Consolidated Graphics (CGX) 8-K Results of Operations and Financial Condition

Exhibit 99.1

FOR:	Consolidated Graphics, Inc.
CONTACT:	G. Christopher Colville
	Executive Vice President/
	Chief Financial Officer
	Consolidated Graphics, Inc.
	(713) 787-0977
	Christine Mohrmann/Alexandra Tramont
	FD
	(212) 850-5600

For Immediate Release

CONSOLIDATED GRAPHICS REPORTS FOURTH QUARTER AND FISCAL YEAR 2007 FINANCIAL RESULTS
— Fourth Quarter Revenues Up 19% to $263.9 Million —
— Fourth Quarter Non-GAAP Diluted EPS up 43% to $1.06 —
— Fourth Quarter GAAP Diluted EPS of $.50 Includes Non-Cash Goodwill Impairment —

HOUSTON, TEXAS — May 9, 2007 — Consolidated Graphics, Inc. (NYSE: CGX)today announced financial results for its fourth quarter and year-ended March 31, 2007.

Revenue for the March quarter was $263.9 million, up 19% compared to $221.9 million a year ago. Net income for the March quarter was $6.9 million, or $.50 per diluted share, which includes the impact of an after-tax $7.8 million, or $.56 per diluted share, non-cash goodwill impairment, which was determined when the Company completed its annual evaluation of goodwill in the fourth quarter. Excluding the goodwill impairment, net income was $14.8 million compared to $10.5 million a year ago, resulting in a 43% increase in diluted earnings per share to $1.06 from $.74 in the prior year.

Pursuant to generally accepted accounting principles, each of the Company’s facilities is separately evaluated annually for impairment of goodwill because they comprise individual reporting units under the Company’s business model. Upon completion of the required evaluation, the Company concluded that the goodwill at four locations should be impaired. In the aggregate, these facilities account for approximately 3% of the Company’s total sales. Also, each of these facilities generates positive cash flow; accordingly, the Company is evaluating steps that can be taken to improve their financial performance.

For the fiscal year ended March 31, 2007, revenue was a record $1.01 billion, up 14% compared to $879.0 million in fiscal 2006. Net income in 2007 was $50.7 million, or $3.65 per diluted share. Excluding the goodwill impairment mentioned above, net income in 2007 was $58.6 million compared to $38.5 million in 2006, resulting in a 54% increase in diluted earnings per share to $4.21 from $2.73 in the prior year.

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CONSOLIDATED GRAPHICS REPORTS FOURTH QUARTER AND FISCAL
YEAR 2007 FINANCIAL RESULTS PAGE -2-

Commenting on the results, Joe R. Davis, Chairman and Chief Executive Officer of Consolidated Graphics stated, “The fourth quarter wrapped up an outstanding year of growth in sales and profits for Consolidated Graphics. Many factors contributed to this growth, including acquisitions, strong internal sales growth, incremental operating efficiencies, better purchasing power, and our continued investment in technology. I am confident that we can continue to execute on our strategy, expand our industry-leading position and further leverage our competitive advantages for continued growth.”

Mr. Davis concluded, “We have a lot of momentum and foresee a strong start to fiscal 2008. For the June quarter, we project quarterly revenues to increase 12% from the prior year to $268 million, with EBITDA projected to be $38 million, up 10% from the prior year, and sequentially flat relative to the March quarter. Diluted earnings per share for the June quarter is projected at $.98, and includes an expected increase in our overall effective tax rate to 38% in fiscal 2008 from 36.6% in fiscal 2007, which included a one-time income tax benefit in the June quarter. Compared to the March quarter results, the projections for the June quarter also include an incremental after-tax charge of $.04 per share for stock-based compensation expense, reflecting our typical timing patterns for this expense over the course of the year.”

A reconciliation and basis for management’s use of the non-GAAP financial results referred to above was included in a filing made today by the Company with the Securities and Exchange Commission and is also included in the attached table.

Consolidated Graphics will host a conference call today, May 9, 2007, at 11:00 a.m. Eastern Time, to discuss its fourth quarter and full year 2007 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 (CGX), headquartered in Houston, Texas, is North America’s leading general commercial printing company. With 68 printing facilities, 12 fulfillment and two technology centers strategically located across 27 states and Canada, CGX offers an unmatched geographic footprint with extensive capabilities supported by an unparalleled level of convenience, efficiency and service.

CGX has the largest and most technologically advanced sheetfed printing capability in North America, a sizeable and strategically important web printing capability, industry-leading digital printing services, a rapidly growing number of fulfillment centers and proprietary Internet-based technology solutions. CGX offers the unique service ability to respond to all printing-related needs no matter how large, small, specialized or complex. With locations in or near virtually every major U.S. market, as well as Toronto, CGX offers highly responsive service and convenient access to a vast capabilities network through a single point of contact at the local level. For more information, visit the Consolidated Graphics Web site atwww.cgx.com

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CONSOLIDATED GRAPHICS REPORTS FOURTH QUARTER AND FISCAL
YEAR 2007 FINANCIAL RESULTS PAGE -3-

This press release contains forward-looking statements, 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 or changes in expectations.

(Tables to follow)

CONSOLIDATED GRAPHICS REPORTS FOURTH QUARTER AND FISCAL
YEAR 2007 FINANCIAL RESULTS PAGE -4-

CONSOLIDATED GRAPHICS, INC.
Consolidated Income Statements
(In thousands, except per share amounts)

	Three Months Ended				Year Ended
	March 31,				March 31,
	2007		2006		2007		2006
	(Unaudited)		(Unaudited)		(Unaudited)		(Audited)
Sales	$	263,914	$	221,911	$	1,006,186	$	879,023
Cost of Sales		193,543		166,048		736,996		661,560
Gross Profit		70,371		55,863		269,190		217,463
Selling Expenses		27,262		23,398		101,649		91,266
General and Administrative Expenses		18,293		14,439		69,223		58,993
Goodwill Impairment		11,533		—		11,533		—
Operating Income		13,283		18,026		86,785		67,204
Interest Expense, net		1,958		1,275		6,702		5,514
Income before Taxes		11,325		16,751		80,083		61,690
Income Taxes		4,379		6,256		29,342		23,192
Net Income	$	6,946	$	10,495	$	50,741	$	38,498
Earnings Per Share
Basic	$	.51	$	.77	$	3.74	$	2.81
Diluted	$	.50	$	.74	$	3.65	$	2.73
Weighted Average Shares Outstanding
Basic		13,574		13,699		13,580		13,719
Diluted		13,990		14,157		13,905		14,127

CONSOLIDATED GRAPHICS REPORTS FOURTH QUARTER AND FISCAL
YEAR 2007 FINANCIAL RESULTS PAGE -5-

CONSOLIDATED GRAPHICS, INC.
Consolidated Balance Sheets
(In thousands, except share and per share data)

	March 31
	2007		2006
	(Unaudited)		(Audited)
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	12,043	$	4,993
Accounts receivable, net		185,722		146,296
Inventories		46,951		38,430
Prepaid expenses		7,532		6,799
Deferred income taxes		8,479		8,356
Total current assets		260,727		204,874
PROPERTY AND EQUIPMENT, net		354,156		297,308
GOODWILL AND INTANGIBLES, net		101,768		100,035
OTHER ASSETS		7,318		9,096
	$	723,969	$	611,313
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES
Current portion of long-term debt	$	12,421	$	10,821
Accounts payable		58,519		54,666
Accrued liabilities		89,496		68,436
Income taxes payable		138		3,477
Total current liabilities		160,574		137,400
LONG-TERM DEBT, net of current portion		142,144		90,678
DEFERRED INCOME TAXES		55,715		64,289
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS’ EQUITY
Common stock, $.01 par value; 100,000,000 shares authorized; 13,693,698 and 13,714,121 issued and outstanding		137		138
Additional paid-in capital		185,098		170,581
Retained earnings		180,113		148,227
Other Comprehensive Income		188		—
Total shareholders’ equity		365,536		318,946
	$	723,969	$	611,313

CONSOLIDATED GRAPHICS REPORTS FOURTH QUARTER AND FISCAL
YEAR 2007 FINANCIAL RESULTS PAGE -6-

CONSOLIDATED GRAPHICS, INC.
Reconciliation of Net Income to Non-GAAP Performance Measures
(In thousands, except per share amounts)
(unaudited)

	Three Months Ended					Year Ended
	March 31,					March 31,
	2007			2006		2007		2006
Net Income per GAAP	$	6,946		$	10,495	$	50,741	$	38,498
Goodwill impairment, after tax		7,816			—		7,816		—
Net Income Excluding Goodwill Impairment		14,762			10,495		58,557		38,498
Income taxes		8,096			6,256		33,059		23,192
Interest expense, net		1,958			1,275		6,702		5,514
Depreciation and amortization		11,890			10,497		43,959		41,348
Share-based compensation expense		450			—		2,695		—
Net loss from asset dispositions		900			172		1,311		4,315
			��
EBITDA	$	38,056		$	28,695	$	146,283	$	112,867
Diluted Earnings per Share per GAAP	$	.50		$	.74	$	3.65	$	2.73
Impact of goodwill impairment		.56			—		.56		—
Diluted Earnings Per Share Excluding Goodwill Impairment	$	1.06		$	.74	$	4.21	$	2.73

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