SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
Quarterly Report Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
For Quarter Ended March 31, 1996 Commission file number: 0-17824
REXHALL INDUSTRIES, INC.
(Exact name of Registrant as specified in its charter)
California 95-4135907
(State of Incorporation) (IRS Employer Identification No.)
46147 7th Street West, Lancaster California 93534
(Address of principal executive offices) (Zip Code)
(805) 726-0565
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days. Yes x No _____.
Applicable only to Corporate Issuers
State the number of shares outstanding of each of the issuer's classes of
common equity, as of the latest practicable date: 2,626,030 as of 5/1/96.
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REXHALL INDUSTRIES, INC.
INDEX
PART 1 - FINANCIAL INFORMATION PAGE NUMBER
Item 1.
Financial Statements:
Balance Sheets at March 31, 1996 3
and December 31, 1995
Statements of Operations for the
three months ended March 31,1996
and March 31, 1995 4
Statements of Cash Flows for the
three months ended March 31, 1996
and March 31, 1995 5
Notes to Condensed Financial Statements
as of March 31, 1996 6
Item 2.
Management's Discussion and Analysis of
Financial Condition and Results of Operations 7, 8
PART II - OTHER INFORMATION
Item 6.
Exhibits and reports on Form 8-K 8
Reports on Form 8-K. No reports on Form 8-K have
been filed during the quarter for which this report
is filed.
Signatures 9
Exhibits - Exhibit 11 Computation supporting 10
earnings per common and common equivalent share
amounts
<PAGE>
(Audited) (Unaudited)
December 31 Mar 31
PART I - FINANCIAL INFORMATION 1995 1996
Item 1. - Financial Statements
REXHALL INDUSTRIES, INC.
CONDENSED BALANCE SHEETS
Assets:
Current Assets:
Cash and Short Term Investments $1,998,000 $1,146,000
Accounts Receivable 5,063,000 5,177,000
Inventories 8,651,000 10,245,000
Other Current Assets 163,000 17,000
Deferred Income Taxes 286,000 279,000
Total Current Assets 16,161,000 16,864,000
Property and Equipment - Net 3,807,000 4,081,000
Other Assets 7,000 7,000
TOTAL ASSETS $19,975,000 $20,952,000
Liabilities and Shareholders' Equity:
Current Liabilities:
Accounts Payable $5,747,000 $5,542,000
Warranty Allowance 311,000 311,000
Reserve for Self-Insurance 365,000 335,000
Other Accrued Liabilities 469,000 1,853,000
Income Taxes Payable -0- 227,000
Total Current Liabilities 6,892,000 8,268,000
Deferred Income Tax Liabilities 6,000 -0-
Long Term Debt 852,000 -0-
Total Liabilities $ 7,750,000 $ 8,268,000
Shareholders' Equity:
Preferred Stock - no par value;
Authorized 1,000,000 shares; no
shares outstanding at Mar 31,
1996 and December 31, 1995
Common Stock - no par value;
Authorized 10,000,000 shares;
Outstanding 2,626,030 shares
at May 1, 1996 and 2,501,000
shares at December 31, 1995 $ 6,461,000 6,461,000
Retained Earnings 5,764,000 6,223,000
Total Shareholders' Equity 12,225,000 12,684,000
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $19,975,000 $20,952,000
<PAGE>
PART I - FINANCIAL INFORMATION
Item 1. - Financial Statements
REXHALL INDUSTRIES, INC.
CONDENSED STATEMENTS OF OPERATIONS
(UNAUDITED)
Three Months Ended
Mar. 31, 95 Mar. 31, 96
Sales $ 15,281,000 15,071,000
Cost of Sales 13,109,000 12,840,000
Gross Profit 2,172,000 2,231,000
Selling, General, Administrative
Expenses and Other Expenses 1,410,000 1,477,000
Income Before Taxes 762,000 754,000
Income Taxes 305,000 293,000
Net Income $ 457,000 $ 461,000
Net Income Per Common Share $ .18 $ .18
Weighted Average Number of
Common Shares Outstanding $2,528,000 $2,606,027
Subsequent Event: Considering the 5% stock dividend paid on 4/17/96, the
following reflects Net Income per Common Share
Net Income per Common Share $ .17 $ .17
Weighted Average Number of Common 2,654,400 2,736,328
Shares Outstanding
<PAGE>
PART I - FINANCIAL INFORMATION
Item 1. - Financial Statements
REXHALL INDUSTRIES, INC.
CONDENSED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 1995 AND 1996
1995 1996
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income $ 458,000 $ 461,000
Adjustments to reconcile net income to net cash
provided(used)by operating activities:
Depreciation and amortization 29,000 100,000
(Increase)Decrease in accounts receivable (424,000) 561,000
(Increase)Decrease in inventories (2,143,000) 682,000
(Increase)Decrease in other current asset
2,000 Increase(Decrease) in accounts payable 1,323,000 (568,000)
Increase(Decrease) in reserve for self insurance 31,000 132,000
(Decrease) in other current liab. inc. warranty 568,000 (55,000)
Increase in non-current accrued liabilities -0- -0-
Net cash provided(Used) by operating activities (158,000) 1,315,000
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to property and equipment (145,000) (2,533,000)
(Increase) in other assets -0- -0-
Disposition of property and equipment -0- -0-
Net cash(used) in investing activities (145,000) (2,533,000)
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings of long-term debt -0- 876,000
Repayment of long-term debt -0- 6,000
Net cash provided in financing activities (28,000) 870,000
NET INCREASE(DECREASE) IN CASH AND CASH
EQUIVALENTS (321,000) (852,000)
BEGINNING CASH AND CASH EQUIVALENTS 2,518,000 1,998,000
ENDING CASH AND CASH EQUIVALENTS $ 2,197,000 $ 1,146,000
<PAGE>
PART I - FINANCIAL INFORMATION
Item 1.
REXHALL INDUSTRIES, INC.
Notes to the Condensed Financial Statements
March 31, 1996
1. The accompanying condensed Financial Statements have been prepared in
accordance with generally accepted accounting principles for interim financial
information and with the instructions to Form 10-Q and Rule Regulation S-B.
Accordingly, they do not include all of the information and footnotes required
by generally accepted accounting principles for complete financial statements.
Prior period financial statements have been restated to conform with current
period financial statement presentation. In the opinion of management, all
adjustments (consisting only of normal recurring adjustments) considered
necessary for a fair presentation have been included. For further information
refer to the Financial Statements and footnotes included in the Registrant's
Annual Report on Form 10-K for year ended December 31, 1995.
The Results of Operations for any interim period are not necessarily
indicative of the results to be expected for the full year.
2. Detail of Inventory March 31, 1996 December 31,1995
Raw Material $ 5,949,000 $ 4,412,000
Work in Process 1,870,000 1,459,000
Finished Motorhomes 2,426,000 2,780,000
TOTAL $ 10,245,000 $ 8,651,000
3. Cash in Bank $ 1,146,000
Short Term Investments
TOTAL $ 11,391,000
<PAGE>
PART I - FINANCIAL INFORMATION
Item 2. - Management Discussion and Analysis of Financial Condition and
Results of Operations
Results of Operations For the Three Months ended March 31, 1996
and For the Three Months ended March 31, 1995
Sales - 1996 Compared with 1995
Sales for the quarter ended March 31, 1996, totalled $15,071,000 as compared
to $15,281,000 in 1995. The units sold in 1996 were 274 vs. 294 in 1995.
Management believes that sales would have been greater for the first quarter
of 1996. However, the California plant relocation in January 1996 caused
two weeks of non-production, thereby decreasing availability of product.
Cost of Sales - 1996 compared with 1995
The Cost of Sales as a percentage of sales for the first quarter of 1996 was
85.2% vs 85.8% in the first Quarter of 1995. The cost of sales percentage
for 1996 stayed effectively the same for the like periods.
Gross Profit - 1996 compared with 1995
Gross Profit for the first quarter of 1996 increased to 14.8% from 14.2% for
the first quarter of 1995. This increase was due mainly to the cost
efficiency of the new California plant.
Selling, General Administrative and Other Expenses - 1996 compared with 1995
Selling, General Administrative, and Other Expenses increased in the first
quarter of 1996 by $67,000. This increase was caused mainly by incentives
given to dealers to stimulate sales in a down market and due to
miscellaneous expenses. Selling, General Administrative and Other Expenses
were 9.8% of Sales in 1996 as compared to 9.2% in the first quarter of 1995.
<PAGE>
PART I - FINANCIAL INFORMATION
Item 2. - Management Discussion and Analysis or Plan of Operations
Income before taxes - 1996 compared with 1995
The decrease in income before taxes in the first quarter of 1996 was due to
higher costs as discussed in sections Cost of Sales and Selling, General
Administrative and Other Expense above.
Financial Condition, Capital Resources and Liquidity
At March 31, 1996, working capital was $8,596,000 as compared to working
capital of $9,152,000 at March 31, 1995.
At present, the Company has a $2,000,000 line of credit with Wells Fargo
Bank which can be used for working capital purposes. At March 31, 1996,
the company had used $220,000 under this line of credit to obtain a Letter
of Credit permitting the company to remain self-insured for Workers'
Compensation.
Management believes that internally generated funds, cash on hand, and
borrowing available under its line of credit will be sufficient for the
Company's cash needs for the next twelve months.
PART II - OTHER INFORMATION
Item 6. - Exhibits and Reports on Form 8-K
Exhibits
a) Exhibit 11. Computation supporting earnings per common and common
equivalent share amounts.
b) Reports on Form 8-K. No reports on Form 8-K have been filed during the
quarter for which this report is filed.
<PAGE>
REXHALL INDUSTRIES, INC.
SIGNATURES
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. by
(Registrant)
Date: June 18, 1996 /S/William J. Rex
(Amends May 15, 1996 filing) William J. Rex
Chairman, President and
Chief Executive Officer
Date: June 18, 1996 /S/Carmen Ignacio
(Amends May 15, 1996 filing) Carmen Ignacio
Controller
<PAGE>
Exhibit 11.
Computation Supporting Earnings per Common Share
First Quarter
1995 1996
Net Income $ 457,000 $ 461,000
Weighted Average Number of Common 2,528,000 2,606,027
Shares Outstanding
Earnings per Share $ .18 $ .18
Subsequent Event: Considering the 5% stock dividend paid on 4/17/96, the
following reflects Net Income per Common Share
First Quarter
1995 1996
Net Income $ 457,000 $ 461,000
Net Income per Common Share $ .17 $ .17
Weighted Average Number of Common 2,654,400 2,736,328
Shares Outstanding
