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Courier Corp. Sales, Income Up in Third Quarter

July 20, 2010
NORTH CHELMSFORD, MA—Jul 20, 2010—Courier Corp., one of America's leading book manufacturers and specialty publishers, today announced results for the quarter ended June 26, 2010, the third quarter of its 2010 fiscal year. Despite a sluggish economy and a highly competitive sales environment, Courier posted gains in revenue and net income both for the quarter and for the year to date. Revenues for the quarter were $64.9 million, up 6% from last year's third-quarter sales of $61.4 million. Third-quarter net income was $1.8 million or $.15 per diluted share, versus $1.6 million or $.14 per diluted share in fiscal 2009.

For the first nine months of fiscal 2010, Courier sales were $186.9 million, up 4% from $180.4 million in 2009. Net income through nine months was $6.0 million or $.50 per diluted share, versus $3.6 million or $.31 per diluted share last year, excluding restructuring and impairment charges of $19.4 million incurred last year. Including those charges, Courier reported a net loss for the first nine months of fiscal 2009 of $8.9 million or $.75 per diluted share. Details of last year's restructuring and impairment charges can be found in the table at the end of this release.

Third-quarter sales were up in all three of Courier's principal book manufacturing markets of education, religion and specialty trade. In the company's publishing segment, sales were up at Research & Education Association (REA) but down at Dover Publications and Creative Homeowner, reflecting weak consumer spending and continuing caution among book retailers.

Demand for four-color textbooks was particularly strong. Courier's Kendallville, IN, four-color plant ran nearly at capacity through much of the quarter, and the company's Massachusetts-based digital print operation began four-color production, ramping up smoothly, ahead of previous expectations. In anticipation of continued growth in four-color books, short-run editions and customized content, the company announced plans to expand capacity at both plants over the coming year.

"With consumers and businesses still skittish about the economy, we expected a challenging quarter," said Courier Chairman and Chief Executive Officer James F. Conway III. "Fortunately, we were able to play to our strengths as a book manufacturer while modestly improving financial performance in our publishing segment despite the soft retail environment.

"At the same time, we kept our eye on the longer-term outlook and continued to build on what is already an exceptionally efficient array of manufacturing capabilities. Working closely with HP, we brought our digital inkjet system up to speed in one-color, then moved on to four-color production with a minimum of startup pains. In addition, having committed to a fourth high-speed manroland press in April to serve our burgeoning business in four-color textbooks, we have now reached agreement on a second digital system from HP, which will enable us to deliver offset quality across a growing range of short-run applications.

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