Consolidated Graphics Earnings, Gains Market Share Despite Weakness
Thursday, October 25, 2001
HOUSTON--Oct. 24, 2001--Consolidated Graphics, Inc. today reported results for its second quarter and six months ended September 30, 2001. Sales for the September quarter were $160.2 million compared to $164.4 million in the June quarter. Net income was $4.3 million, or $.32 per diluted share, versus June quarter net income of $5.1 million, or $.38 per share. Effects of the September 11th tragedy combined with the current economic slowdown are evident in the September quarter results. Revenues for the September quarter last year were $172.5 million. Net income for the September quarter last year was $7.9 million, or $.61 per diluted share. For the six months ended September 2001, total revenues were $324.6 million compared to $346.0 million for the first six months of last year. Net income for the six-month period was $9.4 million or $.70 per diluted share, compared to $16.0 million, or $1.20 per share, in the same period last year. "Our business for the second quarter was tracking according to plan through early September,'' commented Joe R. Davis, Chairman and Chief Executive Officer. "At that time we appeared to be on target to achieve earnings levels ahead of the June quarter. However, the September 11th terrorist acts had an immediate effect as business activity slowed dramatically. As a result, sales for the September quarter were down from the June quarter by 3% and our margins and earnings were adversely impacted.'' "In spite of these events and a weak economy, we continued to gain market share, pursue our national accounts strategy, and expand our CGXmedia initiatives,'' stated Charles F. White, President and Chief Operating Officer. "We added 10 new national account customers during the quarter and expanded the number of customers taking advantage of our COIN and OPAL e-commerce printing solutions to 116, an increase of 6 over the June quarter.'' "We are encouraged by the improvement toward more normal business activity heading into our December quarter but remain conservative as to our future outlook,'' continued Mr. Davis. "Based on current market conditions, we expect that December quarter earnings could approximate $.25 per share. However, if the commercial printing market continues to improve to pre-September 11th levels, we could see December quarter earnings above the $.32 earned this quarter.'' Mr. Davis concluded, "We continue to strengthen the Company, both financially and operationally, so that our business can perform well, even in times of uncertainty. We have already taken steps to reduce costs and enhance our competitive advantages in the industry. Our CGXmedia products and our strong national presence give us the ability to serve both local businesses and national corporations. Accordingly, we look forward to long-term profitable growth.''