Coast13 q1

COAST WHOLESALE APPLIANCES INC.
First Quarter 2013

Coast Wholesale Appliances Inc. (Coast) was established on January 1, 2011 with the conversion of Coast Wholesale
Appliances Income Fund to a publicly traded, monthly dividend paying corporation. Shares of Coast began trading on the
Toronto Stock Exchange under the symbol “CWA” on January 6, 2011.
Coast is a leading independent supplier of major household appliances and accessories. Founded in 1978, we originally
operated mainly as a wholesale supplier to developers and builders in Western Canada, later broadening our focus to include
the retail market. In January 2009, we expanded geographically into the Greater Toronto Area (GTA) of Ontario.
Today, we combine contract sales to developers and builders of multi-family and single-family housing with direct retail sales
at 15 stores across the four western provinces and one store in the GTA. At each Coast location, we offer our customers the
convenience of one-stop shopping for all of their major household appliance needs featuring more than 35 brands.
The exceptional stability our business has shown over the past 34 years is due in large part to the essential nature of the major
home appliances we sell. New product innovations and a focus on home décor and energy efficiency have also contributed to
our sales results.
Our business strategy has three elements. To create value for our shareholders, we are working to:
1. Build on our strong market position in Western Canada and explore growth opportunities in Western Canada and Ontario
as they arise;
2. Increase sales from our existing stores; and
3. Continue to enhance our profitability.
Nanaimo
1 store
Victoria
1 store
Vancouver
1 store
Burnaby
1 distribution warehouse
Coquitlam
1 store
Surry
1 store
Abbotsford
1 store
Kelowna
1 store
Calgary
2 stores
1 distribution
warehouse
Red Deer
1 store
Edmonton
2 stores
1 distribution
warehouse
Saskatoon
1 store Regina
1 store
Winnpeg
1 store
Toronto
1 store
1 distribution
warehouse

[ 1 ]
Performance Highlights
Letter to Shareholders: 02
Management’s Discussion and Analysis: 04
Unaudited Interim Condensed Financial Statements: 18
Notes to the Unaudited Interim Condensed Financial Statements : 22
Corporate Information: 25
(in thousands of dollars except percentages and per-share amounts)

2013 2012 2011
Q1 Q1 Q1
Sales 34,360 30,035 28,086
Gross profit 7,418 6,883 6,752
As a percentage of sales 21.6% 22.9% 24.0%

Profit (loss) 359 (4) (487)
Diluted net income (loss) per share 0.036 (0.000) (0.049)

EBITDA 1,070 616 (43)
EBITDA margin 3.1% 2.1% -0.2%

EBITDA per share 0.107 0.061 (0.004)
Dividends per share 0.075 0.105 0.070

[ 2 ]
We are happy to report that Coast made a very solid start to
2013. Our first quarter revenues exceeded our expectations,
as we had a stronger than anticipated flow of sales to single
and multi-family homebuilders move through to completion.
At the same time, we continued to drive up our gross
profit dollars. We also significantly improved our EBITDA
performance.
Sustaining healthy revenue growth
The first three months of 2013 represented our seventh
consecutive quarter of year-over-year revenue growth.
Overall sales for the seasonally slower winter period
improved by $4.3 million, or 14.4%, to $34.4 million. Our
builder sales for the quarter increased by a very robust
25.2% over 2012. In the retail segment, given the current
extremely cautious consumer spending climate, we were
pleased to maintain our sales at just 0.4% below the 2012
level. Our other revenues, which are generated by warranty
sales, freight and installation, sales of glass products and
commission sales, were also up, increasing by 2.1% over
last year.
As in the past three quarters, our revenues improved in all of
our geographic markets. Notably, we achieved double-digit
sales increases in both the Greater Toronto Area (GTA) of
Ontario and British Columbia.
With the higher revenues, our first quarter gross profit
increased to $7.4 million from $6.9 million in 2012, a
7.8% improvement. However, our gross margin percentage
continued to be eroded by ongoing competitive pressure and
the resulting price compression in both the retail and builder
segments of our business. As a result, our gross margin for
the quarter declined to 21.6% from 22.9% last year. Despite
the increase in business, we were able to keep our selling,
warehouse, facility, and general and administrative (SG&A)
expenses in line with last year by strictly controlling operating
costs. As a percentage of sales, SG&A expenses were
reduced to 18.5% from 20.9% in Q1 2012.
Our first quarter EBITDA of $1.1 million was up by $0.5
million, or a healthy 74%, from the $0.6 million we reported
in 2012, while our EBITDA margin improved to 3.1% from
2.1% last year. The increase in EBITDA was due mainly to
this year’s higher revenues and the resulting $0.5 million
gross profit gain. We recorded a net income of $0.4 million
for the period, compared to a loss of $4,000 in 2012.
Strategic measures to enhance
profitability
While keeping a tight rein on operating costs, we continued
to focus on improving our profitability by increasing sales
from our existing stores. As ever, keeping our showrooms
current in order to enhance Coast’s appeal to retail
customers is a top priority. During the quarter, we moved
forward with renovations to our Calgary South store
in Alberta and began upgrade work at our Saskatoon,
Saskatchewan location. We expect to complete both of
these improvement projects by mid-year.
We also continued to refine our product offering in order to
drive increased same-store sales. During the quarter, building
on our successful national roll-out of the KitchenAid®
brand last year, we proceeded with plans to expand our
range of Whirlpool® major appliances. We are increasing
the selection of Whirlpool products we market to retail
customers and making this popular mid-to-higher-end line
available to our builder customers.
We believe that having a wider range of Whirlpool
models will make Coast an even more attractive shopping
destination for retail customers, and particularly those
discerning consumers who seek a value-added purchase
experience. We are not looking to attract customers who
shop on price alone. Our customers choose Coast because
of our state-of-the-art designer showrooms and working
kitchens, our exceptional selection of mid-to-high-end
brands and models, our highly knowledgeable sales staff,
and our outstanding after-sales service.
As expected, our inventory levels increased during the first
quarter, due both to our higher sales volumes and our
Whirlpool expansion. At March 31, 2013, inventory stood at
$27.0 million, compared to $25.8 million at December 31,
2012. We continue to closely review and refine our product
offering in order to improve both our inventory turn rate and
our gross margins.
Dividends
During the first quarter, we declared monthly dividends of
$0.025 per share for each of January, February and March,
payable on or about the fifth day of the month following.
This dividend rate equates to $0.30 per share on an
annualized basis, representing a yield of approximately 10%
per annum at recent Coast share trading prices.
To our Shareholders

[ 3 ]
The Board of Directors closely monitors our dividend level on
a continuous basis.
Maintaining a cautious outlook
The following outlook discussion is qualified in its entirety
by the forward-looking statements proviso at the beginning
of the Management’s Discussion and Analysis (MD&A)
that follows this letter, and by the section on risks and
uncertainties at the end of our MD&A.
The outlook for Coast’s business in 2013 remains cautious.
In the builder segment, we expect that our revenues will
continue to grow as projects in our order backlog move into
the final stages of development, particularly in the multi-
family sector, but at a slower rate than in the first quarter of
the year. We anticipate that housing starts will soften slightly
in 2013 and that very competitive market conditions will
continue to compress unit prices and hence margins on our
builder sales for the foreseeable future. On the retail side,
we expect that market conditions and pricing will remain
similarly competitive through 2013 as consumers continue to
be extremely cautious about making major purchases.
We had an excellent start to the year from a sales
perspective, thanks to our exceptionally robust builder
business. Going into the second quarter, while we have a
very strong backlog of contract orders for future delivery
across all of our markets, we recognize that planned
residential development can be slowed by unfavourable
economic conditions. The outlook for the British Columbia
market is particularly cautious.
Over the balance of the year, we will continue to focus
on controlling costs, improving our margin performance,
reducing our inventory and increasing inventory turns. To this
end, we will be implementing upgrades to our inventory and
pricing management systems over the remainder of the year.
We remain confident in our ability to deliver solid returns
to investors as we continue to grow our business. Over the
short-term, we believe that the current level of dividends
will allow us to maintain the balance sheet strength we
need to manage through the current difficult economy. Over
the longer-term, we look forward to capitalizing on Coast’s
balanced business model and proven growth strategy in
order to increase both our geographic coverage and our
market share.
On behalf of Coast’s management and our Board of
Directors, we offer our appreciation to all of our partners
in success – our employees across Western Canada and in
Ontario, our suppliers and our customers – and our gratitude
to you, our shareholders for your continued support of our
business.
We look forward to reporting back to you again after the
end of the second quarter.
Sincerely,
Maurice E. Paquette
President and CEO, Director
Coast Wholesale Appliances Inc.
Stephen T. Bellringer
Chair of the Board of Directors
Coast Wholesale Appliances Inc.

[ 4 ]
MANAGEMENT’S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITIONS AND OPERATIONS
For the period ended March 31, 2013
This management’s discussion and analysis (MD&A) has been prepared by Coast Wholesale Appliances Inc. (Coast) as of
May 2, 2013. The MD&A should be read in conjunction with Coast’s unaudited interim condensed financial statements
and accompanying notes for the period ended March 31, 2013 and Coast’s audited financial statements for the year ended
December 31, 2012 (both available at www.sedar.com and www.coastwholesaleappliancesinc.com). The financial statements
have been prepared in accordance with International Financial Reporting Standards (IFRS) and are reported in Canadian
dollars.
This report presents our financial results for the period from January 1, 2013 to March 31, 2013, which represents the first
quarter of our 2013 fiscal year.
Forward-looking Statements
This report 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 our dividends to shareholders, the performance of the Canadian economy and
our sales expectations. Forward-looking statements are included in, but are not limited to, the sections entitled First Quarter
2013 Summary, Economic and Industry Factors, Working capital and liquidity, Total assets, Dividends to shareholders and
Outlook.
These forward-looking statements reflect our current expectations regarding future events and operating performance as
of the date of this report. 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 our mix of product sales; fluctuations in fuel and commodity pricing; 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 report are based upon what we believe 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 report and reflect current assumptions regarding future events and operating
performance. These assumptions include, without limitation: slow economic growth in 2013 in both Western Canada and the
Greater Toronto Area (GTA), our current markets; continued fluctuations in exchange rates with the Canadian dollar trading
near par with the US dollar; continued low interest rates; continuing relatively stable credit markets for our major builder
customers; weak consumer confidence due to the slow economic recovery; and a slight softening of total housing starts in
2013 compared to 2012. These forward-looking statements are made as of the date of this report and Coast assumes no
obligation to update or revise them to reflect new events or circumstances, other than as required by law.

[ 5 ]
First Quarter 2013 Summary
Financial results
• Sales of $34.4 million were up by 14.4% from the $30.0 million recorded in the first quarter of 2012.
• Sales in the builder segment of our business increased by 25.2% year-over-year, sales to retail customers were down by
0.4% and revenues from warranty sales, freight and installation, sales of glass products and commission sales improved
by 2.1%.
• Gross profit of $7.4 million was up by $0.5 million over 2012, while gross margin percentage was eroded by competitive
market conditions, decreasing to 21.6% from 22.9% in 2012.
• Selling, warehouse, facility, and general and administrative expenses of $6.3 million were equal to the 2012 level but were
reduced as a percentage of sales to 18.5% from 20.9% in 2012.
• EBITDA of $1.1 million was up by $0.5 million, or 74%, over 2012 and EBITDA margin increased to 3.1% from 2.1%
in 2012.
• Inventory rose by $1.2 million from the 2012 year-end due to higher sales volumes and the introduction of new products.
• Monthly dividends of $0.025 per share ($0.30 per annum) were paid during the quarter.
Operating highlights
• As part of our ongoing strategy to enhance profitability by increasing sales from our existing stores, we continued to
refresh our locations, proceeding with significant upgrade work at our Calgary South, Alberta store and beginning major
renovations at our Saskatoon, Saskatchewan store. These improvements are scheduled for completion by mid-2013.
• Effective March 27, 2013, Stephen T. Bellringer was appointed to Coast’s Board of Directors and assumed the role of
Chair.
Business environment
• The Canadian economy continued to exhibit only minimal growth.
• The profitability of both our retail and builder business was negatively impacted by highly competitive market conditions
and the resulting compression of pricing.
• Low interest rates persisted and credit markets remained relatively stable for our builder and developer customers,
allowing reasonable access to financing for new housing projects.
• Total housing starts in our markets remained at approximately the same levels recorded in 2012.
• Steady development activity in both the multi-family and single-family sectors allowed us to strengthen our backlog of
orders from builders and developers.
Economic and Industry Factors
In general, the economic and industry conditions impacting our business have not changed substantially from those discussed
in our 2012 Annual Report. Moderate to slow economic growth rates persisted in Canada and elsewhere, and we expect
that economic growth will remain sluggish through the balance of 2013 and into 2014. The potential for further economic
setbacks remains a concern, particularly in the United States and Europe, and the global business environment continues to
be uncertain. However, on a positive note, Canadian credit markets have remained relatively stable, allowing our builder and
developer customers to finance both their current and future projects.
Our builder business in the first quarter exceeded our expectations, improving significantly over the first three months of 2012
as sales continued to flow from the contract orders logged over the past two years. However, as in the previous four quarters,
our gross margins on builder sales were compressed by more competitive pricing as a result of the fiercely competitive business
climate. We expect that total housing starts in Canada this year will decrease slightly from the level recorded in 2012, with a
continued shift from single-family to multi-family starts, and we are cautious in our outlook for our builder business over the
balance of 2013.
In the retail segment, while we maintained our first quarter sales at just slightly below the prior year level, our margins were
reduced by more competitive pricing. We anticipate that the retail pricing environment will remain very competitive through
2013 as consumers continue to restrain their spending.

[ 6 ]
COAST WHOLESALE APPLIANCES INC. Management’s Discussion and Analysis
Seasonality
Coast establishes an annual dividend rate and the monthly dividends paid to shareholders are averaged through the year. This
payment pattern may not correlate to our net income, on a monthly basis, as sales of our products are subject to seasonal
fluctuations that follow our customers’ building activities and retail purchases. Historically, the first quarter has been our
slowest, accounting for approximately 21% to 23% of annual revenues. Sales are generally evenly distributed in the balance
of the year, with a somewhat softer fourth quarter in comparison to the second and third quarters. In 2012, the first quarter
accounted for 21% of annual sales, while the second, third and fourth quarters respectively represented 26%, 27% and 26%.
Selected Financial Information
The following selected financial information has been derived from Coast’s unaudited interim condensed financial statements for
the three-month period ended March 31, 2013. It should be read in conjunction with these statements and their accompanying
notes (available at www.sedar.com or www.coastwholesaleappliancesinc.com). The 2013 unaudited interim condensed financial
statements have been prepared in accordance with IFRS in Canadian dollars, as were our 2012 financial statements.
Operating Results

3 months ended 3 months ended 3 month ended
March 31, 2013 March 31, 2012 March 31, 2011

Sales 34,360 30,035 28,086
Cost of sales 26,942 23,152 21,334
Gross profit 7,418 6,883 6,752
Expenses (1)
6,348 6,267 5,990
EBITDA before other costs (2)
1,070 616 762
Other costs - - 805
EBITDA (2)
1,070 616 (43)
As a percentage of sales 3.1% 2.1% -0.2%

Interest 129 154 160
Deferred income taxes (recovery) 66 (1) (175)
Current income taxes 24 - -
Depreciation 492 467 459
Profit (loss) and comprehensive income ( loss) 359 (4) (487)
As a percentage of sales 1.0% 0.0% -1.7%

Basic and diluted net income (loss) per share 0.036 (0.000) (0.049)
Dividends per share 0.075 0.105 0.070
EBITDA per share (2)
0.107 0.061 (0.004)

Total assets 98,516 94,812 126,941
Total long-term liabilities 3,600 14,237 15,169
(1) Expenses include selling, general and administrative, facilities and warehousing expenses.
(2) See definition of EBITDA under Non-IFRS Measures.

[ 7 ]
Sales
Sales revenues of $34.4 million for the three months ended March 31, 2013 were up by $4.3 million, or 14.4%, from the
$30.0 million we reported for the first quarter of 2012. The sales growth was mainly due to the strength of our builder
business. As in the fourth quarter of 2012, we saw an increased flow of sales from our backlog of orders for multi-family and
single-family housing projects as these projects moved to the final stages of development. First quarter sales to developers and
builders improved by 25.2% year-over-year, while retail sales were maintained at near the 2012 level, dipping by a modest
0.4%. Our other revenues, which include warranty sales, freight and installation, sales of glass products and commission sales,
increased by 2.1% over 2012.
Sales in all of our geographic areas improved significantly in the first quarter over 2012, with particularly strong growth in the
GTA and British Columbia markets, and a healthy revenue gain in Alberta.
Cost of sales and gross profit
Cost of sales for the three months ended March 31, 2013 was $26.9 million, or 78.4% of sales. This resulted in a gross profit
of $7.4 million, or 21.6% of sales. By comparison, in the first quarter of 2012, cost of sales was $23.2 million, or 77.1% of
sales, providing a gross profit of $6.9 million, or 22.9% of sales. The $0.5 million, or 7.8%, increase in gross profit dollars was
driven mainly by our builder sales growth. The 1.3% decrease in gross margin percentage was due to the very competitive
business environment that persisted in all of our markets.
Expenses
Selling, warehouse, facility, and general and administrative expenses (SG&A expenses) for the three months ended March 31,
2013 were maintained at the $6.3 million recorded in Q1 2012, despite this year’s higher revenues, as we continued to benefit
from rigorous operating cost control. With the increase in revenues, SG&A expenses as a percentage of sales decreased to
18.5% from 20.9% in 2012.
First quarter selling costs were down slightly from last year, with higher wage and commission costs as a result of the improved
sales revenue and increased marketing costs more than offset by lower store refurbishment costs. Facility costs were up
modestly, primarily as a result of increased property taxes and common area costs related to our leased facilities. Administrative
costs were up by $0.1 million, due to increased wages, and higher benefit and legal expenses. Warehousing costs were down
slightly from the 2012 level.
EBITDA
EBITDA and EBITDA margin are not recognized measures under IFRS and do not have standardized meanings prescribed by
IFRS (see Non-IFRS Measures).
First quarter EBITDA of $1.1 million was up by $0.5 million from the $0.6 million we reported in 2012. Our EBITDA margin for
the period improved to 3.1% from 2.1% in the prior year. The increases in EBITDA and EBITDA margin were mainly due to the
higher revenues and gross profit recorded in 2013.
Table 1: Reconciliation of net income (loss) to EBITDA
(in thousands of dollars except percentages)
3 months ended 3 months ended 3 months ended
March 31, 2013 March 31, 2012 March 31, 2011
Profit (loss) 359 (4) (487)

Interest 129 154 160
Deferred income taxes 66 (1) (175)
Current income taxes 24 - -
Depreciation 492 467 459

EBITDA (1)
1,070 616 (43)
EBITDA margin (1)
3.1% 2.1% -0.2%
(1) See definition of EBITDA and EBITDA margin under Non-IFRS Measures.

[ 8 ]
Interest
First quarter interest expense of $129,000 was down slightly year-over-year, due to the lower borrowing facility in 2013.
Depreciation
Depreciation for the three months ended March 31, 2013 was $0.5 million, up slightly from the first quarter of 2012.
Income taxes
Income taxes for the first quarter of 2013 were $90,000, comprising $24,000 in current taxes and $66,000 in deferred taxes.
This compares to a deferred income tax recovery of $1,400 for the first quarter of 2012. There were no current income taxes
in 2012.
Profit (loss)
In the first quarter of 2013, we recorded a profit of $359K compared to a loss of $4K for the same period in 2012. The
change was due mainly to our higher revenues and gross profit, and continued tight expense control in the first quarter in
2013.
Summary of Quarterly Results
See the section on seasonality above for a discussion of the impact of seasonality on our quarterly sales levels.
Table 2: Summary of quarterly results
2013 2012 2011
Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1
Sales 34,360 38,533 38,898 37,729 30,035 35,281 36,001 34,225 28,086
Gross profit 7,418 9,300 8,804 8,505 6,884 8,667 8,840 8,349 6,752
Gross margin percentage 21.6% 24.1% 22.6% 22.5% 22.9% 24.6% 24.6% 24.4% 24.0%
Profit (loss) 359 1,701 1,374 1,124 (4) (28,907) 1,440 1,081 (487)
Diluted net income (loss)
per share (1)
0.036 0.169 0.137 0.112 (0.000) (2.881) 0.144 0.108 (0.049)
Dividends per share 0.075 0.070 0.105 0.105 0.105 0.105 0.105 0.105 0.070
(1) Diluted and non-diluted net income (loss) per share are equivalent

[ 9 ]
Liquidity and Capital Resources
Cash flow from operating activities
Table 3: Cash flow and movements in working capital (source (use) of cash)
(in thousands of dollars)
3 months ended 3 months ended
March 31, 2013 March 31, 2012
Cash flow from operating activities 1,086 647
Movements in working capital
Trade and other receivables 864 2,998
Inventory (1,172) 588
Prepaid expenses (103) (160)
Trade and other payables (651) (2,333)
Customer deposits 843 908
(220) 2,001
Cash generated from operations 866 2,648
Interest paid (129) (154)
Income taxes paid (570) (854)
Net cash generated from operations 167 1,640
Net cash flow from operations for the three months ended March 31, 2013 was $0.2 million, compared to $1.6 million for the
first quarter of 2012. Net income and resulting cash flow before movements in working capital of $1.1 million was up by $0.5
from last year. The movement in working capital changed to a $0.2 million use of cash in 2013 from a $2.0 million source of
cash in 2012.
The most significant changes year-over-year were a $1.2 million increase in inventory, compared to a $0.6 million decrease in
2012; a $0.9 million decrease in trade and other receivables, compared to a $3.0 million decrease in 2012; and a $0.7 million
decrease in our trade and other payables, compared to a $2.3 million decrease in 2012.
Capital expenditures
Table 4: Capital expenditures
3months ended 3months ended
March 31, 2013 March 31, 2012
Total capital 114 257
Less proceeds on disposal of assets - -
114 257
Capital expenditures of $114,000 for the first quarter of 2013 related mainly to furniture, fixtures and leasehold
improvements. This was down from $257,000 for the same period of 2012. We expect that annual capital expenditures
for 2013 will total approximately $1.0 million, allocated evenly to IT upgrades and store refurbishments.

[ 10 ]
Dividends to shareholders
Table 5: Dividends to shareholders
Record date Payment date Per share $ Amount $
January 25, 2013 February 5, 2013 $0.025 $250,854
February 22, 2013 March 5, 2013 $0.025 250,854
March 22, 2013 April 5, 2013 $0.025 250,854
$0.75 $752,562
The current dividend rate equates to $0.30 per share on an annualized basis.
Coast’s dividend policy is subject to the discretion of our Board of Directors, which takes into account our financial
performance, as well as our current and anticipated business needs, at the time a dividend is being considered. The amount
and timing of any future dividends may vary depending on, among other things, Coast’s earnings and financial requirements
and the satisfaction of solvency tests imposed by the Canada Business Corporations Act for the declaration of dividends.
Contractual obligations, commitments and financing
Table 6: Payments due by period as at March 31, 2013
Operating leases
Less than one year 3,823
One to three years 7,221
Four to five years 5,468
After five years 2,933
19,446
In 2012, we renegotiated our financing arrangement with our existing lender, creating a new revolving loan and using funds
from the new facility to repay both our existing revolving loan and our term debt. In the first quarter of 2013, we amended this
financing arrangement and now have available an amount of up to $23.0 million with a three-year term maturing on June 26,
2015. The revolving loan can be used for working capital requirements, capital expenditures and general corporate purposes. The
new facility bears interest at the lender’s prime rate plus 0.50% (amounting to 3.5% at March 31, 2013) when borrowed directly,
or at the banker’s acceptance rate plus 1.7% when a banker’s acceptance facility is utilized. Payments are monthly for interest only.
A standby fee of 0.35% is charged on any unutilized portion of the loan facility. We believe that this asset-backed loan structure is
better suited to our business and will give us greater flexibility in our ongoing borrowing requirements.
The amount made available under the loan facility is limited to the sum of 85% of the book value of trade accounts receivable and
the lower of 65% of the book value, or 85% of the net orderly liquidation value of inventories. Certain identified trade accounts
receivable and inventories are excluded from the calculation of the amount available under the loan facility. As well, certain
trade accounts payable accounts, and a reserve for customer deposits reduce the amount available under the facility. The bank
indebtedness is secured by a general security agreement covering all of our assets.
We are required to maintain a fixed-charge coverage ratio of not less than one-to-one. The ratio is calculated as the ratio of
EBITDA plus operating lease payments, less cash taxes, less dividends paid, less capital expenditures, divided by cash interest paid,
plus term loan repayments and operating lease payments. All amounts are based on a rolling 12-month calculation. Annual capital
expenditures are limited to $1.5 million. At March 31, 2013, Coast was in compliance with the covenants of the loan.
Operating leases are in place for all premises. We paid total basic rent of $1.0 million for the three-month period ended March 31,
2013, compared to $0.9 million for the same period in 2012.

[ 11 ]
Working capital and liquidity
Table 7: Working capital and liquidity
Mar 31, 2013 Dec 31, 2012
Working capital 3,562 3,511
Total assets 98,516 98,431
Total liabilities 41,252 40,773
Total long-term liabilities 3,600 3,626
In addition to working capital, we currently have available our $23.0 million revolving operating loan, of which $13.7 million
was outstanding at March 31, 2013 and included in working capital.
Our principal sources of liquidity are cash provided by operations and the revolving operating loan. In addition, we review our
cash flows on an ongoing basis and can adjust our annual dividend rate accordingly. At this time, we believe that such sources
of liquidity will be sufficient to fund future working capital requirements, capital expenditures, dividends and our planned
growth.
Total assets
Total assets were $98.5 million at March 31, 2013, compared to $98.4 million at December 31, 2012.
Inventory at March 31, 2013 was $27.0 million, compared to $25.8 million at December 31, 2012. We continue to closely
review and refine our product offering in order to improve both our inventory turn rate and our gross margin.
Table 8: Accounts receivable
Mar 31, 2013 Dec 31, 2012
Accounts receivable - trade 11,014 9,776
Supplier rebates and other 2,435 4,537
13,449 14,313
Our total accounts receivable of $13.4 million at March 31, 2013 was down by $0.9 million from the $14.3 million we
recorded at December 31, 2012. Trade accounts receivable were up by $1.2 million, as our sales to builders grew significantly
through the first quarter. Supplier rebates and other receivables were reduced by $2.1 million, as we collected the majority of
our 2012 year-end supplier charge-backs and rebates during the first quarter of 2013.
Total liabilities
Total liabilities at March 31, 2013 were $41.3 million, compared to $40.8 million at December 31, 2012. The difference was
mainly due to increased customer deposits of $0.8 million and no income taxes payable at March 31, 2013.
Trade and other payables at March 31, 2013 were $15.5 million, compared to $16.2 million at December 31, 2012. Customer
deposits at March 31, 2013 were $6.2 million, up by $0.8 million from $5.4 million at December 31, 2012, reflecting the
growth of our business during the first quarter of 2013.
Total deferred warranty revenue (combined current and non-current) at March 31, 2013 was $4.3 million, equivalent to the
balance at December 31, 2012.

[ 12 ]
Long-term incentive plan
Under the terms of our long-term incentive plan (LTIP), 10% to 20% of net income in excess of an established threshold is to
be paid to the plan trustee to purchase shares of Coast for the participants. The liability is to be accrued in the period when
the net income exceeds the thresholds established for the LTIP, with the related cost amortized to expenses over the three-year
vesting period of the applicable participant awards. Benefits forfeited under the plan will be returned to Coast.
At March 31, 2013, the prepaid compensation balance was nil. No amounts have been accrued under the LTIP to date this
year and there are currently no funds held by the LTIP.
Share capital
Table 9: Share capital
Shares Amount
$
Balance December 31, 2012 and March 31, 2013 10,034,166 46,257
At March 31, 2013, Coast had 10,034,166 common shares issued and outstanding, which was unchanged as of May 2, 2013,
the date of this report, for an aggregate amount of $46.3 million.
Financial Instruments
Financial instruments of Coast consist of cash and cash equivalents, accounts receivable, accounts payable and accrued
liabilities, operating and term loans, customer deposits and dividends payable. These financial instruments are classified into
one of the following categories: fair value through profit or loss, held-to-maturity investments, loans and receivables, available-
for-sale financial assets, and other financial liabilities. The classification determines the accounting treatment of the instrument.
The classification is determined by Coast when the financial instrument is initially recorded, based on the underlying purpose
of the instrument. These financial instruments are subject to credit risk, currency risk and concentration risk (a full description
can be found in Note 21 to our audited financial statements for the year ended December 31, 2012).
Table 10: Classification and measurement of financial assets and financial liabilities
Financial Instrument Category Measurement
Cash Loans and receivables Amortized cost
Trade and other receivable Loans and receivables Amortized cost
Bank Indebtedness Other financial liabilities Amortized cost
Term loans Other financial liabilities Amortized cost
Trade and other payable Other financial liabilities Amortized cost
Customer deposits Other financial liabilities Amortized cost
Dividends payable Other financial liabilities Amortized cost
Cheques issued in excess of funds on deposit Other financial liabilities Amortized cost
Off Balance Sheet Arrangements
Coast has not entered into any off balance sheet arrangements.

[ 13 ]
Critical Accounting Policies and Estimates
We have prepared our unaudited interim condensed financial statements in accordance with IFRS in Canadian dollars. IFRS
requires us to make estimates and judgments that affect the reported amount of assets and liabilities, and disclosure of
contingencies at the date of the unaudited interim condensed financial statements and the reported amount of revenues and
expenses during the period. It is reasonably possible that circumstances may arise which cause actual results to differ from our
estimates. Areas requiring significant management estimates include valuation of goodwill, intangible assets and leaseholds
and equipment, allowance for doubtful accounts, inventory valuation, amounts for accrued liabilities, deferred warranty
revenue, contingencies and accounting for income taxes. Actual results could differ from these estimates.
The significant accounting policies of Coast are described in Note 2 of our financial statements for the year ended December
31, 2012. The policies that we believe are the most critical in aiding a full understanding and evaluation of our reported
financial results are summarized below.
Revenue recognition
Coast recognizes revenue from the sale of products when a sales arrangement is entered into, the sales price is fixed and
determinable, the products are shipped and collection is reasonably assured.
Cash received in advance of the product being shipped is recorded as customer deposits.
Extended warranties are provided on certain products pursuant to warranty contracts. These warranty contracts are in addition
to those provided by the manufacturers of the product and generally extend the life of the warranty to a five-year period. The
revenue received from the warranty contracts is initially recorded as deferred warranty revenue and is amortized to income
over the life of the warranty contract. The costs associated with delivering the related warranty services are expensed as they
are incurred during the life of the contracts. The expenses incurred to sell the warranty contracts are initially recorded as other
assets and are amortized to income over the life of the warranty contracts.
Valuation of goodwill and impairment
Goodwill is tested for impairment at least annually or whenever events or changes in circumstances indicate that the carrying
amount may be impaired. Coast compares goodwill to the fair value of the reporting unit to which the goodwill relates. Any
impairment is charged to operations in the amount by which the carrying amount of the assets exceeds the fair value of the
goodwill.
Goodwill has been allocated for impairment testing purposes to two cash-generating units. The first, Western Canada,
represents the original market area for Coast. The second, Eastern Canada, represents the business unit related to our 2009
acquisition in the Greater Toronto Area and additions to that business unit in Eastern Canada.
The recoverable amount of the two cash-generating units is determined by a value in use calculation, which uses cash flow
projections based on the current year’s financial budget, forecasts for the next four years and strategic plans for the business.
Beyond the five-year forecast period, a growth rate is used to predict the long-term growth of the business. The process of
determining these fair values requires us to make estimates and assumptions, including, but not limited to, projected future
sales, earnings and capital investment, discount rates and terminal growth rates.
Goodwill was evaluated at December 31, 2012. No adjustments for impairment were required.
Table 11: Goodwill
Mar 31, 2013 Dec 31, 2012
$ $
Western Canada 38,182 38,182
Eastern Canada 2,211 2,211
40,393 40,393
Valuation of intangible assets, leaseholds and equipment
We review the valuation of our intangible assets, leaseholds and equipment for impairment whenever events or changes in
circumstances indicate that the carrying amount of an asset may not be recoverable from the future undiscounted cash flows
from the asset’s expected use and eventual disposition. If such assets are considered to be impaired, the impairment to be
recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets
designated for disposal are valued at the lower of the carrying amount and the fair value, less costs to sell.
Our long-lived assets and certain identified recorded intangibles were evaluated as at December 31, 2012. No adjustments for
impairment were required.

[ 14 ]
Inventory valuation
Inventory is valued at the lower of cost and net realizable value using the first-in, first-out method. Coast assesses net
realizable value of inventory at each reporting period based on sales patterns of inventory, expected selling prices and the level
of inventory on hand. Incentives received from suppliers and any provisions are accounted for as a reduction in the related
inventory value and cost of sales.
Income taxes
Coast follows the asset and liability method of accounting for income taxes whereby future tax assets and liabilities are
recognized for differences between the bases of assets and liabilities used for financial statement and income tax purposes.
Future income taxes will be determined according to these differences at the tax rate expected to be in place when the
differences are expected to be reversed.
Coast currently has an unused tax shield of approximately $39 million. The majority of this tax shield arose in the acquisition
of the business in June 2005 and can be utilized to reduce Coast’s taxable income at the rate of approximately $3.0 million to
$4.0 million per year going forward.
Related-Party Transactions
Coast leases six store locations from a company affiliated with CWAL Investments Ltd., a significant shareholder of the
company. For the three-month period ended March 31, 2013, our lease payments to related parties totalled $0.3 million.
Disclosure controls and procedures and internal control over financial reporting
Disclosure controls and procedures
Disclosure controls and procedures are processes designed to provide reasonable assurance that information required to be
disclosed by Coast in annual, interim or other filings is collected and reported to Coast’s management in a timely manner that
facilitates the required reporting. Due to the inherent limitations of control systems, an evaluation can only provide reasonable
assurance over the effectiveness of the controls. Coast’s Chief Executive Officer (CEO) and our Chief Financial Officer (CFO)
designed and evaluated, or had these functions completed under their direction, the effectiveness and operation of our
disclosure controls and procedures. Based on that evaluation, the CEO and the CFO concluded that the design and operation
of these disclosure controls and procedures were effective as at March 31, 2013.
Internal control over financial reporting
Internal control over financial reporting encompasses controls and processes designed to provide reasonable assurance
regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance
with IFRS. As the management of Coast, we are responsible for establishing and maintaining these controls. Under the
supervision of and with the participation of the CEO and the CFO, management carries out, on an ongoing basis, an
assessment of the design of these internal controls. This assessment uses the criteria set forth by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). It includes a risk evaluation of internal controls and documentation,
and testing of the key processes and controls. Due to the inherent limitations in any control system, an evaluation can only
provide reasonable assurance over the effectiveness of the controls, and internal controls are not expected to prevent and
detect all misstatements due to error or fraud. Based on our ongoing assessment, the CEO and the CFO have concluded that
Coast’s internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of financial
reporting and the preparation of unaudited interim condensed financial statements for external purposes as at March 31,
2013.
There were no changes in internal control over financial reporting during the quarter ended March 31, 2013 that have
materially affected, or are reasonably likely to materially affect, Coast’s internal control over financial reporting.

[ 15 ]
Outlook
The following discussion is qualified in its entirety by the Forward-looking Statements proviso at the beginning of this MD&A
and by the section entitled Risks and Uncertainties that follows this Outlook section.
While our first quarter sales results exceeded our expectations, a cautious outlook persists for our business. We anticipate that
economic growth in our western Canadian and Greater Toronto Area (“GTA”) markets will remain sluggish through 2013. The
current growth rate of the US economy and the ongoing debt and fiscal problems in the European economies continue to put
the Canadian economy at risk. Any significant negative events in these regions would have a considerable negative impact on
the Canadian economy. In light of the ongoing uncertainty that pervades the Canadian economy, we are continuing to focus
on strict cost control and enhancing our margins.
In the builder segment of our business, we expect that our revenues will continue to grow through 2013 as projects in our
order backlog move into the final stages of development, particularly in the multi-family sector. However, we expect that
the rate of growth will slow from the 25.2% year-over-year sales increase achieved in the first quarter of 2013. While we
anticipate a slight softening of housing starts in 2013, we do not anticipate that total housing starts for the year will be
significantly different from 2012 levels. We expect competitive market conditions will continue to compress margins on our
builder sales for the foreseeable future.
In the retail segment, given the difficult business climate, we were pleased to maintain our first quarter comparable store
sales at just 0.4% below the 2012 level. With the addition of several upscale lines over the last few years, we have expanded
Coast’s appeal to a broader range of customers seeking a value-added purchase experience . However, Canadian consumers
remain uncertain about the economy and we anticipate that our customers will continue to be careful about making major
purchases. Accordingly, we expect that the current very competitive retail pricing environment will persist through the end of
2013, continuing to put downward pressure on our sales and margins.
Our sales performance in the first three months of the year was particularly strong in the GTA and British Columbia markets,
with very healthy revenue growth in Alberta as well. Based on our current order backlogs, we expect that our revenue growth
over the balance of 2013 will be concentrated in these regions, but with a softening in the BC market.
Building on our success with our national roll-out of the KitchenAid brand in 2012, we are now in the process of significantly
expanding our current retail offering of Whirlpool®
major appliances and making this popular mid-to-higher-end product
line available to our builder customers. We expect that the broadening of our Whirlpool offering will enhance Coast’s appeal
to discerning retail customers who seek a value-added purchase experience characterized by the highly knowledgeable
sales staff, designer showrooms, wide selection of mid-to-high-end brands and models, and exceptional after-sales service
that distinguish Coast from other major home appliance retailers. We also anticipate that the new line will help to generate
significant incremental revenue gains in our builder business.
At the same time, we are continuing to review our product offerings with a view to increasing our gross margins, improving
inventory turns and reducing inventory levels. To date, we have focussed on trimming the number of items we stock in our
warehouses and eliminating marginal products. In the second half of this year, we will be implementing upgrades to our
inventory and pricing management systems, which should be up and running by year-end. In addition to helping us better
manage our margins and increase inventory turns, these systems will enable us to monitor how pricing can be used to create
more effective marketing programs, primarily in the retail segment of our business. Finally, our ongoing focus on the clearance
of eliminated, damaged and discontinued products will help to decrease inventory levels across our store network.
We also continue to refresh our existing stores as part of our ongoing strategy to enhance profitability by increasing sales,
particularly to retail customers. Improvements at our Calgary South store in Alberta proceeded through the first quarter and
are expected to be completed by mid-2013. In Saskatoon, Saskatchewan, a significant upgrade to our store’s retail showroom
began in the first quarter, with completion also targeted for the middle of the year. The store upgrades we have undertaken
over the past two years have been extremely well received by our customers, generating increased traffic by enhancing our
stores’ appeal as shopping destinations for retail buyers.
During the first quarter of the year, we successfully concluded our search for a new director. Stephen T. Bellringer, MBA, LL.D
(Hon) was appointed as a member and Chair of our Board of Directors, effective March 27, 2013. Mr. Bellringer took over the
leadership of Coast’s board from director Donald J.A. Smith, CA, MBA who assumed the role on an interim basis at the end of
November 2012. Mr. Smith remains as a director.
Going forward, we believe that our current credit facilities and ongoing cash flow from operations will be sufficient to allow us
to meet ongoing requirements for capital expenditures, including investments in working capital. However, Coast’s needs may
change. In such an event, our ability to satisfy our obligations will be dependent upon future financial performance, which in
turn will be subject to financial, tax, business and other factors, including elements beyond our control.

[ 16 ]
Risks and Uncertainties
Coast is subject to a number of risks in addition to the normal business risks associated with supply companies operating
within the major home appliances market in Canada. Demand for the products we sell is particularly sensitive to the health of
the economy in Canada as a whole, and especially in our western Canadian and GTA marketplaces. A number of factors could
have a material effect on Coast’s financial performance. These include but are not limited to the following:
• The continuing fragile nature of the current Canadian and global economic recovery. Any significant setbacks could
negatively impact our sales to both retail customers, who may defer or cancel purchase plans, and builder customers, who
may defer or cancel projects.
• Slowing of housing starts, either single-family or multi-family, which could negatively impact our builder sales.
• The impact of current economic conditions on the credit worthiness of our builder customers, and their ability to meet
their obligations to us on a timely basis. Slower collection of our trade receivables could result in bad debts in excess of
our historical patterns.
• Increases in interest rates, which would increase Coast’s and our customers’ costs, and the resultant impact on the
availability of credit to both builders and purchasers of homes, which may impact the housing market and may reduce
new home construction and renovation work.
• Fluctuations in fuel prices, which may drive up inbound and outbound freight costs, as well as other related costs. Higher
fuel prices can have a dramatic and rapid impact on our gross margin from freight revenue if our rates are not adequately
adjusted.
• Any significant change in competition from one or more competitors, as well as competition directly from suppliers, which
may impact our sales results and margins.
• Fluctuations in the Canadian / US dollar exchange rate, which may impact product costs from our major suppliers, as well
as our gross margins, if we are unable to react with appropriate price adjustments.
• Changes to our product distribution processes, which may impact our ability to both receive and deliver our products on
a timely basis. These processes are currently contracted to outside transportation suppliers and alternate suppliers are
available.
• Changes in labour costs, labour relations or key personnel, which may impact our overall cost structure.
• Customer service demands on our extended warranty programs. These programs are managed in-house. Increased
demand may cause costs to increase beyond historical patterns, resulting in a degradation of gross margin from this
component of our business.
• Future changes in tax legislation, which may impact certain aspects of our business model and our shareholders’
investment in Coast.
• Other factors as described under Forward-looking Statements.
Non-IFRS Measures
References to EBITDA are to earnings before interest, taxes, depreciation and amortization. The term EBITDA margin refers to
the percentage that EBITDA represents in relation to sales. Since many investors use EBITDA to compare issuers on the basis of
the ability to generate cash from operations, we believe that, in addition to net income or loss and statements of cash flow,
EBITDA is a useful supplemental measure.
EBITDA is not an earnings measure recognized by IFRS and does not have a standardized meaning prescribed by IFRS.
Therefore, EBITDA may not be comparable to similar measures presented by other entities. Readers are cautioned that
EBITDA should not be construed as an alternative to net income or loss determined in accordance with IFRS as an indicator of
Coast’s operating performance. Similarly, EBITDA should not be seen as an alternative to cash flows from operating, investing
and financing activities as measures of liquidity and cash flows. For a reconciliation of EBITDA to net income presented in
accordance with IFRS, see the section on EBITDA.
Additional Information
Additional information relating to Coast, including our Annual Information Form and other public filings, is available on SEDAR
at www.sedar.com and on Coast’s website at www.coastwholesaleappliancesinc.com.

[ 17 ]
Notice of No Auditor Review
These unaudited interim condensed financial statements have been prepared by and are the responsibility of the management
of Coast Wholesale Appliances Inc. An independent auditor has not audited nor performed a review of these unaudited interim
condensed financial statements.

[ 18 ]
Condensed statements of financial position
(Unaudited)
March 31, 2013 Dec 31, 2012
Notes CDN$ CDN$
Assets
Current assets
Trade and other receivables 13,449,075 14,313,035
Inventory 26,999,692 25,827,920
Prepaid expenses 426,960 323,972
Prepaid income taxes 148,535 -
Other assets 189,002 192,664
Total current assets 41,213,264 40,657,591
Non-current assets
Leaseholds and equipment 3,147,920 3,246,893
Intangible assets 10,165,089 10,474,086
Goodwill 40,392,968 40,392,968
Other assets 319,255 315,200
Deferred income taxes 3,278,000 3,344,000
Total non - current assets 57,303,232 57,773,147
Total assets 98,516,496 98,430,738

Liabilities
Current liabilities
Bank indebtedness 5 13,650,152 13,753,392
Cheques issued in excess of funds on deposit 569,094 17,961
Trade and other payables 15,515,537 16,166,924
Dividends payable 250,854 -
Customer deposits 6,203,149 5,360,511
Current portion of deferred warranty revenue 1,462,868 1,450,514
Income taxes payable - 397,523
Total current liabilites 37,651,654 37,146,825
Non-current liabilities
Deferred warranty revenue 2,861,304 2,884,789
Other liabilities 739,034 741,552
Total non-current liabilites 3,600,338 3,626,341
Total liabilities 41,251,992 40,773,166

Equity
Share capital 6 46,257,505 46,257,505
Retained earnings 11,006,999 11,400,067
Total equity 57,264,504 57,657,572
Total equity and liabilities 98,516,496 98,430,738
Approved on behalf of the Board of Directors, May 2, 2013

Stephen T. Bellringer Anthony Soda
Director Director
See accompanying notes to the unaudited interim condensed financial statements

[ 19 ]
Condensed statements of comprehensive income
(Unaudited)
March 31, 2013 March 31, 2012
Notes CDN$ CDN$
Sales 3 34,360,232 30,035,445
Cost of sales 3 26,942,228 23,151,835
Gross profit 7,418,004 6,883,610

Expenses
Selling 2,797,544 2,811,116
General and administrative 1,444,631 1,377,525
Facilities 1,580,178 1,536,581
Warehousing 525,388 541,919
6,347,741 6,267,141
Profit before depreciation, finance costs and income tax 1,070,263 616,469

Depreciation
Lease inducements (29,675) (29,675)
Leaseholds and equipment 212,566 188,084
Intangible assets 308,997 308,997
Finance costs 128,881 154,460
Profit (loss) before income tax 449,494 (5,397)

Current income tax expense 24,000 -
Deferred income tax expense (recovery) 66,000 (1,400)
Income tax expense (recovery) 90,000 (1,400)
Profit (loss) and comprehensive income (loss) 359,494 (3,997)

Basic and diluted net income (loss) per share 0.04 (0.00)
Basic and diluted weighted average number of shares outstanding 10,034,166 10,034,166


[ 20 ]
Condensed statements of changes in equity
(Unaudited)

Notes Share capital Retained earnings Total equity
CDN$ CDN$ CDN$
Balance, January 1, 2012 46,257,505 11,068,437 57,325,942
Profit (loss) and comprehensive income (loss) - (3,997) (3,997)
Dividends - (1,053,586) (1,053,586)
Balance, March 31, 2012 46,257,505 10,010,854 56,268,359
Profit and comprehensive income - 4,198,780 4,198,780
Dividends - (2,809,567) (2,809,567)
Balance, December 31, 2012 46,257,505 11,400,067 57,657,572
Profit and comprehensive income - 359,494 359,494
Dividends 7 - (752,562) (752,562)
Balance, March 31, 2013 46,257,505 11,006,999 57,264,504

[ 21 ]
Condensed statements of cash flows
(unaudited)
March 31, 2013 March 31, 2012
CDN$ CDN$

Cash flows from operating activities
Profit (loss ) 359,494 (3,997)
Items not involving cash
Depreciation 491,888 467,406
Income taxes 90,000 (1,400)
Finance costs 128,881 154,460
Deferred lease increment 27,156 34,251
Deferred warranty revenue (11,131) (15,278)
Other assets (393) 11,897
1,085,895 647,339
Movements in working capital
Trade and other receivables 863,960 2,998,011
Inventory (1,171,772) 588,154
Prepaid expenses (102,988) (160,627)
Trade and other payables (651,388) (2,332,759)
Customer deposits 842,638 908,311
(219,550) 2,001,090
866,345 2,648,429

Interest paid (128,881) (154,460)
Income taxes paid (570,058) (854,000)
Net cash generated from operating activities 167,406 1,639,969

Cash flows used in investing activities
Purchase of leaseholds and equipment (113,591) (257,294)
Proceeds from sale of leaseholds and equipment - -
Net cash used in investing activities (113,591) (257,294)

Cash flows (used in) from financing activities
Operating loan (103,240) 568,117
Term debt - (325,000)
Dividends paid (501,708) (1,053,586)
Net cash used in financing activities (604,948) (810,469)
Net increase (decrease) in cash (551,133) 572,206
Cheques issued in excess of funds on deposit, beginning of period (17,961) (800,113)
Cheques issued in excess of funds on deposit, end of period (569,094) (227,907)

[ 22 ]
Notes to the Interim Condensed Financial Statements
Three-month period ended March 31, 2013
(Unaudited)
1. General information
Coast Wholesale Appliances Inc. (“Coast”) is a federally incorporated company, incorporated on April 30, 2010.
Coast is 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 and the Greater Toronto Area of Ontario.
The head office is located at 8488 Main Street, Vancouver, BC and the registered office is 700 West Georgia Street, Vancouver,
BC.
2. Significant accounting policies
(a) Statement of compliance
These unaudited interim condensed financial statements have been prepared in accordance with International Financial
Reporting Standards (“IFRS”) and International Accounting Standard (“IAS”) 34, Interim Financial Reporting, as issued by the
International Accounting Standards Board (“IASB”).These unaudited interim condensed financial statements do not include
all of the information required of a full annual financial report and is intended to provide users with an update in relation to
events and transactions that are significant to an understanding of the changes in financial position and performance of the
Company since the end of the last annual reporting period. These financial statements should be read in conjunction with the
audited financial statements of the Company for the year ended December 31, 2012.
The accounting policies applied in preparation of these unaudited interim condensed financial statements are consistent with
those applied and disclosed in the Company’s audited financial statements for the year ended December 31, 2012, except for
the following;.
(i) Presentation of Financial Statements
The Company has applied the amendments to IAS 1, Presentation of Financial Statements. The amendments require that
elements of other comprehensive income that may subsequently be reclassified through profit and loss be differentiated from
those items that will not be reclassified. The adoption of this new standard had no impact.
(ii) Consolidated Financial Statements, Joint Arrangements and Disclosure of Interests in Other Entities
The Company has applied IFRS 10, Consolidated Financial Statements, IFRS 11, Joint Arrangements, IFRS 12, Disclosure of
Interests in Other Entities, and consequential revisions to IAS 27, Separate Financial Statements, and IAS 28, Investments in
Associates and Joint Ventures. The new standards provide revised guidance on the accounting treatment and associated
disclosure requirements for joint arrangements and associates, and a revised definition of ‘control’ for identifying entities
which are to be consolidated. The adoption of these new standards had no impact.
(iii) Fair Value Measurement
The Company has applied IFRS 13, Fair Value Measurement. The new standard provides guidance of fair value measurement
and disclosure requirements. The adoption of this new standard had no impact.
3. Future Accounting Standards
The Company has not applied the following new and revised IFRS that have been issued but are not yet effective:
IFRS 9, Financial Instruments (effective January 1, 2015) introduces new requirements for the classification and measurement
of financial assets and financial liabilities. This is not expected to have a significant effect on the Company’s accounting
policies or financial statements.
Amendments to IAS 32, Financial Instruments: Presentation (effective January 1, 2014) clarifies existing application issues
relating to offsetting requirements. This is not expected to have a significant effect on the Company’s accounting policies or
financial statements.

COAST WHOLESALE APPLIANCES INC. Notes to the Interm Condensed Financial Statements
[ 23 ]
4. Sales and cost of sales
March 31, 2013 March 31, 2012
$ $
Sales of appliances & accessories 32,198,350 27,917,147
Cost of sales 25,215,980 21,470,108
6,982,370 6,447,039

Other revenue 2,161,882 2,118,298
Other cost of sales 1,726,248 1,681,727
435,634 436,571
Total sales 34,360,232 30,035,445
Total cost of sales 26,942,228 23,151,835
Total gross profit 7,418,004 6,883,610
Other revenue includes warranty sales, freight and installation revenue, sales of glass products and commission income from
sales of appliances where Coast acts as a sales agent. Other cost of sales relate to the costs to provide these services.
5. Segment information
Coast operates in one industry segment, that is, the sale and distribution of major household appliances. Coast’s chief
operating decision-makers review Coast’s operating results on a company-wide basis and manage resource allocations and
operations as a single operating segment.
6. Borrowings
Mar 31, 2013 Dec 31, 2012
$ $
Bank indebtedness (a) 13,650,152 13,753,392
In 2012, Coast renegotiated its financing arrangement with its existing lender, creating a new revolving loan and used the
funds to repay the existing revolving loan and term debt. This loan was amended in the first quarter of 2013 and Coast
now has available an amount of up to $23,000,000 as a revolving loan (the “Bank Indebtedness”). The Bank Indebtedness
is available for a three-year term maturing on June 26, 2015 and can be used for working capital requirements, capital
expenditures and general corporate purposes. The Bank Indebtedness bears interest at the lender’s prime rate plus 0.50% (at
March 31, 2013, this rate was 3.5%), when borrowed directly, or at the banker’s acceptance rate plus 1.70% when a banker’s
acceptance facility is utilized. Payments are monthly for interest only. A standby fee of 0.35% is charged on any unutilized
portion of the Bank Indebtedness.
The amount made available under the Bank Indebtedness is limited to 85% of the book value of trade accounts receivable
and the lower of 65% of the book value or 85% of the net orderly liquidation value of inventories. Certain identified trade
accounts receivable and inventories are excluded from the calculation of the amount available under the facility. As well,
certain trade accounts payable accounts, and a reserve for customer deposits, reduce the amount available under the facility.
The Bank Indebtedness is secured by a general security agreement covering all assets of Coast.
Coast is required to maintain a fixed-charge coverage ratio of not less than one to one. The ratio is calculated as the ratio of
EBITDA plus operating lease payments, less cash taxes, less dividends paid, less capital expenditures divided by cash interest
paid, plus term loan repayments, plus operating lease payments. All amounts are calculated on a rolling 12-month basis.
Annual capital expenditures are limited to $1,500,000. At March 31, 2013, Coast was in compliance with the covenants of
the loan.
In the event that the Bank Indebtedness arrangement is terminated by Coast prior to the initial maturity date of June 26,
2015, there are certain prepayment fees. A prepayment fee of 1.5% of the total Bank Indebtedness availability applies in year
one, a fee of 1% in year two and a fee of 0.5% in year three.

[ 24 ]
COAST WHOLESALE APPLIANCES INC. Notes to the Financial Statements
7. Share capital
Shares Amount
$
Balance, March 31, 2013 and December 31, 2012 10,034,166 46,257,505
The authorized capital of Coast consists of an unlimited number of common shares, of which 10,034,166 are issued and
outstanding, and an unlimited number of preferred shares, none of which have been issued or are outstanding, as at March
31, 2013.
8. Dividends
Dividends of $0.025 per share were paid on a monthly basis in the first three months of 2013. Dividends for the three months
totaled $752,562 (2012 - $1,053,586). At March 31, 2013, dividends payable to shareholders totaled $250,854 (March 31,
2012 - $351,196).
9. Related-party transactions
Coast leases six of its store locations from a company owned by shareholders who own approximately 37% of the issued
and outstanding shares of Coast. The total rent paid to this related party for the three months ended March 31, 2013 was
$301,716 (2012 - $301,716). The amounts paid are based upon lease agreements between the two parties which were in
accordance with market rates at the time of the agreements.
10. Subsequent events
On April 17, 2013, Coast declared a dividend in the amount of $0.025 per share, payable to shareholders of record on April
26, 2013, to be paid May 6, 2013.

[ 25 ]]
BOARD OF DIRECTORS
Stephen T. Bellringer
Chair of the Board of Directors
Maurice E. Paquette
Jack G. Peck
Donald J.A. Smith, CA
Chair of Governance, Nominating and
Corporate matters Committee and
Chair of Compensation Committee
Anthony L. Soda, CA
Chair of Audit, Finance and Risk Committee
SHAREHOLDER INFORMATION
Investor Relations
604.301.3400
invest@coastappliances.com
www.coastwholesaleappliancesinc.com
Auditors
Deloitte & Touche LLP
Vancouver, BC
Shares Listed
Toronto Stock Exchange
Trading Symbol: CWA
Registrar and Transfer Agent
Computershare Investor Services Inc.
MANAGEMENT
Maurice E. Paquette
President and
Chief Executive Officer
Gordon Howie, CA
Chief Financial Officer
Stephen J. Raben
Senior Vice President,
Sales and Marketing
Michael Fiorini
Vice President,
Multi-Family Sales, Eastern Canada
Bradley S. Romo
Vice President,
Multi-Family Sales, British Columbia
Jamie Willoughby
Vice President,
Multi-Family Sales, Prairies
Head Office
8488 Main Street
Vancouver, BC
V5X 4W8

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