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Rexhall Industries Announces 2nd Quarter EPS $0.11 vs. $0.39

14 August 2000

Rexhall Industries Announces 2nd Quarter EPS $0.11 vs. $0.39

    LANCASTER, Calif. - Rexhall Industries, Inc. today announced lower sales and earnings for its second quarter ended June 30, 2000 compared to the second quarter of 1999 and the first quarter of 2000.

    "Higher fuel prices, interest rates and the bankruptcy of one of our key dealers has principally led to the reduced operating performance during 2000 compared to the comparable periods in 1999. The current economic environment appears as if it will continue into the next few quarters and it is unknown when, if at all, the Company will be able to replace the lost revenues from its key dealer in Arizona which declared bankruptcy. Though sales and profits are down, Rexhall's sprits remain high. The demographics for our industry have not changed. Many of the factual and long-term statistics of our industry, which lead analysts and stockbrokers to be so high on RV stocks, have not changed. Our outlook on the future here at Rexhall has not changed," stated William J. Rex, President & CEO.

    Rexhall Industries, Inc. 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.

                                               Three Months Ended
                                                    June 30,
                                               2000         1999

Net Revenues                                $ 15,090     $ 20,937
Cost of Sales                                 13,058       17,271
Gross Profit                                   2,032        3,666
Selling, General and Administrative
Expenses and Other Income and Expenses         1,377        1,572
Earnings Before Income Taxes                     655        2,094
Income Tax Expense                               295          846
Net Earnings                                $    360     $  1,248
Basic and Diluted Earnings Per Share(a)     $   0.11     $   0.39

                                                Six Months Ended

Net Revenue                                 $ 35,754     $ 43,170
Cost of Sales                                 30,419       35,365
Gross Profit                                   5,335        7,805
Selling, General and Administrative
Expenses and Other Income and Expenses         3,025        3,616
Earnings Before Income Taxes                   2,310        4,189
Income Tax Expense                               986        1,682
Net Earnings                                $  1,324     $  2,507
Basic and Diluted Earnings Per Share(a)     $   0.42     $   0.79

(a) Retroactively adjusted to give effect of 5% stock dividend of
150,488 shares in 1999.