Consolidated Graphics Posts Increases in Revenue, Income
HOUSTON—Nov. 3, 2010—Consolidated Graphics, Inc. today announced financial results for the quarter ended Sept. 30, 2010.
Revenue grew 3.4% to $260.1 million for the quarter, when compared to the same period of the prior year. The increase was due to improved election-related sales and an acquisition, partially offset by a slight decline in same-store sales.
Adjusted operating income for the quarter improved to $17.0 million (6.5% of revenue), a 59% increase vs. $10.6 million (4.2% of revenue) for the same quarter last year.
Adjusted net income was $9.0 million, compared to $4.6 million for the prior year.
Operating income was $15.4 million in the quarter, vs. operating income of $6.6 million in the prior year quarter, an improvement of 134%. Net income was $8.1 million, compared to $2.1 million for the prior year quarter.
Adjusted EBITDA was $33.8 million for the Sept. 2010 quarter, compared to $28.7 million for the same quarter in the prior year, an increase of 18%.
Joe R. Davis, Chairman and CEO, commented, “We posted strong adjusted operating margin and adjusted net income this quarter, driven by the combination of sales improvement and effective cost management. Our best-in-class technology, printing and fulfillment solutions enable us to provide value to customers and grow our business. This, combined with the opportunity to grow through acquisition and our strong balance sheet, places Consolidated Graphics in an attractive competitive position. We remain very optimistic in our near-term and long-term prospects.”
Davis added, “Based on current market conditions, we expect December quarter's revenue to be in the range of $290-$305 million, which assumes year-over-year same store sales growth of up to 5%, higher election-related business and incremental revenue from a recent acquisition. This should enable us to again achieve adjusted net income improvement in the December 2010 quarter compared to the prior year.”
Stock Repurchase Program
On Nov. 1, 2010, the Board of Directors authorized a new common share repurchase program for the purchase of the CGX issued and outstanding common shares up to an aggregate of $50 million.
About Consolidated Graphics
Consolidated Graphics, Inc. (CGX), headquartered in Houston, TX, 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.