EXHIBIT 99.1
FOR: Consolidated Graphics, Inc.
APPROVED BY: Ronald E. Hale, Jr.
Vice President & Treasurer
(713) 787-0977
CONTACT: Betsy Brod/Nancy Healy
Media: Stan Froelich
Morgen-Walke Associates, Inc.
(212) 850-5600
FOR IMMEDIATE RELEASE
CONSOLIDATED GRAPHICS, INC, REPORTS
RECORD THIRD QUARTER RESULTS
- -- Net Income Rises 74% in Seventh Consecutive Quarter of Record Financial
Performance --
HOUSTON, TEXAS - January 28, 1998 - Consolidated Graphics, Inc. (NYSE:CGX)
today announced record results for the third quarter ended December 31, 1997.
Net income for the third quarter grew 74% to $4.9 million compared to the
same period in 1997. Operating income for the three months rose 74% to $8.8
million on a 60% increase in revenues to $61.0 million. On a per share basis,
diluted earnings increased 68% to $.37 this quarter, compared to $.22 last year
and basic earnings per share increased 65% to $.38, up from $.23 a year ago.
For the nine months ended December 31, 1997, Consolidated Graphics' net
income grew 89% to $13.0 million. Operating income increased 89% to $23.6
million and sales increased to $165 million, an increase of 64% over the prior
year. Diluted earnings per share for the period increased to $1.00, up 79% from
the $.56 reported last year. Basic earnings per share increased 82% to $1.04 as
compared to $.57 per share a year ago.
Joe R. Davis, Chairman and Chief Executive Officer of Consolidated
Graphics, commented, "We are pleased to report our seventh consecutive quarter
of record financial performance as we maintain our commitment to strong,
profitable growth, through both internally generated market share expansion and
acquisitions. Our acquisition program has accelerated significantly during the
past three months. We increased our market penetration in three key markets, Los
Angeles, Seattle and Colorado. We also expanded our presence into three new
markets: New England through our acquisition of the The Otto Companies, Central
Florida through StorterChilds Printing and Middle Tennessee with Courier
Printing Company. Our acquisition pipeline continues to strengthen, as does our
leadership position in the industry. Today, we have over $290 million in
annualized revenues, a 65% increase since the beginning of our fiscal year, and
we are in acquisition discussions with companies representing over $300 million
in revenues.
- more-
Commenting on the quarterly results, Davis continued, "Our strong operating
margin this quarter demonstrates the operating efficiencies our companies
realize as they capitalize on increased purchasing power and our investment in
technology and equipment. Overall, we continue to do very well and expect this
performance to continue.
Consolidated Graphics, Inc., is 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. Upon completion of pending
acquisitions, Consolidated Graphics will have 31 companies with annualized
revenues in excess of $290 million.
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 run-rate revenues assume, among other things, completion of pending
acquisitions that are subject to the execution of definitive agreements, general
economic conditions, continued demand for its product, the 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
--Table to Follow---
CONSOLIDATED GRAPHICS, INC.
(NYSE: CGX)
Financial Highlights
(in thousands, except per share amounts)
Quarter Ended Nine Months Ended
December 31, December 31,
1997 1996 1997 1996
Sales $ 60,977 $ 38,186 $165,015 $100,895
Cost of Sales 41,626 26,391 112,856 70,421
GROSS PROFIT 19,351 11,795 52,159 30,474
Selling Expense 5,881 3,754 15,972 10,012
General and Administrative Expense 4,622 2,966 12,568 7,980
OPERATING INCOME 8,848 5,075 23,619 12,482
Interest Expense 996 643 2,644 1,577
Pretax Income 7,852 4,432 20,975 10,905
Income Taxes 2,984 1,640 7,972 4,008
NET INCOME $ 4,868 $ 2,792 $13,003 $ 6,897
Basic Earnings Per Share $ .38 $ .23 $ 1.04 $ .57
Diluted Earnings Per Share $ .37 $ .22 $ 1.00 $ .56
Weighted Average Shares Outstanding
Basic 12,682 12,273 12,552 12,082
Diluted 13,205 12,730 13,035 12,234