The Coast Distribution System has launched its RV Healthy Roof marketing program for RV dealers.
The “Is Your Roof Healthy?” program provides the dealer the opportunity to offer a free RV roof inspection to customers, according to a news release from the Morgan Hill, Calif.-based distributor. The marketing program is designed to drive traffic to dealerships by providing a free roof inspection coupon. The dealer has the option of sending the coupon out in an e-mail blast or by mailing postcards to their database of customers and prospects. Dealers also receive a poster to display in their dealership advertising the free inspection.
The program is aimed at educating the RV owner on the importance of RV roof maintenance and helping dealers promote their services. Coast has partnered with Dicor Corp., a leading supplier of roofing technology, and RVP/Coleman, a leading manufacturer of RV air conditioners, to make this program a success. Participating dealers use a checklist when performing the roof inspections. At the end of the inspection, the dealer reviews the checklist with the RV owner and makes recommendations if maintenance is required.
Consumers can visit the RV Healthy Roof “Is Your Roof Healthy?” website to find a participating dealer. The website also provides roof maintenance tips and product information. Consumers can also sign up to receive periodic email updates with tips and product promotions. Visit the RV Healthy Roof “Is Your Roof Healthy?” program website at www.rvhealthyroof.com.
The Coast Distribution System is a leading North American manufacturer and distributor of recreational products and outdoor power equipment. The company has seventeen strategically located distribution centers in the United States and Canada, offering same day shipping for most products. Coast supplies products to the independent RV, marine, outdoor power equipment, and pool and patio wholesalers and dealers.
The Coast Distribution System Inc. today (Nov. 15) reported financial results for the third quarter and nine months ended Sept. 30.
The company also announced in a news release that it has entered into an amendment to its bank credit line agreement which, among other things, extends the maturity date of its revolving credit line for three years, to July 10, 2014, from the current maturity date of July 10, 2011, and increases the borrowing base formula on receivables and inventory, allowing increased capacity on the existing asset base at a lower effective interest rate.
Third Quarter 2010 vs. 2009
Coast, one of North America’s largest aftermarket suppliers of replacement parts, accessories and supplies for the recreational vehicle, boating and outdoor recreation industries, reported net income of $659,000, or 14 cents per share, for the third quarter of 2010, compared to net income of $902,000, or 20 cents per share for the third quarter of 2009. A decrease in gross profit led to a $276,000 decrease in pretax income, which was impacted further by a higher effective tax rate.
Net sales increased by 9.0%, to $32.2 million in the third quarter of 2010, compared to net sales of $29.6million in the same quarter of 2009. The improvement was primarily attributable to increased sales of air conditioners. Gross margins were adversely impacted by a shift in revenue mix toward air conditioners, which typically yield lower margins, and by selected price reductions implemented in response to increased price competition.
On the balance sheet, accounts receivable at Sept. 30, 2010 were flat, at $8.9 million, despite increased sales compared to the prior year. Inventories at Sept. 30, 2010, were $27.2million, an increase of $1.9 million compared with $25.3 million a year earlier, which was the result of the company’s plan to optimize inventory levels in order to maximize customer fill rates and increased purchases of foreign-sourced proprietary products. Despite the higher levels of inventory, the company’s revolving credit facility increased only slightly, to $9.4 million, from $9.2 million at September 30, 2009.
“Our financial results for the third quarter reflected the continued challenging conditions confronting our industry,” said Coast CEO Jim Musbach. “Given these conditions, it was not surprising that our revenue growth came at the cost of softer margins. As we work through the lingering economic conditions that have been adversely affecting consumers’ purchases and use of RVs and boats, we continue to maintain tight control over operating expenses to offset the downward pressure on margins caused by these conditions. We also remain focused on our objective of providing more of our branded products to customers in order to enhance both our margins and competitive position. Coast’s branded products accounted for more than a third of our sales in the first nine months of 2010.”
Nine Months Ended Sept. 30, 2010, vs. 2009
For the nine-month period ended Sept. 30, 2010, Coast reported net earnings of $1.9 million, or 41 cents per share, on net sales of $91 million, compared with net earnings of $1.2 million, or 26 cents per share, on net sales of $85.9 million in the same period of 2009. The increase in earnings was primarily attributable to the increase in net sales, cost savings that the company realized in the first six months of 2010 as a result of cost-cutting measures first implemented in early 2009, and a decrease in other expense.
Musbach concluded: “Although market conditions have not improved, we believe we have reason for optimism in 2011 given the additional actions we are taking to improve our operations. We continue to hold the line on operating expenses and are looking at new areas for potential savings, including securing better terms on our credit line and lower rents on some of our real estate leases. Our efforts in this regard are intended to build a foundation for improved financial results as market conditions eventually improve.”
The Coast Distribution System has launched a new “RV Healthy Roof Is Your Roof Healthy?” program aimed at educating the RV owner on the importance of RV roof maintenance.
The program encourages participating RV dealers to offer free RV roof inspections to customers, according to a news release. Participating dealers are trained to perform RV roof inspections and use a checklist when performing the inspections. At the end of the inspection, dealers inform the RV owner of the condition of their roof and make recommendations if maintenance is required.
Consumers can visit the RV Healthy Roof website, www.rvhealthyroof.com, to find a participating dealer. The website also provides roof maintenance tips and product information. Consumers can also sign up to receive periodic e-mail updates with tips and product promotions. In addition to the website, dealers are provided marketing materials such as posters, flyers and postcards to promote the free roof inspection program to their customers.
Coast is partnering with Dicor Corp., a leading supplier in roofing technology, and RVP/Coleman, a leading manufacturer of RV air conditioners, to make this program a success. “Our goals are to create awareness about the importance of regular roof inspections but also to provide our dealers with an opportunity to promote their services and get customers in the door,” says Sly Lussier, vice president of marketing for Coast Distribution.
The Coast Distribution System is a leading North American manufacturer and distributor of recreational products and outdoor power equipment. The company has 17 strategically located distribution centers in the United States and Canada, offering same-day shipping for most products. Coast supplies products to the independent RV, marine, outdoor power equipment and pool and patio dealers.