Wednesday, book manufacturer and specialty publisher Courier Corporation (CRRC) reported a surge in first quarter earnings helped by a 6% increase in revenues reflecting improvements in both of the company's business segments. The company also raised the lower end of its earnings outlook for fiscal 2010.
Net income for the quarter was $2.8 million, up from $0.7 million in the corresponding period last year. Earnings per share surged to $0.23 from $0.06 per share in the same period last year.
Quarterly revenues were $63.1 million, up 6% from last year's first-quarter sales of $59.6 million.
Book manufacturing segment first-quarter sales increased 8% to $54.8 million from $50.9 million in the corresponding period last year. The segment's operating income was $5.7 million, up 59% from $3.6 million a year ago. Courier's specialty publishing segment revenues were $11.6 million, up slightly from $11.5 million in the year-ago quarter.
Looking ahead, for 2010, Courier expects earnings to be between $0.75 and $1.00 per share. Previously, the company expected earnings for fiscal 2010 to be in the range of $0.70 to $1.00 per share. Total sales is currently expected to be between $255 million and $266 million compared with its earlier outlook in the range of $253 million to $268 million.
The company expects the forthcoming installation of digital printing technology, and the acquisition of Highcrest Media LLC, completed on January 15 to strengthen its capabilities in the highest-growth segment of the textbook market.
For the balance of the year, the company does not expect Highcrest to have an appreciable impact on its earnings; however, startup costs associated with the digital print operation will likely reduce 2010 income by between $0.05 and $0.10 per share. These costs have been factored into fiscal 2010 guidance, the company said.
Separately, Courier said its Board has declared a dividend of $0.21 per common share, payable February 26, to stockholders of record on February 12.
CRRC is currently trading at $14.25, up 7.30% on the Nasdaq.
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