The Coast Distribution System, Inc. Reports Second Quarter Sales and Earnings
29 July 1999
The Coast Distribution System, Inc. Reports Second Quarter Sales and Earnings
MORGAN HILL, Calif., July 29 -- The Coast Distribution
System, Inc. (Amex: CRV) today reported financial results for the second
quarter and six months ended June 30, 1999.
Net sales for the quarter ended June 30, 1999 increased 7% to
$49.6 million, as compared to $46.2 million for the second quarter of 1998.
For the six months ended June 30, 1999 revenue increased to $90.8 million as
compared to $84.6 million for the same period in 1998.
Net earnings for the second quarter of 1999 were $1,155,000, or $0.25 per
share versus $1,052,000, or $0.20 per share in the second quarter of
1998. Diluted average shares outstanding for the second quarter were
4,625,403 in 1999 and 5,272,607 in 1998. In the six months ended June 30, 1999
the company earned $1,495,000, or $0.31 per share, as compared to
$1,660,000, or $0.31 per share, in 1998. Diluted average shares outstanding
for the six months ended June 30, were 4,883,033 in 1999 and 5,259,814 in
1998. The reduction in the average number of shares outstanding during the
quarter and six months ended June 30, 1999 as compared to the same periods of
1998 is a result of the company's 1999 repurchase of approximately
865,000 shares of its common stock.
"While our RV sales continue to experience solid growth, we are
particularly pleased with our sales of marine products," stated
Thomas R. McGuire, Chairman and Chief Executive of Coast. "The acquisition of
Marine Distributors, Inc. in May of 1998 and the resultant segmentation of the
RV and marine sales force has allowed us to better access our marine
customers' needs and provide improved service. Although this process has been
implemented in only selected regions to date, we have already seen
improvement. Our "same store" marine sales increased 9% in the second quarter
of 1999 as compared to 1998. As we continue to expand this strategy
geographically, we expect further market share growth. The marine parts and
accessories aftermarket is considerably larger than the RV aftermarket, and we
believe that Coast has a great opportunity for appreciable growth in the
marine business."
The Coast Distribution System is a leading supplier of accessories for
recreational vehicles (RVs) and pleasure boats in the U.S. and Canada. Coast
supplies its 15,000 customers through 18 distribution centers located
throughout the U.S. and Canada.
This release may contain forward-looking statements. Investors are
cautioned not to place undue reliance on forward-looking statements, which are
inherently uncertain. Actual results may differ materially, depending on the
effect of factors such as industry and market changes, competition, overall
economic impacts, and effects of interest rate changes. For a more detailed
discussion of factors that affect the Company's operating results, interested
parties should review the Company's SEC reports, including the Company's
annual report on Form 10-K for the year ended December 31, 1998.
The Coast Distribution System, Inc.
Consolidated Statements of Earnings for the
Second Quarter and Six Months ended June 30, 1999 & 1998
Second Quarter Ended June 30, 1999 1998
Net Sales $ 49,624,000 $ 46,188,000
Pre-Tax Earnings $2,821,000 $1,852,000
Net Earnings $1,155,000 $1,052,000
Diluted Earnings Per Share 25 Cents 20 Cents
Average Shares Outstanding
(Diluted) 4,625,403 5,272,607
Six Months Ended June 30, 1999 1998
Net Sales $ 90,753,000 $ 84,552,000
Pre-Tax Earnings $3,598,000 $2,922,000
Net Earnings $1,495,000 $1,660,000
Diluted Earnings Per Share 31 Cents 31 Cents
Average Shares Outstanding
(Diluted) 4,883,033 5,259,814