Consolidated Graphics Sees Return to Sales Growth
HOUSTON—Aug. 4, 2010—Consolidated Graphics, Inc. (NYSE: CGX) today announced financial results for the quarter ended June 30, 2010. Revenue for the quarter was $236.7 million, a 4.8% increase compared to the prior year quarter. The increase was due to 2.3% growth in same-store sales combined with the impact of higher election-related sales and an acquisition.
Joe R. Davis, Chairman and CEO, commented, "After 12 quarters of year-over-year declines, we were pleased to achieve same-store sales growth this past quarter. While there has been some improvement in the economy, we continue to see weakness in demand from many of our customers, and our performance this quarter is a testament to the efforts we have made to develop customized solutions that meet our customers' most critical needs. We also continue to improve our capabilities by investing in people and technology, including in our CGXSolutions offerings. These sophisticated capabilities, combined with our cost containment efforts, and higher sales levels, allowed us to significantly improve our operating income and margins over last year."
As a result of the growth in sales and the benefit of prior year cost reductions, Adjusted Operating Income for the June 2010 quarter improved to $9.7 million, or 4.1% of revenue, from $2.4 million, or 1.0% of revenue, for the same quarter last year. Adjusted Net Income for the quarter was $4.9 million, compared to $.6 million for the prior year.
Operating income of $12.9 million in the quarter compared to operating income of $.9 million in the prior year quarter. It included a $5.2 million positive adjustment resulting from the settlement of litigation for an amount lower than previously recognized and $1.0 million in expenses related to the cost of withdrawing from a multi-employer pension plan.
Net income for the June 2010 quarter was $6.8 million, compared to a $.3 million net loss for the prior year quarter.