Digital Print, Elections Boost CGX Q3 Results
HOUSTON—February 6, 2013—Consolidated Graphics (NYSE: CGX) today announced financial results for its third quarter ended December 31, 2012.
Revenue for the December 2012 quarter increased 4.0 percent to $295.3 million, compared to the prior year. Adjusted Operating Income increased 17.3 percent for the quarter to $24.3 million or 8.2 percent of revenue, compared to $20.7 million or 7.3 percent of revenue last year. Adjusted Net Income increased 32.4 percent to $16.9 million for the quarter, compared to $12.7 million for the prior year. Adjusted Diluted Earnings per share increased 43.4 percent to $1.75, compared to $1.22 last year. Adjusted EBITDA increased 9.2 percent to $42.7 million for the quarter and Free Cash Flow was $16.8 million for the quarter.
Operating income during the December 2012 quarter was $23.3 million, compared to $17.6 million for the prior year. Net income for the quarter was $16.3 million or $1.68 diluted earnings per share, compared to $10.8 million or $1.04 diluted earnings per share last year.
Joe R. Davis, chairman and CEO of Consolidated Graphics, commented, "Revenue growth this quarter was driven by growth in digital print revenue, which increased 3.6 percent, as well as strong election-related revenue. The sales growth we experienced was made possible by investment in our best of class digital print platform, along with our technology infrastructure and solutions. Looking forward, we are optimistic that with an improving U.S. economy in 2013, we will experience greater demand for our products and services."
During the December 2012 quarter, the company purchased 46,336 shares of its common stock for $1.2 million (average cost of $26.06 per share) pursuant to a share repurchase program authorizing the company to purchase up to an aggregate of $170.0 million of the company's common shares. Since beginning the share repurchase program in November 2010, the company has purchased 2,269,152 shares of its common stock (19 percent of shares outstanding) for $90.5 million. As of December 31, 2012, the company had 9,618,475 common shares outstanding.
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 related Current Report on Form 8-K filed 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 (CGX)
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.
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.