Rexhall Industries Announces Third Quarter Results
LANCASTER, Calif.--Nov. 1, 20038, 2003--Rexhall Industries, Inc. today reported its financial results for its third quarter ended September 30, 2003. Net revenues for the third quarter decreased 16% to $10,823,000 from $12,872,000 for the same period in 2002. Gross profit for the third quarter was $1,264,000 versus $1,042,000 last year, which is a 21% increase. Net loss for the quarter was $204,000, or $0.03 per diluted share, compared to a net loss of $907,000 or $0.15 per diluted share for the third quarter last year.Net revenues for the first nine months ended September 30, 2003 decreased 32% to $33,411,000 from $49,243,000 for the same period in 2002. Gross profit for the nine months was $4,125,000 versus $4,719,000 last year, which is a decrease of 13%. Net loss for the period was $542,000, or $0.09 per diluted share, compared to a net loss of $896,000 or $0.15 per diluted share for the same nine months last year.
"While sales continued to be below prior year levels, revenues in the third quarter of 2003 increased approximately 12% from revenues in the second quarter of 2003. We focused much of our energies in the third quarter on developing our new line of T-Rex Motorhomes and redesigning our standard product line in order to accommodate the demands of a changing market," stated Mike Pieper, Rexhall's newly appointed CFO and Vice President of Administration.
William J. Rex, President, Chairman and CEO stated, "Although we continued to perform below industry levels in terms of wholesale shipments in the third quarter, we were successful in containing our per-unit production costs and SG&A expenses during a down market. The promotion of Mike Pieper, who worked for Rexhall in the early 1990's, has enabled the Company to achieve more timely financial reporting while strengthening the Company's Management Team."
REXHALL INDUSTRIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
September 30, December 31,
2003 2002
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ASSETS
------
CURRENT ASSETS
Cash $382,000 $5,757,000
Accounts Receivables, net 3,929,000 2,251,000
Income Tax Receivable 536,000 360,000
Inventories 14,350,000 15,049,000
Deferred Income Taxes 680,000 1,003,000
Other Current Assets 1,373,000 139,000
Current Assets of Discontinued Operations ----- 182,000
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TOTAL CURRENT ASSETS $21,250,000 $24,741,000
Property and Equipment at Cost Net
of Accumulated Depreciation 5,798,000 5,021,000
Property Held for Sale ----- -----
Other Assets 152,000 152,000
Non-Current Assets of Discontinued
Operations ----- 37,000
------------ ------------
TOTAL ASSETS $27,200,000 $29,951,000
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LIABILITIES & STOCKHOLDERS' EQUITY
----------------------------------
CURRENT LIABILITIES
Accounts Payable $2,270,000 $1,622,000
Chassis Vendor Line of Credit 1,908,000 3,381,000
Notes Payable and Current Portion of Long-
Term Debt 62,000 36,000
Accrued Warranty 894,000 991,000
Accrued Legal 754,000 1,250,000
Accrued Dealer Incentives 534,000 638,000
Other Accrued Liabilities 1,316,000 1,750,000
Accrued Compensation and Benefits 213,000 472,000
Current Liabilities of Discontinued
Operations ----- 20,000
------------ ------------
TOTAL CURRENT LIABILITIES 7,951,000 10,160,000
Long-Term Debt, less Current Portion 950,000 634,000
------------ ------------
TOTAL LIABILITIES 8,901,000 10,794,000
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STOCKHOLDERS' EQUITY
Preferred Stock - no par value,
Authorized, 1,000,000 shares; no shares
outstanding at September 30, 2003
and December 31, 2002 ----- -----
Common Stock - no par value,
Authorized, 10,000,000 shares; issued
and outstanding 5,872,700 at
September 30, 2003 and 6,038,000
December 31, 2002 5,580,000 5,906,000
Retained Earnings 12,719,000 13,251,000
------------ ------------
TOTAL STOCKHOLDERS' EQUITY 18,299,000 19,157,000
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $27,200,000 $29,951,000
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REXHALL INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
Three Months Ended
September 30, September 30,
2003 2002
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Net Revenues $10,823,000 $12,872,000
Cost of Sales 9,559,000 11,830,000
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Gross Profit $1,264,000 $1,042,000
Operating Expenses:
Selling, General, Administrative Expenses
and Other Expenses 1,829,000 2,559,000
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Income/(Loss) before Income Taxes (565,000) (1,517,000)
Income Tax (Expense)/Benefit 361,000 610,000
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Net Income/(Loss) $(204,000) $(907,000)
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Basic and Diluted Income/(Loss) - Per Share $(.03) $(0.15)
Weighted Average Shares Outstanding
Basic and Diluted 5,872,700 6,060,000
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Nine Months Ended
September 30, September 30,
2003 2002
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Net Revenues $33,411,000 $49,243,000
Cost of Sales 29,286,000 44,524,000
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Gross Profit $4,125,000 $4,719,000
Operating Expenses:
Selling, General, Administrative Expenses
and Other Expenses 5,246,000 6,213,000
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Income/(Loss) before Income Taxes (1,121,000) (1,494,000)
Income Tax (Expense)/Benefit 579,000 598,000
------------ ------------
Net Income/(Loss) $(542,000) $(896,000)
============ ============
Basic and Diluted Income/(Loss) - Per Share $(0.09) $(0.15)
Weighted Average Shares Outstanding
Basic and Diluted 5,872,700 6,060,000
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About Rexhall
Rexhall Industries, Inc. (www.rexhall.com) designs, manufactures and sells various models of Class A motorhomes used for leisure travel and outdoor activities. Rexhall's lines of Class A motorhomes are sold through dealer locations across the U.S., Canada and Europe and include RoseAir(TM), RexAir(R), Aerbus(TM), Vision(TM) and American Clipper(TM).
FORWARD-LOOKING STATEMENTS: Our statements of our intentions or expectations made in this press release are "forward-looking statements" based on assumptions and on facts known to us today. For example, our expectations regarding our new product line and the introduction and sales of our new T-Rex Double & Wide(TM) motorhomes are forward-looking statements. There can be no guarantee that we or our dealers will be able to sell through the inventory of our conventional Class A motorhomes, that a market will exist for our new T-Rex Double & Wide(TM) motorhomes or that our new coaches will adequately respond to market trends or appeal to the mass market. Customers might delay or forgo purchasing our conventional motorhomes, preferring to wait for the release of our T-Rex Double & Wide(TM) product line, because they prefer coaches of our competitors, because they fear increases in fuel prices or interest rates, because of general economic conditions or for other reasons. This would have a negative effect on our sales and could adversely affect our operating results and financial condition. Further, if a market does not develop for our new motorhomes or if we fail to receive sufficient orders for them, our sales may decline and our business and operating results could be seriously harmed. Even if the market for our new T-Rex Double & Wide(TM) motorhomes does develop, it may not grow at an adequate pace. Moreover, we may not be able to predict precisely the time and expense required to overcome unexpected production problems and to ensure production within the time limits we expect, or the reliability and high quality of the coach at an acceptable cost. Increased costs and other difficulties associated with manufacturing these motorhomes such as our inability to obtain critical parts and components from suppliers timely or at all could have a negative impact on our sales during particular periods and on our future gross margins. Our business is seasonal and cyclical. Most of our competitors are substantially larger, and many of our suppliers and dealers have greater economic power, so that the volume and prices of both supplies and sales may be adversely affected by competitive action.
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