California-based Class A motorhome manufacturer Rexhall Industries Inc. reports its third-quarter net loss expanded to $907,000 in part because of one-time-only expenses related to a review of its accounting records.
The company’s net loss of $907,000 for the three months ended Sept. 30 compared with a net loss of $655,000 incurred in the July-through-August portion of 2001.
After the first nine months of this year, Rexhall was in the red a total of $896,000, compared with a net loss of $404,000 incurred in the same portion of 2001.
Rexhall’s sales revenue increased 2% during the third quarter to $12.9 million. For the first nine months of this year, its sales were up 11% to $49.2 million.
In the third quarter, the company counted $750,000 – pre-tax – as a charge for audit and legal fees related to its successful effort to avoid being delisted by the Nasdaq Stock Market, according to Michael Bourne, COO and acting CFO. Were it not for the $750,000 charge, Rexhall would have reported a net loss of $457,000 for the third quarter and a net loss of $446,000 for the first nine months of this year.
“The day-to-day business did suffer while we were focused on the (financial record) reviews and not getting delisted,” Bourne said. “This resulted in production challenges not being resolved timely, which caused approximately two weeks worth of production not getting completed and shipped (by the end of the quarter.) While we are still addressing some of the challenges that developed during the (third) quarter, it is encouraging to be able to return our focus to ‘regular’ business issues.”
Meanwhile, Rexhall Chairman, President and CEO Bill Rex said the company will debut four new models in the National RV Trade Show in Louisville Dec. 3-5. “These new models include two triple-slide gas motorhomes, a 34-foot entry-level diesel and a 40-foot quadruple-slide diesel,” he said.
In general, Rex said, the company will “refocus on the gas-powered side of the market as well as ensure our diesel offerings remain value leaders.”