Multi-Color Corporation Reports Unaudited Consolidated Earnings Results for the Fourth Quarter and Full Year Ended March 31, 2018; Provides Earnings Guidance for the Fiscal Year 2019
For the year, the company reported net revenues of USD 1,300,912,000 compared to USD 923,295,000 a year ago. Operating income was USD 115,580,000 compared to USD 110,966,000 a year ago. Income before income taxes was USD 53,702,000 compared to USD 88,213,000 a year ago. Net income attributable to the company was USD 71,951,000 or USD 3.87 per diluted share compared to USD 60,996,000 or USD 3.58 per diluted share a year ago. Core operating income, (non-GAAP) was USD 143,184,000 compared to USD 113,350,000 a year ago. Core net income, (non-GAAP) was USD 69,904,000 or USD 3.76 per diluted share compared to USD 61,451,000 or USD 3.61 per diluted share a year ago. Core EBITDA, (non-GAAP) was USD 216,106,000 compared to USD 161,255,000 a year ago. Core income before income taxes, (non-GAAP) was USD 94,906,000 compared to USD 89,020,000 a year ago. Free cash flow for fiscal 2018 was negative USD 3.2 million compared to USD 61 million in the prior year primarily due to acquisitions and structuring-related costs of USD 34 million, pre-acquisition financing costs of USD 5 million, tax payments and other working capital requirements of USD 11 million and an increase in capital expenditures of USD 14 million. Capital expenditures were USD 60.1 million compared to USD 46.1 million in the prior year. Net debt at March 31, 2018 was USD 1.5 billion.
Free cash flow is expected to be circa USD 100 million in fiscal year 2019 (with amortization over 2% of sales). Primary use of free cash flow in fiscal year 2019 will be to reduce debt. The company expects its annual effective tax rate on core net income to be approximately 27% in fiscal 2019. The projected amount of capital expenditures for fiscal 2019 is approximately USD 90 million. In fiscal year 2018, the company focused on gross margin improvement. Gross margin of 20% for the March quarter is what the company is seeking to maintain for fiscal year 2019, but not without its challenges. The company needs to improve gross margin performance to maintain 20% given that fiscal year 2018 acquisitions dilute gross margins for a full year in fiscal 2019. The company forecasts core EPS for fiscal 2019 to be in the USD 4.20 to USD 4.50 range.