Consolidated Graphics Reports Revenue and Income Declines
HOUSTON—Nov. 7, 2012—Consolidated Graphics announced its financial results for the second quarter ended Sept. 30, 2012.
• The company’s revenue for the quarter totaled $263.6 million—a $3.8-million or 1.4-percent decline compared to the prior year’s quarter. This decline was caused by lower same-store sales, partially offset by an increase in election-related revenue.
• Adjusted operating income for the quarter was $14.7 million, or 5.6 percent of revenue, compared to $15.2 million, or 5.7 percent of revenue, for the same period of last year. Operating income totaled $12.1 million and included other charges of $2.3 million primarily related to relocating certain production facilities and related asset impairments. Operating income for the prior year’s quarter was $13.9 million.
• Adjusted net income was $8.3 million, compared to $8.4 million for the prior-year quarter. Net income was $6.7 million vs. $7.5 million last year.
• Adjusted EBITDA was $33.1 million for the September 2012 quarter, compared to $32.6 million for the same quarter of the prior year.
Joe R. Davis, chairman and CEO of Consolidated Graphics, commented, “While we experienced increased demand from many of our clients, the decline in sales this quarter was primarily caused by lower demand from a handful of our large customers. We expect much of this business to return in the future.
”Election printing grew this quarter, compared to last year, and we are confident that election printing will grow again in the December quarter. We continue to invest in our industry leading capabilities and continue to see a high level of interest in these capabilities. Due to these investments, we expect to generate profitable revenue growth as the economy improves,” Davis added.
Share Repurchase Program Update
During the September 2012 quarter, the Company purchased 367,442 shares of its common stock for $9.8 million (average cost of $26.61 per share) pursuant to a share repurchase program authorizing the company to purchase up to an aggregate of $170.0 million of its common shares. Since beginning the share repurchase program in November 2010, CGX has purchased 2,222,816 shares of its common stock (19 percent of shares outstanding) for $89.3 million. As of Sept. 30, 2012, it had 9,658,811 common shares outstanding.
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, Prague, and Gero, Japan, 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.