The Coast Distribution System, Inc. Reports Fourth Quarter and Year End Results
16 March 2000
The Coast Distribution System, Inc. Reports Fourth Quarter and Year End Results, Announces New Executive Officer
MORGAN HILL, Calif., March 16 The Coast Distribution
System, Inc. (AMEX: CRV) today reported financial results for the fourth
quarter and year ended December 31, 1999.
Net sales for the quarter ended December 31, 1999 were $22.6 million as
compared to $22.6 million for the fourth quarter of 1998. For the year ended
December 31, 1999, net sales increased to $154.8 million from $148.7 million
in 1998.
During the fourth quarter of 1999, the company lost $1,322,000, or
$0.31 per share versus a loss of $1,603,000, or $0.30 per share in the fourth
quarter of 1998. Average shares outstanding for the fourth quarter were
4,333,163 in 1999 and 5,279,854 in 1998. In the year ended December 31, 1999
the company had net earnings of $10,000, or $0.00 per share, as compared to
$126,000, or $0.02 per share, in 1998. Diluted average shares outstanding for
the year ended December 31, were 4,640,582 in 1999 and 5,281,568 in 1998. The
reduction in the average number of shares outstanding during the quarter and
year ended December 31, 1999 as compared to the same periods of 1998 is a
result of the company's 1999 repurchase of approximately 1,000,000 shares of
its common stock.
Aftermarket sales of RV products continued to be soft during the last
quarter of 1999. In addition, the company experienced increased operating
expenses during 1999 arising from: a) the effort to segment the company's
sales force and increase penetration in the marine aftermarket, and b) the
implementation of the company's new computer system.
"While we are disappointed in our 1999 results, we believe we are better
positioned for the future." stated Thomas McGuire, Chairman and Chief
Executive of Coast. "The software we implemented in 1999 will enable us to
increase our sales and improve customer service by giving us an improved
ability to segment our customers across several dimensions thereby identifying
specific patterns and opportunity. We also increased our focus in the marine
aftermarket and have added to our marine sales force. Our efforts in marine
have already begun to produce positive results. Through February 2000, our
marine sales have grown 20%. Demand for RV products has also strengthened
during the first two months of 2000. Orders taken at our RV buying show in
January 2000 increased 12% from the 1999 show. Lastly, while not significant
as yet, our expansion onto the Internet continues to show promise. Over
500 of our RV customers have linked Coast's Internet catalog to their web
sites and our marine Internet catalog will be available during the second
quarter of 2000.
The Company has made an addition to its executive team. Stephen
Bartolotta joins Coast as Executive Vice President of Strategic Planning.
Mr. Bartolotta was previously a Senior Manager with Andersen Consulting's
Strategic Services Division specializing in Supply Chain Management.
"Our business has changed significantly in recent years requiring us to
pursue new approaches for servicing our customer base and managing our costs,"
continued Mr. McGuire. "We were looking for someone with a perspective of
"best-in-class" operations, deep logistic skills, customer service expertise
and an infusion of new ideas for evaluating our overall business model. I am
pleased to announce Steve's decision to join Coast and am confident in his
ability to create value for our shareholders."
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, 1999.
The Coast Distribution System, Inc.
Consolidated Statements of Operations for the
Fourth Quarter and Year Ended December 31, 1999 & 1998
Fourth Quarter Ended December 31, 1999 1998
Net Sales $22,639,000 $22,573,000
Net Earnings (Loss) ($1,322,000) ($1,603,000)
Diluted Earnings (Loss) Per Share ($0.31) ($.30)
Average Shares Outstanding 4,333,163 5,279,854
Year Ended December 31, 1999 1998
Net Sales $154,800,000 $148,680,000
Net Earnings (Loss) $10,000 $126,000
Diluted Earnings (Loss) Per Share $0.00 $0.02
Average Shares Outstanding 4,640,582 5,281,568