Courier Reports Growth in Book Manufacturing Segment
“Over time, as the market absorbs the former Borders inventory, we expect sales to improve at other bricks-and-mortar retailers. In the meantime, we have already seen healthy growth in online sales—a trend we expect to continue. In addition, we are rapidly converting our physical books into electronic books. By the end of the quarter, over 1,000 titles were available through Apple’s iBookstore, and we are working hard to increase both the number of our e-book titles as well as the number of platforms on which our titles are available.
“Another very positive development has been the release of REA’s unique All Access program, which straddles the line between physical and digital media to offer high school students a more efficient and engaging learning experience as they prepare for the increasingly high-stakes AP exams. With nine AP titles now available in All Access™ form, students can get a great jump on this spring’s testing season while REA gets a jump on its competitors in this key market.”
“Once again, our strong customer relationships helped us start the year on a positive note despite the market turbulence caused by the Borders liquidation,” reported Conway. “Our book manufacturing operations are performing well thanks to last year’s equipment investments and the elimination of redundant one-color capacity. Meanwhile, our publishing businesses have responded to adversity with innovative product launches that should help them recover in a post-Borders environment.
“For the full fiscal year we expect capital expenditures of between $10 million and $12 million, versus $16 million in fiscal 2011. We will also benefit from a full year’s worth of cost reductions related to the March 2011 closure of our one-color plant in Stoughton, MA, as well as from cost reductions last fall at Courier Publishing. And as usual, we expect our performance for the remainder of the fiscal year to follow a seasonal pattern, with the larger portion of our earnings coming in the second half.