Courier Records Modest Declines in Q4, Net Loss for Fiscal Year
NORTH CHELMSFORD, MA—November 05, 2009—Courier Corp. (Nasdaq: CRRC), one of America’s leading book manufacturers and specialty publishers, today announced fourth-quarter and full-year results for its fiscal year ended September 26, 2009.
With the recession affecting sales in both of the company’s business segments, Courier’s consolidated fourth-quarter revenues were $68.4 million, down 10% from $76.3 million in last year’s fourth quarter. Net income for the fourth quarter was $5.7 million or $.48 per diluted share, versus $7.2 million or $.60 per diluted share in the fourth quarter of fiscal 2008. Excluding a fourth-quarter restructuring charge, net income would have been $.54 per diluted share, in line with previous guidance.
For fiscal 2009 overall, Courier sales were $248.8 million, down from $280.3 million in 2008. Net loss for the year was $3.1 million or $.27 per share, versus a loss of $370,000 or $.03 per share last year. The net loss in fiscal 2009 reflects a non-cash, pre-tax impairment charge of $15.6 million taken earlier in the year, as well as restructuring costs of $4.8 million. Excluding these charges, net income for fiscal 2009 would have been $10.2 million or $.86 per diluted share. The net loss in fiscal 2008 included a pre-tax impairment charge of $23.6 million; excluding this charge, fiscal 2008 net income would have been $15 million or $1.22 per diluted share.
In Courier’s specialty publishing segment, with consumer spending down and book retailers managing inventories tightly, sales for the year were down 24%. Much of this decline occurred at Creative Homeowner, the business most directly affected by the weak housing market. However, more than 70% of the reduction in Creative Homeowner sales was due to the winding-down of its unprofitable book distribution operation early in 2009, a move which enabled Creative Homeowner to reduce its operating loss substantially from a year ago. The weak economy also affected the publishing segment’s other two businesses, Dover Publications and Research & Education Association (REA), with combined full-year sales at Dover and REA down 12%.