Consolidated Graphics Reports Small Net Loss on Lower Sales
HOUSTON—August 8, 2012—Consolidated Graphics announced financial results for its first quarter ended June 30, 2012.
Revenue for the June quarter totaled $238.3 million, a $5.0 million or 2.1 percent decline compared to the prior year quarter. The decline in revenue compared to the prior year quarter was due to a 2.5 percent decline in same-store sales, partially offset by sales growth related to an acquisition. The same-store sales change includes the benefit of election-related revenue growth, compared to the prior year.
Adjusted operating income for the quarter ended June 2012 was $2.8 million, or 1.2 percent of revenue, compared to $8.9 million, or 3.7 percent of revenue, last year. Adjusted net income was $1.0 million, compared to $4.9 million for the prior-year quarter.
Operating income during the totaled $.5 million and included other charges of $1.7 million primarily related to relocating certain production facilities. Operating income for the prior year quarter was $3.6 million and included $4.6 million in other charges due to withdrawing from certain multi-employer pension plans.
Consolidated’s net loss for the quarter ended June 2012 was $.4 million, compared to net income of $1.6 million last year.
Joe R. Davis, chairman and CEO of Consolidated Graphics, commented, “The decline in same-store sales reflects the ongoing fragile state of the economy. While we are closely managing our costs during these challenging economic times, we are also investing in our capabilities.
“We believe our industry leading technology and digital investments provide us significant competitive advantages that will enable us to generate profitable growth as the economy improves. Evidence of these advantages include the 6 percent quarterly year-over-year growth of our digital print business and 30 percent growth in our web-to-print technology solutions installed since the launch of our Streamline product last September,” Davis added.
Consolidated Graphics, 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.