-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, BOIJdVXiQRGzO2j7Uvak1e1S3AvUzW3cqxRMFKrjULWiA5HylyL47qfVpZGeu96N H+fZNQpZbF3MPUwuwd1OaQ== 0000890566-99-000882.txt : 19990715 0000890566-99-000882.hdr.sgml : 19990715 ACCESSION NUMBER: 0000890566-99-000882 CONFORMED SUBMISSION TYPE: 11-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19981231 FILED AS OF DATE: 19990714 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CONSOLIDATED GRAPHICS INC /TX/ CENTRAL INDEX KEY: 0000921500 STANDARD INDUSTRIAL CLASSIFICATION: COMMERCIAL PRINTING [2750] IRS NUMBER: 760190827 STATE OF INCORPORATION: TX FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: 11-K SEC ACT: SEC FILE NUMBER: 001-12631 FILM NUMBER: 99664324 BUSINESS ADDRESS: STREET 1: 5858 WESTHEIMER STE 200 CITY: HOUSTON STATE: TX ZIP: 77057 BUSINESS PHONE: 7137870977 MAIL ADDRESS: STREET 1: 2210 WEST DALLAS STREET CITY: HOUSTON STATE: TX ZIP: 77019 11-K 1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 11-K (MARK ONE) [X] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED DECEMBER 31, 1998 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM ___________ TO _________ COMMISSION FILE NUMBER 0-24068 _________________ A. FULL TITLE OF THE PLAN AND ADDRESS OF THE PLAN, IF DIFFERENT FROM THAT OF THE ISSUER NAMES BELOW: CONSOLIDATED GRAPHICS, INC. EMPLOYEE 401(K) SAVINGS PLAN. B. NAME OF ISSUER OF THE SECURITIES HELD PURSUANT TO THE PLAN AND THE ADDRESS OF ITS PRINCIPAL EXECUTIVE OFFICE: CONSOLIDATED GRAPHICS, INC., 5858 WESTHEIMER, SUITE 200, HOUSTON, TEXAS 77057. CONSOLIDATED GRAPHICS, INC. EMPLOYEE 401(k) SAVINGS PLAN INDEX PAGE Independent Auditors' Report 1 Statement of Net Assets Available for Benefits - December 31, 1998 and 1997 2 Statement of Changes in Net Assets Available for Benefits with Fund Information - Year ended December 31, 1998 3 Notes to Financial Statements 4 SUPPLEMENTAL SCHEDULES 1 Item 27a - Schedule of Assets Held for Investment Purposes- December 31, 1998 9 2 Item 27d - Schedule of Reportable Transactions- Year ended December 31, 1998 10 3 Item 27e - Schedule of Nonexempt Transactions- Year ended December 31, 1998 11 Signature 12 EXHIBIT Consent of Independent Auditors INDEPENDENT AUDITORS' REPORT The Plan Administrator Consolidated Graphics, Inc. Employee 401(k) Savings Plan: We have audited the accompanying statements of net assets available for benefits of Consolidated Graphics, Inc. Employee 401(k) Savings Plan (the Plan) as of December 31, 1998 and 1997, and the related statement of changes in net assets available for benefits with fund information for the year ended December 31, 1998. These financial statements are the responsibility of the Plan's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for benefits of the Plan as of December 31, 1998 and 1997, and the changes in net assets available for benefits with fund information for the year ended December 31, 1998 in conformity with generally accepted accounting principles. Our audit was performed for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental schedules of assets held for investment purposes, reportable transactions, and nonexempt transactions are presented for the purpose of additional analysis and are not a required part of the basic financial statements but are supplementary information required by the Department of Labor's Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. These supplemental schedules are the responsibility of the Plan's management. The fund information in the statement of changes in net assets available for benefits is presented for purposes of additional analysis rather than to present the changes in net assets available for plan benefits with fund information of each fund. The supplemental schedules and fund information have been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole. /s/ KPMG LLP Houston, Texas July 9, 1999 1 CONSOLIDATED GRAPHICS, INC. EMPLOYEE 401(k) SAVINGS PLAN STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS
December 31, 1998 1997 ----------- ----------- Assets: Cash - interest bearing ........................ $ 4,475 $ 1,036 Investments - at fair value: Consolidated Graphics, Inc. Common Stock .... 3,102,953 * 728,292 * Janus Worldwide ............................. 3,759,583 * 1,100,610 * U.S. Global Resources ....................... 367,765 205,229 Bonnel Growth ............................... 3,480,771 * 1,052,498 * Dreyfus S&P 500 Index ....................... 4,535,458 * 792,155 * Janus Flexible Income ....................... 1,043,682 * 275,747 U.S. Government Securities Savings .......... 1,371,824 * 1,309,074 * Participant notes receivable - at cost ....... 336,456 141,136 ----------- ----------- Total investments ..................... 17,998,492 5,604,741 ----------- ----------- Participants' contributions receivable ......... 160,537 111,611 Investment income receivable ................... 21,793 -- ----------- ----------- Total assets .......................... 18,185,297 5,717,388 ----------- ----------- Liabilities: Contributions payable .......................... 7,910 -- Trustee fees payable ........................... -- 455 ----------- ----------- Total liabilities ..................... 7,910 455 ----------- ----------- Net assets available for benefits ............. $18,177,387 $ 5,716,933 =========== ===========
* Represents 5% or more of net assets available for benefits See accompanying notes to financial statements. 2 CONSOLIDATED GRAPHICS, INC. EMPLOYEE 401(k) SAVINGS PLAN STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION YEAR ENDED DECEMBER 31, 1998
CONSOLIDATED CASH - GRAPHICS, INC. U.S. INTEREST COMMON JANUS GLOBAL BONNEL BEARING STOCK WORLDWIDE RESOURCES GROWTH ----------- ----------- ----------- --------- ----------- Additions to net assets attributed to: Dividend and interest income .......... $ 3,702 $ -- $ 18,215 $ 49,960 $ 109,457 Realized gains (losses) ............... -- 60,195 42,865 (30,528) 29,894 Unrealized gains (losses) ............. -- 728,658 391,780 (165,237) 417,660 Contributions: Employees ........................... 619,425 (5,450) 737,563 141,059 731,610 Rollovers from other plans .......... 558,083 -- 453,967 73,496 802,338 Plan mergers ........................ 480,296 -- 1,223,981 115,999 626,710 ----------- ----------- ----------- --------- ----------- Total additions ................. 1,661,506 783,403 2,868,371 184,749 2,717,669 ----------- ----------- ----------- --------- ----------- Deductions from net assets attributed to: Benefits and withdrawals .............. 236 200,219 180,591 20,006 185,393 Trustee fees .......................... -- 94 794 95 718 ----------- ----------- ----------- --------- ----------- Total deductions ................ 236 200,313 181,385 20,101 186,111 ----------- ----------- ----------- --------- ----------- Net increase before interfund transfers and other .. 1,661,270 583,090 2,686,986 164,648 2,531,558 Interfund transfers and other ........... (1,634,668) 1,789,474 (469) 1,110 (59,188) ----------- ----------- ----------- --------- ----------- Net increase (decrease) in net assets available for benefits .. 26,602 2,372,564 2,686,517 165,758 2,472,370 Net assets available for benefits: Beginning of year ....................... 1,036 728,292 1,100,610 205,229 1,052,498 ----------- ----------- ----------- --------- ----------- End of year ............................. $ 27,638 $ 3,100,856 $ 3,787,127 $ 370,987 $ 3,524,868 =========== =========== =========== ========= ===========
U.S. DREYFUS JANUS GOVERNMENT PARTICIPANT S&P 500 FLEXIBLE SECURITIES NOTES INDEX INCOME SAVINGS RECEIVABLE OTHER TOTAL ---------- ----------- ----------- -------- --------- ------------ Additions to net assets attributed to: Dividend and interest income .......... $ 44,121 $ 44,121 $ 46,488 $ -- $ -- $ 316,064 Realized gains (losses) ............... 35,757 855 -- -- -- 139,038 Unrealized gains (losses) ............. 578,391 15,163 -- -- -- 1,966,415 Contributions: Employees ........................... 808,076 182,557 103,143 -- -- 3,317,983 Rollovers from other plans .......... 1,248,484 296,188 363,804 56,881 -- 3,853,241 Plan mergers ........................ 1,166,858 295,970 647,932 -- -- 4,557,746 ---------- ----------- ----------- -------- --------- ------------ Total additions ................. 3,881,687 834,854 1,161,367 56,881 -- 14,150,487 ---------- ----------- ----------- -------- --------- ------------ Deductions from net assets attributed to: Benefits and withdrawals .............. 164,673 31,096 789,840 39,584 -- 1,611,638 Trustee fees .......................... 904 391 591 -- -- 3,587 ---------- ----------- ----------- -------- --------- ------------ Total deductions ................ 165,577 31,487 790,431 39,584 -- 1,615,225 ---------- ----------- ----------- -------- --------- ------------ Net increase before interfund transfers and other .. 3,716,110 803,367 370,936 17,297 -- 12,535,262 Interfund transfers and other ........... 71,661 (11,219) (298,376) 178,023 (111,156) (74,808) ---------- ----------- ----------- -------- --------- ------------ Net increase (decrease) in net assets available for benefits .. 3,787,771 792,148 72,560 195,320 (111,156) 12,460,454 Net assets available for benefits: Beginning of year ....................... 792,155 275,747 1,309,074 141,136 111,156 5,716,933 ---------- ----------- ----------- -------- --------- ------------ End of year ............................. $4,579,926 $ 1,067,895 $ 1,381,634 $336,456 $ -- $ 18,177,387 ========== =========== =========== ======== ========= ============
See accompanying notes to financial statements. 3 CONSOLIDATED GRAPHICS, INC. EMPLOYEE 401(k) SAVINGS PLAN NOTES TO FINANCIAL STATEMENTS (1) DESCRIPTION OF PLAN The following description of the Consolidated Graphics, Inc. (the "Company") Employee 401(k) Savings Plan (the "Plan") provides only general information. Participants should refer to the Plan agreement for a more complete description of the Plan's provisions. (A) GENERAL The Plan was established effective January 1, 1997 as a defined contribution plan covering all full-time employees of the Company and its participating subsidiaries who have completed one year of service (including a minimum of 1,000 hours of service during such period) and are age nineteen or older. The Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974 ("ERISA"). During 1998, the Company executed three asset transfer agreements to merge the 401(k) plans of acquired printing businesses into the Plan. The following plans were merged into the Plan as of the following dates: PLAN NAME DATE ----------------------------------------------- ----------------- Garner Printing Savings Plan April 9, 1998 Walnut Circle Press, Inc. 401(k) Plan September 30, 1998 Employees Savings Plan and Trust of Delmar and Certain Other Divisions of Continental Graphics Corporation October 22, 1998 The Plan is administered by the Company's Retirement Committee. Security Trust & Financial Company serves as the Plan trustee and custodian. Plan administrative expenses are paid by the Company. (B) CONTRIBUTIONS Each year, participants may contribute from 1 percent to 15 percent of their pretax annual compensation not to exceed $10,000, as defined in the Plan agreement. Participants may also contribute amounts representing distributions from other qualified defined benefit or contribution plans. The Plan also provides for discretionary employer matching, not exceeding 6 percent of annual compensation. Additional amounts may also be contributed by the employer at the option of the Company's board of directors. During 1998, the Company made no discretionary contributions to the Plan. (C) PARTICIPANT ACCOUNTS Each participant's account is credited with the participant's contribution and allocations of (i) Plan earnings and (ii) discretionary contributions by the Company, if any, and charged with an allocation of administrative expenses. Allocations are based on participant earnings or account balances, as defined in the Plan agreement. The benefit to which the participant is entitled is the benefit that can be provided from the participant's vested interest in his or her account. 4 CONSOLIDATED GRAPHICS, INC. EMPLOYEE 401(k) SAVINGS PLAN NOTES TO FINANCIAL STATEMENTS (D) VESTING Participants are immediately vested in their contributions plus actual earnings thereon and qualified employer matching contributions. The vesting of certain discretionary contributions made by the employer plus earnings and losses thereon is based on years of continuous service. A participant vests at a rate of 20 percent per year until fully vested after five years of credited service. (E) INVESTMENT OPTIONS Upon enrollment in the Plan, a participant may direct contributions in 1 percent increments in any of seven investment options. o CONSOLIDATED GRAPHICS, INC. COMMON STOCK - Invests in the Company's common stock. o JANUS WORLDWIDE FUND - A diversified fund that seeks long-term growth of capital by investing primarily in common stocks of foreign and domestic issues. o U.S. GLOBAL RESOURCES FUND - Seeks long-term growth of capital, while providing protection against inflation and monetary instability by investing in natural resource-related companies around the globe. o BONNELL GROWTH FUND - Seeks long-term growth of capital by investing primarily in the common stocks of domestic and foreign small to midsize capital companies. o DREYFUS S&P 500 INDEX FUND - Seeks to provide investment results that correspond to the price and yield performance of publicly-traded common stocks in the aggregate, as represented by the Standard & Poor's 500 Composite Price Index. o JANUS FLEXIBLE INCOME FUND - A diversified fund that seeks current income and long-term growth of capital by investing primarily in income-producing equity securities. o U.S. GOVERNMENT SECURITIES SAVINGS FUND - Seeks to preserve capital and generate income by investing exclusively in short-term securities backed by the United States government or its agencies. Participants may change their investment options at any time. 5 CONSOLIDATED GRAPHICS, INC. EMPLOYEE 401(k) SAVINGS PLAN NOTES TO FINANCIAL STATEMENTS (F) PARTICIPANT NOTES RECEIVABLE Participants may borrow from their fund accounts a minimum of $1,000 up to a maximum equal to the lesser of $50,000 or 50 percent of the participant's vested account balance. Loan transactions are treated as a transfer to (from) the investment fund from (to) the Participant Notes Receivable fund. Loan terms range from 1 to 5 years or up to 25 years for the purchase of a primary residence. The loans are secured by the vested balance in the participant's account and bear interest at a rate commensurate with local prevailing rates as determined by the Plan administrator. Principal and interest payments are made by means of payroll withholdings according to the terms of the promissory note. (G) PAYMENT OF BENEFITS Upon termination of services due to death or retirement, a participant may elect to receive either a lump-sum amount equal to the value of the participant's vested interest in his or her account, or annual installments as requested by the employee. For termination of service due to other reasons, a participant may receive the value of the vested interest in his or her account as a lump-sum distribution. (H) FORFEITED ACCOUNTS During 1998, there were nine forfeited nonvested accounts totaling $3,000 which were used to reduce trustee fees. (2) SUMMARY OF ACCOUNTING POLICIES (A) BASIS OF ACCOUNTING The financial statements of the Plan are prepared under the accrual method of accounting in accordance with generally accepted accounting principles. These principles require management to make estimates and assumptions that affect the reported amounts of assets, liabilities, and changes therein, and disclosure of contingent assets and liabilities; accordingly, actual results could differ from those estimates. (B) INVESTMENT VALUATION AND INCOME RECOGNITION The Plan's investments are stated at fair value. Shares of registered investment companies are valued at quoted market prices which represent the net asset value of shares held by the Plan at year end. The Company's common stock is valued at its quoted market price. Participant notes receivable are valued at cost which approximates fair value. Purchases and sales of securities are recorded on a trade-date basis. Interest income is recorded on the accrual basis. Dividends are recorded on the ex-dividend date. (C) PAYMENT OF BENEFITS Benefits are recorded when paid. 6 CONSOLIDATED GRAPHICS, INC. EMPLOYEE 401(k) SAVINGS PLAN NOTES TO FINANCIAL STATEMENTS (3) PARTY-IN-INTEREST TRANSACTIONS Certain Plan investments are in funds managed by the Plan trustee. In addition, the Plan invests in the Company's common stock, as well as participant notes receivable. These transactions qualify as party-in-interest transactions. (4) PLAN TERMINATION Although it has not expressed any intent to do so, the Company has the right to terminate the Plan subject to the provisions of ERISA. In the event of Plan termination, participants will become 100 percent vested in their accounts. (5) RECONCILIATION OF FINANCIAL STATEMENTS TO FORM 5500 The following is a reconciliation of net assets available for benefits per the financial statements to the Form 5500 at December 31, 1997: Net assets available for benefits per the financial statements .... $ 5,716,933 Amounts allocated to withdrawing participants .................... (5,254) ----------- Net assets available for benefits per the Form 5500 $ 5,711,679 =========== The following is a reconciliation of benefits paid to participants per the financial statements to the Form 5500 at December 31, 1998: Benefits paid to participants per the financial statements ...... $ 1,611,638 Less: Amounts allocated to withdrawing participants at December 31, 1997 ........... (5,254) ----------- Benefits paid to participants per the Form 5500 ............... $ 1,606,384 =========== (6) TAX STATUS The Plan agreement is based on a standardized prototype plan developed by the Plan trustee. The prototype plan received an opinion letter from the Internal Revenue Service (IRS) dated October 20, 1993. The Plan trustee and administrator believe that the Plan is designed and is currently being operated in compliance with the applicable requirements of the Internal Revenue Code of 1986, as amended (IRC) and accordingly, that the Plan is tax-exempt. 7 CONSOLIDATED GRAPHICS, INC. EMPLOYEE 401(k) SAVINGS PLAN NOTES TO FINANCIAL STATEMENTS (7) PROHIBITED TRANSACTIONS AND OTHER On one occasion during the 1998 Plan year, participant 401(k) contributions were not forwarded to the trustee of the Plan by the fifteenth business day of the month following the month in which such contributions were withheld from the pay of such participants. In each case, such contributions were subsequently contributed to the trust for the Plan along with earnings calculated from such fifteenth business day to the date such contributions were deposited in the trust. In addition, the Company is preparing and intends to file IRS Form 5330 to pay the excise tax associated with such late contributions. The 401(k) contributions of seven participants exceeded the limitation under IRC Section 402(g) for the 1998 Plan year. The excess deferrals (including earnings) of five of such participants were distributed by April 15, 1999. The excess deferrals (including earnings) of the other two participants will be distributed to such participants in accordance with the Administrative Policy Regarding Self Correction under Revenue Procedure 98-22. The correction will be made in accordance with the SVP standardized correction method set forth in Section .04 of Appendix A to Revenue Procedure 98-22. The Plan did not satisfy the nondiscrimination test under IRC Section 401(k)(3) for the 1998 Plan year. To comply with such nondiscrimination test, the Company will either (i) make a qualified nonelective contribution allocable to non-highly compensated employees in an amount sufficient to satisfy the nondiscrimination test or (ii) distribute the excess contributions, including any income attributable thereto, to highly compensated employees by December 31, 1999. If the excess contributions are distributed to highly compensated employees, the Company will file IRS Form 5330 to pay the excise tax attributable to such excess contributions. (8) YEAR 2000 (UNAUDITED) The Plan could be adversely affected if the computer systems and those of service providers used by the Plan or the Plan trustee do not properly process and calculate date related information from and after January 1, 2000. This is commonly known as the "Year 2000 Issue." The Company is taking steps that it believes are reasonably designed to address the Year 2000 Issue with respect to its computer systems and is obtaining satisfactory assurances that comparable steps are being taken by each of the Plan's major service providers. At this time, however, there can be no assurance that these steps will be sufficient to avoid any material adverse effect on the Plan's activities and, accordingly, its net assets available for benefits and changes therein. (9) SUBSEQUENT EVENT On July 9, 1999, the Company executed an asset transfer agreement to merge Carty Enterprises, Inc. Profit Sharing/Section 401(k) Plan and Trust into the Plan. 8 SCHEDULE 1 CONSOLIDATED GRAPHICS, INC. EMPLOYEE 401(k) SAVINGS PLAN ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES DECEMBER 31, 1998
CURRENT IDENTITY OF ISSUER DESCRIPTION OF INVESTMENT COST VALUE - --------------------------------------- --------------------------------- ------------ ------------- Security Trust and Financial Company * Cash - interest bearing $ 4,475 $ 4,475 Consolidated Graphics, Inc.* Consolidated Graphics, Inc. Common Stock 2,281,445 3,102,953 Security Trust and Financial Company * Janus Worldwide 3,369,763 3,759,583 Security Trust and Financial Company * U.S. Global Resources 565,392 367,765 Security Trust and Financial Company * Bonnel Growth 3,131,503 3,480,771 Security Trust and Financial Company * Dreyfus S&P 500 Index 3,902,352 4,535,458 Security Trust and Financial Company * Janus Flexible Income 1,033,145 1,043,682 Security Trust and Financial Company * U.S. Government Securities Savings 1,371,824 1,371,824 Participant notes receivable, with terms ranging from 1-5 years, interest at 7.75% per year* 336,456 336,456 ------------ ------------ $ 15,996,355 $ 18,002,967 ============ ============
* Represents party-in-interest transactions. See accompanying independent auditors' report. 9 SCHEDULE 2 CONSOLIDATED GRAPHICS, INC. EMPLOYEE 401(k) SAVINGS PLAN ITEM 27d - SCHEDULE OF REPORTABLE TRANSACTIONS YEAR ENDED DECEMBER 31, 1998
NET PURCHASE SELLING CURRENT GAIN/ IDENTITY OF ISSUER DESCRIPTION OF ASSET PRICE PRICE COST VALUE (LOSS) - ---------------------- ------------------------ ---------- ----------- ---------- ---------- ----------- Security Trust and Financial Company* Cash $ - - - 2,426,015 ** - Security Trust and Financial Company* Cash - - - 1,762,464 ** - Security Trust and Financial Company* Cash - - - 369,756 ** -
* Represents party-in-interest transactions. ** Represents rollovers from plan mergers. See accompanying independent auditors' report. 10 SCHEDULE 3 CONSOLIDATED GRAPHICS, INC. EMPLOYEE 401(K) SAVINGS PLAN ITEM 27e - SCHEDULE OF NONEXEMPT TRANSACTIONS YEAR ENDED DECEMBER 31, 1998
DESCRIPTION OF TRANSACTIONS IDENTITY OF RELATIONSHIP TO PLAN, INCLUDING MATURITY DATE, RATE OF PARTY EMPLOYER OR OTHER INTEREST, COLLATERAL, PAR OR INVOLVED PARTY-IN-INTEREST MATURITY VALUE PURCHASE PRICE SELLING PRICE - -------------- --------------------- --------------------------------- --------------- -------------- Consolidated Employer/ Graphics, Inc. Plan Sponsor * ** ** IDENTITY OF EXPENSES INCURRED CURRENT NET GAIN OR PARTY IN CONNECTION WITH VALUE OF (LOSS) ON EACH INVOLVED LEASE RENTAL TRANSACTION COST OF ASSET ASSET TRANSACTION - -------------- ------------- -------------------- ------------- ----------- --------------- Consolidated Graphics, Inc. ** $0 $3,069 ** **
* Due to a late contribution of participant deferrals to the Plan, the Plan was considered to have loaned assets to the employer. The loan commenced on January 16, 1998 and was refunded on November 2, 1998. The principal amount was $2,881 and the deemed interest rate was 7.87% annualized; therefore, the amount involved is $3,069. The transaction was corrected when the loan was repaid with interest. The employer is preparing and will file Form 5330 to pay the excise tax associated with the transaction. ** Not applicable See accompanying independent auditors' report. 11 SIGNATURE PURSUANT TO THE REQUIREMENTS OF THE SECURITIES EXCHANGE ACT OF 1934, THE TRUSTEE (OR OTHER PERSONS WHO ADMINISTER THE PLAN) HAS DULY CAUSED THIS ANNUAL REPORT TO BE SIGNED ON ITS BEHALF BY THE UNDERSIGNED HEREUNTO DULY AUTHORIZED. Consolidated Graphics, Inc. Employee 401(k) Savings Plan By: /s/ RONALD E. HALE, JR. Ronald E. Hale, Jr. Member of the Consolidated Graphics, Inc. Employee 401(k) Savings Plan Retirement Committee Date: July 14, 1999 12 EX-23.1 2 CONSENT OF INDEPENDENT AUDITORS We consent to the incorporation by reference in the registration statement (File No. 333-18435) on Form S-8 of Consolidated Graphics, Inc. of our report dated July 9, 1999, relating to the statement of net assets available for benefits of Consolidated Graphics, Inc. Employee 401(k) Savings Plan (the "Plan") as of December 31, 1998 and 1997, the related statement of changes in net assets available for benefits with fund information for the year ended December 31, 1998, and the related supplemental schedules, which report appears in the Plan's Annual Report on Form 11-K for the year ended December 31, 1998. /s/ KPMG LLP KPMG LLP Houston, Texas July 9, 1999 -----END PRIVACY-ENHANCED MESSAGE-----