CINCINNATI, OHIO - Multi-Color Corporation (NASDAQ: LABL) today announced second quarter fiscal 2014 results.
"Core EPS was up 24% from 49 cents to 61 cents for the second fiscal quarter ending September 2013 compared to the same quarter last year. Core EPS improved despite weak organic growth in the quarter, primarily due to softness in Europe and Latin America in July and August, which recovered in September. We expect organic growth, operational performance in key plants and new acquisition benefits to contribute to further year over year Core EPS improvement in the December quarter," said Nigel Vinecombe, President and CEO of Multi-Color Corporation.
Second quarter highlights:
Net revenues increased 4% to $176.6 million from $169.9 million compared to the prior year quarter. Net revenues increased 4% or $7.5 million due to acquisitions occurring during fiscal 2014 and 2% due to higher North American sales volumes, offset by a 1% decrease due to pricing sales/mix and a 1% decrease due to the unfavorable impact of foreign exchange rates primarily driven by depreciation in the Australian dollar.
Selling, general and administrative (SG&A) expenses were $13.4 million in both the current and prior year quarters. Core SG&A expenses increased by 4% compared to the prior year quarter, but, as a percent of sales, were flat at 7.4% in both the current and prior year quarters. Non-core items included in SG&A expenses in the three months ended September 30, 2013 consisted of $0.3 million of acquisition expense related to 2014 acquisitions and $0.1 million related to integration expenses for the Labelmakers Wine Division acquired during the first fiscal quarter of 2014. Non-core items in the three months ended September 30, 2012 consisted of $0.5 million of costs related to the consolidation of plants and $0.5 million of integration expenses related to the York Label Group acquisition.
Operating income increased $3.1 million or 18% compared to the prior year quarter. Core operating income increased 14% to $20.5 million from $17.9 million. Non-core items relate to acquisition, integration and plant consolidation expenses in the current and prior year quarters. The increase in operating profit was due primarily to higher profit margins in the current year quarter resulting from improved operating efficiencies.
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