Business News
Consolidated Graphics Reports Fourth Quarter and Fiscal Year 2008 Financial Results
Wednesday 07. May 2008 - - Fourth Quarter Revenues up 9% to $288 Million vs. $264 Million in Prior Year - - Record Fiscal 2008 Revenue and Diluted EPS -
Consolidated Graphics, Inc. (NYSE:CGX) today announced financial results for its fourth quarter and year-ended March 31, 2008.
Revenue for the March quarter was $287.5 million, up 9% compared to $263.9 million for the same period a year ago. Net income for the March quarter was $13.1 million, or $1.15 diluted earnings per share, compared to $6.9 million, or $.50 diluted earnings per share, for the same period a year ago. Net income for the March 2007 quarter included the impact of an after-tax, non-cash impairment of $7.8 million, or $.56 diluted earnings per share. Excluding this impairment, net income for the March 2007 quarter was $14.8 million, or $1.06 diluted earnings per share. Included in operating income during the March 2008 quarter was a foreign currency transaction net loss of $.8 million, primarily due to certain transactions of our Canadian subsidiary denominated in U.S. dollars.
For the year ended March 31, 2008, revenue was a record $1.1 billion, up 9% compared to $1.0 billion a year ago. Net income in 2008 was $59.3 million, compared to $50.7 million a year ago, resulting in record diluted earnings per share of $4.63, versus $3.65 in the prior year. Excluding the impairment charge mentioned above, net income in fiscal 2007 was $58.6 million, or $4.21 diluted earnings per share. Included in the operating income in fiscal 2008 was a foreign currency transaction net gain of $3.1 million.
Joe R. Davis, Chairman and Chief Executive Officer of Consolidated Graphics, commented, “We are very proud to report record revenue and diluted earnings per share for the year. Acquisitions as well as continued growth in Strategic Sales allowed us to post solid annual revenue growth of 9%. For the year, Strategic Sales, consisting of National and CGXSolutions sales, grew 28% to $196.1 million. In March, we acquired PBM Graphics, Inc. located in Durham, North Carolina, our largest acquisition to date. PBM is a top-notch commercial printer who is the largest producer of Pokemon cards in the world. Our acquisition pipeline remains sizable today.”
Mr. Davis concluded, “Looking ahead to the June quarter, we expect quarterly revenue of between $300 and $310 million and diluted earnings per share of between $1.10 and $1.20. For the June quarter we expect our effective tax rate to be approximately 38%.”
During the March quarter, the Company continued the recent trend of investing in digital presses and complementary technology. During 2008, capital expenditures were $82.4 million, with digital press investments representing 26% of the total.