CINCINNATI, July 27 -- Multi-Color Corporation today announced financial results for the first quarter ended June 30, 2007, compared with the same period a year ago.
First quarter highlights included:
-- As previously announced on June 18, 2007, the Company entered into an agreement to sell its Packaging Services Division, Quick Pak, to NFI Industries, Inc. for $19.2 million in cash. The sale was completed on July 2, 2007. Accordingly, the operating results of Quick Pak are presented as discontinued operations in the Company's consolidated financial statements for all periods and the Company no longer reports any segment results. The resulting after-tax gain of approximately $7 million from the sale will be reflected in the Company's financial results for the quarter ending September 30, 2007.
-- Net revenues from continuing operations increased 13% to $52.3 million from $46.1 million, entirely due to organic growth.
-- Interest expense was reduced by 81% compared to the prior year and all
outstanding debt was repaid.
-- Net income from continuing operations increased 21% to $2.9 million
from $2.4 million.
-- Earnings Per Share (EPS) from continuing operations increased 17% to 41 cents per diluted share from 35 cents.
-- The Company secured a new $100 million revolving credit facility.
-- The Company was added to the small cap Russell 2000 Index as a result of the growth in its market capitalization.
Frank Gerace, President and CEO of Multi-Color Corporation, attributed the Company's first quarter earnings performance to the continued growth in revenues.
"Our core label business performed very well during the quarter as we generated a 13% organic sales growth rate due to increasing sales with existing customers and gaining new customers. This quarter was a continuation of the trend we have experienced over the last two years in achieving an organic growth rate that is over twice the industry average," Gerace noted.
Net income from continuing operations of $2.9 million increased 21% compared to the prior year. The increase in net income compared to the prior year primarily resulted from the increased sales volume as gross margin was maintained at 19%. In addition, net income was favorably impacted by lower interest expense. As of June 30, 2007, the Company is debt-free.
"We are pleased with our quarterly operating results which demonstrate our commitment to building solid revenue and profit growth. Our value proposition continues to provide us with many new opportunities in the market place and I remain encouraged by our continued sales growth. In addition, our associates have done a superb job managing our assets, thereby generating excellent cash flow, which has enabled us to repay all of our debt. We are well positioned to continue our growth through investments in new technologies and selective acquisitions," Gerace concluded.
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