California-based Class A motorhome manufacturer Rexhall Industries Inc. intends to regain the market share that it lost in the Western states over the last few years, according to Michael Bourne, executive vice president, COO and acting CFO.
“Our market share west of the Rockies has dropped from 6.2% in 1999 to 4.9% in 2001, which is a reduction of more than 150 motorhomes per year,” Bourne said Thursday (Oct. 10). “We have hired two seasoned sales managers to help us recapture and grow our Western market share.
“Splitting the territory in two will provide us with more frequent coverage and visibility at the dealership level,” Bourne said. “We have already signed up a new dealer in California and our recent focus on the eastern side of the Rockies has landed us new dealers in South Carolina, Georgia, Iowa, Oklahoma and Texas.”
Nationwide, Rexhall ranked No. 11 in retail market share in Class A motorhomes (both gas and diesel) with a 2.1% market share during the first seven months of this year, according to Statistical Surveys Inc., an independent market research firm.
Additionally, Rexhall, based in Lancaster, a community north of Los Angeles, announced the retirement of Donald Hannay Sr., 74, vice president of sales and marketing, after 15 years with Rexhall and 30 years in the RV industry.
Bourne was appointed to fill Hannay’s seat on the Rexhall Board until next year’s elections.
Rexhall’s board also decided to repurchase more of the Nasdaq Stock Market-traded company’s common stock to take into account the 2-for-1 stock split that was effective July 22. The board has authorized the repurchase of up to 500,000 Rexhall shares, of which 160,000 have been repurchased so far.
“We have repurchased about $150,000 of our stock between July 22 and early August,” said Bill Rex, chairman, president and CEO. “This additional authorization allows us the flexibility to continue repurchasing stock when market and business conditions make that a prudent investment.
“Increasing shareholder value is our objective and we recognize that investing some of our cash in buying back our stock at good prices should help us accomplish this objective,” Rex added.
Currently, Rexhall stock trades between $2.50 and $3.00 a share and the company has about 6 million shares outstanding.