Multi-Color Corporation Releases Third Quarter Earnings
Wednesday, February 05, 2014
Press release from the issuing company
CINCINNATI, OHIO - Multi-Color Corporation (NASDAQ: LABL) today announced third quarter fiscal 2014 results.
"Softer than normal revenues in our Wine and Spirit markets and lower than average gross margins from 2013 acquisitions led to a lower gross margin ratio for the quarter than the prior year. Lower gross margins impacted the bottom line, resulting in lower than expected Core EPS," said Nigel Vinecombe, President and CEO of Multi-Color Corporation.
Third quarter highlights:
Selling, general and administrative (SG&A) expenses increased by $0.1 million to $15.3 million compared to the prior year quarter. Core SG&A expenses decreased by 4% compared to the prior year quarter. Core SG&A expenses were 8% of sales in the current year quarter, a decrease from 9% of sales in the prior year quarter. Non-core items included in SG&A expenses in the three months ended December 31, 2013 consisted of $0.3 million of acquisition expenses related to fiscal 2014 acquisitions and $1.4 million related to plant consolidation costs for the closure of the El Dorado Hills, California facility. Special items included in SG&A expenses in the three months ended December 31, 2012 consisted of $0.5 million of costs related to the consolidation and relocation of plants and $0.6 million of integration expenses related to the York Label Group acquisition.
Operating income decreased $1.4 million or 9% compared to the prior year quarter. Core operating income decreased 5% to $15.5 million from $16.3 million. Non-core items relate to acquisition, integration and plant consolidation expenses in the current and prior year quarters. The decrease in operating profit was due primarily to lower profit margins in the current year quarter.
Diluted earnings per share (EPS) increased 47% to $0.53 cents per diluted share from $0.36 cents in the prior year quarter. Excluding the impact of the special items noted below, core EPS decreased 12% to $0.37 cents per diluted share from $0.42 cents in the prior year quarter. Net income increased to $8.9 million from $5.9 million in the prior year. Core net income decreased to $6.2 million from $6.8 million in the prior year quarter.
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