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, 1997 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: 2,636,030 as of 5/12/97.
<PAGE>
REXHALL INDUSTRIES, INC.
INDEX
PART 1 - FINANCIAL INFORMATION PAGE NUMBER
Item 1.
Financial Statements:
Balance Sheets at March 31, 1997 3
and December 31, 1996
Statements of Operations for the
three months ended March 31,1997
and March 31, 1996 4
Statements of Cash Flows for the
three months ended March 31, 1997
and March 31, 1996 5
Notes to Condensed Financial Statements
as of March 31, 1997 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 10 8
Exhibits - Exhibit 11. Computation supporting
earnings per common and common equivalent share
amounts
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
Computation Supporting Earnings Per Share 10
<PAGE>
(Audited) (Unaudited)
December 31 Mar 31
PART I - FINANCIAL INFORMATION 1996 1997
Item 1. - Financial Statements
REXHALL INDUSTRIES, INC.
CONDENSED BALANCE SHEETS
Assets:
Current Assets $ $
Cash and Cash Equivalents 742,000 46,000
Accounts Receivable 3,208,000 4,971,000
Inventories 13,793,000 12,618,000
Other Current Assets 151,000 181,000
Income Tax Receivable 271,000 ---
Deferred Income Taxes 439,000 439,000
Total Current Assets 18,604,000 18,255,000
Property and Equipment - Net 4,885,000 4,929,000
Other Assets 7,000 7,000
TOTAL ASSETS $23,496,000 $23,191,000
Liabilities and Shareholders' Equity:
Current Liabilities $ $
Accounts Payable 7,591,000 6,785,000
Warranty Allowance 355,000 262,000
Reserve for Self-Insurance 365,000 365,000
Other Accrued Liabilities 748,000 860,000
Current Portion of long-term dept 26,000 26,000
Total Current Liabilities 9,085,000 8,298,000
Deferred Income Tax Liabilities 4,000 ---
Long Term Debt 826,000 818,000
Total Liabilities $9,915,000 $9,116,000
Shareholders' Equity:
Preferred Stock - no par value;
Authorized 1,000,000 shares; no
shares outstanding at Mar 31,
1997 and December 31, 1996
Common Stock - no par value;
Authorized 10,000,000 shares;
Outstanding 2,636,030 shares
atMay 12, 1997 and 2,636,030
shares at December 31, 1996 $ 6,533,000 $ 6,488,000
Retained Earnings 7,048,000 7,587,000
Total Shareholders' Equity 13,581,000 14,075,000
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $23,496,000 $23,191,000
<PAGE>
PART I - FINANCIAL INFORMATION
Item 1. - Financial Statements
REXHALL INDUSTRIES, INC.
CONDENSED STATEMENTS OF OPERATIONS
(UNAUDITED)
Three Months Ended
Mar. 31, 1996 Mar. 31, 1997
Sales 15,071,000 17,665,000
Cost of Sales 12,840,000 15,265,000
Gross Profit 2,231,000 2,400,000
Selling, General, Administrative
Expenses and Other Expenses 1,477,000 1,496,000
Income <Loss> Before Taxes 754,000 904,000
Income Taxes 293,000 366,000
Net Income <Loss> $ 461,000 $ 538,000
Net Income <Loss> Per Common Share $ .17* $ .20
Weighted Average Number of
Common Shares Outstanding 2,736,328 2,725,131
*Originally reported as $.18 per share of 2,606,027 shares outstanding,
however, considering the 5% stock dividend paid on 4/17/96, adjusted
earnings to $.17 per share.
<PAGE>
PART I - FINANCIAL INFORMATION
Item 1. - Financial Statements
REXHALL INDUSTRIES, INC.
CONDENSED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 1996 AND 1997
1996 1997
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income(loss) $ 461,000 $ 538,000
Adjustments to reconcile net income to net cash
provided(used)by operating activities:
Depreciation and amortization 100,000 50,000
(Increase)Decrease in accounts receivable 561,000 (1,763,000)
(Increase)Decrease in inventories 682,000 1,175,000
(Increase)Decrease in other current assets 2,000 (30,000)
Increase(Decrease) in accounts payable (568,000) (806,000)
Increase(Decrease) in reserve for self insurance 132,000 ---
Provision for income taxes --- (4,000)
(Decrease) in other current liab. inc. warranty (55,000) (93,000)
Increase in non-current accrued liabilities -0- 112,000
Income tax receivable -0- 271,000
Net cash provided(Used) by operating activities 1,315,000 (550,000)
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to property and equipment (2,533,000) (93,000)
(Increase) in other assets -0- -0-
Disposition of property and equipment -0- -0-
Net cash(used) in investing activities (2,533,000) (93,000)
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings of long-term debt 876,000 -0-
Repayment of long-term debt 6,000 (8,000)
Repurchase of stock -0- (45,000)
Net cash provided in financing activities 870,000 (53,000)
NET INCREASE(DECREASE) IN CASH AND CASH
EQUIVALENTS (852,000) (696,000)
BEGINNING CASH AND CASH EQUIVALENTS 1,998,000 742,000
ENDING CASH AND CASH EQUIVALENTS $ 1,146,000 $ 46,000
<PAGE>
PART I - FINANCIAL INFORMATION
Item 1.
REXHALL INDUSTRIES, INC.
Notes to the Condensed Financial Statements
March 31, 1997
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, 1996.
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, 1997 December 31,1996
Raw Material $ 7,684,000 $ 6,608,000
Work in Process 2,113,000 2,753,000
Finished Motorhomes 2,821,000 4,432,000
TOTAL $12,618,000 $13,793,000
<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, 1997 and
For the Three Months ended March 31, 1996
Sales - 1997 Compared with 1996
Sales for the quarter ended March 31, 1997, totalled $17,665,000 as
compared to $15,071,000 in 1996. The units sold in 1997 were 310 vs. 274 in
1996. Management believes that the increase in Sales from 1996 is primarily
due to an improving economy, with an expanded dealer network, and the
company's decision to hold its prices despite cost increases associated with
product improvements.
Cost of Sales - 1997 compared with 1996
The Cost of Sales as a percentage of sales for the 1st quarter of 1997 was
86.4% vs 85.2% in the 1st quarter of 1996. The cost of sales percentage for
1997 increased due to cost absorbtion of product improvements.
Gross Profit - 1997 compared with 1996
Gross Profit for the 1st quarter of 1997 decreased to 13.6% from 14.8% for
the 1st quarter of 1996. This decrease was due to the cost increases
discussed in Cost of Sales above.
Selling, General Administrative and Other Expenses-1997 compared with 1996
Selling, General Administrative, and Other Expenses increased in the 1st
quarter of 1997 by $18,000. Selling, General Administrative and Other
Expenses were 8.5% of Sales in 1997 as compared to 9.8% in the 1st quarter
of 1996.
<PAGE>
PART I - FINANCIAL INFORMATION
Item 2. - Management Discussion and Analysis or Plan of Operations
Income before taxes - 1997 compared with 1996
The increase in income before taxes in the first quarter of 1997 was due to
higher costs as discussed in sections Sales, Cost of Sales and Selling,
General Administrative and Other Expense above.
Financial Condition, Capital Resources and Liquidity
At March 31, 1997, working capital was $9,957,000 as compared to working
capital of $8,596,000 at March 31, 1996.
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: May 15, 1997 /S/William J. Rex
William J. Rex
Chairman, President and
Chief Executive Officer
Date: May 15, 1997 /S/Phillip J. Parks
Phillip J. Parks
Controller
<PAGE>
Exhibit 11.
Computation Supporting Earnings per Common Share
First Quarter
1996 1997
Net Income $ 461,000 $ 538,000
Net Income per Common Share .17* .20
Weighted Average Number of Common 2,736,328 2,725,131
Shares Outstanding
*Originally reported as $.18 per share of 2,606,027 shares outstanding,
however, considering the 5% stock dividend paid on 4/17/96, adjusted
earnings to $.17 per share.
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> MAR-31-1997
<CASH> 46,000
<SECURITIES> 0
<RECEIVABLES> 4,971,000
<ALLOWANCES> 0
<INVENTORY> 12,618,000
<CURRENT-ASSETS> 18,255,000
<PP&E> 4,929,000
<DEPRECIATION> 0
<TOTAL-ASSETS> 23,191,000
<CURRENT-LIABILITIES> 8,298,000
<BONDS> 0
0
0
<COMMON> 6,488,000
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 23,191,000
<SALES> 17,665,000
<TOTAL-REVENUES> 17,665,000
<CGS> 15,265,000
<TOTAL-COSTS> 15,265,000
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 905,000
<INCOME-TAX> 366,000
<INCOME-CONTINUING> 538,000
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 538,000
<EPS-PRIMARY> .20
<EPS-DILUTED> 0
</TABLE>
