The Coast Distribution System Reports Q3 Results
14 November 1997
The Coast Distribution System Reports Third Quarter Results
SAN JOSE, Calif., Nov. 14 -- The Coast Distribution System
(Amex: CRV) today reported financial results for the third quarter and nine
months ended September 30, 1997.
Net sales for the recent third quarter increased 1% to $37,847,000 from
$37,552,000 for the third quarter of 1996. The Company reduced its operating
loss for the quarter to $56,000, from $841,000 for the third quarter of
1996 through a combination of increased sales, improved gross margin and
reduced operating expenses. The Company's net results in the third quarter of
1997 were impacted by the loss reported on the sale of its European
investment, H. Burden Ltd., and a reduction in investment income due to the
sale of Burden and a loss at HWH, in which the Company owns a 35% interest.
The Company reported a net loss during the third quarter of 1997 of
$1,450,000, or $0.28 per share, as compared to a loss of $464,000, or
$0.09 per share in 1996.
"We're encouraged by the meaningful improvement we've experienced during
the quarter at the operating level," said Thomas R. McGuire, Chairman and
Chief Executive Officer of Coast. "We believe the strategies we implemented
earlier this year have begun to provide meaningful results. We will continue
to work to improve our margins and reduce our costs, inventories and debt."
For the nine months ended September 30, 1997, net sales totaled
$114,652,000 versus $117,091,000 for the comparable period in 1996. The
Company's net loss for the nine months ended September 30, 1997 was
$1,593,000 or ($0.31) per share, versus net income of $1,454,000 or $0.28 per
share in 1996. The Company's earnings in the nine months ended
September 30, 1996 were largely the result of a non-recurring credit to
earnings resulting from the favorable settlement of litigation.
The Coast Distribution System is a leading supplier of accessories for
recreational vehicles (RVs) in both the U.S. and Canada. The Company is also
a leading supplier of accessories for the pleasure-boat market in the U.S.
Coast supplies its 15,000 customers through the company's 18 distribution
centers located throughout the U.S. and Canada. Investments in affiliates
include RV product distributors in Australia and Mexico, and a manufacturer of
RV products in the U.S.
THE COAST DISTRIBUTION SYSTEM
CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE
THIRD QUARTER AND NINE MONTHS ENDED SEPTEMBER 30, 1997 & 1996
Third Quarter Ended September 30, 1997 1996
Net Sales $37,847,000 $37,552,000
Operating Income (Loss) ($56,000) ($841,000)
Net Earnings (Loss) ($1,450,000) ($464,000)
Earnings (Loss) Per Share (28 Cents) (9 Cents)
Average Shares Outstanding (Fully Diluted) 5,246,879 5,209,324
Nine Months Ended September 30, 1997 1996
Net Sales $114,652,000 $117,091,000
Operating Income (Loss) $731,000 $1,602,000
Net Earnings (Loss) ($1,593,000) $1,454,000
Earnings (Loss) Per Share (31 Cents) 28 Cents
Average Shares Outstanding (Fully Diluted) 5,235,489 5,194,261
SOURCE The Coast Distribution System