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Courier Corporation (CRRC)
Q2 2010 Earnings Call
April 22, 2010 2:30 pm ET
James Conway – President & CEO
Peter Folger – SVP & CFO
Robert Story – EVP & COO
James Clement – Sidoti & Company
Previous Statements by CRRC
» Courier Corporation F1Q09 (Quarter End 12/27/08) Earnings Call Transcript
» Courier Corp F4Q08 (Qtr End 09/27/08) Earnings Call Transcript
» Courier Corp. F3Q08 (Qtr End 06/28/08) Earnings Call Transcript
Good afternoon, and welcome to Courier Corporation’s second quarter earnings conference call. I’m James Conway, Chairman and Chief Executive Officer. Thank you for joining us.
We released earnings earlier this morning. I hope you have all had a chance to see the results. We had a solid quarter with both segments profitable and net income up over last year. In book manufacturing, our four-color sales continued to grow and in fact, we have just ordered our fourth big [Manrollin] press for our plant in Kendallville, Indiana, even as we completed the installation of a new digital print facility here in Massachusetts.
In book publishing Research & Education Association, REA, had a terrific quarter and while Creative Homeowner sales were down, its reduced cost structure helped Creative trim its operating loss sharply from the previous quarter.
Courier’s Chief Operating Officer, Robert Story, is here with me today. And Peter Folger, Courier’s Chief Financial Officer is also here with us. Robert will begin with an overview of financial results for the second quarter and the first half of fiscal year 2010. I’ll then discuss the key issues driving our business.
I will also provide guidance on what to expect for the full fiscal year. Robert please go ahead.
Thank you James, before I begin, I should point out three things. First, effective with this call we are moving to a slightly different format for our quarterly conference calls. In the past I’ve used my portion of the call to guide you through our financial performance in extensive detail including detailed profit and loss information on each of our business segments. We now include detailed segment financial statements in the tables at the end of our press release. And as we mentioned last quarter we shifted the timing of our earnings release and conference call back a week, to more closely match the timing of filing of our Form 10-K with the Securities and Exchange Commission.
Our 10-Q filing early next week will contain detailed disclosure about each of our business segments so I won’t repeat all that information here. Instead I’ll be providing some brief highlights of our performance from my perspective so that we can then move on relatively quickly to James’ perspective on our strategy and direction.
This brings me to my second point which is our traditional reminder that during this call we may make forward-looking statements relating to the company’s financial goals and business environment. Actual results may differ materially. Information about factors that could potentially impact our financial results are included in today’s press release and in our filings with the SEC including our 2009 Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q.
We encourage you to review those factors in conjunction with any forward-looking statements we make today. During this call we will discuss certain non-GAAP financial measures including EBITDA. You will find additional disclosures regarding these non-GAAP measures in our press release including reconciliations of these measures with comparable GAAP measures. These non-GAAP measures should be considered in addition to, not as a substitute for, or superior to, GAAP financial measures.
Also during this call whenever we refer to earnings per share it will be on a diluted basis. Finally one other note about my comments today, as James said in his opening remarks we had a good quarter with some of our gains attributable to the cost reduction steps we took in last year’s second quarter as reflected in the restructuring and impairment charges that resulted in a net loss for that quarter.
But even if we take those charges out of the equation, we still did better this time with earnings of $0.12 per share in this year’s second quarter as compared to $0.10 per share in 2009. And so in the next few minutes in order to give you the most accurate comparison of how our business has performed this year versus last year, I’ll be excluding those charges from last year unless I specifically mention them.
Now let’s talk about the results, you may recall we had a very solid first quarter with strong performance across most all businesses, and earnings up sharply. In the second quarter some of our markets that did well in the fall, softened. As a result our second quarter sales were down slightly compared to a year ago.
Yet despite lower sales we were able to produce another quarter of earnings growth with earnings per share up 20% over last year. Sales in the second quarter were $59 million, down 1% from last year with net income of $1.4 million or $0.12 per share versus $1.2 million or $0.10 per share last year on a comparable basis.
For the first half of the year sales were $122 million, up 3% with net income of $4.2 million or $0.35 per share, more than double last year’s comparable first half income of $2 million or $0.17 per share. EBITDA in the first half was $17 million, up 23% over last year’s comparable figure of $14 million.