EXHIBIT 99.1
FOR: Consolidated Graphics, Inc.
APPROVED BY: Mary K. Collins
Senior Vice President
Consolidated Graphics, Inc.
(713) 529-4200
CONTACT: Betsy Brod/Jeff Majtyka
Press: Stan Froelich
Morgen-Walke Associates, Inc.
(212) 850-5600
FOR IMMEDIATE RELEASE
CONSOLIDATED GRAPHICS, INC. REPORTS RECORD EARNINGS FOR
FISCAL 1997 SECOND QUARTER AND SIX MONTHS
-- NEW ACQUISITIONS DRIVE 60% SECOND QUARTER EPS INCREASE; REVENUES UP 78% --
HOUSTON, TEXAS -- OCTOBER 30, 1996 -- CONSOLIDATED GRAPHICS, INC.
(NASDAQ/NNM:COGI) today reported its financial results for the fiscal 1997
second quarter and six months ended September 30, 1996.
Second quarter net income increased 80% over the fiscal 1996 second
quarter, to $2.4 million, with a corresponding 60% increase in EPS, to $.40 per
share. Sales for the second quarter increased 78%, to $34.5 million from $19.3
million in the corresponding fiscal 1996 period. For the first half of fiscal
1997, net income rose 63%, to $4.1 million, with a corresponding EPS increase of
48%, to $.68 per share. Fiscal 1997 first-half sales were $62.7 million, 62%
higher than the first six months of fiscal 1996.
Joe R. Davis, Chairman and Chief Executive Officer, stated, "Consolidated
Graphics' strong performance in the second quarter illustrates the progress
we're making in executing our growth strategy. Higher sales and earnings were
driven by the addition of six new printing companies in the last nine months,
and were supported by the continued solid performance of our existing companies.
Second-quarter results were enhanced by the earlier-than-anticipated completion
of several of the recent acquisitions. It is also important to note that we are
buying high-quality companies in attractive markets, presenting the opportunity
for additional performance gains to complement our own internal growth. The
Company's ability to realize these performance gains is apparent in the expanded
operating margin for the second quarter."
Mr. Davis added, "As we move ahead in the third quarter, we have a
pipeline of quality acquisition opportunities under evaluation. With a financial
condition that remains very healthy, the Company is positioned to capitalize on
the best of these opportunities."
Consolidated Graphics, Inc. is one of the fastest growing printing
companies in the United States. It is a consolidator in a fragmented industry
that adds value to its acquisitions by providing the financial and operational
strengths, management support and technological advantages associated with a
larger organization. With the completion of a pending acquisition in Richmond,
VA, Consolidated Graphics will operate 16 printing companies in 12 markets.
-- Table to Follow --
CONSOLIDATED GRAPHICS
(NASDAQ: COGI)
INCOME STATEMENTS
(in thousands, except per share data)
QUARTER ENDED QUARTER ENDED SIX MONTHS ENDED SIX MONTHS ENDED
SEPT. 30, 1996 SEPT. 30, 1995 SEPT. 30, 1996 SEPT. 30, 1995
--------------- --------------- ----------------- -----------------
Sales................................ $ 34,451 $ 19,308 $ 62,709 $ 38,786
Cost of sales........................ 23,864 13,689 44,030 27,679
--------------- --------------- ----------------- -----------------
GROSS PROFIT.................... 10,587 5,619 18,679 11,107
Selling expenses..................... 3,410 1,860 6,258 3,883
General and administrative
expenses........................... 2,722 1,478 5,014 3,004
--------------- --------------- ----------------- -----------------
OPERATING INCOME................ 4,455 2,281 7,407 4,220
Interest expense..................... 595 206 934 358
--------------- --------------- ----------------- -----------------
INCOME BEFORE INCOME TAXES...... 3,860 2,075 6,473 3,862
Income taxes......................... 1,428 723 2,368 1,351
--------------- --------------- ----------------- -----------------
NET INCOME...................... $ 2,432 $ 1,352 $ 4,105 $ 2,511
=============== =============== ================= =================
Fully diluted earnings per share..... $ .40 $ .25 $ .68 $ .46
=============== =============== ================= =================
Weighted average shares
outstanding........................ 6,116,307 5,474,342 6,024,367 5,470,468
=============== =============== ================= =================