Consolidated Graphics Posts Strong Income Gains on Revenue Increase
HOUSTON—May 3, 2011—Consolidated Graphics (CGX) announced financial results for its fourth quarter and year ended March 31, 2011.
Year-over-Year Quarterly Highlights:
- Revenue increased 8.9 percent
- Same-store sales increased 5.3 percent
- Adjusted operating income increased 71 percent, to $17.7 million
Revenue for the March quarter totaled $258.1 million, an increase of 8.9 percent. The higher revenues resulted from a 5.3 percent improvement in same-store sales and the impact of acquisitions.
Adjusted operating income for the March 2011 quarter increased 71 percent, to $17.7 million, or 6.9 percent of revenue. Adjusted net income for the quarter increased 56 percent, to $9.7 million. Adjusted EBITDA increased 30 percent, to $35.2 million, in the March 2011 quarter.
Operating income was $16.4 million, compared to $1.5 million in the March 2010 quarter. Net income for the quarter was $8.9 million, compared to $.9 million for the same quarter last year.
Joe R. Davis, chairman and CEO of Consolidated Graphics, commented, “We continued to see improved operating performance this past year. Adjusted net income for the year increased $16.9 million, or 66 percent, on a 6.4 percent increase in revenues. Throughout the year, we invested in our best-in-class solutions that create value for our customers, which, together with managing our costs, delivered improved results this year as well as for the fourth quarter.”
Davis continued, “As we look ahead to the coming year, we are encouraged by the improvement we are seeing in our markets. We have the strongest competitive position in our history and will continue to add to and differentiate our offerings, manage our costs, and seek out quality acquisitions, in order to drive growth over the longer term.”
He concluded, “Based on current market conditions and the usual seasonal impacts, we expect the June quarter’s revenue to be in the range of $240-$250 million which assumes year-over-year same-store sales growth of up to 5 percent along with incremental revenue from current year acquisitions. This should enable us to improve Adjusted Net Income in the June 2011 quarter compared to the prior year.”
Stock Repurchase Program Update
In November 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, CGX purchased 278,327 shares of its common stock for $14.6 million. Since the inception of the program, the Company has purchased 556,210 shares of its common stock for $27.7 million.
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 to the most directly comparable GAAP financial measures are included in the attached tables and in the Current Report on Form 8-K filed today with the Securities and Exchange Commission. The Form 8-K also includes the basis for management's use of these non-GAAP financial measures.
About Consolidated Graphics
Consolidated Graphics, Inc. (CGX), headquartered in Houston, Texas, 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.
Source: financial release.