Multi-Color Corp. (NASDAQ:LABL) Q2 2018 Earnings Conference Call - Final Transcript
Nov 07, 2017 • 10:00 am ET
Good day, ladies and gentlemen, and welcome to the Second Quarter Fiscal Year 2018 Multi-Color Corporation Conference Call. My name is Irma, and I will be your operator for today. At this time all participants are in listen-only mode. We will conduct a question-and-answer session during this conference. (Operator Instructions) As a reminder, this call is being recorded for replay purposes.
And now, I'd like to turn the call over to Sharon Birkett, Vice President and Chief Financial Officer. Please proceed, ma'am.
Thank you, Irma. Welcome to Multi-Color Corporation's fiscal 2018 second quarter conference call and webcast for the period ending September 30, 2017. We are also broadcasting this live on the Internet, accessible through the Multi-Color website at www.mcclabel.com, on our Investor Relations page. I'm Sharon Birkett, Vice President and CFO of Multi-Color. I'll be leading today's call and I'm joined by Nigel Vinecombe, our Executive Chairman. I will begin with an overview of how our company performed this period and provide a detailed analysis of our financial results. Nigel will conclude his final comments, and then we'll take your questions.
(Forward-Looking Cautionary Statements)
For those of you who are listening and viewing our webcast via the Internet, please take a look at slide number two, net revenues. In the second quarter of fiscal 2018, net revenues increased to 10% to $256 million compared to $232.1 million in the prior year quarter. Acquisitions occurring after the beginning of the second quarter of fiscal 2017 accounted for a 4% increase in revenues. Organic revenues increased 6% and foreign exchange rate increased revenue by 1%.
On July 3, the company sold its Southeast Asian durables business, which resulted in a 1% decrease in revenues. In addition, year-to-date net revenues increased 6% to $498.5 million compared to $468.6 million in the six months ended September 30, 2017. Acquisitions occurring after the beginning of fiscal 2017 accounted for a 3% increase in revenues. Increased revenues in North America and Latin America contributed to an organic revenue increase of 4%. The sale of the Southeast Asian durables business during the current quarter, resulted in a 1% decrease in revenues.
Please turn to slide number three, gross profit margin. Core gross profit increased 4% to $2.1 million compared to the prior year quarter. Acquisitions occurring after the beginning of the second quarter of fiscal 2017 contributed 2% or $1 million to core gross profit. Organic gross profit increased 2% or $1.1 million. The sale of the Southeast Asian durables business accounted for 1% or $0.6 million decrease in gross profit compared to the prior year quarter. The remaining increase of 1% or $0.6 million related to the favorable impact of foreign exchange. Core gross margins were 20.4% of net revenues for the current year quarter compared to 21.6% in the prior year quarter.
For the six months ended September 30, 2017, core gross profit decreased 1% or $0.5 million compared to the prior year period. Acquisitions occurring after the beginning of fiscal 2017 contributed 2% or