The board of directors of Multi-Color Corporation (Nasdaq: LABL), of Cincinnati, OH, USA, declared a three-for-two stock split effective late last week. The stock split will be effected through a 50 percent stock dividend, payable on September 17 to shareholders of record as of the close of business on August 31.
“On behalf of our board of directors, I am pleased to announce this stock split, which demonstrates our confidence in the continued growth of our company,” says President and CEO Frank Gerace. “We intend to maintain our historical $0.05 per share quarterly dividend which will result in additional returns to our shareholders.”
In May, Multi-Color 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.
Multi-Color is a supplier of labels and other packaging products. The company is one of the world’s largest producers of in-mold labels and heat transfer labels, and a major manufacturer of cut-and-stack and pressure sensitive labels and shrink sleeves. Multi-Color has eight manufacturing locations in the United States. Its products are shipped to more than 650 customers in the United States, Canada, Mexico, and Central and South America.