Coast Distribution System today reported a slight drop in net earnings for the second quarter, ended June 30.
Coast generated net earnings of $1.2 million, or 26 cents per diluted share, on net sales of $33.1 million for the second quarter of 2009. For the same period of 2008, Coast reported net earnings of $1.6 million, or 35 cents per diluted share, on net sales of $41.2 million.
"Despite some of the most difficult conditions in the recreational vehicle industry since the oil crisis and economic downturns of the 1970s, Coast was profitable in the second quarter and six month period," said Coast's CEO Jim Musbach, in a statement.
"We achieved this performance because of the proactive and aggressive steps we have taken to control costs since the beginning of the industry downturn," he added. "These painful but necessary steps included reducing staffing levels across multiple departments, as well as cutting salaries across the board."
In the 2009 second quarter, Coast reduced selling, general and administrative expenses by $1.7 million, or 27.8 percent as compared to the 2008 second quarter. Coast also reduced its borrowings under its bank line of credit by $19 million, or 62.6 percent year-over-year, and reduced inventory year-over-year by $16.9 million, or 40.6 percent.
Net sales in the 2009 second quarter declined 19.6 percent year-over-year, a result management attributed to lower retail traffic at RV and marine dealerships. Industry associations for both the RV and boating industries reported double-digit declines in industry shipments for the first half of the year.
For the six-month period ended June 30, Coast reported net earnings of $274,000 or 6 cents per diluted share, on net sales of $56.3 million, compared with net earnings of $711,000, or 16 cents per diluted share, on net sales of $80.7 million in the same period last year.
Coast Distribution System is one of North American's largest wholesale aftermarket suppliers of replacement parts, supplies and accessories for the recreational vehicle, pleasure boat and outdoor recreation markets.