Consolidated Graphics Reports Fourth Quarter and Year-End Results
Press release from the issuing company
HOUSTON- April 25, 2001--Consolidated Graphics, Inc. (NYSE:CGX - news) today announced results for its fourth quarter and year ended March 31, 2001.
Total revenues for the fourth quarter were $166.2 million compared to $167.8 million in the prior year. As previously announced, the Company recorded a $4.1 million after tax special charge, or $.31 per share, for savings initiatives in the fourth quarter. Before the special charge, net results for the fourth quarter were $4.8 million, or $.36 per share, compared to $8.2 million, or $.58 per share, in the prior year. Operating income before the special charge for the 2001 fourth quarter was $13.6 million. Net income, after the 2001 special charge, was $665,000, or $.05 per share, for the March quarter compared to $8.2 million, or $.58 per share, in the prior year.
For the year ended March 31, 2001, sales increased 9% to $683.4 million. Net income before the special charge was $26.2 million, or $1.99 per share, versus $38.5 million, or $2.51 per share, last year. Operating income before the special charge for the year was $64.6 million. Net income, including the 2001 fourth quarter charge, was $22.1 million, or $1.68 per share, compared to $38.5 million, or $2.51 per share, last year.
"To counteract the sharp business slowdown we first experienced in November and December, we successfully implemented several initiatives designed to reduce costs and strengthen our operations,'' commented Charles F. White, President and Chief Operating Officer. "We consolidated operations at three of our companies. We also took action throughout our organization to aggressively pursue sales and reduce costs at the same time. As a result of these efforts, we continued to grow market share in a difficult operating environment and achieved an operating margin of 8.2% in the fourth quarter, even though we had to price aggressively.''
Joe R. Davis, Chairman and Chief Executive Officer, stated, "While our overall performance continues to be impacted by the general economic slowdown and soft commercial print demand, we are taking the necessary steps within our operating companies to strengthen our core business and to position us for future growth. We continue to make strong strides in our e-commerce products and services marketed through CGXmedia, particularly the COIN (Custom Ordering Interactive Network) and OPAL (Online Private Asset Library) products. These products not only represent an additional revenue stream, but they also serve to drive print sales throughout our nationwide network of printing companies.''
Mr. Davis concluded, "With the benefit of increased visibility into the 2001 calendar year and a better sense of how our companies may perform in a slower market environment, we anticipate that the actions we have taken to reduce costs and drive revenue and market share gains will improve the Company's growth and profitability for its shareholders. Accordingly, given the current economic environment, we believe that our financial results for the next few quarters will improve gradually over recent performance.''
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