CINCINNATI, OHIO, November 6, 2018 - Multi-Color
Corporation (NASDAQ: LABL) today announced second quarter fiscal
2019 results.
"Core EPS fiscal year to date at $2.24, up 17% on
prior year, supports reiterating guidance of $4.20 to $4.50 for
FY19. Free cash flow for fiscal half year at $52 million was
predominately used to reduce debt. We continue to focus on organic
growth, internal improvement opportunities and debt reduction."
said Nigel Vinecombe, Executive Chairman of Multi-Color
Corporation.
Q2 Fiscal 2019 Highlights
-
Organic revenue growth was softer at 2% for the
quarter and 4% fiscal year to date. Growth in developing markets
remained strong offset by softer volumes in the USA in the second
half of the quarter.
-
Risk of softer revenue, particularly in North
America, is expected to continue in the second half of FY19 and
increase in FY20.
-
Gross margins were stable at 20% for the quarter
and fiscal year to date.
-
New USA Injection In-Mold Label plant
operational in the quarter to complement market leader European
plant in Belgium.
-
Q2 FY19 core EPS was enhanced by a lower tax
rate and opening balance sheet adjustments in relation to
acquisitions, which reduced depreciation, net of increased
amortization. Underlying operating profit was primarily impacted by
softer revenues, plant startup costs and lower profitability from
acquisitions completed in FY18.
Second Quarter Results
-
Net revenues increased 70% to $434.9 million
compared to $256 million in the prior year quarter.
Acquisitions occurring after the beginning of the second quarter of
fiscal 2018 accounted for a 70% increase in revenues. Organic
revenues increased 2% led by strong organic growth in developing
markets offset by lower growth in developed markets, primarily in
North America, which experienced softer volumes in the second half
of the quarter. Foreign exchange led to a 2% decrease in revenues
primarily driven by depreciation of the Australian dollar and Latin
American currencies quarter over quarter.
-
Gross profit increased 68% or $35 million
compared to the prior year quarter. Core gross profit, a
non-GAAP financial measure, increased 66% or $34.6 million compared
to the prior year quarter. Acquisitions occurring after the
beginning of the second quarter of fiscal 2018 contributed 67% or
$35 million to core gross profit. Core organic gross profit
increased $0.2 million, net of startup costs of $0.8 million
incurred in relation to a new IML facility in North America.
Unfavorable foreign exchange decreased gross profit by 1% or $0.6
million. Core gross margins, a non-GAAP financial measure,
were 20.0% of net revenues for the current year quarter compared to
20.4% in the prior year quarter.
-
Selling, general and administrative (SG&A)
expenses increased 56% or $14 million compared to the prior year
quarter primarily related to acquisitions. Core SG&A, a
non-GAAP financial measure, increased 75% or $15.8 million in the
current year quarter compared to the prior year quarter.
Acquisitions occurring after the beginning of the second quarter of
fiscal 2018 contributed $13.9 million to the core SG&A
increase, partially offset by favorable foreign exchange of $0.3
million. The remaining increase of $2.2 million primarily related
to compensation costs and professional fees. Core SG&A
increased as a percentage of sales from 8.2% to 8.5% compared to
the prior year quarter due to amortization expenses in relation to
the Constantia Labels acquisition. Non-core items related to
acquisition and integration expenses were $2.3 million in the
current year quarter compared to $4.1 million in the prior year
quarter.
-
Operating income increased 79% or $21 million
compared to the prior year quarter primarily due to acquisitions
and related synergies. Core operating income, a non-GAAP financial
measure, increased 60% or $18.8 million compared to the prior year
quarter. Core operating income includes $21.1 million in
relation to acquisitions occurring after the beginning of the
second quarter of fiscal 2018. Unfavorable foreign exchange
led to a $0.4 million reduction in core operating income.
-
Interest expense increased $12 million in the
current year quarter compared to the prior year quarter primarily
due to the increase in debt borrowings to finance the Constantia
Labels acquisition.
-
Other expense was $1.9 million in the current
year quarter compared to other income of $2.7 million in the prior
year quarter. Core other expense, a non-GAAP financial
measure, was $1.9 million in the current year quarter compared to
core other income of $0.2 million in the prior year quarter.
The current quarter expense was primarily related to the release of
a foreign indemnification receivable of $3.1 million for which an
offsetting tax liability was also relieved reducing the current
year tax rate. The balance related to net foreign currency
gains. Non-core items in the prior year quarter were
primarily related to the unrealized gain of $8.8 million on a
forward contract to fix the exchange rate between the U.S. Dollar
and the Euro for the Constantia Labels acquisition and gains of
$5.8 million from non-cash charges for acquisition-related cross
currency swaps. Additionally, the Company sold the Southeast
Asian durables business for a loss of $0.5 million.
-
Our effective tax rate decreased to 12% in the
current year quarter from 32% in the prior year quarter.
The effective tax rate on core net income, a non-GAAP
financial measure, was 17% for the current year quarter compared to
26% in the prior year quarter. The decrease in the tax rate is
primarily due to the release of a tax liability related to a
foreign indemnification receivable related to previous acquisitions
of $3.1 million for which there was an offsetting impact in other
expense.
-
The Company expects its annual effective tax
rate on core net income to be approximately 21% in fiscal 2019 or
23% excluding the release of the indemnification
receivable.
-
Net income increased 56% or $8.6 million in the
current year quarter compared to the prior year quarter. Core
net income, a non-GAAP financial measure, increased 33% or $6
million compared to the prior year quarter.
-
Diluted EPS increased 32% to $1.16 per diluted
share in the current year quarter compared to $0.88 per diluted
share in the prior year quarter. Excluding the impact of the
non-core items noted below, core EPS, a non-GAAP financial measure,
increased 11% to $1.18 per diluted share compared to $1.06 in the
prior year quarter.
The following table shows adjustments made to net
income and diluted EPS between reported GAAP and non-GAAP results
for the three months ended September 30, 2018 and 2017. Refer
to the tables in Exhibit A for a reconciliation of adjustments made
to gross profit, SG&A expenses, operating income, EBITDA, other
(income) expense, income before income taxes, income tax expense,
and effective tax rate between reported GAAP and non-GAAP
results. The sum of the EPS amounts may not equal the totals
due to rounding.
|
Three Months Ended |
|
09/30/18 |
Diluted |
09/30/17 |
Diluted |
|
(in 000's) |
EPS |
(in 000's) |
EPS |
Net
income attributable to MCC and diluted EPS, as reported |
$ |
23,755 |
$ |
1.16 |
$ |
15,190 |
$ |
0.88 |
Inventory purchase accounting charges, net of tax |
|
30 |
|
* |
|
291 |
|
0.02 |
Acquisition and integration expenses, net of tax |
|
1,677 |
|
0.08 |
|
4,084 |
|
0.24 |
Facility closure expenses, net of tax |
|
76 |
|
* |
|
63 |
|
* |
Net
foreign currency loss on acquisition, net of derivatives and
related debt, net of tax |
|
- |
|
* |
|
(1,893) |
|
(0.11) |
Impact
of US tax reform |
|
(328) |
|
(0.02) |
|
- |
|
* |
Impact
of Belgian tax reform |
|
(918) |
|
(0.04) |
|
- |
|
* |
Loss
on sale of business |
|
- |
|
* |
|
512 |
|
0.03 |
Core
net income and diluted EPS, (Non-GAAP) |
$ |
24,292 |
$ |
1.18 |
$ |
18,247 |
$ |
1.06 |
*Diluted EPS is less than $0.01 |
|
|
|
|
|
|
|
|
Fiscal 2019 Results
-
Net revenues increased 79% to $891 million
compared to $498.5 million in the six months ended September 30,
2017. Acquisitions occurring after the beginning of fiscal
2018 accounted for a 75% increase in revenues, net of divestitures.
Organic revenues increased by 4% and were broadly based
across geographies and markets.
-
Gross profit increased 73% or $73.6 million
compared to the six months ended September 30, 2017. Core
gross profit, a non-GAAP financial measure, increased 72% or $73.3
million compared to the prior year. Acquisitions occurring
after the beginning of fiscal 2018 contributed 64% or $65.5 million
to core gross profit, net of divestitures. Core organic gross
profit increased 7% or $7.5 million. The remaining increase
of $0.3 million related to the favorable effects of foreign
exchange. Core gross margin was 19.6% of net revenues for the
current year compared to 20.4% in the prior year.
-
Selling, general and administrative expenses
increased 68% or $33.2 million compared to the six months ended
September 30, 2017 primarily related to acquisitions and
acquisition-related expenses. Core SG&A, a non-GAAP
financial measure, increased 72% or $31.7 million compared to the
prior year. Acquisitions occurring after the beginning of
fiscal 2018, net of divestitures, and unfavorable foreign exchange
contributed $27.3 million and $0.2 million, respectively, to the
core SG&A increase. The remaining increase of $4.2
million related to compensation expenses and professional
fees. Core SG&A decreased as a percentage of sales to
8.5% from 8.8% compared to the prior year. Non-core items
related to acquisition and integration expenses were $6.5 million
in the current year, primarily related to the Constantia Labels
acquisition, compared to $5 million in the prior
year.
-
Operating income increased 77% or $40.4 million
compared to the six months ended September 30, 2017 primarily due
to increased organic revenues, acquisitions and related
synergies. Core operating income increased 72% or $41.6
million compared to the prior year. Core operating income
includes $38.1 million in relation to acquisitions occurring after
the beginning of fiscal 2018, net of divestitures. Non-core
items in the current year quarter related to inventory purchase
accounting adjustments of $0.2 million, acquisition and integration
expenses of $6.5 million, and facility closure expenses of $0.1
million.
-
Interest expense increased $24.9 million in the
six months ended September 30, 2018 compared to the prior year
primarily due to the increase in debt borrowings to finance the
Constantia Labels acquisition.
-
Other expense was $2.9 million in the six months
ended September 30, 2018 compared to other income of $1.5 million
in the prior year. Core other expense, a non-GAAP financial
measure, was $2.9 million in the current year compared to core
other expense of $1 million in the prior year. Core other
expense included the release of foreign indemnification receivables
in the amount of $3.1 million in the current year and $1.1 million
in the prior year for which offsetting tax liabilities were
relieved reducing the current and prior year tax rates.
Non-core items in the prior year were primarily related to the
unrealized gain of $8.8 million on a forward contract to fix the
exchange rate between the U.S. Dollar and the Euro for the
acquisition of Constantia Labels and gains of $5.8 million from
non-cash charges for acquisition-related cross currency swaps.
Additionally, the Company sold the Southeast Asian durables
business for a loss of $0.5 million.
-
The effective tax rate decreased to 19% for the
six months ended September 30, 2018 compared to 28% in the prior
year. The effective tax rate on core net income was 22% for
the current year compared to 25% in the prior year, which included
the release of tax liabilities related to foreign indemnification
receivables related to previous acquisitions for $3.1 million in
the current year and $1.1 million in the prior year for which there
were offsetting impacts in other expense.
-
Net income increased 43% or $12.6 million for
the six months ended September 30, 2018 compared to the prior
year. Core net income increased 40% or $13.1 million compared
to the prior year.
-
Diluted EPS increased 19% or $0.33 for the six
months ended September 30, 2018 compared to the prior year.
Excluding the impact of the non-core items noted below, core
EPS increased 17% to $2.24 compared to $1.92 in the prior
year.
The following table shows adjustments made to net
income and diluted EPS between reported GAAP and non-GAAP results
for the six months ended September 30, 2018 and 2017. Refer
to the tables in Exhibit A for a reconciliation of adjustments made
to gross profit, SG&A expenses, operating income, other
(income) expense, EBITDA, income before income taxes, income tax
expense, and effective tax rate between reported GAAP and non-GAAP
results. The sum of the EPS amounts may not equal the totals
due to rounding.
|
Six Months Ended |
|
09/30/18 |
Diluted |
09/30/17 |
Diluted |
|
(in 000's) |
EPS |
(in 000's) |
EPS |
Net
income attributable to MCC and diluted EPS, as reported |
$ |
41,894 |
$ |
2.04 |
$ |
29,296 |
$ |
1.71 |
Inventory purchase accounting charges, net of tax |
|
121 |
|
0.01 |
|
291 |
|
0.02 |
Acquisition and integration expenses, net of tax |
|
5,191 |
|
0.25 |
|
4,702 |
|
0.27 |
Facility closure expenses, net of tax |
|
94 |
|
* |
|
86 |
|
0.01 |
Net
foreign currency loss on acquisition, net of derivatives and
related debt, net of tax |
|
- |
|
* |
|
(1,893) |
|
(0.11) |
Impact
of US tax reform |
|
(328) |
|
(0.02) |
|
- |
|
* |
Impact
of Belgian tax reform |
|
(918) |
|
(0.04) |
|
- |
|
* |
Loss
on sale of business |
|
- |
|
* |
|
512 |
|
0.03 |
Core
net income and diluted EPS, (Non-GAAP) |
$ |
46,054 |
$ |
2.24 |
$ |
32,994 |
$ |
1.92 |
*Diluted EPS is less than $0.01 |
Second Quarter 2019 Earnings
Conference Call and Webcast
The Company will hold a conference call on
Tuesday, November 6, 2018 at 10:00 a.m. (ET) to discuss the news
release. For domestic access to the conference call, please
call 866-516-2921 (participant code 5129689) or for international
access, please call +1 213-660-0878 (participant code 5129689) by
9:45 a.m. (ET). A replay of the conference call will be
available at 12:30 p.m. (ET) on Tuesday, November 6, 2018 through
12:30 p.m. (ET) on Tuesday, November 13, 2018 by calling
855-859-2056 (participant code 5129689) or internationally, by
calling +1 404-537-3406 (participant code 5129689). In
addition, the call will be broadcast over the Internet and can be
accessed from a link on the Company's home page at
http://www.mcclabel.com. Listeners should go to the website
prior to the call to register and to download any necessary audio
software.
Safe Harbor
Statement
The Company believes certain statements contained
in this report that are not historical facts that constitute
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995, and that are intended to
be covered by the safe harbors created by that Act. All statements
contained herein other than statements of historical fact are
forward-looking statements. Forward-looking statements include
statements regarding our future financial position, business
strategy, budgets, projected costs, plans and objectives of
management for future operations. The words "may," "continue,"
"estimate," "intend," "plan," "will," "believe," "project,"
"expect," "anticipate" and similar expressions (as well as the
negative versions thereof) may identify forward-looking statements,
but the absence of these words does not necessarily mean that a
statement is not forward-looking. With respect to the
forward-looking statements, we claim the protection of the safe
harbor for forward-looking statements contained in the Private
Securities Litigation Reform Act of 1995. Reliance should not be
placed on forward-looking statements because they involve known and
unknown risks, uncertainties and other factors which may cause
actual results, performance or achievements to differ materially
from those expressed or implied. Such forward-looking statements
speak only as of the date made. The Company undertakes no
obligation to update any forward-looking statements to reflect
events or circumstances after the date on which they are made.
Statements concerning expected financial
performance, on-going business strategies, and possible future
actions which the Company intends to pursue in order to achieve
strategic objectives constitute forward-looking information.
Implementation of these strategies and the achievement of such
financial performance is each subject to numerous conditions,
uncertainties and risk factors. Factors which could cause
actual performance by the Company to differ materially from these
forward-looking statements include, without limitation: factors
discussed in conjunction with a forward-looking statement; changes
in global economic and business conditions; changes in business
strategies or plans; raw material cost pressures; availability of
raw materials; availability to pass raw material cost increases to
our customers; interruption of business operations; changes in, or
the failure to comply with, government regulations, legal
proceedings and developments, including but not limited to, tax law
changes; acceptance of new product offerings, services and
technologies; new developments in packaging; our ability to
effectively manage our growth and execute our long-term strategy;
our ability to manage foreign operations and the risks involved
with them, including compliance with applicable anti-corruption
laws; currency exchange rate fluctuations; tariffs and tradewars;
our ability to manage global political uncertainty; terrorism and
political unrest; increases in general interest rate levels and
credit market volatility affecting our interest costs; competition
within our industry; our ability to consummate and successfully
integrate acquisitions; our ability to recognize the benefits of
acquisitions, including potential synergies and cost savings;
failure of an acquisition or acquired company to achieve its plans
and objectives generally; risk that proposed or consummated
acquisitions may disrupt operations or pose difficulties in
employee retention or otherwise affect financial or operating
results; risk that some of our goodwill may be or later become
impaired; the success and financial condition of our significant
customers; our ability to maintain our relationships with our
significant customers; dependence on information technology; our
ability to market new products; our ability to maintain an
effective system of internal control; ongoing claims, lawsuits and
governmental proceedings, including environmental proceedings;
availability, terms and developments of capital and credit;
dependence on key personnel; quality of management; our ability to
protect our intellectual property and the potential for
intellectual property litigation; employee benefit costs; and risk
associated with significant leverage. The Company undertakes no
obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise. In addition to the factors described in
this paragraph, Part I, Item 1A of our Annual Report on Form 10-K
for the year ended March 31, 2018 contains a list and description
of uncertainties, risks and other matters that may affect the
Company.
About Multi-Color
(http://www.mcclabel.com)
Cincinnati, Ohio, U.S.A. based Multi-Color Corporation (MCC),
established in 1916, is a leader in global label solutions
supporting a number of the world's most prominent brands including
leading producers of home and personal care, wine and spirits, food
and beverage, healthcare and specialty consumer products. MCC
serves national and international brand owners in the North,
Central, and South America, Europe, Africa, China, Southeast Asia,
Australia and New Zealand with a comprehensive range of the latest
label technologies in Pressure Sensitive, Cut and Stack, In-Mold,
Shrink Sleeve, Heat Transfer, Roll Fed, and Aluminum Labels. MCC
employs approximately 8,400 associates across 71 label producing
operations globally and is a public company trading on the NASDAQ
Global Select Market (company symbol: LABL). For additional
information on Multi-Color, please visit
http://www.mcclabel.com.
Multi-Color Corporation and
Subsidiaries |
Condensed Consolidated Statements of
Income |
(unaudited) |
(in thousands, except per share
data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
September 30, 2018 |
|
September 30, 2017 |
|
September 30, 2018 |
|
September 30, 2017 |
|
|
|
|
|
|
|
|
|
|
|
|
Net
revenues |
$ |
434,913 |
|
$ |
256,034 |
|
$ |
891,044 |
|
$ |
498,474 |
Cost
of revenues |
|
348,128 |
|
|
204,260 |
|
|
716,249 |
|
|
397,243 |
Gross
profit |
|
86,785 |
|
|
51,774 |
|
|
174,795 |
|
|
101,231 |
Gross
margin |
|
20.0% |
|
|
20.2% |
|
|
19.6% |
|
|
20.3% |
Selling, general and administrative expenses |
|
39,191 |
|
|
25,200 |
|
|
81,959 |
|
|
48,789 |
Facility closure expenses |
|
114 |
|
|
95 |
|
|
141 |
|
|
129 |
Operating income |
|
47,480 |
|
|
26,479 |
|
|
92,695 |
|
|
52,313 |
Interest expense |
|
18,690 |
|
|
6,669 |
|
|
37,889 |
|
|
13,004 |
Other
(income) expense, net |
|
1,860 |
|
|
(2,676) |
|
|
2,904 |
|
|
(1,477) |
Income
before income taxes |
|
26,930 |
|
|
22,486 |
|
|
51,902 |
|
|
40,786 |
Income
tax expense |
|
3,125 |
|
|
7,296 |
|
|
10,005 |
|
|
11,454 |
Net
income |
$ |
23,805 |
|
$ |
15,190 |
|
$ |
41,897 |
|
$ |
29,332 |
Less:
Net income attributable to non-controlling interests |
|
50 |
|
|
- |
|
|
3 |
|
|
36 |
Net
income attributable to Multi-Color Corporation |
$ |
23,755 |
|
$ |
15,190 |
|
$ |
41,894 |
|
$ |
29,296 |
|
|
|
|
|
|
|
|
|
|
|
|
Basic
shares outstanding |
|
20,464 |
|
|
17,015 |
|
|
20,453 |
|
|
16,983 |
Diluted shares outstanding |
|
20,552 |
|
|
17,177 |
|
|
20,550 |
|
|
17,168 |
|
|
|
|
|
|
|
|
|
|
|
|
Basic
earnings per share |
$ |
1.16 |
|
$ |
0.89 |
|
$ |
2.05 |
|
$ |
1.73 |
Diluted earnings per share |
$ |
1.16 |
|
$ |
0.88 |
|
$ |
2.04 |
|
$ |
1.71 |
Multi-Color Corporation |
Selected Balance Sheet
Information |
(in thousands) |
Unaudited |
|
|
|
|
|
|
|
September 30, 2018 |
|
March 31, 2018 |
|
|
|
|
|
|
Current assets |
$ |
592,454 |
|
$ |
601,183 |
Total
assets |
$ |
2,822,193 |
|
$ |
2,902,976 |
Current liabilities |
$ |
321,216 |
|
$ |
327,227 |
Total
liabilities |
$ |
2,091,082 |
|
$ |
2,142,603 |
Stockholders' equity |
$ |
731,111 |
|
$ |
760,373 |
Total
debt |
$ |
1,566,119 |
|
$ |
1,598,685 |
Exhibit A
The Company reports its financial results in
accordance with generally accepted accounting principles in the
U.S. (GAAP). To provide investors with additional information along
with period-to-period comparisons of the Company's financial and
operating results, the Company reports certain non-GAAP financial
measurements, as defined by the Securities and Exchange Commission.
These measurements are supplemental in nature and should not be
considered to be an alternative to reported results prepared in
accordance with GAAP. The Company's non-GAAP financial measurements
reported for the periods presented in this earnings release are:
core gross profit, core SG&A, core operating income, core
EBITDA, core other (income) expense, core net income, core diluted
EPS, core income before income taxes, core income tax expense, and
core effective tax rate.
These non-GAAP financial measurements are adjusted
to exclude inventory purchase accounting adjustments, acquisition
and integration expenses, facility closure expenses, acquisition
financing and structuring costs, the transitional impacts of tax
reform in the U.S. and Belgium, and the loss on the sale of the
Southeast Asian Durables business. These adjustments are disclosed
to give the reader an indication of the performance of the business
excluding discrete costs related to acquisitions of the new
businesses. Acquisition costs represent discrete, external,
transaction-related costs, specific to acquisitions that we believe
will be accretive in future periods. Similarly, facility closure
expenses relate to discrete costs to close plants that management
believes will ultimately benefit the business.
These non-GAAP financial measures provide
investors with an understanding of the Company's gross profit,
SG&A expenses, operating income, core EBITDA, core other
(income) expense, net income, diluted EPS, income before income
taxes, income tax expense, and effective tax rate adjusted to
exclude the effect of the non-core items identified above. Core
EBITDA is a non-GAAP financial measure used to measure operating
results, defined as earnings before interest, taxes, depreciation
and amortization, and other non-operating income and expenses. We
believe that these non-GAAP financial measures assist investors in
making a consistent comparison to the three and six months ended
September 30, 2018 and 2017. In addition, management uses these
non-GAAP financial measures internally to perform trend analysis
and analyze operating performance to ensure resources are allocated
effectively. The non-GAAP measures allow management to analyze
trends and performance without masking or distorting the results
with the special items identified by management.
Core Gross Profit:
|
Three Months Ended |
|
Six Months Ended |
|
09/30/18 |
|
09/30/17 |
|
09/30/18 |
|
09/30/17 |
|
(in 000's) |
|
(in 000's) |
|
(in 000's) |
|
(in 000's) |
Gross
profit, as reported |
$ |
86,785 |
|
$ |
51,774 |
|
$ |
174,795 |
|
$ |
101,231 |
Inventory purchase accounting charges |
|
43 |
|
|
448 |
|
|
173 |
|
|
448 |
Core
gross profit, (Non-GAAP) |
$ |
86,828 |
|
$ |
52,222 |
|
$ |
174,968 |
|
$ |
101,679 |
Core
gross profit, (Non-GAAP) |
|
|
|
|
|
|
|
|
|
|
|
as a % of net revenues |
|
20.0% |
|
|
20.4% |
|
|
19.6% |
|
|
20.4% |
Core SG&A Expenses:
|
Three Months Ended |
|
Six Months Ended |
|
09/30/18 |
|
09/30/17 |
|
09/30/18 |
|
09/30/17 |
|
(in 000's) |
|
(in 000's) |
|
(in 000's) |
|
(in 000's) |
SG&A expenses, as reported |
$ |
39,191 |
|
$ |
25,200 |
|
$ |
81,959 |
|
$ |
48,789 |
Acquisition & integration expenses |
|
(2,254) |
|
|
(4,087) |
|
|
(6,474) |
|
|
(4,993) |
Core
SG&A expenses, (Non-GAAP) |
$ |
36,937 |
|
$ |
21,113 |
|
$ |
75,485 |
|
$ |
43,796 |
Core
SG&A expenses, as a % |
|
|
|
|
|
|
|
|
|
|
|
of net revenues, (Non-GAAP) |
|
8.5% |
|
|
8.2% |
|
|
8.5% |
|
|
8.8% |
Core Operating Income:
|
Three Months Ended |
|
Six Months Ended |
|
09/30/18 |
|
09/30/17 |
|
09/30/18 |
|
09/30/17 |
|
(in 000's) |
|
(in 000's) |
|
(in 000's) |
|
(in 000's) |
Operating income, as reported |
$ |
47,480 |
|
$ |
26,479 |
|
$ |
92,695 |
|
$ |
52,313 |
Inventory purchase accounting charges |
|
43 |
|
|
448 |
|
|
173 |
|
|
448 |
Acquisition & integration expenses |
|
2,254 |
|
|
4,087 |
|
|
6,474 |
|
|
4,993 |
Facility closure expenses |
|
114 |
|
|
95 |
|
|
141 |
|
|
129 |
Core
operating income, (Non-GAAP) |
$ |
49,891 |
|
$ |
31,109 |
|
$ |
99,483 |
|
$ |
57,883 |
Core
operating income, as a % |
|
|
|
|
|
|
|
|
|
|
|
of net revenues, (Non-GAAP) |
|
11.5% |
|
|
12.2% |
|
|
11.2% |
|
|
11.6% |
Core EBITDA:
|
Three Months Ended |
|
Six Months Ended |
|
09/30/18 |
|
09/30/17 |
|
09/30/18 |
|
09/30/17 |
|
(in 000's) |
|
(in 000's) |
|
(in 000's) |
|
(in 000's) |
Net income attributable to MCC, as reported |
$ |
23,755 |
|
$ |
15,190 |
|
$ |
41,894 |
|
$ |
29,296 |
Inventory purchase accounting charges, net of
tax |
|
30 |
|
|
291 |
|
|
121 |
|
|
291 |
Acquisition and integration expenses, net of
tax |
|
1,677 |
|
|
4,084 |
|
|
5,191 |
|
|
4,702 |
Facility closure expenses, net of tax |
|
76 |
|
|
63 |
|
|
94 |
|
|
86 |
Net foreign currency loss on acquisition, net of
derivatives and related debt, net of tax |
|
- |
|
|
(1,893) |
|
|
- |
|
|
(1,893) |
Impact of US tax reform |
|
(328) |
|
|
- |
|
|
(328) |
|
|
- |
Impact of Belgian tax reform |
|
(918) |
|
|
- |
|
|
(918) |
|
|
- |
Loss
on sale of business |
|
- |
|
|
512 |
|
|
- |
|
|
512 |
Core net income (Non-GAAP) |
$ |
24,292 |
|
$ |
18,247 |
|
$ |
46,054 |
|
$ |
32,994 |
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
18,690 |
|
|
6,669 |
|
|
37,889 |
|
|
13,004 |
Core income tax expense (Non-GAAP) |
|
4,999 |
|
|
6,370 |
|
|
12,633 |
|
|
10,827 |
Depreciation |
|
10,537 |
|
|
8,914 |
|
|
28,439 |
|
|
17,406 |
Amortization |
|
12,253 |
|
|
3,831 |
|
|
22,663 |
|
|
7,435 |
Net income attributable to non-controlling
interests |
|
50 |
|
|
- |
|
|
3 |
|
|
36 |
Core other (income) expense |
|
1,860 |
|
|
(177) |
|
|
2,904 |
|
|
1,022 |
Core EBITDA, (Non-GAAP) |
$ |
72,681 |
|
$ |
43,854 |
|
$ |
150,585 |
|
$ |
82,724 |
Core EBITDA as a % of net revenues, (Non-GAAP) |
|
16.7% |
|
|
17.1% |
|
|
16.9% |
|
|
16.6% |
Core Other (income)
expense:
|
Three Months Ended |
|
Six Months Ended |
|
09/30/18 |
|
09/30/17 |
|
09/30/18 |
|
09/30/17 |
|
(in 000's) |
|
(in 000's) |
|
(in 000's) |
|
(in 000's) |
Other
(income) expense, net, as reported |
$ |
1,860 |
|
$ |
(2,676) |
|
$ |
2,904 |
|
$ |
(1,477) |
Foreign currency loss on acquisition, net of derivatives and
related debt |
|
- |
|
|
3,011 |
|
|
- |
|
|
3,011 |
Loss
on sale of businesses |
|
- |
|
|
(512) |
|
|
- |
|
|
(512) |
Core
other (income) expense, net (Non-GAAP) |
$ |
1,860 |
|
$ |
(177) |
|
$ |
2,904 |
|
$ |
1,022 |
Core Tax:
|
Three Months Ended |
|
Six Months Ended |
|
09/30/18 |
|
09/30/17 |
|
09/30/18 |
|
09/30/17 |
|
(in 000's) |
|
(in 000's) |
|
(in 000's) |
|
(in 000's) |
Income
before income taxes, as reported |
$ |
26,930 |
|
$ |
22,486 |
|
$ |
51,902 |
|
$ |
40,786 |
Non-core items |
|
2,411 |
|
|
2,131 |
|
|
6,788 |
|
|
3,071 |
Core
income before income taxes, (Non-GAAP) |
$ |
29,341 |
|
$ |
24,617 |
|
$ |
58,690 |
|
$ |
43,857 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
09/30/18 |
|
09/30/17 |
|
09/30/18 |
|
09/30/17 |
|
(in 000's) |
|
(in 000's) |
|
(in 000's) |
|
(in 000's) |
Income
tax expense, as reported |
$ |
3,125 |
|
$ |
7,296 |
|
$ |
10,005 |
|
$ |
11,454 |
Impact
of US tax reform |
|
328 |
|
|
- |
|
|
328 |
|
|
- |
Impact
of Belgian tax reform |
|
918 |
|
|
- |
|
|
918 |
|
|
- |
Non-core items |
|
628 |
|
|
(926) |
|
|
1,382 |
|
|
(627) |
Core
income tax expense, (Non-GAAP) |
$ |
4,999 |
|
$ |
6,370 |
|
$ |
12,633 |
|
$ |
10,827 |
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax rate |
|
12% |
|
|
32% |
|
|
19% |
|
|
28% |
Core
effective tax rate (Non-GAAP) |
|
17% |
|
|
26% |
|
|
22% |
|
|
25% |
For more information, please contact: Sharon E.
Birkett
Vice President and Chief Financial Officer
Multi-Color Corporation, (513) 345-5311
Q2 FY2019 Earnings Release Final
v2
This
announcement is distributed by West Corporation on behalf of West
Corporation clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Multi-Color Corporation via Globenewswire
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