=============================================================================
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
------------------------
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED): APRIL 26, 2000
CONSOLIDATED GRAPHICS, INC.
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
TEXAS 0-24068 76-0190827
(STATE OR OTHER JURISDICTION (COMMISSION FILE NUMBER) (I.R.S. EMPLOYER
OF INCORPORATION) IDENTIFICATION NO.)
5858 WESTHEIMER, SUITE 200
HOUSTON, TEXAS 77057
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES AND ZIP CODE)
REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: (713) 787-0977
=============================================================================
ITEM 5. OTHER EVENTS
On April 26, 2000, Consolidated Graphics, Inc. (the "Company") announced
the results of its fiscal 2000 fourth quarter. In addition, the Company
announced that it has repurchased 2.1 million shares of its common stock since
the adoption of its share buyback program and that the Board of Directors has
authorized the repurchase of an additional 1.4 million shares of its common
stock. A copy of the press release is attached hereto as Exhibit 99.1.
The attached press release may contain forward-looking information. Readers
are cautioned that such information involves risks and uncertainties, including
the possibility that events may occur which would prevent the Company from
achieving comparable financial results in the future or completing its pending
or future acquisitions.
<PAGE>
ITEM 7. FINANCIAL STATEMENTS AND EXHIBIT
(A) EXHIBIT
The following exhibit is filed herewith:
99.1 Press release of the Company dated April 26, 2000, related to the
announcement of the Company's fiscal 2000 fourth quarter results.
In addition, the Company announced that it has repurchased 2.1
million shares of its common stock since the adoption of its
share buyback program and that the Board of Directors has
authorized the repurchase of an additional 1.4 million shares of
its common stock.
SIGNATURE
PURSUANT TO THE REQUIREMENTS OF THE SECURITIES EXCHANGE ACT OF 1934, THE
REGISTRANT HAS DULY CAUSED THIS REPORT TO BE SIGNED ON ITS BEHALF BY THE
UNDERSIGNED HEREUNTO DULY AUTHORIZED.
CONSOLIDATED GRAPHICS, INC.
(Registrant)
By:/s/ G. Christopher Colville
G. CHRISTOPHER COLVILLE
EXECUTIVE VICE PRESIDENT-
MERGERS & ACQUISITIONS
CHIEF FINANCIAL AND ACCOUNTING OFFICER
Date: April 26, 2000
2
EXHIBIT 99.1
FOR: Consolidated Graphics, Inc.
CONTACT: Tara Taranto
Consolidated Graphics, Inc.
Investor Relations Manager
(713) 787-0977
Betsy Brod/Keith Curtis
Media:Jennifer Kirksey
Morgen-Walke Associates, Inc.
(212) 850-5600
FOR IMMEDIATE RELEASE
CONSOLIDATED GRAPHICS REPORTS YEAR-END RESULTS
Houston, Texas - April 26, 2000 - Consolidated Graphics, Inc. (NYSE:CGX)
today announced results for its fiscal year ended March 31, 2000.
For the twelve months ended March 31, 2000, total sales increased 43% to
$624.9 million compared to $436.0 million in 1999. Net income increased 19% to
$38.5 million, or $2.51 per diluted share, versus $32.3 million, or $2.28 per
diluted share, in the prior-year period. Operating income for the twelve-month
period increased 28% to $77.6 million from $60.7 million.
Total revenues for the fiscal 2000 fourth quarter increased 30% to $167.8
million compared to $129.3 million in the prior year period. Net income for the
fourth quarter was $8.2 million, or $.58 per diluted share, compared to $9.6
million, or $.65 per diluted share in 1999. Operating income for the fourth
quarter was $17.9 million, unchanged from the corresponding period in 1999.
Joe R. Davis, Chairman and Chief Executive Officer, commented, "Our fourth
quarter results were in line with our expectations as we continue to address the
challenges of current conditions in the printing industry as well as pursue
opportunities with our e-business strategy and national account sales
initiatives. We continue to be a very profitable company with industry-leading
operating margins. These margins were impacted however by our efforts to
increase sales volumes in the midst of unfavorable industry conditions, which
persisted through much of the quarter, together with marketing costs related to
the roll out of our e-business strategy.
"During the fourth quarter, we made considerable progress with our
e-business strategy. We are completing the development of significant branded
e-business services, including OPAL (Online Print Asset Library) and COIN
(Custom Ordering Interactive Network), which will be highly attractive to our
existing print customers as well as open new sales channels. In addition, we
have formed CGXMedia to market our ability to provide complementary electronic
services to our customers on a national basis."
-MORE-
Consolidated Graphics Reports Year End Results Page -2-
<PAGE>
Mr. Davis concluded, "We continue to seek to gain market share in this very
competitive print environment. Our national network of printing companies, whose
geographic reach and extensive printing capabilities is unmatched in the
industry, is well-positioned to serve national accounts and we expect positive
developments from recent efforts in this area in the near future. In the
meantime, we remain committed to generating above industry average revenue
growth rates while maintaining our industry-leading operating margins."
In addition, the Company announced that it has repurchased 2.1 million
shares of its common stock since the adoption of its share buyback program,
reducing its total common stock outstanding to 13.7 million shares. The
Company's Board of Directors has authorized the repurchase of an additional 1.4
million shares of common stock that may be purchased from time to time in
open-market purchases or in privately negotiated block purchase transactions.
The amount and timing of any purchases will depend on upon a number of factors,
including the price and availability of the Company's shares, general market
conditions and certain provisions included in the Company's existing bank credit
agreements.
Consolidated Graphics operates printing companies in 25 states with
annualized revenues in excess of $650 million. For more information, visit the
Company's Web site at WWW.CONSOLIDATEDGRAPHICS.COM.
This press release contains forward-looking statements, which involve known
and unknown risks, uncertainties or other factors that could cause actual
results to materially differ from the results, performance, or other
expectations implied by these forward-looking statements. Consolidated Graphics'
expectations regarding run-rate revenues assume, among other things, general
economic conditions, continued demand for its product, the availability of raw
materials, retention of its key management and operating personnel, as well as
other factors detailed in Consolidated Graphics' filings with the Securities and
Exchange Commission.
(Table Follows)
<PAGE>
CONSOLIDATED GRAPHICS, INC.
Consolidated Income Statement
(In thousands, except per share amounts)
Three Months Ended Year Ended
March 31, March 31,
------------------- -------------------
2000 1999 2000 1999
-------- -------- -------- --------
Sales .............................. $167,772 $129,313 $624,895 $435,961
Cost of Sales ...................... 119,704 88,924 437,345 298,935
GROSS PROFIT ..................... 48,068 40,389 187,550 137,026
Selling Expense .................... 16,840 12,628 61,267 42,767
General and Administrative Expense . 13,310 9,908 48,677 33,605
OPERATING INCOME ................. 17,918 17,853 77,606 60,654
Interest Expense, net .............. 4,308 2,130 13,476 7,745
Pretax Income .................... 13,610 15,723 64,130 52,909
Income Taxes ....................... 5,442 6,133 25,651 20,634
NET INCOME ....................... $ 8,168 $ 9,590 $ 38,479 $ 32,275
Earnings Per Share - Basic ......... $ .58 $ .66 $ 2.54 $ 2.35
Earnings Per Share - Diluted ....... $ .58 $ .65 $ 2.51 $ 2.28
Weighted Average Shares Outstanding
Basic ............ 14,138 14,445 15,155 13,762
Diluted .......... 14,195 14,866 15,336 14,126
# # #
