Courier Reports Education Sales Up, Borders Fallout Induces Loss
“The uneasy economy continues to take its toll, but we are fortunate to be able to produce exceptionally attractive books quickly and economically due to our access to Courier Digital Solutions. This capability will serve us even better when consumer spending improves.”
“Our fourth quarter is traditionally the strongest in our fiscal year,” said Conway. “We expect that pattern to hold true this year as well. Our relationships with world leaders in educational and religious publishing have never been stronger, and with the college textbook market in full swing, we are benefiting from our recent investments in capacity through higher utilization of our most efficient equipment.
“At the same time, the Borders situation continues to cast a shadow over both of our business segments, and as a result we have adjusted our guidance to reflect no further sales to Borders as well as a continued shortfall in trade sales in the book manufacturing segment. In addition, we recognize that e-books will probably continue to account for an increasing percentage of trade book sales.
“As a result, for the fourth quarter of fiscal 2011, we expect earnings of $.36 to $.46 per diluted share, versus $.35 per diluted share in last year’s fourth quarter.
“For fiscal 2011 overall, we expect to achieve total sales of between $258 million and $263 million, vs. $257 million in fiscal 2010. And we expect earnings per diluted share of between $.70 and $.80, excluding the second-quarter restructuring costs and bad-debt provision, as well as the third-quarter impairment charge. This compares with fiscal 2010 earnings of $.85 per diluted share, excluding last year’s impairment charge.
“In addition to measuring our performance by generally accepted accounting principles (GAAP), 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 2011, we expect EBITDA to be between $38 million and $40 million, excluding the second-quarter restructuring costs and bad-debt provision, and the third-quarter impairment charge. This compares with EBITDA of $38 million in fiscal 2010, excluding last year’s impairment charge.