Consolidated Graphics Reports Q2: Sees modest improvement in industry conditions
Press release from the issuing company
HOUSTON, Oct. 22 -- Consolidated Graphics, Inc. today announced results for its second quarter ended September 30, 2003.
Revenues for the September quarter were $174.6 million, compared to $165.8 million in the June quarter and $181.8 million a year ago. Net income for the September quarter was $4.8 million, or $.34 per diluted share, compared to net income of $3.6 million, or $.26 per diluted share, in the June quarter and net income of $5.4 million, or $.40 per diluted share, a year ago.
For the six months ended September 30, 2003, total revenues were $340.5 million, compared to $357.9 million for the comparable period a year ago. Net income for the first half of this fiscal year was $8.3 million, or $.61 per diluted share, compared to $10.4 million, or $.77 per diluted share, before the cumulative effect of a change in accounting principle reflecting the adoption of SFAS No. 142, in the same period 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 $63.9 million, or $4.73 per diluted share, in the first half of fiscal 2003.
"We are pleased to announce strong results for the September quarter, as sales rose 5.3%, operating margins rose from 4.7% to 5.5% and net income grew by 33.5% from the June quarter," commented Joe R. Davis, Chairman and Chief Executive Officer. "This performance reflects our efforts to grow our business and improve profit margins as well as a modest overall improvement in industry conditions."
Mr. Davis continued, "In addition to our earnings performance, we accomplished a number of other goals during the quarter that significantly enhanced our leading industry position. First, we further strengthened our balance sheet through strong cash flow. Second, we expanded our market share through strategic acquisitions in two important markets, northern California and Cleveland, Ohio. And third, we bolstered the team focused on marketing, national accounts and solution selling of our CGXmedia suite of electronic products with the appointment of Aaron Grohs as Executive Vice President of Sales and Marketing."
Mr. Davis concluded, "While we are confident in the continued success of our business model, we remain cautious regarding the pace of the recovery in the commercial printing industry and the future state of the economy in general. As a result of these factors, we expect revenues and diluted earnings per share in the December quarter to be sequentially comparable with the September quarter."
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