Multi-Color Corporation (NASDAQ: LABL) reports that its first quarter revenues topped the $100 million mark. The favorable gain was attributed to acquisitions and startups that took place last year.

“Net revenues reached $100 million for the first time in the first quarter. Higher gross margin and lower SG&A as a percentage of net revenues continued to drive increased earnings per share with adjusted diluted EPS up 65 percent over the prior year quarter,” says Nigel Vinecombe, president.

First quarter highlights include:

• Net revenues increased 36 percent to $100.6 million from $74.1 million compared to the three months ended June 30, 2010. Net revenues increased 29 percent or $21.8 million in the three months ending June 30, 2011 due to acquisitions and start-ups that occurred after June 30, 2010. The remaining increase was due to a 5 percent favorable impact of foreign exchange rates primarily driven by the strengthening Australian dollar, a 1 percent increase in sales volumes and a 1 percent favorable pricing impact.

• Gross profit increased $7.2 million or 48 percent compared with Q1 2010. Acquisitions and startups occurring after June 30, 2010, contributed 30 percent to the gross profit increase. The remaining 18 percent increase was due to higher sales volumes, favorable pricing impact, favorable foreign exchange rates and improved operating efficiencies. Gross margins increased to 22 percent from 20 percent of sales revenues compared to the previous first quarter.

• Selling, general and administrative (SG&A) expenses decreased 4 percent compared to the three months ended June 30, 2010, due primarily to reductions in headcount and other cost decreases partially offset by new acquisitions and the impact of foreign exchange rates.

• Operating income increased $7.6 million. Adjusted for special items, operating income increased 70 percent to $14.3 million from $8.4 million. Acquisitions and start-ups occurring after June 30, 2010 contributed 31 percent to the adjusted operating income increase. The remaining increase is due to higher sales volumes, favorable pricing impact, improved operating efficiencies, other cost decreases and the impact of favorable foreign exchange rates.

• Diluted earnings per share increased to $0.66 cents per diluted share from $0.30 cents. Excluding the impact of the special items noted below, adjusted EPS increased 65 percent to $0.66 cents per diluted share from $0.40 cents. Net income attributable to Multi-Color Corporation increased to $8.9 million from $3.7 million in the prior year quarter. Adjusted for special items, net income attributable to Multi-Color Corporation increased to $9 million from $5 million in the prior year quarter.

• On April 1, Multi-Color Corporation acquired 100 percent of the shares in La Cromografica in Italy for €8.3 million including net debt assumed. The seller received 100 percent of the proceeds in the form of cash. On May 2, 2011, the Company acquired a 70 percent ownership in two label operations, one in Santiago, Chile and the other in Mendoza, Argentina for an initial investment by Multi-Color of $3.7 million.