Rexhall Industries Reports Second Quarter Results

12 August 1998

Rexhall Industries Reports Second Quarter Results

    LANCASTER, Calif.--Aug. 12, 1998--Rexhall Industries Inc. reported second quarter results ended June 30, 1998.
    Revenues for the quarter increased to $18,380,000 an increase of 13.4% for the same quarter last year. Net income for the second quarter of 1998 was $956,000 compared with $683,000 for the same quarter in 1997. Diluted earnings per share were $.32 in the second quarter of 1998 vs. $.23 for the comparable period of 1997.
    "We felt that our new centralized production strategy was moving more swiftly than we had originally anticipated and the result was $.32 earnings per share for the second quarter which was in excess of our second quarter forecast," stated Anthony J. Partipilo, chief financial officer.
    "We think the increase in our revenues and earnings per share reflect positively on management's restructuring decision made in the fourth quarter of 1997."
    Visit Rexhall's Investor Relations site at http://www.businesswire.com/cnn/rexl.htm

                    Summary Statement of Operations

                    Three months ended         Six months ended
                          June 30,                  June 30,
                     1998         1997         1998         1997

Revenue          $18,380,000  $16,215,000  $32,550,000  $33,880,000
Cost of Sales     15,456,000   13,583,000   27,463,000   28,848,000
Net Income           956,000      683,000    1,499,000    1,221,000
Weighted Average Number
 of Common and Equivalent
 Shares Outstanding                                        
 - Diluted         2,949,000    2,963,000(a) 2,949,000    2,963,000(a)
Earnings Per Share
 - Diluted         $     .32    $     .23(a) $     .51    $     .41(a)

(a) Originally reported as $.24 and $.43 per share based on 2,821,000 shares outstanding. However, considering the 5% stock dividend of 142,000 shares on June 19, 1998, earnings were adjusted to $.23 and $.41 per share.

Forward-Looking Statements: This report contains forward-looking statements that are based on assumptions and on facts as known to the company today. The company does not intend to update them. Rexhall's business is subject to increases in materials costs, pricing and other pressures from substantially larger competitors, labor disruptions, and adverse weather reducing sales and making deliveries difficult. For some time, favorable recreational vehicle industry sales have been achieved when there are low interest rates, low unemployment, and ready availability of motor fuel. All three of these factors may change rapidly. Consumer confidence levels have been good, but may decline for many reasons, causing postponement of discretionary recreational purchases. These factors are not easily predictable and many are beyond management's control.