Multi-Color posts profits on down sales

    Multi-Color Corporation announced diluted earnings per share from continuing operations of 32 cents for its first quarter, up 39% from the prior year.

    "I am pleased with our ability to improve earnings in an extraordinarily difficult growth environment. Our results reflect the actions we have taken over the past year to aggressively reduce costs which have offset the impact of lower sales volume from reduced consumer spending," stated Frank Gerace, President and CEO of Multi-Color Corporation.

    First quarter highlights included:

    - Net revenues decreased 12% to $69.7 million from $79.5 million due to an 8% decline in sales volume and a 4% unfavorable foreign exchange impact. The continued decline in sales volume is a result of the impact of reduced consumer spending.

    - Gross profit decreased 13% or $2 million due to the decline in volume; however gross margins were maintained at 19% of revenues due to improved operating efficiencies and reductions in fixed costs.

    - Selling, general and administrative (SG&A) expenses decreased 26% or $2.2 million due to reductions in headcount and incentive compensation, and other cost decreases. As a percent of revenues, SG&A expenses were reduced to 9% compared to 11% in the prior year.

    - Operating income increased 2% to $6.7 million from $6.5 million due to lower SG&A expenses. Operating margins increased by 200 basis points to 10% of revenues compared to 8% in the prior year.

    - Interest expense decreased 43% to $1.2 million from $2.1 million due to lower bank debt levels and interest rates.

    - Net income from continuing operations increased by $1.2 million or 40% compared to the prior year.

    - Earnings Per Share (EPS) from continuing operations increased 39% to 32 cents per diluted share from 23 cents in the prior year.

    "We continue to take a cautious view for the remainder of the year as consumer spending remains unpredictable and market pricing remains competitive. I am especially impressed with our associates for the actions they are taking to execute our low cost business model. I want to thank them for the positive impact they are having on our Company's results," Gerace concluded.