Multi-Color Corporation (NASDAQ: LABL), based in Cincinnati, OH, USA, has reported an increase in revenue of 8 percent, to $222.4 million, for fiscal 2007 over the prior year, and net income growth of 15 percent to $11 million. The 2007 results included a $3.0 million ($1.9 million, after-tax) charge for expenses related to two potential acquisitions that were terminated during the third quarter of fiscal 2007. Excluding the impact of the acquisition expenses, adjusted net income increased 34 percent to $12.9 million.
“We delivered outstanding operating results in both of our segments this year,” says Frank Gerace, Multi-Color’s president and CEO. “Despite the impact of the acquisition expenses recorded during the third quarter, we concluded the year with record revenues and earnings. I am very pleased with the significant productivity improvements realized in our Packaging Services Segment and the organic sales growth in our core label business.”
Among the year’s highlights at Multi-Color, according to Gerace: Decorating Solutions segment sales grew 9 percent organically due to strong demand from consumer product customers; gross margin in the Packaging Services segment increased to 13 percent from 5 percent, an improvement of $2.4 million, due to operational efficiencies; interest expense was reduced by 39 percent over the prior year due to reduced debt; cash generated from operating activities of $25.2 million was used to reduce outstanding debt by $22.7 million, or 81 percent.
Multi-Color received nine awards in the Tag and Label Manufacturers Institute’s 2006 Label Awards competition; three honors in the Packaging & Label Gravure Association’s Print Awards, and two awards from the Gravure Association of America. The company also was recognized by Fortune magazine as one of the 100 Best Small Businesses.
“Our value proposition continues to provide us with many new opportunities in the market place and our performance demonstrates another year of delivering record results for our shareholders. Although we experienced two terminated acquisitions during the year, we will continue to pursue those opportunities that meet our growth strategies and are in the best interests of our shareholders,” Gerace noted.