Consolidated Graphics Reports Q3 Results: Sales and Net Income Grow
Press release from the issuing company
HOUSTON, Jan. 28 -- Consolidated Graphics, Inc. today announced results for its third quarter ended December 31, 2003.
Sales for the December quarter were $184.2 million, compared to $174.6 million in the September quarter and $186.3 million a year ago. Net income for the December quarter was $5.5 million, or $.39 per diluted share, compared to net income of $4.8 million, or $.34 per diluted share, in the September quarter and net income of $5.7 million, or $.42 per diluted share, a year ago.
For the nine months ended December 31, 2003, total sales were $524.7 million, compared to $544.2 million for the comparable period a year ago. Net income for the first nine months of this year was $13.8 million, or $1.00 per diluted share, compared to $16.2 million, or $1.20 per diluted share, before the cumulative effect of a change in accounting principle reflecting the adoption of SFAS No. 142, last year. After giving effect to an after-tax goodwill impairment charge of $74.4 million, or $5.50 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 a year ago.
"Our results for the December quarter showed the continuation of our business' positive momentum and strong positioning within the commercial printing industry," commented Joe R. Davis, Chairman and Chief Executive Officer. "Compared to the September quarter, sales in the December quarter increased 5.5%, operating margins rose to 6.0% from 5.5% and net income grew by 15.3%. These results are evidence of an improvement in overall industry conditions and are also indicative of Consolidated Graphics' ability to leverage the strong fundamentals of its operating model in a strengthening economy."
Mr. Davis continued, "In addition, we were pleased with our other developments and accomplishments in the December quarter. Each of our sales growth strategies -- national accounts, CGXmedia, market share gains and acquisitions -- are measurably contributing to our performance and future prospects. Cash flow remained strong, enabling us to further strengthen our balance sheet, and our financial flexibility was enhanced by the completion of an amendment to our bank credit facility in November."
Mr. Davis concluded, "We are encouraged by signs of continued stabilization in the commercial printing sector and remain confident in our ability to capitalize on anticipated further improvement in economic and industry conditions. Accordingly, we expect the results for the March quarter to show year-over-year top-line improvement of approximately 6% and sequentially flat operating margins and diluted earnings per share."
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