Here's why:
* Compound sentences have two or more independent clauses joined by a coordinating conjunction (for, and, nor, but, or, yet, so).
* Independent clauses can stand alone as complete sentences.
In this case, there is only one clause: "Rain and heavy winds caused damage along the coast." This clause contains a subject ("rain and heavy winds") and a verb ("caused"). It expresses a complete thought and can stand alone.
Therefore, this sentence is a simple sentence.