HispanicBusiness

First quarter EBITDA of $1.1 million was up by $0.5 million from the $0.6 million reported in 2012, while EBITDA margin improved to 3.1% from 2.1% last year. The increase in EBITDA was due mainly to this year's higher revenues and the resulting $0.5 million gross profit gain. The company recorded net income of $0.4 million for the period, compared to a loss of $4,000 in 2012.

"Our first quarter revenues exceeded our expectations, as we had a stronger than anticipated flow of sales to single and multi-family homebuilders move through to completion," said Maurice Paquette, President, CEO and a director of Coast. "In the retail segment, given the current extremely cautious consumer spending climate, we were pleased to maintain our sales at just slightly below last year's level."

Paquette continued, "While our gross margin percentage continued to be eroded by fiercely competitive market conditions, we are encouraged by the sustained improvement in gross profit dollars and by our much stronger EBITDA performance."

Operating Highlights

During the first quarter, as part of its ongoing strategy to enhance profitability by increasing sales from its existing stores, Coast continued with renovations to its Calgary South store in Alberta and began upgrade work at its Saskatoon, Saskatchewan store. Both improvement projects are expected to be completed by mid-year.

Building on its successful national roll-out of the KitchenAid® brand in 2012, Coast proceeded with its plans to expand its Whirlpool® major appliances offering. The company is increasing the range of Whirlpool products it offers to retail customers and making this popular mid-to-higher-end product line available to its builder customers.

"We believe that having a wider range of Whirlpool models will make Coast an even more attractive shopping destination for retail customers, and particularly those discerning consumers who seek a value-added purchase experience," said Paquette. "These are customers who are not shopping on price alone. They choose Coast because of our state-of-the-art designer showrooms and working kitchens, our exceptional selection of mid-to-high-end brands and models, our highly knowledgeable sales staff, and our outstanding after-sales service."

As expected, inventory levels increased during the first quarter, due both to the higher sales volumes and the Whirlpool expansion. At March 31, 2013, inventory stood at $27.0 million, compared to $25.8 million at December 31, 2012.

As previously announced, the company successfully concluded its search for a new Board member during the quarter. Stephen T. Bellringer, MBA, LL.D (Hon) was appointed as a director and Chair of Coast's Board of Directors, effective March 27, 2013. Mr. Bellringer took over the leadership of Coast's board from director Donald J. A. Smith, CA, MBA who assumed the role on an interim basis at the end of November 2012. Mr. Smith remains as a director.

Dividends

During the first quarter, monthly dividends of $0.025 per share were declared for each of January, February and March, payable on or about the fifth day of the month following. This dividend rate equates to $0.30 per share on an annualized basis, representing a yield of approximately 10% per annum at recent Coast share trading prices. Coast's Board of Directors closely monitors the company's dividend level on a continuous basis.

Outlook

The following outlook discussion is qualified in its entirety by the forward-looking statements proviso at the end of this news release.