Boosted by a 20% increase in sales and 55% jump in earnings from continuing operations in the fourth quarter, Thomas Nelson reported that revenue for the fiscal year ended March 31 rose 1%, to $217.2 million, and income from continuing operations increased 30.7%, to $10.2 million. Nelson chairman Sam Moore said he was "very gratified" with the results since "the business environment continues to be weak and in many areas really sucks." The company's bottom line also took a $1.2 million hit due to the bankruptcy of Sher Distributing.
Moore told analysts in a conference call that he believes the strong fourth quarter "illustrates that our strategy is taking effect." During the fiscal year, Nelson began cutting back on the number of titles it publishes to put more resources behind the books it does release. The company also reduced overhead expenses by eliminating about 45 positions, although it added about 10 jobs in the sales area.
The fourth quarter also saw the release of The Savage Nation, which contributed $5 million to sales in the period. Moore said the WND imprint, under which Nation was released, is an important part of Nelson's strategy to increase its penetration at mainstream bookstores and mass merchandisers. Nelson remains committed to the Christian marketplace, Moore said, but it is looking to generate a larger portion of its sales from the general market. Sales to non-CBA markets rose 5% last year.
Moore was cautious about prospects for fiscal 2004, predicting only that he is optimistic that Nelson will have gains in sales and profits in the year.
