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Coast Wholesale Appliances posts $28.9-million fourth-quarter loss

VANCOUVER – Coast Wholesale Appliances reported Thursday a fourth-quarter loss of $28.9 million, due mainly to a goodwill charge.

The Vancouver-based appliance supplier (TSX:CWA) said the loss compared with a profit of nearly $2 million a year earlier.

Coast booked a $33.9-million goodwill impairment in response to its economic forecasts, which was partially offset by a $3.5-million deferred tax recovery.

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Before those items, Coast said it would have earned $2 million.

Sales revenues for the quarter were $35.3 million, up from $32.8 million during the same 2010 period.

In a release, CEO Maurice Paquette said Coast’s outlook is cautious for 2012.

“Increasing multi-family development activity through 2011 allowed us to enter 2012 with a healthy order backlog in this sector of our builder business,” said Paquette.

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“Moving through the year, we expect to continue to benefit from our balanced business model, which allows us to draw revenues from all of the new home, home renovation and retail markets. We anticipate that economic growth will remain slow in our Western Canadian and (Greater Toronto Area) markets through 2012 and into 2013.”

Coast supplies major household appliances and accessories to builders and developers of multi-family and single-family housing, and to retail customers.

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