Courier Corp F4Q08 (Qtr End 09/27/08) Earnings Call Transcript

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2008-11-24 11:42:10.0

Tags: Revenue, Call Transcript, Equipment, Earnings, Workforce Management, Taxes, Recruitment & Selection, Operational Accounting, Free Trade, Payroll Solutions, Human Resources, Financial Planning, Finance, Seeking Alpha, Courier Corp.

Question-and-Answer Session

Operator

(Operator Instructions). Your first question comes from the line of Jamie Clement with Sidoti. Please proceed.

Jamie Clement - Sidoti

Hey Good afternoon gentlemen.

Bob Story

Hey Jamie, how are you?

Jamie Clement - Sidoti

Good, thanks, Jim let me -- just first let me ask you a question about the religious business, and then on to education. With the facility upgrade, that you all have performed here, I know you've sort of, you discussed the revenue picture looking forward, but was there a kind of operating costs that you also had during fiscal 2008, particularly maybe earlier in the year, associated with upgrading those facilities, whether by training or whatever that kind of come out this year?

James Conway

There was some training. But the workforce there, has been a long term workforce Jamie. So the equipment upgrades, there is always a bit of a startup curve. But I'd have to say we are very pleased with the way the equipment started up.

Jamie Clement - Sidoti

Okay. And just is the way you have that facility set up right now, I mean, I assume that this is a more efficient setup and could we assume, and I know you don’t report these sorts of things. But, I mean is your expectation that margins from your religious business going forward will be enhanced over what they have been over the last couple of years?

James Conway

Somewhat Jamie. I can just tell you that the efficiency of the equipment is everything we had hoped for and expected. It’s running well and it’s now completely installed. So we'll get full benefit from the new equipments throughout 2009.

Jamie Clement - Sidoti

Okay. Thank you. And just moving on to education, Jim. It’s kind of an uncertain time from a state tax revenue perspective and El, that stuff. How much visibility do you guys have into 2009? And I guess another way of sort of asking that question is, you know, I would have thought that may be, you know, the past couple of months may have been okay. But that the trouble could be sort of the horizon next year. It sounds as if, you know, maybe, you already encountered a little of that weakness? So can you just sort of comment on the educational outlook and how much visibility you have.

James Conway

Sure. And Jamie, when you talk about the education market, you want to take it in two bites.

 

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