MultiColor Corp. (NASDAQ:LABL) filed Quarterly Report for the period ended 2010-06-30.
Multicolor Corp. has a market cap of $158.91 million; its shares were traded at around $12.86 with a P/E ratio of 11.91 and P/S ratio of 0.57. The dividend yield of Multicolor Corp. stocks is 1.56%. Multicolor Corp. had an annual average earning growth of 7.2% over the past 10 years. GuruFocus rated Multicolor Corp. the business predictability rank of 2-star.LABL is in the portfolios of Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:In January 2009, we announced plans to consolidate our heat transfer label (HTL) manufacturing business located in Framingham, Massachusetts into our other existing facilities. The transition began immediately with final plant closure occurring in the second quarter of fiscal 2010. In connection with the closure of the Framingham facility, the Company recorded a total pre-tax charge of $2,553 during the fourth quarter period ending March 31, 2009, consisting of $1,407 in cash charges for employee severance and other termination benefits related to 62 associates and $1,146 in non-cash charges related to asset impairments.
The First Amendment amended the Credit Agreement to (i) permit the acquisition of Guidotti CentroStampa S.p.A. by the Company; (ii) increase the Aggregate U.S. Revolving Commitment (as defined in the First Amendment) by USD $20 million thereby increasing the total borrowing capacity from USD $180 million to USD $200 million (with a $40 million multi-currency tranche), with the potential to increase total borrowing capacity by USD $50 million; (iii) extend the maturity date of the Credit Facilities (as defined in the Credit Agreement) to April 1, 2014; (iv) increase the maximum leverage ratio to 3.75 to 1.00 with scheduled step-downs; and (v) implement a change in interest rate margins over the applicable Eurocurrency or Australian BBSY rate ranging from 3.25% to 1.75% based on the leverage ratio.
Through the three months ended June 30, 2010, net cash used in investing activities was $4,552 as compared to net cash used of $915 in the same period of the prior year. Capital expenditures in the three months ended June 30, 2010 were $4,354 and were partially offset by proceeds from the sale of plant and equipment of $253. The majority of these expenditures were to purchase new presses in the Australian, South African and Napa operations. The Company also spent $535 in acquisition expenditures in the three months ended June 30, 2010. Cash used in investing activities in the prior year included capital expenditures of $1,162. The projected amount of capital expenditures for 2011 is $13.9 million.
Through the three months ended June 30, 2010, net cash used in financing activities was $3,377 as compared to $6,685 in the prior year. During the three months ended June 30, 2010, net debt payments were $2,527 compared to $6,068 in the prior year. The decrease in debt payments was due to the higher capital expenditures to purchase new presses.
On February 29, 2008 and in connection with the Collotype acquisition, the Company executed a five-year $200 million credit agreement with a consortium of bank lenders (Credit Facility) that expires in 2013. The Credit Facility contains an election to increase the facility by up to an additional $50 million and the Company terminated its previous $50 million credit facility. At June 30, 2010, the aggregate principal amount of $177.5 million is available under the Credit Facility through: (i) a $110 million five-year revolving credit facility (U.S. Revolving Credit Facility); (ii) the Australian dollar equivalent of a $40 million five-year revolving credit facility (Australian Sub-Facility); and (iii) a $27.5 million term loan facility (Term Loan Facility), which amortizes $10 million per year.
Available borrowings under the Credit Facility at June 30, 2010 consisted of $65,740 under the U.S. Revolving Credit Facility and $28,470 under the Australian Sub-Facility.
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