Coast Wholesale Appliances Income Fund declares February cash distribution, amount reduced in light of current market outlook

    TRADING SYMBOL: Toronto Stock Exchange - CWA.UN

    VANCOUVER, Feb. 18 /CNW/ - Coast Wholesale Appliances Income Fund (the
"Fund") today announced a cash distribution of $0.0416 per unit for the period
from February 1, 2009 to February 28, 2009. This amount represents a 50%
reduction from the previous monthly distribution of $0.0833 per unit. The new
amount equates to an annualized distribution of $0.50 per unit, down from the
previous payout of $1.00 per unit. The distribution is to be paid March 16,
2009 to unitholders of record on February 27, 2009. This is the Fund's
forty-fourth consecutive monthly cash distribution to public unitholders. In
addition, the 35% non-controlling interest will be paid a cash distribution of
$0.0416 per unit for the period from February 1, 2009 to February 28, 2009 by
Coast Wholesale Appliances LP ("Coast") on March 16, 2009.
    The distribution reduction follows the 18.7% reduction in the per-unit
monthly amount from $0.1025 to $0.0833 announced on October 22, 2008. Since
that time, there has been a further significant deterioration in the Canadian
economy. Coast's retail sales have softened considerably due to much more
cautious consumer spending and its builder business is slowing as a result of
the reduction in housing starts throughout Canada.
    "Given the continuing worldwide and Canadian economic uncertainty, the
Trustees have determined that it is prudent to reduce cash distributions
further. Based on the current economic conditions, the new distribution level
should enable the Fund to maintain our balance sheet strength in what has
become an exceptionally challenging business environment," said Ken Crump,
Chairman of the Board of Trustees.
    "In response to the impact of these marketplace conditions, Coast has
also undergone a rigorous review of all operating expenses to find additional
cost savings," said Blain Lawson, President and CEO of Coast. "We are focused
on operating as efficiently as possible, and remain confident in our ability
to manage through the current difficult economic environment."

    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, 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 16 stores, with 15 locations
across the four western provinces and one new store recently acquired in the
Greater Toronto Area.

    Forward-looking Statements

    Forward-looking statements are included in this news release, which
involve known and unknown risks, uncertainties and other factors that may
cause actual results, performance or achievements or industry results, to be
materially different from any future results, performance or achievements
expressed or implied by such forward-looking statements. These forward-looking
statements are identified by the use of terms and phrases such as
"anticipate", "believe", "estimate", "expect", "may", "plan", "will", and
similar terms and phrases, including references to assumptions. Such
statements may involve, but are not limited to, comments with respect to the
sustainability of our distributions and the level of our payout ratio in the
    These statements reflect current expectations of management regarding
future events and operating performance as of the date of this news release.
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 and the costs to
deliver these services; changes to planning and supply chain processes;
changes in consumer preferences; changes in the 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.
    Although the forward-looking statements contained in this news release
are based upon what management believes to be reasonable assumptions, Coast
cannot assure investors that actual results will be consistent with these
forward-looking statements. These forward-looking statements reflect
management's current beliefs and are based on information currently available
to Coast. They reflect current assumptions regarding future events and
operating performance including, without limitation, the following: a
continuing recession in the Canadian economy, including Western Canada and the
Greater Toronto Area (our current market areas); continuing access to current
credit facilities; volatility in exchange rates; low and stable interest
rates; difficult credit markets for our major builder customers regarding
financing their current and future building activities; reduced consumer
confidence in light of the recessionary environment and its impact on the
willingness of consumers to purchase household appliances; and a significant
reduction in new building permits compared to the last few years, and speak
only as of the date of this news release. These forward-looking statements are
made as of the date of this news release and Coast assumes no obligation to
update or revise them to reflect new events or circumstances, other than as
required by law.

For further information:

For further information: Jack Peck, Chief Financial Officer, Telephone:
(604) 301-3400 or, Website:

Organization Profile


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