Coast Distribution System Inc. (NYSE:CRV)

Second Quarter 2013 Results

• Net sales for the quarter increased 4.3%, to $35.6 million, compared to net sales of $34.1 million in the second quarter of 2012
• Coast reported significant improvement in its financial results for the second quarter of 2013, as it increased its net income in the quarter by 117.7%, to $1.1 million, or $0.23 per diluted share, up from $0.5 million, or $0.11 per diluted share, in the second quarter of 2012.

"We have maintained a strategic focus on growing market share and focusing on expanding sales of our higher-margin proprietary products. In the second quarter that strategy began to pay off as we saw a 27% improvement in gross profit on a much smaller increase in net sales, highlighting the profit opportunity associated with our proprietary products and new market channels. We have also seen gathering momentum in the RV market as consumers have continued to engage in the RV lifestyle, which is a strong driver for our business," said Coast's Chief Executive Officer Jim Musbach. "Through the first six months of 2013, overall RV shipments as reported by RVIA increased by 12.9%, while motorhome shipments have grown an impressive 33.6%, providing a foundation for improved sales and bottom-line results for our business during the remainder of the year. We remain committed to our strategic goal for 2013 of returning to profitability through continued investment in our higher-margin proprietary products. We plan to establish new product supply relationships, including relationships that enable us to increase the products that we source from lower cost, but high-quality, overseas suppliers, to support our growth strategy as we focus on our rapidly recovering core RV market. All of these factors make us confident about our ability to achieve our profit goals for the full year."