| Multi-Color Corporation Announces Results for Second Quarter of Fiscal 2010
SHARONVILLE, Ohio, Nov. 2 /PRNewswire-FirstCall/ -- Multi-Color
Corporation (Nasdaq: LABL) announced diluted earnings per share of 28 cents
for its second quarter ended September 30, 2009, down 15% from the prior
year.
Second quarter highlights included:
-- Net revenues decreased 11% to $72.0 million from $80.6 million. The
decrease in revenues was due to an 8% decline in sales volume, a 2%
unfavorable pricing impact and a 1% unfavorable foreign exchange impact.
The majority of the sales volume decline was due to market share
declines experienced by our customers' brands.
-- Gross profit decreased 13% to $12.8 million from $14.7 million primarily
due to the decline in revenues. However, gross margins were maintained
at 18% of revenues due to improved operating efficiencies and fixed cost
reductions.
-- Selling, general and administrative expenses decreased 4% to $6.7
million from $7.0 million and were held to 9% of revenues in both
periods.
-- Operating income decreased 21% to $6.1 million from $7.7 million due to
the decline in revenues.
-- Interest expense decreased 32% to $1.3 from $1.9 million due to a
reduction in bank debt of $5.3 million and lower interest rates.
-- Net income from continuing operations decreased 17% to $3.4 million from
$4.1 million.
-- Earnings Per Share (EPS) from continuing operations decreased 15% to 28
cents per diluted share from 33 cents.
-- The Company was recognized on the Forbes Listing of America's 200 Best
Small Companies for the third consecutive year.
"Despite the challenging environment, we generated a significant
increase in cash flow during the first half of the year which has allowed
us to reduce outstanding debt by approximately $10 million. We continue to
focus on cost reduction actions and improving operating efficiencies to
mitigate the impacts of lower revenues. Our view for the balance of the
fiscal year remains cautious as we continue to experience a weak revenue
growth environment," said Frank Gerace, President and CEO of Multi-Color
Corporation.
For the six month period ended September 30, 2009, Multi-Color's net
revenues decreased 12% to $141.6 million from $160.1 million due to an 8%
decline in sales volume, a 3% unfavorable foreign exchange impact and a 1%
unfavorable pricing impact. Net income from continuing operations increased
6% to $ 7.4 million and EPS from continuing operations was 60 cents per
diluted share for the six months ended September 30, 2009.
In addition, the Company will relocate its Corporate Headquarters from
Sharonville, Ohio to its Batavia, Ohio facility during the third quarter
ending December 31, 2009. In connection with the relocation, the Company
will record an estimated charge of approximately $1.1 million to $1.5
million for remaining lease obligations related to its Sharonville
facility.
Fiscal Year 2010 Second Quarter Earnings Conference Call and Webcast
The Company will hold a conference call on November 2, 2009 at 11:00
a.m. (ET) to discuss the news release. For domestic access to the
conference call, please dial 1-888-713-4215 (code 19267937) or for
international access please call 1-617-213-4867 (code 19267937) by 10:45
a.m. (ET). A replay of the conference call will be available at 2:00 p.m.
(ET) on November 2, 2009 until midnight (ET) on November 9, 2009, by
calling 1-888-286-8010 (code 24249483) if domestic or for international
access please call 1-617-801-6888 (code 24249483). In addition, the call
will be broadcast over the Internet and can be accessed from a link on the
Company's home page at http://www.multicolorcorp.com. Listeners should go to the
web site prior to the call to register and to download any necessary audio
software.
Participants may pre-register for the call at
https://www.theconferencingservice.com/prereg/key.process?key=PPEGH44U6
(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; currency exchange rate
fluctuations; 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 and credit; cost and price changes; raw
material cost pressures; availability of raw materials; ability to pass raw
material cost increases to its 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; ability to manage global political
uncertainty; 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)
Sharonville, Ohio based Multi-Color Corporation, established in 1916,
is a leader in global label solutions supporting the world's most prominent
brands including leading producers of home and personal care, wine and
spirits, food and beverage and specialty consumer products. Multi-Color
acquired Collotype International Holdings Pty. Ltd. on February 29, 2008.
Collotype was established in 1903 in Adelaide, South Australia and is the
world's leading and most awarded pressure sensitive wine & spirits label
printer. Multi-Color is the world's largest producer of in-mold labels and
one of the largest producers of pressure sensitive and heat transfer labels
and a major manufacturer of high-quality wet glue applied labels and shrink
sleeves. Multi-Color has 13 manufacturing locations worldwide; 7 in the
U.S., 5 in Australia and 1 in South Africa.
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 Six Months Ended
September September September September
30, 2009 30, 2008 30, 2009 30, 2008
--------- --------- --------- ---------
Revenues $71,963 $80,637 $141,621 $160,087
Cost of Goods
Sold 59,142 65,950 115,845 130,430
------ ------ ------- -------
Gross Profit 12,821 14,687 25,776 29,657
Gross Margin 18% 18% 18% 19%
Selling,
General &
Administrative 6,697 6,952 12,977 15,405
----- ----- ------ ------
Operating
Income 6,124 7,735 12,799 14,252
Other (Income)
Expense (44) (293) (180) (378)
Interest
Expense 1,257 1,855 2,486 3,994
----- ----- ----- -----
Income from
Continuing
Operations
before Tax 4,911 6,173 10,493 10,636
Provision for
Taxes 1,479 2,033 3,076 3,659
----- ----- ----- -----
Income from
Continuing
Operations 3,432 4,140 7,417 6,977
Income (Loss)
from
Discontinued
Operations,
Net of Taxes - (27) - (170)
--- --- --- ----
Net Income $3,432 $4,113 $7,417 $6,807
====== ====== ====== ======
Basic Earnings
Per Share:
Income from
Continuing
Operations $0.28 $0.34 $0.61 $0.57
Income (Loss)
from
Discontinued
Operations $- $- $- $(0.01)
-- -- -- ------
Basic Earnings
Per Share $0.28 $0.34 $0.61 $0.56
===== ===== ===== =====
Diluted
Earnings Per
Share:
Income from
Continuing
Operations $0.28 $0.33 $0.60 $0.56
Income (Loss)
from
Discontinued
Operations $- $- $- $(0.01)
-- -- -- ------
Diluted
Earnings Per
Share $0.28 $0.33 $0.60 $0.55
===== ===== ===== =====
Basic Shares
Outstanding 12,202 12,133 12,201 12,122
Diluted Shares
Outstanding 12,359 12,444 12,328 12,399
Selected Balance Sheet
Information
(in 000's) Unaudited
September 30, March 31,
2009 2009
------------- ---------
Current Assets $59,617 $56,052
Total Assets $282,526 $258,208
Current Liabilities $44,409 $42,521
Total Liabilities $147,262 $155,176
Stockholders' Equity $135,264 $103,032
Total Debt $92,354 $102,319
Certain prior year amounts have been reclassified to conform to current
year reporting.
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