Consolidated Graphics Reports Increased Revenue in Q2
Press release from the issuing company
HOUSTON, Nov. 2 -- Consolidated Graphics, Inc. today announced financial results for its second quarter and six months ended September 30, 2005.
Revenue for the September quarter was $221.0 million, up 16% compared to $191.1 million a year ago. Net income for the September quarter was $9.3 million, or $.66 per diluted share, representing increases of 23% and 25% compared to net income of $7.6 million and diluted earnings per share of $.53 a year ago. Overall revenues this quarter were at a record level for Consolidated Graphics.
For the six months ended September 30, 2005, total sales were $430.9 million, up 16% compared to $372.7 million for the comparable period a year ago. Net income for the first six months of this year was $18.1 million, or $1.27 per diluted share, up 25% and 26% compared to net income of $14.4 million and diluted earnings per share of $1.01 a year ago.
"We are very pleased to report strong financial results for our September quarter," commented Joe R. Davis, Chairman and Chief Executive Officer. "These results were ahead of our expectations, with significant growth in revenue driven by acquisitions and 2.2% internal growth. We leveraged our revenue growth into a proportionately larger increase in net income and earnings per diluted share on the strength of an improvement in operating margins to 7.4%, up from 7.3% in the June quarter and 7.1% a year ago."
Mr. Davis added, "Other highlights in the September quarter included the announcement of a letter of intent to acquire Graphcom, Inc. in Atlanta, Georgia. We also expanded our acquisition team with the hiring of Jim Cohen, an experienced mergers and acquisitions executive, in response to our growing number of acquisition opportunities."
Mr. Davis concluded, "Cash flow is a key element in our ability to capitalize on our industry leading market position and financial strength to generate long term growth in sales and profits. In the September quarter, we invested $8.7 million in new technology and equipment, reduced our total debt outstanding by $1.5 million and repurchased 164,100 shares of our common stock for $6.4 million. For the December quarter, we project record quarterly revenues of $225 million and diluted earning per share of $.68."
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