22

                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 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 September 30, 2003

     { }  TRANSITION  REPORT  PURSUANT TO SECTION 13 OR 15(d) OF THE  SECURITIES
              EXCHANGE ACT OF 1934 Commission file number 0-22268

                          NATIONAL R.V. HOLDINGS, INC.
             (Exact name of registrant as specified in its charter)

        Delaware                                             33-0371079
(State or other jurisdiction of            (I.R.S. Employer Identification No.)
 incorporation or organization)

 3411 N. Perris Blvd., Perris, California                         92571
 (Address of principal executive offices)                      (Zip Code)

       Registrant's telephone number, including area code: (909) 943-6007

     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 wether the registrant is an accelerated filer.

                                   YES __ NO X

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

Class                                        Outstanding at September 30, 2003
Common stock, par value                                    9,986,828
$.01 per share


<PAGE>


                          NATIONAL R.V. HOLDINGS, INC.

                                      INDEX

                                                                        PAGE
                         PART I - FINANCIAL INFORMATION

Item 1.    Consolidated Balance Sheets -
           September 30, 2003 and December 31, 2002                       3

           Consolidated Statements of Operations -
           Three and Nine Months Ended September 30, 2003 and 2002        4

           Consolidated Statements of Cash Flows -
           Nine Months Ended September 30, 2003 and 2002                  5

           Notes to Consolidated Financial Statements                   6 - 9

Item 2.    Management's Discussion and Analysis of
           Financial Condition and Results of Operations               10 - 16

Item 3.    Quantitative and Qualitative Disclosures about Market Risk    17

Item 4.    Controls and Procedures                                       18

                           PART II - OTHER INFORMATION

Item 6.    Exhibits and Reports on Form 8-K                              19

           Signature                                                     20




                                       2

<PAGE>


                          NATIONAL R.V. HOLDINGS, INC.
                           CONSOLIDATED BALANCE SHEETS
                      (In thousands, except share amounts)

                                                    September 30,   December 31,
                                                        2003            2002
                                                      -------         -------
                                                     (Unaudited)

                 ASSETS
Current assets:
  Cash and cash equivalents .......................    $     11       $     14
  Trade receivables, less allowance for doubtful
  accounts ($308 and $276 respectively)............      21,404          9,829
  Inventories......................................      63,910         72,532
  Deferred income taxes............................       6,152          6,005
  Income taxes receivable..........................         -            7,015
  Prepaid expenses.................................       1,506          2,134
                                                    -------------   ------------
    Total current assets...........................      92,983         97,529
Property, plant, and equipment, net................      41,461         43,230
Long-term deferred income taxes....................       4,107            367
Other..............................................       1,190          1,013
                                                    -------------   ------------
                                                       $139,741       $142,139
                                                    =============   ============

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
  Line of credit...................................    $  3,216       $  4,943
  Book overdraft...................................       1,442            943
  Current portion of long-term debt................          22             22
  Accounts payable.................................      19,739         13,483
  Accrued expenses.................................      20,496         22,291
                                                    -------------   ------------
    Total current liabilities......................      44,915         41,682
Long-term accrued expenses.........................       7,242          6,273
Long-term debt.....................................           2             19
                                                    -------------   ------------
Total Liabilities..................................      52,159         47,974
                                                    -------------   ------------
Commitments and contingencies

Stockholders' equity:
  Preferred stock - $.01 par value; 5000 shares
  authorized, 4000 issued and outstanding..........         -             -

  Common stock - $.01 par value; 25,000,000 shares
  authorized, 9,986,828 and 9,832,161 issued and
  outstanding, respectively........................         100             98
Additional paid-in capital.........................      34,817         34,302
Retained earnings..................................      52,665         59,765
                                                    -------------   ------------
                                                         87,582         94,165
                                                    -------------   ------------
    Total stockholders' equity.....................    $139,741       $142,139
                                                    =============   ============

                 See Notes to Consolidated Financial Statements.

                                       3

<PAGE>

                          NATIONAL R.V. HOLDINGS, INC.
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                    (In thousands, except per share amounts)
                                   (Unaudited)

                                          Three Months         Nine Months
                                       Ended September 30,  Ended September 30,
                                         2003    2002         2003      2002
                                         ----    ----         ----      ----
Net sales........................... $ 91,314  $ 72,417   $ 242,886   $ 239,204
Cost of goods sold..................   86,942    72,461     238,927     235,639
                                     --------- ---------  ----------  ----------
  Gross profit (loss)                   4,372       (44)      3,959       3,565
Selling expenses....................    3,101     4,126       9,186      10,953
General and administrative expenses.    1,683     1,673       5,760       6,242
Impairment of goodwill..............      -       6,126         -         6,126
                                     --------- ---------  ----------  ----------
  Operating loss....................     (412)  (11,969)    (10,987)    (19,756)
Interest expense....................       85        51         309         142
Other (income) expense..............       (2)      (45)         (6)       (444)
                                     --------- ---------  ----------  ----------
  Loss before income taxes..........     (495)  (11,975)    (11,290)    (19,454)
Benefit for income taxes............     (191)   (2,164)     (4,189)     (4,931)
                                     --------- ---------  ----------  ----------
  Net Loss.......................... $   (304) $ (9,811)  $  (7,101)  $ (14,523)
                                     ========= =========  ==========  ==========
Loss per common share:
  Basic............................. $  (0.03) $  (1.00)  $   (0.72)  $   (1.49)
  Diluted........................... $  (0.03) $  (1.00)  $   (0.72)  $   (1.49)

Weighted average number of shares
  Basic.............................    9,835     9,825       9,833       9,774
  Diluted...........................    9,835     9,825       9,833       9,774



                 See Notes to Consolidated Financial Statements.

                                       4

<PAGE>


                          NATIONAL R.V. HOLDINGS, INC.
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                 (In thousands)
                                   (Unaudited)

                                                            Nine Months
                                                        Ended September 30,
                                                           2003       2002
                                                           ----       ----
Cash flows from operating activities:
  Net loss......................................         $(7,101)   $(14,523)
  Adjustments to reconcile net loss to
  net cash provided by operating activities:
    Depreciation................................           2,959       2,847
    Impairment of goodwill......................              -        6,126
    Loss (gain) on asset disposal...............               3        (359)
    Changes in assets and liabilities:
      (Increase) decrease in trade receivables..         (11,575)      2,525
      Decrease in inventories...................           8,622       8,008
      Decrease in income taxes receivables......           7,015       1,990
      Decrease (increase) in prepaid expenses...             628      (1,445)
      Increase in book overdraft................             499       3,569
      Increase (decrease) in accounts payable...           6,256     (10,044)
      (Decrease) increase in accrued expenses...            (826)      2,861
      Increase in deferred income taxes.........          (3,887)       (459)
                                                        ---------   ---------
   Net cash provided by operating activities....           2,593       1,096
                                                        ---------   ---------

Cash flows from investing activities:
  (Increase) decrease in other assets...........            (177)        216
  Proceeds from the sale of assets..............               3       2,424
  Purchases of property, plant and equipment....          (1,196)     (4,069)
                                                        ---------   ---------
   Net cash used in investing activities........          (1,370)     (1,429)
                                                        ---------   ---------

Cash flows from financing activities:
  Net (payments on) advances under line of
   credit.......................................          (1,727)      1,114
  Principal payments on long-term debt..........             (17)        (16)
  Proceeds from issuance of common stock........             518       1,170
                                                        ---------   ---------
   Net cash (used in) provided by financing
    activities..................................          (1,226)      2,268
                                                        ---------   ---------

Net (decrease) increase in cash.................              (3)      1,935
Cash, beginning of period.......................              14          22
                                                        ---------   ---------
Cash, end of period.............................         $    11    $  1,957
                                                        =========   =========

                 See Notes to Consolidated Financial Statements.


                                      5

<PAGE>



NATIONAL R.V. HOLDINGS, INC.
PART I, ITEM 1

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

NOTE 1 - GENERAL

     In the opinion of National R.V. Holdings, Inc. (collectively, with its
subsidiaries National R.V., Inc. (NRV) and Country Coach, Inc. (CCI) referred to
herein as the "Company"), the accompanying unaudited consolidated financial
statements contain all adjustments, consisting only of normal recurring
adjustments, necessary for the fair presentation of the financial position,
results of operations and cash flows for all periods presented. Results for the
interim periods are not necessarily indicative of the results for an entire year
and the financial statements do not include all of the information and footnotes
required by generally accepted accounting principles. These financial statements
should be read in conjunction with the financial statements and notes thereto
contained in the Company's latest annual report on Form 10-K. Certain
reclassifications, none of which affected net loss or retained earnings, have
been made to prior period amounts to conform to current period presentation.


NOTE 2 - CONTINUATION OF LOSSES

     The Company experienced a net loss in the third quarter of 2003 totaling
$0.3 million and a $7.1 million net loss for the nine months ended September 30,
2003. The Company had net losses totaling $21.4 million and $11.5 million for
the years ended December 31, 2002 and 2001, respectively. Continued losses could
reduce the Company's liquidity and cause the Company to reduce its expenditures
on capital improvements, machinery and equipment, and research and development.
This could have a negative effect on the Company's ability to maintain
production schedules, manufacture products of high quality, and develop and
manufacture new products that will achieve market acceptance. This could, in
turn, have a negative impact on the Company's sales and earnings. If the Company
continues to suffer losses, the Company could be unable to implement its
business and financial strategies or meet its obligations when due. The
Company's losses in 2002 and 2001 were mainly caused by (i) the recognition of
the complete impairment of the Company's goodwill in 2002, (ii) continued
significant discounting to wholesale distributors, (iii) continued high warranty
costs, (iv) excess manufacturing capacity and related fixed costs caused by
continued low volumes, and (v) a workers' compensation reserve increase in 2002.
These factors were exacerbated by weaker general economic conditions and
declining consumer confidence during the period.

     As of September 30, 2003, the Company has recorded a deferred tax asset of
$10.3 million. Realization is dependent on generating sufficient taxable income
prior to expiration of the loss carryforwards. Although realization is not
assured, management believes it is more likely than not that all of the deferred
tax asset will be realized. The amount of the deferred tax asset considered
realizable however, could be reduced in the near term if estimates of future
taxable income during the carryforward period are reduced.

                                       6

<PAGE>

NOTE 3 - Supplemental Balance Sheet Information

Inventories consist of the following (in thousands):

                                                  September 30,  December 31,
                                                      2003           2002
                                                      ----           ----
Finished goods................................      $ 12,910       $ 20,671
Work-in-process...............................        22,972         25,391
Raw materials.................................        21,437         16,309
Chassis.......................................         6,591         10,161
                                                    --------       --------
                                                    $ 63,910       $ 72,532
                                                    ========       ========

Accrued expenses consist of the following (in thousands):

                                                  September 30,  December 31,
                                                      2003           2002
                                                      ----           ----
Workers' compensation self insurance reserve..      $ 10,213       $  7,794
Motorhome warranty reserve....................         9,721         11,840
Payroll and other accrued expenses............         7,804          8,930
                                                    --------       --------
                                                    $ 27,738       $ 28,564
                                                    ========       ========


NOTE 4 - RECENT ACCOUNTING PRONOUNCEMENTS

     In July 2002, the Financial Accounting Standards Board issued SFAS No. 146,
"Accounting for Costs Associated with Exit or Disposal Activities." SFAS No. 146
requires recognition of a liability for a cost associated with an exit or
disposal activity when the liability is incurred, as opposed to when the entity
commits to an exit plan under previous guidance. This statement is effective for
exit or disposal activities initiated after December 31, 2002. The Company
adopted SFAS No. 146 on January 1, 2003, which had no material impact on the
Company's consolidated financial statements.

NOTE 5 - CREDIT FACILITY

     The Company has an asset-based revolving credit facility of $15 million
with UPS Capital Corporation ("UPSC"). This credit facility expires August 2005.
The Company has reserved $0.3 from the line-of-credit for a contingent
liability. The remaining $14.7 was available for general corporate and working
capital needs and capital expenditures. The Company was able to provide
alternative security, in the form of state workers' compensation fund insurance,
for its NRV self-insured workers' compensation program starting in July 2003.
This allowed for the removal of the letter-of-credit that secured the
self-insured workers' compensation program and freeing up $5.3 of the
line-of-credit. Amounts borrowed under the revolving credit facility bear
interest at the prime rate listed in the Wall Street Journal plus 0.75
percentage points. The credit facility contains, among other provisions, certain
financial covenants, including net worth requirements. At September 30, 2003,
$11.5 was available for use under this facility and the Company was not in
default with any covenants of its loan agreement with UPSC.

                                       7

<PAGE>

NOTE 6 - STOCK BASED COMPENSATION

     The Company has six fixed option plans that reserve shares of common stock
for issuance to executives, key employees and directors. The Company has also
issued fixed options outside of such plans pursuant to individual stock option
agreements. Options granted to non-employee directors generally vest immediately
upon grant and expire five to ten years from the date of grant. Options granted
to employees generally vest in three equal annual installments and expire five
years from the date of grant. The price of the options granted pursuant to these
plans will not be less than 100 percent of the market value of the shares on the
date of grant. There were no options granted during 2003 or 2002.

     No compensation cost has been recognized for these fixed options in the
financial statements. The following table illustrates the effect on net loss and
loss per share if the Company had applied the fair value recognition provisions
of FASB Statement No. 123, Accounting for Stock-Based Compensation, to
stock-based employee compensation:

In thousands, except per share amounts

                                          Three Months          Nine Months
                                        Ended September 30,  Ended September 30,
                                        -------------------  -------------------
                                            2003     2002       2003     2002
                                            ----     ----       ----     ----
Net loss     As reported.................. $(304)  $(9,811)   $(7,101) $(14,523)
             Deduct total stock-based
             employee compensation expense
             determined under fair value
             based method for all awards,
             net of related tax effects...    63       120        250       712
                                          ------  --------   -------- ---------
             Pro forma.................... $(367)  $(9,931)   $(7,351) $(15,235)
                                          ======  ========   ======== =========

Basic Loss   As reported.................. $(0.03) $ (1.00)   $ (0.72) $  (1.49)
per share    Deduct total stock-based
             employee compensation expense
             determined under fair value
             based method for all awards,
             net of related tax effects...   0.01     0.01       0.03      0.07
                                           ------  --------   -------- ---------
             Pro forma.................... $(0.04)  $(1.01)   $ (0.75) $  (1.56)
                                           ======= ========   ======== =========

Diluted Loss As reported.................. $(0.03) $ (1.00)   $ (0.72) $  (1.49)
per share    Deduct total stock-based
             employee compensation expense
             determined under fair value
             based method for all awards,
             net of related tax effects...   0.01     0.01       0.03      0.07
                                           ------- --------   -------- ---------
           Pro forma...................... $(0.04)  $(1.01)   $ (0.75) $  (1.56)
                                           ======= ========   ======== =========

     The weighted average fair value of the options has been estimated on the
date of grant using the Black-Scholes option pricing model with the following
assumptions used for grants in 2001 and 2000 respectively. There were two grants
of 5 year and 10 year vesting in both 2001 and 2000 and the assumptions for
those plans are as follows: For the 5 year plan in 2001 the volatility is 45.4%,
the expected term of the grant is 4.3 years, and the risk-free interest rate is
4.4%. The 2001 10 year vesting assumptions are: The volatility is 45.4%, the
expected term is 4.5 years and the risk free rate is 4.4%. The assumptions for
the 5-year plan in 2000 are: volatility is 46.4%, the expected term is 4.3
years, and the risk-free rate is 6.12%. The assumptions for the 10-year plan in
2001 are: volatility is 46.4%, expected term is 4.5 years and the risk-free rate
is 6.12%.

                                       8

<PAGE>

NOTE 7 - LOSS PER SHARE

     Basic loss per share is based upon the weighted average number of common
shares outstanding during a period. Diluted loss per share is based upon the
weighted average number of common shares plus the incremental dilutive effect of
the securities convertible to common stock. The difference in the shares used to
determine basic and diluted EPS is as follows:

                                           Three Months         Nine Months
                                         Ended September 30, Ended September 30,
                                         ------------------- -------------------
                                             2003     2002       2003     2002
                                             ----     ----       ----     ----
Net loss..............................      $(304)  $(9,811)  $(7,101) $(14,523)
Basic weighted average common shares
 outstanding..........................      9,835     9,825     9,833     9,774
Effect of dilutive stock options......         -         -         -         -
                                            ------  --------   -------- --------
Diluted weighted average common shares
 outstanding..........................      9,835     9,825      9,833    9,774
                                           =======  ========   ======== ========
Basic loss per share..................     $(0.03)  $ (1.00)   $ (0.72) $ (1.49)
                                           =======  ========   ======== ========
Diluted loss per share................     $(0.03)  $ (1.00)   $ (0.72) $ (1.49)
                                           =======  ========   ======== ========
Outstanding options excluded as impact
 would be anti-dilutive...............        132       191        471    1,229


8 - COMMITMENTS AND GUARANTEES

     As is customary in the industry, the Company generally agrees with its
dealers' lenders to repurchase any unsold RVs if the dealers become insolvent
within one year of the purchase of such RVs. Although the total contingent
liability under these agreements approximates $85.1 million at September 30,
2003, as with accounts receivable, the risk of loss is spread over numerous
dealers and lenders and is further reduced by the resale value of the RVs which
the Company would be required to repurchase. Losses under these agreements have
not been material in the past and management does not believe that any future
losses under such agreements will have a material adverse effect on the
Company's consolidated financial position or results of operations.

     The Company's warranty reserve is established based on its best estimate of
the amounts necessary to settle future and existing claims on products sold as
of the balance sheet date. The Company records an estimate for future
warranty-related costs based on recent actual warranty claims. Also, the
Company's recall reserve is established, as necessary, based on management's
estimate of the cost per unit to remedy the problem and the estimated number of
units that will ultimately be brought in for the repair.

Nine Months Ended September 30, 2003

                         Beginning                                  Ending
                       Balance as of                            Balance as of
                    December 31, 2002  Additions  Deductions  September 30, 2003
                    -----------------  ---------  ----------  ------------------
Warranty reserve
September 30, 2003...    $11,840        $3,700       $5,819         $9,721


                                       9

<PAGE>


NATIONAL R.V. HOLDINGS,  INC. PART I, ITEM 2 - MANAGEMENT'S  DISCUSSION AND
ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Disclosure Regarding Forward Looking Statements

     This Quarterly Report on Form 10-Q contains forward-looking statements
within the meaning of the Private Securities Litigation Reform Act of 1995.
Investors are cautioned that forward-looking statements are inherently
uncertain. Actual performance and results may differ materially from that
projected or suggested herein due to certain risks and uncertainties including,
without limitation, potential fluctuations in the Company's operating results;
continuation of losses; seasonality and economic conditions; dependence on
certain dealers and concentration of dealers in certain regions; dependence on
chassis suppliers; potential liabilities under repurchase agreements;
competition; government regulation; warranty claims; and product liability.
Certain risks and uncertainties that could cause actual results to differ
materially from that projected or suggested are set forth in the Company's
filings with the Securities and Exchange Commission (the "SEC") and the
Company's public announcements, copies of which are available from the SEC or
from the Company upon request.

Critical Accounting Policies


     Long-Lived Assets. The Company reviews long-lived assets for impairment
whenever events or changes in circumstances indicate that the carrying amount of
an asset might not be recoverable. If indicators of impairment were present, the
Company would evaluate the carrying value of property and equipment and
intangibles, in relation to estimates of future undiscounted cash flows of the
underlying business, which are based on judgment and assumptions.

     Warranty. The Company's warranty reserve is established based on its best
estimate of the amounts necessary to settle future and existing claims on
products sold as of the balance sheet date. The Company records an estimate for
future warranty-related costs based on recent actual warranty claims. Also, the
Company's recall reserve is established, as necessary, based on management's
estimate of the cost per unit to remedy the problem and the estimated number of
units that will ultimately be brought in for the repair. While the Company's
warranty costs have historically been within its expectations and the provisions
established, the Company cannot guarantee that it will continue to experience
the same warranty costs that it has in the past. A significant increase in
dealer shop rates, the cost of parts or the frequency of claims could have a
material adverse impact on the Company's operating results for the period or
periods in which such claims or additional costs materialize.

     Revenue Recognition. Motorhome and towables sales are recorded by the
Company when accepted by the dealer rather than at the time of shipment as in
earlier years. This change in accounting principle was made to implement SEC
Staff Accounting Bulletin No. 101 (SAB 101), as amended. SAB 101 requires that
four basic criteria must be met before revenue can be recognized: (1) persuasive
evidence of an arrangement exists; (2) delivery has occurred or services
rendered; (3) the fee is fixed and determinable; and (4) collectibility is
reasonably assured. Should changes in conditions cause management to determine
these criteria are not met for certain future transactions, revenue recognized
for any reporting period could be adversely affected.

                                       10

<PAGE>

     Legal Proceedings. The Company is currently involved in certain legal
proceedings and has accrued its estimate of the probable costs for the
resolution of these claims. This estimate has been developed in consultation
with counsel handling the Company's defense in these matters and is based upon
an analysis of potential results, assuming a combination of litigation and
settlement strategies.

     Deferred Tax Asset. As of September 30, 2003, the Company has recorded a
deferred tax asset of $10.3 million. Realization is dependent on generating
sufficient taxable income prior to expiration of the loss carryforwards.
Although realization is not assured, management believes it is more likely than
not that all of the deferred tax asset will be realized. The amount of the
deferred tax asset considered realizable however, could be reduced in the near
term if estimates of future taxable income during the carryforward period are
reduced.

Liquidity and Capital Resources

     At September 30, 2003, the Company had working capital of $48.1 million
compared to $55.8 million at December 31, 2002.

     The Company's primary sources of liquidity are internally generated cash
from operations and available borrowings under its credit facility. During the
first nine months of 2003, the Company provided cash from operations of $2.6
million, compared to $1.1 million of cash provided from operations during the
first nine months of 2002. This increase was due primarily to a $8.6 million
decrease in inventories, a $7.0 million receipt of income taxes receivable, and
an increase of $6.3 million in accounts payable, partially offset by an increase
of $11.6 million in trade receivables, a $3.9 million increase in deferred taxes
and a $7.1 million net loss that includes $3.0 million of depreciation. The
increase in accounts payable is primarily attributable to an increase in
purchases due to increased production during the quarter. The decrease in
inventories reflects the Company's continuing efforts to manage working capital.

     Net cash used in investing activities was $1.4 million for the nine months
ended September 30, 2003. This represents primarily the purchase of property,
plant and equipment totaling $1.2 million.

     Net cash used in financing activities was $1.2 million for the nine months
ended September 30, 2003. This represents net advances on the line of credit
totaling $1.7 million, partially offset by proceeds from the issuance of common
stock related to the exercise of stock options totaling $0.5 million.

     The Company has an asset-based revolving credit facility of $15 million
with UPS Capital Corporation ("UPSC"). This credit facility expires August 2005.
The Company has reserved $0.3 million from the line-of-credit for a contingent
liability. The remaining $14.7 million is available for general corporate and
working capital needs and capital expenditures. The Company was able to provide
alternative security, in the form of state workers' compensation fund insurance
for its NRV self-insured workers' compensation program starting in July 2003.
This allowed for the removal of the letter-of-credit that secured the
self-insured workers' compensation program and freeing up $5.3 million of the
line-of-credit. Amounts borrowed under the revolving credit facility bear
interest at the prime rate listed in the Wall Street Journal plus 0.75
percentage points. The credit facility contains, among other provisions, certain
financial covenants, including net worth requirements. At September 30, 2003,
$11.5 million was available for use under this facility and the Company was not
in default with any covenants of its loan agreement with UPSC.

                                       11

<PAGE>

     The Company's consolidated financial statements have been presented on the
basis that it will continue as a going-concern, which contemplates the
realization of assets and the satisfaction of liabilities in the normal course
of business. The Company has recorded net losses of $21.4 million and $11.5
million and recorded net income of $10.0 million for the years ended December
31, 2002, 2001 and 2000, respectively. The Company has used cash from operating
activities of $4.4 million, $12.6 million and provided cash from operating
activities of $26.3 million for the years ended December 31, 2002, 2001 and
2000, respectively.

     The Company has funded its financial needs primarily through operations and
its existing line of credit. At September 30, 2003, the Company had cash and
cash equivalents of $11,000, working capital of $48.1 million, and $11.5 million
available under the credit facility. The Company remains dependent upon its
ability to obtain outside financing either through the issuance of additional
shares of its common stock or through borrowings until it achieves sustained
profitability through a combination of increased sales and improved product
margins.

     Management intends to continue a variety of initiatives to improve its
working capital position, including i) head count rebalancing to sustainable
production levels, ii) an engineering review of material components for the
removal of non-value added items to reduce both material costs and assembly
steps, iii) continued focus on improving quality through comprehensive
inspections and timely reporting of failures, iv) manufacturing efficiency
improvements through longer lead times for production increases allowing better
training of new hires to the direct work force, v) non-producing asset
dispositions, vi) continued reduction in all categories of inventory, vii)
pursuing the reduction of workers' compensation claims at NRV through the
implementation of the "Dupont" system, viii) staggering of model year changes to
facilitate more effective introductions of product changes to manufacturing and
ix) continuing to seek improved manufacturing methods. The Company's success
in the execution of these initiatives may have a significant impact on the
Company's liquidity during the next 12 months.

     The Company believes the combination of internally generated funds, working
capital, and unused borrowing availability will be sufficient to meet the
Company's planned capital and operational requirements for at least the next 12
months. Should the Company require further capital resources during the next 12
months, it would most likely address such requirement through a combination of
sales of its products, sales of equity securities, the sale of excess assets
and/or additional debt financings. If circumstances changed and additional
capital was needed, no assurance can be given that the Company would be able to
obtain such additional capital resources.

     If unexpected events occur requiring the Company to obtain additional
capital and it is unable to do so, it then might attempt to preserve its
available resources by deferring the creation or satisfaction of various
commitments, deferring the introduction of various products or entry into
various markets, or otherwise scaling back its operations. If the Company were
unable to raise such additional capital or defer certain costs as described
above, such inability would have an adverse effect on the financial position,
results of operations, cash flows and prospects of the Company.

                                       12

<PAGE>

Results of Operations


                                            Three Months        Nine Months
                                        Ended September 30,  Ended September 30,
                                           2003     2002         2003     2002
                                           ----     ----         ----     ----
Net sales...........................      100.0%   100.0%       100.0%   100.0%
Cost of goods sold..................       95.2    100.1         98.4     98.5
                                          -------  -------      -------  -------
      Gross profit (loss)...........        4.8     (0.1)         1.6      1.5
                                          -------  -------      -------  -------
Selling expenses....................        3.4      5.7          3.8      4.6
General and administrative expenses.        1.8      2.2          2.4      2.6
Impairment of goodwill..............        0.0      8.5          0.0      2.6
                                          -------  -------      -------  -------
      Operating loss................       (0.4)   (16.5)        (4.6)    (8.3)
Interest expense....................        0.1      0.0          0.1      0.1
Other (income) expense..............        0.0     (0.1)         0.0     (0.2)
                                          -------  -------      -------  -------
      Loss before taxes.............       (0.5)   (16.5)        (4.7)    (8.2)
Benefit for income taxes............       (0.2)    (3.0)        (1.7)    (2.1)
                                          -------  -------      -------  -------
      Net loss......................       (0.3)%  (13.5)%       (3.0)%   (6.1)%
                                          =======  =======      =======  =======

In thousands, except percentages
Net sales

                                  Three Months               Nine Months
                               Ended September 30,        Ended September 30,
                                 Percent Change             Percent Change
                               ----------------------   ----------------------
                                 2003           2002      2003            2002
                                 ----           ----      ----            ----
Net sales.................     $91,314  26.1%  $72,417  $242,886  1.5%  $239,204


     Net sales of $91.3 million for the quarter ended September 30, 2003
represents an increase of $18.9 million or 26.1% from the same quarter last
year. Third quarter wholesale unit shipments of diesel motorhomes were 297, up
41% from 211 units last year. Quarterly shipments of gas motorhomes were 321, up
38% from 232 units last year. Quarterly shipments of towable products were 355,
down 7% from 383 units last year.

     Wholesale unit shipments of diesel motorhomes for the nine months were 752,
down 2% from 765 units last year. Shipments of gas motorhomes for the nine
months were 946, up 26% from 752 units last year. Year-to-date shipments of
towable products were 1,220, down 4% from 1,266 units last year.

     Revenues in the quarter for the National RV division were $48.1 million, up
15% from $42.0 last year. Revenues in the quarter for the Country Coach division
were $42.0 million, up 34% from $31.3 million last year. National RV revenues
for the nine months were $149.9 million, up 4% from $144.2 million last year.
Country Coach revenues for the nine months were $91.2 million, down 2% from
$93.4 million last year.

                                       13

<PAGE>

Gross profit margin

                                  Three Months               Nine Months
                               Ended September 30,        Ended September 30,
                                 Percent Change             Percent Change
                               ----------------------   ----------------------
                                 2003           2002      2003            2002
                                 ----           ----      ----            ----
Gross profit margin.......       4.8%  580.0%   (0.1)%    1.6%    6.7%    1.5%



     The primary factors that led to a 4.8% gross profit margin for the third
quarter 2003 compared to a -0.1% gross margin for the same period last year,
were higher production volumes, reduced warranty costs, and reduced discounting.
Gross profit margin improved by 6.7% during the first nine months of 2003
compared to the same period last year. The primary reason for the improved
margin is an increase in sales.

     The gross profit margin improvement at the Company's National RV division
was driven by improved sales in the gas motorhome segment. The Company
experienced an increase in gas unit shipments of 26% during the nine months
ended September 30, 2003 compared to the same period last year. The Company's
Country Coach division experienced gross profit margin improvement due to
improved production efficiencies and improved sales due to the newly released
Inspire.

In thousands, except percentages
Selling expenses

                                  Three Months               Nine Months
                               Ended September 30,        Ended September 30,
                                 Percent Change             Percent Change
                               ----------------------   ----------------------
                                 2003           2002      2003            2002
                                 ----           ----      ----            ----
Selling expenses..............   3,101 (24.8)%  4,126     9,186  (16.1)% 10,953
as a percentage of net sales..     3.4%           5.7%      3.8%            4.6%

     Selling expenses totaled $3.1 million or 3.4% of net sales for the third
quarter 2003 compared to $4.1 million or 5.7% of net sales for the same quarter
last year. Additionally, for the nine months ended September 30, 2003 selling
expenses, as a percentage of net sales declined by 16.1% compared to the same
period last year. Sales costs have decreased due to concerted efforts by
management to reduce advertising, giveaways and sales commissions.

                                       14

<PAGE>

In thousands, except percentages
General and administrative expenses

                                  Three Months               Nine Months
                               Ended September 30,        Ended September 30,
                                 Percent Change             Percent Change
                               ----------------------   ----------------------
                                 2003           2002      2003            2002
                                 ----           ----      ----            ----
General and administrative
expenses......................   1,683   0.6%   1,673     5,760  (7.7)%   6,242
as a percentage of net sales..     1.8%           2.2%      2.4%            2.6%


     General and administrative expenses totaling $1.7 million for the quarter
ended September 30, 2003 was flat compared to the same period last year. As a
percentage of net sales, general and administrative expenses decreased to 1.8%
from 2.2% for the same period last year as a result of improved sales during
2003. Additionally, for the nine months ended September 30, 2003 general and
administrative expenses declined by 7.7% compared to the sames period last year,
as a percentage of net sales decreased to 2.4% from 2.6% for the same period
last year. The reduction in general and administrative expenses occurred
primarily due to the reduction in expenses associated with the aircraft that was
sold during 2002.

In thousands, except percentages
Impairment of goodwill

                                  Three Months               Nine Months
                               Ended September 30,        Ended September 30,
                                 Percent Change             Percent Change
                               ----------------------   ----------------------
                                 2003           2002      2003            2002
                                 ----           ----      ----            ----
Impairment of goodwill........     -   (100.0)% 6,126       -  (100.0)%   6,126
as a percentage of net sales..   0.0%             8.5%     0.0%             2.6%

     The Company recognized the complete impairment of goodwill during the third
quarter of 2002.

In thousands, except percentages
Interest expense

                                  Three Months               Nine Months
                               Ended September 30,        Ended September 30,
                                 Percent Change             Percent Change
                               ----------------------   ----------------------
                                 2003           2002      2003            2002
                                 ----           ----      ----            ----
Interest expense..............     85   66.7%      51      309  117.6%      142

     Interest expense for the three months ended September 30 2003 and 2002 was
$0.09 million and $0.05 million, respectively. As a percentage of net sales,
interest expense for these same periods was 0.1% and 0.1%, respectively.
Additionally, for the nine months ended September 30 2003 and 2002, interest
expense was $0.3 million and $0.1 million and as a percentage of net sales
remained at 0.1%. Interest expense represents the interest and fees paid on the
Company's credit facility.

In thousands, except percentages
Other (income) expense

                                  Three Months               Nine Months
                               Ended September 30,        Ended September 30,
                                 Percent Change             Percent Change
                               ----------------------   ----------------------
                                 2003           2002      2003            2002
                                 ----           ----      ----            ----
Other (income) expense........     (2) (95.5)%    (45)      (6)  (98.6)%   (444)

     Other income in 2003 is comprised of interest income earned on cash in the
Company's general bank account. As a percentage of net sales the amount is not
material. Other income during 2002 is primarily the result of the sale of the
Company's airplane.

                                       15

<PAGE>

In thousands, except percentages
Benefit for income taxes

                                  Three Months               Nine Months
                               Ended September 30,        Ended September 30,
                                 Percent Change             Percent Change
                               ----------------------   ----------------------
                                 2003           2002      2003            2002
                                 ----           ----      ----            ----
Benefit for income taxes......   (191) (91.2)% (2,164)  (4,189) (15.0)% (4,931)
as a percentage of net sales..   (0.2)%          (3.0)%   (1.7)%          (2.1)%

     The benefit for income taxes for the three and nine months ended September
30, 2003 was $0.2 million and $4.2, million respectively. The benefit for income
taxes on a percentage of sales basis for the three and nine months ended
September 30, 2003 was (0.2)% and (1.7)% respectively. Compared to the same
periods last year the tax benefits were $2.2 million and $4.9 million
respectively. On a percentage of sales basis they were (3.0)% and (2.1)%
respectively. The effective tax rate for the nine months ended September 30,
2003 was 37.0% and 25.3% for the same period last year. The lower effective tax
rate in 2002 is due to the impairment of goodwill.

                                       16

<PAGE>


NATIONAL R.V. HOLDINGS, INC.
PART I, ITEM 3 - QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK

     The Company is exposed to interest rate risk from borrowings under the
revolving credit facility. As discussed in Note 5 to the unaudited Consolidated
Financial Statements, amounts borrowed under this credit facility bear interest
at the prime rate plus 0.75 percentage points. While changes in the prime rate
may affect our financial results, we believe the effect, if any, will not be
material. All other information about market risks for the nine months ended
September 30, 2003 does not differ materially from that discussed under Item 7A
of the Company's Annual Report on Form 10-K for the year ended December 31,
2002. A hypothetical 100 basis point increase in interest rates, based on the
September 30, 2003 line-of-credit balance, would increase our net loss for the
nine months ended September 30, 2003 by approximately $0.02 million. Any future
gains or losses may differ materially from this hypothetical amount based on the
timing and amount of actual interest rate changes and the actual term loan
balance.

                                       17


<PAGE>


NATIONAL R.V. HOLDINGS, INC.
PART I, ITEM 4 - CONTROLS AND PROCEDURES

     The Company maintains disclosure controls and procedures that are designed
to ensure that information required to be disclosed in the Company's reports
under the Securities Exchange Act of 1934 (the "Exchange Act") is recorded,
processed, summarized and reported within the time periods specified in the
SEC's rules and forms, and that such information is accumulated and communicated
to the Company's management, including its Chief Executive Officer and Chief
Financial Officer, as appropriate, to allow timely decisions regarding required
disclosure based closely on the definition of "disclosure controls and
procedures" in Exchange Act Rule 13a-14(c). In designing and evaluating the
disclosure controls and procedures, management recognized that any controls and
procedures, no matter how well designed and operated, can provide only
reasonable assurance of achieving the desired control objectives.

     As of the end of the quarter 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 the
Company's Chief Financial Officer, of the effectiveness of the design and
operation of the Company's disclosure controls and procedures. Based on the
foregoing, the Company's Chief Executive Officer and Chief Financial Officer
concluded that the Company's disclosure controls and procedures were effective.

     There have been no significant changes in the Company's internal controls
over financial reporting during the three months ended September 30, 2003 that
have materially affected, or is reasonably likely to materially affect, the
Companys internal control over financial reporting.

                                       18

<PAGE>


NATIONAL R.V. HOLDINGS, INC.
PART II - OTHER INFORMATION

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

       A. Exhibits

     31.1  Certification of Chief Executive Officer pursuant to Section 301 of
           the Sarbanes-Oxley Act of 2002.

     31.2  Certification of Chief Financial Officer pursuant to Section 301 of
           the Sarbanes-Oxley Act of 2002.

     32.1  Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant
           to Section 906 of the Sarbanes-Oxley Act of 2002.



       B. Form 8-K

    (1) On July 22, 2003, the Company filed a Current Report on Form 8-K
        furnishing under Item 9 the Company's financial results for the second
        quarter of 2003.

    (2) On August 06, 2003, the Company filed a Current Report on Form 8-K
        disclosing under Item 5 Other Events, that the Board of Directors of the
        Company had appointed Bradley C. Albrechtsen, the Company's President
        and Chief Executive Officer, as President of the Company's National RV,
        Inc. division, succeeding National RV, Inc. founder Wayne Mertes.

    (3) On August 19, 2003, the Company filed a Current Report on Form 8-K
        disclosing under Item 5 Other Events, that Wayne Mertes, 67, resigned
        from the Board of Directors of the Company.


                                       19


<PAGE>


SIGNATURE



     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.

                                                    NATIONAL R.V. HOLDINGS, INC.
                                                            (Registrant)

Date: November 13, 2003                             By /s/ MARK D. ANDERSEN

                                                    Mark D. Andersen
                                                    Chief Financial Officer
                                                    (Principal Accounting and
                                                     Financial Officer)

                                       20