Multi-Color Corp. Reports Fourth Quarter and Fiscal Year 2004 Results
Press release from the issuing company
CINCINNATI, May 6 -- Multi-Color Corporation announced fiscal year 2004 fourth quarter and full year results for the period ending March 31, 2004. The Company generated record revenue of $127 million; a 28% increase over the prior year. Organic revenue growth accounted for over 40% of the top line double-digit increase.
"Excellent volume increases within our Packaging Services division coupled with good growth in our core label business fueled an overall 11% organic growth rate this year," stated Frank Gerace, President and CEO of Multi-Color Corporation. Acquisitions accounted for the remaining growth in revenue.
Reported net income rose during FY 2004 to $6.5 million from $6.3 million in the prior year. Excluding a one-time pre-tax $1.1 million asset impairment loss and plant closure costs, net income increased 14% from 2003.
"The costs associated with the closure of our Las Vegas facility put a damper on what would have been a spectacular year. With this behind us, we can re-focus our attention on driving bottom line earnings growth through aggressive sales performance, cost reductions and operational excellence," continued Gerace.
Details of the fiscal year 2004 include:
- Sales Revenue jumped 28% to a record $127 million.
- Net Income grew 3% to $6.5 million. Excluding a one-time $1.1 million asset impairment loss and plant closure costs, net income increased 14% from 2003.
- Diluted Earnings Per Share (EPS) at $.99 per share equals the previous year. Excluding impairment losses and closure costs, diluted EPS were $1.09, up 10% from a year ago.
- Shareholder Equity increased 30% to $33.0 million.
(Note: The Company announced on December 5, 2003 that it expected to record total charges of $1.2 million in connection with a manufacturing consolidation plan, with $700,000 to be recorded in FY 2004. In fact, total charges amounted to $1.1 million and were fully recorded in FY 2004).
"Customers continue to value our complete line of decorating solutions and packaging services and reward us with more of their business. In fact, we achieved sales growth in all product categories, with in-mold, pressure sensitive, shrink sleeve, heat transfer and packaging services all exceeding industry growth rates," stated Gerace.
Significant Company highlights from FY 2004 also include:
- Purchased the heat transfer label business from Tennessee-based International Playing Card and Label Co. Inc. in July 2003.
- Named Ohio's Best Long-term Investment by the Cleveland Plain Dealer's annual "Plain Dealer 100" report in July 2003.
- Rated the 7th Most Up And Coming Company on Forbes Magazine's 200 Best Small Companies list in October 2003.
- Announced a 3 for 2 stock split in November 2003, effective December 2003.
- Share value appreciation of 77% during the fiscal year.
Multi-Color reported the following results for the fourth quarter of fiscal year 2004:
- Sales Revenue grew 16% to $33.3 million.
- Gross margins at 18.4% continued to be below the same period last year, primarily due to costs related to the final quarter of operating the Las Vegas facility.
- Income taxes were reduced to an annual rate of 37.5% due to tax savings from state tax credits.
- Net Income at $1.6 million included a pre-tax $.9 million charge for plant closure costs. Excluding those costs, net income was up 9% from 2003.
- Diluted EPS at $.24 per share also included the above-mentioned charges. Excluding these charges, diluted EPS rose to $.32, up 7% from a year ago.
"Notwithstanding this past year's challenges, Multi-Color increased earnings for the sixth consecutive year and continued to execute its growth strategy, both organically and through selective acquisitions," Gerace commented. "Looking to the future, we remain confident regarding the long term growth and earnings prospects of the Company," concluded Gerace.
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