Multi-Color Corporation Announces Revenue of $28 Million in Q1
Press release from the issuing company
CINCINNATI, July 22 -- Multi-Color Corporation announced financial results for the first quarter of FY2005 ended June 30, 2004. Those results included:
Net sales were $28.8 million, slightly below $29.1 million for the first quarter of FY2005.
Net income was $1.1 million, or $0.17 per diluted share. This is higher than the guidance provided June 28, 2004, of $0.13 to $0.16 per share and down from the $1.6 million, or $0.25 per diluted share in the year-earlier period. (Per share amounts reflect the Company's 3-for-2 stock split effective November 30, 2003.)
The Company's Packaging Services Segment, which represents approximately 15% of consolidated sales, posted strong revenue gains of 33% as compared to the first quarter of FY2004. The Decorating Solutions Segment, representing 85% of the Company's sales had revenues 5% below last year for the quarter principally because of a delay in orders from a major customer. These lower revenues and operating inefficiencies at the Company's Scottsburg, Ind. facility that developed after the consolidation of the Las Vegas shrink-sleeve operations resulted in lower earnings for the quarter compared to a year ago.
"Our first quarter presented us with several challenges, but ended on a positive note as we exceeded our previously issued earnings outlook for the quarter," said Frank Gerace, President and CEO of Multi-Color Corporation. "We are overcoming the difficulties at our Scottsburg facility that we previously discussed in a release on June 28, 2004. We also encountered a postponement of orders from a major customer of approximately $1.2 million and expenses for compliance with Sarbanes-Oxley requirements of approximately $200,000 during the quarter. However, as the quarter progressed, we were able to make improvements aimed at optimal efficiency and productivity at our Scottsburg facility."
Gerace emphasized that Multi-Color met or exceeded customer commitments during the first quarter of FY2005, and that the Company will be able to deliver even greater value to its customers when process improvements at Scottsburg are completed. Multi-Color continues to apply the principles of the Company's lean manufacturing initiative, V2, throughout the Company to deliver long-term benefits by reducing waste and increasing productivity.
"Looking ahead, installation of a new gravure printing press at Scottsburg will be completed during the second quarter. The new press will give us greater flexibility and new opportunities for growth. Sales orders in our Decorating Solutions Division have improved 15% in recent weeks over the prior quarter and we expect to return to more normal sales growth rates if this trend continues," Gerace added.
The Company's growth strategy continues to include acquisitions in both business segments. To that end, the Company is aggressively pursuing several acquisitions and expects to complete one or more acquisitions by the end of the fiscal year.
Multi-Color continued to receive recognition during the quarter for its recent strong growth and profitability. The Company was named one of the Top 100 Fastest Growing Small Companies by Business Week, and won similar recognition from Fortune Small Business magazine in their 4th Annual FSB 100 list of America's fastest growing small companies.
"We have faced the first-quarter challenges head-on, and are optimistic regarding the long-term prospects of the Company. Our goal at Multi-Color continues to be to drive growth and achieve even stronger margins in the periods ahead as we capture cost savings by becoming even more efficient," Gerace concluded.
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