By Trevor Shackelford August 3, 2005 -- Consolidated Graphics (NYSE: CGX) announced their first quarter results today. Sales during the company’s first quarter were a record $209.9 million, up 16% from last year driven by acquisitions. Operating income was $15.4 million, or 7.4% adjusted operating margin. Net income for the quarter was $8.7 million, or $0.61 per diluted share up 28% from last year. The company was pleased with the results which were in line with expectations for the quarter. The company also signaled that announcements about upcoming acquisitions could happen in the near future. Topics of this Summary Quarter Highlights Guidance Raine Radar Q & A Quarter Highlights First full quarter with new acquisition Kelmscott Communications The company continues to invest in its E-solutions platform, which links customer procurement to CGX. The number of customer sites has grown 3% sequentially. Total debt at the end of the quarter was $107.2 million, down $12.3 million from last quarter. Total debt to capitalization is now 27%. EBITDA for the quarter was $25.9 million, up 18% from last year Guidance Consolidate Graphics projects 2006 second quarter revenues to be $213 million, up 11% from last year. The company expects diluted EPS of $0.62 next quarter, up 17% over last year. Margins are expected to improve as acquisitions continue to be integrated into the company. Raine Radar There has been no real change for the company since last quarter. Revenue is up from the Kelmscott acquisition, and total debt has come down. It is a little surprising that there were no acquisitions announced during the last three months based on the talk during the last call, but the company continues to stress that its M&A activities are a top priority. Q & A The average Consolidated Graphics job is $6,000. According to the company, the acquisition pipeline is continuing to grow. The company does not see a potential postal rate increase as having much of an effect on the business, since most mailing jobs are shorter more targeted runs. Much of the analysis of potential acquisitions has to do with the culture of the candidate as much as potential growth opportunities. Raising operating margin to at least 10% continues to be a top priority for the company. Trevor Shackelford is an Associate at Raine Media, Inc. and can be reached at [email protected]