Multi-Color Corporation Increases Profit 52%
Friday, August 01, 2008
Press release from the issuing companyCINCINNATI, July 31 -- Multi-Color Corporation today announced financial results for the first quarter ended June 30, 2008, compared with the same period a year ago.
First quarter highlights included:
-- Net revenues increased 52% to $79.5 million from $52.3 million. The significant increase in revenues was due to the Collotype acquisition completed in February 2008, which generated $30.7 million in revenues for the quarter.
-- North American organic sales decreased 7% compared to the prior year due primarily to a reduction in orders from a major customer.
-- Gross profit increased 52% or $5.1 million. The increase in gross profit from Collotype was partially offset by the reduction in organic sales and start-up costs incurred in the Company's new Batavia, Ohio facility during the quarter.
-- Selling, general and administrative expenses increased due to comparable expenses from Collotype.
-- Operating income increased 44% to $6.5 million from $4.5 million.
-- Interest expense increased $2.1 million due to increased debt incurred to finance the Collotype acquisition.
-- Net income from continuing operations of $2.8 million was flat compared to the prior year.
-- Earnings Per Share (EPS) from continuing operations decreased to 23 cents per diluted share from 28 cents due to lower organic earnings in North America.
-- The Company repaid $7.7 million or 6% of long term debt due to strong operating cash flows during the quarter.
-- The Company was awarded Miller Brewing's Supplier of the Year for an unprecedented fourth time.
Frank Gerace, President and CEO of Multi-Color Corporation stated, "As expected, our recently acquired international label business performed very well during the quarter. However, in spite of significant sales increases from most of our top ten customers, we experienced negative organic growth due to lower orders from our largest customer. In addition, continued start-up costs associated with our manufacturing expansion project had a negative impact during the quarter. In summary, these three factors contributed to our flat earnings year over year."
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