EXHIBIT 99.1
FOR: Consolidated Graphics, Inc.
CONTACT: Wayne M. Rose
Chief Financial Officer
Consolidated Graphics, Inc.
(713) 787-0977
Julie Truax/Jonathan Schaffer
Media: Claudine Cornelis
Morgen-Walke Associates, Inc.
(212) 850-5600
FOR IMMEDIATE RELEASE
CONSOLIDATED GRAPHICS REPORTS FIRST QUARTER RESULTS
HOUSTON, TEXAS -- July 25, 2001 -- Consolidated Graphics, Inc.
(NYSE:CGX) today reported results for its first quarter ended June 30, 2001.
Total revenues for the June quarter were $164.4 million compared to
$166.2 million in the March quarter. Net income was $5.1 million, or $.38
per diluted share, versus net income before special charge of $4.8 million,
or $.36 per diluted share, for the March quarter. Effects of the current
economic slowdown are evident when comparing year-over-year June quarter
results. Revenues for the June quarter were $9.1 million less than last
year. Net income for the June quarter last year was $8.0 million, or $.59
per diluted share.
"We are encouraged by our financial performance in the June quarter,"
commented Joe R. Davis, Chairman and Chief Executive Officer. "While
difficult market conditions continue to persist and present a highly
competitive environment, we further increased market share and maintained
operating income."
"In spite of the weak economy, revenues were down only 1% from the March
quarter and earnings improved," stated Charles F. White, President and Chief
Operating Officer. "We made significant strides toward growing our customer
base and expanding our services to our existing customers through both
CGXMedia and our national accounts strategy. Customers are utilizing COIN
and OPAL, our principal CGXMedia products, at an increasingly rapid rate and
this will drive more print sales over the long term. We began actively
marketing these products only 12 months ago and today we have 110 active or
committed sites. We are confident that this momentum will continue, as even
more customers understand the benefits of CGXMedia's products.
"Longer term, we believe that our national accounts strategy also offers
significant growth prospects. By leveraging our network of 63 companies in
key markets across the country, we successfully sell our services to national
corporations who are interested in simplifying their supply chain. This
strategy allows us to reach large customers through our nationwide network of
companies while maintaining our focus on service levels that only can be
provided by a local printer. We now have agreements with 10 large national
account customers and believe that this initiative provides substantial
growth potential going forward."
-more-
Consolidated Graphics Reports First Quarter Results Page - 2 -
Mr. Davis concluded, "Looking ahead, we remain comfortable with our
previous guidance of gradual sequential improvement for the next few
quarters. We are confident in our ability to manage our business in this
slower market environment and remain focused on the progress and future
opportunities associated with our current business initiatives."
Consolidated Graphics, Inc. is the largest sheet-fed and half-web
commercial printing company in the United States. Through its network of
printing companies in 25 states, the Company produces high-quality customized
printed materials for a broad customer base that includes many of the most
recognized companies in the country. Consolidated Graphics also offers an
extensive and growing range of digital and Internet-based services and
solutions marketed through CGXmedia. Consolidated Graphics is focused on
adding value to its operating companies by providing financial and
operational strengths, management support and technological advantages
associated with a national organization. For more information, visit the
Company's Web site at www.consolidatedgraphics.com.
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 future sales and profitability assume, among
other things, stability in the economy and reasonable growth in the demand
for its products, the continued 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. The forward-looking statements, assumptions and
factors stated or referred to in this press release are based on information
available to Consolidated Graphics today. Consolidated Graphics expressly
disclaims any duty to provide updates to these forward-looking statements,
assumptions and other factors after the day of this release to reflect the
occurrence of events or circumstances or changes in expectations.
(Table Follows)
Consolidated Graphics Reports First Quarter Results Page - 3 -
CONSOLIDATED GRAPHICS, INC.
Consolidated Income Statement
(In thousands, except per share amounts)
Three Months Ended Three Months Ended
June 30, March 31,
2001 2000 2001 (Note 1)
Sales $ 164,435 $ 173,486 $ 166,196
Cost of Sales 120,603 124,058 121,262
GROSS PROFIT 43,832 49,428 44,934
Selling Expense 17,164 17,406 17,790
General and Administrative Expense 13,591 13,717 13,569
OPERATING INCOME 13,077 18,305 13,575
Interest Expense 4,610 4,911 5,604
Pretax Income 8,467 13,394 7,971
Income Taxes 3,387 5,358 3,189
NET INCOME $ 5,080 $ 8,036 $ 4,782
Earnings Per Share - Basic $ .39 $ .59 $ .36
Earnings Per Share - Diluted $ .38 $ .59 $ .36
Weighted Average Shares Outstanding
Basic 13,025 13,601 13,142
Diluted 13,258 13,610 13,183
Note 1 -- excludes special charge of $4,117 net of tax ($.31 per share)
related to facility exit costs and asset impairment.
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