Multi-Color Corporation Reports Q1 Sales Increase of 63%
Press release from the issuing company
CINCINNATI, July 22 -- Multi-Color Corporation today announced financial results for its first quarter ended June 30, 2005, compared with the same period a year ago.
First quarter highlights included:
* Net Sales increased 63% to $46.7 million from $28.8 million.
* Net Income increased 71% to $1.9 million from $1.1 million.
* Earnings Per Share (EPS) were also up 71% to 29 cents per diluted share, from 17 cents.
Frank Gerace, President and CEO of Multi-Color Corporation, attributed the Company's first quarter earnings performance to increased sales in the Decorating Solutions Division. The first quarter sales increase included $15.2 million generated from the NorthStar Print Group acquisition and $3.4 million generated from organic growth. Sales in the Packaging Services Division were down 13% for the quarter.
"Our Decorating Solutions Division generated a 14% organic sales growth rate as we gained new customers and increased sales with existing customers. However, our Packaging Services Division experienced a sales shortfall due to a decrease in summer promotional programs and a shift to less complex products," Gerace noted.
Operating income of $3.7 million increased 85% compared to the prior year. Improvements in operating income compared to the prior year resulted from the sales increase and improved operating efficiencies in the Decorating Solutions Division.
"We continue to be pleased with the results of our newly acquired facilities in Wisconsin and Michigan and our organic sales growth rate in the label segment. However, we have experienced temporary sales and profit issues in the Packaging Services Division that appear to be behind us; as we now have the largest backlog in our history. We expect results in this segment to compare more favorably in the second and third quarters," Gerace concluded.
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