MultiColor Corp. Reports Operating Results (10-Q)
Multicolor Corp. has a market cap of $226.3 million; its shares were traded at around $18.37 with a P/E ratio of 13.1 and P/S ratio of 0.8. The dividend yield of Multicolor Corp. stocks is 1.2%. Multicolor Corp. had an annual average earning growth of 7.7% over the past 10 years. GuruFocus rated Multicolor Corp. the business predictability rank of 2.5-star.
Highlight of Business Operations: The First Amendment amended the Credit Agreement to (i) permit the acquisition of CentroStampa S.p.A. by the Company; (ii) increase the Aggregate U.S. Revolving Commitment (as defined in the First Amendment) by USD $20,000 thereby increasing the total borrowing capacity from USD $180,000 to USD $200,000, with the potential to increase total borrowing capacity by USD $50,000; (iii) allow up to US $40,000 of U.S. revolving loans to be advanced in alternative currencies; (iv) extend the maturity date of the Credit Facilities (as defined in the Credit Agreement) to April 1, 2014; (v) increase the maximum leverage ratio to 3.75 to 1.00 with scheduled step-downs; and (vi) implement a change in interest rate margins over the applicable Eurocurrency or Australian BBSY rate ranging from 1.75% to 3.25% based on the leverage ratio. The Company incurred $1,532 of debt issuance costs related to the debt modification which are being deferred and amortized over the life of the amended Credit Facility.
During fiscal 2010, the Company relocated its corporate headquarters from Sharonville, Ohio to its Batavia, Ohio facility in order to consolidate certain employees into existing owned office space. The lease for the Sharonville, Ohio location expires in April 2017. In connection with the relocation, the Company recorded a charge of $1,214 for remaining lease obligations and other costs related to its Sharonville facility. In the three months ending December 31, 2010, the Company entered into a contract to sublease the remaining unoccupied space and recorded an adjustment of $258 to the initial charge to incorporate the impact of the additional sublease income.
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.
Through the nine months ended December 31, 2010, net cash provided by operating activities was $24,398 compared to $23,664 in the same period of the prior year. The increase in cash flow is primarily due to cash generated from earnings, collection of accounts receivable and lower inventory balances, partially offset by higher tax payments in fiscal 2011 and $1,272 in acquisition expenditures. The consolidated days sales outstanding (DSO) at December 31, 2010 is approximately 52 days.
Through the nine months ended December 31, 2010, net cash used in investing activities was $52,778 as compared to net cash used of $3,682 in the same period of the prior year. The increase in net cash used in investing activities is primarily due to the acquisition of CentroStampa and Monroe Etiquette. Capital expenditures in the nine months ended December 31, 2010 were $10,382 and were partially offset by proceeds from the sale of plant and equipment of $809. The majority of these expenditures were to purchase new presses in the Australian, South African and North American operations. Cash used in investing activities in the prior year included capital expenditures of $4,659. The projected amount of capital expenditures for fiscal 2011 is $13,000.
Through the nine months ended December 31, 2010, net cash provided by financing activities was $31,304 as compared to net cash used in financing activities of $18,796 in the prior year. During the nine months ended December 31, 2010, we had net debt additions of $34,744 compared to net debt payments of $16,983 in the prior year. The increase in net debt was due to an increase in borr
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