VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 05/06/13 -- Coast Wholesale Appliances Inc. (TSX: CWA) will host a conference call and webcast to discuss its 2013 first quarter financial results on Tuesday, May 7, 2013 at 8:00 am Pacific Time (11:00 am Eastern). The call can be accessed by dialing: 1-877-240-9772 or 416-340-8527 (GTA and International).
A replay will be available through May 21, 2013 at: 1-800-408-3053 or 905-694-9451, passcode 2341751.
The live and archived webcast, as well as an mp3 download, can be accessed at http://www.investorcalendar.com/IC/CEPage.asp?ID=170936 or on Coast's website at www.coastwholesaleappliancesinc.com.
Coast Wholesale Appliances Inc. (Coast or the company), today reported financial results for the three months ended March 31, 2013, which represents the first quarter of its 2013 fiscal year.
Performance Highlights(in thousands of dollars except percentages and per-share amounts) 2013 2012 2011 Q1 Q1 Q1----------------------------------------------------------------------------Sales 34,360 30,035 28,086Gross profit 7,418 6,883 6,752As a percentage of sales 21.6% 22.9% 24.0%Profit (loss) 359 (4) (487)Diluted net income (loss) per share 0.036 (0.000) (0.049)EBITDA 1,070 616 (43)EBITDA margin 3.1% 2.1% -0.2%EBITDA per share 0.107 0.061 (0.004)Dividends per share 0.075 0.105 0.070----------------------------------------------------------------------------
First Quarter Results
In its seventh consecutive quarter of year-over-year revenue growth, Coast recorded sales of $34.4 million for the three months ended March 31, 2013. This represented an increase of $4.3 million, or 14.4%, over Q1 2012. Sales to builders in the company's seasonally slower first quarter increased by 25.2%, while retail sales remained in line with the 2012 level, dipping by a modest 0.4%. Other revenues, generated by warranty sales, freight and installation, sales of glass products and commission sales, were up by 2.1% over the same period last year.
As in the past three quarters, revenues improved in all of Coast's geographic markets. Notably, the company achieved double-digit sales increases in both the Greater Toronto Area (GTA) of Ontario and British Columbia.
With the higher revenues, first quarter gross profit increased to $7.4 million from $6.9 million in 2012, a 7.8% improvement. Gross margin continued to be negatively affected by on-going competitive pressures and the resulting price compression in both the retail and builder segments of Coast's business, declining to 21.6% from 22.9% in Q1 2012. Tight cost control kept selling, warehouse, facility, and general and administrative (SG&A) expenses for the quarter level with last year, despite the increase in business. As a percentage of sales, SG&A expenses were reduced to 18.5% from 20.9% in 2012.
