Consolidated Graphics Reports Lower Earnings on Increased Revenue
Press release from the issuing company
HOUSTON, Nov. 5 -- Consolidated Graphics, Inc. today announced financial results for its second quarter ended September 30, 2008.
Record revenue for the September quarter was $297.0 million, up 14% compared to a year ago. Revenue increased due to acquisitions and a 1% increase in same store sales, including election-related printing. Operating income was $21.3 million or 7.2% of revenues compared to $23.2 million or 8.9% of revenues for the prior year quarter. Last year's operating income included a foreign currency gain of $1.2 million (.5% of revenue). Net income for the September quarter was $10.3 million or $.90 per diluted share. Net income for the prior year quarter was $13.3 million or $.98 per diluted share. Excluding the foreign currency gain, net income for the prior year quarter was $12.3 million or $.91 per diluted share.
Commenting on the results, Joe R. Davis, Chairman and Chief Executive Officer of Consolidated Graphics stated, "We are very pleased with the record revenues generated during the September quarter and our earnings per share considering the challenging business conditions we are facing. Despite these conditions, we are continuing to provide top-notch service to our customers. I believe we have the best group of companies and employees in the industry."
Mr. Davis continued, "Thus far we are doing a good job of adjusting operating expenses as revenues fluctuate. We will respond quickly and aggressively to further adjust our cost structure should our level of business decline. As a leader in the marketplace with a team of dedicated employees and the liquidity and financial strength necessary in the current market environment, we remain dedicated to maintaining our high levels of service and continuing to invest in our company's future."
"Looking forward to the December quarter, while October was a fairly good month, we expect that economic headwinds will continue to affect the market resulting in a very competitive operating environment. As a result, we currently anticipate revenues of $300 to $320 million and diluted earnings per share of between $.75 and $.95. This forecast assumes a same store sales decline of between 6% and 12%, excluding election-related business, and an effective tax rate between 37% and 40%."
A reconciliation of the non-GAAP financial measures referred to above to the most directly comparable GAAP financial measures is included in the attached tables and was included in a Current Report on Form 8-K filed today with the Securities and Exchange Commission. This filing also includes the basis for management's use of these non-GAAP financial measures.
Consolidated Graphics will host a conference call today, Wednesday, November 5, 2008, at 11:00 a.m. Eastern Time, to discuss its second quarter fiscal 2009 results. The conference call will be simultaneously broadcast live over the Internet on our website (http://www.cgx.com) and a subsequent archive of such call will also be available on our website.
Consolidated Graphics, Inc. (CGX), headquartered in Houston, Texas, is one of North America's leading general commercial printing companies. With 70 printing businesses strategically located across 27 states, Canada, and in Prague, we offer an unmatched geographic footprint, unsurpassed capabilities, and unparalleled levels of convenience, efficiency and service. With locations in or near virtually every major U.S. market, CGX provides service and responsiveness of a local printer enhanced by the economic, geographic and technological advantages of a large national organization.
Consolidated Graphics' vast and technologically advanced sheetfed and web printing capabilities are complemented by the largest integrated digital footprint of any commercial printer in the U.S. By coupling North America's most comprehensive printing capabilities with strategically located fulfillment centers and industry-leading technology, CGX delivers solutions that create a spectrum of value for customers. CGX offers the unique ability to respond to all printing-related needs no matter how large, small, specialized or complex. For more information, visit http://www.cgx.com.
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