Rexhall Industries Announces Record Results
17 March 2000
Rexhall Industries Announces Record Results
LANCASTER, Cal., March 17 Driven by continuing strong
demand in the recreational vehicle market, Rexhall Industries, Inc.
posted record sales and earnings for the year ending
December 31, 1999.
The Lancaster, Calif. manufacturer of Class A motorhomes said net earnings
grew 56 percent to $5.3 million, or $1.68 per diluted share in 1999, compared
with net earnings of $3.4 million, or $1.08 per diluted share, in 1998.
Rexhall reported record net sales of $84.7 million in 1999, up 17.2 percent
over 1998 net sales of $72.3 million. The Company recorded a non-recurring,
pre-tax gain in 1999 of $573,000 for the sale of its former manufacturing
plant in Indiana. In addition, it posted a $600,000 reversal in legal
accruals.
Exclusive of the gain, income before taxes grew 41.3 percent, fueled by
Rexhall's sales growth and better cost management related to operating
expenses.
Rexhall attributed its record sales performance to a strong recreational
vehicle market coupled with increased consumer demand for its products,
especially its slideout motorhome design. The Company sold 1,249 Class A
motorhomes in 1999, up 11 percent over 1998. This higher sales volume was
driven by increased sales of higher margin products which helped offset lower
service revenues.
"We are exceptionally pleased with our break-through performance in 1999,"
said William J. Rex, Rexhall chairman, president and CEO. "Our operating
results confirm the RV market's strength and the continued penetration of our
products in the premium Class A motorhome market. We look forward to
maintaining our momentum in the year 2000 and building on the market share
gains we made in 1999."
Baby Boomers continue to drive record demand for recreational vehicles,
making 1999 the best year for sales in the past two decades. Class A
motorhomes, lead by the increasingly popular rear-engine diesel products,
continue to be among the fastest growing across all RV categories. Rexhall
introduced a new Class A motorhome series at the Recreational Vehicle Industry
Association Show in Louisville, Ky.
The Company said it will focus more effort in 2000 on rear-engine diesel
products and will begin producing its own line of diesel-pusher RV chassis out
of a new plant that will be built adjacent to its current headquarters in
Lancaster, Calif.
"We are committed to investing in capabilities and products to spur
top-line and market share growth for Rexhall," Rex concluded.
Rexhall Industries, Inc. (http://www.rexhall.com) designs, manufactures and sells
various models of Class A motorhomes used for leisure travel and outdoor
activities. Rexhall's six lines of Class A motorhomes, sold through more than
100 dealer locations across the U.S., Canada and Europe, include Aerbus,
RexAir, Vision, American Clipper, Anthem and RoseAir. Rexhall was recently
ranked one of America's 100 Fastest Growing Companies by Individual Investor
magazine.
FORWARD-LOOKING STATEMENTS: RISK FACTORS.
Our statements of our intentions or expectations are "forward-looking
statements", based on assumptions and on facts known to us today. There are
risks that actual developments will not be as favorable as our expectations,
both because of risks existing today and because of new factors arising. We
do not intend to update this report. Rexhall's business is seasonal. The
recreational vehicle industry has in the past enjoyed favorable recreational
vehicle industry sales when we have low interest rates, low unemployment, and
ready availability of motor fuel. We see continual speculation that interest
rates will rise, and recent reports of decreased consumer confidence may
reduce sales. Many of Rexhall's competitors are substantially larger, and
many of its suppliers also have greater economic power, so that the volume and
prices of both supplies and sales may be adversely affected. Management
intends to remain aware of these factors and react to them, but cannot predict
their timing or significance.
REXHALL INDUSTRIES, INC.
Condensed Statements of Earnings
(In thousands, except per share data)
12 Months Ended
December 31,
1999 1998
Sales $84,739 $72,254
Cost of Sales 69,659 59,314
Gross Profit 15,080 12,940
Total Expenses and
Other Income 6,221 7,076
Income Before Taxes 8,859 5,864
Income Taxes 3,557 2,474
Net Earnings $5,302 $3,390
Basic Earnings Per Share $1.68 $1.09
Diluted Earnings Per Share $1.68 $1.08
Weighted Average
Shares Outstanding-Basic 3,161 3,118
Weighted Average
Shares Outstanding-Diluted 3,161 3,140