Consolidated Graphics Reports Q2 Revenue Increase of 5%
Thursday, October 28, 2004
HOUSTON, Oct. 27 -- Consolidated Graphics, Inc. today announced results for its second quarter ended September 30, 2004. Revenue for the September quarter was $191.1 million, up 5% compared to $181.5 million in the June quarter and up 9% compared to $174.6 million a year ago. Net income for the September quarter was $7.6 million, or $.53 per diluted share, representing increases of 11% and 10% compared to the June quarter's net income of $6.8 million and $.48 per diluted share. Compared to the September quarter a year ago, net income increased 59% and diluted earnings per share increased 56%. Overall, September quarter revenues were at a record level for Consolidated Graphics, and operating margins improved for the sixth consecutive quarter. For the six months ended September 30, 2004, total sales were $372.7 million, up 9% compared to $340.5 million for the comparable period a year ago. Net income for the first six months of this year was $14.4 million, or $1.01 per diluted share, up 73% and 66% compared to last year's $8.3 million and $.61 per diluted share. "This quarter's results clearly exemplify the strength and breadth of our business model," commented Joe R. Davis, Chairman and Chief Executive Officer. "All of the elements of our business strategy measurably contributed in the quarter. Of the total increase in revenues from the year-ago quarter, our acquisition program contributed 3% and our internal growth strategy contributed 6%, which includes revenue from election related printing of 3%. I am especially pleased we were able to leverage this revenue growth into further improvement in operating margins." Mr. Davis continued, "Going forward, we intend to further capitalize on these same growth strategies. We are evaluating various acquisition opportunities in accordance with our disciplined approach to acquisitions. Our multi-faceted strategy to generating internal growth consists of further developing national sales and cross-selling activity, capturing market opportunities and capitalizing on further improvement in economic and industry conditions. At the same time, we remain very committed to controlling costs and operating as efficiently as possible." Mr. Davis concluded, "Our strong balance sheet and market-leading position give us confidence in achieving long-term growth in sales and profits. In the near term, while our recent performance trends have been positive, continued improvement in economic and industry conditions is an important factor in our ability to sustain our momentum. In the upcoming December quarter, we expect to generate revenue of $194 million and earnings per diluted share of $.54."