MORGAN HILL, Calif., June 2 /PRNewswire-FirstCall/ -- The Coast
Distribution System, Inc. (Amex: CRV) announced its Board of Directors
declared its 2008 second quarter dividend of $0.03 per share, to be paid on
June 27, 2008 to shareholders of record as of June 13, 2008. This compares to
a quarterly dividend of $0.07 per share paid on March 31, 2008.
"With the continued softness in our core markets and the economic
uncertainties that exist, we are taking steps to manage our resources so that
Coast is well-positioned when our core markets rebound," said James Musbach,
President and CEO of Coast. "Although we continue to view the quarterly cash
dividend as a way to return value to our shareholders, current market
conditions require prudence in managing our assets and cash in particular."
This dividend marks the fourteenth consecutive quarterly cash dividend since
Coast's Board of Directors established the dividend policy in Feb. 2005.
About The Coast Distribution System
The Coast Distribution System, Inc. (www.coastdistribution.com) is one of
North American's largest wholesale aftermarket suppliers of replacement parts,
supplies and accessories for the recreational vehicle (RV), pleasure boat and
outdoor recreation markets. Coast supplies more than 14,000 products from 500
manufacturers through 17 distribution centers located in the U.S. and Canada.
Most of Coast's customers consist of independently owned RV and marine
dealers, supply stores and service centers. Coast is a publicly traded
company on the American Stock Exchange under the ticker symbol CRV.
Cautionary Statements Regarding Forward-Looking Information
The declaration of cash dividends in the future, pursuant to the Company's
dividend policy, is subject to final determination each quarter by the Board
of Directors based on a number of factors, including the Company's financial
performance and its available cash resources. Also, it could become necessary
for the Company to obtain the consent of its lender under its secured bank
loan agreement in order to pay cash dividends in the future. For these
reasons, as well as others, there can be no assurance that dividends in the
future will be equal or similar to the amount described in this press release
or that the Board of Directors will not decide to suspend or discontinue the
payment of cash dividends in the future.
Statements in this news release regarding our expectations and beliefs
about our future financial performance and trends in our markets are
"forward-looking statements" as defined in the Private Securities Litigations
Reform Act of 1995. Forward-looking statements often include the words
"believe," "expect," "anticipate," "intend," "plan," "estimate," "project," or
words of similar meaning, or future or conditional verbs such as "will,"
"would," "should," "could," or "may."
The forward-looking statements in this news release regarding our future
financial performance are based on current information and, because our
business is subject to a number of risks and uncertainties, actual operating
results in the future may differ significantly from the future financial
performance expected at the current time. Those risks and uncertainties may
include, among others: Loss of confidence among consumers regarding economic
conditions, which could adversely affect their willingness to purchase and use
their RVs and boats and which, in turn, would affect their purchases of the
products we sell; increases in interest rates which affect the availability
and affordability of financing for RVs and boats; increases in the costs and
shortages in the supply of gasoline which increase the costs of using, and the
willingness and ability of consumers to use, RVs and boats; and unusually
severe or extended winter weather conditions, which can reduce the usage of
RVs and boats for periods extending beyond the ordinary winter months or to
regions that ordinarily encounter milder winter weather conditions; possible
increases in price competition within our markets that could reduce our
margins and, therefore, our earnings; our practice of obtaining a number of
our products from single manufacturing sources, which could lead to shortages
in the supply of products to us in the event any single source supplier were
to encounter production or other problems; and possible changes in supply
relationships in our markets, which could lead to increased competition or to
reductions in the number of products we are able to offer our customers; and
uncertainties as to whether or not we will succeed in our efforts to diversify
into other markets, such as the outdoor power products, where we face
considerable competition from larger and better known companies that have
greater marketing and financial resources. Certain of these risks and
uncertainties, in addition to other risks, are more fully described in the
Company's Annual Report on Form 10-K for the fiscal year ended December 31,
2007, as filed with the Securities and Exchange Commission, and readers of
this news release are urged to review the discussion of those risks and
uncertainties that is contained in that Report.
Due to these and other possible uncertainties and risks, readers are
cautioned not to place undue reliance on the forward-looking statements
contained in this news release, which speak only as of today's date, or to
make predictions based solely on historical financial performance. We also
disclaim any obligations to update forward-looking statements contained in
this news release or in the above referenced 2007 Form 10-K Annual Report,
whether as a result of new information, future events or otherwise.
SOURCE The Coast Distribution System, Inc.
