Consolidated Graphics, Inc. today announced financial results for the quarter ended September 30, 2011.
Year-over-Year Quarterly Highlights:
- Revenue increased 3% to $267.4 million
- Adjusted Operating Income was $15.2 million, or 6% of revenues
- Adjusted Diluted Earnings Per Share were $.76
Revenue for the September quarter increased $7.3 million, or 2.8%, to $267.4 million, compared to the prior year quarter. The year-over-year revenue increase was due to growth in same-store sales of 1.7% and acquisitions, partially offset by a decline in election-related business. Adjusted Operating Income for the September 2011 quarter was $15.2 million or 5.7% of revenue, compared to $17.0 million or 6.5% of revenue last year. Adjusted Net Income was $8.3 million, or $.76 per diluted share for the quarter, compared to Adjusted Net Income of $9.0 million or $.77 per diluted share for the prior year quarter.
Operating income was $13.9 million for the September 2011 quarter and included $.6 million in charges. Operating income during the September 2010 quarter was $15.4 million and included $.7 million in charges primarily related to lease termination expenses and certain asset impairments. Net income for the September 2011 quarter was $7.5 million or $.69 diluted earnings per share, compared to $8.1 million or $.69 diluted earnings per share last year.
Joe R. Davis, Chairman and Chief Executive Officer of Consolidated Graphics, commented, "Considering the fact that we are in a non-election year, the results for the September quarter compare favorably to the prior quarter. Growth in our technology business, including digital print, and acquisitions contributed to the results."
Mr. Davis concluded, "Based on current market conditions and the usual seasonal improvements, we expect the December quarter's revenue to be in the range of $297 - $310 million which assumes year-over-year same-store sales growth of up to 5%, as well as incremental revenue from current year acquisitions, offset by the impact of lower election-related business. We expect Adjusted Diluted Earnings Per Share in the December 2011 quarter will improve compared to the prior year, excluding the impact of lower election-related business. We estimate that lower election-related business in the December quarter will have a negative $.22 - $.25 per diluted share impact, compared to the prior year."
Share Repurchase Program Update
The Company is authorized to purchase up to an aggregate of $100 million of the Company's common shares pursuant to a share repurchase program that expires March 31, 2013. During the quarter, the Company purchased 520,436 shares of its common stock for $18.9 million pursuant to its share repurchase program. Since beginning the share repurchase program in November 2010, the Company has purchased 1,292,093 shares of its common stock (11.0% of shares outstanding) for $58.2 million, leaving $41.8 million available under the repurchase program. As of September 30, 2011 the Company had 10,434,284 common shares outstanding.
A reconciliation of the non-GAAP financial measures, Adjusted EBITDA, Free Cash Flow, Adjusted Operating Income, Adjusted Operating Margin, Adjusted Net Income and Adjusted Diluted Earnings Per Share to the most directly comparable GAAP financial measures are included in the attached tables and in the Current Report on Form 8-K filed today with the Securities and Exchange Commission. The Form 8-K also includes the basis for management's use of these non-GAAP financial measures.
Consolidated Graphics, Inc. will host a conference call today, Wednesday, November 2, 2011, at 11:00 a.m. Eastern Time, to discuss its second quarter fiscal 2012 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, Toronto, and Prague, and a presence in Asia, CGX offers 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 the 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 world's largest integrated digital footprint. By coupling North America's most comprehensive printing capabilities with strategically located fulfillment centers and industry-leading technology, CGX delivers end-to-end print production and management solutions that are based on the needs of our customers to improve their results. For more information, visit www.cgx.com.