Rexhall Industries Inc. has restated its first quarter earnings and reported today (Sept. 26) that it earned a marginal profit during the first half of this year.
The Lancaster, Calif.-based manufacturer of Class A motorhomes now reports it lost $253,000 during the three months ended March 31. Earlier, it reported a net profit of $181,000 for the first three months of this year.
The change occurred because Rexhall discovered in August that there was an error in its accounting for raw material inventory, said Bill Rex, chairman and CEO.
A subsequent independent review of Rexhall’s accounting records found no other major errors. Accounting and legal fees related to the independent review will cost “$600,000 or more” and will be taken as an expense during Rexhall’s third quarter.
Meanwhile, Rexhall reports that its second-quarter net income totaled $264,000, doubling the $132,000 it earned during the April-through-June portion of 2001. Consequently, Rexhall reported net income of $11,000 for the first half of this year, a 96% decline from the $251,000 it earned in the first half of 2001.
Rexhall’s second quarter sales revenue climbed 15% higher to almost $19 million and its sales during the first half of this year also increased 15% to $36.4 million.
Because Rexhall had to restate its first quarter earnings and was late reporting its second-quarter results, its stock faces delisting by Nasdaq. Rexhall executives participated in a hearing before Nasdaq officials on Friday (Sept. 20). A decision from Nasdaq is expected in seven to 10 days.
In the interim, Rexhall stock will continue trading under the symbol REXLE.