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Consolidated Graphics, Inc.
- Commercial Printers -
Category Directory
(713)
787-0977
5858
WESTHEIMER, SUITE 200
HOUSTON, TX 77057
www.consolidatedgraphics.com
Sales
$708
million
Business Description
Consolidated Graphics is a leading national provider of commercial printing
services and is recognized as the largest sheet-fed and half-web commercial
printing company in the United States. Our corporate headquarters are in
Houston, Texas, and we currently operate 65 printing businesses in 25
states. Each of our printing businesses has a well-established operating
history, more than 25 years in most cases.
The majority of our sales are derived from commercial printing services,
which include electronic prepress, printing, finishing, storage and delivery
of high quality, custom-designed products. Examples of such products include
high-quality, multicolor marketing materials, product and capability
brochures, point-of-purchase displays, direct mail pieces, shareholder
communications, catalogs and training manuals. We also serve our customers
by providing fulfillment and mailing services, which complement our
traditional printing services. Additionally, using the CGXmedia brand we
capitalize on our expertise in digital processes and advanced technological
capabilities to provide Internet-based software solutions and electronic
media services to help our customers better manage the print process.
Printing Operations
We currently operate 65 printing businesses in 25 states, with each business
operated as a wholly-owned subsidiary of our Company. We produce high
quality, custom-designed printed materials for a large base of customers in
a broad cross-section of industries, the majority of which are located in
the markets our printing businesses serve. In addition to providing a full
range of prepress, printing and finishing services, our printing businesses
offer fulfillment and mailing services, as well as Internet-based software
solutions and other print-related, value-added services.
Commercial Printing Services
In general, commercial printing includes developing printable material
through electronic prepress services, reproducing images on paper using
printing presses and providing comprehensive finishing and delivery
services. We maintain flexible production schedules in order to react
swiftly to our customers' requirements. Many printing projects require fast
turnaround times, from conception through delivery, and our printing
businesses must maintain physical plant and customer service staff as
necessary to maximize workloads when called upon to do so. Consequently, our
printing businesses do not generally operate at full capacity.
Our electronic prepress services include all of the steps necessary to
prepare media (photographs, artwork, typed copy) for printing. This process
involves converting the media into digital images, separating digital color
images into process colors, assembling films and burning film images onto
printing plates using photochemical processes. Most of our printing
businesses produce printing plates using "computer-to-plate" technology,
whereby digitized text, graphic images and line art are transferred directly
from digital files onto printing plates, eliminating the need for film and
other steps required in manual photochemical processes. Computer-to-plate
technology reduces costs, shortens turnaround time and improves product
quality. We continually evaluate our existing electronic prepress
capabilities and closely monitor the development of newer technology that
may be used to increase productivity and improve product quality to better
serve our customers. One such recent development is the capability to
deliver a high-quality proof for customer approval electronically, versus
delivery in a hard copy format. Certain of our locations are currently
utilizing this technology with a number of their customers. We expect to
expand the use of this technology significantly in the next twelve months.
We primarily use offset lithography to reproduce images on paper, which is
the process that provides the highest quality, lowest cost printed products
for most run lengths. Short-run to medium-run commercial projects are
generally printed on sheet-fed presses, while longer-run projects are
typically printed on web presses.
Our printing operations primarily use sheet-fed printing presses, which are
generally capable of printing 16 pages of letter-sized finished product on a
28 by 40 inch sheet of paper with eight pages on each side (known as a
16-page "signature"). Currently our printing businesses operate a total of
285 sheet-fed presses capable of simultaneously printing from one to eight
colors and are generally capable of running at speeds of up to 15,000
impressions an hour. We have 13 locations which also operate half-size
and/or full-size web presses which print on a continuous roll of paper and
may print up to 32-page signatures on both sides of the paper at maximum
speeds of up to 50,000 impressions an hour. Certain web presses are also
capable of folding, gluing or perforating a printed product. Additionally,
we have 13 printing businesses that also utilize a number of smaller digital
presses that can simultaneously print from one to four colors and are
typically used to handle short-run, fast-turnaround projects, including the
production of documents with variable data requirements. Recent developments
in digital printing technology have expanded the capabilities and improved
the quality of services that we can provide. We expect to made additional
investments in digital printing technology during the next twelve months to
meet the demands of our customers.
Our finishing services include cutting, folding, binding and other
operations necessary to finish the printed product according to customers'
specifications. Many of our printing businesses also offer specialty
finishing capabilities, such as die-cutting, embossing and foil stamping.
Other Complementary Services
By offering innovative solutions that respond to the needs of our customers,
we believe that our Company has a competitive advantage that will help us
generate additional sales. We provide a variety of fulfillment services,
which primarily include assembling, packaging, storing, and distributing
printed promotional, educational and training documents on behalf of our
customers. Many corporations utilize our fulfillment services to help manage
their inventories of printed products and related materials (such as binders
and product samples), as well as provide "just in time" assembly and
delivery of customized materials to end users. Orders for fulfillment
services are frequently received via proprietary, Internet-based print
procurement and inventory management systems maintained by our printing
businesses, including COIN sites (as discussed below). Additionally, we
provide mailing services for large quantities of printed materials
distributed to end-users, a service that is ideal for direct mail and
promotional pieces. We also offer a number of options for sorting,
packaging, inkjet labeling and shipping of printed materials.
By capitalizing on our expertise in digital processes and responding to the
expanded communication needs of our customers, we offer print-related
software solutions and electronic media services through CGXmedia. We have
developed two primary Internet-based software products that are described
below:
• COIN (Custom Ordering Interactive Network) is our proprietary software
tool that helps customers better manage the print process. COIN sites are
customized for each client and are used for ordering, typesetting, proofing,
workflow management and fulfillment of printed materials. COIN puts control
directly on the customer's desktop, generating instant on-line proofs and
providing multi-location organizations with the convenience of secure,
Internet-based remote ordering capability. Customers may also utilize the
electronic invoicing and payment capabilities that are a feature of COIN.
• OPAL (On-line Private Asset Library) is used primarily by companies to
store, archive and retrieve their valuable digital assets, such as images,
logos, documents and other digital files, from any location via a web
browser. OPAL enables customers to efficiently distribute these digital
assets across multiple distribution channels, allowing groups to collaborate
on projects and share materials. OPAL utilizes sophisticated security
architecture that limits access only to users authorized by the customer and
can be tailored to meet specific customer applications.
Through CGXmedia we also offer a variety of electronic media services, such
as CD-ROM development and production, conversion of text in printed or
digital form to eBook format, electronic journal composition, website
hosting and other Internet services.
We have regional CGXmedia sales teams and project managers that assist our
printing businesses in identifying prospective customers and marketing our
CGXmedia products and services. We maintain CGXmedia product development
staff to design and develop customized solutions as needed in response to
the specific needs of each customer. We also utilize support staff at each
of our printing businesses who are trained and able to serve our customers'
needs related to our CGXmedia products and services.
Industry Background
The printing industry is one of the largest industries in the United States,
with total annual sales estimated to be in excess of $150 billion. General
printing services include commercial printing, book and magazine publishing,
financial printing, quick printing and the production of business forms,
greeting cards and other stationery-type products. The largest segment of
the industry is commercial printing, which we estimate generates over $80
billion in annual U.S. sales based on available industry data. Most of the
printing businesses operating in the United States today are privately-owned
and individually generate less than $35 million in annual sales.
A consolidation trend in the commercial printing industry emerged in the
1990's as owners of medium-sized printing businesses (those with annual
sales of $2 million to $35 million) sought to address several new industry
challenges and evaluate exit strategies. In order to limit personal
financial risk, increase personal financial liquidity or facilitate plans to
eventually retire, owners of printing businesses became more willing to sell
their companies to larger, better-capitalized companies. We believe that CGX
is one of only a few potential buyers with the financial strength and
management expertise necessary to acquire such medium-sized printing
businesses.
In recent years, printing design and prepress workflow have shifted from art
boards to a digital environment. Prepress computer equipment based on a
complete digital workflow, along with more sophisticated printing presses
and bindery equipment, are more efficient, operate much faster and require
less labor. Therefore, commercial printing businesses must make substantial
capital investments in such newer equipment over time in order to remain
competitive.
Print buyers are increasingly seeking shorter print runs and the ability to
personalize more sophisticated marketing materials to strategically target
certain markets or demographics. The development of digital technology and
acceptance of Internet-based solutions for managing the print process have
generated demand for printing companies to offer complementary, value-added
services to their customers. Examples of such complementary services include
fulfillment and inventory management, variable-data printing, inkjet
labeling, mailing, CD-ROM production, on-line print procurement and digital
asset maintenance. Additionally, more and more large corporations are
seeking to reduce operating costs by streamlining their purchasing process
and limiting their number of suppliers. These large customers want to align
themselves with printing companies that have a significant national presence
and can offer a wide range of commercial print capabilities and other
print-related, value-added services.
In general, changes in prevailing U.S. economic conditions may significantly
impact the commercial printing industry. To the extent weakness in the U.S.
economy causes local and national corporations to reduce their spending on
advertising and marketing materials, the demand for commercial printing
services may be adversely affected. Further, compounding a decline in
demand, competitive pricing pressures may occur and negatively impact the
level of sales and profit margins generated by our printing businesses.
Commercial Printers in the Directory
Consolidated Graphics
Quebecor
R.R. Donnelley & Sons
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