Coastcast Corporation reported sales for the fourth quarter of 2002 as compared to the same period in 2001, were $8,109,000 vs. $24,796,000, net loss was ($2,349,000) vs. ($2,489,000), and diluted loss per share was ($0.31) vs. ($0.33).
For the year ended December 31, 2002 as compared to 2001, sales were $62,446,000 vs. $115,480,000, net loss was ($10,384,000) vs. ($2,290,000), and diluted loss per share was ($1.36) vs. ($0.30).
Commenting on the past year and quarter, Hans Buehler, Chairman and CEO, stated: “It was the most difficult time in the history of the company. Because our business contracted so dramatically, we were compelled to make commensurate reductions in our facilities and work force. As a result, many trusted employees are no longer with us. Most had been with the company for many years and some longer than twenty years. Those changes are painful to all of us.
“I now believe that the worst is behind us. We expect a slow and gradual recovery. We have been able to build confidence with our customers, evidenced by receipt of contracts for new programs. That is very important to our future. Our restructuring has resulted in a more efficient organization and we expect to be a more cost-effective producer. All this causes us to be cautiously optimistic in viewing what is ahead of us.
“We still anticipate losses for the early periods of this year, but expect them to narrow and turn to a profit as our anticipated volume increases later this year.”
Coastcast Corporation Financial Highlights ($ in 000s, except share data) Statements of Operations Summary (Unaudited) Three Months Ended December 31, 2002 2001 Sales $8,109 $24,796 Cost of sales 10,586 27,000 Gross loss (2,477) (2,204) Selling, general & administrative expense 964 1,482 Impairment of fixed assets 271 - Restructuring charges (36) - Loss from operations (3,676) (3,686) Other income, net 59 55 Loss before benefit from income taxes (3,617) (3,631) Benefit from income taxes (1,268) (1,142) Net loss $(2,349) $(2,489) Year Ended December 31, 2002 2001 Sales $62,446 $115,480 Cost of sales 60,539 112,266 Gross profit 1,907 3,214 Selling, general & administrative expense 5,211 6,800 Impairment of fixed assets 3,745 - Restructuring charges 3,567 - Loss from operations (10,616) (3,586) Other income, net 139 396 Loss before (benefit) provision for income taxes (10,477) (3,190) (Benefit) provision for income taxes (93) (900) Net loss $(10,384) $(2,290)