Multi-Color Corporation Announces Results for First Quarter of Fiscal 2009

CINCINNATI, July 31 /PRNewswire-FirstCall/ -- Multi-Color Corporation
(Nasdaq: LABL) today announced financial results for the first quarter ended
June 30, 2008, compared with the same period a year ago.
First quarter highlights included:
-- Net revenues increased 52% to $79.5 million from $52.3 million. The
significant increase in revenues was due to the Collotype acquisition
completed in February 2008, which generated $30.7 million in revenues for the
quarter.
-- North American organic sales decreased 7% compared to the prior year
due primarily to a reduction in orders from a major customer.
-- Gross profit increased 52% or $5.1 million. The increase in gross
profit from Collotype was partially offset by the reduction in organic sales
and start-up costs incurred in the Company's new Batavia, Ohio facility during
the quarter.
-- Selling, general and administrative expenses increased due to
comparable expenses from Collotype.
-- Operating income increased 44% to $6.5 million from $4.5 million.
-- Interest expense increased $2.1 million due to increased debt incurred
to finance the Collotype acquisition.
-- Net income from continuing operations of $2.8 million was flat compared
to the prior year.
-- Earnings Per Share (EPS) from continuing operations decreased to 23
cents per diluted share from 28 cents due to lower organic earnings in North
America.
-- The Company repaid $7.7 million or 6% of long term debt due to strong
operating cash flows during the quarter.
-- The Company was awarded Miller Brewing's Supplier of the Year for an
unprecedented fourth time.
Frank Gerace, President and CEO of Multi-Color Corporation stated, "As
expected, our recently acquired international label business performed very
well during the quarter. However, in spite of significant sales increases
from most of our top ten customers, we experienced negative organic growth due
to lower orders from our largest customer. In addition, continued start-up
costs associated with our manufacturing expansion project had a negative
impact during the quarter. In summary, these three factors contributed to our
flat earnings year over year."
Fiscal Year 2009 First Quarter Earnings Conference Call and Webcast
The Company will hold a conference call on July 31, 2008 at 11:00 a.m.
(ET) to discuss the news release. For access to the conference call, please
dial 1-888-713-4217 (code 55685724) by 10:45 a.m. (ET). A replay of the
conference call will be available at 1:00 p.m. (ET) on July 31, 2008 until
midnight (ET) on August 7, 2008, by calling 1-888-286-8010 (code 62318039). In
addition, the call will be broadcast over the Internet and can be accessed
from a link on the Company's home page at www.multicolorcorp.com. Listeners
should go to the web site prior to the call to register and to download any
necessary audio software.
Participants may pre-register for the call at
https://www.theconferencingservice.com/prereg/key.process?key=PBDEX4GJJ (Due
to its length, this URL may need to be copied/pasted into your Internet
browser's address field. Remove the extra space if one exists.)
Pre-registrants will be issued a pin number to use when dialing into the live
call which will provide quick access to the conference by bypassing the
operator upon connection.
Safe Harbor Statement
The Company believes certain statements contained in this report that are
not historical facts constitute forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995, and are intended to
be covered by the safe harbors created by that Act. 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. Any forward-looking statement speaks 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 are 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 general economic and business conditions; the ability to consummate
and successfully integrate acquisitions; ability to manage foreign operations;
the success and financial condition of the Company's significant customers;
competition; acceptance of new product offerings; changes in business strategy
or plans; quality of management; the Company's ability to maintain an
effective system of internal control; availability, terms and development of
capital; cost and price changes; availability of raw materials; business
abilities and judgment of personnel; changes in, or the failure to comply
with, government regulations, legal proceedings and developments; risk
associated with significant leverage; increases in general interest rate
levels affecting the Company's interest costs; and terrorism and political
unrest. 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.
About Multi-Color (http://www.multicolorcorp.com)
Sharonville, Ohio based Multi-Color Corporation provides leadership in
Global Label Solutions through its two business units: North American
Business Unit and International Business Unit. Established in 1916,
Multi-Color has grown to support the world's most prominent brands including
leading producers of Health & Beauty, Food & Beverage, Personal Care,
Automotive and Household Brands. Multi-Color acquired Collotype Labels on
February 29, 2008. Collotype was established in 1903 in Adelaide, South
Australia and has grown to become the world's leading and most awarded
pressure sensitive Wine & Spirits label printer. Multi-Color is the world's
largest producer of in-mold labels and one of the largest producers of
pressure sensitive and heat transfer labels and a major manufacturer of
high-quality wet glue applied labels and shrink sleeves. Multi-Color has 14
manufacturing locations worldwide; 8 in the US, 5 in Australia and 1 in South
Africa.
For additional information on Multi-Color, please visit
http://www.multicolorcorp.com.

Multi-Color Corporation
Condensed Consolidated Statements of Income
(in 000's except per share data) Unaudited

Three Months Ended
June 30, June 30,
2008 2007

Revenues $79,450 $52,275
Cost of Goods Sold 64,480 42,403
Gross Profit 14,970 9,872
Gross Margin 19% 19%
Selling, General & Administrative 8,453 5,340
Operating Income 6,517 4,532

Other (Income) Expense (85) (102)
Interest Expense 2,139 66
Income from Continuing Operations 4,463 4,568
before Taxes
Provision for Taxes 1,626 1,708
Income from Continuing Operations 2,837 2,860
Income (Loss) from Discontinued (143) (53)
Operations, Net of Tax
Net Income $2,694 $2,807

Basic Earnings Per Share:
Income from Continuing Operations $0.23 $0.29
Income (Loss) from Discontinued Operations $(0.01) $(0.01)
Basic Earnings Per Share $0.22 $0.28

Diluted Earnings Per Share:
Income from Continuing Operations $0.23 $0.28
Income (Loss) from Discontinued Operations $(0.01) $(0.01)
Diluted Earnings Per Share $0.22 $0.27

Basic Shares Outstanding 12,111 9,990
Diluted Shares Outstanding 12,354 10,354

Selected Balance Sheet Information
(in 000's) Unaudited

June 30, March 31,
2008 2008

Current Assets $65,957 $72,228

Total Assets $316,806 $314,080

Current Liabilities $53,586 $53,711

Total Liabilities $187,727 $194,142

Stockholders' Equity $129,079 $119,938

Total Debt $125,056 $131,751

Certain prior year amounts have been reclassified to conform to current
year reporting.
SOURCE Multi-Color Corporation

Dawn H. Bertsche, Senior Vice President-Finance and Chief Financial Officer of
Multi-Color Corporation, +1-513-345-1108