Coast Distribution System today reported net income of $22,000, or zero cents per diluted share, for the first quarter of 2010 as compared to a net loss of $900,000, or 20 cents per diluted share for the first quarter of 2009.
That nearly $1 million year-over-year improvement was primarily attributable to increases in net sales and gross margin, and a reduction in selling, general and administrative expenses in this year's first quarter, the company said.
Coast is one of North America's largest aftermarket suppliers of replacement parts, accessories and supplies for the recreational vehicle, boating and outdoor recreation industries.
Net sales for the quarter increased by 3.9 percent to $24.1 million, compared to $23.2 million in the same quarter of 2009. Gross margin increased to 20.4 percent in the 2010 first quarter, up from 18.6 percent in the same quarter of 2009.
"The actions we implemented in response to the difficult economic and industry conditions over the last six quarters provided the foundation for the solid financial results we posted to start 2010," Coast CEO Jim Musbach said in a statement.
"Although wholesale shipments of recreational vehicles improved industry-wide in the first quarter, we believe that improvement was driven by inventory rebuilding at the dealer level rather than significantly improved retail sales," he added. "As a result, it may take more time for these factors to translate into improved sales and usage of RVs and boats, which would in turn generate better results for Coast."