Coast Distribution System Inc. has declared a special dividend and Chairman Tom McGuire said he was hopeful it is a sign of things to come for shareholders.
The 6 cents-a-share dividend will be paid on April 23 to shareholders of record as of April 9.
Coast, a distributor of aftermarket parts, accessories and supplies to around 15,000 RV and boat dealers in the U.S. and Canada, earned $2.3 million, or 50 cents a share, in 2003, McGuire said.
“We are pleased that the earnings we generated in 2003 have made it possible for the company to pay a cash dividend to our shareholders,” said McGuire, who also is CEO. “We look forward to being able to pay cash dividends in the future.
“However, whether or not future dividends will be paid will depend on a number of factors, including our ability to generate earnings and positive cash flow from operations and the cash requirements of our business,” McGuire said. “Additionally, we need the consent of our bank lender for the payment of future dividends.”
Coast, an American Stock Exchange-listed company, has almost 4.5 million shares outstanding, so the dividend payout will amount to around $270,000.