The Coast Distribution System, Inc., an aftermarket supplier of
replacement parts, accessories and supplies for the recreational
vehicle, boat and outdoor recreation industries based in Morgan
Hill, reported its operating results for the second quarter and six
months ended June 30.
The Coast Distribution System, Inc., an aftermarket supplier of replacement parts, accessories and supplies for the recreational vehicle, boat and outdoor recreation industries based in Morgan Hill, reported its operating results for the second quarter and six months ended June 30.
Coast generated net earnings of $1.2 million, or $.26 per diluted share, on net sales of $33.1 million for the second quarter of 2009. For the same period of 2008, Coast reported net earnings of $1.6 million, or $.35 per diluted share, on net sales of $41.2 million.
“Despite some of the most difficult conditions in the recreational vehicle industry since the oil crisis and economic downturns of the 1970s, Coast was profitable in the second quarter and six month period,” said Coast’s Chief Executive Officer Jim Musbach. “We achieved this performance because of the proactive and aggressive steps we have taken to control costs since the beginning of the industry downturn. These painful but necessary steps included reducing staffing levels across multiple departments, as well as cutting salaries across the board.”
In the 2009 second quarter, Coast reduced selling, general and administrative (SG&A) expenses by $1.7 million, or 27.8 percent as compared to the 2008 second quarter. Coast also reduced its borrowings under its bank line of credit by $19.0 million, or 62.6 percent year-over-year and reduced inventory year-over-year by $16.9 million, or 40.6 percent. Because Coast’s current line of credit will be expiring in May 2010, borrowings under that credit line are classified as a current liability in the Company’s 2009 second quarter financial statements.
Net sales in the 2009 second quarter declined 19.6 percent year-over-year, a result management attributed to lower retail traffic at RV and marine dealerships. Industry associations for both the RV and boating industries reported double-digit declines in industry shipments for the first half of the year. The Recreational Vehicle Industry Association (RVIA) reported RV industry shipments were off 55.3 percent year-over-year in the first six months of 2009.
Musbach continued, “Though our primary markets remain very challenging, we have seen a slight uptick in recent demand, which may indicate our customers are restocking inventory in anticipation of the bottom of the industry slump. We do see this development as a positive sign, though we remain conservative and cautious in our approach.”
“We will continue to reduce costs wherever possible, and are actively working with our product suppliers and our bank lender to ensure we have the proper resources into the future,” said Musbach. “Since the beginning of the economic recession, everyone at Coast has worked very hard to tackle challenges aggressively by taking steps to improve our operations and effectively position ourselves for the future. We continue to seek additional market share through greater penetration of our Coast-branded and partnered distribution products. Because of these efficiency improvements and increased demand for our products, we believe Coast is well positioned to take advantage when the economy eventually rebounds.”
For the six-month period ended June 30, 2009, Coast reported net earnings of $274,000 or $0.06 per diluted share, on net sales of $56.3 million, compared with net earnings of $711,000, or $0.16 per diluted share, on net sales of $80.7 million in the same six-month period of 2008.
MH author offers advice for men
Men have spent a lifetime of failure trying to understand the female psyche. Morgan Hill native F.J. Portera offers a solution for men in search of solving the mystery in his self-help book entitled “Everything Men Have Learned About Women” (published by AuthorHouse). Portera examines his own life and spills out his answers to the uncertainties haunting many men. The book, which is available at Barnes and Noble and Amazon, offers a fresh take on an ancient quest – understanding women. He concludes that men have not learned a great deal about the opposite sex.
Portera Jr. was born in Morgan Hill. Aside from writing, Portera enjoys spending time with his family, riding dirt bikes, snow and water sports, and cooking. He currently works as a piping superintendent for a mechanical contractor in Campbell. Portera resides in Morgan Hill with his wife and four children.
AuthorHouse is the premier book publisher for emerging, self-published authors. For more information, please visit www.authorhouse.com.
