Digital Sales Growth Drives Courier’s Positive Revenue Results
“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 eBook form on all the major platforms,” he reported.
“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.”
Book Manufacturing: Strong Growth in Religious and Trade Markets
Courier’s book manufacturing segment had fourth-quarter sales of $69.2 million, up 4 percent 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 percent from $230.2 million in fiscal 2011. The segment’s full-year operating income, excluding restructuring costs, was $23.4 million, up 4 percent from $22.5 million in fiscal 2011.
The segment’s gross profit, excluding restructuring costs, was $19.6 million in the fourth quarter, vs. $18.0 million a year ago. Gross profit for fiscal 2012 as a whole was $51.7 million, excluding restructuring costs, compared to $49.9 million 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.