EXHIBIT 99.1
FOR: Consolidated Graphics, Inc.
CONTACT: Wayne M. Rose
Chief Financial Officer
Consolidated Graphics, Inc.
(713) 339-5756
Betsy Brod/Karen Pagonis
Media: Steve DiMattia
Morgen-Walke Associates, Inc.
(212) 850-5600
FOR IMMEDIATE RELEASE
CONSOLIDATED GRAPHICS REPORTS THIRD QUARTER RESULTS
HOUSTON, TEXAS -January 24, 2001-Consolidated Graphics, Inc. (NYSE:CGX)
today announced final results for the third quarter ended December 31, 2000. As
previously announced, third quarter financial results were affected by softness
in the general economy and print markets in particular.
Sales for the third quarter increased 8% over the prior year to $171.2
million. Sales for the first nine months of this fiscal year grew 13% to $517.2
million. However, operating margins decreased to 8.4%, down from 11.5% in the
third quarter last year. Operating income and net income for the quarter were
$14.3 million and $5.5 million, respectively, compared to $18.2 million and $8.9
million in the prior year. Diluted earnings per share were $.42 for the third
quarter, compared to $.56 in the same period last year.
"Even though soft print market conditions during the holiday period forced
us to price aggressively and protect market share, we remain optimistic about
our long-term prospects for the Company," stated Joe R. Davis, Chairman and
Chief Executive Officer. "The Company will take appropriate actions in response
to this challenge."
"As we discussed last week, we are preparing plans to adjust to these
market conditions," commented Charles F. White, President and Chief Operating
Officer. "Additionally, consolidation within our organization may be required at
certain of our companies, in a few of our markets, and we are developing plans
to implement those actions where necessary. We remain confident that strategies
already in place for national account sales, for marketing of e-commerce
products and services, and for management development should enhance our revenue
base and lead to profitable growth."
Mr. Davis concluded, "Given current market conditions and in light of our
initiatives already underway, we believe that our financial results for the next
few quarters will improve gradually over recent performance. We intend to
streamline our operations and infrastructure over the next few quarters so that
we can capitalize on future opportunities."
CONSOLIDATED GRAPHICS REPORTS THIRD QUARTER RESULTS PAGE 2
Consolidated Graphics, Inc. is the largest sheet-fed and half-web
commercial printing company in the United States. Through its network of locally
managed 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 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, 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.
(Table Follows)
CONSOLIDATED GRAPHICS, INC.
Consolidated Income Statement
(In thousands, except per share amounts)
THREE MONTHS ENDED NINE MONTHS ENDED
DECEMBER 31, DECEMBER 31,
--------------------- ---------------------
2000 1999 2000 1999
--------- --------- --------- ---------
Sales $ 171,211 $ 158,408 $ 517,200 $ 457,123
Cost of Sales 125,594 112,195 372,896 317,641
GROSS PROFIT 45,617 46,213 144,304 139,482
Selling Expense 17,649 15,516 52,280 44,427
General and Administrative Expense 13,663 12,450 41,026 35,367
OPERATING INCOME 14,305 18,247 50,998 59,688
Interest Expense 5,145 3,486 15,254 9,168
Pretax Income 9,160 14,761 35,744 50,520
Income Taxes 3,664 5,906 14,298 20,208
NET INCOME $ 5,496 $ 8,855 $ 21,446 $ 30,312
Earnings Per Share - Basic $ .42 $ .56 $ 1.62 $ 1.96
Earnings Per Share - Diluted $ .42 $ .56 $ 1.62 $ 1.93
Weighted Average Shares
Outstanding - Basic 13,026 15,691 13,259 15,473
Weighted Average Shares
Outstanding - Diluted 13,031 15,836 13,267 15,675
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