EXHIBIT 99.1
FOR: Consolidated Graphics, Inc.
APPROVED BY: Ronald E. Hale, Jr.
Vice President & Treasurer
(713) 787-0977
CONTACT: Betsy Brod/Jonathan Schaffer
Media: Stan Froelich/Eileen King
Morgen-Walke Associates, Inc.
(212) 850-5600
FOR IMMEDIATE RELEASE
CONSOLIDATED GRAPHICS, INC. REPORTS
RECORD FOURTH QUARTER AND YEAR-END RESULTS
-- Net Income Rises 68% in Fourth Quarter and 82% for Full Fiscal Year --
HOUSTON, TEXAS - April 29, 1998 - Consolidated Graphics, Inc. (NYSE:CGX)
today announced record results for the fourth quarter and year ended March 31,
1998.
Net income for the 1998 fourth quarter increased 68% to $5.4 million, or
$.41 per diluted share, compared to $3.2 million, or $.25 per diluted share last
year. Fourth quarter operating income rose 67% to $9.8 million, and sales
increased 53% to $66.3 million from $43.2 million in 1997.
For the year ended March 31, 1998, net income grew 82% to $18.4 million, or
$1.40 per diluted share, compared to $10.1 million, or $.81 per diluted share,
in the prior year. Operating income for 1998 increased 82% to $33.4 million from
$18.3 million. Sales grew to $231.3 million, a 61% increase from the $144.1
million reported in the prior year.
"1998 was our most successful year ever," said Joe R. Davis, Chairman and
Chief Executive Officer of Consolidated Graphics. "The fourth quarter was our
eighth consecutive quarter of record financial performance as our disciplined
strategy for growth, both internally and through acquisitions, continues to
produce strong results. Operating margins strengthened again this quarter as our
printing companies, particularly our recent acquisitions, continue to improve as
they capitalize on the financial and operational resources Consolidated Graphics
makes available."
Mr. Davis continued, "The pace of our acquisition program remains strong as
we continue our nationwide expansion. Over the past three months, we have
announced acquisitions in five new markets: Philadelphia, Milwaukee, Boston,
Wichita and San Francisco, and increased our presence in San Diego. Our run-rate
revenues, now at $370 million, have more than doubled during the past year and
we expect this strong growth 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 37 companies with annualized
revenues in excess of $370 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, general economic conditions, continued demand for its product, the
availability of raw materials, 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)
For the Quarter Ended For the Year Ended
March 31, March 31, March 31, March 31,
1998 1997 1998 1997
--------- --------- --------- ---------
Sales $ 66,267 $ 43,187 $ 231,282 $144,082
Cost of Sales 45,050 29,776 157,906 100,197
GROSS PROFIT 21,217 13,411 73,376 43,885
Selling Expense 6,393 4,211 22,365 14,223
General and Administrative
Expense 5,060 3,350 17,628 11,330
OPERATING INCOME 9,764 5,850 33,383 18,332
Interest Expense 1,076 728 3,720 2,305
Pretax Income 8,688 5,122 29,663 16,027
Income Taxes 3,301 1,919 11,273 5,927
NET INCOME $ 5,387 $ 3,203 $ 18,390 $ 10,100
Basic Earnings Per Share $ .42 $ .26 $ 1.46 $ .83
Diluted Earnings Per Share $ .41 $ .25 $ 1.40 $ .81
Weighted Average Shares
Outstanding
Basic 12,732 12,418 12,598 12,166
Diluted 13,257 12,941 13,112 12,411
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