In what is almost certainly its last quarterly report before its purchase by Donnelley is completed, Courier Corp. said that sales for the second quarter, ended March 28, 2015, were flat with the comparable period a year earlier, holding at about $60.5 million.
The net loss at Courier increased to $15.5 million, from $3.4 million in last year’s second quarter, due in large part to charges associated with the Donnelley purchase. Courier paid a $10 million termination fee to Quad/Graphics for calling off Quad’s proposed acquisition. Donnelley will reimburse Courier for the $10 million after the deal is concluded. Courier has called a special shareholders meeting for June 5 to vote on the proposal.
From an operating standpoint, sales in Courier's manufacturing segment dipped slightly from $55.4 million to $55.2 million as sales to the religion market offset declines in sales to the education and trade markets.
Sales in the publishing division fell 7%, to $7.5 million. Publishing’s operating loss in the quarter was $141,000, compared to $211,000 last year.
Despite the second quarter loss, the publishing segment remained modestly profitable for the first half of the year, Courier said, with income of $117,000, versus a loss of $201,000 in the first half of last year.
Major factors driving the results included previous cost containment measures, and the growing success of Dover’s Creative Haven line of adult coloring books. Dover entered the coloring book category in 2013 and is now offering dozens of titles for purposes ranging from entertainment to patient therapy. Sales in the category doubled in the first six months of fiscal 2015, Courier reported.