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MORGAN HILL, Calif., Sept. 5, 2007 —
The Coast Distribution System, Inc. (AMEX: CRV) announced its Board
of Directors declared the cash dividend for its fiscal third quarter of
2007 of $0.07 per share, to be paid on Sept. 28, 2007 to shareholders of
record as of Sept. 17, 2007.
“This is our eleventh consecutive
quarterly cash dividend since the adoption of our dividend policy in
Feb. 2005,” said Thomas R. McGuire, Chairman and CEO of Coast. “Our
dividend policy is a reflection of the Board’s confidence in the long
term growth of Coast, as well as an important means of increasing
shareholder value.”
Coast announced in August 2006 an increase
in the Company’s regular quarterly cash dividend from $0.05 per share to
$0.07 per share, for a total of $0.28 per share for the fiscal year.
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 12,000 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. 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, 2005,
as amended by Amendment No. 1 on Form 10-K/A, and readers of this news
release are urged to review the discussion of those risks and
uncertainties that are 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 2005 Annual Report, whether as a
result of new information, future events or otherwise.
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Contact:
Sandra Knell, CFO
408-782-6686 / sknell@coastdist.com
or
Ryan McGrath
Lambert, Edwards & Associates, Inc.
616-233-0500 / mail@lambert-edwards.com
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