Coast Distribution System, one of North America's largest aftermarket suppliers of replacement parts, accessories and supplies for the recreational vehicle, boating and outdoor recreation industries, today reported a 5.2 percent increase in net sales for 2010, compared with the previous year.
Net income for the year increased to $152,000, or 3 cents a diluted share, from $99,000, or 2 cents a diluted share, in 2009.
The increase was primarily attributable to a rise in net sales of $5.4 million, to $108.6 million, in 2010, from $103.2 million in 2009, as well as a reduction in expenses.
The increase in net sales was primarily attributable to the replenishment of inventories by Coast's customers in the first half of 2010 in preparation for the summer selling season and an increase in sales of air conditioners in the second half of the year as a result of a change in supplier relationships within the RV market, the company said.
Despite a 2 percent increase in sales, Coast incurred a net loss of $1.7 million, or 38 cents a diluted share, on net sales of $17.6 million in the fourth quarter of 2010, compared with a net loss of $1.1 million, or 24 cents a diluted share, on net sales of $17.3 million in the same quarter in 2009.
The larger loss was the result of a lower gross margin, combined with an increase in operating expenses and a higher tax rate, according to the company.