Sergio,
CRV a sure Sergio stock if ever there was. A solid .40 in earnings for 9 months.
Joe
The Coast Distribution System, Inc. Reports
Significant Increases In Third Quarter and Nine
Month Operating Income and Net Income
Tuesday November 5, 12:57 pm ET
MORGAN HILL, Calif., Nov. 5 /PRNewswire-FirstCall/ -- The Coast Distribution System, Inc.
(Amex: CRV - News) today reported financial results for the third quarter and nine months
ended September 30, 2002.
Net sales for the quarter ended September
30, 2002 increased 10% to $39.5 million, as
compared to $35.9 million for the third
quarter of 2001. For the nine months ended
September 30, 2002 net sales increased 8%
to $122.6 million as compared to $114.0
million in 2001. Operating income for the
third quarter of 2002 was $1,009,000,
versus a loss from operations of
$(1,303,000) for the same quarter of 2001
and increased to $4,334,000 in the nine
months ended September 30, 2002 as
compared to a loss from operations of
$(1,079,000) in the same nine months of
2001. The Company reported net earnings
of $452,000, or $0.10 per diluted share, for
the third quarter of 2002, versus a net loss
of $(454,000), or $(0.10) per diluted share,
for the third quarter of 2001 and net earnings of $1,780,000, or $0.40 per diluted share, for the
nine months ended September 30, 2002, as compared to a net loss of $(1,237,000), or $(0.28)
per diluted share, in the nine months ended September 30, 2001. During the third quarter of
2001 the Company realized a pre-tax gain of $1,163,000 from the sale of its Portland, Oregon
distribution facility.
"We are pleased with our results and are looking forward to reporting improvements going
forward," stated Thomas R. McGuire, Chairman and Chief Executive of Coast.
In the second quarter of 2002, we completed the initial evaluation of goodwill pursuant to the
requirements of SFAS No. 142, which became effective this year. As a result of this evaluation,
we have determined that there may be an impairment of some or possibly all of the goodwill
recorded on our balance sheet, which totaled approximately $6,280,000 as of January 1, 2002.
We will complete the process necessary to determine the actual amount of impairment in the
fourth quarter of 2002. If it is determined that the goodwill has been impaired, we will record a
non-cash charge in the amount of the impairment as a "Cumulative Effect of an Accounting
Change" in our consolidated statements of operations.
About The Coast Distribution System, Inc.
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 17 distribution centers located throughout the U.S. and Canada.
Seasonality of Coast's Business
The Company's business is seasonal. Sales generally are higher during the late spring and in
the summer, as compared to other periods of the year. As a result, operating results for the
quarter and nine months ended September 30, 2002 are not necessarily indicative of the
results that might be expected in the subsequent quarters of or for the full year ending
December 31, 2002.
Forward-Looking Information
This news release may contain statements regarding our expectations and beliefs about our
future financial performance (including forecasts and statements concerning business trends
and future profitability) that are forward-looking statements as defined in the Private Securities
Litigations Reform Act of 1995. Readers of this release are cautioned not to place undue
reliance on forward-looking statements, which are inherently uncertain, or to rely on historical
operating results to predict future financial performance. Actual results in the future may differ
materially, depending on the effect of a number of risks and uncertainties such as, but not
limited to, the possibility of increased price competition within the Company's distribution
channels; the possibility that economic conditions will not improve significantly or that interest
rates will increase, causing consumers to reduce discretionary spending which can result in
reduced sales; the potential for increases in gasoline prices due to political conditions in the
Middle East, which could reduce usage of RV's and pleasure boats and hence the purchase of
the products we distribute; and the possibility of changes in the structure of relationships
between manufacturers, distributors and retailers within our industry, which could create supply
problems and operating costs or lead to increased competition. For a more detailed discussion
of factors that affect the Company's operating results, readers of this press release should
review the Company's SEC reports, including the Company's annual report on Form 10-K for
the year ended December 31, 2001.
Forward-looking statements are made only as of the date of this release and the Company
undertakes no obligation to update or revise the forward-looking statements, whether as a
result of new information, future events or otherwise.
The Coast Distribution System, Inc.
Selected Operating Data for the
Third Quarter and Nine Months Ended September 30, 2002 and 2001
(Unaudited)
Third Quarter Ended September 30,
2002 2001
Net sales $39,514,000 $35,886,000
Earnings (Loss) from Operations $1,009,000 $(1,303,000)
Net Earnings (Loss) $452,000 $(454,000)
Diluted Earnings (Loss) Per Share $.10 $(.10)
Shares used for Diluted Earnings
(Loss) Per Share 4,507,431 4,366,880
Nine Months Ended September 30,
2002 2001
Net sales $122,596,000 $114,014,000
Earnings (Loss) from Operations $4,334,000 $(1,079,000)
Net Earnings (Loss) $1,780,000 $(1,237,000)
Diluted Earnings (Loss) Per Share $.40 $(.28)
Shares used for Diluted Earnings
(Loss) Per Share 4,478,856 4,357,964
Coast ceased amortizing goodwill effective January 1, 2002, in accordance with newly adopted
Statement of Financial Accounting Standards (SFAS) No. 142, "Goodwill and Other Intangible
Assets." In the third quarter and first nine months of 2001, goodwill amortization expense, net of
tax aggregated $120,000 or $.03 per share, and $361,000, or $.08 per share, respectively.
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Source: Coast Distribution System, Inc. |
