|View printer-friendly version|
Multi-Color Corporation Announces Results for Third Quarter of Fiscal 2009
Third quarter highlights as compared to the prior year included:
- Net revenues increased 30% to
$62.6 millionfrom $48.3 million. The increase in revenues was due to the Collotype acquisition completed in February 2008, which generated $21.9 millionin revenues for the quarter, partially offset by a $7.5 millionor 16% reduction in North American organic revenues.
- Gross profit increased 20% to
$10.3 milliondue to the Collotype acquisition, partially offset by a reduction in gross profit due to the shortfall in North American organic revenues.
- Selling, general and administrative (S,G&A) expenses increased
$1.2 milliondue to comparable expenses from the Collotype acquisition. As a percent of sales, S,G&A expenses were reduced by 40 basis points due to cost reduction actions.
- Operating income increased 15% to
$4.3 millionfrom $3.8 million.
- Interest expense increased
$1.5 milliondue to increased debt incurred to finance the Collotype acquisition. During the quarter, the Company repaid $5.9 millionor 5% of long term debt.
- Net income from continuing operations decreased to
$1.6 millionfrom $2.0 million.
- Diluted Earnings Per Share (EPS) from continuing operations decreased
13 centsper diluted share from 19 cents.
- Financial results for the 2008 and 2007 quarterly and year-to-date periods included special items as described below:
- During the quarter ended
December 31, 2008, the Company incurred $192,000( $112,000after-tax) of acquisition related expenses which reduced diluted EPS by 1 cent.
- During the quarter ended
December 31, 2007, the Company recorded a non-cash charge of $957,000( $642,000after-tax) in Other Expenses to reflect the change in fair value of foreign currency forward contracts associated with the Collotype acquisition. In addition, the Company incurred approximately $292,000( $196,000after-tax) of expenses related to its manufacturing expansion plan. Combined, these items reduced diluted EPS by 8 cents.
- Excluding the impacts of the special items from 2008 and 2007, Adjusted
EPS from Continuing Operations decreased to
14 centsper diluted share from 27 centsas shown below:
Three Months Ended 12/31/08 12/31/07 Diluted EPS from Continuing Operations, as reported $0.13 $0.19 Impact of Special Items 0.01 0.08 Adjusted EPS from Continuing Operations $0.14 $0.27
For the nine month period ended
- Financial results for the nine month period ended
December 31, 2008also included special items from the quarterly periods ended June 30, 2008and September 30, 2008as follows:
- During the quarter ended
June 30, 2008, the Company recorded an asset impairment charge of $226,000( $144,000after-tax) which reduced diluted EPS by 1 cent.
- During the quarter ended
September 30, 2008, the Company incurred $517,000( $346,000after-tax) in severance and termination costs which reduced diluted EPS by 3 cents.
- Excluding the impacts of the special items from the 2008 and 2007 nine
month periods, Adjusted EPS from Continuing Operations decreased to
74 centsper diluted share from 83 centsas shown below:
Nine Months Ended 12/31/08 12/31/07 Diluted EPS from Continuing Operations, as reported $0.69 $0.75 Impact of Special Items 0.05 0.08 Adjusted EPS from Continuing Operations $0.74 $0.83
- During the nine month period, the Company repaid
$19.2 millionor 15% of long term debt.
"As a result of unprecedented worldwide economic conditions, it has become increasingly difficult to predict our customers' demand. Accordingly, we will continue to focus on the elements that are within our control. We expect to emerge from the current cycle with a lower cost structure, broader customer base, improved asset utilization and stronger company," Gerace concluded.
Fiscal Year 2009 Third Quarter Earnings Conference Call and Webcast
The Company will hold a conference call on
Participants may pre-register for the call at https://www.theconferencingservice.com/prereg/key.process?key=PJWCRRF7L (Due to its length, this URL may need to be copied/pasted into your Internet browser's address field. Remove the extra space if one exists.) Pre-registrants will be issued a pin number to use when dialing into the live call which will provide quick access to the conference by bypassing the operator upon connection.
Safe Harbor Statement
The Company believes certain statements contained in this report that are not historical facts constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, and are intended to be covered by the safe harbors created by that Act. Reliance should not be placed on forward-looking statements because they involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements to differ materially from those expressed or implied. Any forward-looking statement speaks only as of the date made. The Company undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date on which they are made.
Statements concerning expected financial performance, on-going business strategies, and possible future actions which the Company intends to pursue in order to achieve strategic objectives constitute forward-looking information. Implementation of these strategies and the achievement of such financial performance are each subject to numerous conditions, uncertainties and risk factors. Factors which could cause actual performance by the Company to differ materially from these forward-looking statements include, without limitation, factors discussed in conjunction with a forward-looking statement; changes in general economic and business conditions; the ability to consummate and successfully integrate acquisitions; ability to manage foreign operations; the success and financial condition of the Company's significant customers; competition; acceptance of new product offerings; changes in business strategy or plans; quality of management; the Company's ability to maintain an effective system of internal control; availability, terms and development of capital; cost and price changes; raw material cost pressures; availability of raw materials; ability to pass raw material cost increases to it's customers; business abilities and judgment of personnel; changes in, or the failure to comply with, government regulations, legal proceedings and developments; risk associated with significant leverage; increases in general interest rate levels affecting the Company's interest costs; and terrorism and political unrest. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
About Multi-Color ( http://www.multicolorcorp.com )
For additional information on Multi-Color, please visit http://www.multicolorcorp.com.
Multi-Color Corporation Condensed Consolidated Statements of Income (in 000's except per share data) Unaudited Three Months Ended Nine Months Ended December December December December 31, 2008 31, 2007 31, 2008 31, 2007 Revenues $62,644 $48,267 $222,731 $152,604 Cost of Goods Sold 52,369 39,731 182,799 124,729 Gross Profit 10,275 8,536 39,932 27,875 Gross Margin 16% 18% 18% 18% Selling, General & Administrative 5,930 4,764 21,335 15,040 Operating Income 4,345 3,772 18,597 12,835 Other (Income) Expense 22 778 (356) 392 Interest Expense 1,557 54 5,551 177 Income from Continuing Operations before Taxes 2,766 2,940 13,402 12,266 Provision for Taxes 1,160 968 4,819 4,483 Income from Continuing Operations 1,606 1,972 8,583 7,783 Income (Loss) from Discontinued Operations, Net of Taxes - 152 (170) 7,022 Net Income $ 1,606 $ 2,124 $8,413 $ 14,805 Basic Earnings Per Share: Income from Continuing Operations $0.13 $0.19 $ 0.71 $0.78 Income (Loss) from Discontinued Operations $- $0.02 $(0.01) $0.70 Basic Earnings Per Share $0.13 $0.21 $ 0.70 $1.48 Diluted Earnings Per Share: Income from Continuing Operations $0.13 $0.19 $ 0.69 $0.75 Income (Loss) from Discontinued Operations $- $0.02 $(0.01) $0.68 Diluted Earnings Per Share $0.13 $0.21 $ 0.68 $1.43 Basic Shares Outstanding 12,195 10,065 12,146 10,025 Diluted Shares Outstanding 12,344 10,349 12,498 10,345 All share and per share amounts have been adjusted to reflect the 3-for-2 stock split effective
September 17, 2007. Selected Balance Sheet Information (in 000's) Unaudited Dec. 31, 2008 March 31, 2008 Current Assets $52,298 $72,228 Total Assets $262,757 $314,080 Current Liabilities $42,678 $53,711 Total Liabilities $160,206 $194,142 Stockholders' Equity $102,551 $119,938 Total Debt $108,591 $131,751 The operating results of Quick Pak are presented as discontinued operations in the Company's consolidated financial results for all periods presented. Certain prior year amounts have been reclassified to conform to current year reporting.
Senior Vice President-Finance and Chief Financial Officer,
Web site: http://www.multicolorcorp.com