Attractive Monthly Distributions
The Fund has met all of its cash distribution commitments in full since its inception in June 2005, with an increase to the monthly distribution amount in October 2007. Currently, the Fund pays its unitholders a monthly distribution of $0.1025 per unit.
Solid Industry Fundamentals
Major household appliances represent a $3.3 billion market opportunity in Canada. Strong demand continues to be driven by robust housing activity and growth in home renovation, as well as product innovation, increasing focus on home décor and energy efficiency, and favourable demographics.
Proven and Sustainable Business Model
Coast has operated successfully since 1978. Coast delivers complete appliance solutions with an unusually wide selection of products and brands, and a superior service offering. It benefits from established supplier relationships and a loyal, diversified customer base.
Leading Market Position
Coast has an estimated 25% share of the developer and builder market in Western Canada, as well as a significant and growing share of the retail market.
Track Record of Stable, Growing Cash Flow
In 2007, sales increased by 13.6% over 2006 to a record $143.0 million and EBITDA of $14.1 million represented an EBITDA margin of 9.8%.
In 2006, sales increased by 8.1% over 2005 to $126.0 million and EBITDA of $14.2 million represented an EBITDA margin of 11.3%
Growth Potential
A significant opportunity exists for Coast to increase sales from existing branches by capitalizing on growing recognition of the Coast name and tailoring product offerings to meet regional preferences. Geographic expansion also offers growth potential, particularly in Eastern Canada.
Experienced, Proven Management
Coast’s management team has a demonstrated ability to successfully execute on business strategy. Management’s interests are aligned with those of unitholders through a long-term incentive plan.