HOUSTON, Feb. 1 -- Consolidated Graphics, Inc. today announced financial results for its third quarter and nine months ended December 31, 2005.
Revenue for the December quarter was $226.2 million, up 8% compared to $208.6 million a year ago. Net income for the December quarter was $9.9 million, or $.71 per diluted share, representing increases of 2% and 4% compared to net income of $9.7 million and diluted earnings per share of $.68 a year ago. Both revenues and diluted earnings per share this quarter were at a record level for Consolidated Graphics.
For the nine months ended December 31, 2005, total sales were $657.1 million, up 13% compared to $581.3 million for the same period a year ago. Net income for the first nine months of this year was $28.0 million, or $1.98 per diluted share, both representing increases of 16% compared to net income of $24.1 million and diluted earnings per share of $1.70 a year ago.
"We are very pleased to report December quarter results that exceeded our expectations," commented Joe R. Davis, Chairman and Chief Executive Officer. "Overall, our business continues to steadily grow and improve. Our 8% revenue growth in the quarter is very strong considering that the year-ago period benefited from election-related printing totaling $13.0 million that did not recur in the current quarter. Acquisitions and a 39% year-over-year increase in National Sales were the leading drivers of our top-line growth, enabling us to achieve operating leverage and expand our operating income margin to 7.7% in the December quarter from 7.4% in the September quarter."
Mr. Davis added, "I am also pleased to report that we continue to be successful in our acquisition efforts. In the December quarter, we completed the acquisition of Graphcom in Atlanta, announced a letter-of-intent to acquire Nies-Artcraft Printing in St. Louis, which we expect to complete very shortly, and grew our acquisition pipeline substantially."
Mr. Davis concluded, "For the March quarter, we project quarterly revenues to increase 11% from the prior year to $220 million, with diluted earnings per share increasing 17% to $.70. These projected results do not include contribution from any acquisitions we may complete during the quarter, including Nies-Artcraft."
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