Multi-Color Corporation Announces Results for Fiscal Year 2009

Fri. May 15, 2009; Posted: 08:30 AM

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The Company generated its eleventh consecutive year of record Revenues from Continuing Operations during fiscal 2009 of $289.8 million, an increase of 38% compared to the prior year. In addition, the Company generated record Adjusted Income from Continuing Operations of $13.7 million as outlined below.


    Financial results for fiscal 2009 and 2008 included the following special
    items:

                                         Year               Year
                                         Ended              Ended
                                         2009               2008
                                         (in                (in
                                      thousands)    EPS    thousands)    EPS
    Income from Continuing Operations
     and EPS, as reported              $11,435     $0.93   $16,007      $1.52
    Plant Closure Costs                  1,634      0.13         -          -
    Gain on Forward Currency
     Contracts                               -         -    (5,001)     (0.48)
    Other Special Charges                  602      0.05       683       0.06
    Adjusted Income from Continuing
     Operations and Adjusted EPS       $13,671     $1.11   $11,689      $1.10

Fiscal 2009 highlights included:

    --  Net revenues increased 38% to $289.8 million from $210.3 million.  The
        increase was due to the Collotype acquisition completed in February
        2008, which generated $106.4 million in revenues for the year, partially
        offset by a $17.6 million or 9% reduction in North American organic
        revenues due to the recessionary impact on consumer spending.
    --  Gross profit increased 36% to $52.8 million due to the Collotype
        acquisition, partially offset by the impact of the decrease in North
        American organic revenues and plant start-up costs incurred during the
        first half of the year for the new Batavia, Ohio  manufacturing
        facility.
    --  Selling, general and administrative (SG&A) expenses increased $6
        million due to comparable expenses from the Collotype acquisition.  As a
        percent of sales, SG&A expenses were reduced by 75 basis points due
        to cost reduction actions.
    --  Operating income increased 31% to $22.9 million.  Excluding the impact
        of the special items from both periods, adjusted operating income
        increased 42% to $26.4 million from $18.5 million.
    --  Interest expense increased to $6.8 million from $1 million due to the
        debt incurred to finance the Collotype acquisition.  During fiscal year
        2009, the Company repaid $25 million or 19% of long term debt.

    --  The Company's effective tax rate was 30% in 2009 compared to 36% in
        2008 due to income in lower tax jurisdictions and the finalization of
        the acquisition tax structure related to the Company's
        international operations.  The Company expects its annual effective tax
        rate to be approximately 30% in fiscal year 2010.

Frank Gerace, President and CEO of Multi-Color Corporation stated, "In the midst of the most severe global economic decline in over 75 years, the Company successfully completed the largest transformation in its 100 year history by expanding its international footprint and completing its largest capital reinvestment in North America while continuing to produce record results."

Fourth Quarter Results


    Financial results for the fourth quarter of fiscal year 2009 and 2008
    included the following special items:

                                                  Three Months Ended
                                        3/31/09             3/31/08
                                        (in                  (in
                                     thousands)    EPS    thousands)    EPS
    Income from Continuing
     Operations, as reported             $2,852   $0.23      $8,224    $0.74
    Plant Closure Costs                   1,634    0.13           -        -
    Benefit from Finalization of
     Acquisition Tax Structure             (996)  (0.08)          -        -
    Gain on Forward Currency
     Contracts                                -       -      (5,643)   (0.51)
    Other Special Charges                     -       -         480     0.04
    Adjusted Income from Continuing
     Operations and Adjusted EPS         $3,490   $0.28      $3,061    $0.27

    --  Net revenues increased 16% to $67.0 million from $57.7 million in the
        prior year.  Collotype revenues increased $12.6 million, while North
        American organic sales decreased 7% compared to the prior year.
    --  Gross profit increased 16% or $1.8 million.  The increase in gross
        profit from Collotype was partially offset by the impact of the organic
        sales decline.
    --  Selling, general and administrative expenses decreased by $0.3 million
        as aggressive cost reduction actions offset the additional Collotype
        SG&A expenses.  As a percent of sales, SG&A expenses were
        reduced by 204 basis points.
    --  Interest expense increased by $0.5 million due to debt incurred to
        finance the Collotype acquisition.
    --  The Company realized a tax benefit of $1.0 million related to the
        finalization of the acquisition tax structure for its international
        operations.  The tax benefit increased EPS by $0.08.

    --  Adjusted Income from Continuing Operations increased 14% to $3.5 million
        and Adjusted EPS increased 4% to $0.28 compared to the prior year.

Fourth Quarter and Fiscal Year 2009 Earnings Conference Call and Webcast

The Company will hold a conference call on May 15, 2009 at 11:00 a.m. (ET) to discuss the news release. For domestic access to the conference call, please dial 1-888-679-8034 (code 50430494) or for international access please call 1-617-213-4847 (code 50430494) by 10:45 a.m. (ET). A replay of the conference call will be available at 2:00 p.m. (ET) on May 15, 2009 until midnight (ET) on May 22, 2009, by calling 1-888-286-8010 (code 95604041) if domestic or for international access please call 1-617-801-6888 (code 95604041). In addition, the call will be broadcast over the Internet and can be accessed from a link on the Company's home page at 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=PJ (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 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; 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 14 manufacturing locations worldwide; 8 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       Twelve Months
                                             Ended               Ended
                                       March 31, March 31, March 31, March 31,
                                         2009      2008      2009      2008

    Revenues                            $67,032   $57,702  $289,763  $210,307
    Cost of Goods Sold                   54,158    46,651   236,957   171,381
    Gross Profit                         12,874    11,051    52,806    38,926
    Gross Margin                             19%       19%       18%       19%
    Selling, General & Administrative     6,053     6,387    27,388    21,427
    Plant Closure Costs                   2,553         -     2,553         -
    Operating Income                      4,268     4,664    22,865    17,499

    Other (Income) Expense                  (22)   (8,682)     (378)   (8,290)
    Interest Expense                      1,290       785     6,841       962
    Income from Continuing Operations
     before Taxes                         3,000    12,561    16,402    24,827
    Provision for Taxes                     148     4,337     4,967     8,820
    Income from Continuing Operations     2,852     8,224    11,435    16,007
    Income/(Loss) from Discontinued
     Operations, Net of Taxes                33       (44)     (137)    6,977
    Net Income                           $2,885    $8,180   $11,298   $22,984

    Basic Earnings Per Share:
      Income from Continuing Operations   $0.23     $0.76     $0.94     $1.57
      Income (Loss) from Discontinued
       Operations                            $-        $-    $(0.01)    $0.68
    Basic Earnings Per Share              $0.23     $0.76     $0.93     $2.25

    Diluted Earnings Per Share:
      Income from Continuing Operations   $0.23     $0.74     $0.93     $1.52
      Income (Loss) from Discontinued
       Operations                            $-        $-    $(0.01)    $0.66
    Diluted Earnings Per Share            $0.23     $0.74     $0.92     $2.18

    Basic Shares Outstanding             12,192    10,779    12,156    10,212
    Diluted Shares Outstanding           12,286    11,039    12,355    10,520


    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

                          March 31, 2009    March 31, 2008
    Current Assets            $56,052           $72,228
    Total Assets             $258,208          $314,080
    Current Liabilities       $42,521           $53,711
    Total Liabilities        $155,176          $194,142
    Stockholders' Equity     $103,032          $119,938
    Total Debt               $102,319          $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.

SOURCE Multi-Color Corporation

http://www.multicolorcorp.com

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