
of the Company will be achieved.  The Company disclaims any obligation or
intent to update any such factors or forward-looking statements to reflect
future events or developments, except as required by law.


ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

     The Company manufactures its products in the United States and Canada and
sells its products in those markets as well as in other countries.  The
majority of the Company's sales and expenses are transacted in U.S. dollars
with some transactions occurring in Canadian dollars or other foreign
currencies.  Foreign currency exchange rate fluctuations did not have a
material impact on the financial results of the Company during the three
months ended December 31, 2006.  The Company has occasionally entered into
forward contracts for specific US$ denominated accounts receivable related to
its healthcare seating operations.  As of December 31, 2006, no forward
contracts were outstanding and no forward contracts were entered into during
the three months and nine months ended December 31, 2006.  The economic impact
of foreign exchange rate movements on the Company is complex because such
changes are often linked to variability in real growth, inflation, interest
rates, governmental actions and other factors.


ITEM 4.  CONTROLS AND PROCEDURES

EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES

     Under the supervision and with the participation of the Company's
management, including the Company's Chief Executive Officer and Chief
Financial Officer, the Company evaluated the effectiveness of the design and
operation of the Company's disclosure controls and procedures (as defined in
Rule 13a-15(e) under the Securities Exchange Act of 1934 (the "Exchange
Act")).  Based upon that evaluation, the Chief Executive Officer and Chief
Financial Officer concluded that, as of the end of the period covered by this
report, the Company's disclosure controls and procedures were effective.

CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING

     During the most recent fiscal quarter covered by this report, there has
been no change in the Company's internal control over financial reporting (as
defined in Rule 13a-15(f) under the Exchange Act) that has materially
affected, or is reasonably likely to materially affect, the Company's internal
control over financial reporting.

<PAGE> 29

                        PART II:  OTHER INFORMATION

ITEM 6.  EXHIBITS

    3.1   Amended and Restated Articles of Incorporation of the Registrant
          incorporated by reference to the referenced exhibit number to the
          Company's Registration Statement on Form SB-2, Reg. No. 33-76758-D.

    3.2   Amended and Restated Bylaws of the Registrant incorporated by
          reference to the referenced exhibit number to the Company's
          Registration Statement on Form SB-2, Reg. No. 33-76758-D.

    3.3   First Amendment to the Amended and Restated Bylaws of Registrant
          incorporated by reference to the referenced exhibit number to the
          Company's Registration Statement on Form SB-2, Reg. No. 33-76758-D.

    10.1  Loan Agreement between Zions First National Bank and the Company,
          dated August 21, 2006 (incorporated by reference to Exhibit 10 of
          the Company's Form 8-K dated August 24, 2006).

    10.2  2006 Stock Incentive Plan, dated August 3, 2006 (incorporated by
          incorporated by reference to Exhibit 99.1 of the Company's Form 8-K
          dated August 7, 2006).

    10.3  Form of incentive stock option agreement for 2006 Stock Incentive
          Plan (incorporated by reference to Exhibit 99.2 of the Company's
          Form 8-K dated August 7, 2006).

    10.4  Form of non-qualified stock option agreement for 2006 Stock
          Incentive Plan (incorporated by reference to Exhibit 99.3 of the
          Company's Form 8-K dated August 7, 2006).

    31.1  Certification of Bradley T Nielson, President and Chief Executive
          Officer, pursuant to Rule 13a-14(a) of the Exchange Act, as
          adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

    31.2  Certification of Paul R. Killpack, Chief Financial Officer,
          pursuant to Rule 13a-14(a) of the Exchange Act, as adopted
          pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

    32.1  Certification of Bradley T Nielson, President and Chief Executive
          Officer, pursuant to Section 1350, Chapter 63 of Title 18, United
          States Code, as adopted pursuant to Section 906 of the Sarbanes-
          Oxley Act of 2002.

    32.2  Certification of Paul R. Killpack, Chief Financial Officer,
          pursuant to Section 1350, Chapter 63 of Title 18, United States
          Code, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act
          of 2002.

<PAGE> 30

                                  SIGNATURES

     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.

                                        MITY Enterprises, Inc.


Date: January 30, 2007                  /s/ Bradley T Nielson
                                        ------------------------------------
                                        Bradley T Nielson
                                        President and Chief Executive Officer
                                        (Principal Executive Officer)


Date: January 30, 2007                  /s/ Paul R. Killpack
                                        ------------------------------------
                                        Paul R. Killpack
                                        Chief Financial Officer
                                        (Principal Financial and Accounting
                                        Officer)