Consolidated Graphics Reports Third Quarter Results.Business Editors HOUSTON--(BUSINESS WIRE)--Jan. 23, 2002 Consolidated Graphics Consolidated Graphics (NYSE "CGX") is a national, commercial printing company based in Houston, Texas. Founded in 1985 by Joe R. Davis, the company has grown to over 70 locations across 26 states and is known as the leading sheetfed, web and digital printing company in North , Inc. (NYSE NYSE See: New York Stock Exchange :CGX CGX Consolidated Graphics Inc. CGX Meigs Field, Chicago, Illinois (Airport Code) ) today reported results for its third quarter and nine months ended December December: see month. 31, 2001. December quarter sales were $153.8 million compared to $160.2 million in the September September: see month. quarter. Net income was $3.6 million, or $.27 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, compared to September quarter net income of $4.3 million, or $.32 per share. Effects of the current economic slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. are evident in the December quarter results. Revenues for the December quarter last year were $171.2 million. Net income for the December quarter last year was $5.5 million, or $.42 per diluted share. For the nine months ended December 2001, total revenues were $478.3 million compared to $517.2 million for the first nine months of last year. Net income for the nine-month period was $13.0 million or $.97 per diluted share, compared to $21.4 million, or $1.62 per share, in the same period last year. "Our revenue performance in the third quarter continued to be impacted by soft commercial printing demand and competitive pressures," commented Charles F. White, President and Chief Operating Officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. . "However, in spite of in opposition to all efforts of; in defiance or contempt of; notwithstanding. See also: Spite these difficult conditions we are extremely pleased with our progress in two key growth areas -- CGXMedia and national accounts. During the quarter, we added 7 new national account customers and increased the number of clients utilizing our COIN and OPAL opal (ō`pəl), a mineral consisting of poorly crystalline to amorphous silica, SiO2·nH2O; the water content is quite variable but usually ranges from 3% to 10%. e-commerce e-commerce, commerce conducted over the Internet, most often via the World Wide Web. E-commerce can apply to purchases made through the Web or to business-to-business activities such as inventory transfers. printing solutions by 36. Additionally, we capitalized Capitalized Recorded in asset accounts and then depreciated or amortized, as is appropriate for expenditures for items with useful lives longer than one year. on opportunities to add senior sales professionals to further strengthen our competitive position. We have enhanced both our operating and financial condition, while increasing market share during what we consider extremely challenging times." Joe R. Davis, Chairman and Chief Executive Officer, stated, "During the quarter, we continued to strengthen our balance sheet and reduce costs. Our debt is now $220 million, a reduction of $45 million since the beginning of the year." Mr. Davis concluded, "Looking ahead, we will continue to maximize our revenue growth potential while improving efficiencies throughout the organization. In terms of financial guidance, we anticipate modest sequential improvements in revenue and earnings for the fourth quarter if current market conditions persist. When market conditions improve, we will be firmly positioned to drive top- and bottom-line growth due to our national presence, long-standing customer base, financial strength and leading-edge technology solutions." Please join Consolidated Graphics for its live Fiscal 2002 third quarter conference call at 11:00 a.m. Eastern Standard Time on January 23, 2001. The conference call, open to all investors and potential investors, will be webcast at www.consolidatedgraphics.com. Please go to our website and click on investor relations Investor relations The process by which the corporation communicates with its investors. and conference calls. Consolidated Graphics, Inc. is the largest sheet-fed and half-web commercial printing company in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . Through its network of printing companies in 25 states, the Company produces high-quality customized printed materials for a broad customer base that includes many of the most recognized companies in the country. Consolidated Graphics also offers an extensive and growing range of digital and Internet-based services and solutions marketed through CGXmedia. Consolidated Graphics is focused on adding value to its operating companies operating company A business that engages in transactions with outsiders. by providing financial and operational strengths, management support and technological advantages associated with a national organization. For more information, visit the Company's Web site at www.consolidatedgraphics.com. This press release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. , which involve known and unknown risks, uncertainties or other factors that could cause actual results to materially differ from the results, performance or other expectations implied by these forward-looking statements. Consolidated Graphics' expectations regarding future sales and profitability assume, among other things, stability in the economy and reasonable growth in the demand for its products, the continued availability of raw materials at affordable prices, retention of its key management and operating personnel, as well as other factors detailed in Consolidated Graphics' filings with the Securities and Exchange Commission. The forward-looking statements, assumptions and factors stated or referred to in this press release are based on information available to Consolidated Graphics today. Consolidated Graphics expressly disclaims any duty to provide updates to these forward-looking statements, assumptions and other factors after the day of this release to reflect the occurrence of events or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or or changes in expectations.
CONSOLIDATED GRAPHICS, INC.
Consolidated Income Statement
(In thousands, except per share amounts)
Three Months Ended Nine Months Ended
------------------- ---------------------
December 31, December 31,
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2001 2000 2001 2000
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Sales $ 153,750 $ 171,211 $ 478,342 $ 517,200
Cost of sales 114,375 125,594 353,257 372,896
------------ ---------- ---------- ----------
Gross profit 39,375 45,617 125,085 144,304
Selling expense 16,591 17,649 50,652 52,280
General and
administrative
expense 13,480 13,663 40,731 41,026
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Operating income 9,304 14,305 33,702 50,998
Interest expense,
net 3,347 5,145 12,111 15,254
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Pretax income 5,957 9,160 21,591 35,744
Income taxes 2,383 3,664 8,637 14,298
------------ ---------- ---------- ----------
Net income $ 3,574 $ 5,496 $ 12,954 $ 21,446
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Earnings per share
- basic $ .27 $ .42 $ .99 $ 1.62
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Earnings per share
- diluted $ .27 $ .42 $ .97 $ 1.62
============ ========== ========== ==========
Weighted average
shares outstanding
Basic 13,150 13,026 13,082 13,259
Diluted 13,449 13,031 13,360 13,267
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