Consolidated Graphics Reports Earnings, Margins Down
Press release from the issuing company
HOUSTON---Consolidated Graphics, Inc. (NYSE:CGX - news) today announced final results for the third quarter ended December 31, 2000. As previously announced, third quarter financial results were affected by softness in the general economy and print markets in particular.
Sales for the third quarter increased 8% over the prior year to $171.2 million. Sales for the first nine months of this fiscal year grew 13% to $517.2 million. However, operating margins decreased to 8.4%, down from 11.5% in the third quarter last year. Operating income and net income for the quarter were $14.3 million and $5.5 million, respectively, compared to $18.2 million and $8.9 million in the prior year. Diluted earnings per share were $.42 for the third quarter, compared to $.56 in the same period last year.
``Even though soft print market conditions during the holiday period forced us to price aggressively and protect market share, we remain optimistic about our long-term prospects for the Company,'' stated Joe R. Davis, Chairman and Chief Executive Officer. ``The Company will take appropriate actions in response to this challenge.''
``As we discussed last week, we are preparing plans to adjust to these market conditions,'' commented Charles F. White, President and Chief Operating Officer. ``Additionally, consolidation within our organization may be required at certain of our companies, in a few of our markets, and we are developing plans to implement those actions where necessary. We remain confident that strategies already in place for national account sales, for marketing of e-commerce products and services, and for management development should enhance our revenue base and lead to profitable growth.''
Mr. Davis concluded, ``Given current market conditions and in light of our initiatives already underway, we believe that our financial results for the next few quarters will improve gradually over recent performance. We intend to streamline our operations and infrastructure over the next few quarters so that we can capitalize on future opportunities.''
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