HOUSTON -- Consolidated Graphics, Inc. today announced financial results for its fourth quarter and year-ended March 31, 2009.
Revenue for the March quarter was $247.2 million, down 14% compared to the same quarter a year ago. The revenue decline was primarily due to a year-over-year same-store revenue decline of 21.4% and lower election-related business. These declines were partially offset by the impact of a prior year acquisition.
For the March quarter, excluding non-cash impairment charges and foreign currency gains, Adjusted Operating Income was $4.8 million or 2% of revenues and Adjusted Net Income was $1.4 million or $.12 Adjusted Diluted Earnings per Share. In the prior year quarter, Adjusted Operating Income was $25.8 million or 9% of revenues and Adjusted Net Income was $13.6 million or $1.20 Adjusted Diluted Earnings per Share.
For the March 2009 quarter, operating loss was $16.2 million and net loss was $15.9 million or $1.43 diluted loss per share. Operating loss for the March 2009 quarter included a pre-tax, non-cash goodwill impairment charge of $20.8 million ($17.2 million after tax or $1.52 diluted loss per share). In the prior year quarter, operating income was $24.9 million and net income was $13.1 million or $1.15 diluted earnings per share.
For the year ended March 31, 2009, revenue was a record $1.1 billion, up 5% compared to the same period a year ago due to business acquisitions and election-related business, partially offset by lower same-store sales. Excluding non-cash impairment charges, the previously announced litigation charge and foreign currency gains, Adjusted Operating Income was $69.5 million or 6% of revenues, and Adjusted Net Income was $33.8 million or $2.95 Adjusted Diluted Earnings per Share for the year ended March 31, 2009. For the same period in the prior year, Adjusted Operating Income was $97.2 million or 9% of revenues and Adjusted Net Income was $57.5 million or $4.48 Adjusted Diluted Earnings per Share.
For the year ended March 31, 2009, operating loss was $30.4 million and net loss was $39.6 million or $3.55 diluted loss per share. Operating loss for the year ended March 31, 2009 included a pre-tax, non-cash goodwill impairment charge of $83.3 million ($63.3 million after tax or $5.52 diluted loss per share). Prior year operating income was $100.3 million and net income was $59.3 million or $4.63 diluted earnings per share.
A reconciliation of the non-GAAP financial measures, Adjusted Operating Income, Adjusted Net Income and Adjusted Diluted Earnings per Share, to the most directly comparable GAAP financial measures is included in the attached tables and in the Current Report on Form 8-K filed today, as well as the basis for management's use of the non-GAAP financial measures.
The Company performed a required annual goodwill impairment test in connection with our year ended March 31, 2009 and the assessment resulted in an additional March quarter non-cash, pre-tax goodwill impairment charge of $20.8 million. The impairment charge was primarily due to the current business climate which in turn has led to a decline in the Company's stock price during the latter half of the Company's fiscal year.
Joe R. Davis, Chairman and Chief Executive Officer of Consolidated Graphics, commented, "The recession has led to lower revenues and considerable competitive pressures and these factors have adversely impacted our profit margins during the full year and the March quarter. In light of the current economic conditions, our operating companies continue to work diligently to effectively manage their labor and other costs. In the June quarter we have implemented significant wage, salary and headcount reductions throughout the business that will help alleviate the adverse impact of lower revenues on our operating margins."
Mr. Davis continued, "Our balance sheet remains strong and we continue to generate solid free cash flow. We reduced total debt by $41.3 million during the March quarter and $71.5 million during the full year. Today we remain focused on positioning Consolidated Graphics to not only weather the current economic storm, but also to considerably strengthen our business. Toward this end, we are intent on delivering exceptional value by providing our customers outstanding products and services and strengthening our market position. Through the dedication of our employees, our technology offerings, including our digital print capabilities, and our focus on growing sales to key national customers who are seeking to lower their total costs of printed materials, we believe we will emerge from this recession a stronger company. While the economic environment remains soft and highly uncertain for the June quarter, we expect to generate at least break-even Adjusted Net Income."
Consolidated Graphics, Inc. will host a conference call today, Wednesday, May 6, 2009, at 11:00 a.m. Eastern Time, to discuss its fourth quarter and year-ended March 31, 2009 results. The conference call will be simultaneously broadcast live over the Internet on our website (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 www.cgx.com.
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