Courier Records Modest Declines in Q4, Net Loss for Fiscal Year
“While we are encouraged by positive indicators in some areas of the economy, we have yet to see them in our own,” said Mr. Conway. “Consumers and retailers are still skittish, which affects all of our publishing businesses as well as many of our book manufacturing customers. School budgets will be hard pressed to grow in the near term, the environment for charitable donations remains uncertain at best, and pricing pressure everywhere is intense.
“On the other hand, we face fiscal 2010 with the benefit of a year of significant cost reductions and productivity gains in both of our business segments. And we continue to have excellent relationships with customers who, like Courier, have weathered severe storms in the past and have the resources and focus to succeed in the long term.
“As always, our path to long-term success rests on delivering service and technology that anticipate customer needs. With this in mind, we will be offering customers a digital print option in the latter half of next year, with associated startup costs that will likely reduce fiscal 2010 income by between $.05 and $.10 per share. These costs have been factored into our fiscal 2010 guidance.
“Factors not incorporated into our guidance include the potential impact of continued weakness in the credit markets on customers, competitors and vendors in both of our business segments, and the possibility of future impairment or restructuring charges.
“For fiscal 2010 overall, we expect to achieve total sales of between $253 million and $268 million. We expect earnings per diluted share of between $.70 and $1.00, versus our fiscal 2009 earnings of $.86 per diluted share, excluding restructuring and impairment charges.
“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 2010, we expect EBITDA, excluding impairment and restructuring charges, to be between $36 million and $42 million, compared to $37 million in fiscal 2009.”