Digital Sales Growth Drives Courier Results
Digital Sales Growth Drives Courier Results
Strong Gains in Customized Textbooks, Religious Sales
Business Wire
NORTH CHELMSFORD, Mass. -- November 20, 2012
Courier Corporation (Nasdaq: CRRC), one of America’s leading innovators in
book manufacturing, publishing and content management, today announced
fourth-quarter and full-year results for its fiscal year ended September 29,
2012.
Courier’s 2012 fiscal year had 53 weeks, with the extra week included in the
fourth quarter. Fourth-quarter revenues in fiscal 2012 were $77.1 million, up
5% from $73.7 million in last year’s fourth quarter. Net income for the
quarter was $5.7 million or $.50 per diluted share, including restructuring
costs of $1.5 million or $.08 per diluted share primarily related to the
writedown of an unutilized one-color press. Excluding those costs,
fourth-quarter net income was $6.6 million or $.58 per diluted share. In
fiscal 2011, fourth-quarter net income was $6.4 million or $.53 per diluted
share including restructuring costs, and $6.5 million or $.54 per diluted
share excluding those costs.
For fiscal 2012, Courier sales were $261.3 million, up slightly from $259.4
million in fiscal 2011. Net income was $9.2 million or $.77 per diluted share,
including restructuring costs of $3.3 million or $.17 per diluted share as
well as a first-quarter pretax gain of $0.6 million from the sale of certain
non-operating assets. Excluding those items, net income for fiscal 2012 would
have been $10.9 million or $.91 per diluted share. In fiscal 2011, Courier’s
net income was $134,000 or $.01 per diluted share including restructuring
costs, a bad-debt provision related to Borders Group Inc. and an impairment
charge related to Research & Education Association in the wake of the Borders
bankruptcy. Excluding those charges, net income for fiscal 2011 would have
been $10.7 million or $.89 per diluted share. Details of the restructuring
costs, impairment charges and other items for both years can be found in the
tables at the end of this release.
“After another challenging year in a sluggish economy, we were pleased to have
a strong finish,” said Courier Chairman and Chief Executive Officer James F.
Conway III. “We were especially pleased to reap the growing benefits of our
steady investments in four-color digital inkjet technology, innovative content
management solutions for the education and trade markets, and global
distribution capabilities on behalf of our largest religious customer.
“It was a year of strong growth at Courier Digital Solutions, where sales
increased 48% in response to escalating demand for college textbooks
customized to individual course requirements and schedules. But it was also a
year of growth in trade book sales as publishers increasingly utilized digital
printing in combination with offset to capture the full life-cycle potential
of every title. Separate from this trend, we also saw an increase in
four-color offset sales from new and existing customers.
“Our publishing segment continues to work its way through the difficult
economy and the channel challenges of the post-Borders retail environment.
However, by continuing to take out costs we were able to trim the segment’s
losses for both the quarter and the year as a whole. Meanwhile, all three of
our publishing businesses strengthened their own digital offerings. We head
into the holiday season with more than 3,000 titles available in e-book form
on all the major platforms.
“Throughout the year, we continued to distinguish ourselves competitively by
our strong customer focus, efficient workflow and superior product quality.
Equally important, we did so while maintaining the robust cash flow we have
enjoyed for the last several years. As a result, even after a $10-million
stock buyback, $10 million in capital expenditures and our customary $10
million in dividends paid, we were able to reduce our debt by $6 million from
a year ago. I am pleased to report that once again, Courier’s Board of
Directors has declared a dividend of $.21 per share, the same as last quarter.
The Board has also authorized another $10-million stock repurchase program and
reaffirmed its commitment to the dividend based on its confidence in the
company’s balance sheet, cash flow and business prospects.”
Book manufacturing: strong growth in religious and trade markets
Courier’s book manufacturing segment had fourth-quarter sales of $69.2
million, up 4% from $66.6 million last year. Excluding restructuring costs,
fourth-quarter operating income was $11.7 million in fiscal 2012, up from
$11.2 million in fiscal 2011.
For the full year, book manufacturing sales were $233.0 million, up 1% from
$230.2 million in fiscal 2011. The segment’s full-year operating income,
excluding restructuring costs, was $23.4 million, up 4% from $22.5 million in
fiscal 2011.
The segment’s gross profit, excluding restructuring costs, was $19.6 million
or 28.4% of sales in the fourth quarter, versus $18.0 million or 27.0% of
sales a year ago. Gross profit for fiscal 2012 as a whole was $51.7 million or
22.2% of sales, excluding restructuring costs, versus $49.9 million or 21.7%
of sales last year. Despite intense price competition and reduced recycling
income, the segment’s margins improved because of a favorable sales mix and
continued gains in operating efficiency made possible by recent technology
investments and the consolidation of one-color capacity.
The book manufacturing segment focuses on three markets: education, religion,
and specialty trade. Sales to the education market were $31 million in the
fourth quarter, comparable to a year earlier. For the year, education sales
were $98 million, down 3% from fiscal 2011, due to shorter run lengths in
certain college textbooks and continued weakness in elementary and high school
sales. Sales to the religious market were up 6% to $19 million in the quarter,
and up 2% to $68 million for the full year; however, sales to Courier’s
largest religious customer were up 13% in the quarter and up 5% for the year.
Sales to the specialty trade market were up 25% to $17 million in the quarter,
and up 11% to $60 million for the full year, reflecting increased four-color
offset sales as well as growing demand for digital.
Revenues rose sharply at Courier Digital Solutions, reflecting growth in
demand for customized versions of college textbooks as well as increased sales
of trade books. With its current digital facilities running close to capacity,
in October Courier announced plans to add both a new HP digital cover press in
Massachusetts and a complete new digital production facility to complement its
four-color offset plant in Kendallville, Indiana.
“In large measure, our book manufacturing business returned to seasonal form
in the fourth quarter,” said Mr. Conway. “The difference is that the college
textbook market continues to evolve toward a shorter peak season, with more
customized editions prepared just ahead of the start of classes. However, we
remain in excellent position to capture the digital growth opportunities this
trend continues to create. With our new digital production capability at
Kendallville, customers will soon be able to integrate top-quality digital and
offset print strategies from a single location for complete life-cycle
management of every title.
“It was also a quarter in which religious sales returned to form, with a
double-digit increase at our largest customer more than making up for a couple
of short quarters. Over the year, religious sales grew in keeping with
longer-term trends associated with our ongoing partnership with this customer
to bring Scriptures to people in more than 100 countries.
“Finally, it was a quarter of continued growth in trade sales, as we landed
several new accounts while also achieving higher volume with a number of
long-time customers. In a tough competitive environment, publishers appreciate
our combination of quality, efficiency and responsiveness across the whole
spectrum of one- to four-color work, both offset and digital. And the
productivity of our people and workplaces, always high, continues to improve,
helped further by our consolidation of one-color print capacity earlier in the
year.”
Publishing segment trims loss, increases online offerings
Courier’s publishing segment includes three businesses: Dover Publications, a
niche publisher with thousands of titles in dozens of specialty trade markets;
Research & Education Association (REA), a publisher of test preparation books
and study guides; and Creative Homeowner, which publishes books and plans on
home design, decorating, landscaping and gardening.
Fourth-quarter revenues for the segment were $10.1 million, comparable to last
year’s fourth quarter, with 9% sales growth at Dover offset by weak results at
REA and Creative Homeowner. Despite its sales decline, REA remained
profitable, but Dover and Creative Homeowner reported operating losses.
Overall, the segment’s fourth-quarter operating loss was $426,000, versus
$872,000 in fiscal 2011.
For the year as a whole, publishing sales were $38.4 million, down 6% from
$40.8 million in fiscal 2011, with sales up modestly at Dover but down at the
other two businesses. Excluding restructuring costs in both years, the
segment’s operating loss for fiscal 2012 was $3.7 million, versus a loss of
$4.1 million in fiscal 2011. The reduction in the loss was attributable to the
effects of cost-reduction measures taken throughout the year.
“A year after the Borders bankruptcy, our publishing businesses have taken
significant steps to regain their footing,” said Mr. Conway. “Part of the
solution is to provide content which consumers can access directly online, and
we have delivered that: Dover with its DoverPictura.com online image library;
REA with its All Access program, allowing students to access test prep
materials anytime via mobile devices; and Creative Homeowner with its
UltimatePlans.com downloadable home plan business.
“A larger part of the solution, of course, is sales through online retailers,
where we saw double-digit growth this year in the segment. But while REA
shared in the growth, it continued to suffer from the absence of Borders’
bricks-and-mortar network, where REA products had benefited from prominent
placement in store displays. Developing other channels remains a key agenda
item for REA in the coming year.
“Finally, the third piece is our entry into e-books. After considerable
investment, we now have thousands of titles available to consumers across all
four leading e-book platforms of Amazon, Apple, Barnes & Noble and Google. The
first fruits of this effort started to materialize during the fourth quarter.”
Outlook
“Once again we have come through a year of economic uncertainty with good
prospects and solid finances,” said Mr. Conway. “With our debt down and our
organization more efficient than ever, we have been able to invest in growth
opportunities we could not have foreseen just a few years ago. Bolstered by
strong customer relationships in key long-term markets, we expect to continue
to outpace the overall education market with our integrated solutions for
customized textbook production, seize additional short-run opportunities among
trade publishers, and continue the steady expansion of our responsibilities on
behalf of our largest religious customer. And as a publisher, while we remain
cautious about consumer spending, we expect to begin to benefit from our
investments in e-books and other digital content to complement our print
offerings.
“We expect capital expenditures, which were $10 million in fiscal 2012, to
increase to between $17 million and $19 million in fiscal 2013, with
approximately $13 million dedicated to expanding our digital capabilities.
“As in the past, we expect our performance in fiscal 2013 to follow a seasonal
pattern, with the larger portion of our earnings coming in the second half.
And we expect to have the additional digital capacity in Kendallville
available in time for the busiest part of the year.
“In line with our past practice, today’s guidance, including comparisons to
prior performance, excludes impairment and restructuring charges. Overall, we
expect fiscal 2013 sales of between $269 million and $283 million, an increase
of between 3% and 8% over the 53-week period of fiscal 2012. We also expect
earnings per diluted share of between $.75 and $1.05, which compares with our
fiscal 2012 earnings of $.91 per diluted share.
“In addition to measuring our performance by generally accepted accounting
principles, we also track several non-GAAP measures including EBITDA (earnings
before interest, taxes, depreciation and amortization) as an additional
indicator of the company's operating cash flow performance. This measure
should be considered in addition to, not a substitute for or superior to,
measures of financial performance prepared in accordance with GAAP. In fiscal
2013, we expect EBITDA to be between $39 million and $45 million, compared to
$42 million in fiscal 2012, excluding restructuring charges.
Factors not incorporated into this guidance include the possibility of future
impairment or restructuring charges.
About Courier Corporation
Courier Corporation is America’s third largest book manufacturer and a leader
in content management and customization in new and traditional media. It also
publishes books under three brands offering award-winning content and more
than 10,000 titles. Founded in 1824, Courier is headquartered in North
Chelmsford, Massachusetts. For more information, visit www.courier.com.
This news release includes forward-looking statements, including statements
relating to the continuation of the Company’s dividend for fiscal year 2013,
expansion into e-books and digital content offerings, and the Company’s
financial expectations for fiscal year 2013, including sales, EBITDA, earnings
per share and capital expenditures. Statements that describe future
expectations, plans or strategies are considered “forward-looking statements”
as that term is defined under the Private Securities Litigation Reform Act of
1995 and releases issued by the Securities and Exchange Commission. The words
“believe,” “expect,” “anticipate,” “intend,” “estimate” and other expressions
which are predictions of or indicate future events and trends and which do not
relate to historical matters identify forward-looking statements. Such
statements are subject to risks and uncertainties that could cause actual
results to differ materially from those currently anticipated. Factors that
could affect actual results include, among others, changes in customers’
demand for the Company’s products, including seasonal changes in customer
orders and shifting orders to lower cost regions, changes in market growth
rates, changes in raw material costs and availability, pricing actions by
competitors and other competitive pressures in the markets in which the
Company competes, consolidation among customers and competitors, insolvency of
key customers or vendors, changes in the Company’s labor relations, changes in
obligations of multiemployer pension plans, success in the execution of
acquisitions and the performance and integration of acquired businesses
including carrying value of intangible assets, restructuring and impairment
charges required under generally accepted accounting principles, changes in
operating expenses including medical and energy costs, changes in technology
including migration from paper-based books to digital, difficulties in the
start up of new equipment or information technology systems, changes in
copyright laws, changes in consumer product safety regulations, changes in
environmental regulations, changes in tax regulations, changes in the
Company’s effective income tax rate and general changes in economic
conditions, including currency fluctuations, changes in interest rates,
changes in consumer confidence, changes in the housing market, and tightness
in the credit markets. Although the Company believes that the assumptions
underlying the forward-looking statements are reasonable, any of the
assumptions could be inaccurate, and therefore, there can be no assurance that
the forward-looking statements will prove to be accurate. The forward-looking
statements included herein are made as of the date hereof, and the Company
undertakes no obligation to update publicly such statements to reflect
subsequent events or circumstances.
COURIER CORPORATION
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS (Unaudited)
(In thousands, except per share amounts)
QUARTER ENDED YEAR ENDED
September 29, September 24, September 29, September
24,
2012 (1) 2011 2012 (1) 2011
Net sales $ 77,100 $ 73,667 $ 261,320 $ 259,375
Cost of sales 55,721 52,832 199,113 203,341
Gross profit 21,379 20,835 62,207 56,034
Selling and
administrative 11,910 11,094 47,137 47,447
expenses
Impairment - - - 8,608
charge (2)
Operating 9,469 9,741 15,070 (21 )
income (loss)
Interest 196 276 895 921
expense, net
Other income - - (587 ) -
Income (loss) 9,273 9,465 14,762 (942 )
before taxes
Income tax
provision 3,564 3,051 5,595 (1,076 )
(benefit)
Net income $ 5,709 $ 6,414 $ 9,167 $ 134
Net income per $ 0.50 $ 0.53 $ 0.77 $ 0.01
diluted share
Cash dividends
declared per $ 0.21 $ 0.21 $ 0.84 $ 0.84
share
Wtd. average
diluted shares 11,446 12,040 11,928 12,022
outstanding
SEGMENT
INFORMATION:
Net sales:
Book $ 69,177 $ 66,602 $ 233,040 $ 230,229
Manufacturing
Specialty 10,141 10,069 38,355 40,829
Publishing
Elimination of
intersegment (2,218 ) (3,004 ) (10,075 ) (11,683 )
sales
Total $ 77,100 $ 73,667 $ 261,320 $ 259,375
Operating
income (loss):
Book $ 10,176 $ 11,023 $ 20,713 $ 14,822
Manufacturing
Specialty (426 ) (872 ) (4,364 ) (4,821 )
Publishing
Impairment - - - (8,608 )
charge (2)
Stock based (331 ) (368 ) (1,429 ) (1,440 )
compensation
Intersegment 50 (42 ) 150 26
profit
Total $ 9,469 $ 9,741 $ 15,070 ($21 )
(1) Fiscal year 2012 was a 53-week period; the additional week was included in
the fourth quarter.
(2) In the prior year, the Company recorded an $8.6 million non-cash, pretax
impairment charge related to REA which on an after-tax basis was $5.0 million,
or $0.42 per diluted share.
COURIER CORPORATION
SEGMENT RESULTS OF OPERATIONS (Unaudited)
(In thousands)
BOOK
MANUFACTURING QUARTER ENDED YEAR ENDED
SEGMENT
September 29, September 24, September 29, September
24,
2012 (1) 2011 2012 (1) 2011
Net sales $ 69,177 $ 66,602 $ 233,040 $ 230,229
Cost of sales 51,071 48,833 183,079 187,643
Gross profit 18,106 17,769 49,961 42,586
Selling and
administrative 7,930 6,746 29,248 27,764
expenses
Operating income $ 10,176 $ 11,023 $ 20,713 $ 14,822
SPECIALTY
PUBLISHING QUARTER ENDED YEAR ENDED
SEGMENT
September 29, September 24, September 29, September
24,
2012 (1) 2011 2012 (1) 2011
Net sales $ 10,141 $ 10,069 $ 38,355 $ 40,829
Cost of sales 6,919 6,960 26,259 27,406
Gross profit 3,222 3,109 12,096 13,423
Selling and
administrative 3,648 3,981 16,460 18,244
expenses
Operating loss ($426 ) ($872 ) ($4,364 ) ($4,821 )
(1) Fiscal year 2012 was a 53-week period; the additional week was included in
the fourth quarter.
COURIER CORPORATION
CONSOLIDATED CONDENSED BALANCE SHEETS (Unaudited)
(In thousands)
September 29, September 24,
ASSETS 2012 2011
Current assets:
Cash and cash equivalents $ 64 $ 104
Investments 765 1,141
Accounts receivable 35,152 35,320
Inventories 36,364 39,353
Deferred income taxes 4,495 4,431
Other current assets 950 1,443
Total current assets 77,790 81,792
Property, plant and equipment, net 89,952 100,523
Goodwill and other intangibles 17,880 18,327
Prepublication costs 7,135 7,334
Deferred income taxes 3,229 3,772
Other assets 1,374 1,278
Total assets $ 197,360 $ 213,026
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current maturities of long-term debt $ 1,872 $ 1,804
Accounts payable 11,364 12,061
Accrued taxes 3,857 2,185
Other current liabilities 15,777 15,433
Total current liabilities 32,870 31,483
Long-term debt 13,696 19,718
Other liabilities 6,283 7,502
Total liabilities 52,849 58,703
Total stockholders' equity 144,511 154,323
Total liabilities and stockholders' equity $ 197,360 $ 213,026
COURIER CORPORATION
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Unaudited)
(In thousands)
For the Years Ended
September 29, September 24,
2012 2011
Operating Activities:
Net income $ 9,167 $ 134
Adjustments to
reconcile net income to
cash provided from
operating activities:
Depreciation and 25,060 23,162
amortization
Impairment charge - 8,608
Stock-based 1,429 1,440
compensation
Deferred income taxes 479 (5,479 )
Gain on disposition of (587 ) -
assets
Changes in other 5,244 973
working capital
Other long-term, net (1,809 ) 3,475
Cash provided from 38,983 32,313
operating activities
Investment Activities:
Capital expenditures (9,934 ) (15,666 )
Prepublication costs (4,069 ) (4,345 )
Proceeds on disposition 587 -
of assets
Short-term investments 376 (51 )
Cash used for (13,040 ) (20,062 )
investment activities
Financing Activities:
Long-term debt (5,954 ) (2,176 )
repayments, net
Cash dividends (10,098 ) (10,151 )
Stock repurchases (10,000 ) -
Proceeds from stock 344 413
plans
Other (275 ) (340 )
Cash used for financing (25,983 ) (12,254 )
activities
Decrease in cash and ($40 ) ($3 )
cash equivalents
In addition to measuring our performance by generally accepted accounting
principles, we also track several non-GAAP measures including EBITDA (earnings
before interest, taxes, depreciation and amortization) as additional
indicators of the company's operating cash flow performance. These measures
should be considered in addition to, not a substitute for or superior to,
measures of financial performance prepared in accordance with GAAP.
Non-GAAP reconciliation
- EBITDA:
Net income $ 9,167 $ 134
Income tax provision 5,595 (1,076 )
(benefit)
Interest expense, net 895 921
Depreciation and 25,060 23,162
amortization
Impairment charge - 8,608
Restructuring costs 1,892 7,377
Other income (587 ) -
EBITDA $ 42,022 $ 39,126
COURIER CORPORATION
OTHER RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES (Unaudited)
(In thousands, except per share amounts)
Quarter Ended September 29, 2012 Year Ended September 29, 2012
Income Income Net Income Income Net
Income Income
Before Tax Net per Before Tax Net per
Diluted Diluted
Taxes Provision Income Share Taxes Provision Income Share
GAAP basis measures $9,273 $3,564 $5,709 $0.50 $14,762 $5,595 $9,167 $0.77
Restructuring (1) 1,511 580 931 0.08 3,325 1,260 2,065 0.17
costs
Other income (2) - - - - (587) (222) (365) (0.03)
Non-GAAP measures $10,784 $4,144 $6,640 $0.58 $17,500 $6,633 $10,867 $0.91
Quarter Ended September 24, 2011 Year Ended September 24, 2011
Net Income Income Net
Income Income Income (Loss) Tax Income
Before Tax Net per Before Provision Net per
Diluted Diluted
Taxes Provision Income Share Taxes (Benefit) Income Share
GAAP basis measures $9,465 $3,051 $6,414 $0.53 ($942) ($1,076) $134 $0.01
Impairment (3) - - - - 8,608 3,582 5,026 0.42
charge
Restructuring (4) 200 69 131 0.01 7,672 2,646 5,026 0.42
costs
Bad-debt (5) (50) (17) (33) - 700 235 465 0.04
provision
Non-GAAP measures $9,615 $3,103 $6,512 $0.54 $16,038 $5,387 $10,651 $0.89
Cost reduction measures were taken throughout the year in the Company's operating segments. Related
(1) severance and post-retirement benefit expenses were $1.9 million, while accelerated depreciation
associated with a reduction in the Company's one-color offset press capacity of $1.4 million was
recorded in the fourth quarter.
(2) In the first quarter of fiscal 2012, the Company recorded a $0.6 million gain associated with the
sale of its interests in non-operating real property relating to cell towers.
In the third quarter of fiscal 2011, the Company recorded an $8.6 million non-cash, pre-tax
(3) impairment charge related to REA, representing all of REA's goodwill, as well as $200,000 related to
the write-down of under-performing titles.
In the second quarter of fiscal 2011, the Company closed its book manufacturing plant in Stoughton,
Massachusetts, due to the impact of technology and competitive pressures affecting the one-color
(4) paperback books in which the plant specialized. Restructuring charges included $4.4 million related
to severance and pension withdrawal liabilities and $3.3 million for lease termination and other
facility closure costs.
(5) In the second quarter of fiscal 2011, the Company recorded a $700,000 bad-debt provision related to
the bankruptcy of Borders Group, Inc.
COURIER CORPORATION
OTHER RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES (Unaudited)
(In thousands, except per share amounts)
BOOK MANUFACTURING Quarter Ended September 29, 2012 Year Ended September 29, 2012
SEGMENT
GAAP Basis Non-Recurring Non-GAAP GAAP Basis Non-Recurring Non-GAAP
Measures Items (1) Measures Measures Items (1) Measures
Net sales $ 69,177 $ 69,177 $ 233,040 $ 233,040
Cost of sales 51,071 (1,511 ) 49,560 183,079 (1,723 ) 181,356
Gross profit 18,106 1,511 19,617 49,961 1,723 51,684
Selling and
administrative 7,930 - 7,930 29,248 (961 ) 28,287
expenses
Operating $ 10,176 $ 1,511 $ 11,687 $ 20,713 $ 2,684 $ 23,397
income
Quarter Ended September 24, 2011 Year Ended September 24, 2011
GAAP Basis Non-Recurring Non-GAAP GAAP Basis Non-Recurring Non-GAAP
Measures Items (2) Measures Measures Items (2) Measures
Net sales $ 66,602 $ 66,602 $ 230,229 $ 230,229
Cost of sales 48,833 (200 ) 48,633 187,643 (7,261 ) 180,382
Gross profit 17,769 200 17,969 42,586 7,261 49,847
Selling and
administrative 6,746 - 6,746 27,764 (411 ) 27,353
expenses
Operating $ 11,023 $ 200 $ 11,223 $ 14,822 $ 7,672 $ 22,494
income
SPECIALTY PUBLISHING Quarter Ended September 29, 2012 Year Ended September 29, 2012
SEGMENT
GAAP Basis Non-Recurring Non-GAAP GAAP Basis Non-Recurring Non-GAAP
Measures Items (1) Measures Measures Items (1) Measures
Net sales $ 10,141 $ 10,141 $ 38,355 $ 38,355
Cost of sales 6,919 6,919 26,259 26,259
Gross profit 3,222 - 3,222 12,096 - 12,096
Selling and
administrative 3,648 - 3,648 16,460 (641 ) 15,819
expenses
Operating loss ($426 ) $ 0 ($426 ) ($4,364 ) $ 641 ($3,723 )
Quarter Ended September 24, 2011 Year Ended September 24, 2011
GAAP Basis Non-Recurring Non-GAAP GAAP Basis Non-Recurring Non-GAAP
Measures Items (3) Measures Measures Items (3) Measures
Net sales $ 10,069 $ 10,069 $ 40,829 $ 40,829
Cost of sales 6,960 6,960 27,406 27,406
Gross profit 3,109 - 3,109 13,423 - 13,423
Selling and
administrative 3,981 50 4,031 18,244 (700 ) 17,544
expenses
Operating loss ($872 ) ($50 ) ($922 ) ($4,821 ) $ 700 ($4,121 )
Cost reduction measures were taken throughout the year in the Company's operating segments. Related severance
(1) and post-retirement benefit expenses were $1.9 million, while accelerated depreciation associated with a
reduction in the Company's one-color offset press capacity of $1.4 million was recorded in the fourth
quarter.
In the second quarter of fiscal 2011, the Company closed its book manufacturing plant in Stoughton,
(2) Massachusetts, due to the impact of technology and competitive pressures affecting the one-color paperback
books in which the plant specialized. Restructuring charges included $4.4 million related to severance and
pension withdrawal liabilities and $3.3 million for lease termination and other facility closure costs.
(3) In the second quarter of fiscal 2011, the Company recorded a $700,000 bad-debt provision related to the
bankruptcy of Borders Group, Inc.
Contact:
Courier Corporation
James F. Conway III, 978-251-6000
Chairman, President and Chief Executive Officer
or
Peter M. Folger, 978-251-6000
Senior Vice President and
Chief Financial Officer
www.courier.com
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