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Consolidated Graphics Reports Preliminary June 2009 First Quarter Results
Wednesday, July 23, 2008
HOUSTON, July 23 /PRNewswire-FirstCall/ -- Consolidated Graphics, Inc.
(NYSE: CGX) today announced preliminary results for its quarter ended June 30,
2008.
The Company expects diluted earnings per share to be between $.80 - $.84.
This compares with earnings of $.96 per diluted share in the same quarter a
year ago and management's previous expectations of $1.10 - $1.20 per diluted
share. Revenue in the June quarter is expected to be $285 million, compared to
$259 million in the same quarter a year ago and management's previous
expectations of $300 - $310 million. Operating income is expected to be
between $19.1 - $20.0 million, or between 6.7% - 7.0% of sales, compared to
$24.8 million or 9.6% of sales in the same quarter a year ago.
The Company attributes the lower than expected results to the weakness of
the overall U.S. economy, a more competitive pricing environment and a slower
than expected start in the new fiscal year for its two most recent
acquisitions. The Company's same store sales (which excludes the two recently
acquired businesses and election-related printing) are expected to decline
3.9% for the June quarter compared to management's previously expected decline
of 0% - 2%. Partially offsetting this decline, the Company expects election-
related business for the June quarter to be $ 5.9 million, in-line with its
previous expectations, and to continue to strengthen through the election
season. Including election related sales, same store sales declined
year-over-year 2.1% during the quarter ended June 30, 2008.
"These results clearly reflect the impact of the weaker U.S. economy on
our sales volumes as well as our selling prices," commented Joe R. Davis,
Chairman and Chief Executive Officer of Consolidated Graphics. "During the
first quarter, we continued our cost-control initiatives throughout the
Company that we believe succeeded in managing our expenses, particularly labor
costs, in-line with revenues. Despite the decline in same store sales of 2.1%
during the quarter, we believe we performed better than the overall printing
industry."
Mr. Davis continued, "Despite the current economic environment, we are
very optimistic about the future of Consolidated Graphics and remain confident
in our long-term growth strategy. We believe our recently acquired businesses
are well-run companies with solid management and customer bases, and we
anticipate great things from them going forward. We continue to operate from a
position of financial strength and our recent acquisitions, investments in new
equipment, state of the art technology and in our people, position us
extremely well for the long-term. I am especially pleased with the growth of
our digital print revenue, which represented 10% of total revenues in this
first quarter, and grew over 150% compared to last year."
Based on ongoing market conditions, for the quarter ending September 30,
2008, management expects revenues of between $290 and $300 million and diluted
earnings per share of $.85 to $.95. This forecast reflects a year-over-year
3%-5% same store sales decline, excluding election business, continued pricing
pressure, higher share based compensation expense and a tax rate of
approximately 40%.
Consolidated Graphics, Inc. will host a conference call today, Wednesday,
July 23, 2008 at 5:15 p.m. Eastern Time, to discuss its preliminary results
for the quarter ended June 30, 2008 and provide additional information related
to the Company's business. In order to participate in the conference call,
please dial 866-770-7051 or 617-213-8064 approximately 10 minutes before the
scheduled time and enter the passcode "44219086". If you are unable to
participate in the conference call, you may listen to a rebroadcast of the
call by dialing 888-286-8010 or 617-801-6888 and entering the Conference ID
"49474402". The rebroadcast will be available from July 23 until midnight
July 30. The conference call will be simultaneously broadcast live over the
Internet and a subsequent archive will be available. Listeners may access the
live Web cast at the Company's homepage, www.cgx.com.
Consolidated Graphics (CGX), headquartered in Houston, Texas, is one of
North America's leading general commercial printing companies. With 70
printing businesses strategically located across 27 states and in Canada, we
offer an unmatched geographic footprint, unsurpassed capabilities, and
unparalleled levels of convenience, efficiency and service. With locations in
or near virtually every major U.S. market and in Canada, CGX provides service
and responsiveness of a local printer enhanced by the economic, geographic and
technological advantages of a large national organization.
Our vast and technologically advanced sheetfed and web printing
capabilities are complemented by the largest integrated digital footprint of
any commercial printer in the U.S. By coupling North America's most
comprehensive printing capabilities with strategically located fulfillment
centers and industry-leading technology, we deliver solutions that create a
spectrum of value for our customers. CGX offers the unique ability to respond
to all printing-related needs no matter how large, small, specialized or
complex. For more information, visit the CGX Web site at www.cgx.com.
This press release contains "forward-looking statements" within the
meaning of Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended, in which the Company
discusses factors it believes may affect its performance or results in the
future. Forward-looking statements are all statements other than historical
facts, such as statements regarding assumptions, expectations, beliefs and
projections about future events or conditions. You can generally identify
forward-looking statements by the appearance in such a statement of words like
"anticipate," "believe," "continue," "could," "estimate," "expect," "intend,"
"may," "might," "plan," "potential," "predict," "forecast," "project,"
"should" or "will" or other comparable words or the negative of such words.
The accuracy of the Company's assumptions, expectations, beliefs and
projections depend on events or conditions that change over time and are thus
susceptible to change based on actual experience, new developments and known
and unknown risks, including those created by general market conditions,
competition and the possibility that events may occur beyond the Company's
control, which may limit its ability to maintain or improve its operating
results or financial condition or acquire additional printing businesses. The
Company gives no assurance that the forward-looking statements will prove to
be correct and does not undertake any duty to update them. The Company's
actual future results might differ from the forward-looking statements made in
this press release for a variety of reasons, which include, continuing
weakness in the economy, the growth of its digital printing or election
related business, its ability to adequately manage expenses, including labor
costs, the continued availability of raw materials at affordable prices and
retention of its key management and operating personnel, satisfactory labor
relations, its ability to identify new acquisition opportunities, negotiate
and finance such acquisitions on acceptable terms and successfully absorb and
manage such acquisitions in a timely and efficient manner, as well as other
risks described in the "Risk Factors" section of our Annual Report on Form 10-
K for the fiscal year ended March 31, 2008, as filed with the Securities and
Exchange Commission. You should pay particular attention to and review the
important risk factors and cautionary statements described in the "Risk
Factors" section, as well as the risk factors and cautionary statements
described in the other documents the Company files or furnishes from time to
time with the Securities and Exchange Commission, including its Quarterly
Reports on Form 10-Q and Current Reports on Form 8-K. Should one or more of
the foregoing risks or uncertainties materialize, or should the Company's
underlying assumptions prove incorrect, the Company's actual results may vary
materially from those anticipated in its forward-looking statements, and its
business, financial condition and results of operations could be materially
and adversely affected.
SOURCE Consolidated Graphics, Inc.
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