CINCINNATI, Oct. 16 -- Multi-Color Corporation announced financial results for fiscal 2004 second quarter ending September 30, 2003. Second quarter FY2004 highlights included:
- Net Sales increased to a record $31.6 million, up 31% from last year's second quarter.
- Net Income of $1.7 million was up 4% from the same period a year ago.
- Earnings Per Share (EPS) were $.38 per diluted share, equal to the prior year quarter.
Eighty percent of the increase in sales is attributed to revenues generated from the January 2003 acquisition of Dec Tech. The remainder is a result of internal growth.
Strong seasonal sales activity in the Company's Packaging Services division, Quick Pak, positively impacted second quarter revenue. Sales in the Decorating Solutions division were similar to the first quarter, with excellent growth from core customers and improved activity with new customers.
The positive impact of the strong revenue increase was not fully realized due to continued below standard operating performance at the Company's Las Vegas label manufacturing plant. As a result, operating income increased 3% over the previous year.
Frank Gerace, President and CEO of Multi-Color Corporation stated, "Improved operating performance at most of our facilities was offset by poor operating performance at our Las Vegas plant. We didn't begin to see operational improvement at Las Vegas until mid-September; therefore most of the quarter was negatively impacted."
An increase in income tax expense for the quarter in order to adjust the Company's effective tax rate reduced earnings per diluted share by 2 cents per share. The effective tax rate increase was a result of re-apportionment of state income.
For the six month period ending September 30, 2003, Multi-Color Corporation reported the following:
- Net Sales increased 35% to $60.7 million.
- Net Income increased 14% to $3.3 million.
- EPS increased 10% to $.75 per diluted share.
During the quarter, the Company completed a 90,000 sq. ft. addition to its Quick Pak - Packaging Services plant, which became operational in August. In addition, the Company's Decorating Solutions division successfully renewed long-term supply agreements with several of its major customers.
"I am encouraged by the growth we are seeing in our Packaging Services division and with our core Decorating Solutions customers. We have learned a lot from the operational difficulties that have been experienced in Las Vegas. I am confident that our organization will leverage these learnings in the future as we face the challenges that confront a growth company," said Gerace.
The impact of the Company's continuous growth is highlighted in Forbes Magazine's 200 Best Small Companies list, released this month. Multi-Color was rated the 7th Most Up and Coming Company, with "its in-mold and heat transfer labels appearing on 330 of the world's most popular brands."
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