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 |
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(Address of principal executive offices) | (Zip Code) |
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, litigation charges
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; |
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| 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 |
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| it helps investors to assess compliance with financial ratios and covenants
included in our primary bank facility. |
Fiscal | Fiscal 2009 | Fiscal 2010 | ||||||||||||||||||||||||||||||||||||||
($MM) | 2009 | 2010 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | ||||||||||||||||||||||||||||||
Sales |
1,145.1 | 990.9 | 285.2 | 297.0 | 315.8 | 247.2 | 225.9 | 251.6 | 276.4 | 237.0 | ||||||||||||||||||||||||||||||
Net Income/(Loss) |
(39.6 | ) | 14.1 | 9.6 | 10.3 | (43.6 | ) | (15.9 | ) | (0.3 | ) | 2.1 | 11.4 | 0.9 | ||||||||||||||||||||||||||
Income taxes |
(5.8 | ) | 3.9 | 6.1 | 7.2 | (16.1 | ) | (3.1 | ) | (1.3 | ) | 2.2 | 4.6 | (1.5 | ) | |||||||||||||||||||||||||
Interest expense, net |
15.0 | 9.6 | 4.2 | 3.9 | 4.1 | 2.8 | 2.5 | 2.3 | 2.6 | 2.1 | ||||||||||||||||||||||||||||||
Depreciation and amortization |
66.5 | 69.7 | 15.8 | 16.2 | 16.9 | 17.6 | 17.6 | 17.8 | 17.4 | 16.9 | ||||||||||||||||||||||||||||||
Goodwill impairment charge |
83.3 | 6.1 | | | 62.5 | 20.8 | | | | 6.1 | ||||||||||||||||||||||||||||||
Litigation and other charges |
17.4 | 7.2 | | | 17.0 | 0.4 | | 2.6 | 3.1 | 1.4 | ||||||||||||||||||||||||||||||
Share-based compensation expense |
6.9 | 5.0 | 1.6 | 1.8 | 1.7 | 1.8 | 1.5 | 1.2 | 1.2 | 1.1 | ||||||||||||||||||||||||||||||
Non-Cash foreign currency transaction net (gain)/loss |
(0.8 | ) | 0.4 | 0.0 | (0.3 | ) | (0.4 | ) | (0.2 | ) | (0.1 | ) | 0.2 | 0.0 | 0.1 | |||||||||||||||||||||||||
Net loss (gain) from asset dispositions* |
0.6 | 1.6 | 0.2 | 0.3 | 0.2 | (0.1 | ) | 0.1 | 0.3 | 1.4 | (0.2 | ) | ||||||||||||||||||||||||||||
Adjusted EBITDA |
143.5 | 117.7 | 37.6 | 39.3 | 42.4 | 24.2 | 20.1 | 28.7 | 41.8 | 27.0 | ||||||||||||||||||||||||||||||
Adjusted EBITDA Margin |
12.5 | % | 12.5 | % | 13.2 | % | 13.2 | % | 13.4 | % | 9.8 | % | 8.9 | % | 11.4 | % | 15.1 | % | 11.4 | % |
* | Included in depreciation and amortization in the Companys Consolidated Statements of Cash Flows |
Fiscal | Fiscal 2009 | Fiscal 2010 | ||||||||||||||||||||||||||||||||||||||
($MM) | 2009 | 2010 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | ||||||||||||||||||||||||||||||
Net cash provided by operating activities |
141.1 | 160.9 | 36.6 | 7.7 | 44.9 | 51.9 | 33.9 | 62.5 | 23.9 | 40.6 | ||||||||||||||||||||||||||||||
Capital expenditures* |
(76.9 | ) | (28.2 | ) | (8.0 | ) | (26.5 | ) | (21.4 | ) | (20.9 | ) | (4.5 | ) | (6.9 | ) | (10.3 | ) | (6.6 | ) | ||||||||||||||||||||
Proceeds from asset dispositions |
1.4 | 7.2 | 1.0 | 0.2 | 0.1 | 0.2 | 0.5 | 0.2 | 2.5 | 4.1 | ||||||||||||||||||||||||||||||
Free Cash Flow |
65.6 | 139.8 | 29.5 | (18.6 | ) | 23.5 | 31.2 | 29.8 | 55.8 | 16.0 | 38.1 |
* | Capital expenditures include all expenditures for property, plant and
equipment, including those that are directly financed. |
Fiscal | Fiscal 2009 | Fiscal 2010 | ||||||||||||||||||||||||||||||||||||||
($MM) | 2009 | 2010 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | ||||||||||||||||||||||||||||||
Sales |
1,145.1 | 990.9 | 285.2 | 297.0 | 315.8 | 247.2 | 225.9 | 251.6 | 276.4 | 237.0 | ||||||||||||||||||||||||||||||
Operating income/(loss) |
(30.4 | ) | 27.6 | 20.0 | 21.3 | (55.5 | ) | (16.2 | ) | 0.9 | 6.6 | 18.6 | 1.5 | |||||||||||||||||||||||||||
Goodwill impairment charge |
83.3 | 6.1 | | | 62.5 | 20.8 | | | | 6.1 | ||||||||||||||||||||||||||||||
Litigation and other charges |
17.4 | 7.2 | | | 17.0 | 0.4 | | 2.6 | 3.1 | 1.4 | ||||||||||||||||||||||||||||||
Share-based compensation expense |
6.9 | 5.0 | 1.6 | 1.8 | 1.7 | 1.8 | 1.5 | 1.2 | 1.2 | 1.1 | ||||||||||||||||||||||||||||||
Non-Cash foreign currency transaction net (gain)/loss |
(0.8 | ) | 0.4 | 0.0 | (0.3 | ) | (0.4 | ) | (0.2 | ) | (0.1 | ) | 0.2 | 0.0 | 0.1 | |||||||||||||||||||||||||
Adjusted Operating Income |
76.4 | 46.3 | 21.6 | 22.8 | 25.4 | 6.6 | 2.4 | 10.6 | 23.0 | 10.3 | ||||||||||||||||||||||||||||||
Adjusted Operating Margin |
6.7 | % | 4.7 | % | 7.6 | % | 7.7 | % | 8.0 | % | 2.7 | % | 1.0 | % | 4.2 | % | 8.3 | % | 4.4 | % |
Fiscal | Fiscal 2009 | Fiscal 2010 | ||||||||||||||||||||||||||||||||||||||
($MM) | 2009 | 2010 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | ||||||||||||||||||||||||||||||
Net Income/(Loss) |
(39.6 | ) | 14.1 | 9.6 | 10.3 | (43.6 | ) | (15.9 | ) | (0.3 | ) | 2.1 | 11.4 | 0.9 | ||||||||||||||||||||||||||
Goodwill impairment charge |
83.3 | 6.1 | | | 62.5 | 20.8 | | | | 6.1 | ||||||||||||||||||||||||||||||
Tax benefit of goodwill impairment charge |
(20.1 | ) | (2.4 | ) | | | (16.5 | ) | (3.6 | ) | | | | (2.4 | ) | |||||||||||||||||||||||||
Litigation and other charges |
17.4 | 7.2 | | | 17.0 | 0.4 | | 2.6 | 3.1 | 1.4 | ||||||||||||||||||||||||||||||
Tax benefit of litigation and other charges |
(6.8 | ) | (2.8 | ) | | | (6.6 | ) | (0.1 | ) | | (1.0 | ) | (1.2 | ) | (0.6 | ) | |||||||||||||||||||||||
Share-based compensation expense, net of tax |
4.2 | 3.1 | 1.0 | 1.1 | 1.1 | 1.1 | 0.9 | 0.7 | 0.7 | 0.7 | ||||||||||||||||||||||||||||||
Non-Cash foreign currency transaction net (gain)/loss, net of tax |
(0.5 | ) | 0.2 | 0.0 | (0.2 | ) | (0.2 | ) | (0.1 | ) | (0.0 | ) | 0.1 | 0.0 | 0.1 | |||||||||||||||||||||||||
Adjusted Net Income |
38.0 | 25.5 | 10.6 | 11.2 | 13.7 | 2.5 | 0.6 | 4.6 | 14.1 | 6.2 |
Fiscal | Fiscal 2009 | Fiscal 2010 | ||||||||||||||||||||||||||||||||||||||
($MM) | 2009 | 2010 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | ||||||||||||||||||||||||||||||
Diluted earnings per share (loss per share) |
(3.55 | ) | 1.23 | 0.84 | 0.90 | (3.91 | ) | (1.43 | ) | (0.03 | ) | 0.18 | 1.00 | 0.08 | ||||||||||||||||||||||||||
Goodwill impairment charge |
7.27 | 0.54 | | | 5.51 | 1.83 | | | | 0.53 | ||||||||||||||||||||||||||||||
Tax benefit of goodwill impairment charge |
(1.75 | ) | (0.21 | ) | | | (1.45 | ) | (0.32 | ) | | | | (0.21 | ) | |||||||||||||||||||||||||
Litigation and other charges |
1.51 | 0.63 | | | 1.50 | 0.03 | | 0.23 | 0.27 | 0.12 | ||||||||||||||||||||||||||||||
Tax benefit of litigation and other charges |
(0.59 | ) | (0.25 | ) | | | (0.58 | ) | (0.01 | ) | | (0.09 | ) | (0.11 | ) | (0.05 | ) | |||||||||||||||||||||||
Share-based compensation expense, net of tax |
0.37 | 0.27 | 0.09 | 0.09 | 0.09 | 0.10 | 0.08 | 0.06 | 0.06 | 0.06 | ||||||||||||||||||||||||||||||
Non-Cash foreign currency transaction net (gain)/loss, net of tax |
(0.04 | ) | 0.02 | 0.00 | (0.01 | ) | (0.02 | ) | (0.01 | ) | (0.00 | ) | 0.01 | 0.00 | 0.01 | |||||||||||||||||||||||||
Adjustment for diluted shares outstanding |
0.10 | | | | 0.07 | 0.03 | | | | 0.00 | ||||||||||||||||||||||||||||||
Adjusted Diluted Earnings per Share (Loss per Share) |
3.32 | 2.23 | 0.93 | 0.98 | 1.21 | 0.22 | 0.05 | 0.40 | 1.23 | 0.54 |
99.1 | Press release of the Company dated May 5, 2010, announcing the Companys
fiscal 2010 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
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Press release of the Company dated May 5, 2010, announcing the Companys fiscal 2010 fourth quarter and year-end results. |