728303--3/31/2010--COAST_DISTRIBUTION_SYSTEM

related topics

{condition, economic, financial}

{property, intellectual, protect}

{customer, product, revenue}

{operation, international, foreign}

{tax, income, asset}

{product, liability, claim}

{product, market, service}

Our business and financial performance are affected by economic conditions that affect consumers. The current economic recession and credit crisis could have longer term adverse consequences for our business and future financial performance. Our business is seasonal and our financial performance can be adversely affected by unusual weather conditions. We rely heavily on bank borrowings in the operation of our business, which makes us more vulnerable to adverse changes in economic conditions. Risks of our reliance on sole sources of supply for certain of our products. Our financial results can be and sometimes have been adversely affected by changes in supply relationships in our markets. Our financial performance is subject to risks arising out of our proprietary products strategy. Our financial performance and cash flows can be adversely affected by currency fluctuations associated with our operations in Canada and our increased reliance on foreign product suppliers. We are subject to product liability risks. Risks of patent infringement claims. We face substantial competition that could lead to declines in net sales or reductions in our gross profits. Risk that our deferred tax asset may not be fully realized.

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728303--3/31/2010--COAST_DISTRIBUTION_SYSTEM_INC