The Coast Distribution System, one of North America’s aftermarket suppliers of replacement parts, accessories and supplies for the RV and outdoor recreation industries, reported a net loss for the fourth quarter and full year of 2014, despite net sales growth.
Coast incurred a net loss of $1.2 million, 23 cents per diluted share, for the fourth quarter of last year, compared to a net loss of $1.3 million, or 27 cents per diluted share, for the fourth quarter of 2013.
“We are pleased with the positive sales momentum during the fourth quarter, and that momentum has continued through the first quarter of 2015,” said Coast’s CEO Jim Musbach. “We achieved the fourth quarter increase in sales despite the West Coast port strike which tied up our products for several weeks, increasing our costs and slowing our sales progress.”
For the full year ended Dec. 31, the company recorded a net loss of $523,000, or 11 cents per diluted share, compared to a net loss of $637,000, or 14 cents per diluted share, for 2013.
Net sales for the 2014 fourth quarter increased by 12.3 percent to $22.3 million, compared to net sales of $19.9 million in the 2013 fourth quarter.
That sales increase was primarily a result of continuing improvement in market conditions in the RV industry, highlighted by increased shipments of RVs, growing acceptance of new marketing programs and branded products, and increased sales to specialty retailers.
For the year ended Dec. 31, net sales increased by 4.3 percent to $118.8 million, up from $113.9 million in 2013, notwithstanding the effect on the adverse effect on sales during the first half of 2014 of unusually cold spring and summer weather in the Midwest, Northeast and Southeast of the United States and throughout most of Canada negatively impacted overall.
Gross profit in the 2014 fourth quarter increased to $3.3 million, up from $2.7 million in the same quarter of 2013. In the year ended Dec. 31, gross profit increased by $971,000 to $21.1 million, from $20.1 million in 2013.