Coastcast Corporation reported net sales were $13,133,000 For the second quarter of 2003 vs. $19,945,000. For the six months ended June 30, 2003 as compared to the same period in 2002, sales were $23,864,000 vs. $41,901,000.
The company expects to report a net loss for the second quarter and the six months ended June 30, 2003. This net loss for the second quarter 2003 is expected to increase significantly to reflect an impairment charge related to the company's fixed assets. The financial results for the second quarter and six months ended June 30, 2003 will be released upon the completion of the company's fixed asset impairment analysis in accordance with Financial Accounting Standard No. 144 (FAS144), “Accounting for the Impairment or Disposal of Long-Lived Assets.” The company anticipates that it will release earnings and file its second quarter Form 10-Q by mid September 2003.
Commenting, Hans Buehler, Chairman and CEO, stated: “The sales decrease was mainly due to a decline in golf sales mostly due to a decrease in unit sales resulting principally from the loss of market share to Chinese competitors. Also, non-golf sales decreased primarily due to a decrease in medical sales.
“In April 2003, we informed the shareholders that the company would consider sale of the company. The Board of Directors formed a special committee to evaluate alternatives. The special committee has engaged Fairmount Partners LLC, as financial advisor, to explore alternatives. This effort includes finding other interested buyers for the company.”
