Business News
Multi-Color Corporation Announces Results for Fiscal Year 2008
Friday 16. May 2008 - Multi-Color Corporation (NASDAQ:LABL) today announced financial results for the fourth quarter and full year ended March 31, 2008, compared with the same period a year ago.
The Company generated its tenth consecutive year of record Revenue from Continuing Operations during fiscal 2008 of $210.3 million, an increase of 9% compared to the prior year. Income from Continuing Operations of $16 million increased 86% over the prior year while Diluted Earnings Per Share (EPS) from Continuing Operations of $1.52 increased 81% compared to the prior year.
Financial results for fiscal 2008 and 2007 included the following special items:
Year Year
Ended Ended
2008 EPS 2007 EPS
(in thousands) (in thousands)
Income from Continuing Operations,
as reported $16,007 $1.52 $8,612 $0.84
Gain on Forward Currency Contracts (5,001) (0.48) – –
Purchase Accounting Charge 367 0.03 – –
Manufacturing Expansion Costs 316 0.03 – –
Acquisition Expenses – – 1,908 0.19
Adjusted Income from Continuing
Operations and Adjusted EPS $11,689 $1.10 $10,520 $1.03
Fiscal 2008 highlights included:
— Divested the Company’s non-core Packaging Services Division, Quick Pak,
in the first quarter of 2008 for $19.2 million in cash. The
transaction resulted in an after-tax gain of $6.9 million or 67 cents
per diluted share.
— Invested approximately $16 million in North American manufacturing
expansion to provide platform for future growth, including the
acquisition of a new state of the art manufacturing facility and three
new presses.
— Completed the Company’s largest acquisition of Collotype International
Holdings Pty. Ltd. on February 29, 2008. The acquisition contributed
$9.3 million in revenue in fiscal 2008.
— Executed a new five-year $200 million credit agreement.
— The Company was added to the small cap Russell 2000 Index and ranked
86th on the Forbes listing of the 200 Best Small Companies in America,
while its common stock listing was transferred to the NASDAQ Global
Select Market.
— Invested over $3 million in new information technology systems to
support growth.
— Completed a 3-for-2 common stock split during the second quarter of
fiscal 2008.
Frank Gerace, President and CEO of Multi-Color Corporation stated, “As demonstrated by our fiscal 2008 highlights, this was a transformational year for our Company. We have redeployed and refocused our resources in our core North American business, expanded into new markets and geographic regions with our acquisition of Collotype International, while continuing to generate double digit earnings growth. I am pleased with how we are positioned entering fiscal 2009,” Gerace concluded.
Fourth Quarter Results
Financial results for the fourth quarter of fiscal year 2008 and 2007 included the following special items:
Three Months Ended
3/31/08 EPS 3/31/07 EPS
(in thousands) (in thousands)
Income from Continuing Operations,
as reported $8,224 $0.74 $3,235 $0.31
Gain on Forward Currency Contracts (5,643) (0.51) – –
Manufacturing Expansion Costs 113 0.01 – –
Purchase Accounting Charge 367 0.03 – –
Adjusted Income from Continuing
Operations and Adjusted EPS $3,061 $0.27 $3,235 $0.31
— Revenues from Continuing Operations increased 14% to $57.7 million from
$50.4 million in the prior year. The acquisition of Collotype
generated $9.3 million in revenue while organic sales decreased 4% over
the prior year due to a reduction in orders from two major customers in
the home care market.
— Gross profit increased 9% or $0.9 million. The increase in gross
profit from Collotype was offset by the organic sales reduction and
inefficiencies incurred in transitioning business to our new Batavia,
Ohio facility during the quarter.
— Selling, general and administrative expenses increased $1 million
primarily due to the additional expenses from Collotype.
— Interest expense increased by $0.7 million compared to the prior year
quarter due to increased debt incurred to finance the Collotype
acquisition.
— Income from Continuing Operations increased by $5 million compared to
the prior year due to a gain of $8.6 million ($5.6 million, after-tax)
from foreign currency forward contracts associated with the acquisition
of Collotype.