Coast Distribution System Chairman Adopts Rule 10b5-1 Share Trading Plan To
Diversify His Investment Portfolio
MORGAN HILL, Calif., Nov. 29, 2012
MORGAN HILL, Calif., Nov. 29, 2012 /PRNewswire/ --The Coast Distribution
System, Inc. (NYSE MKT: CRV) today reported that it has been informed by
Thomas R. McGuire, the Company's Chairman, that he has established a plan,
pursuant to Securities Exchange Commission Rule 10b5-1, to sell up to a total
of 62,500 of the more than 495,000 shares of Coast common stock that he owns.
It is expected that those 62,500 shares will be sold in brokerage transactions
over a period of approximately five quarters.
Mr.McGuire is the Company's largest stockholder, owning 10.8% of its
outstanding shares. This does not include an additional 40,000 shares that he
has a right to purchase on exercise of stock options.
Rule 10b5-1 under the Securities Exchange Act of 1934 allows officers and
directors to adopt written plans for trading securities in a
non-discretionary, pre-scheduled manner in order to avoid concerns about
initiating stock transactions when the officer or director may be aware of
non-public information. Such plans also allow officers and directors to
diversify their holdings and minimize the potential market effect of stock
sales by spreading them out over time.
Mr.McGuire stated, "I have decided to implement this plan primarily to
diversify my investment portfolio. I remain confident about Coast's future
prospects, and I have no plans at this time to sell any additional Coast
shares and will continue to own more than 400,000 shares even after completing
the sale of the 62,500 shares under this Rule10b5-1 plan."
About The Coast Distribution System
The Coast Distribution System, Inc. (www.coastdistribution.com) is one of
North America'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 10,000 products through
17 distribution centers located in the United States 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, and its
shares are listed on the NYSE MKT under the ticker symbol CRV.
Statements in this news release regarding our expectations and beliefs about
our future financial performance and financial condition, as well as trends in
our business and markets are "forward-looking statements" as defined in the
Private Securities Litigation Reform Act of 1995. Forward-looking statements
often include words such as "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 are based on current
information and, because our business is subject to a number of risks and
uncertainties, our actual operating results and financial condition in the
future may differ, possibly significantly, from the future financial
performance and financial condition expected at the current time as set forth
in those forward looking statements. Those risks and uncertainties include
the possible occurrence of declines in discretionary income and loss of
confidence among consumers regarding economic conditions, a tightening in the
availability of and increases in the cost of consumer credit, increases in the
costs of and shortages in the supply of gasoline, and unusually severe or
extended winter weather conditions, all of which can adversely affect the
willingness and ability of consumers to purchase and use RVs and boats and,
therefore, their need for and willingness to purchase the products we sell.
Moreover, the recent economic recession and credit crisis may have longer term
consequences for our business and future financial performance, because they
(i)have caused the closure or bankruptcies of a large number of RV and
boating dealers which could significantly reduce the number of aftermarket
customers who purchase products from us in the future; and (ii)may lead to
changes in consumer spending and borrowing habits that could extend well
beyond the economic recovery and, therefore, could result in longer term
declines in purchases and the usage of RVs and boats by consumers and,
consequently, also in their purchases of the products we sell. Additional
risks include, but are not limited to, our dependence on bank borrowings to
fund a substantial amount of our working capital requirements, which can make
us more vulnerable to downturns in economic conditions; further increases in
price competition within our markets that could further reduce our margins
and, therefore, our earnings; and 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 of our single source suppliers
were to encounter production or other problems or terminate their product
supply arrangements with us.
These risks and uncertainties, as well as other risks to which our business is
subject, are more fully described in Item 1A, entitled "Risk Factors," in the
Company's Annual Report on Form 10-K for the fiscal year ended December31,
2011, which was filed with the Securities and Exchange Commission on March30,
2012, and readers of this news release are urged to review the discussion of
those risks and uncertainties 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
obligation to update forward-looking statements contained in this news release
or in the above-referenced 2011 Annual Report, whether as a result of new
information, future events or otherwise, except as may be required by law or
the rules of the NYSE MKT.
SOURCE The Coast Distribution System, Inc.
Contact: Sandra Knell, CFO, +1-408-782-6686, email@example.com
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