GuruFocus Premium Membership

Serving Intelligent Investors since 2004. Only 96 cents a day.

Free Trial

Free 7-day Trial
All Articles and Columns »

MultiColor Corp. Reports Operating Results (10-Q)

February 11, 2013 | About:
10qk

10qk

18 followers
MultiColor Corp. (LABL) filed Quarterly Report for the period ended 2012-12-31.

Multi-color Corporation has a market cap of $385 million; its shares were traded at around $23.87 with a P/E ratio of 18.2 and P/S ratio of 0.6. The dividend yield of Multi-color Corporation stocks is 0.9%. Multi-color Corporation had an annual average earning growth of 10.7% over the past 10 years. GuruFocus rated Multi-color Corporation the business predictability rank of 3-star.

Highlight of Business Operations:

Net revenues increased 7% to $156,950 from $146,400 compared to the three months ended December 31, 2011. Net revenues increased 4% or $5,807 due to acquisitions occurring after December 31, 2011. In addition, net revenues increased by 3% due to higher North American sales volumes primarily due to higher sales to our largest customer.

Gross profit increased 29% or $6,893 compared to the prior year quarter due primarily to acquisitions occurring after the beginning of the prior year period and higher North American sales volumes in the current year quarter. Gross margins increased from 16% to 19% of net revenues in the current year quarter due primarily to improvements in operations in North and Latin America related to the completion of most of the integration of the York acquisition.

Net revenues increased 41% to $491,830 from $349,661 compared to the nine months ended December 31, 2011. Net revenues increased 39% or $134,318 due to acquisitions occurring after the beginning of the prior year period. Net revenues increased by 3% compared to the prior year due to higher sales volumes and 1% due to a favorable impact of pricing and sales mix. Net revenues decreased 2% compared to the prior year due to the unfavorable impact of foreign exchange rates primarily driven by depreciation in the Australian dollar and the Euro at the beginning of fiscal 2013.

Cost of revenues increased 41% or $117,179 compared to the prior year due primarily to acquisitions that occurred after the beginning of the prior year period. Included in the impact of the acquisition increase is a charge of $458 for an adjustment related to the step-up of finished goods and work-in-process inventory in the purchase price accounting for Labelgraphics. The cost of revenues in the prior year was impacted by a one-time charge of $1,530 for an adjustment related to the step-up of finished goods and work-in-process inventory in the purchase price accounting for York. The cost of revenues was also impacted by the unfavorable impact of foreign exchange rates and integration inefficiencies in North and Latin America.

Selling, general and administrative (SG&A) expenses increased $7,337 compared to the prior year due primarily to the impact of acquisitions occurring after the beginning of the prior year period. In addition, SG&A expenses increased due to $1,531 of costs related to the consolidation and relocation of plants partially offset by lower integration expenses related to the York acquisition and the impact of foreign exchange rates in the current year. SG&A expenses, as a percentage of net revenues, decreased from 10% to 9% compared to the prior year.

Read the The complete Report

About the author:

10qk
GuruFocus - Stock Picks and Market Insight of Gurus

Rating: 0.0/5 (0 votes)

Comments

Please leave your comment:


Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK