Multi-Color announced earnings results for the third quarter and nine months ended December 31, 2017. For the quarter, the company reported net revenues of $352,699,000 compared to $210,658,000 for the same period a year ago. Operating income was $15,022,000 compared to $20,416,000 for the same period a year ago. Loss before income taxes was $16,304,000 compared to Income before income taxes of $15,400,000 for the same period a year ago. Net income attributable to the company was $20,532,000 compared to $12,126,000 for the same period a year ago. Diluted earnings per common share were $1.06 compared to $0.71 for the same period a year ago. Core operating income, (non-GAAP) was $32,806,000 compared to $21,181,000 for the same period a year ago. Core EBITDA, (non-GAAP) was $54,247,000 compared to $32,875,000 for the same period a year ago. Core income before income taxes, (non-GAAP) was $18,400,000 compared to $15,278,000 for the same period a year ago. Core net income (non-GAAP) was $13,833,000 or $0.71 per diluted share compared to $11,894,000 or $0.70 per diluted share for the same period a year ago. Free cash flow for the third quarter of fiscal 2018 consisting of cash provided by operating activities less capital expenditures was negative $21.1 million compared to $6.2 million in the prior year quarter, primarily due to acquisition and integration costs of $12 million, preacquisition financing costs of $5 million, tax payments and other working capital requirements of $8 million and capital expenditure increases of $2 million. Capital expenditures were $17.9 million compared to $15.9 million in the prior year quarter. Core operating income increased 55% or $11.6 million compared to the prior year quarter. Core net income increased 16% or $1.9 million to $13.8 million compared to the prior year quarter. Core net income increased 5% or $2.1 million to $46.8 million compared to the prior year-to-date period. Core EBITDA increased 65% to $54.2 million in the current year quarter.

For the first nine months, the company announced net revenues of $851,173,000 compared to $679,292,000 for the same period a year ago. Operating income was $67,335,000 compared to $79,858,000 for the same period a year ago. Income before income taxes was $24,482,000 compared to $62,425,000 for the same period a year ago. Net income attributable to the company was $49,828,000 compared to $44,274,000 for the same period a year ago. Diluted earnings per common share were $2.78 compared to $2.60 for the same period a year ago. Core operating income, (non-GAAP) was $90,689,000 compared to $81,419,000 for the same period a year ago. Core EBITDA, (non-GAAP) was $136,971,000 compared to $117,107,000 for the same period a year ago. Core income before income taxes, (non-GAAP) was $62,257,000 compared to $63,099,000 for the same period a year ago. Core net income (non-GAAP) was $46,828,000 or $2.61 per diluted share compared to $44,756,000 or $2.63 per diluted share for the same period a year ago. Free cash flow was negative $2.4 million compared to $37.3 million in the prior year period primarily due to acquisition and integration costs of $17 million year-to-date, preacquisition financing costs of $5 million, tax payments and other working capital requirements of $8 million and capital expenditure increases of $10 million. Capital expenditures were $44.1 million compared to $34.1 million in the prior year period. Net debt as of December 31, 2017, was $1.5 billion. Core operating income increased 11% or $9.3 million compared to the prior year-to-date period. Core EPS decreased 1% to $2.61 per diluted share from $2.63 in the prior year-to-date period. Core EBITDA increased 17% to $137 million for the 9 months ended December 31, 2017, compared to the prior year period.

The projected amount of capital expenditures for fiscal 2018 is approximately $66 million.

The company provided effective tax rate guidance for the full year of fiscal 2018. The company expects its annual effective tax rate on core net income to be approximately 27% in fiscal 2018. In addition, the company believes that fiscal year 2019 offers the opportunity for continued decent organic growth in the 3% to 5% range, and that the company will experience better profit value from this growth that the company has in 2018.