**EXHIBIT99.1**

 

 

 

 
|                   | FOR:     | ** ** | **Consolidated Graphics, Inc.**  |
|------------------------|----------|------------|----------------------------------|
|                   |     |       |                             |
|                   | CONTACT: |       | G. Christopher Colville          |
|                   |     |       | Executive Vice President/        |
|                   |     |       | Chief Financial Officer          |
|                   |     |       | Consolidated Graphics, Inc.      |
|                   |     |       | (713) 787-0977                   |
| For Immediate  Release |     |       |                             |
|                   |     |       | Christine Mohrmann/Eric Boyriven |
|                   |     |       | Financial  Dynamics              |
|                   |     |       | (212) 850-5600                   |

 

# **CONSOLIDATEDGRAPHICS REPORTS SECOND QUARTER 2005 FINANCIAL RESULTS**

***- Record Revenue of $191 Million-***

***-  Operating Margins Improve for SixthConsecutive Quarter -***

***- Diluted Earnings Per Share of $.53 -***

 

 

**HOUSTON, TEXAS - October 27, 2004- Consolidated Graphics, Inc. (NYSE: CGX)** today announced results for its second quarter endedSeptember 30, 2004.

 

Revenue for the September quarter was $191.1 million,up 5% compared to $181.5 million in the June quarter and up 9% compared to$174.6 million a year ago.  Net incomefor the September quarter was $7.6 million, or $.53 per diluted share,representing increases of 11% and 10% compared to the June quarter’s net incomeof $6.8 million and $.48 per diluted share. Compared to the September quarter a year ago, net income increased 59%and diluted earnings per share increased 56%. Overall, September quarter revenues were at a record level forConsolidated Graphics, and operating margins improved for the sixth consecutivequarter.

 

For the six months ended September 30, 2004, totalsales were $372.7 million, up 9% compared to $340.5 million for the comparableperiod a year ago.  Net income for thefirst six months of this year was $14.4 million, or $1.01 per diluted share, up73% and 66% compared to last year’s $8.3 million and $.61 per diluted share.

 

 “This quarter’sresults clearly exemplify the strength and breadth of our business model,”commented Joe R. Davis, Chairman and Chief Executive Officer.  “All of the elements of our business strategymeasurably contributed in the quarter. Of the total increase in revenues from the year-ago quarter, ouracquisition program contributed 3% and our internal growth strategy contributed6%, which includes revenue from election related printing of 3%.  I am especially pleased we were able to 

 

 

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leverage this revenuegrowth into further improvement in operating margins.”

 

Mr. Davis continued, “Going forward, we intend tofurther capitalize on these same growth strategies.  We are evaluating various acquisitionopportunities in accordance with our disciplined approach to acquisitions.  Our multi-faceted strategy to generatinginternal growth consists of further developing national sales and cross-sellingactivity, capturing market opportunities and capitalizing on furtherimprovement in economic and industry conditions.  At the same time, we remain very committed tocontrolling costs and operating as efficiently as possible.”

 

Mr. Davis concluded, “Our strong balance sheet andmarket-leading position give us confidence in achieving long-term growth insales and profits.  In the near term,while our recent performance trends have been positive, continued improvementin economic and industry conditions is an important factor in our ability tosustain our momentum.  In the upcomingDecember quarter, we expect to generate revenue of $194 million and earningsper diluted share of $.54.”

 

Consolidated Graphics will host a conference calltoday, October 27, 2004, at 11 a.m. Eastern Time, to discuss its second quarter2005 results.  The conference call willbe simultaneously broadcast live over the Internet.  Listeners may access the live Web cast at theCompany’s homepage, www.consolidatedgraphics.com.

 

  ConsolidatedGraphics, Inc. is one of the nation’s leading commercial sheetfed, web anddigital printing companies.  Through itsnetwork of printing companies in 25 states, the Company produces high-qualitycustomized printed materials for a broad customer base that includes many ofthe most recognized companies in the country. Consolidated Graphics also offers an extensive and growing range ofdigital and Internet-based services and solutions marketed throughCGXSolutions.  Consolidated Graphics isfocused on adding value to its operating companies by providing financial andoperational strengths, management support and technological advantagesassociated with a national organization. For more information, visit theCompany’s Web site at http://www.consolidatedgraphics.com.

 

This press release contains forward-looking statements, which involveknown and unknown risks, uncertainties or other factors that could cause actualresults to materially differ from the results, performance or otherexpectations implied by these forward-looking statements.  Consolidated Graphics’ expectations regardingfuture sales and profitability assume, among other things, stability in theeconomy and reasonable growth in the demand for its products, the continuedavailability of raw materials at affordable prices, retention of its keymanagement and operating personnel, as well as other factors detailed inConsolidated Graphics’ filings with the Securities and ExchangeCommission.  The forward-lookingstatements, assumptions and factors stated or referred to in this press releaseare based on information available to Consolidated Graphics today.  Consolidated Graphics expressly disclaims anyduty to provide updates to these forward-looking statements, assumptions andother factors after the day of this release to reflect the occurrence of eventsor circumstances or changes in expectations.

*(Table to follow)*

 

 

 

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**CONSOLIDATED GRAPHICS, INC.**

###### **Consolidated Income Statement**

*(In thousands, except per shareamounts)*

* *

* *
| ** **                           | ** ** | **Three Months Ended** | ** ** | **Six Months Ended** | ** ** |
|--------------------------------------|------------|------------------------|------------|----------------------|------------|
| ** **                           | ** ** | **September 30,**      | ** ** | **September 30,**    | ** ** |
|                                 |       | 2004                   |       | 2003                 |       | 2004 |   | 2003 |   |
| Sales                                |       | $                      | 191,129    |                 | $          | 174,624 |   | $ | 372,658 |   | $ | 340,453 |   |
| Cost of Sales                        |       | 144,019                |       | 133,244              |       | 280,676 |   | 260,012 |   |
| Gross Profit                         |       | 47,110                 |       | 41,380               |       | 91,982 |   | 80,441 |   |
| Selling Expenses                     |       | 19,705                 |       | 18,530               |       | 39,226 |   | 36,690 |   |
| General and  Administrative Expenses |       | 13,808                 |       | 13,284               |       | 26,656 |   | 26,467 |   |
| Operating Income                     |       | 13,597                 |       | 9,566                |       | 26,100 |   | 17,284 |   |
| Interest  Expense, net               |       | 1,389                  |       | 1,762                |       | 2,796 |   | 3,730 |   |
|                                 |       |                   |       |                 |       |   |   |   |   |
| Income before  Taxes                 |       | 12,208                 |       | 7,804                |       | 23,304 |   | 13,554 |   |
| Income Taxes                         |       | 4,639                  |       | 3,044                |       | 8,911 |   | 5,229 |   |
| Net Income                           |       | $                      | 7,569      |                 | $          | 4,760 |   | $ | 14,393 |   | $ | 8,325 |   |
|                                 |       |                   |       |                 |       |   |   |   |   |
| Earnings Per  Share                  |       |                   |       |                 |       |   |   |   |   |
| Basic                                |       | $                      | .56        |                 | $          | .36 |   | $ | 1.06 |   | $ | .62 |   |
| Diluted                              |       | $                      | .53        |                 | $          | .34 |   | $ | 1.01 |   | $ | .61 |   |
|                                 |       |                   |       |                 |       |   |   |   |   |
| Weighted Average  Shares Outstanding |       |                   |       |                 |       |   |   |   |   |
| Basic                                |       | 13,618                 |       | 13,406               |       | 13,601 |   | 13,378 |   |
| Diluted                              |       | 14,222                 |       | 13,799               |       | 14,189 |   | 13,685 |   |
|                                      |            |                        |            |                      |            |  |  |  |  |  |  |  |  |  |  |  |

 

 

 

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