Consolidated Graphics Reports Financial Results For The Quarter And Year Ended March 31, 2013

Consolidated Graphics Reports Financial Results For The Quarter And Year Ended
                                March 31, 2013

Fourth Quarter Highlights:

- Both revenue and same-store sales increased year-over-year

- Operating Income increased 115% to $12.8 million

- Adjusted Diluted Earnings Per Share increased 182% to $.79

PR Newswire

HOUSTON, May 15, 2013

HOUSTON, May 15, 2013 /PRNewswire/ -- Consolidated Graphics, Inc. (NYSE: CGX)
today announced financial results for its fourth quarter and year ended March
31, 2013.

Revenue for the March 2013 quarter increased to $251.0 million, compared to
$250.6 million for the same quarter last year due to a .5% same-store sales
increase, excluding election related business. Adjusted Operating Income
increased 115% for the quarter to $12.8 million or 5.1% of revenue, compared
to $6.0 million or 2.4% of revenue last year. Adjusted Net Income increased
167% to $7.6 million for the quarter, compared to $2.9 million for the prior
year. Adjusted Diluted Earnings Per Share for the March quarter increased 182%
to $.79, compared to $.28 last year. Adjusted EBITDA increased 22.9% to $30.7
million for the quarter and Free Cash Flow was $32.4 million.

Largely due to $12.6 million in charges related to the withdrawal from certain
multi-employer pension plans and impairment of goodwill, operating loss for
the March 2013 quarter was $.2 million. The March 2012 quarter operating loss
was $8.3 million and included charges for withdrawing from certain
multi-employer pension plans and asset impairments. Net loss for the March
2013 quarter was $.3 million or $.03 diluted loss per share, compared to a net
loss of $5.9 million or $.57 diluted loss per share in the prior year.

Revenue for the fiscal year ended March 31, 2013 increased to $1,048 million,
compared to $1,045 million in the prior year and Adjusted Operating Income
increased 7.4% to $54.6 million.

Adjusted EBITDA for the year ended March 31, 2013 increased 4.0% to $127.9
million and Adjusted Diluted Earnings per share were $3.43 for the year,
compared to $2.70 in the prior year. Full year Free Cash Flow was $64.6
million.

Operating income for the year ended March 31, 2013 was $35.7 million and
included $16.9 million in charges for withdrawing from certain multi-employer
pension plans, asset impairment, including goodwill, and facility relocation.
Operating income for the year ended March 31, 2012 was $26.7 million and
included charges for withdrawing from certain multi-employer pension plans,
asset impairment, including goodwill, and facility relocation. Net income for
the year was $22.2 million or $2.26 diluted earnings per share, compared to
net income of $14.1 million or $1.32 diluted earnings per share in the prior
year.

Joe R. Davis, Chairman and Chief Executive Officer of Consolidated Graphics,
commented "We continue to see growth in several key areas of the commercial
printing industry. For example, our temporary point of sale product revenues
are growing and Consolidated Graphics is in a unique position to deliver these
unmatched solutions to customers. These solutions include our ability to
distribute and then print consistent and high quality products across our
platform. Using our solutions, customers can get to market faster, at an
overall lower cost. Other key growth areas for Consolidated Graphics include
digital print, packaging, fulfillment and collectible cards. These product
areas, which represent 38% of our overall sales, all grew compared to last
year and we expect these trends to continue going forward. We will continue to
invest and enhance our capabilities in these areas."

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 to the most directly comparable
GAAP financial measures are included in the attached tables and in the related
Current Report on Form 8-K filed with the Securities and Exchange Commission.
The Form 8-K also includes the basis for management's use of these non-GAAP
financial measures.

Consolidated Graphics, Inc. will host a conference call today, Wednesday, May
15, 2013, at 11:00 a.m. Eastern Time, to discuss its fourth quarter fiscal
2013 results. The conference call will be simultaneously broadcast live over
the Internet on our website (www.cgx.com) and a subsequent archive of such
call will also be available on our website.

Consolidated Graphics, Inc. (CGX), headquartered in Houston, Texas, is one of
North America's leading general commercial printing companies. With 70
printing businesses strategically located across 27 states, Toronto, Prague,
and Gero, Japan, CGX offers an unmatched geographic footprint, unsurpassed
capabilities, and unparalleled levels of convenience, efficiency and service.
With locations in or near virtually every major U.S. market, CGX provides the
service and responsiveness of a local printer enhanced by the economic,
geographic and technological advantages of a large national organization.

Consolidated Graphics' vast and technologically advanced sheetfed and web
printing capabilities are complemented by the world's largest integrated
digital footprint. By coupling North America's most comprehensive printing
capabilities with strategically located fulfillment centers and
industry-leading technology, CGX delivers end-to-end print production and
management solutions that are based on the needs of our customers to improve
their results. For more information, visit www.cgx.com.

Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended, in which the Company discusses
factors it believes may affect its performance or results in the future.
Forward-looking statements are all statements other than historical facts,
such as statements regarding assumptions, expectations, beliefs and
projections about future events or conditions. You can generally identify
forward-looking statements by the appearance in such a statement of words like
"anticipate," "believe," "continue," "could," "estimate," "expect," "intend,"
"may," "might," "plan," "potential," "predict," "forecast," "project,"
"should" or "will" or other comparable words or the negative of such words.
The accuracy of the Company's assumptions, expectations, beliefs and
projections depends on events or conditions that change over time and are thus
susceptible to change based on actual experience, new developments and known
and unknown risks, including those created by general market conditions,
competition and the possibility that events may occur beyond the Company's
control, which may limit its ability to maintain or improve its operating
results or financial condition or acquire additional printing businesses. The
Company gives no assurance that the forward-looking statements will prove to
be correct and does not undertake any duty to update them. The Company's
actual future results might differ from the forward-looking statements made in
this press release for a variety of reasons, which include weakness in the
economy, financial stability of its customers, the sustained growth of its
digital printing business, seasonality of election-related business, its
ability to adequately manage business expenses, including labor costs, the
unfavorable outcome of legal proceedings, the lack of or adequacy of insurance
coverage for its operations, the continued availability of raw materials at
affordable prices, retention of its key management and operating personnel,
satisfactory labor relations, the potential for additional goodwill impairment
charges, or charges related to our withdrawal from multi-employer pension
plans, its ability to identify new acquisition opportunities, negotiate and
finance such acquisitions on acceptable terms and successfully absorb and
manage such acquisitions in a timely and efficient manner, as well as other
risks described under the heading "Risk Factors" of our Annual Report on Form
10-K and the risk factors and cautionary statements described in the other
documents the Company files or furnishes from time to time with the Securities
and Exchange Commission, including its Quarterly Reports on Form 10-Q and
Current Reports on Form 8-K. Should one or more of the foregoing risks or
uncertainties materialize, or should the Company's underlying assumptions,
expectations, beliefs or projections prove incorrect, the Company's actual
results may vary materially from those anticipated in its forward-looking
statements, and its business, financial condition and results of operations
could be materially and adversely affected.

Regulation G Reconciliation

This press release also contains references to the non-GAAP financial measures
of Adjusted EBITDA, which we define as earnings, or net income, before
interest, income taxes, depreciation and amortization, goodwill impairment
charges, other charges and accretion of pension liability, share-based
compensation expense, non-cash foreign currency transaction gains and losses
and net losses/gains from asset dispositions, Free Cash Flow, which we define
as net cash provided by operating activities less capital expenditures plus
proceeds from assets dispositions, Adjusted Operating Income, which we define
as operating income before goodwill impairment charges, other charges and
accretion of pension liability, share-based compensation expense, and non-cash
foreign currency transaction net gains and losses, Adjusted Operating Margin,
which we define as Adjusted Operating Income divided by sales, Adjusted Net
Income, which we define as net income before goodwill impairment charges,
other charges and accretion of pension liability, share-based compensation
expense, non-cash foreign currency transaction net gain and losses, all net
of tax, and Adjusted Diluted Earnings Per Share, which we define as Adjusted
Net Income divided by diluted weighted average number of common shares
outstanding. Reconciliations of these non-GAAP financial measures to the most
directly comparable GAAP financial measures are provided in the tables below.
Management's opinion regarding the usefulness of these non-GAAP financial
measures to investors and a description of the ways in which management used
such measures can be found in the related Current Report on Form 8-K we filed
with the Securities and Exchange Commission.

(Tables to follow)



CONSOLIDATED GRAPHICS, INC.
Condensed Consolidated Income Statements
(In thousands, except per share amounts, and unaudited)
               Three Months Ended                    Year Ended
               March 31,                             March 31,
               2013       2012       Change          2013        2012         Change
                                     $         %                              $         %
Sales          $251,017   $250,551   466       –     $1,048,237  $1,045,195   3,042     –
Cost of Sales  191,579    197,957    (6,378)   (3)   804,969     809,163      (4,194)   (1)
  Gross Profit 59,438     52,594     6,844     13    243,268     236,032      7,236     3
Selling        22,835     22,354     481       2     92,865      90,765       2,100     2
Expenses
General and
Administrative 23,887     25,187     (1,300)   (5)   97,458      97,454       4         –
Expenses
Goodwill
Impairment     949        —          949       nm    949         1,984        (1,035)   (52)
Charge
Other Charges  11,682     13,505     (1,823)   (13)  15,993      18,786       (2,793)   (15)
Other Expense  272        (135)      407       nm    289         294          (5)       (2)
  Operating
  Income       (187)      (8,317)    8,130     nm    35,714      26,749       8,965     34
  (Loss)
Interest       1,146      1,460      (314)     (22)  5,227       6,291        (1,064)   (17)
Expense, Net
  Income
  (Loss)       (1,333)    (9,777)    8,444     nm    30,487      20,458       10,029    49
  before Taxes
Income Tax
Expense        (1,038)    (3,925)    2,887     nm    8,262       6,356        1,906     30
(Benefit)
  Net Income   ($295)     ($5,852)   5,557     nm    $22,225     $14,102      8,123     58
  (Loss)
Earnings
(Loss) Per
Share
  Basic        ($.03)     ($.57)                     $2.27       $1.33
  Diluted      ($.03)     ($.57)                     $2.26       $1.32
Weighted
Average Shares
Outstanding
  Basic        9,621      10,231                     9,812       10,592
  Diluted      9,621      10,231                     9,837       10,708
Effective
Income Tax     78%        40%                        27%         31%
Rate
^______
nm- not
meaningful



CONSOLIDATED GRAPHICS, INC.
Condensed Consolidated Balance Sheets
(In thousands, except share and per share amounts, and unaudited)
                                                      March 31,   March31,

                                                      2013       2012
ASSETS
CURRENT ASSETS
Cash and cash equivalents                             $  12,217   $ 6,065
Accounts receivable, net                              164,647     162,093
Inventories                                           55,389      54,129
Prepaid expenses                                      15,877      14,976
Deferred income taxes                                 10,215      9,763
Total current assets                                  258,345     247,026
PROPERTY AND EQUIPMENT, net                           343,832     377,055
GOODWILL                                              23,870      24,847
OTHER INTANGIBLE ASSETS, net                          11,936      15,623
OTHER ASSETS                                          6,660       10,569
                                                      $ 644,643   $ 675,120
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Current portion of long-term debt                     $ 20,550    $ 23,596
Accounts payable                                      83,578      90,392
Accrued liabilities                                   71,974      68,496
Total current liabilities                             176,102     182,484
LONG-TERM DEBT, net of current portion                103,134     140,150
OTHER LIABILITIES                                     44,255      31,523
DEFERRED INCOME TAXES, net                            42,778      47,262
 Total liabilities                          366,269     401,419
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' EQUITY
Common stock, $.01 par value; 100,000,000 shares
authorized; 9,633,475 and 10,239,819 issued and       96          102
outstanding
Additional paid-in capital                            154,657     161,914
Retained earnings                                     124,139     109,832
Accumulated other comprehensive income (loss)         (518)       1,853
Total shareholders' equity                            278,374     273,701
                                                      $ 644,643   $ 675,120
Total debt                                            $ 123,684   $ 163,746
Debt-to-total capitalization                            31%         37%



CONSOLIDATED GRAPHICS, INC.
Reconciliations of Non-GAAP Financial Measures
(In thousands, except per share amounts, and unaudited)
                             Three Months Ended      Year Ended
                             March 31,               March 31,
                             2013        2012        2013         2012
Net income (loss)            $ (295)     $ (5,852)   $ 22,225     $ 14,102
Income tax expense (benefit) (1,038)     (3,925)     8,262        6,356
Interest expense, net        1,146       1,460       5,227        6,291
Depreciation and             17,646      18,645      72,799       72,419
amortization
Goodwill impairment charge   949         —           949          1,984
Other charges and accretion  11,682      13,623      15,993       19,166
of pension liability
Share-based compensation     476         797         2,325        2,650
expense
Non-cash foreign currency    (111)       (135)       (351)        294
transaction (gain) loss
Net (gain) loss from asset   294         404         459          (321)
dispositions
Adjusted EBITDA              $  30,749   $ 25,017    $  127,888   $ 122,941
Net cash provided by         $  38,435   $ 44,863    $  100,214   $ 108,192
operating activities
Capital expenditures         (7,479)     (11,152)    (38,852)     (59,965)
Proceeds from asset          1,482       515         3,218        3,209
dispositions
Free Cash Flow               $  32,438   $ 34,226    $  64,580    $ 51,436
Operating income (loss)      $  (187)    $ (8,317)   $  35,714    $ 26,749
Goodwill impairment charge   949         —           949          1,984
Other charges and accretion  11,682      13,623      15,993       19,166
of pension liability
Share-based compensation     476         797         2,325        2,650
expense
Non-cash foreign currency    (111)       (135)       (351)        294
transaction (gain) loss
Adjusted Operating Income    $  12,809   $ 5,968     $  54,630    $ 50,843
Adjusted Operating Margin    5.1%        2.4%        5.2%         4.9%
Net income (loss)            $   (295)   $ (5,852)   $  22,225    $  14,102
Goodwill impairment charge   949         —           949          1,984
Tax benefit of goodwill      (370)       —           (370)        (774)
impairment charge
Other charges and accretion  11,682      13,623      15,993       19,166
of pension liability
Tax benefit of other charges
and accretion of             (4,556)     (5,313)     (6,237)      (7,402)
pensionliability
Share-based compensation     290         486         1,417        1,617
expense, net of taxes
Non-cash foreign currency
transaction (gain) loss, net (68)        (82)        (214)        179
of taxes
Adjusted Net Income          $   7,632   $ 2,862     $  33,763    $  28,872



CONSOLIDATED GRAPHICS, INC.
Reconciliations of Non-GAAP Financial Measures
(In thousands, except per share amounts, and unaudited)
                                       Three Months Ended  Year Ended
                                       March 31,           March 31,
                                       2013       2012     2013      2012
Diluted earnings (loss) per share      $  (.03)   $ (.57)  $ 2.26    $ 1.32
Goodwill impairment charge             .10        —        .10       .19
Tax benefit of goodwill impairment     (.04)      —        (.04)     (.07)
charge
Other charges and accretion of pension 1.21       1.32     1.63      1.79
liability
Tax benefit of other charges and       (.47)      (.51)    (.63)     (.70)
accretion of pension liability
Share-based compensation expense, net  .03        .05      .13       .15
of taxes
Non-cash foreign currency transaction  (.01)      (.01)    (.02)     .02
(gain) loss, net oftaxes
Adjusted Diluted Earnings Per Share    $    .79   $ .28    $  3.43   $  2.70

SOURCE Consolidated Graphics, Inc.

Website: http://www.cgx.com
Contact: Jon C. Biro, Executive Vice President/Chief Financial Officer,
Consolidated Graphics, Inc., +1-713-787-0977, or, Matt Steinberg/Katie Pyra,
FTI Consulting, Inc., +1-212-850-5600
 
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