Consolidated Graphics Reports Revenue Decline, Income Stability in Fourth Quarter
Joe R. Davis, Chairman and Chief Executive Officer of Consolidated Graphics, commented, "We are pleased with our performance in the December 2009 quarter in what continues to be a challenging environment. Even though quarterly same-store revenues declined 6.8% from last year, the rate of decline has slowed in each of the last three quarters as customer demand in many of our markets appears to have stabilized. During the quarter, we continued to focus on delivering an industry-leading offering that meets the changing needs of our customers, and on aggressively managing our costs, which ultimately allowed us to improve profitability over both the year ago and September 2009 quarters. We were able to achieve these results despite an $18 million decline in election-related business compared to the prior year quarter. Going forward, we will continue to monitor and appropriately manage our costs while at the same time investing in the future, building on our best-in-class capabilities and leveraging our advantages of technology, scale and financial strength to take advantage of the opportunities we see in the marketplace."
Davis added, "While the economy and our market appear to be stabilizing, it remains difficult to project our future revenues and earnings. Nevertheless, based on current market conditions, we expect the March quarter revenue to be in the range of $245 - $260 million representing same-store sales growth of up to 5%, excluding election-related revenue. This should allow us to achieve Adjusted Net Income growth in the March 2010 quarter compared to the prior year period."
A reconciliation of the non-GAAP financial measures, Adjusted EBITDA, Free Cash Flow, Adjusted Operating Income, Adjusted Operating Margin, Adjusted Net Income and Adjusted Diluted Earnings Per Share are included in the attached tables and in the Current Report on Form 8-K filed today. The Form 8-K also includes the basis for management's use of the non-GAAP financial measures.