Courier Reports Second Quarter Fiscal 2001 Results
Press release from the issuing company
NORTH CHELMSFORD, Mass., April 19 Courier Corporation (Nasdaq: CRRC), a leading book manufacturer and specialty publisher, today announced that net income for the second quarter of fiscal 2001 ended March 31, 2001 was $2.1 million, or $0.62 per diluted share, compared with $2.4 million, or $0.70 per diluted share, for the same period last year. Revenue for the second quarter increased 10% to $49.0 million from $44.5 million for the second quarter of fiscal 2000.
For the six months ended March 31, 2001, Courier reported net income of $5.1 million, or $1.48 per diluted share, compared with $4.5 million, or $1.35 per diluted share last year. Included in results for the first half of fiscal 2001 is an after-tax gain of $550,000, or $.16 per diluted share, for the sale of real estate. Revenue for the six-month period rose 14% to $102.3 million from $89.6 million for the prior year's period. Results for both periods include Dover Publications, Inc., a publishing house Courier acquired in September 2000.
Results at a Glance
Second quarter fiscal 2001
Sales of $49.0 million, up 10%
Net income of $2.1 million compared to $2.4 million
EPS of $.62 versus $.70 last year
Earnings include gain of $.06 per diluted share from the sale of The Home School
First half of fiscal 2001
Record sales of $102.3 million, up 14%
Net income of $5.1 million versus $4.5 million
EPS of $1.48 compared with $1.35 last year
Earnings include real estate gain of $.16 per diluted share
Specialty Publishing Segment Results
The company's newly formed specialty publishing segment, which is comprised of Dover Publications, Inc., delivered sales of $6.8 million and $15.3 million for the second quarter and first half of fiscal 2001, respectively. As expected, the segment reported a second quarter loss of approximately $200,000, or $.06 per diluted share, after goodwill amortization and interest expense. For the first half of the year Dover broke even after goodwill and interest.
Dover sales for the quarter reflected seasonal trends, said James F. Conway III, Chairman and Chief Executive Officer. He reiterated that he expects Dover to have a neutral to small accretive impact on overall Courier results in fiscal 2001. "Beyond fiscal 2001, Dover margins should increase as we begin to realize the benefits of our vertical integration strategy and our newly launched website. We are intent on growing sales for this unit at double digit rates."
Conway added he was extremely pleased with the success of the launch on March 8th of Dover's e-commerce site (www.doverpublications.com). "The early response from Dover's loyal customer base has been terrific. We're getting letters from delighted customers every day. After only 40 days, more than 100,000 readers have visited the site, buying more than 30,000 books at full retail price."
Book Manufacturing Segment Results
Book manufacturing segment sales declined 3% for the quarter to $42.7 million. Net income for the second quarter of fiscal 2001 was $2.4 million, or $0.70 per diluted share, down from $2.8 million, or $0.84 per diluted share for the same period last year. Segment sales for the first half of fiscal 2001 totaled $87.9 million, with net income of $4.9 million, or $1.43 per diluted share, versus sales of $88.7 million and net income of $5.5 million, or $1.64 per diluted share, for the corresponding 2000 period.
Conway was optimistic regarding the rest of the fiscal year. "We have already seen an uptick in business for the current quarter and as we enter our busiest season of the year we are confident that we can achieve top-line growth for the year of 15%-18% and earnings per share growth of 8%-14%, excluding the first quarter's real estate gain." Conway said Courier is targeting fiscal 2001 revenue of $218 million to $222 million, and earnings per share in the range of $3.40 to $3.60, excluding the real estate gain.
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