Courier Corp. Reports Operating Results (10-K)
Courier Corporation has a market cap of $126 million; its shares were traded at around $11.29 with a P/E ratio of 11.8 and P/S ratio of 0.5. The dividend yield of Courier Corporation stocks is 7.6%.
Highlight of Business Operations:We derived approximately 55% and 53% of our fiscal 2012 and 2011 revenues, respectively, from two major customers. We expect similar concentrations in fiscal 2013. We do business with these customers on a purchase order basis and they are not bound to purchase at particular volume levels. As a result, any of these customers could determine to reduce their order volume with us, especially if our pricing is not deemed competitive. A significant reduction in order volumes from, or the loss of, either of these customers could have a material adverse effect on our results of operations and financial condition. In addition, our publishing segment is dependent on Amazon as a primary sales channel. Any change in pricing or order volume could have a material adverse effect on our results.
In our specialty publishing segment, sales to retailers and distributors are highly concentrated on a small group, which previously included Borders Group, Inc. (Borders). During fiscal 2011, we recorded a bad debt expense of $700,000 related to the Borders bankruptcy and liquidation. Sales to Borders for our publishing segment in fiscal 2011 declined $3.3 million compared to fiscal 2010. In addition, the Company experienced a 9% reduction in sales in the trade market of its book manufacturing segment in fiscal 2011 compared with the prior year.
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