SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
- --------------------------------------------------------------
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported)
August 14, 2003
Rexhall Industries, Inc.
(Exact name of registrant as specified in charter)
California 0-10067 95-4135907
(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification No.)
incorporation)
46147 7th Street West, Lancaster California 93534
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code:
(661) 726-0565
Item 1. Changes in Control of Registrant.
Not applicable.
Item 2. Acquisition or Disposition of Assets.
None.
Item 3. Bankruptcy or Receivership.
Not applicable.
Item 4. Changes in Registrant's Certifying Accountant.
Not applicable
Item 5. Other Events.
Not applicable.
Item 6. Resignations of Registrant's Directors.
Not applicable.
Item 7. Financial Statements, Pro Forma Financial Information
and Exhibits.
Not applicable.
Item 8. Change in Fiscal Year
Not applicable.
Item 9. Regulation FD Disclosure (The information under this Item
9 is being furnished pursuant Item 12 of Form 8-K.)
On August 14, 2003, registrant made an earnings release, the text
of which is set forth in Exhibit 99.1 attached hereto and is
being furnished pursuant to Item 12 of Form 8-K.
The information included in this Item 9, as well as Exhibit 99.1
shall not be deemed "filed" for purposes of Section 18 of the
Securities Exchange Act of 1934, nor shall it be deemed
incorporated by reference in any filing under the Securities Act
of 1933.
Pursuant to the requirements of the Securities Exchange
Act of 1934, the registrant has duly caused this report to be
signed on its behalf by the undersigned thereunto duly
authorized.
Rexhall Industries, Inc.
(Registrant)
Date: August 20, 2003 By: _/S/William J. Rex__________________
William J. Rex,
President and Chief Executive Officer
Exhibit 99.1
FOR IMMEDIATE RELEASE
Contact: William Rex, Pres & CEO
or Investor Relations at
Rexhall Industries, Inc. (661) 726-0565
REXHALL INDUSTRIES ANNOUNCES SECOND QUARTER RESULTS
LANCASTER, California, August 14, 2003 - Rexhall Industries, Inc.
(NASDAQ: REXL) today reported its financial results for its
second quarter ended June 30, 2003. Net revenues for the second
quarter decreased 49% to $9,642,000 from $18,964,000 for the same
period in 2002. Gross profit for the second quarter was
$1,259,000 versus $2,354,000 last year, which is a 46% decrease.
Net loss for the quarter was $282,000, or $0.05 per diluted
share, compared to a net income of $264,000 or $0.04 per diluted
share for the second quarter last year.
William J. Rex, President, Chairman and CEO stated, "Sales
dropped below industry levels as a result of Rexhall's strategy
to identify the current market for recreational vehicles. In an
effort to satisfy dealers on an individual basis, Rexhall created
a niche market rather than focusing on what it now believes the
vast majority of RV customers want. Though we are discouraged
with our performance and another losing quarter, we believe there
is a light at the end of the tunnel. We have a strategic plan to
work through this. First we have converted approximately $2.5
million from cash to finished goods inventory, in an effort to
flush through all current chassis and raw material not specific
to our new T-Rex designed motorhomes. Our goal is to sell
through all or most of our standard inventory in the 3rd quarter,
which should, if we are successful, improve our cash position,
give our dealers time to sell through their inventory, and allow
us to focus on our new T-Rex Double & Wide(tm) in the 4th quarter.
Though our dealers will still be able to order standard
motorhomes, the initial excitement generated by our new design,
both from customers and dealers, leads us to believe any customer
looking to buy a motorhome with two or more slide rooms will
prefer our new T-Rex Double & Wide(tm) offered from 26 foot gas
Vision and American Clipper up to 40 foot diesels in RoseAir,
along with both Aerbus and RexAir from 30 foot gas to 38 foot
diesels."
REXHALL INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
Three Months Ended
June 30, 2003 June 30, 2002
-------------- --------------
Net Revenues $ 9,642,000 $18,964,000
Cost of Sales 8,383,000 16,610,000
------------ ------------
Gross Profit 1,259,000 2,354,000
Operating Expenses:
Selling, General, Administrative
Expenses and Other Expenses 1,725,000 1,913,000
------------ ------------
Income before Income Taxes (466,000) 441,000
Income Tax Expense/(Benefit) (184,000) 177,000
------------ ------------
Net Income/(Loss) ($ 282,000) $ 264,000
============ ============
Basic and Diluted Income/(Loss) --
Per Share ($ .05) $ .04
============ ============
Weighted Average Shares Outstanding
Basic and Diluted 5,872,700 6,115,000
============ ============
REXHALL INDUSTRIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
ASSETS June 30, 2003 June 30, 2002
CURRENT ASSETS
Cash $ 458,000 $ 5,757,000
Accounts Receivables, net 2,654,000 2,251,000
Income Tax Receivable 536,000 360,000
Inventories 17,599,000 15,049,000
Deferred Income Taxes 933,000 1,003,000
Other Current Assets 154,000 139,000
Current Assets of Discontinued
Operations ----- 182,000
----------- -----------
TOTAL CURRENT ASSETS 22,334,000 24,741,000
Property and Equipment at Cost Net
of Accumulated Depreciation 5,901,000 5,021,000
Property Held for Sale --- ---
Other Assets 152,000 152,000
Non-Current Assets of Discontinued
Operations ----- 37,000
----------- -----------
TOTAL ASSETS $28,387,000 $29,951,000
=========== ===========
LIABILITIES & STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts Payable $ 2,779,000 $ 1,622,000
Chassis Vendor Line of Credit 1,685,000 3,381,000
Notes Payable and Current Portion
of Long-Term Debt 62,000 36,000
Accrued Warranty 927,000 991,000
Accrued Legal 982,000 1,250,000
Accrued Dealer Incentives 569,000 638,000
Other Accrued Liabilities 1,435,000 1,750,000
Accrued Compensation and Benefits 490,000 472,000
Current Liabilities of Discontinued
Operations ----- 20,000
----------- -----------
TOTAL CURRENT LIABILITIES 8,929,000 10,160,000
Long-Term Debt, less Current Portion 965,000 634,000
----------- -----------
TOTAL LIABILITIES 9,894,000 10,794,000
----------- -----------
STOCKHOLDERS' EQUITY
Preferred Stock -- no par value,
Authorized, 1,000,000 shares;
No shares outstanding at June 30,
2003 and December 31, 2002 ----- -----
Common Stock -- no par value,
Authorized, 10,000,000 shares;
issued and outstanding
5,872,700 at June 30, 2003
and 6,038,000 at December 31, 2002 5,580,000 5,906,000
Loan Receivable from Exercise of Options ----- -----
Retained Earnings 12,913,000 13,251,000
----------- -----------
TOTAL STOCKHOLDERS' EQUITY 18,493,000 19,157,000
----------- -----------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $28,387,000 $29,951,000
=========== ===========
BOOK VALUE PER SHARE $ 3.15 $ 3.17
=========== ===========
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 are "forward-looking statements" based on
assumptions and on facts known to us today. For example, our
expectations regarding our strategy to focus on conventional
motor homes for the third quarter and our new product line and
the introduction and sales of our new T-Rex Double & Wide(tm)
motorhomes during the fourth quarter are forward-looking
statements. There can be no guarantee that we or our dealers will
be able to sell through the inventory of 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 of our conventional motorhomes in the
third quarter or at all 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 third
quarter sales and could adversely effect 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 further 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.