Coast Wholesale Appliances Income Fund declares October cash distribution, amount reduced in light of market conditions



    TRADING SYMBOL: Toronto Stock Exchange - CWA.UN

    VANCOUVER, Oct. 22 /CNW/ - Coast Wholesale Appliances Income Fund (the
"Fund") today announced a cash distribution of $0.0833 per unit for the period
from October 1, 2008 to October 31, 2008. This amount represents an 18.7%
reduction from the previous monthly distribution of $0.1025 per unit. This
equates to an annualized distribution of $1.00 per unit, which is down by
$0.23 from the previous payout of $1.23 per unit. The distribution is to be
paid November 17, 2008 to unitholders of record on October 31, 2008. This is
the Fund's fortieth consecutive monthly cash distribution to public
unitholders. In addition, the 35% non-controlling interest will be paid a cash
distribution of $0.0833 per unit for the period from October 1, 2008 to
October 31, 2008 by Coast Wholesale Appliances LP on November 17, 2008.
    The Fund also reported that it will be recording a write-off of
approximately $1.2 million in the third quarter of 2008 related to
uncollectible accounts receivable as a result of financial improprieties
committed by an employee at one of its stores. These financial improprieties
were detected in a corporate review of internal financial controls and were
restricted to the one store. Blain Lawson, Coast's President and CEO said
that, after a rigorous investigation to determine the scope and source of the
loss, the matter has now been turned over to the local police authorities for
investigation. While Coast is pursuing all possible civil remedies, it is
uncertain whether any material amount of the loss will be recovered. Coast has
implemented new organization-wide internal controls and protocols for
financial monitoring and reporting.
    "Given the current worldwide economic uncertainty and the magnitude of
the accounts receivable write-down, the Trustees have determined that it is
prudent to reduce our cash distributions to an amount that we believe will be
sustainable going forward," said Ken Crump, Chairman of the Board of Trustees.
"The new distribution level should also enable us to maintain the balance
sheet strength we need to pursue our growth strategy while both keeping our
payout ratio in an appropriate range and continuing to give our unitholders a
significant return on their investment."
    The Fund will release its third quarter results on November 3, 2008.

    Coast Wholesale Appliances Income Fund is an unincorporated, open-ended
limited purpose trust launched on June 23, 2005 with the completion of an
initial public offering of 6,525,000 trust units. The Fund was created to
acquire and hold a 65% indirect interest in Coast Wholesale Appliances LP
(Coast), a leading independent supplier of major household appliances to
developers and builders of multi-family and single-family housing, and to
retail customers in Western Canada. Founded in 1978, Coast operates 15 stores
and four warehouse distribution centres across the four western provinces.

    Forward-looking statements

    This news release contains forward-looking statements based on
assumptions considered reasonable at the time they were prepared. Any
statements that are contained herein that are not statements of historical
fact may be deemed to be forward-looking statements. These statements speak
only to the conditions in existence as of the date of this news release, and
the Fund maintains no obligation to update such statements.
    Forward-looking statements involve significant risks and uncertainties,
should not be read as guarantees of future performance or results, and will
not necessarily be accurate indications of whether or not such results will be
achieved. A number of factors could cause actual results to differ materially
from the results discussed in the forward-looking statements, including, but
not limited to, the following factors: sensitivity to general economic
conditions; maintenance of profitability and management of growth;
competition; fluctuations in fuel and commodity pricing, which may impact
freight and other costs; usage of extended warranty programs; changes to
planning and supply chain processes; changes in consumer preferences; mix of
product sales; reliance on suppliers; lack of supplier agreements; reliance on
key personnel; foreign exchange rates as they relate to imported products; and
interest rates.





For further information:

For further information: Jack Peck, Chief Financial Officer, Telephone:
(604) 301-3400, or invest@coastappliances.com; Website:
www.coastincomefund.com

Organization Profile

COAST WHOLESALE APPLIANCES INCOME FUND

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890