Class A motorhome manufacturer Rexhall Industries Inc. reported losses for the fourth quarter and all 2002, but the losses were smaller than for the fourth quarter and full year 2001.
The Lancaster, Calif., company reported a net loss of $39,000 during the three months ended Dec. 31, compared with a $1.6 million net loss incurred in the final three months of 2001.
For all of 2002, Rexhall, a Nasdaq Stock Market-listed firm, lost $935,000, compared with $2 million lost in 2001.
Rexhall’s fourth-quarter sales revenue increased 15% to $14.1 million and its entire 2002 sales increased 12% to $63.3 million.
In terms of units shipped to dealers, Rexhall “didn’t keep pace with the industry” because its shipments increased by 5% last year, while industrywide, Class A motorhome deliveries increased by almost 19%, when compared with 2001, said Bill Rex, president and CEO.
Rexhall began 2002 “with more orders than we could handle from the 2001 RVIA (Recreation Vehicle Industry Association) trade show in Louisville, which led to production ramp-ups and inefficiencies,” Rex said. “However, we failed to maintain our edge in developing innovative floorplans, which caused shipments during the first half of 2002 not to retail quickly and back up the pipeline. This build-up of dealer inventories forced us to reduce our production rates during the summer.”
Rex added, “Our reaction to market conditions was slowed due to the distractions we had in the second half of last year from the restatement of the first-quarter’s results and the subsequent independent investigation, which cost us approximately $850,000 in payments to outside parties. With that now behind us, we can now return our focus to being innovative in 2003.”
Rexhall was late reporting its fourth-quarter and full-year 2002 results because it hired a new independent auditor early in March.