X-Rite Incorporated (NASDAQ: XRIT), a Michigan-based company that develops a range of color management systems and solutions, has seen its second quarter sales for the year increase 15.7% to $57.1 million, compared to Q2 2009. Its adjusted EBITDA went up by 22.1% to $14.9 million, while its income from operations jumped a whopping 228% to $8.2 million, resulting in Q2 EPS of $0.02 per diluted share.
Sales rose in the quarter as a result of recently launched product and marketing initiatives as well as the beginnings of a global market recovery. Net earnings for the quarter were $1.9 million, or $0.02 per diluted share, compared to a net loss of $7.6 million for the same period of 2009.
X-Rite introduced the new Pantone Matching Systems PLUS SERIES product lines and the MA94 and MA96 Multi-Angle Spectrophotometer. The new Pantone incorporates X-Rite features such as the color checker lighting indicator, color checker primer and color manager software. The Multi-Angle products deliver cost- effective reliable color measurement anywhere from the lab to the production line, supporting formulation and quality control applications.
The company also signed a new customer agreement to install a minimum of 600 new color matching systems with a North American hardware co-operative over the next 12 months.
"The positive momentum in our business this year continued into the second quarter with very solid growth in both sales and profitability," said CEO Thomas J. Vacchiano Jr.
“The company is off to a good start this year. Our increased 2010 revenue and profitability reflect the strength and momentum of our product portfolio in a healthier global marketplace. This momentum should lead to double digit third quarter sales growth compared to the third quarter of last year. That said, we continue to carefully monitor the economic climate, maintaining flexibility to manage our business opportunities accordingly."
Moreover, as a result of X-Rite`s strong operating cash flows, $10.6 million of first lien debt was paid in the quarter for a total of $17.0 million in debt pay-downs for the year. The company has already also paid an additional $9 million of first lien debt in Q3 2010.
X-Rite develops, manufactures, markets and supports innovative color solutions through measurement systems, software, color standards and services. The company serves a range of industries, including printing, packaging, photography, graphic design, video, automotive, paints, plastics, textiles, dental and medical.