Multi-Color Corp. Announces Record Core Earnings Per Share at $0.81 for June Quarter
CINCINNATI—August 11, 2014—Nigel Vinecombe, president and CEO of Multi-Color Corp., commented on the company's financials for the June quarter:
"June quarter represents the first quarter with full contributions from all FY14 acquisitions and with no significant one-off integration costs. Improved gross margins at 21 percent drove core operating income to 13 percent of revenues and core EBITDA to 18 percent of revenues for the quarter. We remain focused on increasing organic growth and continuing to improve execution in existing businesses this calendar year."
- Net revenues increased 22 percent to $203.1 million from $166.8 million in the prior year. Acquisitions occurring after the beginning of fiscal 2014 account for 20 percent of the increase or $33.2 million. Organic revenues increased 3 percent in volume, offset by a 1 percent decrease due to the unfavorable impact of sales mix and pricing.
- Gross profit increased $12.4 million or 41 percent compared to the prior year. Acquisitions occurring after the beginning of fiscal 2014 contributed $7.5 million to the increase. Gross margins increased to 21 percent of sales revenues primarily due to improved operating efficiencies in North America and South America and a strong contribution from acquisitions occurring after the beginning of fiscal 2014. Prior year gross margins at 18 percent were impacted by unusually high costs related to press transfers and installations and charges for inventory write-offs.
- Selling, general and administrative (SG&A) expenses increased $2.4 million or 17 percent compared to the prior year. Acquisitions occurring after the beginning of fiscal 2014 contributed $2.4 million to the increase. Core SG&A, as a percent of sales, was 8 percent for both the current and prior periods.
- Non-core items included in SG&A expenses in fiscal 2015 consisted of $0.2 million of acquisition expense. Non-core items included in SG&A expenses in fiscal 2014 consisted of $0.4 million of acquisition expense and $1.0 million of costs related to integration expense for the plant acquired from the Labelmakers Wine Division.
- Operating income increased 62 percent to $26.1 million from $16.1 million in the prior year. Core operating income increased $8.8 million or 51 percent compared to the prior year primarily due to improved operating performance in North America and South America and recent acquisitions. Acquisitions occurring after the beginning of fiscal 2014 contributed $5.1 million to the increase. Non-core items related to acquisition and integration expenses.
- Interest expense increased $0.6 million or 11 percent compared to the prior year. The increase is due primarily to an increase in debt borrowings to finance fiscal 2014 acquisitions.
- The Company had $466.7 million of debt at June 30, 2014 compared to $400.9 million at June 30, 2013.
- The effective tax rate decreased to 34 percent in fiscal 2015 to date from 37 percent in the prior year primarily due to the geographical mix of worldwide earnings. The Company expects its annual effective tax rate to be approximately 35 percent in fiscal 2015.
- Diluted earnings per share (EPS) increased 100 percent to $0.80 per diluted share from $0.40 in the prior year. Excluding the impact of the non-core items noted below, core EPS increased 69 percent to $0.81 per diluted share from $0.48 per diluted share in the prior year.
- Net income increased to $13.3 million from $6.7 million in the prior year. Core net income increased to $13.5 million from $7.9 million in the prior year, primarily due to acquisitions occurring after the beginning of fiscal 2014 and gross margin improvements.
The following table shows adjustments made to Net Income and Diluted EPS between reported GAAP and Non-GAAP results for fiscal 2015 and 2014.
About Multi-Color Corp.
Cincinnati-based Multi-Color Corp. (MCC), established in 1916, is a leader in global label solutions supporting a number of the world's most prominent brands including leading producers of home and personal care, wine and spirit, food and beverage and specialty consumer products. MCC serves international brand owners in North, Central and South America, Europe, Australia, New Zealand, South Africa and China with a comprehensive range of the latest label technologies in Pressure Sensitive, Cut and Stack, In-Mold, Shrink Sleeve and Heat Transfer. MCC employs over 3,250 associates across 32 operations globally and is a public company trading on the NASDAQ Global Select Market (company symbol: LABL).
Source: Multi-Color Corp.