EXHIBIT 99
FOR: Consolidated Graphics, Inc.
APPROVED BY: Ronald E. Hale, Jr.
Vice President & Treasurer
(713) 529-4200
CONTACT: Betsy Brod/Nancy Healy
Media: Stan Froelich
Morgen-Walke Associates, Inc.
(212) 850-5600
FOR IMMEDIATE RELEASE
CONSOLIDATED GRAPHICS REPORTS RECORD RESULTS
FOR FISCAL 1998 FIRST QUARTER
- - Sales Rise 79% in Fifth Consecutive Quarter of Record Financial Performance -
HOUSTON, TEXAS -- July 30, 1997 -- Consolidated Graphics, Inc. (NYSE:CGX)
today announced record results for the first quarter ended June 30, 1997.
Sales in the fiscal 1998 first quarter rose 79% to $50.7 million from
$28.3 million in the comparable period of fiscal 1997. First quarter operating
income increased 141% to $7.1 million, and net income grew 131% to $3.9 million,
versus year-ago results. On a per share basis, Consolidated Graphics earned
$.30 in the fiscal 1998 quarter, compared to $.14 per share in the fiscal 1997
period. All per share figures reflect the Company's 2-for-1 stock split
distributed in January 1997.
The strong sales and earnings performance was driven by the Company's
acquisition program, internal growth and further improvements in the operations
of its printing companies.
Operating income margin for the fiscal 1998 first quarter was 14.0%, up
from 10.4% in the year ago period, and up sequentially from the 13.5% reported
in the fourth quarter of fiscal 1997.
Joe R. Davis, Chairman and Chief Executive Officer of Consolidated
Graphics, commented, "The recent three-month period represents our fifth
consecutive quarter of record sales and earnings. The continued operating
income margin improvements in the first quarter demonstrate our ability to
control costs through both our increased purchasing power and improved operating
efficiencies of our acquired businesses."
- more -
CONSOLIDATED GRAPHICS FISCAL 1998 FIRST QUARTER RESULTS - 2 -
"Since the beginning of fiscal 1998, we have acquired two printing
companies, --Tucker Printers, Rochester, New York and The Etheridge Company,
Grand Rapids, Michigan, and have agreed to acquire four others -- Georges &
Shapiro Lithograph, Sacramento; Austin Printing, Atlanta; Walnut Circle Press,
Greensboro; and Geyer Printing, Pittsburgh. These companies, representing over
$50 million in revenue, fit our strategy of acquiring strong companies with
solid positions in the markets they serve. Including these pending
acquisitions, we will own 24 printing companies in 19 markets with annualized
revenues now exceeding $240 million."
Mr. Davis concluded, "While our acquisition program is proceeding well
ahead of plan in fiscal 1998, we continue to see additional acquisition
opportunities. With a strong balance sheet and our recently announced $100
million bank line of credit, Consolidated Graphics is well-positioned to pursue
these growth opportunities."
Consolidated Graphics, Inc. is recognized as the fastest growing
printing company in the United States. A consolidator in a highly fragmented
industry, the Company adds value to its acquisitions through managerial and
operational expertise, financial strength and economies of scale.
--Table to Follow--
CONSOLIDATED GRAPHICS
(NYSE: CGX)
Financial Highlights
(in thousands, except per share amounts)
For the Three Months Ended
June 30,
1997 1996
Sales $50,675 $28,258
Cost of sales 34,745 20,166
GROSS PROFIT 15,930 8,092
Selling expenses 4,931 2,848
General and administrative expenses 3,880 2,292
OPERATING INCOME 7,119 2,952
Interest expense 894 339
Pretax Income 6,225 2,613
Income taxes 2,365 940
NET INCOME $ 3,860 $ 1,673
Earnings per share $ .30 $ .14
Weighted average shares outstanding 12,949 11,860
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