BATAVIA, Ohio, Jan. 29 /PRNewswire-FirstCall/ -- Multi-Color
Corporation (NASDAQ:LABL) today announced financial results for the
third quarter ended December 31, 2009. Third quarter highlights as
compared to the prior year included: -- Diluted EPS from continuing
operations increased 38% to 18 cents per diluted share from 13
cents. Excluding the impacts of the charges noted below, adjusted
diluted EPS from continuing operations increased 86% to 26 cents
per diluted share from 14 cents. -- Net revenues increased 5% to
$66.0 million from $62.6 million, as a 9% favorable foreign
exchange impact was offset by a 4% organic sales decline.
Approximately one-half of the organic sales decline was due to
pricing while the remaining one-half was due to lower sales volume
and mix. -- Gross profit increased by $1.1 million or 11% to $11.4
million and gross margins increased to 17% from 16% primarily due
to favorable foreign exchange. -- The Company recorded facility
closure expenses of $1.2 million ($959,000 after-tax) in connection
with the relocation of its corporate headquarters which reduced
diluted earnings per share (EPS) by 8 cents. In the prior year
quarter, the Company incurred $192,000 ($112,000 after-tax) of
acquisition related expenses which reduced diluted EPS by 1 cent.
-- Operating income declined 12% to $3.8 million from $4.3 million
primarily due to the facility closure expenses. Excluding the
impact of the charges noted above, adjusted operating income
increased 11% to $5.0 million from $4.5 million. -- Interest
expense decreased 26% to $1.2 million due to a $4.5 million
reduction in bank debt and a 57 basis point reduction in interest
rates. -- The Company's effective tax rate decreased to 21% due to
a more efficient tax structure and income in lower tax
jurisdictions. The Company expects its annual effective tax rate to
be approximately 28% for fiscal year 2010. -- Net income from
continuing operations increased 37% to $2.2 million from $1.6
million. Excluding the impacts of the charges noted above, adjusted
net income from continuing operations increased 84% to $3.2 million
from $1.7 million. "We continued to experience fluctuations in
demand in a very competitive marketplace and challenging economy. I
am pleased with our ability to increase earnings as a result of
cost reduction actions and our continued emphasis on repaying debt.
This demonstrates the ongoing focus and hard work of our associates
who continue to excel in a difficult environment," said Frank
Gerace, President and CEO of Multi-Color Corporation. For the nine
month period ended December 31, 2009, Multi-Color's net revenues of
$207.6 million decreased 7% compared to the prior year. The
decrease in revenues was due to a 5% decline in sales volume, a 1%
unfavorable pricing impact and a 1% unfavorable foreign exchange
impact. Income from continuing operations increased 12% to $9.6
million, while EPS from continuing operations increased to 78 cents
per diluted share from 69 cents. -- Financial results for the nine
month periods ended December 31, 2009 and 2008 included the
following charges: -- During the quarter ended December 31, 2009,
the Company recorded a $1.2 million charge ($959,000 after-tax) in
connection with the relocation of its corporate headquarters which
reduced diluted EPS by 8 cents. -- During the quarter ended June
30, 2009, the Company incurred $359,000 ($256,000 after-tax) in
severance and plant closure costs which reduced diluted EPS by 2
cents. -- During the quarter ended December 31, 2008, the Company
incurred $192,000 ($112,000 after-tax) of acquisition related
expenses which reduced diluted EPS by 1 cent. -- During the quarter
ended September 30, 2008, the Company incurred $517,000 ($346,000
after-tax) in severance and termination costs which reduced diluted
EPS by 3 cents. -- During the quarter ended June 30, 2008, the
Company recorded an asset impairment charge of $226,000 ($144,000
after-tax) which reduced diluted EPS by 1 cent. -- Excluding the
impacts of these charges from the 2009 and 2008 nine month periods,
adjusted EPS from continuing operations increased to 88 cents per
diluted share from 74 cents per diluted share. -- During the nine
month period, the Company repaid $14.5 million or 14% of long term
debt. The following table summarizes the impact of special items on
diluted EPS: Three Months Ended Nine Months Ended 12/31/09 12/31/08
12/31/09 12/31/08 -------- -------- -------- -------- Diluted EPS
from Continuing Operations, as reported $0.18 $0.13 $0.78 $0.69
Impact of Special Items 0.08 0.01 0.10 0.05 Adjusted EPS from
Continuing Operations $0.26 $0.14 $0.88 $0.74 Fiscal Year 2010
Third Quarter Earnings Conference Call and Webcast The Company will
hold a conference call on January 29, 2010 at 11:00 a.m. (ET) to
discuss the news release. For domestic access to the conference
call, please dial 1-888-680-0878 (code 65338227) or for
international access please call 1-617-213-4855 (code 65338227) by
10:45 a.m. (ET). A replay of the conference call will be available
at 2:00 p.m. (ET) on January 29, 2010 until midnight (ET) on
February 5, 2010, by calling 1-888-286-8010 (code 76862492) if
domestic or for international access please call 1-617-801-6888
(code 76862492). 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=PUM8AMBMJ
(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/) Batavia, 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 Nine Months Ended December December
December December 31, 2009 31, 2008 31, 2009 31, 2008 ---------
-------- --------- -------- Revenues $65,981 $62,644 $207,602
$222,731 Cost of Goods Sold 54,622 52,369 170,467 182,799 ------
------ ------- ------- Gross Profit 11,359 10,275 37,135 39,932
Gross Margin 17% 16% 18% 18% Selling, General & Administrative
6,321 5,930 19,037 21,335 Facility Closure Expense 1,214 - 1,475 -
----- --- ----- --- Operating Income 3,824 4,345 16,623 18,597
Other (Income) Expense (107) 22 (287) (356) Interest Expense 1,152
1,557 3,638 5,551 ----- ----- ----- ----- Income from Continuing
Operations before Taxes 2,779 2,766 13,272 13,402 Provision for
Taxes 580 1,160 3,656 4,819 --- ----- ----- ----- Income from
Continuing Operations 2,199 1,606 9,616 8,583 Income (Loss) from
Discontinued Operations, Net of Taxes - - - (170) --- --- --- ----
Net Income $2,199 $1,606 $9,616 $8,413 ====== ====== ====== ======
Basic Earnings Per Share: Income from Continuing Operations $0.18
$0.13 $0.79 $0.71 Income (Loss) from Discontinued Operations $- $-
$- $(0.01) --- --- --- ------ Basic Earnings Per Share $0.18 $0.13
$0.79 $0.70 ===== ===== ===== ===== Diluted Earnings Per Share:
Income from Continuing Operations $0.18 $0.13 $0.78 $0.69 Income
(Loss) from Discontinued Operations $- $- $- $(0.01) --- --- ---
------ Diluted Earnings Per Share $0.18 $0.13 $0.78 $0.68 =====
===== ===== ===== Basic Shares Outstanding 12,215 12,195 12,206
12,146 Diluted Shares Outstanding 12,324 12,344 12,327 12,498
Selected Balance Sheet Information (in 000's) Unaudited Dec. 31,
2009 March 31, 2009 ------------- -------------- Current Assets
$61,355 $56,052 Total Assets $283,817 $258,208 Current Liabilities
$44,726 $42,521 Total Liabilities $144,003 $155,176 Stockholders'
Equity $139,814 $103,032 Total Debt $87,851 $102,319 Certain prior
year amounts have been reclassified to conform to current year
reporting. DATASOURCE: Multi-Color Corporation CONTACT: Dawn H.
Bertsche, Senior Vice President-Finance and Chief Financial
Officer, Multi-Color Corporation, +1-513-345-1108 Web Site:
http://www.multicolorcorp.com/
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