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Alfa Leisure Inc. Reports Fiscal 1998 Earnings

15 July 1998

Alfa Leisure Inc. Reports Fiscal 1998 Earnings

    CHINO, Calif.--July 15, 1998--Alfa Leisure Inc. Wednesday announced its financial results for its fiscal year ended April 19, 1998.
    The company's net sales for the 1998 fiscal year were $36,025,591 as compared with net sales of $28,590,285 for the 1997 fiscal year. The company attributed the increase in net sales to a 17% increase in units shipped, price increases for its 1998 models and a change in sales mix to a higher ratio of larger trailers sold in fiscal 1998.
    Net income for fiscal year 1998 was $1,344,629 or $0.44 per share as compared with net income of $329,544 or $0.11 per share for fiscal year 1997. Net income for fiscal year 1998 reflects the utilization of net operating loss carryforwards of $435,957 or $0.14 per share. The increase in net income also reflected a decrease in interest expense attributable to a decrease in borrowed funds and a 0.7% improvement in gross margins resulting primarily from reduction in material cost.
    Johnnie R. Crean, chairman of the board and chief operating officer of the company stated, "We are extremely pleased with the increase in sales in the final quarter of fiscal year 1998."
    The company designs, manufactures and sells recreational vehicles.
    Certain matters discussed herein may include forward-looking statements that are subject to risks and uncertainties including, but not limited to, demand for the company's products and services and the company's growth strategy. For additional information concerning risks and uncertainties related to the company and its operations, refer to the company's filings with the Securities and Exchange Commission.
    For further information, contact Mark Schwartz, vice president-finance at 909/628-5574, Ext. 125.