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Multi-Color Corporation Reports Record Results

Monday, May 15, 2006

Press release from the issuing company

CINCINNATI, May 12 -- Multi-Color Corporation today announced fourth quarter and full year results for the year ended March 31, 2006. The Company generated record revenue and earnings during fiscal 2006. Revenue increased to $205.3 million or 47% compared to the prior year. Net income rose 21% to $9.6 million, or $1.43 per diluted share, from $8.0 million, or $1.21 per diluted share in fiscal 2005. Sales and net income were driven by strong organic growth and the Company's acquisition of NorthStar Print Group from Journal Communications, Inc. in January 2005. Frank Gerace, President and CEO of Multi-Color Corporation commented, "We are pleased with our continued growth in both sales and income. Our value proposition, which offers a broad range of technology and innovation to our customers, has benefited us this year along with the growth from the acquisition." Fiscal 2006 Highlights * Sales grew 11% organically (excluding the impact of acquisitions) due to strong demand from existing and new consumer product customers. * Cash generated from operating activities of $20.4 million was used to pay down $12.8 million of debt, make capital investments of $4.5 million, and pay dividends to shareholders of $1.3 million. * Net debt to total capitalization was reduced to 32% at March 31, 2006 from 48% at March 31, 2005. * The successful integration of the NorthStar Print Group. Sales generated by the acquired facilities accounted for $50.1 million of the $65.8 million increase in consolidated sales. * The receipt of numerous industry awards for technical excellence and innovation including: - A record 16 awards in the 28th Annual Awards Competition sponsored by the Tag and Label Manufacturers Institute (TLMI) - Global "Best of the Best" Award by the World Label Association * Recognized by Forbes Magazine as one of America's Best Small Companies "In the face of several major challenges we experienced during fiscal year 2006; weak performance of our Packaging Services division, costs associated with first-year Sarbanes Oxley Act compliance and raw material price pressures, I am very pleased that we produced another record year of earnings for our shareholders," said Frank Gerace. Fourth Quarter Results Multi-Color reported record results for the fourth quarter of fiscal year 2006: * Revenue increased 18% to $53.3 million from $45.3 million in the prior year. Organic growth of 6% for the quarter was lower than experienced during the first three quarters of the fiscal year due to customer demand. * Gross profit increased 9% or $.8 million to $9.7 million from $8.9 million in the fourth quarter of fiscal 2005 due to organic and acquisition volume increases offset by less favorable product mix. * SG&A expenses increased 19% or $.7 million to $4.5 million from $3.8 million in the fourth quarter of fiscal 2005 due primarily to first-year compliance expenses related to Section 404 provisions of the Sarbanes Oxley Act. * Net income rose 3% to $3.0 million, or $.44 per diluted share, from $2.9 million, or $.43 per diluted share in the fourth quarter of fiscal 2005. "In closing, I am proud of achieving our eighth consecutive year of increased sales and operating income and our second consecutive year of rewarding our shareholders with a quarterly dividend," Gerace commented. "This could not have happened without the strong performance of our committed and dedicated associates during the fiscal year. I am confident we are positioned to continue achieving our goals of superior growth and profitability. Our goals for FY2007 will remain the same: (1) Win new customers, (2) Grow with existing customers, (3) Low cost manufacturing and (4) International business expansion," concluded Gerace.




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