Operating income grew 9 percent to $3.1 million; net income rose by 9 percent to $1.6 million, which included after-tax charges of $143,000 in connection with the shut-down of the Las Vegas operation; and earnings per share advanced to 24 cents per share, up one cent or 4 percent from the previous year.
“A variety of factors impacted our third quarter results both positively and negatively,” says Frank Gerace, president and CEO. “We experienced improved operating performance at our manufacturing locations compared with a year ago, and improved operating performance at our Las Vegas facility from the previous quarter. In spite of these improvements, we took a $143,000 charge to earnings as a result of the manufacturing consolidation plan announced during the quarter. Finally, we experienced a shortfall in sales during the last two weeks of December from several large customers.”
Approximately 73 percent of the revenue growth for the quarter was due to the Company's recent acquisitions of heat transfer label technologies. The remaining growth was due to organic growth in both the Packaging Services Division — Quick Pak — and in its core label business.