Consolidated Graphics Reports Q1 Loss, Sales Up 2% Excluding Acquisitions
Press release from the issuing company
HOUSTON--July 24, 2002--Consolidated Graphics, Inc. today announced results for its first quarter ended June 30, 2002.
Revenues in the June quarter were $176.1 million compared with $165.6 million in the March quarter and $164.4 million a year ago. Net income for the quarter, before the cumulative effect of a change in accounting principle reflecting the adoption of SFAS No. 142, was $5.1 million, or $.37 per diluted share, compared with $3.7 million, or $.28 per diluted share, in the March quarter and $5.1 million or $.38 per diluted share, a year ago. After giving effect to an after-tax goodwill impairment charge of $74.4 million, or $5.48 per diluted share, due to the implementation of SFAS No. 142, the Company reported a loss of $69.3 million, or $5.11 per diluted share. Results for the March quarter and the prior June quarter each include after-tax goodwill amortization expense of $.8 million, or $.06 per diluted share.
"We are pleased with our results despite sustained weakness in the market. Revenues for the quarter showed a 2% sequential increase, excluding acquisitions," commented Joe R. Davis, Chairman and Chief Executive Officer. "Also, operating margins showed signs of stabilization, with June quarter margins of 6.3% versus 6.4% for the March quarter, adjusted for goodwill amortization. This slight decrease in margins was attributable to our recent acquisitions and is consistent with our historical pattern of gradual operating improvement of acquired companies over time."
Mr. Davis added, "I am also pleased to report that we had strong operating cash flow for the quarter of $35.5 million, which further strengthened our balance sheet. We are well positioned to capitalize on long-term growth opportunities, such as acquisitions, when they arise."
Mr. Davis concluded, "Going forward, we will continue to focus on expanding our market share and leveraging our strengths. We continue to outperform our competitors in terms of sales growth and profit margins; however, the business environment remains difficult to predict at this time. As such, we will maintain our conservative outlook with respect to financial guidance. If the current market conditions hold, we anticipate our September quarter revenues and earnings to be in line with or slightly above our June quarter."
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