EX-99.1 2 c71399exv99w1.htm EXHIBIT 99.1 Filed by Bowne Pure Compliance
 

Exhibit 99.1
     
FOR:
  Consolidated Graphics, Inc.
 
   
CONTACT:
  Joe R. Davis
 
  Chairman and Chief Executive Officer
 
  Consolidated Graphics, Inc.
 
  (713) 787-0977
 
   
 
  Christine Mohrmann/Alexandra Tramont
 
  FD
 
  (212) 850-5600
For Immediate Release
CONSOLIDATED GRAPHICS REPORTS SEPTEMBER QUARTER 2008 FINANCIAL
RESULTS IN LINE WITH RECENT GUIDANCE

Second Quarter Revenues Up 11% to $259.7 Million —
Board approves new $50 million share repurchase program —
HOUSTON, TEXAS — October 31, 2007 — Consolidated Graphics, Inc. (NYSE: CGX) today announced financial results for its second quarter ended September 30, 2007.
Revenue for the September quarter was $259.7 million, up 11% compared to $234.2 million for the same period a year ago. Net income for the September quarter was $13.3 million, down 3% compared to net income of $13.7 million for the same period a year ago, resulting in diluted earnings per share of $.98 which remained constant compared to the same period a year ago.
For the six months ended September 30, 2007 revenue was $518.3 million, up 10% compared to $472.7 million for the same period a year ago. Diluted earnings per share for the first six months of this year were $1.94 compared to $1.96 in the same period a year ago.
On October 29, 2007, the Board of Directors authorized a new common share repurchase program for the purchase of the Company’s issued and outstanding common shares up to an aggregate of $50 million. The new share repurchase program will expire on October 31, 2008 and allows the Company to repurchase shares of its common stock in open-market purchases as well as privately negotiated transactions, pursuant to applicable securities regulations.
Commenting on the results for the quarter, Joe R. Davis, Chairman and Chief Executive Officer of Consolidated Graphics stated, “The results for the September quarter were in line with revised expectations announced earlier this month. As we said previously, we believe softness in the U.S. economy had a negative impact on demand from many of our customers during the quarter. In addition, both our sales and income were negatively impacted by on-going labor negotiations at certain of our facilities.”
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CONSOLIDATED GRAPHICS REPORTS SECOND QUARTER 2008
RESULTS
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Mr. Davis continued, “While we remain very confident in our long-term strategy for growing sales and income, we are making some short-term cost adjustments to enhance profitability. With our strong balance sheet and cash flows, we expect continued growth through investments in new technology that further differentiates our customer offerings. We will continue to evaluate acquisition opportunities as well as strategic share repurchases as we seek to maximize our return to shareholders.”
Mr. Davis concluded, “We expect sales to grow sequentially in the third quarter due primarily to the effects of seasonality in some of the sectors we service. Confirming our guidance announced earlier this month, for the December quarter, we are projecting quarterly revenues of between $285 and $295 million and diluted earnings per share of between $1.22 and $1.32. We expect earnings improvement in our December quarter due primarily to higher expected sales volume and a lower effective tax rate. While we are optimistic that some of our additional cost adjustment measures will have a positive impact on operating margins in the near future, we are currently projecting our operating margin in the December quarter to be comparable to the September quarter.”
Consolidated Graphics, Inc. will host a conference call today, October 31, 2007, at 11:00 a.m. Eastern Time, to discuss its second quarter 2008 results. The conference call will be simultaneously broadcast live over the Internet. Listeners may access the live Web cast at the Company’s homepage, www.cgx.com.
Consolidated Graphics (CGX), headquartered in Houston, Texas, is one of North America’s leading general commercial printing companies. With 68 printing facilities strategically located across 27 states and Canada, CGX offers an unmatched geographic footprint with extensive capabilities supported by an unparalleled level of convenience, efficiency and service. With locations in or near virtually every major U.S. market, as well as Toronto, CGX offers highly responsive service and convenient access to a vast capabilities network through a single point of contact at the local level.
CGX has the largest and most technologically advanced sheetfed printing capability in North America, a sizeable and strategically important web printing capability, industry-leading digital printing services, a rapidly growing number of fulfillment centers and proprietary Internet-based technology solutions. CGX offers the unique ability to respond to all printing-related needs no matter how large, small, specialized or complex. For more information, visit the Consolidated Graphics Web site at www.cgx.com.
This press release contains forward-looking statements, which involve known and unknown risks, uncertainties or other factors that could cause actual results to materially differ from the results, performance or other expectations expressed or implied by these forward-looking statements. Consolidated Graphics’ expectations regarding future sales and profitability assume, among other things, stability in the economy and reasonable growth in the demand for its products, the continued availability of raw materials at affordable prices, retention of its key management and operating personnel, satisfactory labor relations, as well as other factors detailed in Consolidated Graphics’ filings with the Securities and Exchange Commission. The forward-looking statements, assumptions and factors stated or referred to in this press release are based on information available to Consolidated Graphics today. Consolidated Graphics expressly disclaims any duty to provide updates to these forward-looking statements, assumptions and other factors after the day of this release to reflect the occurrence of events or circumstances or changes in expectations.
(Table to follow)

 

 


 

CONSOLIDATED GRAPHICS REPORTS SECOND QUARTER 2008
RESULTS
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CONSOLIDATED GRAPHICS, INC.
Consolidated Income Statements

(In thousands, except per share amounts)
(unaudited)
                                 
    Three Months Ended     Six Months Ended  
    September 30,     September 30,  
    2007     2006     2007     2006  
 
                               
Sales
  $ 259,666     $ 234,236     $ 518,312     $ 472,661  
Cost of Sales
    193,402       171,780       383,871       346,200  
 
                       
Gross Profit
    66,264       62,456       134,441       126,461  
Selling Expenses
    25,231       23,543       51,665       47,900  
General and Administrative Expenses
    19,084       15,013       38,396       32,228  
Other (Income) Expense, net
    (1,230 )           (3,580 )      
 
                       
Operating Income
    23,179       23,900       47,960       46,333  
Interest Expense, net
    2,449       1,783       4,343       3,168  
 
                       
Income before Taxes
    20,730       22,117       43,617       43,165  
Income Taxes
    7,444       8,427       16,774       15,745  
 
                       
Net Income
  $ 13,286     $ 13,690     $ 26,843     $ 27,420  
 
                       
 
                               
Earnings Per Share
                               
Basic
  $ 1.01     $ 1.01     $ 2.00     $ 2.01  
Diluted
  $ .98     $ .98     $ 1.94     $ 1.96  
 
                               
Weighted Average Shares Outstanding
                               
Basic
    13,110       13,513       13,413       13,609  
Diluted
    13,502       13,966       13,826       13,984  
 
                               
Effective Income Tax Rate
    35.9 %     38.1 %     38.5 %     36.5 %

 

 


 

CONSOLIDATED GRAPHICS REPORTS SECOND QUARTER 2008
RESULTS
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CONSOLIDATED GRAPHICS, INC.
Consolidated Income Statements

(In thousands, except per share amounts)
(unaudited)
                 
    Three Months Ended     Three Months Ended  
    September 30,     June 30,  
    2007     2007  
 
               
Sales
  $ 259,666     $ 258,646  
Cost of Sales
    193,402       190,469  
 
           
Gross Profit
    66,264       68,177  
Selling Expenses
    25,231       26,434  
General and Administrative Expenses
    19,084       19,312  
Other (Income) Expense, net
    (1,230 )     (2,350 )
 
           
Operating Income
    23,179       24,781  
Interest Expense, net
    2,449       1,894  
 
           
Income before Taxes
    20,730       22,887  
Income Taxes
    7,444       9,330  
 
           
Net Income
  $ 13,286     $ 13,557  
 
           
 
               
Earnings Per Share
               
Basic
  $ 1.01     $ .99  
Diluted
  $ .98     $ .96  
 
               
Weighted Average Shares Outstanding
               
Basic
    13,110       13,716  
Diluted
    13,502       14,162  
 
               
Effective Income Tax Rate
    35.9 %     40.8 %
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