Business News
Consolidated Graphics Reports Financial Results for the Quarter Ended June 2010
Wednesday 04. August 2010 - Quarterly same-store sales grew 2.3% year-over-year - Adjusted Net Income per diluted share was $.43 and Net Income per diluted share was $.59 - both substantial improvements over prior year - GAAP results include a benefit for settlement of previously disclosed litigation
Consolidated Graphics, Inc. (NYSE:CGX) today announced financial results for the quarter ended June 30, 2010.
Revenue for the June quarter was $236.7 million, a 4.8% increase compared to the prior year quarter. The increase was due to 2.3% growth in same-store sales combined with the impact of higher election-related sales and an acquisition. As a result of the growth in sales and the benefit of prior year cost reductions, Adjusted Operating Income for the June 2010 quarter improved to $9.7 million, or 4.1% of revenue, from $2.4 million, or 1.0% of revenue, for the same quarter last year. Adjusted Net Income for the June 2010 quarter was $4.9 million, or $.43 Adjusted Diluted Earnings Per Share compared to Adjusted Net Income of $.6 million, or $.05 Adjusted Diluted Earnings Per Share for the prior year.
Operating income of $12.9 million in the June 2010 quarter compared to operating income of $.9 million in the prior year quarter. Operating income in the June 2010 quarter included a $5.2 million positive adjustment resulting from the settlement of litigation for an amount lower than previously recognized and $1.0 million in expenses related to the cost of withdrawing from a multi-employer pension plan. Net income for the June 2010 quarter was $6.8 million, or $.59 diluted earnings per share compared to a $.3 million net loss or $.03 diluted loss per share for the prior year quarter.
Adjusted EBITDA was $27.1 million for the June 2010 quarter, compared to $20.1 million for the same quarter in the prior year, an increase of 35%. The Company generated $9.7 million in Free Cash Flow for the current quarter, compared to $29.8 million last year.
Joe R. Davis, Chairman and Chief Executive Officer of Consolidated Graphics, commented, “After twelve quarters of year-over-year declines, we were pleased to achieve same-store sales growth this past quarter. While there has been some improvement in the economy, we continue to see weakness in demand from many of our customers, and our performance this quarter is a testament to the efforts we have made to develop customized solutions that meet our customers’ most critical needs. We also continue to improve our capabilities by investing in people and technology, including in our CGXSolutions offerings. These sophisticated capabilities, combined with our cost containment efforts, and higher sales levels, allowed us to significantly improve our operating income and margins over last year.”
Mr. Davis added, “The economy is improving but it remains difficult to project our future revenues and earnings. Nevertheless, based on current market conditions, we expect September quarter’s revenue to be in the range of $260 – $275 million representing year-over-year same store sales growth of up to 5% as well as the benefit of higher election-related business and the impact of a recent acquisition. This should enable us to again achieve Adjusted Net Income improvement in the September 2010 quarter compared to the prior year.”
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 are included in the attached tables and in the Current Report on Form 8-K filed today. The Form 8-K also includes the basis for management’s use of these non-GAAP financial measures.