X-Rite, Incorporated today announced its financial results for the fourth quarter and full fiscal year ended January 1, 2011. The Company's results reflect broad market strength across all regions and indicate growing success of the Company's go to market initiatives to bring new products and services to an expanding marketplace.
- Fourth quarter 2010 net sales of $59.0 million, up 17.8 percent from the fourth quarter 2009
- Fourth quarter 2010 operating income of $9.0 million, up $7.5 million from the fourth quarter 2009
- Fourth quarter 2010 fully diluted earnings per share of $0.05 per share, compared to negligible earnings per share for the fourth quarter 2009
- Fourth quarter adjusted EBITDA of $15.0 million, up 18.4 percent from the fourth quarter 2009. Adjusted EBITDA was 25.5 percent of net sales in the fourth quarter 2010 versus 25.3 percent of net sales in the fourth quarter 2009
- Strong year to date cash flow before financing of $31.4 million or 14.1 percent of sales
- Reduced debt by $10.8 million in the fourth quarter, and $47.0 million in 2010, including the pay off of the Second Lien Credit Facility in September 2010
Reported net sales for the fourth quarter were $59.0 million, a 17.8 percent increase versus the prior year. Three month earnings per fully diluted share in the quarter were $0.05 per share. The Company's net sales for the full year were $222.7 million, an increase of 16.2 percent versus prior year net sales of $191.7 million. Twelve month earnings per fully diluted share were $0.04 compared to a loss of $(0.33) per share for 2009. The Company's sales for the year increased in all core product lines and geographic regions. Leading year-over-year growth were the Company's Industrial, Imaging and Media, and Standards product lines which increased by 22.8, 18.3, and 16.0 percent, respectively. For the year, the Company experienced growth in all regions of the world, including increases in Asia Pacific, Europe and the Americas of 21.1, 18.1, and 11.7 percent, respectively, versus 2009.
Thomas J. Vacchiano Jr., the Company's Chief Executive Officer, stated, "The strong fourth quarter sales, operating performance and financial results capped a very solid fiscal year. The year represented a period of accelerating progress on the product and market development fronts with several new product introductions, customer design wins, and market initiatives, all delivered while continuing to enjoy a strong financial performance with marked improvement in operating income, cash flow, and debt reduction."
With the cost reductions achieved in 2009 and continued cost management in 2010, the Company successfully leveraged higher sales into substantially improved financial results. Full year and fourth quarter 2010 operating income of $29.0 million and $9.0 million, respectively, reflected a dramatic increase compared to the prior full year and fourth quarter operating income of $3.8 and $1.5 million, respectively. Operating income as a percent of net sales increased to 13.0 percent and 15.1 percent, respectively, for the year and fourth quarter ended 2010, compared to 2.0 percent and 3.1 percent for the same periods in 2009.
Adjusted EBITDA of $15.0 million and $56.3 million for the fourth quarter and full year increased by $2.3 million and $11.7 million, or 18.4 percent and 26.0 percent, respectively, compared to the same periods in 2009. The improved operating results combined with working capital efficiencies resulted in cash flow before financing activities of $31.4 million, or 14.1 percent of sales, for the year. Cash flow before financing activities for 2010 increased by $7.1 million, or 29.2 percent, compared to 2009.
Total debt payments for the quarter and year were $10.8 million and $47.0 million, respectively. The Company reduced net debt from secured credit facilities by $29.6 million to $124.9 million compared to $154.5 million at the year-end 2009.
Rajesh K. Shah, the Company's Chief Financial Officer, commented, "I am pleased that the Company's financial performance has been able to support product and market investments to drive growth while at the same time we have remained focused on improving our capital structure as highlighted by our current year and two year cumulative secured debt repayments of $47.0 and $92.7 million, respectively. We will remain attentive to the need to deliver improving financial results while still investing in our future."
Vacchiano closed by saying, "The continued improvement in revenue and profitability is a result of our initiatives as well as improved market conditions. We commence 2011 with a strong product portfolio and with more exciting product introductions planned for 2011. We believe we have the momentum and opportunities for continued growth across all our core product lines and regions in 2011. At this point, we expect to report double digit sales growth in the first quarter of 2011 compared to the first quarter last year."