CCL Industries Reports Record Quarterly Results

Published: June 05, 2015

TORONTO, ON | CCL Industries Inc., a world supplier of specialty label and packaging solutions for global corporations, small businesses, and consumers, has reported 2015 first quarter results.

• Record quarterly adjusted basic earnings per Class B share of $1.99, up 27.6%,?basic earnings per Class B share of $1.97, up 27.9%

• Robust operating income improvement in all Segments totaled 32.2%

• Sales increased 15.8%, supported by organic sales growth of 5.5%

• Board approves 2015 second quarter dividend of $0.375 per Class B share

Sales for the first quarter of 2015 increased 15.8% to $705.9 million, compared to $609.7 million for the first quarter of 2014, with 5.5% organic growth, 4.3% positive currency translation impact and 6.0% from the seven acquisitions completed over the previous fourteen months.

Operating income for the first quarter of 2015 was $117.1 million, an increase of 32.2% compared to $88.6 million for the comparable quarter of 2014. Excluding the impact of currency translation operating income improved 28.3%.

Restructuring and other items were $0.9 million for the first quarter of 2015, largely due to severance costs associated with the September 2014 acquisition of Bandfix A.G. The 2014 first quarter included restructuring and other items of $0.9 million primarily related to the Sancoa acquisition.

Net earnings improved 29.5% to $68.1 million for the 2015 first quarter compared to $52.6 million for the 2014 first quarter. Basic and adjusted basic earnings per Class B share were a record $1.97 and $1.99, respectively, compared to basic and adjusted basic earnings per Class B share of $1.54 and $1.56 in the prior year first quarter.

Geoffrey T. Martin, CCL president and CEO, says, "Performance for the first quarter of 2015 was stronger than expected, with all Segments delivering improved sales and profitability resulting in record quarterly earnings per share. The benefit from foreign currency translation totaled $0.08 per share with the stronger U.S. dollar somewhat offset by the weaker euro and real. Foreign currency transaction challenges continued in certain international markets but at reduced levels from the 2014 fourth quarter. Solid organic sales growth in all Segments, including Avery, totaled 5.5% globally."

Martin adds, "We continued to execute our growth initiatives, acquiring pc/nametag and INT America as well as announcing a multi-million dollar greenfield expansion plan for CCL Design in Mexico this quarter and planning our first operation in Korea. Our balance sheet remains in outstanding condition with the Company's leverage ratio coming in at 1.1 times EBITDA and undrawn credit facilities at $250 million leaving considerable capacity to execute growth plans for 2015 and beyond. Given the Company's expectation of sustained strong free cash flow, the board of directors declared a continuation of the $0.375 per Class B non-voting share and $0.3625 per Class A voting share dividend, payable to shareholders of record at the close of business on June 16, 2015, to be paid on June 30, 2015."

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