Rexhall Industries Inc., a California-based manufacturer of Class A motorhomes which saw its stock price rise sharply in recent days, has announced a 2 for 1 stock split and it revealed aggressive growth plans.
The new Rexhall shares will be distributed July 19 to shareholders of record as of the close of business on July 1. After the distribution, there will be around 6.1 million Rexhall shares outstanding.
To explain the recent sharp stock price increase, Rexhall Chairman, President and CEO Bill Rex said, “Some of our competitors were trading at three to four times book value while our stock had been trading at less than 25% over book value. Investors may have recognized the opportunity for growth in our stock.”
Meanwhile, Rexhall, which had $67 million in sales in 2000 and $57 million in total revenue during the RV industry recession year of 2001, has set $100 million in sales as its goal for 2003, according to Mike Bourne, executive vice president and COO.
Rexhall, a Nasdaq Stock Market-listed company, also has the goal of reaching $150 million in annual sales in 2005 or 2006, Bourne said.
“Though I have my work cut out for me, I am excited about the opportunity to expand and grow our existing product lines, which are well positioned as value-leaders in their price segments,” Bourne added.
Rexhall will lower its targets if there is a “significant downturn in the economy” during the next few years, he said.
Rexhall, based in Lancaster, Calif., also will work on developing its own diesel motorhome chassis and it will build a new factory “that should bring our new products to the market place in 2003,” Rex said.