**Exhibit 99.1**

 

 

| 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/Lindsay Hatton |
|                   | Financial  Dynamics               |
|                   | (212) 850-5600                    |

 

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

***- Revenue Increases 9.5% fromPrior Year -***

***-  Operating Margins Improve for FifthConsecutive Quarter -***

***- Diluted Earnings Per Share of $.48 -***

 

**HOUSTON, TEXAS - July 28, 2004 -Consolidated Graphics, Inc. (NYSE: CGX)** today announced results for its first quarter endedJune 30, 2004.

 

Revenue for the June quarter was $181.5 million, down1.0% compared to $183.4 million in the March quarter and up 9.5% compared to$165.8 million a year ago.  Net incomefor the June quarter was $6.8 million, or $.48 per diluted share, representingincreases of 9.7% and 9.1% compared to net income of $6.2 million, or $.44 perdiluted share, in the March quarter. Compared to the June quarter a year ago, net income increased 88.9% from$3.6 million and diluted earnings per share increased 84.6% from $.26.

 

 “The resultsfor the June quarter reflect our ability to capitalize on the continuing steadyimprovement of economic and industry conditions,” commented Joe R. Davis,Chairman and Chief Executive Officer.  “Weare capable of leveraging the strength of our business model in such a businessclimate, as evidenced by the improvement in our operating margins thisquarter.  We have now reportedimprovement in operating margins for five consecutive quarters, and at 6.9%this quarter, our operating margins are at their highest level in the lasteleven quarters.  Similarly, dilutedearnings per share have also improved for five consecutive quarters, and at$.48, represents the highest such level for the last fourteen quarters.”

 

- MORE -

 

----

 

 

Mr. Davis continued, “Operationally, we had furtheraccomplishments and made further investments in new technology and equipment inthe quarter that will drive future growth in sales and profits.  We are very pleased with the momentum thatour sales and marketing initiatives are showing, including national sales,CGXSolutions and cross-selling. Additionally, our acquisition pipeline is growing.”

 

Mr. Davis concluded, “We are optimistic that thefactors contributing to our strong June quarter will sustain for the remainderof the year.  While we cannot predictwith certainty the behavior of our external environment, we are confident inthe inherent strength of our business. In the upcoming September quarter, we expect to generate revenue of $186million and earnings per diluted share of $.50.”

 

Consolidated Graphics will host a conference calltoday, July 28, 2004, at 11 a.m. Eastern Time, to discuss its first 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.

 

  Consolidated Graphics, Inc. is one of thenation’s leading commercial sheetfed, web and digital printing companies.Through its network of printing companies in 25 states, the Company produceshigh-quality customized printed materials for a broad customer base thatincludes many of the most recognized companies in the country.  Consolidated Graphics also offers anextensive and growing range of digital and Internet-based services andsolutions marketed through CGXSolutions. Consolidated Graphics is focused on adding value to its operatingcompanies by providing financial and operational strengths, management supportand technological advantages associated with a national organization. For moreinformation, visit the Company’s Web site athttp://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.

*(Tableto follow)*

* *

2

----

 

**CONSOLIDATED GRAPHICS, INC.**

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

*(In thousands, except per shareamounts)*

* *
| ** **                           | ** ** | **Three Months Ended** | ** ** |
|--------------------------------------|------------|------------------------|------------|
| ** **                           | ** ** | **June 30,**           | ** ** |
| ** **                           | ** ** | **2004**               | ** ** | **2003** | ** ** |
| Sales                                |       | $                      | 181,529    |   | $ | 165,829 |   |
| Cost of Sales                        |       | 136,657                |       | 126,768 |   |
| Gross Profit                         |       | 44,872                 |       | 39,061 |   |
| Selling Expense                      |       | 19,521                 |       | 18,160 |   |
| General and  Administrative Expense  |       | 12,848                 |       | 13,183 |   |
| Operating Income                     |       | 12,503                 |       | 7,718 |   |
| Interest  Expense, net               |       | 1,407                  |       | 1,968 |   |
| Income before  Taxes                 |       | 11,096                 |       | 5,750 |   |
| Income Taxes                         |       | 4,272                  |       | 2,185 |   |
| Net Income                           |       | $                      | 6,824      |   | $ | 3,565 |   |
| Earnings Per  Share                  |       |                   |       |   |   |
| Basic                                |       | $                      | .50        |   | $ | .27 |   |
| Diluted                              |       | $                      | .48        |   | $ | .26 |   |
| Weighted Average  Shares Outstanding |       |                   |       |   |   |
| Basic                                |       | 13,584                 |       | 13,350 |   |
| Diluted                              |       | 14,230                 |       | 13,617 |   |

 

3

----