Courier Corporation Reports Record Results; Eighth Straight Year of Earnings and Dividend Increases.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. -- 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 publishers, today announced record results for the fiscal year ended September September: see month. 25, 2004. Overcoming a slow first half with improved performance in the third and fourth quarters, the company achieved its eighth straight year of record income, with revenues 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 also reaching an all-time all-time adj. Exceeding all others up to the present time: an all-time speed skating record. all-time Adjective Informal high. In addition, despite the $12-million acquisition of Research & Education Association (REA REA Rural Electrification Administration REA Rural Electric Association REA Railway Express Agency REA Repertorio Economico Amministrativo REA Rapid Environmental Assessment REA Resident Evil: Apocalypse (movie) ) in January January: see month. and significant capital expenditures related to a new 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. press, Courier finished the year with 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 14% increase in its quarterly common stock dividend, to 10.0 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. from 8.75 cents per share. This marked the eighth consecutive year of double-digit dou·ble-dig·it adj. Being between 10 and 99 percent: double-digit inflation. increases in Courier's dividend. Fourth quarter income from continuing operations was $7.6 million, or $.92 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, up 9% from $7.0 million, or $.85 per diluted share, in the fourth quarter of fiscal 2003. Revenue for the quarter was $59.2 million, up 11% from $53.5 million in last year's fourth quarter. For fiscal 2004 as a whole, income from continuing operations rose to $20.5 million, up 7% from $19.3 million in 2003. Net income per diluted share from continuing operations was $2.50, an increase of 5% over last year's earnings of $2.37. "Once again we have weathered a challenging year and posted increases in sales, earnings and market share," 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. "Both of our business segments shared in this growth, with a strong education market driving gains in book manufacturing. The confidence that led us to double our four-color printing capacity with a new state-of-the-art press earlier in the year was amply am·ple adj. am·pler, am·plest 1. Of large or great size, amount, extent, or capacity: an ample living room. See Synonyms at spacious. 2. a. rewarded by volume and share increases in textbook textbook Informatics A treatise on a particular subject. See Bible. business from several key customers. In addition, we were pleased to see positive contributions to both sales and earnings from our January acquisition of Research & Education Association (REA). "As always, we worked hard to deliver outstanding service to customers while ratcheting up operating efficiency with equipment upgrades and expanded company-wide training. We also continued to serve investors well, outperforming the S&P 500 for seven out of the last eight years. And we closed the year with the honor As a verb, to accept a bill of exchange, or to pay a note, check, or accepted bill, at maturity. To pay or to accept and pay, or, where a credit so engages, to purchase or discount a draft complying with the terms of the draft. of being named to the Forbes Forbes , B(ertie) C(harles) 1880-1954. American publisher and businessman who founded and edited (1916-1954) Forbes magazine. His son Malcolm Stevenson Forbes list of 'Best 200 Small Companies in America' for the fourth year in a row." Book manufacturing sales, income and market share increase Courier's book manufacturing segment had fourth-quarter sales of $49.6 million, up 9% from last year's fourth quarter. Pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern earnings for the segment rose 8% in the fourth quarter to $9.1 million or $.72 per diluted share versus $8.4 million or $.67 per diluted share in 2003. For the full year, book manufacturing sales were $177.2 million, up 3% from $171.9 million in fiscal 2003. Pretax earnings for the year were $25.2 million or $2.01 per diluted share, an increase of 4% from last year's $24.2 million or $1.95 per diluted share. Gross profit as a percentage of the year's sales decreased by 160 basis points to 27.9% from 29.5% in 2003, reflecting a more aggressive pricing climate as well as startup (STARTing UP) "At startup" means when the computer is first turned on or when a program is first loaded. See Startup folder. costs for the new four-color press. The book manufacturing segment focuses on three publishing markets: education, religion, and specialty trade. Sales to the education market rose 11% in the fourth quarter and 13% for the full year, driven by strong sales at the elementary and high school levels, which rose approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 30% for the year. Higher-education sales were up 4% for the year. In the religious market, a 14% increase in fourth-quarter sales offset slow sales earlier in the year, bringing full-year growth to 3%, in line with expectations. Sales to the specialty trade market were up 2% in the fourth quarter, reversing the declines of previous quarters but still leaving full-year sales down 8% from a year earlier, as publishers and booksellers remained cautious. "Healthy demand for new elementary and high school textbooks played to our dramatically increased strength in four-color production," said Mr. Conway. "Our new press approached full utilization utilization, n 1. the extent to which a given group uses a particular service in a specified period. Although usually expressed as the number of services used per year per 100 or per 1000 persons eligible for the service, utilization rates may be within six months of installation, as customers allocated a growing share of their textbook business to Courier and were enthusiastic about the results. Our gains in market share required some pricing tradeoffs, but we are confident that those share gains will lead to greater long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. growth as federal funding and a strong textbook adoption schedule fuel an expected gathering wave of new textbook demand. In the specialty trade market, we made progress in the fourth quarter after three difficult quarters, though the market remains challenging. But overall, we remain confident that our combination of market knowledge, operating efficiency, disciplined investment and relentless focus on outstanding service will benefit customers, employees and shareholders alike." REA drives specialty publishing sales gain Courier's specialty publishing segment includes two businesses: Research & Education Association (REA) and 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. Overall, the segment reported fourth-quarter sales of $11.2 million, up 12% from $10.0 million in last year's fourth quarter due to the inclusion of REA sales. The segment's 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 $2.6 million or $.20 per diluted share for the quarter, up 8% from $2.4 million or $.19 per diluted share last year. For the full year, specialty publishing sales were $40.8 million, up 12% from $36.4 million in fiscal 2003, with most of the increase coming from REA. Full-year pretax income for the segment was $6.5 million, up 11% from $5.9 million a year earlier. REA sales were $1.5 million for the fourth quarter and $3.9 million for the year, yielding pretax income of $102,000 for the quarter and $170,000 or approximately $0.01 per diluted share for the year. Dover sales in the fourth quarter were $9.7 million, down 3% from $10.0 million a year earlier due to sluggish sales to U.S. retailers, particularly non-bookstore customers such as craft stores and gift shops. For the full year, Dover sales were up 1% to $36.9 million from $36.4 million in 2003. Direct-to-consumer sales were up 7% in the fourth quarter and 5% for the year, while international sales were flat in the quarter and up 9% for the year. Dover pretax income rose 4% in the fourth quarter to $2.5 million; for the full year, Dover pretax income was $6.3 million, up 8% from the prior year. Gross profit as a percentage of sales increased by 220 basis points, from 47.2% last year to 49.4% this year, reflecting efficiencies in warehousing and distribution as well as modest price increases. "REA's performance since we acquired it last January has been both 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. and promising," said Mr. Conway. "We continue to be impressed im·press 1 tr.v. im·pressed, im·press·ing, im·press·es 1. To affect strongly, often favorably: with REA's products, sales organization and reputation, and the company's integration into Courier has gone even more smoothly than we expected. At Dover, we have responded to a challenging sales environment with several steps including strengthening our sales and marketing organizations. We're we're Contraction of we are. we're we are focusing new product development on areas of demonstrated revenue potential, and rethinking product packaging in conjunction with retailers. Recent examples include stamp, magic and craft kits that build on last year's highly successful Origami The code name for Microsoft's Ultra-Mobile PC. See Ultra-Mobile PC. Fun Kits, the new Pictura Pic`tu´ra n. 1. (Zool.) Pattern of coloration. series of high-resolution high-res·o·lu·tion adj. 1. Relating to an image that has fine detail. 2. a. Of or relating to an output device that produces images that contain a large number of dots per unit of area and are therefore sharp and image books for design professionals, and targeted marketing programs such as a major outreach Outreach is an effort by an organization or group to connect its ideas or practices to the efforts of other organizations, groups, specific audiences or the general public. to teachers with a dedicated catalog catalog, descriptive list, on cards or in a book, of the contents of a library. Assurbanipal's library at Nineveh was cataloged on shelves of slate. The first known subject catalog was compiled by Callimachus at the Alexandrian Library in the 3d cent. B.C. , website and content matched to specific grade levels." Outlook for fiscal 2005 "The education market served us well across both of our operating segments in 2004," said Mr. Conway. "We look forward to building on that achievement in fiscal 2005 and beyond. In book manufacturing, demand for our new four-color press has already led us to order a second identical press for delivery late next year. As a result, we expect to extend our gains in both volume and market share as we head into what we believe will be a multi-year period of growth in four-color textbook publishing. In our specialty publishing segment, we expect Dover's stronger sales and marketing organizations and product focus to drive higher revenue growth, while REA moves forward vigorously vig·or·ous adj. 1. Strong, energetic, and active in mind or body; robust. See Synonyms at healthy. 2. Marked by or done with force and energy. See Synonyms at active. to capture additional opportunities in test preparation, career advancement A gift of money or property made by a person while alive to his or her child or other legally recognized heir, the value of which the person intends to be deducted from the child's or heir's eventual share in the estate after the giver's death. and teacher certification. "At the same time, we will continue to deliver the best service in the industry while maximizing operating efficiency throughout our business. We expect the result of these efforts to deliver another record year in 2005, with the majority of the growth again occurring in the second half. "For fiscal 2005 overall, we expect to achieve sales growth of 7% to 9%, resulting in total sales of between $226 and $231 million. We expect earnings per share to reach $2.75 to $2.90 for fiscal 2005. This represents an increase of between 10% and 16% from this year's earnings of $2.50 per diluted share." 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. 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, success in the integration of acquired businesses, 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, difficulties in the start up of new equipment, changes in copyright laws, changes in tax regulations, and general changes in economic conditions, including currency fluctuations and changes in interest rates. 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. 25, Sept. 27, Sept. 25, Sept. 27,
2004 2003 2004 2003
--------- ----------- --------- ----------
Net sales $59,208 $53,539 $211,179 $202,002
Cost of sales 39,143 34,103 142,609 134,630
--------- ----------- --------- ----------
Gross profit 20,065 19,436 68,570 67,372
Selling and
administrative expenses 8,414 8,730 37,292 37,794
Interest (income) expense 3 (14) (23) 52
Gain on real estate sale - - 250 -
--------- ----------- --------- ----------
Income before taxes 11,648 10,720 31,551 29,526
Provision for income taxes 4,065 3,757 11,011 10,254
--------- ----------- --------- ----------
Income from continuing
operations $7,583 $6,963 $20,540 $19,272
========= =========== ========= ==========
Discontinued operations,
net of tax - 52 - 848
--------- ----------- --------- ----------
Net income $7,583 $7,015 $20,540 $20,120
========= =========== ========= ==========
Income per diluted share
from:
Continuing operations $0.92 $0.85 $2.50 $2.37
Discontinued operations - 0.01 - 0.10
--------- ----------- --------- ----------
Net income per diluted
share $0.92 $0.86 $2.50 $2.48
========= =========== ========= ==========
Cash dividends declared
per share $0.0875 $0.075 $0.35 $0.30
========= =========== ========= ==========
Wtd. average diluted
shares outstanding 8,234 8,155 8,221 8,120
SEGMENT INFORMATION:
Net sales:
------------------------
Book Manufacturing $49,625 $45,330 $177,225 $171,858
Specialty Publishing 11,202 10,001 40,787 36,391
Intersegment sales (1,619) (1,792) (6,833) (6,247)
--------- ----------- --------- ----------
Total for continuing
operations $59,208 $53,539 $211,179 $202,002
Income before taxes:
------------------------
Book Manufacturing $9,104 $8,449 $25,186 $24,171
Specialty Publishing 2,592 2,398 6,475 5,855
Intersegment profit and
other (48) (127) (110) (500)
--------- ----------- --------- ----------
Total for continuing
operations $11,648 $10,720 $31,551 $29,526
Net income per diluted
share:
------------------------
Book Manufacturing $0.72 $0.67 $2.01 $1.95
Specialty Publishing 0.20 0.19 0.50 0.46
Intersegment profit and
other - (0.01) (0.01) (0.04)
--------- ----------- --------- ----------
Total for continuing
operations $0.92 $0.85 $2.50 $2.37
Shares outstanding and per share amounts have been retroactively
adjusted to reflect a three-for-two stock split effected on December
5, 2003.
COURIER CORPORATION
CONSOLIDATED CONDENSED BALANCE SHEETS (Unaudited)
(Dollars in thousands)
September 25, September 27,
ASSETS 2004 2003
------ -------------- --------------
Current assets:
Cash and cash equivalents $23,965 $23,824
Accounts receivable 34,072 29,174
Inventories 25,108 20,681
Deferred income taxes 2,852 3,164
Other current assets 585 830
-------------- --------------
Total current assets 86,582 77,673
Property, plant and equipment, net 48,482 43,342
Goodwill 33,255 24,847
Prepublication costs 5,127 3,810
Other assets 1,498 1,429
-------------- --------------
Total assets $174,944 $151,101
============== ==============
LIABILITIES AND STOCKHOLDERS' EQUITY
-------------------------------------
Current liabilities:
Current maturities of long-term debt $83 $81
Accounts payable 10,059 6,494
Accrued taxes 5,557 6,521
Other current liabilities 13,409 13,717
-------------- --------------
Total current liabilities 29,108 26,813
Long-term debt 510 593
Deferred income taxes 7,706 5,597
Other liabilities 2,630 2,678
-------------- --------------
Total liabilities 39,954 35,681
-------------- --------------
Total stockholders' equity 134,990 115,420
-------------- --------------
Total liabilities and
stockholders' equity $174,944 $151,101
============== ==============
COURIER CORPORATION
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Unaudited)
(Dollars in thousands)
For the Years Ended
----------------------------
September 25, September 27,
2004 2003
----------------------------
Operating Activities:
Net income $20,540 $20,120
Adjustments to reconcile net income to
cash provided from operating activities:
Depreciation and amortization 10,929 9,798
Deferred income taxes 2,471 938
Changes in working capital (4,736) 1,299
Gain on sale of assets (163) (913)
Other, net (707) (105)
----------------------------
Cash provided from operating activities 28,334 31,137
----------------------------
Investment Activities:
Capital expenditures (13,416) (10,885)
Prepublication costs (2,818) (2,232)
Business acquisition (11,850) -
Proceeds from sale of assets 1,664 1,500
----------------------------
Cash used for investment activities (26,420) (11,617)
----------------------------
Financing Activities:
Repayments of debt, net (83) (78)
Cash dividends (2,794) (2,354)
Proceeds from stock plans 1,104 1,106
----------------------------
Cash used for financing activities (1,773) (1,326)
----------------------------
Increase in cash and cash equivalents 141 18,194
Cash and cash equivalents at the beginning
of the period 23,824 5,630
----------------------------
Cash and cash equivalents at the end of
the period $23,965 $23,824
============================
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