Multi-Color Corp. (NASDAQ:LABL) Q3 2018 Earnings Conference Call - Final Transcript
Feb 06, 2018 • 10:00 am ET
Good day, ladies and gentlemen, and welcome to the Q3 2018 Multi-Color Corp Earnings Conference Call. At this time all participants are in a listen only mode later we will conduct a question and answers session and instructions will follow at that time. [Operator Instructions] As a reminder, this conference call is being recorded.
I'd now like to introduce your host for today's conference Ms. Sharon Birkett, Vice President and Chief Financial Officer. Ma'am, you may begin.
Sharon E. Birkett
Thank you, Jimmy. Welcome to Multi-Color Corporation's fiscal 2018 third quarter conference call and webcast for the period ending December 31, 2017. We're 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 will take your questions.
Before we discuss our results, I want to call your attention to the Safe Harbor statement that was displayed on the registration page you viewed right after you logged on to the webcast, and remind you that in accordance with the Private Securities Litigation Reform Act of 1995, this presentation will contain some forward-looking statements that involve both known and unknown risks that may affect the outcome of our results. This Safe Harbor statement is also included in our earnings release and in our filings with the SEC. 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 third quarter of fiscal 2018, net revenues increased 67% to 352.7 million, compared with 210.7 million in the prior year quarter. Acquisitions occurring after the beginning of the third quarter of fiscal 2017 accounted for a 57% increase in revenues, net of the sale of the Southeast Asian Durables business. Organic revenues increased 7% and foreign exchange rates increased revenue by 3%. In addition, year-to-date net revenues increased 25% to 851.2 million, compared with 679.3 million in the nine months ended December 31, 2016.
Acquisitions occurring after the beginning of fiscal 2017 accounted for a 20% increase in revenues net of divestitures. Increased revenues in North America and Europe contributed to an organic revenue increase of 5% and foreign exchange rates increased revenues by less than 1%. Please to slide number three, gross profit and margin. Core gross profit increased 51% or 21.1 million compared to the prior year quarter. Acquisitions occurring after the beginning of the third quarter of fiscal 2017 contributed 34% or 14.1 million to core gross profit net of divestitures. Organic gross profit increased 14% or 6 million. The remaining increase of 2% or 1 million related to foreign exchange. Core gross margins was 17.7% of net revenues for the current year quarter, compared to 19.6%