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Rexhall Industries Announces 3rd Quarter EPS $0.16 vs. $0.40

14 November 2000

Rexhall Industries Announces 3rd Quarter EPS $0.16 vs. $0.40

    LANCASTER, Calif.--Nov. 13, 2000--Rexhall Industries Inc. today announced lower sales and earnings for its third quarter ended Sept. 30, 2000, compared with the third quarter of 1999.
    "As previously stated, higher fuel prices, interest rates and the bankruptcy of our largest dealer lead to the reduced operating performance thus far this year. Though earnings improved slightly over the second quarter, $0.16 per share is far behind last year's $0.40," stated William J. Rex, president & CEO.
    "With sales for the third quarter down over 35 percent from the third quarter of 1999, we are proud of the fact that we made $0.16 per share on only $12,646,000 in sales. Rexhall will continue to try and hold costs down as we look forward to an improved fourth quarter. With the Arizona market coming along and our national trade show in Louisville, Ky., at the end of November, Rexhall hopes to gain back by year-end a large portion of what we lost. Rexhall continues to remain optimistic for the future," concluded Rex.
    

                       Rexhall Industries Inc.
                 Statements of Income ($000 omitted)

                                            Three Months Ended:
                                     Sept. 30, 2000    Sept. 30, 1999

Net Revenues                           $  12,646          $ 20,590
Cost of Sales                             10,047            16,574
Gross Profit                               2,599             4,016
Selling, General and Administrative
 Expenses and Other Income and Expenses    1,716             1,956
Earnings Before Income Taxes                 883             2,060
Income Tax Expense                           385               809
Net Earnings                           $     498          $  1,251
Basic and Diluted Earnings 
 Per Share (a)                         $    0.16          $   0.40
Weighted Average Shares 
 Outstanding - Basic and Diluted (a)       3,144             3,160
                                                   
                                             Nine Months Ended:
Net Revenue                            $  48,400          $ 63,760
Cost of Sales                             40,466            51,939
Gross Profit                               7,934            11,821
Selling, General and Administrative
 Expenses and Other Income and Expenses    4,741             5,572
Earnings Before Income Taxes               3,193             6,249
Income Tax Expense                         1,371             2,491
Net Earnings                           $   1,822          $  3,758
Basic and Diluted Earnings 
 Per Share (a)                         $    0.58          $   1.19
Weighted Average Shares 
 Outstanding - Basic and Diluted (a)       3,144             3,160

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