Business News
Consolidated Graphics Reports December Quarter 2008 Results
Wednesday 30. January 2008 - - Record Revenue of $290 Million vs. $270 Million in Prior Year - Record Diluted Earnings Per Share of $1.58 vs. $1.17 in Prior Year
Consolidated Graphics, Inc. (NYSE:CGX) today announced financial results for its third quarter ended December 31, 2007.
Revenue for the December quarter was a record $289.5 million, up 7% compared to $269.6 million for the same period a year ago. Net income for the December quarter was $19.4 million, up 18% compared to net income of $16.4 million for the same period a year ago, resulting in diluted earnings per share of a record $1.58, up 35% versus $1.17 for the same period a year ago. Earnings this quarter were positively impacted by a low effective tax rate of 19%, which was primarily the result of a reduction in reserve estimates placed against certain income tax positions.
For the nine months ended December 31, 2007, revenue was $807.9 million, up 9% compared to $742.3 million for the same period a year ago. Net income for the first nine months of this year was $46.2 million versus net income of $43.8 million a year ago, resulting in diluted earnings per share of $3.48, up 11% compared to $3.14 for the same period a year ago.
Joe R. Davis, Chairman and Chief Executive Officer of Consolidated Graphics, commented, “We are very pleased with our quarterly results and believe that some of the cost-reduction measures we undertook during the quarter enabled us to produce very good results in a challenging economic environment. During the December quarter we completed the acquisition of The Cyril-Scott Company in Lancaster, Ohio. We are pleased to add this great company to our powerful network and are excited about the new capabilities and opportunities the company brings us. With our strong balance sheet and cash flows, we expect continued growth through investments in new technology and acquisitions that will further expand our industry-leading network and customer offerings.”
In addition, during the December quarter, the Company executed under its share repurchase program the purchase of 755,200 shares for $38 million. Subsequent to the December quarter, the Company completed its $50 million Board of Directors authorized stock repurchase program with the purchase of an additional 268,501 shares for $12 million. In total, during fiscal year 2008, the Company has purchased 2,684,167 common shares representing 19.5% of shares outstanding under its two Board authorized stock repurchase programs of $150 million. The Company currently has 11,069,636 common shares outstanding.
Mr. Davis concluded, “For the March quarter, we are projecting quarterly revenues of between $270 and $280 million and diluted earnings per share of between $1.10 and $1.20. For the March quarter we expect our effective tax rate to be approximately 37%.”