MultiColor Corp. (LABL, Financial) filed Quarterly Report for the period ended 2011-12-31.
Multicolor Corp. has a market cap of $369.5 million; its shares were traded at around $21.91 with a P/E ratio of 11.4 and P/S ratio of 1.1. The dividend yield of Multicolor Corp. stocks is 0.9%. Multicolor Corp. had an annual average earning growth of 7.3% over the past 10 years. GuruFocus rated Multicolor Corp. the business predictability rank of 2.5-star.
Gross profit increased 45% or $7,347 due primarily to acquisitions and start-ups that occurred after December 31, 2010. Acquisitions and start-ups contributed 36% to the gross profit increase, primarily related to the York Label Group acquisition. The remaining 9% increase was due to higher sales volumes and favorable sales mix impacts in the current quarter. Gross margins decreased from 19% to 16% of sales revenues compared to the prior year quarter due primarily to lower revenues and operational inefficiencies in the new Chilean operations acquired with the York Label Group and the impact of the adjustment related to the step-up of finished goods and work-in-process inventory in the purchase price accounting.
Selling, general and administrative (SG&A) expenses increased $8,509 compared to the prior year quarter due primarily to the impact of new acquisitions and integration expenses related to the acquisition of York Label Group. The amount of SG&A expenses in the three months ended December 31, 2011 attributable to acquisitions and start-ups occurring after December 31, 2010 were $4,570. The Company incurred $3,679 of integration-related expenses related to the acquisition of the York Label Group. The integration expense consisted primarily of severance and other termination benefits and professional fees. The remaining increase in SG&A expenses is due to higher incentive compensation expense partially offset by other cost decreases. SG&A expenses, as a percent of sales, increased to 11% in the three months ending December 31, 2011 from 10% in the prior year quarter.
Net Revenues increased 41% to $349,661 from $248,149 compared to the nine months ended December 31, 2010. Of the net revenue increase, $88,425 or 36% in the nine months ended December 31, 2011 is due to acquisitions and start-ups that occurred after December 31, 2010. Of this acquisition-related revenue increase, $52,849 is attributable to the acquisition of the York Label Group. In addition, net revenues increased due to a 3% favorable foreign exchange impact, primarily driven by the strengthening of the Australian dollar and Euro, a 1% increase in sales volumes and a 1% favorable impact of pricing and sales mix.
Gross profit increased 35% or $17,218 due primarily to acquisitions and start-ups that occurred after December 31, 2010. Acquisitions and start-ups contributed 23% to the gross profit increase, primarily related to the York Label Group acquisition. The remaining 12% increase was due to the impact of foreign exchange rates, higher sales volumes and favorable pricing and sales mix impacts in the current year. Gross margins decreased from 20% to 19% of sales revenues compared to the prior year due primarily to operational inefficiencies and high costs in the new Chilean operations acquired with the York Label Group and the impact of the adjustment related to the step-up of finished goods and work-in-process inventory in the purchase accounting.
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Multicolor Corp. has a market cap of $369.5 million; its shares were traded at around $21.91 with a P/E ratio of 11.4 and P/S ratio of 1.1. The dividend yield of Multicolor Corp. stocks is 0.9%. Multicolor Corp. had an annual average earning growth of 7.3% over the past 10 years. GuruFocus rated Multicolor Corp. the business predictability rank of 2.5-star.
Highlight of Business Operations:
Net Revenues increased 76% to $146,400 from $83,379 compared to the three months ended December 31, 2010. Net revenues increased 69% or $57,721 in the three months ended December 31, 2011 due to acquisitions and start-ups that occurred after December 31, 2010. Of this acquisition-related revenue increase, $52,849 is attributable to the acquisition of the York Label Group. In addition, net revenues increased due to a 5% increase in sales volumes, primarily in North America and a 2% favorable impact of pricing and sales mix.Gross profit increased 45% or $7,347 due primarily to acquisitions and start-ups that occurred after December 31, 2010. Acquisitions and start-ups contributed 36% to the gross profit increase, primarily related to the York Label Group acquisition. The remaining 9% increase was due to higher sales volumes and favorable sales mix impacts in the current quarter. Gross margins decreased from 19% to 16% of sales revenues compared to the prior year quarter due primarily to lower revenues and operational inefficiencies in the new Chilean operations acquired with the York Label Group and the impact of the adjustment related to the step-up of finished goods and work-in-process inventory in the purchase price accounting.
Selling, general and administrative (SG&A) expenses increased $8,509 compared to the prior year quarter due primarily to the impact of new acquisitions and integration expenses related to the acquisition of York Label Group. The amount of SG&A expenses in the three months ended December 31, 2011 attributable to acquisitions and start-ups occurring after December 31, 2010 were $4,570. The Company incurred $3,679 of integration-related expenses related to the acquisition of the York Label Group. The integration expense consisted primarily of severance and other termination benefits and professional fees. The remaining increase in SG&A expenses is due to higher incentive compensation expense partially offset by other cost decreases. SG&A expenses, as a percent of sales, increased to 11% in the three months ending December 31, 2011 from 10% in the prior year quarter.
Net Revenues increased 41% to $349,661 from $248,149 compared to the nine months ended December 31, 2010. Of the net revenue increase, $88,425 or 36% in the nine months ended December 31, 2011 is due to acquisitions and start-ups that occurred after December 31, 2010. Of this acquisition-related revenue increase, $52,849 is attributable to the acquisition of the York Label Group. In addition, net revenues increased due to a 3% favorable foreign exchange impact, primarily driven by the strengthening of the Australian dollar and Euro, a 1% increase in sales volumes and a 1% favorable impact of pricing and sales mix.
Gross profit increased 35% or $17,218 due primarily to acquisitions and start-ups that occurred after December 31, 2010. Acquisitions and start-ups contributed 23% to the gross profit increase, primarily related to the York Label Group acquisition. The remaining 12% increase was due to the impact of foreign exchange rates, higher sales volumes and favorable pricing and sales mix impacts in the current year. Gross margins decreased from 20% to 19% of sales revenues compared to the prior year due primarily to operational inefficiencies and high costs in the new Chilean operations acquired with the York Label Group and the impact of the adjustment related to the step-up of finished goods and work-in-process inventory in the purchase accounting.
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