Consolidated Graphics Reports Q3 Results, Quarterly Revenue of $186.3 Million
Press release from the issuing company
HOUSTON--Jan. 22, 2003--Consolidated Graphics, Inc. today announced results for its third quarter ended December 31, 2002.
Revenues in the December quarter were $186.3 million, up 2.5% compared with $181.8 million in the September quarter and up 21.1% compared with $153.8 million a year ago. Operating margins were 6.3% for the third consecutive quarter. Net income for the December quarter was $5.7 million, or $.42 per diluted share, compared with $5.4 million, or $.40 per diluted share, in the September quarter and $3.6 million, or $.27 per diluted share, including after-tax goodwill amortization expense of $1.2 million, or $.09 per diluted share, a year ago.
For the nine months ended December 31, 2002, total revenues were $544.2 million, up 13.8% compared to $478.3 million for the comparable period a year ago. Net income for the first nine months of this fiscal year, before the cumulative effect of a change in accounting principle reflecting the adoption of SFAS No. 142, was $16.2 million, or $1.20 per diluted share, compared to $13.0 million, or $.97 per diluted share, including after-tax goodwill amortization expense of $3.5 million, or $.26 per diluted share, in the same period last year. After giving effect to an after-tax goodwill impairment charge of $74.4 million, or $5.51 per diluted share, due to the implementation of SFAS No. 142, the Company reported a loss of $58.2 million, or $4.31 per diluted share, in the first nine months of this fiscal year.
"We are pleased to report that our December quarter results were ahead of our internal expectations, with this quarter's revenue representing a record level for the Company," commented Joe R. Davis, Chairman and Chief Executive Officer. "Our sequential revenue growth was generated by both existing and newly acquired companies and reflects our efforts to grow market share and improve the performance of our recently acquired companies."
Mr. Davis stated, "In the December quarter, we achieved internal revenue growth of 6.5% and EPS growth, adjusted for goodwill amortization expense, of 17% compared to the same period last year. It is important to note, however, that our year-over-year comparables benefited from the particularly weak December quarter last year, which was impacted by the events of September 11th. We are also pleased to report that we generated $22.3 million in operating cash flow in the December quarter. For the first nine months of fiscal 2003, operating cash flow was $72.6 million, already exceeding the record amount for the full year of 2002."
Mr. Davis continued, "Despite this quarter's improved results, it is clear that unstable economic conditions continue to adversely impact the commercial printing industry. As a result, operating margins, while more stable, remain at depressed levels. Based on recent reports about sustained near-term weakness in the U.S. economy, we have a conservative outlook for the March quarter and expect that operating margins and earnings per share will be in line with the December quarter."
Mr. Davis concluded, "A strong balance sheet and the inherent strength of our business model are the primary reasons for Consolidated Graphics' continued success. We remain dedicated to identifying ways to improve our business, while simultaneously evaluating a number of acquisition opportunities. We are confident in our ability to achieve profitable growth and outperform the industry."
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