|
| Net
income in 1999 jumped 27% to $8.4 million or $2.52 per diluted
share compared to $6.6 million or $2.03 per diluted share last
year (excluding a one-time gain of $1.1 million or $.34 per diluted
share in 1998 from the sale of real estate). Sales reached $164
million in 1999, up 8% over 1998. Over the course of this decade, we have transformed Courier from a company that was underperforming our industry to one that consistently outperforms it. Today, we're the nation's fifth largest book manufacturer and one of its most profitable. We've also transformed Courier from a company whose only business was book manufacturing to a company that is also engaged in custom publishing, direct marketing, and e-commerce. Through our new businesses, we have developed these additional competencies, which will be of immense importance in the next decade as the pace of change accelerates. This report looks at the strategies that brought us from where we were at the beginning of the decade to where we are today. These strategies emerged from an intensive planning process launched in 1993, when we looked hard at what we were doing and disciplined ourselves to make pivotal choices. We scrutinized the markets we were competing in, the customers we were serving, and what we were doing for them. We identified the growth markets where we could be the best and sought out customers who would value us most. The markets Courier chose to focus on–religion, education, and specialized publishing–have grown at a much faster pace than the publishing industry overall. Moreover, they are driven by social megatrends that we believe will keep them vital, both in print and other media, well into the next century. Focusing on a few strong markets has enabled Courier to look beyond book manufacturing to surprising opportunities we might otherwise not have recognized. In both the college coursepack and homeschooling markets student needs were being unmet or only partially satisfied. To capitalize on these opportunities, we acquired and developed new businesses, Copyright Management Services ("CMS") and The Home School. While these businesses address markets with potential for dynamic growth, the most important thing about them is that they've given us the opportunity to learn how to sell directly to niche markets. As we approach the new millennium, Courier is a company that can no longer be defined simply as "book manufacturer." Yet we do have a clearly defined and easily stated mission: Our job is to enhance and accelerate the process of getting books and information from the point of creation to the point of use. How we do it varies and will become even more variable in the future. The truth is that the process of getting books from publishers to readers will change far more in the next 10 years than it has since the days of Gutenberg, nearly 600 years ago. Recent changes have been concentrated on how books are bought and sold. Looking ahead, there will be more changes which will streamline further the way books are brought to the point of sale. These changes will bring more benefits to readers and create more opportunities for Courier. And books, in all their permutations, will continue to be a great business to be in. I look back on 1999 with gratitude to the shareholders, customers, and employees who have helped make this year an extraordinary one for Courier. I look forward to the coming year with great excitement about what's next.  James F. Conway, III Chairman, President and Chief Executive Officer |