St. Conti Communications, based in Morgan Hill, was honored with
the Award of Excellence from the 15th Annual Communicator Awards
Print Competition.
Conti wins Award of Excellence
St. Conti Communications, based in Morgan Hill, was honored with the Award of Excellence from the 15th Annual Communicator Awards Print Competition. Also, its president, Donna St. Jean Conti, was honored as a nominee for the Orange County Business Journal’s prestigious Women in Business Award for her business achievements and community service.
St. Conti Communications won the Print Publicity Newspaper Placement Award of Excellence for its work on behalf of The Irvine Ranch Outdoor Education Center with the placement of its Seeds to Sprouts column in the Home & Garden section of the Orange County Register.
The Seeds to Sprouts column, which was written by Christine Kirk, outdoor education director for The Irvine Ranch Outdoor Education Center, focused on teaching parents how to get their kids interested in organic gardening by providing how-to instructions, recipes and fun ideas. It ran from May 2008 through January 2009.
“We are proud of our media relations efforts and resulting placements on behalf of The Irvine Ranch Outdoor Education Center and especially pleased that Christine Kirk’s Seeds to Sprouts column received the recognition it deserves,” said St. Jean Conti. “It is a joy to represent such a worthy project.”
St. Jean Conti’s Women in Business nomination was in recognition of her business leadership and for her support of breast cancer related and environmental causes, especially her efforts to aide non-profit, It’s Your Environment (www.ItsYourEnvironment.org), in its involvement with a 2009 Earth Day event at Bathgate Elementary School in Mission Viejo, Calif. It’s Your Environment signed five new classrooms to participate in its online environmental activism and projects Web site as a direct result of the Earth Day event. St. Jean Conti’s national contributions included working as contributing editor for Breast Cancer Wellness Magazine and volunteering as co-host of the Inspire! Blog-Talk radio program to provide hope, help and answers to breast cancer patients. She continues her own blog, www.Communicator.StContiCommunications.com to share her views and insights on public relations, breast cancer awareness advocacy and wellness.
Coast reports net income in 3rd quarter
The Coast Distribution System, Inc, based in Morgan Hill, reported financial results for the third quarter ending Sept. 30, highlighted by net earnings despite lower sales, driven by improved margins and a leaner operating structure.
Coast, an aftermarket supplier of replacement parts, accessories and supplies for the recreational vehicle, boat and outdoor recreation industries, reported net earnings of $0.9 million, or $0.20 per diluted share, on net sales of $29.6 million for the third quarter of 2009. For the same period of 2008, Coast reported a net loss of $0.3 million, or $0.07 per diluted share, on net sales of $34.7 million.
Gross margin as a percentage of sales increased to 20.7 percent in the 2009 third quarter, compared to 17.9 percent in the same quarter of 2008. The increase was a result of reduced freight costs, discounts and volume rebates, workforce reductions in our warehouses, and the introduction of additional higher-margin Coast branded products. In the 2009 third quarter, Coast reduced selling, general and administrative (SG&A) expenses by $2.1 million, or 30.9 percent as compared to the 2008 third quarter. The company attributed the decrease in SG&A to an aggressive cost control program, which has included reducing staffing levels and company-wide reductions in salaries. Coast reduced its borrowings under its bank line of credit by $11.2 million, or 55.2 percent year-over-year and reduced inventory year-over-year by $10.2 million, or 28.8 percent to $25.3 million, at September 30, 2009.
For the nine-month period ended Sept. 30, 2009, Coast reported net earnings of $1.2 million, or $0.26 per diluted share, on net sales of $85.9 million, compared with net earnings of $0.4 million, or $0.09 per diluted share, on net sales of $115.4 million in the same period of 2008.
“Given the difficult industry conditions, we are pleased with our results in the quarter,” said Coast’s Chief Executive Officer Jim Musbach. “Driving our profits were improved margins, which for a large part were the result of several important yet painful steps we have taken in the past 18 months to create a leaner, stronger company. Looking ahead, our focus is on new product introductions to capture market share and increase volume beginning in 2010. We are also encouraged as we are seeing our customers restocking inventory in anticipation of an upturn in our industry. We will continue to reduce costs wherever practicable to improve our operations and effectively position ourselves for the eventual industry recovery, while expanding our customer base for Coast-branded and partnered distribution products.”
Net sales in the 2009 third quarter declined 14.7 percent year-over-year, which management attributed to lower retail traffic at RV and marine dealerships, Coast’s primary customers, reflecting the continuing effects of the recession and credit crisis. Industry associations for both the RV and boating industries reported double-digit declines in industry shipments for the first nine months of the year. The Recreational Vehicle Industry Association (RVIA) reported year-to-date RV industry shipments were off 42.7 percent year-over-year in the nine-month period.
As in past years, the Ccompany expects a loss in the fourth quarter of 2009 due to the traditional, seasonal slowdown in the quarter, as customers typically wait until the first quarter to begin placing orders for the upcoming season, which commences in the spring.
Network Cafe
The Gilroy Chamber of Commerce will be holding its monthly networking lunch from 11:45 a.m. to 1:15 p.m. Dec. 2 at Fortino Winery, 4525 Hecker Pass Highway. Cost $25 for members and $45 for non-members. Details: gilroy.org or 842-6437.
