Courier Corporation Reports Strong Second Quarter - Sales, Earnings Up in Both Segments.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 results for the quarter ending March 25, 2006, the second quarter of its 2006 fiscal year. Helped by robust sales to the education market, the company reported $57.5 million in revenues for the quarter, up 8% from last year's second-quarter sales of $53.5 million. Net income for the quarter was $4.4 million, an increase of 15% over prior-year results of $3.8 million. Net income 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 was $.35, up 13% from $.31 in fiscal 2005. For the first six months of Courier's 2006 fiscal year, net income was $8.9 million or $.71 per diluted share, up 16% from $7.6 million or $.61 per diluted share for the first half of fiscal 2005. Six-month sales for fiscal 2006 were $115.2 million, up 10% from $104.8 million in the first half of last year. Second-quarter and six-month results include Moore Moore, city (1990 pop. 40,761), Cleveland co., central Okla., a suburb of Oklahoma City; inc. 1887. Its manufactures include lightning- and surge-protection equipment, packaging for foods, and auto parts. Langen Langen can refer to:
Both of the company's operating segments reported increased sales. Book manufacturing revenues for the quarter were up 9% on higher textbook textbook Informatics A treatise on a particular subject. See Bible. sales and the Moore Langen acquisition. Sales in Courier's specialty publishing segment were up 5%, reflecting gains at both of the segment's businesses, 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 and 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) ). "It was a quarter of significant accomplishments that sets the stage for further gains in the future," 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. "Our book manufacturing business continued to exploit the growth in textbook demand, with 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. sales up 33% and our second MAN Roland MAN Roland is a German sheetfed and web press manufacturer. MAN is an abbreviation for Maschinenfabrik Augsburg-Nürnberg (German: Machine Works of Augsburg and Nürnberg). Full company name: MAN Roland Druckmaschinen AG. press in full production mode. In specialty publishing, we had our second straight quarter of year-over-year revenue gains, as Dover continued to strengthen its sales operations and REA enjoyed excellent response to its growing line of titles in teacher certification and high-stakes testing A high-stakes test is an assessment which has important consequences for the test taker. If the examinee passes the test, then the examinee may receive significant benefits, such as a high school diploma or a license to practice law. . "Two other achievements are also worth noting. Moore Langen, acquired last October October: see month. , is now fully integrated into our book manufacturing segment and has performed very well. In addition, between a favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. sales mix sales mix See product mix. in book manufacturing and the effects of last year's warehouse consolidation projects in specialty publishing, we were able to overcome dramatic increases in utility costs and improve our operating margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: in both segments." Textbook sales drive sales drive n → promoción f de ventas sales drive n → campagne commerciale, animation f des ventes book manufacturing growth Courier's book manufacturing segment had second-quarter sales of $49.4 million, up 9% from last year's second 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. for the segment also rose 9% in the quarter to $6.3 million, versus $5.8 million in 2005. Earnings per share rose 10% to $.33 per diluted share, versus $.30 a year ago. Gross profit in the segment rose 11% to $13.2 million, increasing as a percentage of sales to 26.6% from 26.2% in 2005. For the first six months of the fiscal year, book manufacturing sales were up 11% to $97.7 million, with pretax income up 9% to $12.5 million. Gross profit through six months rose 12% to $26.7 million, also increasing as a percentage of sales to 27.4% from 27.0% in 2005. Increasing sales volume, a favorable mix of work and productivity gains overcame utility cost increases of approximately $600,000, or $.03 per diluted share, for the second quarter, and $1.1 million, or $.06 per diluted share, on a year -to-date basis. The book manufacturing segment focuses on three publishing markets: education, religion, and specialty trade. Sales to the education market rose 14% in the quarter and 14% year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. , primarily due to growth in four-color elementary and high school textbook sales. Sales to the religious market were down 2% for both the quarter and the first six months, reflecting a decision to discontinue dis·con·tin·ue v. dis·con·tin·ued, dis·con·tin·u·ing, dis·con·tin·ues v.tr. 1. To stop doing or providing (something); end or abandon: certain low-priced work. Sales to the specialty trade market were up 2% in the quarter, with six-month sales up 8% as a result of a few large one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. orders in the preceding quarter. "Textbook demand continued to drive healthy growth in our book manufacturing business," said Mr. Conway. "Fortunately, we were ready for it. Our second MAN Roland four-color press is producing excellent results. Our new McCain and Smyth Smyth , Dame Ethel Mary 1858-1944. British composer and writer whose March of the Women (1911) served as an anthem for the suffrage movement in England. sewing sewing: see needlework. systems also went into operation during the quarter, which opens new opportunities for even more elementary and high school textbook business. And we continue to invest in preparation for further growth. This summer we'll we'll Contraction of we will. we'll we will or we shall we'll will ~shall be expanding the bindery A NetWare file used for security and accounting in the early NetWare 2.x and 3.x versions. The bindery pertained only to the server it resided in and contained the names and passwords of users authorized to log in to that server. at our Kendallville, Indiana Kendallville is a city in Noble County, Indiana, United States. The population was 9,616 at the 2000 census. Geography Kendallville is located at (41.441750, -85.260475)GR1. plant, and later in the fall we'll be installing a third new MAN Roland four-color press. We are grateful to our publishing customers for their continued confidence in Courier's ability to deliver the quality, volume and service they need." Specialty publishing sales up at Dover and REA Courier's specialty publishing segment includes two businesses: Dover Publications, which publishes thousands of titles spanning a broad range of niche markets A niche market also known as a target market is a focused, targetable portion (subset) of a market sector. By definition, then, a business that focuses on a niche market is addressing a need for a product or service that is not being addressed by mainstream providers. , and Research & Education Association (REA), a publisher of test preparation books, CD-ROMs and study guides. Second-quarter sales for the segment were $10.3 million, up 5% from $9.7 million in last year's second quarter. Pretax income was $1.1 million or $.05 per diluted share for the quarter, up 32% from fiscal 2005. Gross profit was 47.7% of sales, up from 47.0% a year ago, reflecting cost reductions resulting from a warehouse consolidation completed last fall. For the first six months, specialty publishing sales were $21.2 million, up 6% from $20.0 million last year. Six-month pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta income for the segment was $2.1 million, up 15% from $1.9 million in fiscal 2005. Six-month net income was $.11 per diluted share, up 22% from $.09 per diluted share last year. "REA had an excellent quarter, and we are encouraged by the positive response to Dover's new trade sales and marketing programs," said Mr. Conway. "With the hiring of Jay Melton mel·ton n. A heavy woolen cloth used chiefly for making overcoats and hunting jackets. [After Melton Mowbray, an urban district of central England.] as vice president of Dover sales, we expect this momentum to accelerate. Jay's highly regarded skills and deep industry knowledge will be important assets as we continue to roll out innovative, effective ways to help retailers maximize their revenues from Dover content. Between state-of-the-art technology, more efficient distribution than ever and this reinvigorated re·in·vig·o·rate tr.v. re·in·vig·o·rat·ed, re·in·vig·o·rat·ing, re·in·vig·o·rates To give new life or energy to. re organization, we look forward to more sales growth through the remainder of 2006 and beyond." Outlook "Halfway through our fiscal year, we're we're Contraction of we are. we're we are pleased with our results and excited by our prospects for the rest of the year," said Mr. Conway. "Our book manufacturing business is producing outstanding work to meet escalating needs in key publishing markets. Our process management and customer service continue to set new standards, steadily raising the bar against our competition. Meanwhile, our publishing businesses are positioned to reap growing benefits from targeted product development, increasingly sophisticated marketing and the best service they've they've Contraction of they have. they've have ever offered. "For fiscal 2006 overall, we are maintaining our earlier guidance indicating sales growth of 14% to 16% (which includes the benefit of a 53-week year in fiscal 2006), resulting in total sales of between $258 and $263 million--a record high for Courier. We also continue to expect full-year net income per diluted share to be between $1.94 and $2.04. This range represents an increase of between 16% and 22% from fiscal 2005 earnings of $1.67 per diluted share, and would also set a new company record. As stated earlier, this guidance and prior-year comparison reflect our adoption of new stock option accounting rules under FAS 123(R), which are expected to reduce fiscal 2006 earnings by approximately $.06 per diluted share and will reduce fiscal year 2005 earnings by $.10 per diluted share." About Courier Corporation Courier Corporation prints, publishes 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 book manufacturing and specialty book publishing book publishing. The term publishing means, in the broadest sense, making something publicly known. Usually it refers to the issuing of printed materials, such as books, magazines, periodicals, and the like. . 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, consolidation among customers and competitors, success in the integration of acquired businesses, 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 or information technology systems, 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)
(In thousands, except per share amounts)
QUARTER ENDED SIX MONTHS ENDED
--------------------- -------------------
March 25, March 26, March 25, March 26,
2006 2005 2006 2005
---------- ---------- --------- ---------
Net sales $57,527 $53,495 $115,211 $104,764
Cost of sales 39,652 37,141 78,805 71,710
---------- ---------- --------- ---------
Gross profit 17,875 16,354 36,406 33,054
Selling and administrative
expenses 11,123 10,299 22,803 20,965
Interest income, net (100) (42) (248) (69)
---------- ---------- --------- ---------
Income before taxes 6,852 6,097 13,851 12,158
Provision for income taxes 2,459 2,272 4,971 4,531
---------- ---------- --------- ---------
Net income $4,393 $3,825 $8,880 $7,627
========== ========== ========= =========
Net income per diluted
share $0.35 $0.31 $0.71 $0.61
========== ========== ========= =========
Cash dividends paid per
share $0.12 $0.067 $0.24 $0.133
========== ========== ========= =========
Wtd. average diluted shares
outstanding 12,581 12,471 12,568 12,447
SEGMENT INFORMATION:
Net sales:
---------
Book Manufacturing $49,431 $45,278 $97,665 $88,201
Specialty Publishing 10,262 9,737 21,183 20,007
Intersegment sales (2,166) (1,520) (3,637) (3,444)
---------- ---------- --------- ---------
Total $57,527 $53,495 $115,211 $104,764
Income before taxes:
-------------------
Book Manufacturing $6,338 $5,834 $12,501 $11,462
Specialty Publishing 1,064 804 2,149 1,876
Stock based compensation (360) (473) (696) (940)
Intersegment profit (190) (68) (103) (240)
---------- ---------- --------- ---------
Total $6,852 $6,097 $13,851 $12,158
Net income per diluted share:
----------------------------
Book Manufacturing $0.33 $0.30 $0.65 $0.59
Specialty Publishing 0.05 0.04 0.11 0.09
Stock based compensation (0.02) (0.03) (0.04) (0.06)
Intersegment profit (0.01) - (0.01) (0.01)
---------- ---------- --------- ---------
Total $0.35 $0.31 $0.71 $0.61
Prior year shares outstanding and per share amounts have been
retroactively adjusted to reflect a three-for-two stock split
effected on May 27, 2005.
COURIER CORPORATION
CONSOLIDATED CONDENSED BALANCE SHEETS (Unaudited)
(Dollars in thousands)
March 25, September 24,
ASSETS 2006 2005
------ -------------- --------------
Current assets:
Cash and cash equivalents $14,302 $34,038
Accounts receivable 34,539 34,207
Inventories 29,318 25,451
Deferred income taxes 3,063 2,945
Other current assets 512 962
-------------- --------------
Total current assets 81,734 97,603
Property, plant and equipment, net 72,556 59,115
Goodwill 38,706 33,255
Prepublication costs 5,556 5,399
Other assets 1,716 1,593
-------------- --------------
Total assets $200,268 $196,965
============== ==============
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
Current liabilities:
Current maturities of long-term
debt $85 $85
Accounts payable 9,618 10,534
Accrued taxes 3,842 5,770
Other current liabilities 12,645 14,273
-------------- --------------
Total current liabilities 26,190 30,662
Long-term debt 383 425
Deferred income taxes 7,211 6,398
Other liabilities 2,796 3,020
-------------- --------------
Total liabilities 36,580 40,505
-------------- --------------
Total stockholders' equity 163,688 156,460
-------------- --------------
Total liabilities and
stockholders' equity $200,268 $196,965
============== ==============
COURIER CORPORATION
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Unaudited)
(Dollars in thousands)
For the Six Months Ended
-------------------------
March 25, March 26,
2006 2005
------------ ------------
Operating Activities:
Net income $8,880 $7,627
Adjustments to reconcile net income to
cash provided from operating activities:
Depreciation and amortization 7,101 5,935
Stock based compensation 696 939
Deferred income taxes 748 (112)
Changes in working capital (6,961) (4,045)
Other, net (339) (174)
------------ ------------
Cash provided from operating activities 10,125 10,170
------------ ------------
Investment Activities:
Capital expenditures (11,793) (7,933)
Business acquisition, net of cash
acquired (14,163) -
Prepublication costs (1,600) (1,442)
------------ ------------
Cash used for investment activities (27,556) (9,375)
------------ ------------
Financing Activities:
Repayments of debt, net (42) (41)
Cash dividends (2,958) (1,610)
Proceeds from stock plans 695 1,065
Excess tax benefits from stock based
compensation - 341
------------ ------------
Cash used for financing activities (2,305) (245)
------------ ------------
(Decrease) increase in cash and cash
equivalents (19,736) 550
Cash and cash equivalents at the beginning of
the period 34,038 23,965
------------ ------------
Cash and cash equivalents at the end of the
period $14,302 $24,515
============ ============
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