Consolidated Graphics Reports Q1, Swings to Profit
Thursday, July 24, 2003
HOUSTON--July 23, 2003--Consolidated Graphics, Inc. today announced results for its first quarter ended June 30, 2003. Revenues for the June quarter were $165.8 million, compared to $166.1 million in the March quarter and $176.1 million a year ago. Net income for the June quarter was $3.6 million, or $.26 per diluted share, compared to a net loss of $29.1 million, or $2.13 per diluted share, in the March quarter and a net loss of $69.3 million, or $5.11 per diluted share, a year ago. Included in the March quarter results is a pre-tax goodwill impairment charge of $38.0 million pursuant to the Company's annual impairment test under SFAS 142 as of March 31, 2003. Included in the prior year's June quarter results is an after-tax charge of $74.4 million, or $5.48 per diluted share, for the cumulative effect of accounting change upon the adoption of SFAS No. 142. "During the June quarter, we were able to achieve a number of our goals for the quarter despite a very difficult and uncertain market environment," commented Joe R. Davis, Chairman and Chief Executive Officer. "First, we exceeded our earnings expectations by 18% and improved operating margins to 4.7%, primarily as a result of our continued commitment to managing costs. Second, we generated operating cash flow of $20.2 million, further strengthening our balance sheet. And third, we expanded our presence in the Cleveland area by acquiring a leader in that market and merging it into one of our Company's existing operations. As a result of this transaction, our customers in this region will now have access to an unparalleled array of products and services." Mr. Davis continued, "We are disappointed by our industry's slow recovery and we recognize the impact this has had on our results and our ability to provide solid guidance. Nevertheless, we continue to have a great deal of confidence in our Company's proven business model and financial strength. We must necessarily take a cautious view of the upcoming quarter and therefore expect sequentially flat operating margins with diluted earnings per share of approximately $.28."