Class A motorhome manufacturer Rexhall Industries Inc. now says it lost money during the first quarter but that its second quarter profit was large enough to offset the first quarter loss, thus yielding “either breakeven or a slightly profitable year-to-date,” according to Bill Rex, chairman, president and CEO.
Earlier, Rexhall, a Nasdaq Stock Market traded company, reported net earnings of $181,000 for the first three months of this year. However, errors in reporting the company’s raw materials inventory require Rexhall to restate its first quarter results, Rex said.
Rex fired CFO Dawn Diaz and its materials manager as a result of the errors, he said.
Michael Bourne, a CPA who currently is Rexhall’s executive vice president and COO, and who was CFO prior to the hiring of Diaz, was reinstated as CFO, Rex added.
Due to the need to restate its first quarter results and the other changes, Rexhall has asked the Securities & Exchange Commission (SEC) for more time to report its second quarter results.
Because Rexhall’s second quarter ended on June 30, Rexhall had until Thursday (Aug. 15), under normal circumstances, to report its financial results for the April-through-June period.
“I hold myself responsible to Rexhall’s shareholders for having to restate the public numbers,” Rex said.
Rexhall distributed about 3 million new common stock shares on July 19 as result of a two-for-one stock split, and Rex admitted, “The recent stock split may now appear to be untimely.”
However, he added, “The company’s future is not in question. We still believe we are on the right track to increasing market share, profitability and shareholder value, and we will continue to work hard to meet our customers’ and shareholders’ needs.”