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Consolidated Graphics Reports 9% Growth

Thursday, May 08, 2008

Press release from the issuing company

HOUSTON, May 7 -- Consolidated Graphics, Inc. today announced financial results for its fourth quarter and year-ended March 31, 2008.

Revenue for the March quarter was $287.5 million, up 9% compared to $263.9 million for the same period a year ago. Net income for the March quarter was $13.1 million, or $1.15 diluted earnings per share, compared to $6.9 million, or $.50 diluted earnings per share, for the same period a year ago. Net income for the March 2007 quarter included the impact of an after-tax, non-cash impairment of $7.8 million, or $.56 diluted earnings per share. Excluding this impairment, net income for the March 2007 quarter was $14.8 million, or $1.06 diluted earnings per share. Included in operating income during the March 2008 quarter was a foreign currency transaction net loss of $.8 million, primarily due to certain transactions of our Canadian subsidiary denominated in U.S. dollars.

For the year ended March 31, 2008, revenue was a record $1.1 billion, up 9% compared to $1.0 billion a year ago. Net income in 2008 was $59.3 million, compared to $50.7 million a year ago, resulting in record diluted earnings per share of $4.63, versus $3.65 in the prior year. Excluding the impairment charge mentioned above, net income in fiscal 2007 was $58.6 million, or $4.21 diluted earnings per share. Included in the operating income in fiscal 2008 was a foreign currency transaction net gain of $3.1 million.

Joe R. Davis, Chairman and Chief Executive Officer of Consolidated Graphics, commented, "We are very proud to report record revenue and diluted earnings per share for the year. Acquisitions as well as continued growth in Strategic Sales allowed us to post solid annual revenue growth of 9%. For the year, Strategic Sales, consisting of National and CGXSolutions sales, grew 28% to $196.1 million. In March, we acquired PBM Graphics, Inc. located in Durham, North Carolina, our largest acquisition to date. PBM is a top-notch commercial printer who is the largest producer of Pokemon cards in the world. Our acquisition pipeline remains sizable today."

Mr. Davis concluded, "Looking ahead to the June quarter, we expect quarterly revenue of between $300 and $310 million and diluted earnings per share of between $1.10 and $1.20. For the June quarter we expect our effective tax rate to be approximately 38%."

During the March quarter, the Company continued the recent trend of investing in digital presses and complementary technology. During 2008, capital expenditures were $82.4 million, with digital press investments representing 26% of the total.

Consolidated Graphics, Inc. will host a conference call today, May 7, 2008, at 11:00 a.m. Eastern Time, to discuss its fourth quarter and year-ended March 31, 2008 results. The conference call will be simultaneously broadcast live over the Internet. Listeners may access the live Web cast at the Company's homepage, http://www.cgx.com.

Consolidated Graphics (CGX), headquartered in Houston, Texas, is one of North America's leading general commercial printing companies. With 70 printing facilities strategically located across 27 states and Canada, CGX offers an unmatched geographic footprint with extensive capabilities supported by an unparalleled level of convenience, efficiency and service. With locations in or near virtually every major U.S. market, as well as Toronto, CGX offers highly responsive service and convenient access to a vast capabilities network through a single point of contact at the local level.

CGX has the largest and most technologically advanced sheetfed printing capability in North America, a sizeable and strategically important web printing capability, industry-leading digital printing services, a rapidly growing number of fulfillment centers and proprietary Internet-based technology solutions. CGX offers the unique ability to respond to all printing-related needs no matter how large, small, specialized or complex. For more information, visit the CGX Web site at http://www.cgx.com.

This press release contains forward-looking statements, which involve known and unknown risks, uncertainties or other factors that could cause actual results to materially differ from the results, performance or other expectations expressed or implied by these forward-looking statements. Consolidated Graphics' expectations regarding future sales and profitability assume, among other things, stability in the economy and reasonable growth in the demand for its products, the continued availability of raw materials at affordable prices, retention of its key management and operating personnel, satisfactory labor relations, as well as other factors detailed in Consolidated Graphics' filings with the Securities and Exchange Commission. The forward-looking statements, assumptions and factors stated or referred to in this press release are based on information available to Consolidated Graphics today. Consolidated Graphics expressly disclaims any duty to provide updates to these forward-looking statements, assumptions and other factors after the day of this release to reflect the occurrence of events or circumstances or changes in expectations.

 

 

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