Day Runner Predicts Dip in Earnings

Day Runner Inc. said Tuesday that it expects costs of two failed acquisition attempts to keep it from meeting analysts’ earnings expectations for its third quarter ending March 31.

The maker of paper-based organizers said the legal, advisory, accounting and miscellaneous costs associated with the failed merger attempts would cut third-quarter earnings by $1.5 million, or 13 cents a share. The company said it would have been able to write those costs off over time if it had completed the deals.

Analysts expect the company to earn 12 to 13 cents a share for the quarter, Day Runner said. For the third quarter a year ago, Day Runner reported net income of $745,000, or 11 cents a share, on sales of $18.1 million.

The company said it does expect sales growth for the quarter to surpass the 15% growth estimated by analysts. Day Runner said the higher sales stem from renewed growth in sales to Wal-Mart Stores Inc. and certain other large customers whose inventory tightening had hurt Day Runner’s second-quarter sales.