Multi Packaging Solutions Announces First Quarter Results

Multi Packaging Solutions International Limited (NYSE:MPSX), ("MPS" or the "Company"), a global leader in value-added print and packaging solutions for the branded consumer, healthcare, and multi-media markets, today announced results for its first quarter ended September 30, 2016.

1Q FY 2017 vs. 1Q FY 2016 :
  • GAAP sales of $407.8 million vs. $459.1 million
    • Negative foreign exchange impact of $17.4 million
  • GAAP operating income of $27.7 million vs. $40.7 million
  • GAAP net income attributable to MPS of $13.3 million vs. $13.0 million
  • GAAP net income attributable to MPS of $0.17 per share vs. $0.21 per share
    • The impact of the additional shares outstanding associated with the IPO results in a comparative EPS of $0.17 in both periods.
  • Non GAAP net income attributable to MPS of $13.1 million vs. $18.1 million
  • Non GAAP net income attributable to MPS per share of $0.17 per share vs. $0.29 per share
    • The impact of the additional shares outstanding associated with the IPO results in a comparative Non GAAP EPS of $0.17 and $0.23 in 1Q FY 2017 and 1Q FY 2016, respectively.
  • Adjusted EBITDA of $60.1 million vs. $77.2 million
    • Negative foreign exchange impact of $2.5 million
  • Adjusted EBITDA margin of 14.7% vs 16.8%

Recent Activity
  • Completed debt refinancing transaction in October 2016
    • Redeemed $200 million 8.5% Senior Notes
    • Raised $220 million new incremental Term Loan D
    • Repriced outstanding Euro Tranche B Term Loans and Sterling Tranche B Term Loans
    • Upsized Revolving Credit Facility
  • Completed two acquisitions in second quarter with combined trailing 12 months revenue of $25 million, one in the European label market, and one in the North American transaction card market
  • Previously announced relocation of business of the Stuttgart, Germany facility, and the closure of the Bradford, United Kingdom plant. Announces closure of Louisville, Kentucky media plant
  • UK Field Group Pension Plan cash deficit payments completed in August 2016

Marc Shore, Chief Executive Officer, commented, "As we expected, the first quarter was challenging due to the headwinds that were previously discussed: continued negative impact of foreign exchange rates, the discontinuation of a specific toy program, the exit from the tobacco business and the continued decline in multimedia sales. Furthermore, we continued to struggle at four facilities, and some of our core customers had weaker sales than budgeted. As previously noted, we will cycle through all of these challenges by the end of our fiscal second quarter, except for foreign exchange and media declines.

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