Coast Wholesale Appliances Inc.

Coast Wholesale Appliances Inc.

December 15, 2011 16:05 ET

Coast Wholesale Appliances to Sell KitchenAid® Products Across Canada

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 15, 2011) - Coast Wholesale Appliances Inc. (Coast) (TSX:CWA) today announced that it has secured national distribution rights for the popular KitchenAid brand of major household appliances, effective January 1, 2012. Coast currently sells KitchenAid products in Saskatchewan and Manitoba, and at its store in the Greater Toronto Area of Ontario. The company will be adding the higher-end brand at its 12 stores in BC and Alberta early in the new year.

"Coast's wide selection of recognized brands is a major competitive advantage and we expect that the addition of KitchenAid appliances at our BC and Alberta locations will create new sales opportunities in both the contract and retail segments of our business," said Maurice E. Paquette, President, CEO and a director of Coast. "The brand holds strong appeal for both our developer and builder customer base and the upper end of the consumer market."

The extension of the KitchenAid line across Coast's sales network is part of the company's ongoing inventory optimization strategy. "We are continuing to review and refine our product and supplier mix to better fit our core markets," said Paquette. "This process has resulted in the elimination of certain marginal product lines and has allowed us to enhance our focus on our key suppliers. Ultimately, we expect to see a marked improvement in our inventory turns."

Coast Profile

Coast is a leading independent supplier of major household appliances and accessories to developers and builders of multi-family and single-family housing, and to retail customers. Founded in 1978, Coast currently operates 15 stores across the four western provinces and one store in the Greater Toronto Area of Ontario, as well as a network of warehouse distribution centres strategically situated to serve these locations.

Forward-looking Statements

This news release includes forward-looking statements, 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 Coast's dividends to shareholders, economic performance in Canada and its sales expectations.

These forward-looking statements reflect current expectations of Coast's 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: sensitivity to general economic conditions; changes in consumer confidence in the economy; maintenance of profitability and management of changes to our business; competition; increases to interest rates; reliance on suppliers and their ability to supply product for sale on a timely basis; changes in consumer preferences; changes in the mix of product sales; 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; lack of long-term supplier agreements; reliance on key personnel; and foreign exchange rates as they relate to imported products.

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. The forward-looking statements reflect management's current beliefs and are based on information currently available to Coast. They speak only as of the date of this news release, and reflect current assumptions regarding future events and operating performance. Coast assumes no obligation to update or revise them to reflect new events or circumstances, other than as required by law.

Contact Information