Consolidated Graphics Posts Lower Income on Revenue Increase

HOUSTON—Nov. 2, 2011—Consolidated Graphics announced financial results for its quarter ended Sept. 30, 2011.

• Revenue for the quarter increased $7.3 million, or 2.8 percent, to $267.4 million, compared to the prior year quarter. The increase was due to growth in same-store sales of 1.7 percent and acquisitions, partially offset by a decline in election-related business.

• Adjusted operating income for the quarter was $15.2 million, or 5.7 percent of revenue, compared to $17.0 million, or 6.5 percent, of revenue last year.

• Adjusted net income was $8.3 million, vs. $9.0 million for the prior-year quarter.

• Operating income was $13.9 million for the September 2011 quarter and included $.6 million in charges. Operating income for the September 2010 quarter totaled $15.4 million and included $.7 million in charges primarily related to lease termination expenses and certain asset impairments.

• Net income for the September 2011 quarter was $7.5 million, compared to $8.1 million last year.

Joe R. Davis, chairman and CEO of Consolidated Graphics, commented, “Considering the fact that we are in a non-election year, the results for the September quarter compare favorably to the prior quarter. Growth in our technology business, including digital print, and acquisitions contributed to the results.”

Davis concluded, “Based on current market conditions and the usual seasonal improvements, we expect the December quarter’s revenue to be in the range of $297 – $310 million which assumes year-over-year same-store sales growth of up to 5 percent, as well as incremental revenue from current year acquisitions, offset by the impact of lower election-related business.

“We expect Adjusted Diluted Earnings Per Share in the December 2011 quarter will improve compared to the prior year, excluding the impact of lower election-related business. We estimate that lower election-related business in the December quarter will have a negative $.22 – $.25 per diluted share impact, compared to the prior year.”

Share Repurchase Program Update

The company is authorized to purchase up to an aggregate of $100 million of the company’s common shares pursuant to a share repurchase program that expires March 31, 2013. During the quarter, the company purchased 520,436 shares of its common stock for $18.9 million pursuant to its share repurchase program. Since beginning the share repurchase program in November 2010, the company has purchased 1,292,093 shares of its common stock (11.0 percent of shares outstanding) for $58.2 million, leaving $41.8 million available under the repurchase program. As of September 30, 2011 the company had 10,434,284 common shares outstanding.

About Consolidated Graphics
Consolidated Graphics, Inc. (CGX), headquartered in Houston, is one of North America’s leading general commercial printing companies. With 70 printing businesses strategically located across 27 states, Toronto, and Prague, and a presence in Asia, CGX offers an unmatched geographic footprint, unsurpassed capabilities, and unparalleled levels of convenience, efficiency and service. With locations in or near virtually every major U.S. market, CGX provides the service and responsiveness of a local printer enhanced by the economic, geographic and technological advantages of a large national organization.

Source: CGX.

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