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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 End September 30, 2003    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 7 th Street West, Lancaster, California 93534
(Address of principal executive offices) (Zip Code)

(661) 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     .

Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act). Yes ___ No  X  .


State the number of shares outstanding of each of the issuer’s classes of common equity, as of the latest practicable date: 5,872,700 as of November 12, 2003.
 
 


     
 


REXHALL INDUSTRIES, INC.
INDEX

PART I – FINANCIAL INFORMATION     PAGE NUMBER

Item 1.
Condensed Consolidated Financial Statements (Unaudited):
 
Condensed Consolidated Balance Sheets at September 30, 2003 and December 31, 2002
1
Condensed Consolidated Statements of Operations for the
Three and Nine Months Ended September 30, 2003 and September 30, 2002
 
2-3
Condensed Consolidated Statements of Cash Flows for the
Nine Months Ended September 30, 2003 and September 30, 2002
 
4
Notes to Condensed Consolidated Financial Statements
5-6
   
Item 2.
Management’s Discussion and Analysis of Financial Condition
and Results of Operations
 
 
6-12
Item 3.
Quantitative and Qualitative Disclosure about Market Risks
 
12
Item 4.
Controls and Procedures
 
12
PART II – OTHER INFORMATION
 
Legal Proceedings
 
Exhibits and Reports on Form 8-K
 
Signatures
 
Financing Agreement with GE Capital
 
Officer Certifications
 
12
 
13
 
14
 
15-21
 
22-24


As used in this Report, "we," "us," "our," "Rexhall" or the "Company" refer to Rexhall Industries, Inc. and, where applicable, its consolidated subsidiary.




  - ii -  

PART I – FINANCIAL INFORMATION
Item 1. – Condensed Consolidated Financial Statements
REXHALL INDUSTRIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

 
  
September 30, 2003
December 31, 2002
   
ASSETS
 
 
 
       
CURRENT ASSETS
   
 
    
 
  
Cash
 
$
382,000
 
$
5,757,000
 
Accounts Receivables, net
   
3,929,000
   
2,251,000
 
Income Tax Receivable
   
536,000
   
360,000
 
Inventories
   
14,350,000
   
15,049,000
 
Deferred Income Taxes
   
680,000
   
1,003,000
 
Other Current Assets
   
1,373,000
   
139,000
 
Current Assets of Discontinued Operations
   
-----
   
182,000
 
   
 
 
TOTAL CURRENT ASSETS
 
$
21,250,000
 
$
24,741,000
 
  Property and Equipment at Cost Net of Accumulated Depreciation
   
5,798,000
   
5,021,000
 
  Property Held for Sale
   
-----
   
-----
 
  Other Assets
   
152,000
   
152,000
 
  Non-Current Assets of Discontinued Operations
   
-----
   
37,000
 
   
 
 
TOTAL ASSETS
 
$
27,200,000
 
$
29,951,000
 
   
 
 
LIABILITIES & STOCKHOLDERS' EQUITY
   
 
    
 
  
             
CURRENT LIABILITIES
   
 
    
 
  
  Accounts Payable
 
$
2,270,000
 
$
1,622,000
 
  Chassis Vendor Line of Credit
   
1,908,000
   
3,381,000
 
  Notes Payable and Current Portion of Long-Term Debt
   
62,000
   
36,000
 
  Accrued Warranty
   
894,000
   
991,000
 
  Accrued Legal
   
754,000
   
1,250,000
 
  Accrued Dealer Incentives
   
534,000
   
638,000
 
  Other Accrued Liabilities
   
1,316,000
   
1,750,000
 
 Accrued Compensation and Benefits
   
213,000
   
472,000
 
  Current Liabilities of Discontinued Operations
   
_ -----
   
20,000
 
   
 
 
TOTAL CURRENT LIABILITIES
   
7,951,000
   
10,160,000
 
 
    
 
    
 
  
Long-Term Debt, less Current Portion
   
950,000
   
634,000
 
   
 
 
TOTAL LIABILITIES
   
8,901,000
   
10,794,000
 
   
 
 
STOCKHOLDERS' EQUITY
   
 
    
 
  
Preferred Stock - no par value,
   
 
    
 
  
Authorized, 1,000,000 shares;
   
 
    
 
  
no shares outstanding at September 30, 2003
   
 
    
 
  
and December 31, 2002
   
-----
   
-----
 
Common Stock - no par value,
   
 
    
 
  
Authorized, 10,000,000 shares;
   
 
    
 
  
issued and outstanding
   
 
    
 
  
5,872,700 at September 30, 2003
   
 
    
 
  
and 6,038,000 December 31, 2002
   
5,580,000
   
5,906,000
 
Retained Earnings
   
12,719,000
   
13,251,000
 
   
 
 
TOTAL STOCKHOLDERS' EQUITY
   
18,299,000
   
19,157,000
 
   
 
 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
 
$
27,200,000
 
$
29,951,000
 
   
 
 







See accompanying notes to condensed consolidated financial statements
 

 

  - 1 -  
 

REXHALL INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)


 
  
Three Months Ended
 
  
September 30, 2003
September 30, 2002
   
Net Revenues
 
$
10,823,000
 
$
12,872,000
 
Cost of Sales
   
9,559,000
   
11,830,000
 
   
 
 
Gross Profit
 
$
1,264,000
 
$
1,042,000
 
Operating Expenses:
   
 
    
 
  
Selling, General, Administrative Expenses and Other Expenses
   
1,829,000
   
2,559,000
 
   
 
 
Income/(Loss) before Income Taxes
   
(565,000
)
 
(1,517,000
)
Income Tax (Expense)/Benefit
   
361,000
   
610,000
 
   
 
 
Net Income/(Loss)
 
$
(204,000
)
$
(907,000
)
   
 
 
Basic and Diluted Income/(Loss) - Per Share
 
$
(.03
)
$
(0.15
)
Weighted Average Shares Outstanding Basic and Diluted
   
5,872,700
   
6,060,000
 
   
 
 



























See accompanying notes to condensed consolidated financial statements

 

  - 2 -  
 

REXHALL INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
 
 
 

 
  
Nine Months Ended
 
  
September 30, 2003
September 30, 2002
 
Net Revenues
 
$
33,411,000
 
$
49,243,000
 
Cost of Sales
   
29,286,000
   
44,524,000
 
   
 
 
Gross Profit
 
$
4,125,000
 
$
4,719,000
 
Operating Expenses:
   
 
    
 
  
Selling, General, Administrative Expenses and Other Expenses
   
5,246,000
   
6,213,000
 
   
 
 
Income/(Loss) before Income Taxes
   
(1,121,000
)
 
(1,494,000
)
Income Tax (Expense)/Benefit
   
579,000
   
598,000
 
   
 
 
Net Income/(Loss)
 
$
(542,000
)
$
(896,000
)
   
 
 
Basic and Diluted Income/(Loss) - Per Share
 
$
(0.09
)
$
(0.15
)