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Class A motorhome manufacturer Rexhall Industries Inc. reports its second quarter sales revenue declined 49% and it recorded a net loss of $282,000 due in part to the decision to become a niche market producer, concentrating on its new T-Rex Double & Wide design, which was introduced in July.
Rexhall’s $282,000 loss during the three months ended June 30 compares with a net profit of $264,000 earned during the same period a year earlier.
The company’s sales revenue during the April-through-June period totaled $9.6 million, compared with almost $19 million a year earlier.
Rexhall also reported a net loss of $57,000 during the first quarter of this year.
“Though we are discouraged with our performance and another losing quarter, we believe there is light at the end of the tunnel,” said Bill Rex, chairman, president and CEO. “We have converted approximately $2.5 million from cash to finished goods inventory in an effort to flush through all current chassis and raw materials not specific to our new T-Rex designed motorhomes.
“Our goal is to sell through all, or most all of our standard inventory in the third quarter, which should, if successful, improve our cash position, give our dealers time to sell through their inventory and allow us to focus on our new T-Rex Double & Wide in the fourth quarter,” Rex continued.
“Though dealers will still be able to order standard motorhomes, the initial excitement generated by our new design, both from customers and dealers, leads us to believe any customer looking to buy a motorhome with two or more slide (out) rooms will prefer our new T-Rex Double & Wide offered from (the) 26-foot gas Vision and American Clipper up to 40-foot diesels in RoseAir, along with both Aerbus and RexAir from 30-foot gas to 38-foot diesels,” Rex added.
The T-Rex Double & Wide design is based upon a patented slideout system that will “almost double” the size of a Class A motorhome, according to the Lancaster, Calif.-based company.
The slideout system increases the portions of a motorhome’s interior floorspace that are “not obstructed by cabinets, furniture, appliances, etc.” according to Rexhall.