Performance Highlights (in thousands of dollars except percentages and per-share amounts) 2014 2013 2012 2014 2013 2012 Q2 Q2 Q2 YTD YTD YTD ---------------------------------------------------------------------------- Sales 43,872 41,970 37,729 80,666 76,330 67,765 Gross profit 9,437 9,566 8,505 17,040 16,984 15,388 As a percentage of sales 21.5% 22.8% 22.5% 21.1% 22.3% 22.7% Net Income 1,162 1,560 1,124 941 1,919 1,120 Basic and diluted net income per share 0.12 0.16 0.11 0.09 0.19 0.11 EBITDA 2,229 2,658 2,062 2,522 3,728 2,678 EBITDA margin 5.1% 6.3% 5.5% 3.1% 4.9% 4.0% EBITDA per share 0.222 0.265 0.205 0.251 0.372 0.267 Dividends per share 0.075 0.075 0.105 0.150 0.150 0.210 EBITDA before other costs (1) 2,592 2,658 2,062 3,688 3,728 2,678 (1) Other costs includes one-time legal, Special Committee and financial advisor expenses related to the unsolicited offer by CWAL to acquire all of the issued and outstanding common shares of Coast.
Second Quarter Results
For the three months ended
Sales growth was particularly strong in the
Second quarter gross profit of
Coast's second quarter selling, general and administrative, facilities and warehousing expenses (SG&A expenses) rose by
Due primarily to the costs associated with the CWAL take-over bid, second quarter EBITDA decreased by
"We continue to be very pleased with our builder sales growth and are encouraged that we maintained both our retail revenues and margins in the current competitive consumer sales environment," said
Revenues for the first half of 2014 increased to
As with the quarterly result, sales growth was particularly strong in the GTA and in
First half gross profit of
Coast's SG&A expenses for the six months ended
EBITDA for the first half of the year decreased by
During the second quarter, as part of its ongoing strategy to enhance profitability by increasing sales from its existing stores, Coast began work on showroom updates at its Edmonton North store in
As planned, the company completed major upgrades to its inventory and pricing management systems at the end of June. This IT project came in on time and on budget and has now been implemented across all of Coast's locations. Over time, these new systems will help Coast better manage its gross margins, reduce inventory levels and increase inventory turns.
Coast declared monthly dividends of
A more detailed discussion of Coast's financial results can be found in its 2014 Second Quarter Management's Discussion and Analysis, which will be posted along with the unaudited interim condensed financial statements for the period on Coast's website (www.coastwholesaleappliancesinc.com) and SEDAR (www.sedar.com) on
Coast is a leading independent supplier of major household appliances and accessories to builders and developers of multi-family and single-family housing, and to retail customers. Founded in 1978, Coast operates stores across the four western provinces and in the
This news release includes forward-looking statements, which involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements or industry results to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. These forward-looking statements are identified by the use of terms and phrases such as "anticipate", "believe", "estimate", "expect", "may", "plan", "will", and similar terms and phrases, including references to assumptions. Such statements may involve, but are not limited to, comments with respect to the sustainability of our dividends to shareholders, the application by Coast to delist its common shares from the Toronto Stock exchange and cease being a reporting issuer, the performance of the Canadian economy and our sales expectations.
These forward-looking statements reflect our current expectations regarding future events and operating performance as of the date of this news release. Forward-looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results and will not necessarily be accurate indications of whether or not such results will be achieved. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements, including, but not limited to: sensitivity to general economic conditions; changes in consumer confidence in the economy; maintenance of profitability and management of changes to our business; competition; increases to interest rates; reliance on suppliers and their ability to supply product for sale on a timely basis; changes in consumer preferences; changes in our mix of product sales; fluctuations in fuel and commodity pricing; usage of extended warranty programs and the costs to deliver these services; changes to planning and supply chain processes; lack of long-term supplier agreements; reliance on key personnel; and foreign exchange rates as they relate to imported products.
Although the forward-looking statements contained in this news release are based upon what we believe to be reasonable assumptions, Coast cannot assure investors that actual results will be consistent with these forward-looking statements. The forward-looking statements reflect management's current beliefs and are based on information currently available to Coast. They speak only as of the date of this news release and reflect current assumptions regarding future events and operating performance. These assumptions include, without limitation: slow economic growth in 2014 in both
Non-IFRS Financial Measures
EBITDA, EBITDA margin and Adjusted EBITDA are non-IFRS financial measures that are defined in Coast's Second Quarter Management's Discussion and Analysis, to be posted on Coast's website and SEDAR on
FOR FURTHER INFORMATION PLEASE CONTACT:
Coast Wholesale Appliances Inc. Gordon HowieChief Financial Officer (604) 301-3400 firstname.lastname@example.org Source: Coast Wholesale Appliances Inc.