Multi-Color Announces Record Core EPS at $0.93 for September Quarter

Multi-Color Corporation announced second quarter fiscal 2015 results.
 
“Our September quarter shows improved organic revenue growth and operating efficiencies, both contributing to better earnings. We see these improvements as broadly based and sustainable. We are now focused on further organic revenue and earnings growth potential for next fiscal year, as well as acquisition opportunities,” said Nigel Vinecombe, president and CEO of Multi-Color Corporation.
 
Net revenues increased 21% to $213.0 million from $176.6 million compared to the prior year quarter. Net revenues increased 16% or $28.0 million due to acquisitions occurring after the beginning of fiscal 2014, 4% due to higher sales volumes led by North America and Europe, and 1% due to pricing sales/mix.
 
Gross profit increased $12.6 million or 38% compared to the prior year quarter. Gross margins increased to 22% 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, which contributed $6.9 million to the increase.
 
In November 2014, the company announced plans to consolidate its manufacturing facilities located in Norway, MI and Watertown, WI into its other existing facilities. The transition will begin immediately with final plant closures expected within the next several months.
 
Operating income increased 19% to $23.9 million from $20.1 million in the prior year quarter. Core operating income increased $9.8 million or 48% compared to the prior year quarter. Operating income increased primarily due to improved operating efficiencies in North America and South America and recent acquisitions, partially offset by non-core expenses. Acquisitions occurring after the beginning of fiscal 2014 contributed $5 million of increased operating income.
 
Net income increased to $11.3 million from $9.6 million in the prior year quarter. Core net income increased to $15.5 million from $10.1 million in the prior year quarter, 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.
 
Year-to-date net revenues increased 21% to $416.2 million from $343.5 million compared to the six months ended Sept. 30, 2013. Net revenues increased 18% or $60.4 million due to acquisitions occurring after the beginning of fiscal 2014 and 4% due to higher sales volumes.
 
Gross profit increased $25.0 million or 39% compared to the six months ended September 30, 2013. Gross margins increased to 21% 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. Acquisitions occurring after the beginning of fiscal 2014 contributed $14.1 million to the increase.
 
Operating income increased 38% to $50.0 million from $36.2 million in the six months ended September 30, 2013. Core operating income increased 49% to $56.6 million from $38.0 million. Acquisitions occurring after the beginning of fiscal 2014 contributed $9.8 million of increased operating income. Non-core items in fiscal 2015 primarily relate to acquisition expenses of $0.3 million, facility closure expenses of $5.4 million and a goodwill impairment loss of $1 million in fiscal 2015 related to finalization of the 2014 estimate for the Latin America Wine & Spirit reporting unit.
 
Net income increased to $24.6 million from $16.3 million in the six months ended September 30, 2013. Core net income increased to $29.1 million from $18.0 million in the prior year period, 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.