Coast Distribution System reported a net loss of $2.3 million in its traditionally weak fourth quarter, and a net loss of $1.8 million for the full year.
Based in Morgan Hill, Calif., Coast Distribution supplies aftermarket replacement parts, accessories and supplies for the marine, RV and outdoor recreation industries.
For the quarter ending Dec. 31, the company reported a net loss of $2.3 million, or 51 cents per diluted share, on net sales of $16.9 million. For the same period of 2007, the company had a net loss of $1.5 million, or 34 cents per diluted share, on net sales of $26.7 million.
For the year ending Dec. 31, Coast reported a net loss of $1.8 million, or 41 cents per diluted share, on net sales of $132.2 million. In 2007, the company reported net earnings of $215,000, or five cents per diluted share, on net sales of $164.3.
"As expected, 2008 was extremely difficult based on the drop in sales traffic to RV dealerships, our primary customer, due to the economic recession, unstable fuel prices and lack of available financing for potential purchasers," CEO Jim Musbach said in a statement.
To control costs during this downturn, Coast reduced staffing levels by 30 percent and replaced its annual trade show with a more efficient online sales program. The company also restructured its sales department to focus more on inside sales to existing accounts.
"Looking ahead, we are expecting a challenging 2009," said Musbach. "We are closely monitoring our inventory levels, inventory turnover and sales outstanding. We believe we have the cash, financing and level of demand to weather this storm."