A group of titles launch ‘Deliver My Newspaper’

Sales increased 20% to $433.6 million, compared to $362.6 million during the same period last year. Gross profit increased 7% to $222.4 million, or 51.3% of sales, compared to $207.0 million, or 57.1% of sales, in the third quarter of 2021. Selling, general, and administrative (“SG&A”) expenses increased 11% to $153.9 million, compared to $138.3 million in the third quarter of 2021. Operating income decreased slightly to $68.5 million, or 15.8% of sales, compared to $68.7 million, or 19.0% of sales during the prior year quarter. Net income decreased 14% to $45.5 million, or 10.5% of sales, compared to $53.0 million, or 14.6% of sales in the prior year quarter; Net income per diluted share decreased 13% to $0.52, compared to $0.60 per diluted share in the prior year quarter.

A BISG webinar held in early July sought to draw attention to the growing challenges in the book industry’s supply chain. Panelists pointed to shortages of truck drivers and trailers, congestion at the ports, and escalating transportation costs as factors that, in the words of David Hetherington, Book International’s v-p of global business development, were putting more pressure on the supply chain than at any time he could remember. In the ensuing two months, things have gotten worse, as printing capacity continues to shrink and labor shortages have made it difficult for printers, retailers, and wholesalers to fully staff their businesses. Concerns have risen to such a level that the two biggest trade wholesalers, Ingram and Bookazine, have reached out to their accounts to urge them to take a range of actions to try to mitigate problems, informing them of steps they should take to be better positioned to meet the needs of the fall and holiday. Top of the recommendation list from both Ingram and Bookazine is for accounts to order as early as possible.

The Association of American Publishers (AAP) today released its StatShot report for September 2023 reflecting reported revenue for Trade (Consumer Books), Higher Education Course Materials, and Professional Publishing. Total revenues across all categories for September 2023 were flat as compared to September 2022, coming in at $1.4 billion. Year-to-date revenues were up 0.8%, at $9.4 billion for the first nine months of the year. Trade (Consumer Books) revenues were down 0.4% in September, coming in at $905.9 million. In terms of physical paper format revenues during the month of September, in the Trade (Consumer Books) category, Hardback revenues were up 7.2%, coming in at $379.2 million; Paperbacks were down 4.9%, with $299.1 million in revenue; Mass Market was down 39.5% to $11.3 million; and Special Bindings were up 11.8%, with $27.1 million in revenue.