(See a quick comment from Dr. Joe Webb at the bottom of this release.) HOUSTON--April 23, 2003--Consolidated Graphics, Inc. today announced results for its fourth quarter and year-ended March 31, 2003. Revenues for the March quarter were $166.1 million, compared to $186.3 million in the December quarter and $165.6 million a year ago. Net loss for the March quarter was $29.1 million, or $2.13 per diluted share, compared to net income of $5.7 million, or $.42 per diluted share, in the December quarter and $3.7 million, or $.28 per diluted share, a year ago. Included in the 2003 March results is a pre-tax impairment of goodwill of $38.0 million ($31.2 million after-tax, or $2.28 per diluted share) pursuant to the Company's annual impairment test under SFAS 142 as of March 31, 2003. For the year-ended March 31, 2003, revenues were $710.3 million compared to $643.9 million in 2002. Net loss was $87.3 million, or $6.47 per diluted share, versus net income of $16.7 million, or $1.25 per diluted share, a year ago. Included in the results for 2003 are the March quarter's goodwill impairment and the effect of the transitional goodwill impairment of $74.4 million, after-tax, which was recorded in the June quarter upon the adoption of SFAS 142. Together, these items impacted 2003 results by $105.6 million, or $7.82 per diluted share. "Our fourth quarter results are in the upper range of the revised guidance we provided in March," commented Joe R. Davis, Chairman and Chief Executive Officer. "As previously reported, our results were impacted by declining industry conditions, including weakened local economies, contraction of corporate print spending, and intense pricing pressure. In response to these factors, we made location specific head count reductions during the quarter and have developed plans to further reduce costs if industry conditions warrant. While we are disappointed in these results, we are encouraged by the March quarter's strong cash flow from operations of $22.8 million." Mr. Davis continued, "2003 was a difficult year for our business and for our industry. Nevertheless, we delivered a record $95.4 million in cash flow from operations, an increase of 37% from the prior year, demonstrating the strength of our business model despite severe economic conditions. With this cash flow, we were able to reduce debt by $70.0 million, or 30%, make $21.5 million in strategic investments to maintain our technology advantage and spend $6.2 million on acquisitions to grow our footprint and expand our service capabilities. However, industry conditions remain challenging, and although we saw seasonal improvement in March, we continue to have a cautious outlook pending further indications of an improving U.S. economy. For the June quarter, we expect revenues to be in-line with the prior year and operating margins to be slightly improved from the March quarter, resulting in earnings per diluted share of approximately $.22." ------ Free WTT Analysis: Below is a quick take on this news from Dr. Joe Webb. Premium Access Members can view more analysis in his weekly column on Friday, appropriately called “Fridays with Dr. Joe”. "The loss reported by Consolidated Graphics was expected, but more interesting was the fact that they spent more than $20 million in capital expenses. For the quarter reported, this was 3% of their sales. This is less than half the historical rate for companies of this size, and is consistent with the reports by Quebecor, Bowne, and others over the past few months."