EXHIBIT 99.2
FOR: Consolidated Graphics, Inc.
CONTACT: Wayne M. Rose
Chief Financial Officer
Consolidated Graphics, Inc
(713) 339-5756
Betsy Brod/Karen Pagonis
Media: Steve DiMattia
Morgen-Walke Associates, Inc.
(212) 850-5600
FOR IMMEDIATE RELEASE
CONSOLIDATED GRAPHICS COMMENTS ON THIRD QUARTER
HOUSTON, TEXAS - January 16, 2001 - Consolidated Graphics, Inc. (NYSE:CGX)
announced today that while total revenues for the quarter ended December 31,
2000 are anticipated to increase approximately 8% over the prior year's
comparable quarter to $171 million, operating income is expected to decline
approximately 22% to between $13.8 and $14.3 million. Net income for the quarter
is expected to be between $5.2 and $5.5 million, or between $.40 to $.42 per
diluted share. The Company attributes the shortfall to the general slowdown in
the economy and print markets in particular. The Company is also reducing its
outlook for its fourth fiscal quarter and next fiscal year.
"In spite of record sales and earnings in October and acceptable
performance in November, the slowdown in business we experienced in December was
very disappointing. While our sales initiatives and growth strategies continue
to yield positive results, these soft market conditions have forced us to become
much more aggressive in pricing to protect market share," commented Joe R.
Davis, Chairman and Chief Executive Officer. "The Company is taking appropriate
action to adjust to this softness in print demand that we have experienced
during these past few weeks, and we remain confident in our strategic plans for
continued growth and profit improvement. Given the current economic environment
and in light of our initiatives currently underway, we believe that our
financial results for the next few quarters will improve gradually over recent
performance."
"Although one-third of our companies increased profitability over their
second quarter results, the softening economy reduced overall margins," stated
Charles F. White, President and Chief Operating Officer. "We are reviewing each
under-performing company and, where appropriate, will develop plans to rapidly
adjust to the current economic environment. Additionally, consolidation within
our organization may be required at certain of our companies, in a few markets,
and we are developing plans to implement those actions where necessary. In the
meantime, we will expand our strategies for national account sales, marketing of
e-commerce products and services, and management development. We remain
confident that these and other strategies already in place should improve growth
and profitability for our shareholders."
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CONSOLIDATED GRAPHICS REPORTS PRELIMINARY 3Q RESULTS PAGE 2
The Company will host a conference call for analysts and institutional
investors at 11:00 a.m. EST (10:00 a.m. CST) January 17, 2001. Joe Davis,
Charles White and Chief Financial Officer Wayne M. Rose will discuss the content
of this release and respond to questions. The call can be accessed through
www.vcall.com. A replay of the call will be available through midnight Tuesday,
January 23, 2001.
Consolidated Graphics, Inc. is the largest sheet-fed and half-web
commercial printing company in the United States. Through its network of locally
managed printing companies in 25 states, the Company produces high-quality
customized printed materials for a broad customer base that includes many of the
most recognized companies in the country. Consolidated Graphics offers an
extensive and growing range of digital and Internet-based services and solutions
marketed through CGXmedia. Consolidated Graphics is focused on adding value to
its operating companies by providing financial and operating strengths,
management support and technological advantages associated with a national
organization. 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
future sales and profitability assume, among other things, stability in the
economy and reasonable growth in the demand for its products, the continued
availability of raw materials at affordable prices, retention of its key
management and operating personnel, as well as other factors detailed in
Consolidated Graphics' filings with the Securities and Exchange Commission. The
forward-looking statements, assumptions and factors stated or referred to in
this press release are based on information available to Consolidated Graphics
today. Consolidated Graphics expressly disclaims any duty to provide updates to
these forward-looking statements, assumptions and other factors after the day of
this release to reflect the occurrence of events or circumstances or changes in
expectations.
