General commercial printing company Consolidated Graphics, Inc.(CGX), Wednesday reported a sharp decline in profit for the second quarter, reflecting lower revenues due to lower election-related business, and litigation charges.
The Houston, Texas-based company's net income for the second quarter declined to $2.08 million or $0.18 per share from $10.30 million or $0.90 per share in the previous year. Results for the quarter include litigation charges of $2.63 million and tax benefits of litigation and other charges of $1.03 million.
On an adjusted basis, net income declined to $3.82 million or $0.34 per share from $10.15 million or $0.88 per share in the previous year.
Net sales for the quarter declined 15% to $251.63 million from $296.95 million last year. The company noted the revenue decline was primarily due to a year-over-year same-store revenue decline caused by the current economic environment and lower election-related business.
Cost of sales were $196.18 million for the quarter, compared to $224.36 million in the previous year. Gross profit declined 24% to $55.44 million from $72.59 million a year ago.
For the six-month period, net income declined to $1.77 million or $0.16 per share from $19.92 million or $1.74 per share a year ago. Total sales for the period declined 18% to $477.49 million from $582.14 million a year ago.
Looking forward, the company expects third quarter revenue to be in the range of $250-265 million representing a same store sales decline of 10-15%, excluding election-related business.
CGX is currently trading at $22.58, up 2.48 or 12.34%, on a volume of 101K shares on the NYSE.
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