By Trevor Shackelford December 8, 2006 -- Courier Corporation (NASDAQ: CRRC) announced record results for the fiscal 2006, including double-digit growth in sales, net income and earnings per share. Revenues for the fourth quarter were $83.4 million, up 31.3%, from $63.5 million in the year-ago quarter. Net income for the fourth quarter was $13.4 million, up 74%, from $7.7 million in the same quarter a year ago. Net income per diluted share was $1.07, up 75.4%, from $0.61 in the fourth quarter of 2005. Courier's revenues for fiscal year 2006 were $269.0 million, up 19%, from $227.0 million in fiscal 2005. Net income was $28.4 million, up 36%, from $20.8 million in fiscal year 2005. Contents of this Summary • Quarter Highlights • Segment Performance • Guidance • Raine Radar Quarter Highlights • Net income for the quarter was $13.4 million or $1.07 per diluted share. Without the effects of the tax accrual reversal, net income was $9.6 million or $0.76 per diluted share, an increase of 25% from $7.7 million or $0.61 per diluted share in fiscal 2005's fourth quarter. • In fiscal 2006, Courier's EBITDA was $53.2 million, up 21% from 2005. • SG&A expense in the fourth quarter was $14.7 million compared to $10.9 million in the year ago quarter. • Dover Publications sales were up 33% to $11.5 million in the fourth quarter; for the full year, they were up 12% to $39.0 million, with trade sales increasing by 17% and international sales up 16%. REA sales rose 24% in the fourth quarter and 20% for the year. • The company's 2006 effective tax rate for the fourth quarter and full year reflects a reduction in its income tax expense by $3.8 million, or $0.30 per share. Segment Performance Book Manufacturing Segment The segment had fourth quarter sales of $64.8 million, up 18%, compared to $54.8 million in the fourth quarter last year. Pretax earnings for the segment rose 10% in the fourth quarter to $12.4 million or $0.64 per diluted share versus $11.2 million or $0.59 per diluted share in 2005. For the full year, book manufacturing sales were $220.1 million, up 14%, from $193.6 million in fiscal 2005. Pretax earnings for the year were $33.6 million or $1.73 per diluted share, an increase of 8% from last year's $31.1 million or $1.62 per diluted share. Gross profit as a percentage of the year's sales was 28.7%, down slightly from 29.5% in 2005, reflecting $1.8 million in utility cost increases as well as a competitive environment. Specialty Publishing Segment The segment reported fourth quarter sales of $21.1 million, up 104.3%, compared to $10.3 million in the same quarter a year ago. The segment's pretax income was $2.9 million or $0.14 per diluted share for the quarter, compared to $1.3 million or $0.06 per diluted share for the same quarter last year, with more than 90% of the growth resulting from improved performance at Dover. For the full year, specialty publishing sales were $57.5 million, up 43%, from $40.3 million in fiscal 2005. Full-year pretax income for the segment was $6.1 million, up 58% from $3.9 million a year earlier. Dover sales were up 33% to $11.5 million in the fourth quarter; for the full year, they were up 12% to $39.0 million, with trade sales increasing by 17% and international sales up 16%. REA sales rose 24% in the fourth quarter and 20% for the year. Guidance Guidance was offered for fiscal year 2007. The company expects to achieve sales growth of 13% to 16%, resulting in total sales of between $304 and $311 million, which would be a new record high for Courier. They expect earnings per share to grow as well, reaching $2.20 to $2.30 for fiscal 2007. Raine Radar Courier had a very successful year in 2006 with the realization of renewed growth at Dover Publications, the largest publishing business. Dover trade sales were up 17% for the year and pretax profits were up 55%. Courier is also taking advantage of a strong education market, and book manufacturing acquisitions have brought the company a greatly increased capacity and more capabilities in book cover production. Courier has financially and strategically set itself up to be an industry leader in 2007.