-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, LsG8IZLitpmuoV7mQmP0vHhYGizuUlGFlljdvjj5E+M5cISBofplabvowK+yDGKr gnW/VJ+ALp2CG4IMEiGjlQ== 0000850476-96-000015.txt : 19960816 0000850476-96-000015.hdr.sgml : 19960816 ACCESSION NUMBER: 0000850476-96-000015 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960630 FILED AS OF DATE: 19960815 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: REXHALL INDUSTRIES INC CENTRAL INDEX KEY: 0000850476 STANDARD INDUSTRIAL CLASSIFICATION: MOTOR HOMES [3716] IRS NUMBER: 954135907 STATE OF INCORPORATION: CA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-17824 FILM NUMBER: 96616017 BUSINESS ADDRESS: STREET 1: 46147 7TH STREET WEST CITY: LANCASTER STATE: CA ZIP: 93534 BUSINESS PHONE: 8057260565 MAIL ADDRESS: STREET 1: 46147 7TH STREET WEST CITY: LANCASTER STATE: CA ZIP: 93534 10-Q 1 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 June 30, 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: 2,636,030 as of 8/1/1996. REXHALL INDUSTRIES, INC. INDEX PART 1 - FINANCIAL INFORMATION PAGE NUMBER Item 1. Financial Statements: Condensed Balance Sheets at June 30, 1996 3 and December 31, 1995 Condensed Statements of Operations for the three and six months ended June 30,1996 and June 30, 1995 4, 5 Condensed Statements of Cash Flows (unaudited) for the six months ended June 30, 1996 and June 30, 1995 6 Notes to Condensed Financial Statements as of June 30, 1996 7 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 8, 9 PART II - OTHER INFORMATION Item 6. Exhibits and reports on Form 8-K 9 Reports on Form 8-K. No reports on Form 8-K have been filed during the quarter for which this report is filed. Signatures 10 Exhibits Exhibit 11 - Computation supporting 11 earnings per common and common equivalent share amounts Exhibit 27 - Financial Data Sheet Submitted via Edgar Electronic Filing System 12 (Audited) (Unaudited) December 31 June 30 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 $ 624,000 Accounts Receivable 5,063,000 5,565,000 Inventories 8,651,000 12,688,000 Other Current Assets 163,000 36,000 Deferred Income Taxes 286,000 279,000 Total Current Assets 16,161,000 19,192,000 Property and Equipment - Net 3,807,000 4,197,000 Other Assets 7,000 7,000 TOTAL ASSETS $19,975,000 $23,396,000 Liabilities and Shareholders' Equity: Current Liabilities Accounts Payable $5,747,000 $ 7,720,000 Warranty Allowance 311,000 206,000 Reserve for Self-Insurance 365,000 380,000 Other Accrued Liabilities 445,000 667,000 Income Taxes Payable -0- 14,000 Current Portion of Long Term Debt 24,000 24,000 Total Current Liabilities 6,892,000 9,011,000 Deferred Income Tax Liabilities 6,000 -0- Long Term Debt 852,000 840,000 Total Liabilities $ 7,750,000 $ 9,851,000 Shareholders' Equity: Preferred Stock - no par value; Authorized 1,000,000 shares; no shares outstanding at June 30, 1996 and December 31, 1995 Common Stock - no par value; Authorized 10,000,000 shares; Outstanding 2,636,030 shares at 6/30/1996 and 2,501,000 shares at December 31, 1995 $ 6,461,000 6,493,000 Retained Earnings 5,764,000 7,052,000 Total Shareholders' Equity 12,225,000 13,545,000 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $19,975,000 $ 23,396,000 PART I - FINANCIAL INFORMATION Item 1. - Financial Statements REXHALL INDUSTRIES, INC. CONDENSED STATEMENTS OF OPERATIONS (UNAUDITED) Three Months Ended June 30, 1995 June 30, 1996 Sales $ 15,277,000 $ 18,780,000 Cost of Sales 12,876,000 15,543,000 Gross Profit 2,401,000 3,237,000 Selling, General, Administrative Expenses and Other Expenses 1,354,000 1,843,000 Income Before Taxes 1,047,000 1,394,000 Income Taxes 419,000 566,000 Net Income $ 628,000 $ 828,000 Net Income Per Common Share $ .24(1) $ .31 Weighted Average Number of Common Shares Outstanding (primary) $ 2,626,050(2) $ 2,712,918 (1) Net income per common share originally reported as .25. However, considering the 5% stock dividend paid on 4/17/96, the figure has been adjusted to reflect the dividend in order to equitably compare like quarters. (2) Weighted average number of common shares outstanding was originally reported as 2,501,000. Considering the 4/17/96 5% dividend, the number indicated above reflects such dividend. PART I - FINANCIAL INFORMATION Item 1. - Financial Statements REXHALL INDUSTRIES, INC. CONDENSED STATEMENTS OF OPERATIONS (UNAUDITED) Six Months Ended June 30, 1995 June 30, 1996 Sales $ 30,558,000 $ 33,851,000 Cost of Sales 25,985,000 28,383,000 Gross Profit 4,573,000 5,468,000 Selling, General, Administrative Expenses and Other Expenses 2,764,000 3,320,000 Income Before Taxes 1,809,000 2,148,000 Income Taxes 724,000 859,000 Net Income $ 1,085,000 $ 1,289,000 Net Income Per Common Share $ .41(1) $ .48 Weighted Average Number of Common Shares Outstanding $ 2,626,050(2) $ 2,712,918 (Primary) (1) Net income per common share originally reported as .43. However, considering the 5% stock dividend paid on 4/17/96, the figure has been adjusted to reflect the dividend in order to equitably compare like quarters. (2) Weighted average number of common shares outstanding was originally reported as 2,501,000. Considering the 4/17/96 5% dividend, the number indicated above reflects such dividend. PART I - FINANCIAL INFORMATION Item 1. - Financial Statements REXHALL INDUSTRIES, INC. CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) FOR THE SIX MONTHS ENDED JUNE 30, 1995 AND 1996 1995 1996 CASH FLOWS FROM OPERATING ACTIVITIES: Net Income $ 1,085,000 $ 1,289,000 Adjustments to reconcile net income to net cash provided(used by) operating activities: Depreciation and amortization 59,000 102,000 Decrease(Increase) in accounts receivable 339,000 (502,000) Increase in inventories (4,256,000) (4,037,000) Decrease in other current assets 63,000 134,000 Increase in accounts payable 1,489,000 1,973,000 Increase in reserve for self insurance 78,000 15,000 Decrease(Increase)in other current liab. inc. warranty 355,000 (106,000) Increase in non-current accrued liabilities -0- 242,000 Net cash used by operating activities (788,000) (890,000) CASH FLOWS FROM INVESTING ACTIVITIES: Additions to property and equipment (376,000) (504,000) Net cash used in investing activities (376,000) (504,000) CASH FLOWS FROM FINANCING ACTIVITIES: (Repurchase) Issuance of Common Stock (141,000) 32,000 Repayment of long-term debt -0- (12,000) Net cash(used in) provided by financing activities (141,000) 20,000 NET DECREASE IN CASH AND CASH EQUIVALENTS (1,305,000) (1,374,000) BEGINNING CASH AND CASH EQUIVALENTS 2,518,000 1,998,000 ENDING CASH AND CASH EQUIVALENTS $ 1,213,000 $ 624,000 PART I - FINANCIAL INFORMATION Item 1. REXHALL INDUSTRIES, INC. Notes to the Condensed Financial Statements June 30, 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. 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 December 31, 1995 June 30, 1996 Raw Material $ 4,412,000 $ 6,915,000 Work in Process 1,459,000 1,970,000 Finished Motorhomes 2,780,000 3,803,000 TOTAL $ 8,651,000 $ 12,688,000 3. Cash in Bank $ 1,998,000 624,000 TOTAL $ 1,998,000 $ 624,000 4. On 4/17/96 the Board of Directors approved and issued a 5% common stock divided to owners of record as of April 3, 1996. The earnings per share data has been adjusted in order to equitably compare like quarters. PART I - FINANCIAL INFORMATION Item 2. - Management Discussion and Analysis of Financial Condition and Results of Operations Results of Operations Sales - 2nd Quarter 1996 Compared with 2nd Quarter 1995 Sales for the quarter ended June 30, 1996, totaled $18,780,000 as compared to $15,277,000 in 1995. The units sold in 1996 were 336 vs. 290 in 1995. The growing dealership network combined with an increase in sales associated with the Elkhart Indiana plant account for the greater sales revenue. Cost of Sales - 2nd Quarter 1996 compared with 2nd Quarter 1995 The Cost of Sales as a percentage of sales for the second quarter of 1996 was 82.7% vs 84.3% in the second Quarter of 1995. This 1.6% reduction is chiefly associated with the cost of parts. Management is continually negotiating with its vendors to secure better prices as the production volume increases. Gross Profit - 2nd Quarter 1996 compared with 2nd Quarter 1995 Gross Profit for the second quarter of 1996 increased to 17.2% from 15.7% for the second quarter of 1995. Management believes that the increase in gross profit can be attributed to two key factors: 1) the increase in quantity of motorhomes produced provided greater efficiency; 2) Rexhall having no long term debt on its production facilities aided in keeping manufacturing cost down. Selling, General Administrative and Other Expenses - 2nd Quarter 1996 compared with 2nd Quarter 1995 Selling, General Administrative and Other Expenses were 9.8% of Sales in 1996 as compared to 8.9% in the second quarter of 1995. The expenses associated with sales commissions, advertising, and fees for litigation were major factors involved in the increased expense. PART I - FINANCIAL INFORMATION Item 2. - Management Discussion and Analysis or Plan of Operations Financial Condition, Capital Resources and Liquidity At June 30, 1996, working capital was $10,181,000 as compared to working capital of $9,269,000 at December 31, 1995. At present, the Company has a $3,500,000 line of credit with Bank of America which can be used for working capital purposes. At June 30, 1996, the company had used $401,000 under this line of credit to obtain a stand-by Letter of Credit permitting the company to remain self-insured for Workers' Compensation. The $3,500,000 line replaced the $2,000,000 credit line it maintained with Wells Fargo Bank. 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 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. c) Exhibit 27. Financial data sheet submitted to SEC via Edgar Electronic Filing System. 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: August 14,1996 William J. Rex Chairman, President and Chief Executive Officer Date: August 14, 1996 Carmen Ignacio Controller Exhibit 11. Computation Supporting Earnings per Common Share Second Quarter 1995 1996 Net Income $ 628,000 $ 828,000 Weighted Average Number of Common Shares Outstanding (primary) 2,626,050(1) 2,712,918 Earnings per Share $ .24 $ .31 (1) Originally reported as 2,501,000 shares outstanding and earnings per share to be at .25. However, considering the 5% stock dividend paid on 4/17/96, the figures have been adjusted to reflect the dividend in order to equitably compare like quarters. EX-27 2
5 3-MOS DEC-31-1995 JUN-30-1996 624,000 0 5,565,000 0 12,688,000 19,192,000 4,197,000 0 23,396,000 9,011,000 0 0 0 6,493,000 0 23,396,000 18,780,000 18,780,000 15,543,000 15,543,000 1,843,000 0 0 1,394,000 566,000 828,000 0 0 0 828,000 .31 .30 Allowances taken into account at the end of the year. Depreciation taken into account at the end of the year.
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