HOUSTON, Feb. 2 -- Consolidated Graphics, Inc. today announced results for its third quarter ended December 31, 2004. Revenue for the December quarter was $208.6 million, up 9% compared to $191.1 million in the September quarter and up 13% compared to $184.2 million a year ago. Net income for the December quarter was $9.7 million, or $.68 per diluted share, representing increases of 29% and 28% compared to net income of $7.6 million and diluted earnings per share of $.53 in the September quarter. Compared to the December quarter a year ago, net income increased 78% and diluted earnings per share increased 74%. Overall, December quarter revenues were at a record level for Consolidated Graphics, and operating margins improved to 7.8%. For the nine months ended December 31, 2004, total sales were $581.3 million, up 11% compared to $524.7 million for the comparable period a year ago. Net income for the first nine months of this year was $24.1 million, or $1.70 per diluted share, up 75% and 70% compared to $13.8 million and $1.00 per diluted share last year. "We are very pleased to report third quarter results that significantly exceeded our expectations," commented Joe R. Davis, Chairman and Chief Executive Officer. "In addition to capturing additional market share through internal growth and acquisitions, we benefited from election-related printing that was much more robust than we had projected. Of our 13% quarterly increase in revenue over the year-ago levels, internal growth and acquisitions each contributed 3% and election-related printing contributed 7%. This quarter's results evidence the scale advantages of our industry leading market position and our commitment to drive top-line growth and improve operating margins." Mr. Davis added, "We continue to strengthen our balance sheet, which further increases our ability to grow our business through investments in technology and a disciplined acquisition program. Capital expenditures totaled $8.0 million in the quarter, bringing our year-to-date investment in new technology and equipment to $19.0 million. On the acquisition front, the pending addition of the seven Kelmscott companies will significantly expand our Midwest and West Coast presence. We also continue to evaluate a number of other acquisition opportunities that would complement our national footprint and enhance our customer service offerings." Mr. Davis concluded, "For the fourth quarter, and consistent with our performance throughout the year, we expect to use our business model to leverage continuing improvement in economic and industry conditions to generate strong year-over-year growth in revenues and diluted earnings per share. Revenues are projected to increase 5% over year-ago levels to $192 million, with diluted earnings per share increasing 30% to $.57. These projected results do not include contribution from any acquisitions we may complete during the quarter, including Kelmscott."