Multi-Color Corporation Reports Record Fiscal Year 2007 Results
Press release from the issuing company
CINCINNATI, May 11 -- Multi-Color Corporation today announced fourth quarter and full year results for the year ended March 31, 2007.
The Company generated record revenue and earnings during fiscal 2007. Revenue increased to $222.4 million or 8% compared to the prior year. Net income rose 15% to $11.0 million or $1.62 per diluted share, from $9.6 million or $1.43 per diluted share in fiscal 2006. As previously announced, the 2007 results included a $3.0 million ($1.9 million, after-tax) charge for expenses related to two potential acquisitions that were terminated during the third quarter of fiscal 2007 which reduced earnings per share (EPS) by 28 cents. Excluding the impact of the acquisition expenses, Adjusted Net Income increased 34% to $12.9 million and Adjusted EPS were up 33% to $1.90 per diluted share.
Frank Gerace, President and CEO of Multi-Color Corporation commented, "We delivered outstanding operating results in both of our segments this year. Despite the impact of the acquisition expenses recorded during the third quarter, we concluded the year with record revenues and earnings. I am very pleased with the significant productivity improvements realized in our Packaging Services Segment and the organic sales growth in our core label business."
Fiscal 2007 Highlights
-- Decorating Solutions segment sales grew 9% organically due to strong
demand from consumer product customers.
-- Gross margin in the Packaging Services segment increased to 13% from
5%, an improvement of $2.4 million, due to operational efficiencies.
-- Interest expense was reduced by 39% over the prior year, due to
-- Cash generated from operating activities of $25.2 million was used to
reduce outstanding debt by $22.7 million or 81%.
-- The Company incurred non-cash compensation expenses of $818,000
($531,000 after-tax) in fiscal 2007 resulting from the adoption of
SFAS 123R, "Accounting for Stock Based Compensation." This expense
reduced EPS by 8 cents compared to the prior year.
-- The receipt of numerous industry awards for technical excellence and
-- Nine awards in the 29th Annual Awards Competition sponsored by the
Tag and Label Manufacturers Institute (TLMI)
-- Three honors in the Packaging & Label Association Print Awards
-- Two awards from the Gravure Association of America (GAA) Awards
-- Recognized by Fortune Magazine as one of the 100 Best Small
"Our value proposition continues to provide us with many new opportunities in the market place and our performance demonstrates another year of delivering record results for our shareholders. Although we experienced two terminated acquisitions during the year, we will continue to pursue those opportunities that meet our growth strategies and are in the best interests of our shareholders," Gerace noted.
Fourth Quarter Results
Multi-Color reported record results for the fourth quarter of fiscal year 2007:
-- Revenue increased 10% to $58.4 million from $53.3 million in the prior
-- Gross profit increased 15% or $1.5 million due to organic sales
increases and improved productivity in the Packaging Services segment.
-- Interest expense was reduced by 66% over the prior year quarter.
-- The Company's effective tax rate was favorably impacted by tax credits
and reduced state tax expense.
-- The Company incurred non-cash compensation expenses of $218,000
($151,000 after-tax) for the quarter resulting from the adoption of
SFAS 123R. This expense reduced EPS by 2 cents compared to the prior
-- Net income rose 31% to $3.9 million or $.57 per diluted share, from
$3.0 million or $.44 per diluted share in the fourth quarter of fiscal
"I am very proud of achieving our ninth consecutive year of record revenues and our sixth consecutive year of record net income and earnings per share. This could not have happened without the exceptional performance of our dedicated associates and I am confident that we are positioned to continue achieving our goals of superior growth and profitability," concluded Gerace.
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