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                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              Washington, DC 20549

                                    **FORM 10-Q**

(Mark One)

[X]          **QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
                 OF THE SECURITIES EXCHANGE ACT OF 1934**

For the quarterly period ended: April 30, 2005

                                       OR

[ ]          **TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
                 OF THE SECURITIES EXCHANGE ACT OF 1934**

For the transition period from ___________ to __________

Commission file number 0-12619

                            Collins Industries, Inc.
--------------------------------------------------------------------------------
             (Exact name of registrant as specified in its charter)

Missouri                                                    43-0985160
--------------------------------------------------------------------------------
(State or other jurisdiction of                  (I.R.S. Employer Identification
        incorporation)                                        Number)

15 Compound Drive                 Hutchinson, Kansas               67502-4349
--------------------------------------------------------------------------------
(Address of principal executive offices)                           (Zip Code)

Registrant's telephone number including area code         620-663-5551
                                                 -------------------------------

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the  preceding 12 months (or for such  shorter  period that the  registrant  was
required  to file  such  reports),  and  (2) has  been  subject  to such  filing
requirements for the past 90 days.

                       Yes    X                       No
                            -----                         -----

Indicate by check mark wither the registrant is an accelerated Filer (as defined
under rule 12b-2 of the Act). Yes       No  X
                                 -----    -----

                      APPLICABLE ONLY TO CORPORATE ISSUERS:

Indicate the number of shares  outstanding  of each of the  issuer's  classes of
common stock, as of the latest practicable date.

Common Stock, $.10 par value                                  6,610,324
--------------------------------------------------------------------------------
           Class                                    Outstanding at June 15, 2005

**COLLINS INDUSTRIES, INC. AND SUBSIDIARIES

                                    FORM 10-Q
                                April 30, 2005

                                      INDEX**

PART I.       FINANCIAL INFORMATION                                     PAGE NO.

     Item 1.  Financial Statements:
              Consolidated Condensed Balance Sheets
                   April 30, 2005 and October 31, 2004                         1

              Consolidated Condensed Statements of Income and
                   Comprehensive Income
                   Three and Six Months Ended April 30, 2005 and 2004          2

              Consolidated Condensed Statements of Cash Flow
                   Six Months Ended April 30, 2005 and 2004                    3

              Notes to Consolidated Condensed Financial Statements             4

     Item 2.  Management's Discussion and Analysis of Financial
                   Condition and Results of Operations                        14

     Item 3.  Quantitative and Qualitative Disclosures
                   About Market Risk                                          24

     Item 4.  Controls and Procedures                                         24

PART II.      OTHER INFORMATION

     Item 1.  Legal Proceedings                                               26

     Item 2.  Unregistered Sales of Equity Securities and
                   Use of Proceeds                                            26

     Item 3.  Defaults upon Senior Securities                                 26

     Item 4.  Submission of Matters to a Vote of Security-Holders             26

     Item 5.  Other Information                                               26

     Item 6.  Exhibits                                                        26

EXHIBIT INDEX                                                                 27

SIGNATURES                                                                    28

**PART I - FINANCIAL INFORMATION*****Item 1 - Financial Statements***

                    Collins Industries, Inc. and Subsidiaries
                      CONSOLIDATED CONDENSED BALANCE SHEETS
                                   (Unaudited)
                                                                       April 30,                 October 31,
                                                                          2005                      2004
                                                                 -------------------       --------------------
ASSETS
Current Assets:
   Cash                                                                $   154,835                $   163,098
   Receivables, trade & other                                           12,908,488                 10,979,087
   Inventories, lower of cost (FIFO) or market                          49,967,486                 39,059,185
   Prepaid expenses and other current assets                             3,226,174                  4,368,191
                                                                         ---------                  ---------
      Total current assets                                              66,256,983                 54,569,561

Restricted cash                                                            317,659                    359,810

Property and equipment, at cost                                         50,861,073                 49,604,273
      Less: accumulated depreciation                                    31,405,279                 30,239,053
                                                                         ---------                  ---------
      Net property and equipment                                        19,455,794                 19,365,220
Goodwill                                                                 5,050,232                  5,050,232
                                                                         ---------                  ---------
Other assets                                                             1,269,818                  1,382,482
                                                                         ---------                  ---------
      Total assets                                                     $92,350,486                $80,727,305
                                                                       ===========                ===========

LIABILITIES & SHAREHOLDER'S INVESTMENT
Current liabilities:
   Current maturities of long-term debt & capitalized leases           $ 2,487,983                $ 2,371,734
   Controlled disbursements                                              6,308,604                  5,668,517
   Accounts payable                                                     21,157,511                 18,408,291
   Accrued expenses                                                      8,432,867                  9,469,165
                                                                         ---------                  ---------
      Total current liabilities                                         38,386,965                 35,917,707

Long-term debt and capitalized leases                                   28,938,549                 18,515,178

Deferred income tax                                                      1,525,560                  1,525,560

Shareholders' investment:
   Common stock                                                            653,773                    636,933
   Paid-in capital                                                      13,129,635                 13,342,600
   Deferred compensation                                                (1,282,678)                (1,472,590)
   Accumulated other comprehensive income (loss), net                      (10,752)                   (25,562)
   Retained earnings                                                    11,009,434                 12,287,479
                                                                        ----------                 ----------
      Total shareholders' investment                                    23,499,412                 24,768,860
                                                                        ----------                 ----------
      Total liabilities & shareholders' investment                     $92,350,486                $80,727,305
                                                                       ===========                ===========

(See accompanying notes)

                                      -1-

                    Collins Industries, Inc. and Subsidiaries
      CONSOLIDATED CONDENSED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
                                   (Unaudited)

                                                               Three Months Ended                          Six Months Ended
                                                                    April 30,                                  April 30,

                                                             2005                  2004                  2005                 2004
                                                     ------------------    ------------------    ------------------    ----------------
                                                                              (as restated)                              (as restated)
Sales                                                     $61,293,943           $50,011,421          $112,841,800         $91,158,721
Cost of sales                                              54,592,153            43,758,368           102,310,310          80,506,466
                                                           ----------            ----------           -----------          ----------

   Gross profit                                             6,701,790             6,253,053            10,531,490          10,652,255

Selling, general and administrative expenses                6,354,949             4,880,428            10,931,625           9,174,260
                                                            ---------             ---------            ----------           ---------

   Income (loss) from operations                              346,841             1,372,625              (400,135)          1,477,995

Other income (expense):
   Interest expense                                          (511,191)             (385,647)             (933,017)           (759,149)
   Other, net                                                  10,359                (4,806)               26,598             315,720
                                                               ------                ------                ------             -------
                                                             (500,832)             (390,453)             (906,419)           (443,429)
                                                             --------              --------              --------            --------

Income (loss) before income taxes                            (153,991)              982,172            (1,306,554)          1,034,566

Income tax expense (benefit)                                  (80,000)              360,000              (530,000)            380,000
                                                              -------               -------              --------             -------

Net income (loss)                                         $   (73,991)          $   622,172          $   (776,554)        $   654,566

Other comprehensive income, net of tax:
   Unrealized gain on interest rate swap                       10,751                26,638                25,562              35,889
                                                               ------                ------                ------              ------

      Comprehensive income (loss)                         $   (63,240)          $   648,810          $   (750,992)        $   690,455
                                                          ===========           ===========          ============         ===========

Earnings (loss) per share:
   Basic                                                     $   (.01)              $   .11              $   (.13)            $   .11
                                                             ========               =======              ========             =======
   Diluted                                                   $   (.01)              $   .10              $   (.13)            $   .10
                                                             ========               =======              ========             =======

Dividends per share                                          $   .040               $  .035              $   .080             $  .065
                                                             ========               =======              ========             =======

Weighted average common and common
  equivalent shares outstanding:
  Basic                                                     5,912,738             5,651,506             5,877,815           5,845,400
                                                            =========             =========             =========           =========
  Diluted                                                   5,912,738             6,074,645             5,877,815           6,237,990
                                                            =========             =========             =========           =========

(See accompanying notes)

                                      -2-

                    Collins Industries, Inc. and Subsidiaries
                 CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOW
                                   (Unaudited)
                                                                                        Six Months Ended
                                                                                            April 30,
                                                                                 2005                      2004
                                                                          -------------------       --------------------
Cash flow from operations:                                                                             (as restated)
   Cash received from customers                                                $110,912,399                $90,040,414
   Cash paid to suppliers and employees                                        (117,545,433)               (88,071,420)
   Interest paid                                                                   (848,578)                  (781,730)
   Income taxes paid                                                               (743,150)                  (766,291)
                                                                               ------------               ------------

      Cash provided by (used in) operations                                      (8,224,762)                   420,973
                                                                                 ----------                    -------

Cash flow from investing activities:
   Capital expenditures                                                          (1,256,800)                  (762,030)
   Net proceeds from sale of building and land                                            -                    399,810
   Other, net                                                                       (52,957)                   (54,334)
                                                                                    -------                    -------

      Cash used in investing activities                                          (1,309,757)                  (416,554)
                                                                                 ----------                   --------

Cash flow from financing activities:
   Borrowings of long-term debt                                                  11,790,489                  7,391,491
   Principal payments of long-term debt and
     capitalized leases                                                          (1,246,943)                (1,774,407)
   Expenditures of restricted cash                                                   42,151                    117,094
    Purchase of common stock and other capital transactions                        (547,197)                (5,275,885)
   Payment of dividends                                                            (512,244)                  (405,365)
                                                                                   --------                   --------

      Cash provided by financing activities                                       9,526,256                     52,928
                                                                                  ---------                     ------

Net increase (decrease) in cash                                                     (8,263)                     57,347
                                                                                    -------                     ------

Cash at beginning of period                                                         163,098                     77,012
                                                                                    -------                     ------

Cash at end of period                                                          $    154,835                $   134,359
                                                                               ============                ===========

Reconciliation  of  net  income  (loss)  to  net  cash  provided  by
(used  in) operations:
   Net income (loss)                                                             $ (776,554)                 $ 654,566
   Depreciation and amortization                                                  1,459,405                  1,663,123
   Restricted stock vesting as severance pay                                        409,500                          -
   Increase in receivables                                                       (1,929,401)                (1,118,307)
   Increase in inventories                                                      (10,908,301)                (1,117,524)
   Decrease in prepaid expenses and other current assets                          1,167,580                  1,272,453
   Increase (decrease) in accounts payable and accrued expenses                   2,353,009                   (637,439)
   Gain on sale of building and land                                                      -                   (295,899)
                                                                                -----------                   --------

Cash provided by (used in) operations                                          $ (8,224,762)               $   420,973
                                                                               ============                ===========

(See accompanying notes)

                                      -3-

**Collins Industries, Inc. And Subsidiaries****Notes to Consolidated Condensed Financial Statements**
                                   (Unaudited)

**(1) General**

The preparation of financial  statements in conformity  with generally  accepted
accounting principles requires management to make estimates and assumptions that
affect  the  reported  amounts  of assets  and  liabilities  and  disclosure  of
contingent  assets and  liabilities at the date of the financial  statements and
the  reported  amounts of revenues  and expenses  during the  reporting  period.
Actual results could differ from those estimates.

In the opinion of management,  the accompanying unaudited consolidated condensed
financial  statements  contain  all  adjustments   (consisting  of  only  normal
recurring items) necessary to present fairly the Company's financial position at
April 30,  2005 and the results of  operations  and the cash flows for the three
and six months ended April 30, 2005 and 2004.

The  Company  suggests  that  the  unaudited  Consolidated  Condensed  Financial
Statements  for the  three  and  six  months  ended  April  30,  2005 be read in
conjunction  with the  Company's  Annual  Report for the year ended  October 31,
2004.

**(2)  Restatement of Financial Statements**

Subsequent to October 31, 2004 management determined that the procedures used to
record  workers  compensation   reserves  were  inappropriate  and  resulted  in
inadequate   reserves  being  recorded   historically   for  estimated   workers
compensation  costs and  claims.  This  information  was  reported  to the Audit
Committee and the Audit Committee initiated  procedures which ultimately lead to
the special investigation described in Note 9. As a result, and because the 2004
year-end  financial  closing  process  identified  adjustments  to prior  period
financial statements, the Company restated its consolidated financial statements
for the fiscal years ended October 31, 2003 and 2002 and for the quarters  ended
January 31, 2003 to July 31, 2004

*Effects of Restatement on Net Income*

The following  table  identifies  the  adjustments  made to  previously-released
consolidated financial statements:

                                                    Three Months      Six Months
                                                       Ended             Ended
***Description of Adjustment***                            April 30,         April 30,
($ In thousands 000's)                                2004(1)           2004(1)
--------------------------------------------------------------------------------

Workers Compensation Reserve Adjustments(2)           $  (48)          $  192
Uncollectible Rebates (3)                                 (7)             (14)
Other Accrued Expenses (4)                                39              (47)
--------------------------------------------------------------------------------
  **Total pre-tax impact**                                $  (16)          $  131
  **Income tax (5)**                                          10              (40)
--------------------------------------------------------------------------------
**Total Net Income Impact**                               $   (6)          $   91
--------------------------------------------------------------------------------

                                      -4-

(1)  As originally  reported by the Company for the quarter ended April 30, 2004
     on Form 10-Q.

(2)  Reflects adjustments to workers' compensation  liability reserves which had
     not previously  been  recorded.  Amounts in the  three-month  and six-month
     period ended April 30, 2004 also reflect adjustment to expense which should
     have been recorded in prior periods.
     Consolidated  Statements of Income and  Comprehensive  Income:  Adjustments
     decreased (increased) cost of sales by the amounts set forth in this table.
     Consolidated  Balance  Sheets:  Cumulative  adjustments  increased  accrued
     expenses by $1,732 for the period ending April 30, 2004.

(3)  Corrections to the estimate of rebate collectibility at April 30, 2004.
     Consolidated  Statements of Income and  Comprehensive  Income:  Adjustments
     increased   cost  of  sales  by  the  amounts  set  forth  in  this  table.
     Consolidated  Balance Sheets:  Cumulative  adjustments  decreased  accounts
     receivable by $20 for the period ending April 30, 2004.

(4)  Relates  to  the  correction  of  accumulated  depreciation  and  unaccrued
     facility  expense.  Consolidated  Statements  of Income  and  Comprehensive
     Income:  Adjustments  decreased  cost of sales by the  amounts set forth in
     this table.
     Consolidated Balance Sheets: Adjustments decreased accumulated depreciation
     by $40 and cumulative adjustments increased accounts payable by $38 for the
     period ending April 30, 2004

(5)  Income tax benefit related to the adjustments above
     Consolidated  Statements of Income and  Comprehensive  Income:  Adjustments
     decreased  (increased)  income tax expense by the amounts set forth in this
     table. Consolidated Balance Sheets: Cumulative adjustment increased prepaid
     expenses  and other  current  assets by $710 for the period ended April 30,
     2004.

As a  result  of  the  foregoing  factors,  the  Company's  unaudited  condensed
consolidated  financial  statements  for the three  month and six month  periods
ended April 30, 2004 have been restated from amounts  previously  reported.  The
accompanying  consolidated financial data set forth below presents the Company's
consolidated  Statements of Income and Comprehensive Income for the three months
and six months ended April 30, 2004 and  Consolidated  Balance Sheet as of April
30, 2004 on a comparative  basis showing the amounts as originally  reported and
as restated.  The restatement  did not result in any change in the  Consolidated
Statement  of Cash Flows  between Cash  Provided by  Operations,  Investing  and
Financing Activities.

As a result of the restatement of the consolidated  financial statements for the
quarter ended April 30, 2004, net income decreased by $6,249,  or less than $.01
per share - diluted to  $622,172  from  $628,421  or $.10 per share - diluted as
previously  reported.  For the six  months  ended  April  30,  2004  net  income
increased by $90,902,  or $.01 per share - diluted to $654,566  from $563,664 or
$.10 per  share - diluted  as  previously  reported.  All  applicable  financial
information  contained  in this  Quarterly  Report on Form 10-Q gives  effect to
these restatements.

                                      -5-

                    Collins Industries, Inc. and Subsidiaries
                      CONSOLIDATED CONDENSED BALANCE SHEETS
                                   (Unaudited)
                                                                                April 30,                 April 30
                                                                                  2004                      2004
                                                                        -----------------------     --------------------
                                                                                                        (as restated)
ASSETS
Current Assets:
   Cash                                                                           $   134,359              $   134,359
   Receivables, trade & other                                                       7,758,571                7,738,706
   Inventories, lower of cost (FIFO) or market                                     37,509,126               37,509,126
   Prepaid expenses and other current assets                                        2,191,463                2,901,463
                                                                                    ---------                ---------
      Total current assets                                                         47,593,519               48,283,654

Restricted cash                                                                       655,709                  655,709

Property and equipment, at cost                                                    50,018,093               50,018,093
      Less: accumulated depreciation                                               30,522,870               30,482,870
                                                                                   ----------               ----------
      Net property and equipment                                                   19,495,223               19,535,223
Other assets                                                                        6,436,232                6,436,232
                                                                                    ---------                ---------
      Total assets                                                                $74,180,683              $74,910,818
                                                                                  ===========              ===========

LIABILITIES & SHAREHOLDER'S INVESTMENT
Current liabilities:
   Current maturities of long-term debt & capitalized leases                      $ 2,476,890              $ 2,476,890
   Accounts payable                                                                13,870,108               13,908,544
    Controlled disbursements                                                        3,619,398                3,619,398
   Accrued expenses                                                                 6,536,095                8,267,907
                                                                                    ---------                ---------
      Total current liabilities                                                    26,502,491               28,272,739

Long-term debt and capitalized leases                                              22,164,791               22,164,791

Deferred income tax                                                                 1,333,571                1,333,571

Shareholders' investment:
   Common stock                                                                       635,732                  635,732
   Paid-in capital                                                                 13,342,980               13,342,980
   Deferred compensation                                                           (1,830,663)              (1,830,663)
   Accumulated other comprehensive income (loss), net                                 (65,327)                 (65,327)
   Retained earnings                                                               12,097,108               11,056,995
                                                                                   ----------               ----------
      Total shareholders' investment                                               24,179,830               23,139,717
                                                                                   ----------               ----------
      Total liabilities & shareholders' investment                                $74,180,683              $74,910,818
                                                                                  ===========              ===========

                                      -6-

                    Collins Industries, Inc. and Subsidiaries
      CONSOLIDATED CONDENSED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
                                   (Unaudited)

                                                                Three Months Ended                           Six Months Ended
                                                                     April 30,                                   April 30,

                                                            2004                 2004                  2004                  2004
                                                   --------------------    ----------------    --------------------    ----------------
                                                                            (as restated)                               (as restated)
Sales                                                     $50,011,421         $50,011,421             $91,105,328         $91,158,721
Cost of sales                                              43,742,119          43,758,368              80,609,864          80,506,466
                                                           ----------          ----------              ----------          ----------

   Gross profits                                            6,269,302           6,253,053              10,495,464          10,652,255

Selling, general and administrative expenses
                                                            4,880,428           4,880,428               9,148,371           9,174,260
                                                            ---------           ---------               ---------           ---------

   Income from operations                                   1,388,874           1,372,625               1,347,093           1,477,995

Other income (expense):
   Interest expense                                          (385,647)           (385,647)               (759,149)           (759,149)
   Other, net                                                  (4,806)             (4,806)                315,720             315,720
                                                               ------              ------                 -------             -------
                                                             (390,453)           (390,453)               (443,429)           (443,429)
                                                             --------            --------                --------            --------

Income (loss) before income taxes                             998,421             982,172                 903,664           1,034,566

Income tax expense (benefit)                                  370,000             360,000                 340,000             380,000
                                                              -------             -------                 -------             -------

Net income (loss)                                         $   628,421         $   622,172             $   563,664         $   654,566

Other comprehensive income, net of tax:
   Unrealized gain on interest rate swap                       26,638              26,638                  35,889              35,889
                                                               ------              ------                  ------              ------

      Comprehensive income (loss)                         $   655,059         $   648,810             $   599,553         $   690,455
                                                          ===========         ===========             ===========         ===========

Earnings (loss) per share:
   Basic                                                      $   .11             $   .11                 $   .10             $   .11
                                                              =======             =======                 =======             =======
   Diluted                                                    $   .10             $   .10                 $   .09             $   .10
                                                              =======             =======                 =======             =======

Dividends per share                                           $  .035             $  .035                 $  .065             $  .065
                                                              =======             =======                 =======             =======

Weighted average common and common
  equivalent shares outstanding:
  Basic                                                     5,651,506           5,651,506               5,845,400           5,845,400
                                                            =========           =========               =========           =========
  Diluted                                                   6,074,645           6,074,645               6,237,990           6,237,990
                                                            =========           =========               =========           =========

                                      -7-

**(3) Inventories**

Inventories,  which include  material,  labor, and manufacturing  overhead,  are
stated at the lower of cost (FIFO) or market.

Major classes of inventories as of April 30, 2005 and October 31, 2004 consisted
of the following:

                                         April 30, 2005         October 31, 2004
                                         --------------         ----------------

   Chassis                                  $ 8,520,213              $ 5,767,019
   Raw materials & components                16,680,274               14,997,408
   Work-in-process                           10,485,325                9,037,199
   Finished goods                            14,281,674                9,257,559
                                             ----------                ---------
                                            $49,967,486              $39,059,185
                                            ===========              ===========

**(4) Earnings per Share**

Dilutive  securities,  consisting  of options to purchase the  Company's  common
stock and restricted  stock awards,  are included in the  calculation of diluted
weighted  average  common  shares.  Due to a net loss,  there  were no  dilutive
securities for the three month period ended April 30, 2005.  Dilutive securities
for the three month period ended April 30, 2004 were 423,139. Due to a net loss,
there were no dilutive securities for the six month period ended April 30, 2005.
Dilutive securities for the six months ended April 30, 2004 were 392,590.

**(5) Contingencies and Litigation**

At April 30, 2005, the Company had  contingencies  and pending  litigation which
arose  in the  ordinary  course  of  business.  Litigation  is  subject  to many
uncertainties  and  the  outcome  of the  individual  matters  is not  presently
determinable.  It is management's  opinion that this litigation would not result
in  liabilities  that  would  have a material  adverse  effect on the  Company's
consolidated financial position or results of operations or cash flows.

Certain  workers  compensation  claims have been denied by the Company's  excess
liability  insurance  carrier.  Reserves have been recorded assuming no recovery
from the excess  insurance  carrier is received.  Management  is  disputing  the
denial of coverage by the excess liability insurance carrier but recovery of any
amounts is contingent  and management  cannot  provide any assurances  regarding
recovery  of any  amounts.  The  amount of excess  coverage  being  disputed  is
approximately $0.6 million.

The  Company  was  advised  on  February  25,  2005  that  the SEC  initiated  a
preliminary  investigation of certain accounting  practices of the Company.  The
Company is cooperating with the SEC.

**(6) Segment Information**

The  Company  has three  reportable  segments:  ambulances,  buses and  terminal
trucks/road  construction equipment.  The ambulance segment produces modular and
van type ambulances for sale to hospitals,  ambulance services, fire departments
and other  governmental  agencies.  The bus segment produces small school buses,
commercial buses and shuttle buses for sale to schools,

                                      -8-

hotel shuttle services,  airports, and other governmental agencies. The terminal
truck/road  construction  equipment segment produces off road trucks designed to
move trailers and containers for warehouses,  truck terminals,  rail yards, rail
terminals and shipping ports and produces a line of road construction equipment.

                                                 Three Months Ended                  Six Months Ended
       ($ In Thousands)                               April 30,                          April 30,

                                                  2005            2004             2005             2004
                                             -------------    -------------    -------------    -------------
**Revenues from external customers:**                             (as restated)                     (as restated)
   Ambulance                                     $23,655          $20,942          $43,845           $39,040
   Buses                                          14,976           13,367           27,681            22,399
   Terminal Trucks/Road Construction
     Equipment                                    22,663           15,702           41,316            29,720
                                                  ------           ------           ------            ------
Consolidated Total                               $61,294          $50,011         $112,842           $91,159
                                                 =======          =======         ========           =======

**Pretax segment profit (loss):**
   Ambulance                                     $   411          $   999         $   (199)          $ 1,711
   Buses                                              41              164                4              (299)
   Terminal Trucks/Road Construction
      Equipment                                    1,607              859            2,048             1,337
   Other                                          (2,213)          (1,040)          (3,185)           (1,714)
                                                  ------           ------           -------           ------
Consolidated Total                               $  (154)         $   982         $ (1,307)          $ 1,035
                                                 =======          =======         ========           =======

                                                                      As of
                                                April 30,          October 31,
                                                  2005                2004
                                           -----------------    ----------------
**Segment assets:**
   Ambulance                                       $39,374             $35,165
   Buses                                            24,523              18,100
   Terminal Trucks/Road Construction
      Equipment                                     24,136              21,866
   Other                                             4,317               5,596
                                                     -----               -----
Consolidated Total                                 $92,350             $80,727
                                                   =======             =======

                                      -9-

**(7) Guarantees and Warranties**

Letters of Credit

The Company has issued various  standby letters of credit in the ordinary course
of business.  No liability has been reflected in the accompanying  balance sheet
and no draws on the Company's standby letters of credit have ever been made. The
current  outstanding  standby  letters of credit are  limited to (i) a letter of
credit  originally  issued  approximately  15 years ago (renewable  annually) as
required  under  Kansas  law  to  backup   self-insured   reserves  for  workers
compensation insurance, (ii) a declining standby letter of credit required under
Texas  law to  backup  certain  industrial  revenue  bonds  issued  for a  plant
expansion in Longview,  Texas in 1999 that is renewable annually and (iii) other
standby  letters of credit related to periodic bids and issued for other similar
purposes.   A  default  in  meeting  an  obligation   or  condition   under  the
above-referenced standby letters of credit could require the Company to record a
liability. The letters of credit outstanding at April 30, 2005 are summarized as
follows:

                                                                               Date of
PurposeAmountExpiration

Workers compensation - Kansas self-insurance reserves    $1,373,000        April 1, 2006
Industrial revenue bond-Longview, Texas [1]               1,314,911      September 16, 2005
Bids and other                                              627,636           Various

[1] All assets  (originally  $3.0  million)  acquired  with the  proceeds of the
Longview,  Texas industrial  revenue bonds would also be available to offset any
defaults under these  obligations.  The liquidation amount of such assets is not
reasonably estimable.

Warranties

The Company's  products  generally carry explicit product warranties that extend
from  several  months to more  than a year,  based on terms  that are  generally
accepted in the marketplace.  Certain  components  included in the Company's end
products  (such as chassis,  engines,  axles,  transmissions,  tires,  etc.) may
include  warranties  from  original  equipment  manufacturers  (OEM).  These OEM
warranties are generally passed on to the end customer of the Company's products
and  the  customer  generally  deals  directly  with  the  applicable  component
manufacturer.  The Company records  provisions for estimated  warranty and other
related costs at the time of sale based on historical  warranty loss  experience
and periodically adjusts these provisions to reflect actual experience.  Certain
warranty and other related claims involve matters of dispute that ultimately are
resolved by  negotiation,  arbitration or litigation.  Infrequently,  a material
warranty  issue may arise which is beyond the scope of the Company's  historical
experience.  The Company  provides for any such  warranty  issues as they become
known and estimable. It is reasonably possible that from time to time additional
warranty and other  related  claims could arise from  disputes or other  matters
beyond the scope of the Company's  historical  experience.  The following tables
provide the changes in the Company's product warranties (in thousands):

                                      -10-

**Reconciliation of Accrued Warranties
For the Three Months Ended April 30,                            2005                   2004**
--------------------------------------------------       -------------------    -------------------

Accrued warranties at beginning of period                           $1,262                 $1,134

Provisions for warranties charged against income                       488                    308

Payments and adjustments of warranties                                (400)                  (296)
                                                                      ----                   ----

Accrued warranties at end of period                                 $1,350                 $1,146
                                                                    ======                 ======

Reconciliation of Accrued Warranties
For the Six Months Ended April 30,                              2005                   2004
--------------------------------------------------       -------------------    -------------------

Accrued warranties at beginning of period                           $1,184                 $1,133

Provisions for warranties charged against income                       931                    648

Payments and adjustments of warranties                                (765)                  (635)
                                                                      ----                   ----

Accrued warranties at end of period                                 $1,350                 $1,146
                                                                    ======                 ======

**(8) Stock Based Compensation**

At April 30, 2005, the Company had two stock-based employee  compensation plans,
which are more fully described in Note 6 of the "Notes to Consolidated Financial
Statements"  in the  Company's  2004 Form 10-K.  The Company  accounts for these
plans under the recognition  and  measurement  principles of APB Opinion No. 25,
"Accounting for Stock Issued to Employees" and related interpretations. No stock
based compensation cost is reflected in net income, as all options granted under
those plans had an exercise  price equal to or greater  than the market value of
the  underlying  common stock on the date of grant.  No stock  options have been
granted  since  1999 and  therefore,  no  proforma  net income  disclosures  are
required.

**(9) Audit Committee Investigation**

On January 31, 2005, the Company  announced  that it was delaying  filing of its
Form 10-K for the year ended  October  31,  2004 as Company  management  and the
Audit Committee of its Board of Directors were  investigating  and analyzing the
Company's manner of establishing reserves in various worker's compensation cases
in the states of Kansas and  Florida.  The  decision to delay filing of the Form
10-K for the year  ended  October  31,  2004 was made to  permit  the  Company's
management and Audit Committee to complete the investigation  and analysis,  and
to allow its independent  registered  public  accounting firm sufficient time to
complete the audit of the Company's October 31, 2004 financial statements.

The Audit Committee hired independent legal counsel and an independent insurance
consultant to assist in its investigation of the workers compensation  reserves.
Due to the complexity of calculating the reserves  required at the various dates
and the  difficulty of estimating  the reserve  amount in each case,  additional
time was needed to ensure a complete  investigation  and this factor

                                      -11-

caused the Company to not be in position to file its  periodic  reports with the
SEC on a timely basis.

The Company  discovered  issues with workers'  compensation  claims for injuries
dating back to 1990. The special  investigation  revealed that Company personnel
with  responsibility  for setting reserves did so in an aggressive  manner which
caused the third-party  administrator  adjusters to recommend reserves at levels
lower than they would have  otherwise  recommended.  Personnel  also  employed a
practice  known as  stair-stepping  reserves for certain  claims.  This involves
recording  reserves initially at an amount lower than the amount the claim would
be expected to settle for and  increasing  the reserve  over time.  In addition,
several  Florida  claims that had  existed  for an  extended  period of time had
reserves which had been set artificially low and then increased  periodically to
reflect  on-going  payments to  claimants.  The accrual of these  amounts in the
period that claims were incurred  resulted in a charge to retained  earnings for
periods prior to October 31, 2001 and a reversal of reserves in subsequent years
to reflect amounts that should already have been recorded.

On May 12, 2005, the Company  announced that its Audit Committee had recommended
revised  procedures for establishing  workers'  compensation  reserves.  Revised
procedures were put in place to help ensure reserve  recommendations made by the
third  party  administrator  ("TPA")  are  recorded.  Procedures  also  prohibit
inappropriate  influence  by  management  in  the  determination  of  the  TPA's
recommended reserve amounts. The revised procedures require increased accounting
oversight  to help insure  reserves are recorded in  accordance  with  generally
accepted   accounting   principles.   The  Board  of   Directors   approved  the
recommendation.

**(10) Other Matters**

The delay in providing audited financial  statements for the year ending October
31, 2004 would have constituted a covenant  violation  pursuant to the Company's
Loan and  Security  Agreement.  The  Company  obtained a waiver  from its lender
regarding this event.  The delay in providing the audited  financial  statements
also  resulted in  non-compliance  under  other debt  agreements,  although  the
non-compliance  did not  result  in an event of  default.  The  Company  has not
received any default  notifications.  Management believes all default conditions
have now been remedied and the Company is in compliance with its covenants under
its lending agreements.

On February  22,  2005,  the  Company  announced  that it  received  notice of a
determination by NASDAQ's Listing  Qualifications Staff that it failed to comply
with NASDAQ listing  standards set forth in NASDAQ  Marketplace Rule 4310(c)(14)
due to the delayed  filing with the  Securities  and Exchange  Commission of its
annual report on Form 10-K for the period ended  October 31, 2004,  and that its
common stock would  therefore be subject to delisting  from the NASDAQ  National
Market.  On May 16, the common stock of the Company was delisted from the NASDAQ
National Market due to the delay in filing its annual report on Form 10-K.

On May 13, 2005, the Company's Mid Bus subsidiary  completed the purchase of its
Bluffton,  Ohio manufacturing facility for a purchase price of $2,000,000.  This
property  was  leased  prior to  being  purchased  with  financing  through  the
Company's  lead bank. In addition to the purchase  price,  the Company agreed to
purchase up to  $1,000,000 of parts or products over the next five years from an
affiliate of the seller.  Certain  penalties are imposed on the Company if it is
unable or unwilling to meet this purchase commitment.

                                      -12-

On March 21, 2005,  the Company  reported  that the Executive  Vice  President -
Operations,  Terry L. Clark, and Chief Financial Officer,  Larry Sayre,  retired
effective March 18, 2005. April 1, 2005, Randall Swift became Vice President and
Chief Operating Officer of the Company.  On May 23, 2005, Cletus Glasener became
Vice President and Chief  Financial  Officer of the Company.  A charge to income
totaling approximately $1.1 million was recorded in the second quarter of fiscal
year 2005. This amount represents the estimated severance  obligation of the two
executives who retired.

                                      -13-

**Item 2 - Management's  Discussion and Analysis of Financial Condition and Result****of Operations*****GENERAL***

The following  discussion and analysis  provides  information  which  management
believes  is  relevant  to an  assessment  and  understanding  of the  Company's
consolidated  results of operations  and  financial  condition.  The  discussion
should be read in conjunction  with the  consolidated  financial  statements and
notes thereto.

                                                  Three Months Ended             Six Months Ended
                                                      April 30,                      April 30,

                                                 2005           2004            2005           2004
                                                 ----           ----            ----           ----
                                                             (restated)                     (restated)

Sales                                            100.0%         100.0%         100.0%         100.0%
Cost of sales                                     89.1           87.5           90.7           88.3
                                                  ----           ----           ----           ----
          Gross profit                            10.9           12.5            9.3           11.7

Selling, general and administrative expenses      10.4            9.8            9.7           10.1
                                                  ----            ---            ---           ----

          Income from operations                   0.5            2.7           (0.4)           1.6

Other income (expense):
   Interest, net                                  (0.8)          (0.8)          (0.8)          (0.8)
   Other, net                                      0.0            0.0            0.0            0.3
                                                   ---            ---            ---            ---

          Income (loss) before benefit for
             income taxes                         (0.3)           1.9           (1.2)           1.1

Income tax (provision) benefit                     0.1           (0.7)           0.5           (0.4)
                                                   ---           ----            ---            ----

          Net income (loss)                       (0.2)%          1.2%          (0.7)%          0.7%
                                                   ===            ===            ===            ===

***OVERVIEW***

Collins  Industries,  Inc. is a manufacturer of specialty vehicles and has three
reportable segments:  ambulances,  buses and terminal  trucks/road  construction
equipment.  The ambulance  segment  produces modular and van type ambulances for
sale to hospitals,  ambulance services,  fire departments and other governmental
agencies.  The bus segment  produces  small school buses,  commercial  buses and
shuttle buses for sale to schools,  hotel shuttle services,  airports, and other
governmental agencies.  The terminal trucks/road  construction equipment segment
produces   off-road   trucks  designed  to  move  trailers  and  containers  for
warehouses,  truck terminals,  rail yards, rail terminals and shipping ports and
produces a line of road  construction  equipment.  Each of the Company's product
groups is responsible for its own marketing activities and maintains independent
relationships with dealers and distributors.

The accounting  policies of the segments are the same as those  described in the
summary  of  significant  accounting  policies  of the  "Notes  to  Consolidated
Financial  Statements" in the

                                      -14-

Company's 2004 Form 10-K. The Company  evaluates  performance based on profit or
loss from operations  before income taxes not including  nonrecurring  gains and
losses.

The Company  accounts for  intersegment  sales and  transfers as if the sales or
transfers  were to third  parties,  with all  intercompany  sales  eliminated in
consolidation.

The  Company's  reportable  segments  are  strategic  business  units that offer
different  products  and  services.  They are managed  separately  because  each
business requires different technology and marketing strategies.

The  Company  posted a 49%  increase  in its sales  backlog at April 30, 2005 to
$117.8  million  compared  to $79.1  million at April 30,  2004.  The backlog at
October  31, 2004 was $68.5  million.  The  increased  backlog at April 30, 2005
resulted from new orders across all of the Company's segments.

See "Segment Information" (Note 6 to the Consolidated  Financial Statements) for
quantitative segment information.

***Three months ended April 30***
Consolidated  sales for the three months ended April 30, 2005  increased  23% to
$61.3  million  compared to $50.0  million  for the same period last year.  This
increase  was  principally  lead by a 44%  improvement  in sales  from  terminal
truck/road  construction  products  with a 13% and 12% increase in ambulance and
bus products sales respectively.

Consolidated  gross profit for the three  months ended April 30, 2005  increased
$.45 million or 6% over the same period last year. This increase was principally
due to the impact of higher sales and was partially  offset by the impact of raw
material  cost  increases  absorbed on units before sales price  increases  were
initiated.

Consolidated selling,  general and administrative  expenses for the three months
ended April 30, 2005  increased  $1.27  million or 30% over the same period last
year.  This  increase was  principally  due to severance  costs and auditing and
legal expense associated with the restatement of the 2004 financial statements.

Interest  expense for the three  months  ended April 30, 2005  increased to $.51
million compared to $.39 million in the same period last year. This increase was
principally a result of an overall increase of the Company's average  borrowings
throughout most of the second quarter of fiscal 2005 to fund increased inventory
and a rise in interest rates.

The Company  posted a  consolidated  net loss of $.07 million  ($.01 per share -
diluted)  for the three  months  ended April 30, 2005  compared to net income of
$.62 million ($.10 per share - diluted) for the same period last year.  The loss
for the three months ended April 30, 2005 principally resulted from increases in
general and administrative  expenses associated with the restatement of the 2004
financials  combined  with a reduction in gross margins due to raw material cost
increases absorbed on units before sales price increases were initiated.

***Six  months ended April 30***
Consolidated  sales for the six months  ended  April 30, 2005  increased  24% to
$112.8  million  compared  to $91.2  million  the same  period  last year.  This
increase  was  principally  lead by a 39%

                                      -15-

improvement in sales from terminal truck/road  construction  products with a 24%
and 12% increase in bus and ambulance products sales respectively.

Consolidated  gross profit for the six months ended April,  2005  decreased $.12
million or 3% over the same period last year.  This decrease was principally due
to the impact of raw  material  cost  increases  absorbed on units  before sales
price increases were initiated.

Consolidated  selling,  general and  administrative  expenses for the six months
ended April 30, 2005  increased  $1.75 million over same period last year.  This
increase was  principally  due to severance costs and auditing and legal expense
associated with the restatement of the 2004 financial statements.

Interest  expense  for the six months  ended April 30,  2005  increased  to $.93
million compared to $.76 million in the same period last year. This increase was
principally a result of an overall increase of the Company's average  borrowings
throughout most of fiscal 2005 combined with increases in interest rates.

Other income for the six months  ended April 30, 2005 was $.03 million  compared
to $.32  million for the same period last year.  Of the amount for the period in
2004, $.30 million resulted from a nonrecurring gain from the sale of a building
and land.

The Company  posted a  consolidated  net loss of $0.76 million ($.13 per share -
diluted) for the six months ended April 30, 2005 compared to net income of $0.65
million  ($.11 per share - diluted) for the same period last year.  The net loss
for the six months ended April 30, 2005 resulted  principally  from increases in
general and administrative  expenses associated with the restatement of the 2004
financials  combined  with a reduction in gross margins due to raw material cost
increases absorbed on units before sales price increases were initiated.

***RESULTS OF OPERATIONS*****AMBULANCE SEGMENT*****Three months ended April 30***
For the three months  ended April 30, 2005,  the  ambulance  segment  sales were
$23.7  million or 32% of the  Company's  consolidated  sales  compared  to $20.9
million  or 42% for the  same  period  in  fiscal  2004.  Unit  volume  sales of
ambulance  products  increased  12% for the three  months  ended  April 30, 2005
compared to the same period in fiscal 2004. This increase was principally due to
increased unit sales to governmental agencies. Ambulance products selling prices
in the three  months  ended  April 30,  2005  increased  1% compared to the same
period in fiscal 2004.

For the three  months  ended April 30,  2005,  ambulance  segment  gross  profit
decreased  14% and selling,  general and  administrative  expenses  increased 4%
compared to the same period last year. The gross profit decline was  principally
due to the impact of raw material cost increases  absorbed on units before sales
price increases were initiated.

Pretax profit of the ambulance  segment decreased by 59% to $.41 million for the
three months  ended April 30, 2005  compared to $1.0 million for the same period
last year  principally  as a result of the materials  cost  increases  discussed
above.

                                      -16-

***Six months ended April 30***
For the six months ended April 30, 2005, the ambulance  segment sales were $43.8
million or 39% of the Company's  consolidated sales compared to $39.0 million or
43% for the same period in fiscal 2004. Unit volume sales of ambulance  products
increased 9% for the six months ended April 30, 2005 compared to the same period
in fiscal 2004.  This increase was  principally  due to increased  unit sales to
governmental agencies. Ambulance products selling prices increased approximately
3% in the six months ended April 30, 2004  compared to the same period in fiscal
2005. This increase principally resulted from changes in product mix.

For the six  months  ended  April  30,  2005,  ambulance  segment  gross  profit
decreased 28% and selling,  general and administrative  expenses increased by 4%
compared  to the same  period in  fiscal  2004.  Substantially  all of the gross
profit decrease was principally due to the impact of raw material cost increases
absorbed on units before sales price increases were initiated.  Selling, general
and administrative  expenses  increased  principally as a result of higher sales
volumes.

Pretax loss of the  ambulance  segment was $.2 million for the six months  ended
April 30, 2005  compared to a pretax  profit of $1.7 million for the same period
last year. The pretax loss principally resulted from raw material cost increases
absorbed on units before sales price increases were initiated.

**BUS SEGMENT*****Three months ended April 30***
For the three months ended April 30, 2005,  bus segment sales were $15.0 million
or 24% of the Company's  consolidated sales compared to $13.4 million or 27% for
the same period last year.  This increase was principally due to increased sales
to child care providers and contractors and increased chassis costs reflected in
sales.  The average unit selling  price of bus products  increased by 26% in the
three  months  ended April 30, 2005  compared to the same period in fiscal 2004.
Substantially  all of this unit  price  increase  resulted  from  chassis  costs
reflected in sales.

For the three  months  ended  April 30,  2005,  gross  profit  decreased  8% and
selling,  general and  administrative  expenses  decreased by 2% compared to the
same  period last year.  The  decrease in gross  profit was  principally  due to
increase in chassis  sales  carrying a lower gross  profit and the impact of raw
material  cost  increases  absorbed on units before sales price  increases  were
initiated.  The  reduction in selling,  general and  administrative  expense was
principally a result of lower promotion, and sales policy allowance expenses.

Pretax profit of the bus segment  decreased by 75% to $.04 million for the three
months  ended April 30, 2005  compared to $.16  million for the same period last
year.  This  decrease  principally  resulted from an increase in chassis and raw
material  cost  increases  absorbed on units before sales price  increases  were
initiated and higher interests costs.

***Six months ended April 30***
For the six months ended April 30, 2005, bus segment sales were $27.7 million or
25% of the Company's consolidated sales compared to $22.4 million or 25% for the
same period last year.  The increase was  principally  due to increased  chassis
costs  reflected  in sales  and  increased  sales to child  care  providers  and
contractors.  Unit  volume  sales of bus  products  increased  by 6% for the

                                      -17-

six months ended April 30, 2005 compared to the same period in fiscal 2004. This
increase was  principally  due to increased  sales to child care  providers  and
contractors.  The average unit price of bus products decreased by 16% in the six
months  ended  April 30,  2005  compared  to the same  period  in  fiscal  2004.
Substantially  all of this unit price decrease resulted from a change in product
mix.

For the six months ended April 30, 2005, bus segment gross profit  increased 33%
compared  to the same  period  last  year.  The  increase  in gross  profit  was
principally   attributable  to  increases  in  sales  volumes   discussed  above
contrasted with temporary production  inefficiencies during the first six months
of fiscal 2004.  For the six months ended April 30, 2005,  selling,  general and
administrative  expenses  increased by 5% compared to the same period last year.
This increase was principally a result of higher promotional expenses, partially
offset by a reduction in sales policy allowances.

The bus segment broke even for the six months ended April 30, 2004 compared to a
pretax loss of $.30 million in the same period in fiscal 2004.  The reduction of
pretax loss was principally  attributable  increases in sales volumes  discussed
above,  partially  offset by  increases in selling,  general and  administrative
expenses and increases in interest expense.

**TERMINAL TRUCK/ROAD CONSTRUCTION SEGMENT*****Three months ended April 30***
For the three  months  ended April 30, 2004,  terminal  truck/road  construction
segment  sales were $22.7  million or 37% of the  Company's  consolidated  sales
compared  to $15.7  million or 31% for the same  period  last year.  Unit volume
sales of terminal  truck/road  construction  products  increased  by 27% for the
three  months  ended April 30, 2005  compared to the same period in fiscal 2004.
This increase was  principally  due to additional  export sales  associated with
foreign  stevedoring  operations,  and higher  domestic  sales to intermodal and
warehousing  customers.  Additionally,  this segment  continued to  experience a
rebound in the number of road sweepers sold to the domestic  rental market.  The
average unit price of terminal truck/road construction products increased by 13%
in the three months  ended April 30, 2005  compared to the same period in fiscal
2004.  Substantially all of this increase related to the product mix of terminal
truck products.

For the three  months  ended April 30, 2005,  terminal  truck/road  construction
segment  gross  profit  increased  49% and selling,  general and  administrative
expenses increased by 12% compared to the same period last year. The increase in
gross  profit was  principally  a result of the higher sales  volumes  described
above.  The  increase  in  selling,  general  and  administrative  expenses  was
principally due to higher promotional  expenses and commissions  associated with
improved sales and profitability.

The pretax income of the terminal truck/road  construction  segment increased to
$1.61 million for the three months ended April 30, 2005 compared to $.86 million
in the same  period  last year.  The pretax  income of the  terminal  truck/road
construction segment increased principally as a result of the sales volume gains
discussed above.

***Six months ended April 30***
For the six  months  ended  April 30,  2005,  terminal  truck/road  construction
segment  sales were $41.3  million or 37% of the  Company's  consolidated  sales
compared  to $29.7  million or 33% for

                                      -18-

the same period last year. Unit volume sales of terminal truck/road construction
products  increased by 27% for the six months  ended April 30, 2005  compared to
the same period in fiscal 2004.  This increase was  principally  due  additional
export sales associated with foreign stevedoring  operations and higher domestic
sales to  intermodal  and  warehousing  customers.  Additionally,  this  segment
continues  to  experience a rebound in the number of road  sweepers  sold to the
domestic  rental  market.   The  average  unit  price  of  terminal   truck/road
construction  products  increased  by 9% in the six months  ended April 30, 2005
compared to the same period in fiscal 2004. Substantially all of this unit price
increase related to the product mix of terminal truck products.

For the six  months  ended  April 30,  2004,  terminal  truck/road  construction
segment  gross  profit  increased  29% and selling,  general and  administrative
expenses increased by 10% compared to the same period last year. The increase in
gross profit was principally a result of higher sales volumes  described  above.
The increase in selling, general and administrative expenses was principally due
to higher  promotional  expenses and commissions  associated with improved sales
and profitability.

The pretax income of the terminal truck/road  construction  segment increased to
$2.05  million for the six months ended April 30, 2005 compared to $1.34 million
in the same  period  last year.  The pretax  income of the  terminal  truck/road
construction segment increased principally as a result of the sales volume gains
discussed above.

**LIQUIDITY AND CAPITAL RESOURCES**

The Company used existing credit lines,  proceeds from Industrial Revenue Bonds,
internally  generated  funds and supplier  financing to fund its  operations and
capital expenditures for the six months ended April 30, 2005.

Cash used in  operations  was $8.2  million  for the six months  ended April 30,
2005,  compared  to cash  provided  by  operations  was $.4 million for the same
period last year. Cash used in operations was principally due to net loss of $.9
million, an increase in inventories of $10.9 million and an increase in accounts
receivable  of $1.9  million.  These  uses of cash were  partially  offset by an
increase in accounts  payable of $2.4 million and a decrease in prepaid expenses
of $1.2 million.

Cash used in  investing  activities  was $1.3  million for the six months  ended
April 30, 2005  compared  to $.4  million  for the same  period  last year.  The
increase in cash used by  investing  activities  was  principally  due to higher
capital  expenditures  for the six months ended April 30, 2005 and proceeds from
the sale of a building and land in the first fiscal quarter of 2004.

Cash flow provided by financing  activities  was $9.5 million for the six months
ended  April 30, 2005  compared  to $.05  million for the same period last year.
This change principally resulted from higher borrowing in fiscal 2005 to finance
increased  inventory  and  the  use of  $5.3  million  in  fiscal  2004  for the
repurchase of the 1,050,879  shares of the Company's  common stock in a modified
Dutch auction tender offer.

The Company  believes that its cash flows from  operations,  its credit facility
with its lead bank and unused funds  restricted for future capital  expenditures
will be  sufficient  to  satisfy  its  future  working  capital  needs,  capital
expenditure  requirements and anticipated dividends.  The total amount of unused
revolving credit available to the Company was $4.7 million at April 30, 2005.

                                      -19-

The credit facility is collateralized by receivables, inventories, equipment and
certain real property. Under the terms of the Agreement, the Company is required
to  maintain  certain  financial  ratios  and other  financial  conditions.  The
Agreement  also  prohibits  the  Company  from  incurring   certain   additional
indebtedness,  limits  certain  investments,  advances  or loans  and  restricts
substantial asset sales and capital expenditures. The delay in providing audited
financial statements for the year ending October 31, 2004 would have constituted
a covenant  violation  pursuant to the Agreement.  The Company obtained a waiver
from its  lender  regarding  this  event.  The delay in  providing  the  audited
financial   statements  also  resulted  in   non-compliance   under  other  debt
agreements,  although the  non-compliance did not result in an event of default.
The Company has not received any default notifications.  Management believes all
default  conditions have now been remedied and the Company is in compliance with
its covenants under its lending agreements.

It is customary  practice for  companies in the  specialty  vehicle  industry to
enter into repurchase  agreements  with financing  institutions to provide floor
plan financing for dealers.  In the event of a dealer default,  these agreements
generally  require the repurchase of products at the original  invoice price net
of certain adjustments.  The risk of loss under the agreements is limited to the
risk that  market  prices for these  products  may  decline  between the time of
delivery to the dealer and time of  repurchased  and resale by the Company.  The
risk  is  spread  over  numerous  dealers  and  the  Company  has  not  incurred
significant  losses under these  agreements.  In the opinion of management,  any
future losses under these  agreements will not have a material adverse effect on
the  Company's  financial  position  or results  of  operations.  The  Company's
repurchase obligation under these agreements is limited to vehicles which are in
new  condition  and as to which the dealer  still  holds  title.  The  Company's
contingent  obligation under such agreements was  approximately  $2.6 million at
April 30, 2005.

***CRITICAL ACCOUNTING PRINCIPLES AND ESTIMATES***

The Company's  consolidated financial statements are prepared in conformity with
accounting  principles  generally accepted in the United States. The preparation
of these  financial  statements  requires the use of estimates,  judgments,  and
assumptions  that affect the reported  amounts of assets and  liabilities at the
date of the  financial  statements  and the  reported  amounts of  revenues  and
expenses  during  the  periods  presented.  We  believe  that  of  our  critical
accounting  policies,  the  following  may involve a higher degree of judgments,
estimates, and complexity:

**Inventories**

The Company values its  inventories at the lower of cost or market.  The company
has  chosen  the  first-in,   first-out   (FIFO)  cost  method  of  valuing  its
inventories. The effect of the FIFO method is to value ending inventories on the
balance  sheet at their  approximate  current or most  recent  cost.  The market
values for finished goods  inventories  are  determined  based on recent selling
prices.

**Goodwill and Other Assets**

In June 2002, the Financial  Accounting  Standards Board (FASB) issued Statement
of  Financial  Accounting  Standards  No. 142,  "Goodwill  and Other  Intangible
Assets" (SFAS No. 142).  SFAS No. 142 was  effective for fiscal years  beginning
after December 15, 2002.  Goodwill is no longer  amortized over future  periods,
but will be assessed for  impairment at least  annually using a fair value test.
The Company adopted this new standard on November 1, 2002.

                                      -20-

As of  October  31,  2004,  the  Company  tested for  impairment  of the bus and
terminal  truck/road  construction  business  segments using the discounted cash
flow  approach and  determined  that the fair values for each of these  segments
exceeded  the related  carrying  values.  On an on-going  basis,  and absent any
impairment  indicators,  the Company will  annually  conduct  similar  tests and
record any  impairment  loss.  Management  believes that the estimates of future
cash flows and fair values are reasonable; however, changes in estimates of such
cash flows and fair value could affect the evaluations.

**Insurance Reserves**

The  Company  failed  to  adequately   provide  for  estimated   future  workers
compensation  costs  related  to  certain  claims  that have been  denied by the
Company's excess liability  insurance carrier and for certain other claims. When
management  discovered the error, an independent  third party  administrator was
retained to estimate and determine the additional potential liability related to
these claims.  The Company is currently  disputing the denial of coverage by the
excess liability insurance carrier,  but the amount of future recovery,  if any,
can not be assured.

Generally,  the Company is self-insured  for worker's  compensation  for certain
subsidiaries and for all group medical insurance. Under these plans, liabilities
are recognized for claims incurred  (including claims incurred but not reported)
and changes in the reserves. At the time a workers' compensation claim is filed,
a  liability  is  estimated  to settle the claim.  The  liability  for  workers'
compensation claims is determined based on management's  estimates of the nature
and  severity of the claims and based on analyses by third party  administrators
and by various state statutes and reserve requirements. Because the liability is
an  estimate,  the  ultimate  liability  may be more or less than  reported.  If
previously  established  accruals are required to be adjusted,  such amounts are
included in cost of sales. Group medical reserves are funded through a trust and
are estimated using historical claims' experience.

Due to the nature of the Company's  products,  the Company is subject to product
liability claims in the normal course of business. To the extent permitted under
applicable law, the Company  maintains  insurance to reduce or eliminate risk to
the Company. This insurance coverage includes self-insured  retentions that vary
each year.

The Company maintains excess liability insurance with outside insurance carriers
to  minimize  its  risks  related  to  catastrophic  claims  in  excess  of  all
self-insured positions.  Any material change in the aforementioned factors could
have an adverse impact on our operating results.

**Warranties**

The Company's  products  generally carry explicit product warranties that extend
from  several  months to more  than a year,  based on terms  that are  generally
accepted in the marketplace.  Certain  components  included in the Company's end
products  (such as chassis,  engines,  axles,  transmissions,  tires,  etc.) may
include  warranties  from  original  equipment  manufacturers  (OEM).  These OEM
warranties are generally passed on to the end customer of the Company's products
and  the  customer  generally  deals  directly  with  the  applicable  component
manufacturer.  The Company records  provisions for estimated  warranty and other
related costs at the time of sale based on historical  warranty loss  experience
and periodically adjusts these provisions to reflect actual experience.  Certain
warranty and other related claims involve matters of dispute that

                                      -21-

ultimately are resolved by negotiation, arbitration or litigation. Infrequently,
a material  warranty  issue may arise which is beyond the scope of the Company's
historical experience. The Company provides for any such warranty issues as they
become known and  estimable.  It is  reasonably  possible that from time to time
additional  warranty and other related claims could arise from disputes or other
matters beyond the scope of the Company's historical experience.

**Revenue Recognition**

The Company  records  vehicle  sales and passes  title to the  customer,  at the
earlier of  completion of the vehicle and receipt of full payment or shipment or
delivery to the customer as specified by the customer  purchase order.  Customer
deposits  for partial  payment of vehicles  are  deferred and treated as current
liabilities until the vehicle is completed and recognized as revenue.

***NEW ACCOUNTING PRONOUNCEMENTS***

In November 2004, the FASB issued FASB Statement No. 151,  "Inventory  Costs: an
amendment  of ARB No.  43".  FASB No.  151 will no longer  permit  companies  to
capitalize  inventory  costs on their balance sheets when the production  defect
rate varies  significantly  from the expected rate. The statement also clarifies
that fixed overhead should be allocated to inventory based on "normal capacity".
The  statement is effective for the Company  beginning on November 1, 2005.  The
Company is unable to estimate the financial  statement  impact of this statement
at this time.
In December  2003,  the  Financial  Accounting  Standards  Board  (FASB)  issued
Interpretation  46R  (FIN  46R),  a  revision  to  Interpretation  46 (FIN  46),
Consolidation  of Variable  Interest  Entities.  FIN 46R  clarifies  some of the
provisions of FIN 46 and exempts certain entities from its requirements. FIN 46R
is effective at the end of the first interim period ending after March 15, 2004.
Entities that have adopted FIN 46 prior to this  effective  date can continue to
apply  the  provisions  of FIN 46 until the  effective  date of FIN 46R or elect
early  adoption  of FIN 46R.  The  adoption of FIN 46 and FIN 46R did not have a
significant impact on our financial statements.
FASB Statement No. 123, Accounting for Stock-Based Compensation,  was revised in
December 2004 ("Revised  Statement").  The Revised Statement also supersedes APB
Opinion  No. 25,  Accounting  for Stock  Issued to  Employees,  and its  related
implementation  guidance.  The Reviesed Statement  establishes standards for the
accounting for transactions in which an entity exchanges its equity  instruments
for goods or services. It also addresses  transactions in which an entity incurs
liabilities  in exchange for goods or services  that are based on the fair value
of the  entity's  equity  instruments  or that may be settled by the issuance of
those equity  instruments.  For the Company,  the Revised Statement is effective
November 1, 2005. The adoption of this Revised Statement is not expected to have
a material impact on our financial statements.

***CAUTIONARY  STATEMENTS  REGARDING RISKS AND UNCERTAINTIES THAT MAY AFFECT FUTURE******RESULTS***

This report and other written reports and oral statements made from time to time
by the Company  may contain  so-called  "forward-looking  statements"  about the
business,  financial  condition and  prospects of the Company,  all of which are
subject  to risks and  uncertainties.  One can  identify

                                      -22-

these forward-looking statements by the use of words such as "expect",  "plans",
"will",  "estimates",  "forecasts",  "projects",  and  other  words  of  similar
meaning. One can also identify them by the fact that they do not relate strictly
to historical or current facts. One should understand that it is not possible to
predict  or  identify  all  factors,  which  involve  risks  and  uncertainties.
Consequently,  the reader  should not  consider any such list or listing to be a
complete statement or all potential risks or uncertainties.

The  forward-looking  statements are made pursuant to the safe harbor provisions
of the Private  Securities  Litigation  Reform Act of 1995. The Company believes
the  assumptions  underlying  these  forward-looking  statements are reasonable;
however,  any of the  assumptions  could be inaccurate,  and  therefore,  actual
results  may differ  materially  from  those  projected  in the  forward-looking
statements due to certain risks and  uncertainties,  including,  but not limited
to, changes in funds budgeted by Federal,  state and local governments,  changes
in product demand,  the availability and price of key raw materials,  components
and  chassis,  various  inventory  risks due to  changes  in market  conditions,
changes in  competition,  substantial  dependence  on third  parties for product
quality, interest rate fluctuations, adequate direct labor pools, development of
new  products,  changes  in tax and other  governmental  rules  and  regulations
applicable  to the Company,  reliability  and timely  fulfillment  of orders and
other risks as  indicated  in the  Company's  filings  with the  Securities  and
Exchange  Commission.  The Company  undertakes no obligation to publicly release
any  revisions to any  forward-looking  statements  contained  herein to reflect
events or  circumstances  occurring  after the date  released  or to reflect the
occurrence of unanticipated events.

The  Company  does not  assume  the  obligation  to update  any  forward-looking
statement.  One should  carefully  evaluate such  statements in light of factors
described in the Company's filings with the Securities and Exchange  Commission,
especially on Forms 10-K, 10-Q and 8-K (if any).

                                      -23-

**Item 3 - Quantitative and Qualitative Disclosures About Market Risk**

There has been no material change in this disclosure.

**Item 4. Controls and Procedures**

For the period  covered by this report,  the Company  carried out an evaluation,
under the supervision and with the  participation  of the Company's  management,
including the Company's Chief Executive Officer and Chief Financial Officer,  of
the  effectiveness  of the  design and  operation  of the  Company's  disclosure
controls and procedures. Based upon that evaluation, the Chief Executive Officer
and Chief Financial Officer concluded that the Company's disclosure controls and
procedures  (as defined in Rule 13a - 15(e) or Rule  15d-15(e) of the Securities
Exchange  Act of 1934,  as amended  (the  "Exchange  Act") are not  effective to
ensure that  information  required to be disclosed by the Company in the reports
that it  files  or  submits  under  the  Exchange  Act is  recorded,  processed,
summarized  and reported  within the required time  periods.  There are inherent
limitations  to the  effectiveness  of any  system of  disclosure  controls  and
procedures.  Even effective  disclosure controls and procedures can only provide
reasonable assurance of achieving their control objectives.

Attached as  Exhibits  31.1 and 31.2 to this  report are  certifications  of the
Chief Executive  Officer and Chief Financial Officer required in accordance with
Rule 13a-14(a) of the Exchange Act. This portion of the Company's  annual report
includes the information  concerning the controls  evaluation referred to in the
certifications  and should be read in conjunction with the  certifications for a
more complete understanding of the topics presented.

Except as  described  below,  there were no changes  in the  Company's  internal
control over  financial  reporting  that  occurred  during this period that have
materially  affected,  or  are  reasonably  likely  to  materially  affect,  the
Company's  internal  control over  financial  reporting.  During their  year-end
review, KPMG LLP (KPMG), the Company's independent  accountants,  identified and
reported to management  and the Audit  Committee two material  weaknesses  under
standards  established by the Public Company Accounting Oversight Board (PCAOB).
A material weakness is a significant  deficiency,  or combination of significant
deficiencies,  that  results  in more than a remote  likelihood  that a material
misstatement of the annual or interim financial statements will not be prevented
or detected. A significant deficiency is a control deficiency, or combination of
control deficiencies,  that adversely affects the Company's ability to initiate,
authorize,  record,  process,  or report  external  financial  data  reliably in
accordance with generally  accepted  accounting  principles such that there is a
more than a more  likelihood  that a  misstatement  of the  company's  annual or
interim  financial  statements  that is more  than  inconsequential  will not be
prevented or detected.

The material weaknesses were identified as:

(1) Control Policies and Procedures

The Company did not have effective policies and procedures  regarding management
override of controls,  and it did not have  effective  policies  and  procedures
implementing  its Code of Conduct.  As a result,  it did not  maintain a control
environment  that promoted  open and candid  communication.  In some  instances,
certain officers and personnel did not communicate  critical  information needed
to properly record transactions. These deficiencies result in more than a remote
likelihood  that  a  material   misstatement  of  interim  or  annual  financial
statements could occur and not be detected.

                                      -24-

(2) Workers' Compensation Reserves

The Company had  inadequate  controls in place to record  worker's  compensation
reserves  in  accordance   with  generally   accepted   accounting   principles.
Specifically,  it did not have appropriate policies and procedures to ensure the
estimates provided by an independent  insurance  advisor,  which was utilized to
assist in  estimating  workers'  compensation  reserves were  appropriate.  As a
result,  workers  compensation  reserves were materially misstated in previously
filed  consolidated  financial  statements.  Historical  consolidated  financial
statements have been restated to correct these errors.

The Company has taken steps to correct the material  weaknesses  identified  and
will  continue to evaluate the material  weaknesses  and will take all necessary
action to correct the internal control deficiencies identified. The Company will
also further  develop and enhance its  internal  control  policies,  procedures,
systems  and staff to allow it to  mitigate  the risk that  material  accounting
errors  might  go  undetected  and be  included  in its  consolidated  financial
statements.

The Company contemplates  undertaking a thorough review of its internal controls
as part of the Company's  preparation for compliance with the requirements under
Section  404 of the  Sarbanes-Oxley  Act of 2002 and the  Company  is using this
review to further assist in identifying and correcting control deficiencies.  At
this time, the Company has not completed its review of the existing controls and
their  effectiveness.  Unless and until the material weaknesses described above,
or any identified  during this review,  are completely  remedied,  evaluated and
tested,  there can be no assurances that the Company will be able to assert that
its internal  control over  financial  reporting is  effective,  pursuant to the
rules adopted by the SEC under Section 404, when those rules take effect.

                                      -25-

**PART II - OTHER INFORMATION****Item 1 - Legal Proceedings**

         Not applicable

**Item 2 - Unregistered Sales of Equity Securities and Use of Proceeds**

     Information  regarding  the  repurchase  of common  stock  during the three
     months ended April 30, 2005 is as follows:

                                                                         Total Number           Maximum Number of
                                  Total                               Of Shares Purchased        Shares That May
                                Number of           Average           As Part of Publicly        Yet Be Purchased
                                  Shares           Price Paid           Announced Plans           Under the Plan
         Period                 Purchased          Per Share              or Programs              or Programs
         ------                 ---------          ---------              -----------              -----------
   02/01/05 -02/28/05               --                 --                     --                        --
   03/01/05 -03/31/05               --                 --                     --                        --
   04/01/05 -04/30/05               --                 --                     --                        --

**Item 3 - Defaults Upon Senior Securities**

         Not applicable

**Item 4 - Submission of Matters to a Vote of Security-Holders**

         Not applicable

**Item 5 - Other Information**

         Not applicable

**Item 6 - Exhibits**

         The exhibits  required to be filed  pursuant to Item 601 of  Regulation
         S-K and  listed in the  Exhibit  Index  that  immediately  follows  the
         signature page of this report.

                                      -26-

SIGNATURES

Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
Registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned, thereunto duly authorized.

                                       COLLINS INDUSTRIES, INC.
Dated:  July 29, 2005

                                       By:  /s/ Cletus C. Glasener
                                          --------------------------------------
                                          Cletus C. Glasener, Vice President of
                                          Finance and Chief Financial Officer
                                          (Signing on behalf of the registrant
                                          and as principal accounting officer)

                                      -27-

**EXHIBIT INDEX**Exhibit NumberDescription

(31.1)                    Certifications-CFO
(31.2)                    Certifications-CFO
(32.1)                    Certification of Periodic Report-CEO
(32.2)                    Certification of Periodic Report-CFO

                                      -28-
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