EXHIBIT 99.1
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| Consolidated Graphics, Inc. |
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| CONTACT: |
| G. Christopher Colville |
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| Executive Vice President/ |
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| Chief Financial Officer |
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| Consolidated Graphics, Inc. |
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| (713) 787-0977 |
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For Immediate Release |
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| Christine Mohrmann/Eric Boyriven |
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| Financial Dynamics |
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| (212) 850-5600 |
CONSOLIDATED GRAPHICS REPORTS SECOND QUARTER 2006 FINANCIAL RESULTS
– Achieves Record Revenue of $221 Million –
– Reports Diluted Earnings Per Share of $.66 vs. $.53 in Prior Year –
HOUSTON, TEXAS – November 2, 2005 – Consolidated Graphics, Inc. (NYSE: CGX) today announced financial results for its second quarter and six months ended September 30, 2005.
Revenue for the September quarter was $221.0 million, up 16% compared to $191.1 million a year ago. Net income for the September quarter was $9.3 million, or $.66 per diluted share, representing increases of 23% and 25% compared to net income of $7.6 million and diluted earnings per share of $.53 a year ago. Overall revenues this quarter were at a record level for Consolidated Graphics.
For the six months ended September 30, 2005, total sales were $430.9 million, up 16% compared to $372.7 million for the comparable period a year ago. Net income for the first six months of this year was $18.1 million, or $1.27 per diluted share, up 25% and 26% compared to net income of $14.4 million and diluted earnings per share of $1.01 a year ago.
“We are very pleased to report strong financial results for our September quarter,” commented Joe R. Davis, Chairman and Chief Executive Officer. “These results were ahead of our expectations, with significant growth in revenue driven by acquisitions and 2.2% internal growth. We leveraged our revenue growth into a proportionately larger increase in net income and earnings per diluted share on the strength of an improvement in operating margins to 7.4%, up from 7.3% in the June quarter and 7.1% a year ago.”
Mr. Davis added, “Other highlights in the September quarter included the announcement of a letter of intent to acquire Graphcom, Inc. in Atlanta, Georgia. We also expanded our acquisition team with the hiring of Jim Cohen, an experienced mergers and acquisitions executive, in response to our growing number of acquisition opportunities.”
Mr. Davis concluded, “Cash flow is a key element in our ability to capitalize on our industry leading market position and financial strength to generate long term growth in sales and profits. In the September quarter, we invested $8.7 million in new technology and equipment, reduced our total debt outstanding by $1.5 million and repurchased 164,100 shares of our common stock for $6.4 million. For the December quarter, we project record quarterly revenues of $225 million and diluted earning per share of $.68.”
Consolidated Graphics will host a conference call today, November 2, 2005, at 11:00 a.m. Eastern Time, to discuss its second quarter ended September 30, 2005 results. The conference call will be simultaneously broadcast live over the Internet. Listeners may access the live Web cast at the Company’s homepage, www.cgx.com.
Consolidated Graphics, Inc. is one of the nation’s leading commercial sheetfed, web and digital printing companies. 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 CGXSolutions. Consolidated Graphics is focused on adding value to its operating companies 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.cgx.com.
(Table to follow)
CONSOLIDATED GRAPHICS, INC.
(In thousands, except per share amounts)
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| Three Months Ended |
| Six Month Ended |
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| September 30, |
| September 30, |
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| 2005 |
| 2004 |
| 2005 |
| 2004 |
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Sales |
| $ | 220,993 |
| $ | 191,129 |
| $ | 430,908 |
| $ | 372,658 |
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Cost of Sales |
| 166,928 |
| 144,019 |
| 325,040 |
| 280,676 |
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Gross Profit |
| 54,065 |
| 47,110 |
| 105,868 |
| 91,982 |
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Selling Expenses |
| 22,513 |
| 19,705 |
| 44,543 |
| 39,226 |
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General and Administrative Expenses |
| 15,104 |
| 13,808 |
| 29,463 |
| 26,656 |
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Operating Income |
| 16,448 |
| 13,597 |
| 31,862 |
| 26,100 |
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Interest Expense, net |
| 1,426 |
| 1,389 |
| 2,790 |
| 2,796 |
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Income before Taxes |
| 15,022 |
| 12,208 |
| 29,072 |
| 23,304 |
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Income Taxes |
| 5,689 |
| 4,639 |
| 11,010 |
| 8,911 |
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Net Income |
| $ | 9,333 |
| $ | 7,569 |
| $ | 18,062 |
| $ | 14,393 |
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Earnings Per Share |
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Basic |
| $ | .68 |
| $ | .56 |
| $ | 1.31 |
| $ | 1.06 |
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Diluted |
| $ | .66 |
| $ | .53 |
| $ | 1.27 |
| $ | 1.01 |
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Weighted Average Shares Outstanding |
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Basic |
| 13,754 |
| 13,618 |
| 13,761 |
| 13,601 |
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Diluted |
| 14,166 |
| 14,222 |
| 14,197 |
| 14,189 |
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