Coast Distribution System, Inc., based in Morgan Hill, reported
its operating results for the fourth quarter and year ended Dec.
31, 2008.
Coast Distribution System, Inc., based in Morgan Hill, reported its operating results for the fourth quarter and year ended Dec. 31, 2008.
Coast, a supplier of aftermarket replacement parts, accessories and supplies for the recreational vehicle (RV), marine and outdoor recreation industries, reported a net loss of $2.3 million, or $.51 per diluted share, on net sales of $16.9 million for the fourth quarter 2008. For the same period of 2007, Coast reported a net loss of $1.5 million, or $.34 per diluted share, on net sales of $26.7 million.
The Company reported the net loss was expected in the quarter. There is a traditional seasonal slowdown in the fourth quarter every year, as customers typically wait until the first quarter to place orders for the upcoming buying season. Net sales in the 2008 fourth quarter declined 37.0 percent year-over-year, as industry associations for both the RV and boating industries reported double-digit declines in shipments for the year. The Recreational Vehicle Industry Association (RVIA) reported RV shipments were down 32.9 percent year-over-year in 2008.
For the year ended Dec. 31, 2008, Coast reported a net loss of $1.8 million, or $0.41 per diluted share, on net sales of $132.2 million, compared with net earnings of $215,000, or $0.05 per diluted share, on net sales of $164.3 million for 2007.
“As expected, 2008 was extremely difficult based on the drop in sales traffic to RV dealerships, our primary customer, due to the economic recession, unstable fuel prices and lack of available financing for potential purchasers,” said Coast’s Chief Executive Officer Jim Musbach. “We continue to control costs and optimize costs in line with sales wherever possible. We have reduced our staffing levels by 30 percent and replaced our costly annual trade show with a more efficient and effective online sales program. We also restructured our sales department to focus more on inside sales to existing accounts, and have worked with our vendors and landlords to secure discounts.
“Looking ahead, we are expecting a challenging 2009,” said Musbach. “The RVIA is forecasting another year of decline for the RV industry. That said, we believe people are still using the RVs they own and enjoying the RV lifestyle more than ever, and will continue to demand our aftermarket products even in a recession. We are closely monitoring our inventory levels, inventory turnover and days sales outstanding. We believe we have the cash, financing and level of demand to weather this storm, even as we proactively streamline our operations, and evaluate strategic options to maximize shareholder value in 2009.”
Fox uses Vocollect to double productivity
Vocollect, Inc., the world leader in voice solutions for mobile workers, and Fox Racing Inc., an apparel manufacturer and distributor headquartered in Morgan Hill, announced that their recent deployment of HighJump Warehouse Advantage for warehouse management and Vocollect Voice has enabled Fox Racing to double its distribution center productivity, and that it has achieved its projected return on investment in half the expected timeframe.
After selecting HighJump Software and its authorized business partner Vitech Business Group, Inc. to optimize its warehouse management system (WMS), Fox Racing sought out a solution to improve the flexibility, adaptability, speed and accuracy of the order selection process at the company’s two distribution centers (DCs). The company found that RF-scanning could not deliver the desired level of productivity gains and pick-to-light couldn’t provide the required flexibility.
After settling on voice as the only technology to meet their productivity and accuracy goals, Fox Racing evaluated the various voice provider options available in the marketplace. Fox chose Vocollect because of its proven track record in providing industrial-strength solutions, its financial stability as the global leader in the business of voice, and its certified direct interface with the HighJump WMS solution.
“Vocollect Voice was a natural fit with HighJump’s supply chain execution and enterprise methodology,” said Keith Batt, president, Vitech Business Group, Inc. “Our combined offering accelerated the payback on voice and achieved dramatic bottom-line results,” he said. In just six months:
– Productivity has doubled for Fox’s order selectors, with 150 lines selected per hour, up from 70 with its previous paper-based solution. Further, voice has helped the company move from a total of 35 selectors to 18.
– Order accuracy has increased to 99.99%.
– Training time has been reduced from a full day to less than two hours. Order selectors are achieving full productivity by the end of the second day of use.
– Training for Spanish-speaking employees has been simplified through the voice system’s multilingual capability.
– Worker satisfaction has significantly increased through shorter work
days. Work now finishes by 5:30 p.m., versus the previous 9:00 p.m.
– The hands-free, heads-up aspect of the voice system has resulted in less worker distractions and has reduced the opportunity for work injuries.
– ROI has been achieved in six months – six months earlier than projected.
“We had reached the point where we would be forced to turn business away if something didn’t change, and change quickly. We simply didn’t have the bandwidth to keep pace with our rapid growth,” said Robby Dhesi, director of distribution, Fox Racing Inc. “Vocollect helped us reach a higher level of performance on every goal we set, and now we should be able to achieve our growth objectives across North America and internationally.”
“Based on our initial success in using Vocollect Voice in our picking operation, we have now applied it to the tasks of replenishment, put-away and cycle-counting. We’re excited about the potential to find even more ways to leverage our Vocollect investment to drive bottom-line results and gain competitive advantage,” Dhesi said.
