UNITED STATES
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): MAY 7, 2008
CONSOLIDATED GRAPHICS, INC.
(Exact name of registrant as specified in its charter)
TEXAS | 001-12631 | 76-0190827 | ||
(State or other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
5858 WESTHEIMER, SUITE
200 HOUSTON, TEXAS |
77057 | |
(Address of Principal Executive Offices) | (Zip Code) |
Registrant’s telephone number, including area code: (713) 787-0977
(Former name or former address if changed since last report.) |
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
o Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
o Soliciting material pursuant
to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule
14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule
13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
| it is widely used by investors in our industry to measure a companys operating
performance without regard to items such as interest, depreciation, non-cash
currency transactions, impairments and amortization expenses and long-term non-cash
share-based compensation expense, which can vary substantially from company to
company depending upon accounting policies and book value of assets, capital
structure and the method by which assets were acquired; |
| it helps investors more meaningfully evaluate and compare the results of our
operations from period to period by removing the impact of our capital structure
(primarily interest charges on our outstanding debt), asset base (primarily
depreciation and amortization expense and goodwill impairment charges), non-cash
gains/losses from foreign currency transactions, and long-term non-cash
share-based incentive plans from our operating results; and |
| it helps investors to assess compliance with financial ratios and covenants
included in our primary bank facility. |
Fiscal | Fiscal 2007 | Fiscal 2008 | ||||||||||||||||||||||||||||||||||||||||||
($MM) | 2006 | 2007 | 2008 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | |||||||||||||||||||||||||||||||||
Sales |
879.0 | 1006.1 | 1,095.3 | 238.4 | 234.2 | 269.6 | 263.9 | 258.6 | 259.7 | 289.5 | 287.5 | |||||||||||||||||||||||||||||||||
Net Income |
38.5 | 50.7 | 59.3 | 13.7 | 13.7 | 16.4 | 6.9 | 13.6 | 13.3 | 19.4 | 13.0 | |||||||||||||||||||||||||||||||||
Income taxes |
23.2 | 29.4 | 29.0 | 7.3 | 8.4 | 9.2 | 4.4 | 9.3 | 7.4 | 4.4 | 7.9 | |||||||||||||||||||||||||||||||||
Interest expense, net |
5.5 | 6.7 | 12.0 | 1.4 | 1.8 | 1.6 | 2.0 | 1.9 | 2.5 | 3.6 | 4.0 | |||||||||||||||||||||||||||||||||
Depreciation and amortization |
41.3 | 44.0 | 52.3 | 10.6 | 10.7 | 10.8 | 12.0 | 12.3 | 12.7 | 13.1 | 14.2 | |||||||||||||||||||||||||||||||||
Goodwill Impairment |
| 11.5 | | | | | 11.5 | | | | | |||||||||||||||||||||||||||||||||
Non-Cash Foreign Currency Transaction Net Gain |
| | (3.8 | ) | | | | | (2.8 | ) | (1.6 | ) | (0.5 | ) | 1.1 | |||||||||||||||||||||||||||||
Share-based compensation expense |
| 2.8 | 2.1 | 1.2 | 0.5 | 0.5 | 0.5 | 1.2 | 0.3 | 0.3 | 0.3 | |||||||||||||||||||||||||||||||||
Net loss (gain) from asset dispositions* |
4.3 | 1.3 | 1.6 | 0.3 | (0.2 | ) | 0.3 | 0.8 | 0.4 | 0.6 | 0.5 | 0.1 | ||||||||||||||||||||||||||||||||
EBITDA |
112.9 | 146.3 | 152.5 | 34.5 | 34.9 | 38.8 | 38.1 | 35.9 | 35.2 | 40.8 | 40.6 | |||||||||||||||||||||||||||||||||
EBITDA Margin |
12.8 | % | 14.5 | % | 13.9 | % | 14.5 | % | 14.9 | % | 14.4 | % | 14.4 | % | 13.9 | % | 13.6 | % | 14.1 | % | 14.1 | % |
* | Included in depreciation and amortization in the Consolidated Statements of Cash Flows |
Fiscal | Fiscal 2007 | Fiscal 2008 | ||||||||||||||||||||||||||||||||||||||||||
($MM) | 2006 | 2007 | 2008 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | |||||||||||||||||||||||||||||||||
Net cash provided by operating activities |
79.2 | 72.8 | 110.2 | 22.4 | (5.6 | ) | 42.9 | 13.0 | 33.2 | 8.5 | 32.7 | 35.8 | ||||||||||||||||||||||||||||||||
Capital expenditures* |
(32.9 | ) | (46.4 | ) | (82.4 | ) | (8.4 | ) | (8.0 | ) | (10.9 | ) | (19.0 | ) | (9.3 | ) | (21.3 | ) | (23.4 | ) | (28.4 | ) | ||||||||||||||||||||||
Proceeds from asset dispositions |
2.5 | 4.1 | 2.0 | 1.2 | 0.6 | 0.7 | 1.6 | 0.6 | 0.9 | 0.3 | 0.2 | |||||||||||||||||||||||||||||||||
Free Cash Flow |
48.9 | 30.5 | 29.8 | 15.2 | (13.0 | ) | 32.7 | (4.4 | ) | 24.5 | (11.9 | ) | 9.6 | 7.6 |
* | Capital expenditures for property, plant and equipment, including capital expenditures which are
directly financed and those accrued as a current liability |
Fiscal | Fiscal 2007 | Fiscal 2008 | ||||||||||||||||||||||||||||||||||||||||||
($MM) | 2006 | 2007 | 2008 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | |||||||||||||||||||||||||||||||||
Sales |
879.0 | 1,006.1 | 1,095.3 | 238.4 | 234.2 | 269.6 | 263.9 | 258.6 | 259.7 | 289.5 | 287.5 | |||||||||||||||||||||||||||||||||
Operating income |
67.2 | 86.8 | 100.3 | 22.4 | 23.9 | 27.2 | 13.3 | 24.8 | 23.2 | 27.4 | 24.9 | |||||||||||||||||||||||||||||||||
Share-based compensation expense |
| 2.8 | 2.1 | 1.2 | 0.5 | 0.5 | 0.5 | 1.2 | 0.3 | 0.3 | 0.3 | |||||||||||||||||||||||||||||||||
Non-Cash Foreign Currency Transaction Net Gain |
| | (3.8 | ) | | | | | (2.8 | ) | (1.6 | ) | (0.5 | ) | 1.1 | |||||||||||||||||||||||||||||
Goodwill impairment /other intangible asset |
1.3 | 13.1 | 2.4 | 0.4 | 0.3 | 0.5 | 11.9 | 0.6 | 0.6 | 0.6 | 0.6 | |||||||||||||||||||||||||||||||||
Adjusted Operating Income |
68.5 | 102.7 | 101.0 | 24.0 | 24.7 | 28.2 | 25.7 | 23.8 | 22.5 | 27.8 | 26.9 | |||||||||||||||||||||||||||||||||
Adjusted Operating Margin |
7.8 | % | 10.2 | % | 9.2 | % | 10.0 | % | 10.6 | % | 10.5 | % | 9.7 | % | 9.2 | % | 8.7 | % | 9.6 | % | 9.4 | % |
99.1 | Press release of the Company dated May 7, 2008, announcing the Companys
fiscal 2008 fourth quarter and year-end results. |
CONSOLIDATED GRAPHICS, INC. (Registrant) |
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By: | /s/ Jon C. Biro | |||
Jon C. Biro | ||||
Executive Vice President and Chief Financial and Accounting Officer |
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Exhibit | ||
Number | Description | |
99.1
|
Press release of the Company dated May 7, 2008, announcing the Companys fiscal 2008 fourth quarter and year-end results. |