Business News

Consolidated Graphics Reports Financial Results For The Quarter Ended June 2012

Thursday 09. August 2012 - Consolidated Graphics, Inc. (NYSE: CGX) today announced financial results for its first quarter ended June 30, 2012.

Revenue for the June quarter was $238.3 million, a $5.0 million or 2.1% decline compared to the prior year quarter. The decline in revenue compared to the prior year quarter was due to a 2.5% decline in same-store sales, partially offset by sales growth related to an acquisition. The same- store sales change includes the benefit of election-related revenue growth, compared to the prior year. Adjusted Operating Income for the June 2012 quarter was $2.8 million or 1.2% of revenue, compared to $8.9 million or 3.7% of revenue last year. Adjusted Net Income was $1.0 million or $.09 per diluted share for the quarter, compared to Adjusted Net Income of $4.9 million or $.43 per diluted share for the prior year quarter. Adjusted EBITDA was $21.4 million for the June 2012 quarter.
Operating income during the June 2012 quarter was $.5 million and included other charges of $1.7 million primarily related to relocating certain production facilities. Operating income for the prior year quarter was $3.6 million and included $4.6 million in other charges due to withdrawing from certain multi-employer pension plans. Net loss for the June 2012 quarter was $.4 million or $.04 diluted loss per share, compared to net income of $1.6 million or $.14 diluted earnings per share last year.
Joe R. Davis, Chairman and Chief Executive Officer of Consolidated Graphics, commented, “The decline in same-store sales reflects the on-going fragile state of the economy. While we are closely managing our costs during these challenging economic times, we are also investing in our capabilities. We believe our industry leading technology and digital investments provide us significant competitive advantages that will enable us to generate profitable growth as the economy improves. Evidence of these advantages include the 6% quarterly year-over-year growth of our digital print business and 30% growth in our web-to-print technology solutions installed since the launch of our Streamline(TM) product last September.”
Share Repurchase Program Update
During the June 2012 quarter, the Company purchased 276,066 shares of its common stock for $7.9 million pursuant to a share repurchase program authorizing the Company to purchase up to an aggregate of $170.0 million of the Company’s common shares. Since beginning the share repurchase program in November 2010, the Company has purchased 1,855,374 shares of its common stock (16% of shares outstanding) for $79.5 million. As of June 30, 2012, the Company had 9,976,253 common shares outstanding.
A reconciliation of the non-GAAP financial measures, Adjusted EBITDA, Free Cash Flow, Adjusted Operating Income, Adjusted Operating Margin, Adjusted Net Income and Adjusted Diluted Earnings Per Share to the most directly comparable GAAP financial measures are included in the attached tables and in the related Current Report on Form 8-K filed with the Securities and Exchange Commission. The Form 8-K also includes the basis for management’s use of these non-GAAP financial measures.