Courier Corporation Reports Record Earnings; Seventh Consecutive Year of Double-Digit EPS and Dividend Growth.Business Editors NORTH CHELMSFORD Chelmsford, city, England Chelmsford, city (1991 pop. 91,109), county seat of Essex, SE England. It is a market center (especially for cattle) for the surrounding agricultural district. , Mass.--(BUSINESS WIRE)--Nov. 6, 2003 Courier A monospaced typeface originating from the typewriter that is commonly used for letters. It is still considered by many to be the "appropriate" typeface for business correspondence. Corporation (Nasdaq:CRRC CRRC Cool Roof Rating Council CRRC Combat Rubber Raiding Craft CRRC Caucasus Research Resource Center CRRC California Refuse Removal Council CRRC Chesapeake Regional Ranges Cooperative CRRC Construction Requirements Review Committee CRRC Combat Rigid Raiding Craft ), one of America's leading book manufacturers and specialty A contract under seal. A specialty is a written document that has been sealed and delivered and is given as security for the payment of a specifically indicated debt. publishers, today announced results for the fiscal year ending September September: see month. 27, 2003. Faced with a challenging economic environment, the company achieved its seventh straight year of record income, turning a modest increase in annual sales into an 18% gain in earnings from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the . In addition, despite a substantial increase in capital expenditures, Courier finished the year with minimal debt and cash of $24 million. Simultaneously si·mul·ta·ne·ous adj. 1. Happening, existing, or done at the same time. See Synonyms at contemporary. 2. Mathematics with the release of the company's operating results, Courier's Board of Directors announced a 17% increase in its quarterly common stock dividend. This marked the seventh consecutive year of double-digit dou·ble-dig·it adj. Being between 10 and 99 percent: double-digit inflation. growth in Courier's dividend. The company also announced a three-for-two split in shares of the company's common stock, to be effected by a 50% stock dividend, payable December December: see month. 5, 2003. All amounts in this release are reported prior to the effect of the stock split. Fourth-quarter pretax income pretax income Reported income before the deduction of income taxes. Pretax income is sometimes considered a better measure of a firm's performance than aftertax income because taxes in one period may be influenced by activities in earlier periods. was up in both of Courier's operating segments, leading to a company-wide increase from continuing operations of 4% in earnings per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share for the quarter. This performance came despite a difficult fourth quarter in which sales were down 4%, reflecting continued uncertainty in the economy. "The economy may be recovering now, but we had to overcome its effects during the last quarter," said Courier Chairman and Chief Executive Officer James James, person in the Bible James, in the Gospel of St. Luke, kinsman of St. Jude. The original does not specify the relationship. James, rivers, United States James. F. Conway Conway, city, United States Conway, city (1990 pop. 26,481), seat of Faulkner co., central Ark., in a farm and cotton area; inc. 1873. It is a trade and industrial center. Conway was settled (c.1865) near the site of a French trading post (c.1770). III. "The good news is that for the year as a whole, once again we were able to swim against the tide and post a double-digit earnings increase. A key factor was our ability to gain market share in high-value segments while drilling deeper into our operations to maximize In a graphical environment, to enlarge a window to the full size of the screen. See Win Maximize windows. efficiency and profitability. Our financial performance also made it a gratifying grat·i·fy tr.v. grat·i·fied, grat·i·fy·ing, grat·i·fies 1. To please or satisfy: His achievement gratified his father. See Synonyms at please. 2. year for Courier investors, as our stock outperformed the S&P 500 for six out of the last seven years." Income from continuing operations rose to $19.3 million for fiscal 2003, up 18% from $16.3 million in 2002. Earnings per diluted share from continuing operations were $3.56, an increase of 16% over last year's earnings of $3.06. Fourth quarter income from continuing operations was $7.0 million, or $1.28 per diluted share, up 6% from $6.6 million, or $1.23 per diluted share, in the fourth quarter of fiscal 2002. Revenue for the quarter was $53.5 million, down 4% from $55.6 million in last year's fourth quarter. These figures do not include results from Courier Custom Publishing, a unit sold by Courier in December 2002. Courier Custom Publishing contributed $.16 per diluted share for 2003 (including a gain on the sale) and has been reported as a discontinued operation discontinued operation A segment of a business that has been abandoned or sold or for which plans for one or another of these actions have been approved. See also continuing operations. . Book manufacturing pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern earnings up 22% Courier's book manufacturing segment had fourth-quarter sales of $45.3 million, down 3% from fiscal 2002's fourth quarter. Pretax earnings for the segment rose 11% in the fourth quarter despite the drop in sales, reaching $8.4 million or $1.01 per share versus $7.6 million or $.98 per share in 2002. For the full year, book manufacturing segment sales were $171.9 million, up slightly from $170.4 million in fiscal 2002. Pretax earnings for the year were $24.2 million or $2.93 per share, an increase of 22% from last year's $19.8 million or $2.53 per share. Gross profit as a percentage of sales rose by 200 basis points to 29.5% from 27.5% a year earlier due to a combination of productivity gains, cost reductions, and a better sales mix sales mix See product mix. . The book manufacturing segment focuses on three publishing markets: education, religion, and specialty trade. Sales to the education market rose 3% in the fourth quarter and 6% for the full year, with strong sales at the college level overcoming the effects of state budget shortfalls on purchases of elementary elementary /el·e·men·ta·ry/ (el?e-men´tah-re) not resolvable or divisible into simpler parts or components. elementary not resolvable into simpler parts. elementary body 1. and high school textbooks. In the religious market, Courier had its first down year in a decade, with sales off by 4% in the fourth quarter and 2% for the year, reflecting a reduction in sales of religious trade books. Sales to the specialty trade market were also off in the fourth quarter, with a drop in sales of game books contributing to an 11% decline from a year earlier. But for the year as a whole, specialty trade sales were up by 4%, due mostly to gains in market share with key customers. "We've we've Contraction of we have. we've have spent much of the last two years battling for share in book manufacturing," said Mr. Conway. "We've succeeded by delivering better service, investing in state-of-the-art technology and working closely with customers to help them succeed. We grew our four-color four-col·or adj. Of or being an overprinting or photographic process in which three primary colors and black are transferred by four different plates or filters to a surface, reproducing the colors of the subject matter. business by 16% in fiscal 2003, and we ordered a new press to further expand our four-color capabilities starting next spring. We also invested in training and ergonomics ergonomics, the engineering science concerned with the physical and psychological relationship between machines and the people who use them. The ergonomicist takes an empirical approach to the study of human-machine interactions. to make our plants as safe and productive as possible, which helps in both service and profitability. We look forward to a return to traditional growth rates Growth Rates The compounded annualized rate of growth of a company's revenues, earnings, dividends, or other figures. Notes: Remember, historically high growth rates don't always mean a high rate of growth looking into the future. as the recovery picks up, but we have become adept at making more from less, and this skill will continue to be useful no matter what happens in the marketplace." Specialty publishing pretax earnings up 20% Courier's specialty publishing segment comprises Dover Dover, town, England Dover (dō`vər), town (1991 pop. 33,461), Kent, SE England, on the Strait of Dover, beneath chalk cliffs (the "White Cliffs of Dover") c.375 ft (114 m) high. The small Dour River flows through the town. Publications, which Courier acquired in September 2000. Dover's sales for fiscal 2003 were $36.4 million, a 1% increase over last year's $36.0 million. Sales for the fourth quarter were $10.0 million, down 1% from fiscal 2002 as a result of reduced orders from large bookstore chains. Direct-to-consumer sales were up 13% for the year, and international sales were up 15%, reflecting more effective consumer promotions and improved international distribution. Dover's pretax income rose for both the fourth quarter and the year as a whole. Fourth-quarter pretax income was $2.4 million or $.28 per diluted share, up 10% over $2.2 million or $.26 per diluted share a year earlier. For the full fiscal year, Dover's pretax income was $5.9 million or $.69 per share, an increase of 20% from $4.9 million or $.58 per share in 2002. Gross profit as a percentage of sales increased by 220 basis points, from 45% last year to 47.2% this year, thanks to a combination of price increases, operating efficiencies, and declining product costs related to the sale of inventory from the original acquisition. "This was a year when many companies would have been happy with 1% sales growth," said Mr. Conway. "We worked hard to reach out to new customers, but were hurt by slower sales to major bookstore chains. Fortunately, Dover's ability to turn revenues into earnings continued to improve despite the challenging market. And the past year's increased flow of new titles and aggressive sales channel development should pave PAVE Cardiology A clinical trial–Post AV Node Ablation Evaluation the way for a resumption RESUMPTION. To reassume; to promise again; as, the resumption of payment of specie by the banks is general. It also signifies to take things back; as the government has resumed the possession of all the lands which have not been paid for according to the requisitions of the law, and the of double-digit growth in the coming year." Outlook for fiscal 2004 "We have prepared ourselves for whatever degree of economic recovery materializes," said Mr. Conway. "We are encouraged by recent reports of strong GDP GDP (guanosine diphosphate): see guanine. growth, and we have stepped up our investment in four-color printing capacity to meet increasing demand. Yet we will continue to drive additional operating efficiencies throughout our business to the extent that they are compatible with the best service in the industry. "Overall, we expect Courier to achieve fiscal 2004 sales growth of 6% to 9%, giving us total sales of between $215 and $220 million, a record high for Courier. In book manufacturing, we expect sales for fiscal 2004 to increase by 5% to 7%, with growth in all three markets. In specialty publishing, as noted above, we look for a return to double-digit sales growth. "We are also confident about our ability to grow earnings in 2004. Incremental costs Costs which are additional costs to the Service appropriations that would not have been incurred absent support of the contingency operation. See also financial management. of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $1 million for our new four-color press will cut into manufacturing earnings, but we still expect pretax income for the segment to grow by 8% to 12%. And we expect Dover pretax income to rise by 15% to 20%. Overall, we expect earnings per diluted share of $3.85 to $4.00. This represents an increase of between 8% and 12% from this year's earnings from continuing operations of $3.56 per diluted share, a new company record." About Courier Corporation Courier Corporation publishes, prints and sells books. Headquartered in North Chelmsford, Massachusetts North Chelmsford is a part of the U.S. town of Chelmsford, Massachusetts. Although North Chelmsford has its own zip code, library, post office, police station, fire station, and local calling area, it is run by the same local town government and is part of the same school district , Courier has two business segments, full-service full-ser·vice adj. Associated with or offering complete service: full-service gasoline pumps; full-service banks. book manufacturing and specialty publishing. For more information, visit www.courier.com. Courier Corporation will host a fourth-quarter and year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. conference call today at 2:30 p.m. ET regarding issues discussed in this news release. The conference call will be available via telephone at 416-641-6442 and accessible via webcast on Courier Corporation's investor relations Investor relations The process by which the corporation communicates with its investors. home page, at www.courier.com. Recorded replays of the conference call will be available on Courier's web site and by telephone at 800-633-8284 (reservation A clause in a deed of real property whereby the grantor, one who transfers property, creates and retains for the grantor some right or interest in the estate granted, such as rent or an Easement ,a right of use over the land of another. number: 21162385), beginning at 4:30 p.m. ET today. This news release includes forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. . Statements that describe future expectations, plans or strategies are considered "forward-looking statements" as that term is defined under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995 and releases issued by the Securities and Exchange Commission. The words "believe," "expect," "anticipate," "intend," "estimate" and other expressions which are predictions of or indicate future events and trends and which do not relate to historical matters identify forward-looking statements. Such statements are subject to risks and uncertainties that could cause actual results to differ materially from those currently anticipated. Factors that could affect actual results include, among others, changes in customers' demand for the Company's products, including seasonal changes in customer orders, changes in raw material costs, pricing actions by competitors COMPETITORS, French law. Persons who compete or aspire to the same office, rank or employment. As an English word in common use, it has a much wider application. Ferriere, Dict. de Dr. h.t. , consolidation among customers and competitors, unanticipated changes in operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. , changes in technology, changes in tax policy including export credits, and general changes in economic conditions. Although the Company believes that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could be inaccurate, and therefore, there can be no assurance that the forward-looking statements will prove to be accurate. The forward-looking statements included herein are made as of the date hereof here·of adv. Of this. hereof Adverb Formal or law of or concerning this Adv. 1. hereof - of or concerning this; "the twigs hereof are physic" , and the Company undertakes no obligation to update publicly such statements to reflect subsequent events or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or .
COURIER CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(Dollars in thousands, except per share amounts)
QUARTER ENDED YEAR ENDED
----------------------------------------
Sept. 27, Sept. 28, Sept. 27, Sept. 28,
2003 2002 2003 2002
----------------------------------------
Net sales $53,539 $55,640 $202,002 $201,024
Cost of sales 34,103 35,953 134,630 138,451
----------------------------------------
Gross profit 19,436 19,687 67,372 62,573
Selling and administrative
expenses 8,730 9,903 37,794 37,791
Interest (income) expense (14) 81 52 480
----------------------------------------
Income before taxes 10,720 9,703 29,526 24,302
Provision for income taxes 3,757 3,147 10,254 8,007
----------------------------------------
Income from continuing
operations $6,963 $6,556 $19,272 $16,295
========================================
Discontinued operations, net
of tax 52 53 848 (120)
----------------------------------------
Net income $7,015 $6,609 $20,120 $16,175
========================================
Income per diluted share from:
Continuing operations $1.28 $1.23 $3.56 $3.06
Discontinued operations 0.01 0.01 0.16 (0.02)
----------------------------------------
Net income per diluted share $1.29 $1.24 $3.72 $3.04
========================================
Cash dividends declared per
share $0.1125 $0.10 $0.45 $0.40
========================================
Wtd. average diluted shares
outstanding 5,437,000 5,351,000 5,413,000 5,328,000
SEGMENT INFORMATION:
Net sales:
------------------------------
Book Manufacturing $45,330 $46,906 $171,858 $170,382
Specialty Publishing 10,001 10,119 36,391 36,004
Intersegment sales (1,792) (1,385) (6,247) (5,362)
----------------------------------------
Total for continuing
operations $53,539 $55,640 $202,002 $201,024
Earnings before income taxes:
------------------------------
Book Manufacturing $8,449 $7,626 $24,171 $19,817
Specialty Publishing 2,398 2,177 5,855 4,890
Intersegment profit (127) (100) (500) (405)
----------------------------------------
Total for continuing
operations $10,720 $9,703 $29,526 $24,302
Net income per diluted share:
------------------------------
Book Manufacturing $1.01 $0.98 $2.93 $2.53
Specialty Publishing 0.28 0.26 0.69 0.58
Intersegment profit (0.01) (0.01) (0.06) (0.05)
----------------------------------------
Total for continuing
operations $1.28 $1.23 $3.56 $3.06
PRO FORMA NET INCOME PER DILUTED SHARE:
The following pro forma amounts for net income per diluted share
reflect the three-for-two stock split declared on
November 6, 2003 to be effected in the form of a 50% stock dividend to
be distributed on December 5, 2003.
Income from continuing
operations $0.85 $0.82 $2.37 $2.04
Net income 0.86 0.82 2.48 2.02
COURIER CORPORATION
CONSOLIDATED CONDENSED BALANCE SHEETS (Unaudited)
(Dollars in thousands)
Sept. 27, Sept. 28,
ASSETS 2003 2002
----------------------------------------------------------------------
Current assets:
Cash and cash equivalents $23,824 $5,630
Accounts receivable 29,174 30,892
Inventories 20,681 21,412
Deferred income taxes 3,164 3,163
Other current assets 830 625
--------------------
Total current assets 77,673 61,722
Property, plant and equipment, net 43,342 40,620
Goodwill and other intangibles, net 24,936 24,952
Prepublication costs 3,810 3,219
Other assets 1,340 1,145
--------------------
Total assets $151,101 $131,658
====================
LIABILITIES AND STOCKHOLDERS' EQUITY
--------------------------------------------------
Current liabilities:
Current maturities of long-term debt $81 $78
Accounts payable 6,494 6,708
Accrued taxes 6,521 6,965
Other current liabilities 13,717 14,004
--------------------
Total current liabilities 26,813 27,755
Long-term debt 593 674
Deferred income taxes 5,597 4,658
Other liabilities 2,678 2,652
--------------------
Total liabilities 35,681 35,739
--------------------
Total stockholders' equity 115,420 95,919
--------------------
Total liabilities and stockholders' equity $151,101 $131,658
====================
COURIER CORPORATION
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Unaudited)
(Dollars in thousands)
For the Years Ended
--------------------
Sept. 27, Sept. 28,
2003 2002
--------------------
Operating Activities:
Net income $20,120 $16,175
Adjustments to reconcile net income to
cash provided from operating activities:
Depreciation and amortization 9,798 10,687
Deferred income taxes 938 1,531
Changes in working capital 1,299 (19)
Gain on sale of discontinued operation (913) -
Other, net (105) 592
--------------------
Cash provided from operating activities 31,137 28,966
--------------------
Investment Activities:
Capital expenditures (10,885) (4,918)
Prepublication costs (2,232) (1,821)
Proceeds from sale of assets 1,500 -
--------------------
Cash used for investment activities (11,617) (6,739)
--------------------
Financing Activities:
Repayments of debt, net (78) (15,826)
Cash dividends (2,354) (2,058)
Proceeds from stock plans 1,106 1,114
--------------------
Cash used for financing activities (1,326) (16,770)
--------------------
Increase in cash and cash equivalents 18,194 5,457
Cash and cash equivalents at the beginning of the
period 5,630 173
--------------------
Cash and cash equivalents at the end of the period $23,824 $5,630
====================
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion