Consolidated Graphics Reports Revenue Decline, Positive Income
HOUSTON—May 5, 2010—Consolidated Graphics, Inc. (CGX) today announced financial results for its fourth quarter and year-ended March 31, 2010.
Revenue for the March quarter was $237.0 million, a 4.1% decline compared to the prior year quarter. Adjusted Operating Income for the March 2010 quarter was $10.3 million, or 4.4% of revenue, compared to $6.6 million, or 2.7% of revenue, for the same quarter last year. Adjusted Net Income for the March 2010 quarter was $6.2 million compared to $2.5 million for the prior year quarter.
Operating income of $1.5 million in the March 2010 quarter compared to an operating loss of $16.2 million in the prior year quarter. It included charges totaling $7.6 million for the impairment of goodwill and certain equipment and litigation. The $16.2 million operating loss for the March 2009 quarter included charges totaling $21.1 million for the impairment of goodwill and certain equipment. Net income for the March 2010 quarter was $.9 million, compared to a $15.9 million net loss or $1.43 diluted loss per share for the prior year quarter.
The company generated $38.1 million in Free Cash Flow for the current quarter, compared to $31.2 million for the same quarter in the prior year. Adjusted EBITDA was $27.0 million for the March 2010 quarter, compared to $24.2 million for the same quarter in the prior year, an increase of 12%. For the year ended March 31, 2010, the Company produced Free Cash Flow of $139.8 million and Adjusted EBITDA of $117.7 million. As of March 31, 2010, total debt was $181.6 million, a decline of $132.6 million or 42%, compared to the prior year end balance.
Joe R. Davis, Chairman CEO of Consolidated Graphics, commented, "While this was a challenging year for Consolidated Graphics, we made the difficult decisions and took the steps necessary to maintain profitability in a tough economy. We continued to invest in our future while substantially reducing our debt. We believe our best-in-class capabilities combined with our financial strength provide us a clear competitive advantage that we will leverage as the economy and our markets continue to improve."