Consolidated Graphics Posts Revenue Increase, Lower Income
HOUSTON—August 3, 2011—Consolidated Graphics announced financial results for the quarter ended June 30, 2011.
Year-over-Year Quarterly Highlights:
- Revenue increased 2.8 percent to $243.4 million.
- Adjusted operating income was $8.9 million, or 3.7 percent of revenues.
Revenue for the June quarter increased 2.8 percent to $243.4 million, compared to the prior-year quarter. The higher revenues resulted from 1.5 percent growth in same-store sales, excluding election-related business, and the impact of acquisitions, partially offset by lower election-related business.
Adjusted operating income for the June 2011 quarter was $8.9 million or 3.7 percent of revenue, compared to $9.7 million or 4.1 percent of revenue last year.
Operating income was $3.6 million during the June 2011 quarter and included $4.6 million in expenses resulting from the withdrawal from certain multi-employer pension plans. Operating income during the June 2010 quarter was $12.9 million and included $5.2 million in income resulting from the settlement of litigation, partially offset by a $1.0 million charge for the cost of withdrawing from a multi-employer pension plan.
Net income for the June 2011 quarter was $1.6 million, compared to $6.8 million.
Joe R. Davis, chairman and CEO of Consolidated Graphics, commented, “We grew sales and maintained profitability in a non-election quarter when we typically experience our lowest seasonal demand, and at the same time, increased our investment in the technology and innovation that differentiates our value proposition. As the year progresses, we will continue to invest in our best-in-class solutions, manage our costs, and acquire good assets to grow sales and increase profitability going forward.
“Based on current market conditions and the usual seasonal improvements, we expect the September quarter’s revenue to be in the range of $262-$272 million which assumes year-over-year same-store sales growth of up to 5 percent, as well as incremental revenue from current year acquisitions and lower election-related business,” Davis continued.
Share Repurchase Program Update
On Nov. 1, 2010, the board of directors authorized the purchase of up to an aggregate of $50 million of the Company’s common shares. During the quarter, the company purchased 215,447 shares of its common stock for $11.5 million. During the past nine months, CGX purchased 771,657 shares (6.6 percent of common shares outstanding) of its common stock for $39.2 million.
Additional Share Repurchase Authorization
On Aug. 1, 2011, the board of directors amended the share repurchase program approved in November 2010 by increasing the authorization to purchase the company’s common stock from $50 million to $100 million. Additionally, the expiration of the program was extended to March 31, 2013. The amended share repurchase program enables the CGX to repurchase shares of its common stock in open-market purchases as well as privately negotiated transactions, pursuant to applicable securities regulations, and subject to the terms of our bank facilities, market conditions and other factors. The Board of Directors may modify, suspend, extend or terminate the program at any time. Remaining authorization under the amended share repurchase program at August 1, 2011 was $60.5 million.
Consolidated Graphics (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.
Consolidated Graphics’ vast and technologically advanced sheetfed and web printing capabilities are complemented by the world’s largest integrated digital footprint. By coupling North America’s most comprehensive printing capabilities with strategically located fulfillment centers and industry-leading technology, CGX delivers end-to-end print production and management solutions that are based on the needs of our customers to improve their results. For more information, visit www.cgx.com.