Consolidated Graphics Reports a 5.1 Percent Revenue Decrease
Houston-based Consolidated Graphics, Inc. announced financial results for the quarter ended Dec. 31, 2011.
Revenue for the December quarter was $283.9 million, a $15.2 million or 5.1 percent decrease compared to the prior year quarter. The decline in revenue compared to the prior year quarter was due to an expected $11.3 million decline in election-related business, a 3.5 percent decline in same-store sales, partially offset by sales growth related to acquisitions. Adjusted Operating Income for the December 2011 quarter was $20.6 million or 7.2 percent of revenue, compared to $30.2 million or 10.1 percent of revenue last year. Adjusted Net Income was $12.6 million, or $1.21 per diluted share for the quarter, compared to Adjusted Net Income of $18.7 million or $1.60 per diluted share for the prior year quarter.
Operating income, which included a $2.0 million goodwill impairment charge, was $17.6 million for the December 2011 quarter. Operating income for the prior year quarter was $28.2 million and included impairment charges of $1.0 million. Net income for the December 2011 quarter was $10.8 million or $1.04 diluted earnings per share, compared to $17.6 million or $1.50 diluted earnings per share last year.
Joe R. Davis, chairman and chief executive officer of Consolidated Graphics, commented, "Our financial performance in the current quarter was impacted by expected lower election-related business and lower than anticipated seasonal sales of both custom photo products and sales into the insurance industry. The lower sales into the insurance industry primarily related to one customer. We anticipate that the decline in business from this customer will be temporary. During the quarter, we also had non-recurring start-up expenses related to launching new hardware and platform software for certain customers, that adversely impacted the bottom line."
Davis continued, "Our recent investments in technology, such as our WorkSmart Suite™ products are being well received by our customers and will continue to provide long-term profitable growth. We continue to differentiate our customer offerings through investments in state-of-the-art technology, printing and fulfillment solutions. Supported by our strong balance sheet, we believe these actions will continue to drive growth over the long-term and further enhance our competitive position."