Consolidated Graphics Reports Revenue Decline, Income Stability in Fourth Quarter
HOUSTON—Feb 03, 2010—Consolidated Graphics, Inc. (NYSE: CGX) today announced financial results for the quarter ended December 31, 2009. Revenue for the quarter was $276.4 million, down 12.5% compared to the same quarter last year. The decline was due to lower election-related business and, as a result of the current economic environment, lower same-store sales of 6.8%.
Adjusted Operating Income for the December 2009 quarter was $23.0 million or 8.3% of revenue compared to $25.4 million or 8.0% of revenue for the same quarter last year. Despite the impact of lower revenues, continued cost reduction efforts in 2009 allowed for a modest improvement in Adjusted Operating Margin. Adjusted Net Income for the December 2009 quarter was $14.1 million, or $1.23 Adjusted Diluted Earnings Per Share compared to Adjusted Net Income of $13.7 million, or $1.21 Adjusted Diluted Earnings Per Share for the prior year quarter.
Operating income of $18.6 million in the December 2009 quarter included charges of $3.1 million primarily related to the impairment of certain production equipment and lease termination charges. The $55.5 million operating loss in the December 2008 quarter included charges totaling $79.5 million for the impairment of goodwill, the impairment of certain production equipment and litigation. Net income for the December 2009 quarter was $11.4 million, or $1.00 diluted earnings per share.
The Company generated $16.0 million in Free Cash Flow for the current quarter, compared to $23.5 million for the same quarter in the prior year. Adjusted EBITDA was $41.8 million for the December 2009 quarter, compared to $42.4 million for the same quarter in the prior year. For the nine months ended December 31, 2009, the Company produced Free Cash Flow of $101.7 million and Adjusted EBITDA of $90.7 million. As of December 31, 2009, total debt was $221.1 million; $93.1 million or 30% lower than the debt balance at March 31, 2009.