Multi-Color CEO in high spirits, expects "solid" Q4

Will Atkinson | Jan 25, 2008 1:42pm EST | Comment

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Multi-Color Corp. (Nasdaq: LABL) CEO Frank Gerace is excited about the maker of decorative label’s recently announced acquisition of the Australia-based label maker Collotype International Holdings. Gerace made the comments during a midday conference call.

“It’s been our stated mission from day one to become a premier global supplier,” Gerace said. “With the acquisition of Collotype, I couldn’t ask for a more quality partner in our global strategy.”

Multi-Color paid $170 million in cash and stock for the Australian firm, which supplies labels to the wine and spirits industry. During the fall, Multi-Color invested in an expanded manufacturing facility in Union Township, Ohio.

“To have three presses in the new facility within a course of a week or two producing sellable product is nothing less than spectacular,” the chief executive said. “We have the people and talent in place to take Multi-Color to the next level.”

Gerace said Multi-Color, which supplies labels to the Miller Brewing Co., expects positive fourth-quarter results. He said there has been a significant increase in new orders over the last two weeks.

“I think last week, the number of orders entered in our system was an all-time record high since I’ve been here,” Gerace said. “I expect that we’re going to see a solid fourth quarter.”

Before the opening, Multi-Color reported third-quarter net income of $2.12 million, or $0.21 per share, up 39% from $1.52 million, or $0.15 per share, a year earlier. Excluding acquisition-related and other charges, Multi-Color’s income from continuing operations rose to $2.8 million, or $0.27 per share, from $2.2 million, or $0.22 per share during the year-ago period.

“There was a general pullback in the third quarter,” Gerace said.

The pullback was related to some customer’s end-of-the-year inventory adjustments, he said.

Quarterly revenue rose to $48.26 million, up 3% from $46.95 million during the same period of 2006. Analysts, on average, were expecting $52 million in revenue. Selling, general and administrative expenses fell to $4.8 million, from $5 million during the year-ago third quarter.

In midday trading, LABL shares are up 0.53%, or $0.13, at $24.44. Over the last 52 weeks, shares have ranged from $18.87 to $29.61.