Courier Corp. Upbeat Despite Slow Start
by Jim Milliot -- Publishers Weekly, 1/26/2004
Despite a disappointing first quarter that ended December 27, executives at Courier Corp. still expect the printer/publisher to post good gains for the full year. Total revenue in the quarter fell 4.1%, to $46.8 million, while income from continuing operations rose 4.4%, to $3.9 million.
The company's weak spot in the quarter was its book manufacturing segment, where sales fell 5%, to $39.7 million. Sales at Dover Publications rose 8%, to $9.1 million. In the printing segment, sales inched up 1% in the religion market as strong demand for Bibles offset weakness in the book market. Educational sales fell 3% with small declines occurring in both the elhi and college markets. Sales to the trade market declined 9%, which the company attributed to cautious ordering by publishers.
At Dover, sales were up through most channels, including a 7% gain to retailers led by higher sales to the bookstore chains. International sales rose 29%, with sales especially strong in Canada and the U.K. Direct-to-consumer sales recovered from a slow start to rise 2% in the period, including a 15% increase from sales through its Web site.
Courier chairman James Conway pointed to several reasons for optimism about the balance of the year. Business in the educational printing segment in the second quarter is "well ahead" of last year, Conway said, and the company has added five new customers in its religion segment. In addition, Courier's new four-color press is expected to go online this spring. At Dover, the company has just released its 337-title spring list, and the recent purchase of Research Education Association is projected to add $4 million in sales.
Total revenue for the year is expected to range between $216 million and $221 million, an increase of 7% to 9%; earnings per share is projected to rise between 8% and 13%.
