CINCINNATI, OHIO, August 9, 2013 - Multi-Color Corporation announces net revenues increased 1% to $166.8 million from $165.0 million in the prior year. First quarter core earnings per share decreased 13% to $0.48 per diluted share from $0.55 in the prior year quarter. Diluted net earnings per share decreased to $0.40 from $0.49 in the prior year. Non-core items (consisting of integration expenses, acquisition expenses, plant consolidation expenses, purchase accounting charges, and currency losses related to repatriation of foreign currency) increased to $0.08 per share from $0.06 per share in the prior year.
Nigel Vinecombe, President and CEO of Multi-Color Corporation, said, "Core EPS at $0.48 for the quarter was impacted by lower gross margins primarily due to unusually high expenses associated with multiple equipment transfers and installations designed for better future utilization. In addition, organic sales growth was weaker for the quarter than prior quarters. We do not expect these factors to continue at these levels.
We expect recent acquisitions in Mexico, Australia and France to contribute to core EPS from the third quarter of this fiscal year."
Fiscal 2014 highlights:
Gross profit decreased $0.5 million or 2% compared to the prior year. Core gross profit, excluding the impact of inventory purchase accounting charges in fiscal 2013, decreased 3% or $0.9 million. Core gross margins decreased to 18% of sales revenues compared to 19% in the prior year, primarily due to unusually high costs related to press transfers and installations and charges for inventory write-offs.
Selling, general and administrative (SG&A) expenses increased $0.7 million or 5% compared to the prior year due primarily to integration expenses related to acquisitions made after June 30, 2012. Core SG&A, as a percent of sales, was 8% for both the current and prior periods.
Operating income decreased $1.2 million or 7% compared to the prior year, primarily due to changes in sales mix and costs related to acquisitions and integration. Core operating income decreased 6.5% to $17.5 million from $18.7 million in the prior year. Non-core items relate to acquisition and integration expenses.
- Net income decreased to $6.7 million from $7.9 million in the prior year. Core net income decreased to $7.9 million from $8.9 million in the prior year.