EXHIBIT 99
APPROVED BY: Ronald E. Hale, Jr.
Vice President
(713) 529-4200
CONTACT: Betsy Brod/Jeff Majtyka
Media: Stan Froelich
Morgen-Walke Associates, Inc.
(212) 850-5600
CONSOLIDATED GRAPHICS REPORTS THIRD CONSECUTIVE
QUARTER OF RECORD EARNINGS
HOUSTON, TEXAS -- January 29, 1997 -- Consolidated Graphics, Inc.
(NYSE/CGX) today announced record earnings and sales for the third quarter ended
December 31, 1996. The Company reported earnings of $2.8 million, or $.22 per
share, for the third quarter of 1997, up 120% from the $1.3 million before
restructuring charge reported in the corresponding quarter of 1996. Sales
revenues increased 72% to an all-time high of $38.2 million from $22.3 million
in the previous year.
Commenting on the third consecutive quarter of record earnings, Joe R.
Davis, Chairman and Chief Executive Officer said: "We are very pleased to
report another quarter of record sales and earnings on our first day of trading
on the New York Stock Exchange. We continue to execute our growth strategy with
the addition of nine new printing companies since January 1, 1996. Equally
important, however, is the success we are having at operating our companies. The
increase in our overall operating margins is strong evidence that our operating
strategies continue to be effective with all our companies producing more
efficiently and more profitably."
Mr. Davis added, "Our Company has become the recognized leader in printing
industry consolidation, and the pipeline for future acquisition opportunities
remains full. With the strength of our balance sheet, we are well positioned to
go forward with our strategy of acquisition and growth."
For the nine months ended December 31, 1996, the Company reported net
income of $6.9 million, or $.56 per share, up 82% from the $3.8 million before
restructuring charge reported for the corresponding nine months of the prior
year. Sales for the first nine months of 1997 increased 65% to $100.9 million,
compared to the $61.0 million reported in 1996.
Consolidated Graphics, Inc. is one of the fastest growing printing
companies in the United States. It is a consolidator in a fragmented industry,
adding value to its acquisitions by providing the financial and operational
strengths, management support and technological advantages associated with a
larger organization. The Company has 18 printing companies operating in 14
markets.
-- Table to Follow --
CONSOLIDATED GRAPHICS
(NYSE: CGX)
INCOME STATEMENTS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
QUARTER ENDED NINE MONTHS ENDED
DECEMBER 31, DECEMBER 31,
------------------------------ ------------------------------
1996 1995 1996 1995
-------------- -------------- -------------- --------------
Sales................................ $ 38,186 $ 22,255 $ 100,895 $ 61,041
Cost of sales........................ 26,391 16,117 70,421 43,796
-------------- -------------- -------------- --------------
GROSS PROFIT.................... 11,795 6,138 30,474 17,245
Selling expenses..................... 3,754 2,138 10,012 6,021
General and administrative
expenses........................... 2,966 1,810 7,980 4,814
Restructuring charge................. -- 1,500 -- 1,500
-------------- -------------- -------------- --------------
OPERATING INCOME................ 5,075 690 12,482 4,910
Interest expense..................... 643 236 1,577 594
-------------- -------------- -------------- --------------
INCOME BEFORE INCOME TAXES...... 4,432 454 10,905 4,316
Income taxes......................... 1,640 160 4,008 1,511
-------------- -------------- -------------- --------------
NET INCOME...................... $ 2,792 $ 294 $ 6,897 $ 2,805
============== ============== ============== ==============
Fully diluted earnings per share..... $ 0.22 $ 0.03 $ 0.56 $ 0.26
============== ============== ============== ==============
Weighted average shares
outstanding........................ 12,730,040 10,984,806 12,234,351 10,956,516
============== ============== ============== ==============