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Multi-Color Corporation Announces Record Core EPS for June Quarter

Monday, August 11, 2014

Press release from the issuing company

CINCINNATI, OHIO - Multi-Color Corporation (NASDAQ: LABL) announces:

"June quarter represents the first quarter with full contributions from all FY14 acquisitions and with no significant one-off integration costs.  Improved gross margins at 21% drove core operating income to 13% of revenues and core EBITDA to 18% of revenues for the quarter.  We remain focused on increasing organic growth and continuing to improve execution in existing businesses this calendar year," said Nigel Vinecombe, President and CEO of Multi-Color Corporation.

Fiscal 2015 highlights: 

  • Net revenues increased 22% to $203.1 million from $166.8 million in the prior year.  Acquisitions occurring after the beginning of fiscal 2014 account for 20% of the increase or $33.2 million.  Organic revenues increased 3% in volume, offset by a 1% decrease due to the unfavorable impact of sales mix and pricing.

  • Gross profit increased $12.4 million or 41% compared to the prior year.  Acquisitions occurring after the beginning of fiscal 2014 contributed $7.5 million to the increase.  Gross margins increased to 21% of sales revenues primarily due to improved operating efficiencies in North America and South America and a strong contribution from acquisitions occurring after the beginning of fiscal 2014.  Prior year gross margins at 18% were impacted by unusually high costs related to press transfers and installations and charges for inventory write-offs.

  • Selling, general and administrative (SG&A) expenses increased $2.4 million or 17% compared to the prior year.  Acquisitions occurring after the beginning of fiscal 2014 contributed $2.4 million to the increase.  Core SG&A, as a percent of sales, was 8% for both the current and prior periods.  

  • Non-core items included in SG&A expenses in fiscal 2015 consisted of $0.2 million of acquisition expense.  Non-core items included in SG&A expenses in fiscal 2014 consisted of $0.4 million of acquisition expense and $1.0 million of costs related to integration expense for the plant acquired from the Labelmakers Wine Division.  

  • Operating income increased 62% to $26.1 million from $16.1 million in the prior year.  Core operating income increased $8.8 million or 51% compared to the prior year primarily due to improved operating performance in North America and South America and recent acquisitions.  Acquisitions occurring after the beginning of fiscal 2014 contributed $5.1 million to the increase.  Non-core items related to acquisition and integration expenses.

  • Interest expense increased $0.6 million or 11% compared to the prior year.  The increase is due primarily to an increase in debt borrowings to finance fiscal 2014 acquisitions.

  • The Company had $466.7 million of debt at June 30, 2014 compared to $400.9 million at June 30, 2013.  

  • The effective tax rate decreased to 34% in fiscal 2015 to date from 37% in the prior year primarily due to the geographical mix of worldwide earnings.  The Company expects its annual effective tax rate to be approximately 35% in fiscal 2015.  

  • Diluted earnings per share (EPS) increased 100% to $0.80 per diluted share from $0.40 in the prior year.  Excluding the impact of the non-core items noted below, core EPS increased 69% to $0.81 per diluted share from $0.48 per diluted share in the prior year.

  • Net income increased to $13.3 million from $6.7 million in the prior year.  Core net income increased to $13.5 million from $7.9 million in the prior year, primarily due to acquisitions occurring after the beginning of fiscal 2014 and gross margin improvements.

The following table shows adjustments made to Net Income and Diluted EPS between reported GAAP and Non-GAAP results for fiscal 2015 and 2014. 

Full Release

 

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