Multi-Color Corporation Announces Third Quarter Revenue Jump of 27%
Press release from the issuing company
CINCINNATI, Jan. 16 -- Multi-Color Corporation announced its fiscal year 2004 third quarter results for the period ending December 31, 2003. Third quarter FY2004 highlights include:
Sales Revenue increased 27% from last year's 3rd quarter to $33 million.
Operating Income grew 9% to $3.1 million.
Net Income rose by 9% to $1.6 million, which included after-tax charges of $143,000 in connection with the shut-down of the Las Vegas operation.
Earnings Per Share advanced to $.24 per share, up $.01 or 4% from last year.
On December 5, 2003 the Company announced a manufacturing consolidation plan, which resulted in an asset impairment charge for certain assets that will not be moved to other locations. This charge and other related closure expenses incurred during the quarter of $143,000 reduced EPS by $.02. Without the charge, EPS would have been $.26 per share, an increase of 13% over the prior year.
"A variety of factors impacted our 3rd quarter results both positively and negatively. We experienced improved operating performance at our manufacturing locations as compared to a year ago and improved operating performance at our Las Vegas facility from the previous quarter. In spite of these improvements, we took a $143,000 charge to earnings as a result of the manufacturing consolidation plan announced during the quarter and finally, we experienced a shortfall in sales during the last two weeks of December from several large customers," said Multi-Color President and Chief Executive Officer, Frank Gerace.
Approximately 73% of the revenue growth for the quarter was due to the Company's recent acquisitions of heat transfer label technologies. The remaining growth was due to organic growth in both the Packaging Services Division -- Quick Pak - and in its core label business.
For the nine-month period ending December 31, 2003, Multi-Color reported the following results:
Sales Revenue increased to $94 million, up 32% from the same period last year.
Operating Income increased to $9.4 million, up 13%.
Net Income increased to $4.9 million, up 12%.
Earnings Per Share rose to $.75 per share, up 10%.
"Due to the closing of the Las Vegas facility and the related closing costs, we expect earnings for FY2004 ending March 31, 2004 to be flat with last year, however I remain optimistic regarding the long-term growth and earnings prospects of the Company," concluded Gerace.
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