-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, QwiJgihiUgGQq80Ttgr/Ys78Ma/IdFYBzYPUUmtSLUGP4jO6Gn2gFHawI2HIf3pc CVd3oeuNrib1cjnUXwOnEA== 0000892569-97-003220.txt : 19971117 0000892569-97-003220.hdr.sgml : 19971117 ACCESSION NUMBER: 0000892569-97-003220 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19970930 FILED AS OF DATE: 19971114 SROS: AMEX FILER: COMPANY DATA: COMPANY CONFORMED NAME: COAST DISTRIBUTION SYSTEM CENTRAL INDEX KEY: 0000728303 STANDARD INDUSTRIAL CLASSIFICATION: WHOLESALE-MOTOR VEHICLE SUPPLIES & NEW PARTS [5013] IRS NUMBER: 942490990 STATE OF INCORPORATION: CA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 001-09511 FILM NUMBER: 97719493 BUSINESS ADDRESS: STREET 1: 1982 ZANKER RD CITY: SAN JOSE STATE: CA ZIP: 95112 BUSINESS PHONE: 4084368611 MAIL ADDRESS: STREET 1: 1982 ZANKER RD CITY: SAN JOSE STATE: CA ZIP: 95112 FORMER COMPANY: FORMER CONFORMED NAME: COAST RV INC DATE OF NAME CHANGE: 19880619 10-Q 1 QUARTERLY REPORT FOR THE PERIOD ENDED 9/30/97 1 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 -------- FORM 10-Q (Mark One) [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended SEPTEMBER 30, 1997 ------------------ OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to ----------------- ----------------- COMMISSION FILE NUMBER 1-9511 ------ THE COAST DISTRIBUTION SYSTEM - -------------------------------------------------------------------------------- (Exact name of Registrant as specified in its charter) CALIFORNIA 94-2490990 - -------------------------------------------------------------------------------- (State or other jurisdiction (I.R.S. Employer of incorporation or organization) Identification Number) 1982 ZANKER ROAD, SAN JOSE, CALIFORNIA 95112 - -------------------------------------------------------------------------------- (Address of principal executive offices) (Zip Code) (408) 436-8611 - -------------------------------------------------------------------------------- (Registrant's telephone number, including area code) Not Applicable - -------------------------------------------------------------------------------- (Former name, former address and former fiscal year, if changed, since last year) Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports); and (2) has been subject to such filing requirements for the past XXX 90 days. YES XX . NO . -- -- APPLICABLE ONLY TO CORPORATE ISSUERS: Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date. 5,246,879 shares of Common Stock as of November 10, 1997 2 THE COAST DISTRIBUTION SYSTEM AND SUBSIDIARIES INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS (Dollars in thousands) September 30, 1997 and December 31, 1996
September 30, December 31, 1997 1996 ASSETS ------------- ------------ - ------ (Unaudited) (Audited) CURRENT ASSETS Cash $ 2,492 $ 214 Accounts receivable - net 13,847 13,285 Inventories 40,911 43,193 Other current assets 3,529 3,347 -------- -------- Total current assets 60,779 60,039 PROPERTY, PLANT, AND EQUIPMENT - NET 4,911 5,355 OTHER ASSETS 18,402 23,048 -------- -------- $ 84,092 $ 88,442 ======== ======== LIABILITIES ----------- CURRENT LIABILITIES Current maturities of long-term obligations $ 3,703 $ 3,667 Accounts payable - trade 10,162 7,322 Other current liabilities 2,284 1,911 Short-term notes payable 1,500 1,500 -------- -------- Total current liabilities 17,649 14,400 LONG-TERM OBLIGATIONS Secured note payable to bank 24,448 27,956 Subordinated term note 2,333 4,667 Other long-term liabilities 1,429 1,496 -------- -------- 28,210 34,119 REDEEMABLE PREFERRED STOCK OF SUBSIDIARY 362 473 SHAREHOLDERS' EQUITY Common stock, no par value; authorized: 10,000,000; issued and outstanding: 5,246,879 at September 30, 1997 and 5,210,723 at December 31, 1996 19,560 19,440 Cumulative translation adjustment (107) (11) Retained earnings 18,418 20,021 -------- -------- 37,871 39,450 -------- -------- $ 84,092 $ 88,442 ======== ========
The accompanying notes are an integral part of these statements. 2 3 THE COAST DISTRIBUTION SYSTEM AND SUBSIDIARIES INTERIM CONDENSED STATEMENTS OF OPERATIONS (Dollars in thousands, except per share data)
Three Months Ended Nine Months Ended September 30, September 30, ------------------------- ------------------------- 1997 1996 1997 1996 --------- --------- --------- --------- Net sales $ 37,847 $ 37,552 $ 114,652 $ 117,091 Cost of sales, including distribution costs 32,715 32,783 98,004 98,675 --------- --------- --------- --------- Gross profit 5,132 4,769 16,648 18,416 Selling, general and administrative expenses 5,188 5,610 15,917 16,814 --------- --------- --------- --------- Operating income (loss) (56) (841) 731 1,602 Other income (expense) Equity in net earnings of affiliates (311) 541 636 1,414 Interest (787) (872) (2,630) (2,837) Other (822) (8) (823) 2,122 --------- --------- --------- --------- (1,920) (339) (2,817) 699 --------- --------- --------- --------- Earnings (loss) before income taxes (1,976) (1,180) (2,086) 2,301 Income tax provision (benefit) (526) (716) (493) 847 --------- --------- --------- --------- NET EARNINGS (LOSS) $ (1,450) $ (464) $ (1,593) $ 1,454 ========= ========= ========= ========= Earnings (loss) per common share (Note 3) $ (.28) $ (.09) $ (.31) $ .28 ========= ========= ========= =========
The accompanying notes are an integral part of these statements. 3 4 THE COAST DISTRIBUTION SYSTEM AND SUBSIDIARIES INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Dollars in thousands) Nine months ended September 30, (Unaudited)
1997 1996 -------- ------- Cash flows from operating activities: Net income (loss) $(1,593) $ 1,454 Adjustments to reconcile net earnings to net cash provided by operating activities: Depreciation and amortization 1,228 1,795 Equity in net earnings of affiliated companies (636) (1,414) Loss on sale of investment 523 -- Changes in assets and liabilities: (Increase) in accounts receivable (106) (2,702) Decrease in inventories 2,282 3,187 Decrease in prepaids and other current assets (182) 619 Increase in accounts payable 2,840 521 Increase in note, accrueds, and other current liabilities 409 464 ------- ------- Total adjustments 6,358 2,470 ------- ------- Net cash from operating activities 4,765 3,924 Cash flows from investing activities: Acquisition of businesses, net of cash acquired -- (683) Proceeds from sale of investment 4,024 -- Capital expenditures (319) (285) (Increase) in other assets (186) (185) ------- ------- Net cash provided by (used in) investing activities 3,519 (1,153) Cash flows from financing activities: Net borrowings under line-of-credit agreement (3,508) 222 Net borrowings (repayments) of other long-term debt (2,401) (2,476) Issuance of Common Stock pursuant to Employee Stock Option and Stock Purchase Plans 120 286 Redemption of redeemable preferred stock of subsidiary (111) (111) Dividends on preferred stock of subsidiary (10) (15) ------- ------- Net cash used in financing activities (5,910) (2,094) ------- ------- Effect of exchange rate changes on cash (96) (55) ------- ------- NET INCREASE IN CASH 2,278 622 Cash beginning of period 214 501 ------- ------- Cash end of period $ 2,492 $ 1,123 ======= =======
The accompanying notes are an integral part of these statements. 4 5 THE COAST DISTRIBUTION SYSTEM AND SUBSIDIARIES NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 1. In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments necessary to present the Company's financial position as of September 30, 1997 and the results of its operations and cash flows for the nine months ended September 30, 1997 and 1996. The accounting policies followed by the Company are set forth in Note A to the Company's financial statements in its Annual Report on Form 10-K for its fiscal year ended December 31, 1996. 2. The results of operations for the nine-month periods ended September 30, 1997 and 1996 are not necessarily indicative of the results for a full year. 3. Earnings per share are based upon the average number of common and common equivalent (dilutive stock options and warrants) shares outstanding during each period. 4. The Company leases its corporate offices, warehouse facilities and data processing equipment. Those leases are classified as operating leases as they do not meet the capitalization criteria of FASB Statement No. 13. The office and warehouse leases expire over the next seven years and the equipment leases expire over the next three years. The minimum future rental commitments under non-cancelable operating leases having an initial or remaining term in excess of one year as of December 31, 1996 are as follows:
(Dollars in thousands) --------------------------------------------------- Facilities Equipment Total ---------- --------- ------ Year ending December 31, 1997 $ 2,930 $ 81 $3,011 1998 2,555 79 2,634 1999 1,482 13 1,495 2000 454 3 457 2001 434 -- 434 Later years 1,439 -- 1,439 -------- ------ -------- $ 9,294 $ 176 $ 9,470 ======= ===== =======
5 6 ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION ----------------------------------------------------------- AND RESULTS OF OPERATIONS ------------------------- GENERAL FACTORS GENERALLY AFFECTING SALES OF RV AND BOATING PRODUCTS The Company is the largest wholesale distributor of replacement parts, accessories and supplies for recreational vehicles, and one of the largest distributors of replacement parts, accessories and supplies for boats, in North America. Sales are made by the Company to retail parts and supplies stores, service and repair establishments, and new and used recreational vehicle and boat dealers ("After-Market Customers"). The Company's sales are affected primarily by (i) usage of recreational vehicles and boats which affects the consumers' needs for and purchases of replacement parts, repair services and supplies, and (ii) sales of new recreational vehicles and boats, because consumers often "accessorize" their recreational vehicles and boats at the time of purchase. The usage and the purchase, by consumers, of recreational vehicles and boats depend, in large measure, upon the extent of discretionary income available to consumers and their confidence about economic conditions. Weather conditions also affect the usage of recreational vehicles and boats. As a result, the Company's sales and operating results can be, and in the past have been, adversely affected by recessionary economic conditions, increases in interest rates, which affect the availability and affordability of financing for purchases of recreational vehicles and boats, increases in gasoline prices which adversely affect the costs of using recreational vehicles and boats, and weather conditions. Until 1993, the Company's business consisted primarily of distributing and marketing to its customers products that the Company purchased from third-party manufacturers and that were sold under the brand names of those manufacturers. During the past four years, the Company has introduced into the marketplace a growing number of "proprietary products." These products have been designed for the Company by independent design professionals, to the Company's product specifications, are produced by independent manufacturers specifically for the Company and are marketed and sold by the Company under its own brand names. Sales of proprietary products, which accounted for 10% of the Company's net sales in 1994, increased to 15% and then to 23% of net sales in 1995 and 1996, respectively, both as a result of greater market acceptance of the Company's proprietary products and additions by the Company of new products to its proprietary products line. FACTORS AFFECTING RECENT OPERATING RESULTS During the five-year period ended December 31, 1995, the Company purchased substantially all of its requirements for air conditioners, awnings and refrigerators for recreational vehicles from Dometic Corporation ("Dometic"), a division of White Consolidated Industries. Sales of such products accounted for 22% and 24%, respectively, of the Company's sales in 1994 and 1995. During the first quarter of 1996 Dometic terminated its supply agreement with the Company (as well as its supply agreements with other independent distributors) as a result of its decision to integrate its operations vertically by marketing its products directly to After-Market Customers in direct competition with the Company and other After-Market distributors of RV products. In response to that action by Dometic, the Company entered into a supply contract with Recreation Vehicle Products, Inc. ("RVP"), which manufactures air conditioners under the Coleman(R) brand name and awnings under the Faulkner brand name. Under that contract, RVP agreed to supply all of the Company's requirements for RV air conditioners and awnings for a minimum term of five years, commencing in 1996. 6 7 As a result of both the magnitude and timing of the changes in supply relationships and the introduction, at the same time, of a number of new proprietary products, RVP and certain of the Company's proprietary product manufacturers encountered difficulties in meeting the Company's requirements for their products for the spring and summer months when demand from After-Market customers is at its highest (see "Seasonality and Inflation"). In addition the Company encountered increased competition within the RV products After-Market due to Dometic's entry as a competitor in that market and increased price competition from other distributors seeking to regain market share lost to the Company's proprietary products and to Dometic. Since the supply problems encountered by the Company primarily affected its supply of, and therefore its ability to meet customer demand for, higher margin products, the supply problems and the increased competition adversely affected the Company's sales and margins, particularly in the last three quarters of 1996, as the Company lost sales of such products to its competitors. The changes in supply relationships and increased competition in 1996 also adversely affected the Company's net sales and margins in the first nine months of 1997 and are expected to have an adverse effect on operating results during the balance of 1997 and into 1998, the extent of which is difficult to predict. There also is no assurance that additional changes within the After-Market, that would increase competition or create further uncertainties for the Company, as well as others in the industry, will not occur in the future. RESULTS OF OPERATIONS INCOME (LOSS) FROM OPERATIONS Net Sales. Net sales increased by approximately $295,000 or 1% in the quarter ended September 30, 1997, as compared to the corresponding quarter of 1996. For the nine months ended September 30, 1997 net sales declined by 2% to $114,652,000 from $117,091,000 in the same nine months of 1996, due primarily to a softening of consumer demand and adverse weather conditions which affected the Northern United States and Canada in the first half of 1997. Gross Profits. The Company's gross margin increased to 13.6% of net sales in the three months ended September 30, 1997 from 12.7% for the same period of 1996 due primarily to (i) a firming of pricing within the After-Market that followed a period of price declines during the first half of 1997, and (ii) a reduction in warehouse costs. In the nine months ended September 30, 1997 the Company's gross margin decreased to 14.5% from 15.7% for the corresponding period of 1996 due primarily to (i) changes in product mix to a greater proportion of lower margin products; (ii) increased price competition among After-Market Distributors and (iii) the impact of fixed costs on a lower sales base. Selling, General and Administrative Expenses. As a percentage of net sales, selling, general and administrative expenses decreased to 13.7% for the third quarter of 1997 from 14.9% in the comparable quarter of 1996. In the nine months ended September 30, 1997, these expenses decreased to 13.9% of net sales from 14.4% for the same period of 1996. These decreases were primarily a result of increased efficiencies associated with the Company's national call center, a reduction of the Company's telephone expenses and the expiration of certain non-competition agreements that were obtained by the Company in connection with its acquisitions of other businesses in previous years. Operating Income (Loss). Due to the combined effects of the increases in sales and gross margin, and the reduction in selling, general and administrative expenses during the third quarter of 1997, the Company's operating loss declined to $56,000 as compared to the operating loss of $841,000 incurred in the third quarter 1996. The decreases in sales and gross margin during the first six months of 1997 accounted for the decline in operating income to $731,000 in the nine months ended September 30, 1997 from $1,602,000 in the same nine months of 1996. 7 8 OTHER INCOME (EXPENSE) Equity in Net Earnings of Affiliates. The Company maintains ownership positions in certain companies in related industries ("affiliated companies"). The Company's ownership interests in these affiliated companies are accounted for under the equity method of accounting. Under this method, the Company includes in its operating results its pro rata share of the net income or losses of these companies, which is reported as "equity in net earnings (loss) of affiliates." During the third quarter of 1997, the Company sold its equity interest in one of these companies, H. Burden Limited ("Burden"), a distributor of caravan and boating products in Western Europe in which the Company had owned a 35% ownership interest. The Company recorded a loss of $311,000 from its investments in such affiliated companies during the third quarter of 1997, as compared to earnings of $541,000 from such investments in the third quarter of 1996. That loss was attributable to (i) the exclusion of the Company's pro rata share of Burden's earnings during the third quarter of 1997 because of the sale, and (ii) a loss incurred during the quarter by HWH Corporation, a manufacturer of hydraulic leveling devices in which the Company has a 34% ownership interest. The Company's equity in the net earnings of the affiliated companies is not cash, nor is the Company obligated to pay any cash as a result of any losses incurred by any of these companies. Interest Expense. In the quarter ended September 30, 1997, interest expense declined by $85,000 or 10%, as compared to the same quarter of 1996. Interest expense for the nine months ended September 30, 1997 decreased by $207,000 or 7%, as compared to the same period in 1996. These decreases were the result of reductions in average long-term borrowings outstanding during the quarter and nine months ended September 30, 1997 in comparison to the same periods of 1996. Other. The Company received cash proceeds from the sale of its investment in Burden of approximately $4,024,000. However, for financial reporting purposes, the Company recorded a loss on that sale of approximately $525,000, which represents the excess of the amount at which the investment was carried on the books of the Company for financial reporting purposes over the price at which the Company's investment was sold. Under applicable accounting principles the Company's investment in Burden was carried at an amount equal to the sum of (i) the amount paid by the Company for that investment, plus (ii) its proportionate share of the cumulative earnings of Burden for the period it held such investment. The Other income of $2,122,000 recorded in the nine months ended September 30, 1996 represents the net proceeds to the Company of a favorable settlement of a lawsuit in the second quarter of 1996. 8 9 LIQUIDITY AND CAPITAL RESOURCES The Company finances its working capital requirements for its operations primarily with borrowings under a long-term revolving bank credit facility and internally generated funds. Under that credit facility, the Company may borrow up to the lesser of (i) $50,000,000 or (ii) an amount equal to 80% of its eligible accounts receivable and 50% of its eligible inventory (the "borrowing base"). At November 7, 1997, outstanding borrowings under the revolving credit facility were approximately $23,050,000. The Company believes that available credit under the revolving credit facility, together with internally generated funds, will be sufficient to enable the Company to meet its working capital requirements for the foreseeable future. During the nine months ended September 30, 1997, reductions in inventories and increases in accounts payable enabled the Company to generate cash from operating activities of $4,765,000 as compared to $3,924,000 in the same nine months of 1996. Net cash provided by investing activities was $3,519,000 in the nine months ended September 30, 1997, as compared to net cash used in the same period of 1996 of $1,153,000. During the third quarter of 1997, the Company received proceeds of $4,024,000 from the sale of its European investment in H. Burden Limited. The Company used cash of $683,000 in 1996 to acquire 5% of the outstanding shares of Burden. During the first nine months of 1997, borrowings under the Company's revolving line of credit decreased by $3,508,000, as compared to an increase of $222,000 in the same period of 1996. The Company made principal reduction payments of $2,333,000 on its outstanding senior subordinated notes (the "Subordinated Notes") in 1997 and 1996, principally with borrowings under its long-term bank credit facility. SEASONALITY AND INFLATION Sales of recreational vehicle and boating parts, supplies and accessories are seasonal. The Company has significantly higher sales during the six-month period from April through September than it does during the remainder of the year. Because a substantial portion of the Company's expenses are fixed, operating income declines and the Company sometimes incurs losses and must rely more heavily on borrowings to fund operating requirements in the months when sales are lower. Generally, the Company has been able to pass inflationary price increases on to its customers. However, inflation also may cause or may be accompanied by increases in gasoline prices and interest rates. Such increases, or even the prospect of increases in the price or shortages in the supply of gasoline, can adversely affect the purchase and usage of recreational vehicles, which can result in a decline in the demand for the Company's products. -------------------------------- This Report contains forward-looking information which reflects Management's current views of future financial performance. The forward-looking information is subject to certain risks and uncertainties, including, but not limited to, the effect on future performance of the changing product supply relationships in the industry and the uncertainties created by those changes; the potential for increased price competition; and possible changes in economic conditions, prevailing interest rates or gasoline prices, or the occurrence of unusually severe weather conditions, that can affect both the purchase and usage of recreational vehicles and boats and which, in turn, affects purchases by consumers of the products that the Company sells. For information concerning such factors and risks, see the foregoing discussion in this section of this Report titled, "Management's Discussion and Analysis of Financial Condition and Results of Operation." Due to such uncertainties and risks, readers are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date of this Report. 9 10 PART II ITEM 4. SUBMISSION OF MATTERS FOR VOTE OF SECURITY HOLDERS (a) The Annual Meeting of Shareholders was held on August 7, 1997. (b) Set forth below is the name of each director elected at the meeting and the number of votes cast for their election and the number of votes withheld. The election was uncontested and there were no broker non-votes in the election. Directors Elected at the Annual Meeting: Name of Number of Number of Nominee/Director Votes "For" Votes "Withheld" ---------------- ----------- ---------------- Thomas R. McGuire 4,695,003 451,551 Louis B. Sullivan 4,691,693 451,881 John E. Turco 4,695,923 450,631 Brian P. Friedman 4,696,522 450,032 Ben A. Frydman 4,695,523 451,031 Robert S. Throop 4,695,523 451,231 (c) At the Annual Meeting, the shareholders considered and voted on, and they approved, a change in the Company's state of incorporation from California to Delaware by means of a merger of the Company into a wholly-owned Delaware subsidiary of the Company (the "Delaware Reincorporation"). Set forth below are the number of votes cast "For," "Against" and "Abstain" on the Delaware Reincorporation. There were 576,544 broker non-votes with respect to this proposal. For: 3,469,063; Against: 1,097,297; Abstain: 3,850. (d) At the Annual Meeting, the shareholders also considered and voted on, and they approved, the adoption of the 1997 Employee Stock Purchase Plan (the "Stock Purchase Plan"), which sets aside up to 400,000 shares of Company common stock for purchase by employees of the Company, at a discount from market price, from payroll deductions. Set forth below are the number of votes cast "For," "Against" and "Abstain" with respect to the Stock Purchase Plan. There were 490,210 broker non-votes with respect to this proposal. For: 4,591,681; Against: 56,241; Abstain: 8,442. ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K AND EXHIBITS --------------------------------------------- (a) Exhibits. -------- Exhibit 11.1 Computation of Loss Per Share for the Quarter Ended September 30, 1997. Exhibit 27. Financial Data Schedule (b) Reports on Form 8-K. ------------------- A Report on Form 8-K was filed during the quarter ended September 30, 1997 to report, under Item 5 - Other Events, the sale of the Company's investment in Burden. 10 11 SIGNATURES ---------- Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. Dated: November 12, 1997 THE COAST DISTRIBUTION SYSTEM By: /s/ SANDRA A. KNELL --------------------------------- Sandra A. Knell Executive Vice President and Chief Financial Officer S-1 12 INDEX TO EXHIBITS
Exhibit Number Description - -------------- ----------- Exhibit 11.1 Computations of Earnings (Loss) Per Share for the Quarter and Nine Months Ended September 30, 1996 Exhibit 27. Financial Data Schedule
E-1 EX-11.1 2 COMPUTATION OF LOSS/SHARE FOR QTR. ENDED 9/30/97 1 EXHIBIT 11.1 THE COAST DISTRIBUTION SYSTEM Computation of Loss Per Share Quarter Ended September 30, 1997
Primary Fully Diluted Loss Per Share Loss Per Share -------------- -------------- I. Weighted Averages Shares Outstanding 5,246,879 5,246,879 II. Net Loss $ (1,450,000) $ (1,450,000) Dividends paid on preferred stock of subsidiary (4,000) (4,000) -------------- -------------- Net loss attributable to common shareholders $ (1,454,000) $ (1,454,000) Divided by Weighted Average Shares Outstanding 5,246,879 5,246,879 -------------- -------------- Loss Per Share $ (0.28) $ (0.28) ============== =============
2 EXHIBIT 11.1 (Cont'd.) THE COAST DISTRIBUTION SYSTEM Computation of Earnings Per Share Nine Months Ended September 30, 1997
Primary Fully Diluted Earnings Earnings Per Share Per Share ------------ ------------- Weighted averages shares outstanding 5,235,489 5,235,489 Net Loss $(1,593,000) $(1,593,000) Dividend paid on preferred stock of subsidiary (10,000) (10,000) ----------- ----------- Net loss attributable to common shareholders $(1,603,000) $(1,603,000) Divided by Weighted Average Shares Outstanding 5,235,489 5,235,489 ------------ ------------ Loss per share $(0.31) $(0.31) ====== ======
EX-27.0 3 FINANCIAL DATA SCHEDULE
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE BALANCE SHEET AS OF, AND THE STATEMENT OF OPERATIONS FOR THE PERIOD ENDED SEPTEMBER 30, 1997 INCLUDED IN REGISTRANT'S QUARTERLY REPORT ON FORM 10-Q FOR THE QUARTER ENDED SEPTEMBER 30, 1997 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH BALANCE SHEET AND STATEMENT OF OPERATIONS AND THE NOTES THERETO. 1,000 9-MOS DEC-31-1997 JAN-01-1997 SEP-30-1997 2,492 0 13,847 0 40,911 60,779 4,911 0 84,092 17,649 28,210 362 0 19,560 18,311 84,092 114,652 114,652 98,004 113,975 (2,817) 0 2,630 (2,086) (493) (1,593) 0 0 0 (1,593) (.31) (.31)
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