Courier Corp. (CRRC, Financial) filed Quarterly Report for the period ended 2010-12-25.
Courier Corp has a market cap of $172.4 million; its shares were traded at around $14.3 with a P/E ratio of 18.8 and P/S ratio of 0.7. The dividend yield of Courier Corp stocks is 5.9%.Hedge Fund Gurus that owns CRRC: Jim Simons of Renaissance Technologies LLC. Mutual Fund and Other Gurus that owns CRRC: Chuck Royce of Royce& Associates.
The operating loss for the specialty publishing segment for the first quarter was $0.8 million, compared to an operating loss of $0.5 million in last years first quarter, reflecting the impact of the lower sales at Dover and REA. Creative Homeowners operating loss in the quarter was $0.7 million, an improvement of $0.5 million compared to the first three months of last year.
Interest expense, net of interest income, was $203,000 in the first quarter of fiscal 2011, compared to $118,000 of net interest expense in the first three months of last year. Average debt under the revolving credit facility in the first quarter of fiscal 2011 was approximately $20.7 million at an average annual interest rate of 0.8%, generating interest expense of approximately $39,000. Average debt under the revolving credit facility in the first quarter of last year was approximately $11.9 million at an average annual interest rate of 0.7%, generating interest expense of approximately $22,000. Interest expense also includes commitment fees and other costs associated with maintaining the Companys $100 million revolving credit facility. In addition, the Company entered into a four-year term loan in March 2010 providing up to $8 million to finance the purchase of digital print assets. At December 25, 2010, $6.1 million was borrowed under this term loan, which added $53,000 of interest expense in the first quarter. Interest capitalized in the first quarter of fiscal 2011 was approximately $26,000; no interest was capitalized in the first three months of fiscal 2010.
During the first three months of fiscal 2011, operations provided $4.4 million of cash, compared to $9.1 million in the first quarter of last year. Net income was $1.7 million and depreciation and amortization were $5.4 million. An increase in working capital used $2.3 million of cash in the first quarter of fiscal 2011.
Investment activities in the first quarter of fiscal 2011 used $5.0 million of cash. Capital expenditures were $3.8 million, primarily related to the Companys investment in a second HP digital inkjet press at its North Chelmsford, Massachusetts facility and its fourth four-color manroland press at the Kendallville, Indiana facility. For the entire fiscal year, capital expenditures are expected to be approximately $23 to $25 million, including installation of a third HP digital inkjet press scheduled for the third quarter. Prepublication costs were $1.1 million, comparable to the first three months of last year. For the full fiscal year, prepublication costs are projected to be approximately $4 million.
Financing activities for the first three months of fiscal 2011 provided approximately $0.6 million of cash. Cash dividends of $2.5 million were paid and borrowings increased by $3.2 million during the first quarter of fiscal 2011. At December 25, 2010, borrowings under a term loan used to finance the purchase of the Companys new digital print assets were $6.1 million, with $2.5 million at a fixed annual interest rate of 3.9% and $3.6 million at a fixed annual interest rate of 3.6%. The Company also has a $100 million long-term revolving credit facility in place under which the Company can borrow at a rate not to exceed LIBOR plus 1.5%. At December 25, 2010, the Company had $20.7 million in borrowings under this facility at an interest rate of 0.8%. The revolving credit facility, which matures in 2013, contains restrictive covenants including provisions relating to the maintenance of working capital, the incurrence of additional indebtedness and a quarterly test of EBITDA to debt service. The Company was in compliance with all such covenants at December 25, 2010. The facility also provides for a commitment fee not to exceed 3/8% per annum on the unused portion. The revolving credit facility is used by the Company for both its long-term and short-term financing needs. The Company believes that its cash on hand, cash from operations and the available credit facility will be sufficient to meet its cash requirements through 2011.
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Courier Corp has a market cap of $172.4 million; its shares were traded at around $14.3 with a P/E ratio of 18.8 and P/S ratio of 0.7. The dividend yield of Courier Corp stocks is 5.9%.Hedge Fund Gurus that owns CRRC: Jim Simons of Renaissance Technologies LLC. Mutual Fund and Other Gurus that owns CRRC: Chuck Royce of Royce& Associates.
Highlight of Business Operations:
The Companys specialty publishing segment reported first quarter sales of $10.8 million, down 7% from last years first quarter. Sales were down 3% at Dover to $8.2 million while sales at REA decreased 31% to $1.3 million compared to last years first quarter. The decline in REAs sales reflects an exceptionally strong first quarter in the prior year due to both a major product launch and a chain-wide merchandising order at a large nationwide bookseller. Retail sell-through of REAs products was up in the first quarter of fiscal 2011. Sales at Creative Homeowner grew 7% to $1.3 million, reflecting improving home-center book sales.The operating loss for the specialty publishing segment for the first quarter was $0.8 million, compared to an operating loss of $0.5 million in last years first quarter, reflecting the impact of the lower sales at Dover and REA. Creative Homeowners operating loss in the quarter was $0.7 million, an improvement of $0.5 million compared to the first three months of last year.
Interest expense, net of interest income, was $203,000 in the first quarter of fiscal 2011, compared to $118,000 of net interest expense in the first three months of last year. Average debt under the revolving credit facility in the first quarter of fiscal 2011 was approximately $20.7 million at an average annual interest rate of 0.8%, generating interest expense of approximately $39,000. Average debt under the revolving credit facility in the first quarter of last year was approximately $11.9 million at an average annual interest rate of 0.7%, generating interest expense of approximately $22,000. Interest expense also includes commitment fees and other costs associated with maintaining the Companys $100 million revolving credit facility. In addition, the Company entered into a four-year term loan in March 2010 providing up to $8 million to finance the purchase of digital print assets. At December 25, 2010, $6.1 million was borrowed under this term loan, which added $53,000 of interest expense in the first quarter. Interest capitalized in the first quarter of fiscal 2011 was approximately $26,000; no interest was capitalized in the first three months of fiscal 2010.
During the first three months of fiscal 2011, operations provided $4.4 million of cash, compared to $9.1 million in the first quarter of last year. Net income was $1.7 million and depreciation and amortization were $5.4 million. An increase in working capital used $2.3 million of cash in the first quarter of fiscal 2011.
Investment activities in the first quarter of fiscal 2011 used $5.0 million of cash. Capital expenditures were $3.8 million, primarily related to the Companys investment in a second HP digital inkjet press at its North Chelmsford, Massachusetts facility and its fourth four-color manroland press at the Kendallville, Indiana facility. For the entire fiscal year, capital expenditures are expected to be approximately $23 to $25 million, including installation of a third HP digital inkjet press scheduled for the third quarter. Prepublication costs were $1.1 million, comparable to the first three months of last year. For the full fiscal year, prepublication costs are projected to be approximately $4 million.
Financing activities for the first three months of fiscal 2011 provided approximately $0.6 million of cash. Cash dividends of $2.5 million were paid and borrowings increased by $3.2 million during the first quarter of fiscal 2011. At December 25, 2010, borrowings under a term loan used to finance the purchase of the Companys new digital print assets were $6.1 million, with $2.5 million at a fixed annual interest rate of 3.9% and $3.6 million at a fixed annual interest rate of 3.6%. The Company also has a $100 million long-term revolving credit facility in place under which the Company can borrow at a rate not to exceed LIBOR plus 1.5%. At December 25, 2010, the Company had $20.7 million in borrowings under this facility at an interest rate of 0.8%. The revolving credit facility, which matures in 2013, contains restrictive covenants including provisions relating to the maintenance of working capital, the incurrence of additional indebtedness and a quarterly test of EBITDA to debt service. The Company was in compliance with all such covenants at December 25, 2010. The facility also provides for a commitment fee not to exceed 3/8% per annum on the unused portion. The revolving credit facility is used by the Company for both its long-term and short-term financing needs. The Company believes that its cash on hand, cash from operations and the available credit facility will be sufficient to meet its cash requirements through 2011.
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