Consolidated Graphics Reports Big Income Increases
HOUSTON—Feb. 1, 2011—Consolidated Graphics announced financial results for the quarter ended Dec. 31, 2010. Revenue for the quarter increased to $299.1 million, a gain of 8 percent compared to the prior year. The higher revenues resulted from a 6 percent improvement in same-store sales and the impact of the acquisition of certain operating assets. The same-store sales improvement was partially due to higher election related sales during the quarter.
Adjusted operating income for the quarter increased 31 percent to $30.2 million, or 10.1 percent of revenue. Adjusted net income increased 33 percent to $18.7 million. Adjusted EBITDA increased 13 percent to $47.2 million.
Operating income increased 52 percent to $28.2 million and net income increased 54 percent to $17.6 million.
Joe R. Davis, chairman and CEO of Consolidated Graphics, commented, “Adjusted operating income of $30.2 million this quarter was a record for Consolidated Graphics. We achieved these results by producing first-class products for our customers and by aggressively managing our costs.
“Our best-in-class technology, print and fulfillment solutions, including our world-leading fleet of high-end digital presses, enabled us to generate a record level of digital sales in this seasonally strong quarter and continue to grow our sales to national account customers served by multiple CGX operating companies.”
Davis added, “Based on current market conditions and the usual seasonal impacts, we expect March quarter's revenue to be in the range of $245-$260 million which assumes year-over-year same store sales growth of up to 5 percent, and incremental revenue from current year acquisitions. This should enable us to again achieve Adjusted Net Income improvement in the March 2011 quarter compared to the prior year.”
Stock Repurchase Program
In November 2010, the board of directors authorized the purchase up to an aggregate of $50 million of the Company's common shares. During the quarter, the company purchased 277,883 shares of its common stock for $13.2 million.
A reconciliation of the non-GAAP financial measures, Adjusted EBITDA, Free Cash Flow, Adjusted Operating Income, Adjusted Operating Margin, Adjusted Net Income and Adjusted Diluted Earnings Per Share to the most directly comparable GAAP financial measures are included in the attached tables and in the Current Report on Form 8-K filed today with the Securities and Exchange Commission. The Form 8-K also includes the basis for management's use of these non-GAAP financial measures.
About Consolidated Graphics
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, 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. www.cgx.com.
Source: Financial release.