##### Table of Contents

SECURITIES AND EXCHANGE COMMISSIONWASHINGTON, D.C. 20549

---

FORM 10-Q

---

| | x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
| | - | ---------------------------------------------------------------------------------------

| |  | For the quarterly period ended December 31, 2002
| |  | ------------------------------------------------

OR

| | o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
| | - | ----------------------------------------------------------------------------------------

| |  | For the transition period fromto
| |  | --------------------------------

Commission File #0-16148

---

Multi-Color Corporation(Exact name of Registrant as specified in its
charter)

---

| | OHIO(State or other jurisdiction ofincorporation or organization) |  | 31-1125853(IRS EmployerIdentification No.) | 
| | ----------------------------------------------------------------- |  | ------------------------------------------ | 

425 Walnut Street, Suite 1300, Cincinnati, Ohio 45202(Address of principal executive offices)

Registrants telephone number  (513) 381-1480

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was
required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes x No o

Indicate the number of shares outstanding of each of the Registrants classes of common stock, as of the latest practicable date.

Common shares, no par value - 3,938,806 (as of February
12, 2003)



---

##### Table of Contents



MULTI-COLOR CORPORATIONFORM 10-QCONTENTS

|        |  |                                   |  |                                                                                                                   | Page
|------- |  | --------------------------------- |  | ----------------------------------------------------------------------------------------------------------------- | ----
|        |  |                                   |  |                                                                                                                   |     
|PART I  |  | FINANCIAL INFORMATION (Unaudited) | 
|        |  |                                   |  |                                                                                                                   |     
|        |  |                                   |  | Condensed Consolidated Balance Sheets at December 31, 2002 and March 31, 2002                                     | 3   
|        |  |                                   |  |                                                                                                                   |     
|        |  |                                   |  | Condensed Consolidated Statements of Income for the Three Months Ended December 31, 2002 and December 31, 2001    | 4   
|        |  |                                   |  |                                                                                                                   |     
|        |  |                                   |  | Condensed Consolidated Statements of Income for the Nine Months Ended December 31, 2002 and December 31, 2001     | 5   
|        |  |                                   |  |                                                                                                                   |     
|        |  |                                   |  | Condensed Consolidated Statements of Cash Flows for the Nine Months Ended December 31, 2002 and December 31, 2001 | 6   
|        |  |                                   |  |                                                                                                                   |     
|        |  |                                   |  | Notes to Condensed Consolidated Financial Statements                                                              | 7   
|        |  |                                   |  |                                                                                                                   |     
|        |  |                                   |  | Managements Discussions and Analysis of Financial Condition and Results of Operations                            | 10  
|        |  |                                   |  |                                                                                                                   |     
|        |  |                                   |  | Quantitative and Qualitative Disclosures About Market Risk                                                        | 12  
|        |  |                                   |  |                                                                                                                   |     
|        |  |                                   |  | Controls and Procedures                                                                                           | 12  
|        |  |                                   |  |                                                                                                                   |     
|PART II |  | OTHER INFORMATION                 | 
|        |  |                                   |  |                                                                                                                   |     
|        |  | Item 1.                           |  | Legal Proceedings                                                                                                 | 12  
|        |  |                                   |  |                                                                                                                   |     
|        |  | Item 2.                           |  | Changes in Securities                                                                                             | 12  
|        |  |                                   |  |                                                                                                                   |     
|        |  | Item 3.                           |  | Defaults upon Senior Securities                                                                                   | 12  
|        |  |                                   |  |                                                                                                                   |     
|        |  | Item 4.                           |  | Submission of Matters to a Vote of Security Holders                                                               | 13  
|        |  |                                   |  |                                                                                                                   |     
|        |  | Item 5.                           |  | Other Information                                                                                                 | 13  
|        |  |                                   |  |                                                                                                                   |     
|        |  | Item 6.                           |  | Exhibits and Reports on Form 8-K                                                                                  | 13  

|SIGNATURE      | 14
|-------------- | --
|               |   
|CERTIFICATIONS | 15
|               |   
|CERTIFICATIONS | 16



---

##### Table of Contents

|Item 1. | Financial Statements
|------- | --------------------

MULTI-COLOR CORPORATIONCondensed Consolidated Balance Sheets(Thousands)

|                                                     |  | December 31,2002 |        | March 31,2002 |  
|---------------------------------------------------- |  | ---------------- | ------ | ------------- | -
|                                                     |  |                  |        |               |  
|                                                     |  | (Unaudited)      |        |               |  
|                                                     |  |                  |        |               |  
|ASSETS                                               |  |                  |        |               |  
|                                                     |  |                  |        |               |  
|Current Assets:                                      |  |                  |        |               |  
|Cash                                                 |  | $                | 1,163  |               | $
|Accounts receivable, net                             |  |                  | 10,388 |               |  
|Inventories                                          |  |                  | 4,814  |               |  
|Deferred tax asset                                   |  |                  | 243    |               |  
|Prepaid expenses and other                           |  |                  | 408    |               |  
|                                                     |  |                  |        |               |  
|Total current assets                                 |  |                  | 17,016 |               |  
|                                                     |  |                  |        |               |  
|Property, plant and equipment, net                   |  |                  | 28,461 |               |  
|                                                     |  |                  |        |               |  
|Goodwill                                             |  |                  | 10,854 |               |  
|                                                     |  |                  |        |               |  
|Intangible assets, net                               |  |                  | 623    |               |  
|                                                     |  |                  |        |               |  
|Other                                                |  |                  | 81     |               |  
|                                                     |  |                  |        |               |  
|                                                     |  |                  |        |               |  
|Total assets                                         |  | $                | 57,035 |               | $
|                                                     |  |                  |        |               |  
|                                                     |  |                  |        |               |  
|LIABILITIES AND SHAREHOLDERS EQUITY                 |  |                  |        |               |  
|                                                     |  |                  |        |               |  
|Current liabilities:                                 |  |                  |        |               |  
|Short-term debt                                      |  | $                |       |               | $
|Current portion of long-term debt                    |  |                  | 3,632  |               |  
|Current portion of capital lease obligations         |  |                  | 43     |               |  
|Accounts payable                                     |  |                  | 3,240  |               |  
|Accrued liabilities                                  |  |                  | 3,589  |               |  
|                                                     |  |                  |        |               |  
|Total current liabilities                            |  |                  | 10,504 |               |  
|                                                     |  |                  |        |               |  
|Long-term debt, excluding current portion            |  |                  | 16,597 |               |  
|                                                     |  |                  |        |               |  
|Capital lease obligations, excluding current portion |  |                  | 4,212  |               |  
|                                                     |  |                  |        |               |  
|Deferred tax liability                               |  |                  | 2,913  |               |  
|                                                     |  |                  |        |               |  
|Deferred compensation                                |  |                  | 334    |               |  
|                                                     |  |                  |        |               |  
|Total liabilities                                    |  |                  | 34,560 |               |  
|                                                     |  |                  |        |               |  
|Shareholders equity:                                |  |                  |        |               |  
|Common stock, no par value                           |  |                  | 267    |               |  
|Paid-in capital                                      |  |                  | 10,732 |               |  
|Treasury stock, at cost                              |  |                  | (119   | )             |  
|Retained earnings                                    |  |                  | 11,595 |               |  
|                                                     |  |                  |        |               |  
|Total shareholders equity                           |  |                  | 22,475 |               |  
|                                                     |  |                  |        |               |  
|                                                     |  |                  |        |               |  
|Total liabilities and shareholders equity           |  | $                | 57,035 |               | $
|                                                     |  |                  |        |               |  

The accompanying notes are an integral part of this financial information.



---

##### Table of Contents

|Item 1. | Financial Statements (continued)
|------- | --------------------------------

MULTI-COLOR CORPORATIONCondensed Consolidated Statements of Income(Unaudited)(Thousands except per share amounts)

|                                             |  | Three Months Ended |       
|-------------------------------------------- |  | ------------------ | ------
|                                             |  |                    |       
|                                             |  | December 31,2002   |       
|                                             |  |                    |       
|                                             |  |                    |       
|Net sales                                    |  | $                  | 25,940
|                                             |  |                    |       
|Cost of goods sold                           |  |                    | 21,270
|                                             |  |                    |       
|                                             |  |                    |       
|Gross profit                                 |  |                    | 4,670 
|                                             |  |                    |       
|Selling, general and administrative expenses |  |                    | 1,863 
|                                             |  |                    |       
|                                             |  |                    |       
|Operating income                             |  |                    | 2,807 
|                                             |  |                    |       
|Other expense, net                           |  |                    | 57    
|                                             |  |                    |       
|Interest expense                             |  |                    | 333   
|                                             |  |                    |       
|                                             |  |                    |       
|Income before income taxes                   |  |                    | 2,417 
|                                             |  |                    |       
|Income taxes                                 |  |                    | 931   
|                                             |  |                    |       
|                                             |  |                    |       
|Net income                                   |  | $                  | 1,486 
|                                             |  |                    |       
|                                             |  |                    |       
|Basic earnings per share                     |  | $                  | 0.38  
|                                             |  |                    |       
|Diluted earnings per share                   |  | $                  | 0.35  
|                                             |  |                    |       
|Average number of common shares outstanding  |  |                    |       
|Basic                                        |  |                    | 3,873 
|                                             |  |                    |       
|Diluted                                      |  |                    | 4,289 

The accompanying notes are an integral part of this financial information.



---

##### Table of Contents

|Item 1. | Financial Statements (continued)
|------- | --------------------------------

MULTI-COLOR CORPORATIONCondensed Consolidated Statements of Income(Unaudited)(Thousands except per share amounts)

|                                             |  | Nine Months Ended |       
|-------------------------------------------- |  | ----------------- | ------
|                                             |  |                   |       
|                                             |  | December 31,2002  |       
|                                             |  |                   |       
|                                             |  |                   |       
|Net sales                                    |  | $                 | 70,956
|                                             |  |                   |       
|Cost of goods sold                           |  |                   | 57,474
|                                             |  |                   |       
|                                             |  |                   |       
|Gross profit                                 |  |                   | 13,482
|                                             |  |                   |       
|Selling, general and administrative expenses |  |                   | 5,201 
|                                             |  |                   |       
|                                             |  |                   |       
|Operating income                             |  |                   | 8,281 
|                                             |  |                   |       
|Other expense, net                           |  |                   | 153   
|                                             |  |                   |       
|Interest expense                             |  |                   | 1,030 
|                                             |  |                   |       
|                                             |  |                   |       
|Income before income taxes                   |  |                   | 7,098 
|                                             |  |                   |       
|Income taxes                                 |  |                   | 2,724 
|                                             |  |                   |       
|                                             |  |                   |       
|Net income                                   |  | $                 | 4,374 
|                                             |  |                   |       
|                                             |  |                   |       
|Basic earnings per share                     |  | $                 | 1.14  
|                                             |  |                   |       
|Diluted earnings per share                   |  | $                 | 1.03  
|                                             |  |                   |       
|Average number of common shares outstanding  |  |                   |       
|Basic                                        |  |                   | 3,823 
|                                             |  |                   |       
|Diluted                                      |  |                   | 4,267 

The accompanying notes are an integral part of this financial information.



---

##### Table of Contents

|Item 1. | Financial Statements (continued)
|------- | --------------------------------

MULTI-COLOR CORPORATIONCondensed Consolidated Statements of Cash Flows(Unaudited)(Thousands)

|                                                     |  | Nine Months Ended |       
|---------------------------------------------------- |  | ----------------- | ------
|                                                     |  |                   |       
|                                                     |  | December 31,2002  |       
|                                                     |  |                   |       
|                                                     |  |                   |       
|NET CASH PROVIDED BY OPERATING ACTIVITIES            |  | $                 | 5,323 
|                                                     |  |                   |       
|CASH FLOWS FROM INVESTING ACTIVITIES:                |  |                   |       
|Capital expenditures                                 |  |                   | (1,461
|Acquisition of business, net of cash received        |  |                   | (6,352
|Proceeds from sale of property, plant and equipment  |  |                   | 42    
|                                                     |  |                   |       
|Net cash used in investing activities                |  |                   | (7,771
|                                                     |  |                   |       
|CASH FLOWS FROM FINANCING ACTIVITIES:                |  |                   |       
|Increase (decrease) in revolving line of credit, net |  |                   |      
|Repayment of long-term debt                          |  |                   | (3,108
|Proceeds from issuance of long-term debt             |  |                   | 5,000 
|Capitalized loan fees                                |  |                   | (81   
|Repayment of capital lease obligations               |  |                   | (32   
|Proceeds from issuance of common stock               |  |                   | 442   
|Payment in lieu of fractional shares of stock split  |  |                   |      
|Purchase of treasury stock                           |  |                   |      
|Purchase of outstanding stock options                |  |                   |      
|                                                     |  |                   |       
|Net cash provided by (used in) financing activities  |  |                   | 2,221 
|                                                     |  |                   |       
|Net increase (decrease) in cash                      |  |                   | (227  
|Cash, beginning of period                            |  |                   | 1,390 
|                                                     |  |                   |       
|Cash, end of period                                  |  | $                 | 1,163 
|                                                     |  |                   |       
|                                                     |  |                   |       
|SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION    |  |                   |       
|                                                     |  |                   |       
|Interest paid                                        |  | $                 | 926   
|Income taxes paid                                    |  | $                 | 1,164 
|                                                     |  |                   |       
|Acquisition accounted for as a purchase:             |  |                   |       
|Assets acquired                                      |  | $                 | 7,479 
|Liabilities assumed                                  |  |                   | (827  
|Cash acquired                                        |  |                   |      
|Note payable                                         |  |                   | (300  
|                                                     |  |                   |       
|Net cash paid                                        |  | $                 | 6,352 
|                                                     |  |                   |       

The accompanying notes are an integral part of this financial information.



---

##### Table of Contents

MULTI-COLOR CORPORATIONNotes to Condensed Consolidated Financial Statements(Unaudited)(Amounts in Thousands)

|Item 1. | Financial Statements (continued)
|------- | --------------------------------

1.       Basis of Presentation:

| |  | The condensed financial statements included herein have been prepared by the Company, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. Although certain information and
footnote disclosures, normally included in financial statements prepared in accordance with generally accepted accounting principles, have been condensed or omitted pursuant to such rules and regulations, the Company believes that the disclosures
are adequate to make the information presented not misleading. These condensed financial statements should be read in conjunction with the financial statements and the notes thereto included in the Companys latest Annual Report on Form
10-K.
| |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | The information furnished in these financial statements reflects all estimates and adjustments which are, in the opinion of management, necessary to present fairly the results for the interim periods reported, and all
adjustments and estimates are of a normal recurring nature.
| |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

2.       Net
Income Per Share Data:

| |  | The following is a reconciliation of the number of shares used in the Basic Earnings Per Share (EPS) and Diluted EPS computations (shares in thousands):
| |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------

|                                 |  | Three Months EndedDecember 31, |       | Nine Months EndedDecember 31, | 
|-------------------------------- |  | ------------------------------ | ----- | ----------------------------- | 
|                                 |  |                                |       |                               | 
|                                 |  | 2002                           |       | 2001                          | 
|                                 |  |                                |       |                               | 
|Basic EPS                        |  |                                | 3,873 |                               | 
|Effect of dilutive stock options |  |                                | 416   |                               | 
|Diluted EPS                      |  |                                | 4,289 |                               | 

| |  | All share amounts have been adjusted to reflect the three for two stock split effective November 30, 2001.
| |  | ----------------------------------------------------------------------------------------------------------

3.       Inventories:

| |  | Inventories are stated at the lower of cost (First-in-First-out) or market and are comprised of the following:
| |  | --------------------------------------------------------------------------------------------------------------

|                |  | December 31,2002 |       | March 31,2002 |  
|--------------- |  | ---------------- | ----- | ------------- | -
|                |  |                  |       |               |  
|Finished Goods  |  | $                | 2,430 |               | $
|Work in Process |  |                  | 449   |               |  
|Raw Materials   |  |                  | 1,935 |               |  
|                |  |                  |       |               |  
|                |  | $                | 4,814 |               | $
|                |  |                  |       |               |  

- 7 -



---

##### Table of Contents

|Item 1. | Financial Statements (continued)
|------- | --------------------------------

4.       Goodwill and Other Intangible Assets:

| |  | The Company adopted SFAS No. 142, Goodwill and Other Intangible Assets as of April 1, 2001. In accordance with this statement, the amount recorded for goodwill is no longer being amortized. Goodwill will be
tested annually for impairment. The fair value of the reporting unit responsible for the goodwill will be compared to its carrying amount. If impairment is determined to have occurred, any required impairment loss will be recorded at that time.
| |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | At December 31, 2002, the total amount of intangible assets subject to amortization and related accumulated amortization is $1,424 and $801, respectively. These assets will continue to be amortized over their useful
remaining lives. The weighted average amortization period for these assets is 4.05 years. Total amortization expense for the three months ended December 31, 2002 and 2001 was $92 and $86, respectively. Total amortization expense for the nine months
ended December 31, 2002 and 2001 was $279 and $296, respectively. The amount of goodwill recorded at December 31, 2002 that is no longer amortized is $10,854. Goodwill increased $4,470 during the nine months ended December 31, 2002 due to the
acquisition of Quick Pak, Inc. in May 2002. This increase in goodwill was attributable entirely to the Packaging Services division of the Company.
| |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | The annual estimated amortization expense, excluding any future acquisitions, for each of the fiscal years ended March 31 is as follows:
| |  | ----------------------------------------------------------------------------------------------------------------------------------------

|2003  |  | $ | 368 | 
|----- |  | - | --- | 
|2004  |  | $ | 313 | 
|2005  |  | $ | 188 | 
|2006  |  | $ | 33  | 
|      |  |   |    
|Total |  | $ | 902 | 
|      |  |   |    

5.       Segment Information:

| |  | With the Companys acquisition of Quick Pak, Inc. in May 2002, the Company now operates in two segments within the packaging industry: decorative label solutions and packaging services. The decorative label solutions
segments primary operations involve the printing of labels while the packaging services segment provides promotional packaging, assembling and fulfillment services. Both segments sell to major consumer product companies. Segment information is
not applicable for the three and nine months ended December 31, 2001 as the Company only operated in the label segment during that time.
| |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | Financial information by operating segment is as follows:
| |  | ---------------------------------------------------------

|                                |  | Three Months EndedDecember 31,2002 |        | Nine Months EndedDecember 31,2002 |  
|------------------------------- |  | ---------------------------------- | ------ | --------------------------------- | -
|                                |  |                                    |        |                                   |  
|Sales:                          |  |                                    |        |                                   |  
|Decorative Label Solutions      |  | $                                  | 19,722 |                                   | $
|Packaging Services              |  |                                    | 6,218  |                                   |  
|                                |  |                                    |        |                                   |  
|                                |  | $                                  | 25,940 |                                   | $
|                                |  |                                    |        |                                   |  
|                                |  |                                    |        |                                   |  
|Net income before income taxes: |  |                                    |        |                                   |  
|Decorative Label Solutions      |  | $                                  | 2,433  |                                   | $
|Packaging Services              |  |                                    | 770    |                                   |  
|Corporate expenses              |  |                                    | (786   | )                                 |  
|                                |  |                                    |        |                                   |  
|                                |  | $                                  | 2,417  |                                   | $
|                                |  |                                    |        |                                   |  



---

##### Table of Contents

|Item 1. | Financial Statements (continued)
|------- | --------------------------------

|                               |  | Three Months EndedDecember31,2002 |     | Nine Months EndedDecember31,2002 |  
|------------------------------ |  | --------------------------------- | --- | -------------------------------- | -
|                               |  |                                   |     |                                  |  
|Capital expenditures:          |  |                                   |     |                                  |  
|Decorative Label Solutions     |  | $                                 | 175 |                                  | $
|Packaging Services             |  |                                   | 46  |                                  |  
|Corporate                      |  |                                   | 8   |                                  |  
|                               |  |                                   |     |                                  |  
|                               |  | $                                 | 229 |                                  | $
|                               |  |                                   |     |                                  |  
|                               |  |                                   |     |                                  |  
|Depreciation and amortization: |  |                                   |     |                                  |  
|Decorative Label Solutions     |  | $                                 | 779 |                                  | $
|Packaging Services             |  |                                   | 105 |                                  |  
|Corporate                      |  |                                   | 21  |                                  |  
|                               |  |                                   |     |                                  |  
|                               |  | $                                 | 905 |                                  | $
|                               |  |                                   |     |                                  |  

|                           |  | December 31, 2002 |       
|-------------------------- |  | ----------------- | ------
|                           |  |                   |       
|Total assets:              |  |                   |       
|Decorative Label Solutions |  | $                 | 37,735
|Packaging Services         |  |                   | 8,667 
|Corporate                  |  |                   | 10,633
|                           |  |                   |       
|                           |  | $                 | 57,035
|                           |  |                   |       

6.       New Accounting Pronouncements:

| |  | In December 2002, the FASB issued SFAS No. 148, Accounting for Stock Based Compensation - Transition and Disclosure - an Amendment of SFAS 123. SFAS No. 148 provides additional transition guidance for those
entities that elect to voluntarily adopt the fair value based method of accounting for stock-based employee compensation. In addition, SFAS No. 148 amends the disclosure requirements of SFAS No. 123 to require prominent disclosures in both annual
and interim financial statements about the method of accounting for stock-based employee compensation and the effect of the method used on reported results. Adoption of SFAS No. 148 is expected to impact only the future disclosures of the Company.
The new disclosures are effective for the Companys March 31, 2003 fiscal year end.
| |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | In November 2002, the EITF reached a consensus on Issue No. 00-21, Revenue Arrangements with Multiple Deliverables. EITF No. 00-21 addresses certain aspects of the accounting by a vendor for arrangements under
which the vendor will perform multiple revenue generating activities. EITF No. 00-21 is effective for fiscal years beginning after June 15, 2003. The Company does not expect the adoption of EITF No. 00-21 to have a material impact on its financial
position and results of operations.
| |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

7.       Subsequent
Event:

| |  | On January 17, 2003, the Company completed the purchase of Avery Dennisons Decorating Technologies Division. The purchase price of $6,206 was funded through the Companys operating cash ($1,811) and a four year
promissory note to Avery Dennison ($4,395).
| |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



---

##### Table of Contents

|Item 2. | Managements Discussion and Analysis of Financial Condition and Results of Operations (Amounts in Thousands)
|------- | ------------------------------------------------------------------------------------------------------------

Results of Operations

Three Months Ended December 31, 2002 Compared to the Three Months Ended December 31, 2001

| |  | Net sales increased $9,945 or 62%, for the three months ended December 31, 2002 as compared to the same period in the prior year. The increase was primarily a result of strong holiday sales at Quick Pak, Inc., an
acquisition completed by the Company in May 2002. The acquisition contributed $6,218 in sales for the three months ended December 31, 2002. The remaining revenue increase was a result of organic growth in the core label
business.
| |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | Gross profit increased $1,589 or 52% for the three months ended December 31, 2002 as compared to the same period in the prior year as a result of the sales increase. For the three months ended December 31, 2002, gross
profit as a percentage of sales was 18% versus 19% in the same prior year period. The slight decrease was a result of changes in business mix.
| |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | Selling, general and administrative expenses increased $653 or 54% for the three months ended December 31, 2002 as compared to the same period last year. The increase is due to the Companys continued investment in
sales and marketing programs. As a percentage of sales, selling, general and administrative expenses decreased slightly to 7% for the three months ended December 31, 2002 from 8% for the same period last year.
| |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | Interest expense decreased $19 as compared to the same period in the prior year. The decrease was the result of lower interest rates for the three months ended December 31, 2002.
| |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | Income tax expense increased $392 as compared to the same period in the prior year. The increase is a result of anticipated higher state taxes for the fiscal year ending March 31, 2003 due to the mix of income earned in
higher taxed states such as Ohio. The effective tax rate for the three months ended December 31, 2002 was 39% as compared to 36% for the same period in the prior year.
| |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Nine Months ended
December 31, 2002 Compared to the Nine Months Ended December 31, 2001

| |  | Net sales increased $15,837 or 29% for the nine months ended December 31, 2002 as compared to the same period in the prior year. The increase was primarily a result of Quick Pak, Inc., an acquisition completed by the
Company in May 2002. The acquisition contributed $11,845 in sales for the nine months ended December 31, 2002. The remaining revenue increase was a result of organic growth in the core label business.
| |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | Gross profit increased $2,948 or 28% for the nine months ended December 31, 2002 as compared to the same period in the prior year. Gross profit as a percentage of sales was comparable for the nine months ended December
31, 2002 as compared to the same period in the prior year, 19% for both periods.
| |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | Selling, general and administrative expenses increased $1,453 or 39% as compared to the same prior year period. The increase in expenses is a result of the Companys continued investment in sales and marketing
programs and due to the expansion of the Companys sales force. Selling, general and administrative expenses as a percentage of sales remained consistent at 7% for both periods.
| |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | Interest expense decreased $121 for the nine months ended December 31, 2002 as compared to the same period in the prior year. This is a result of lower interest rates for the nine months ended December 31,
2002.
| |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



---

##### Table of Contents

|Item 2. | Managements Discussion and Analysis of Financial Condition and Results of Operations Continued (Amounts in Thousands)
|------- | ----------------------------------------------------------------------------------------------------------------------

| |  | Income tax expense increased $720 as compared to the same period in the prior year. The increase is a result of anticipated higher state taxes for the fiscal year ending March 31, 2003 due to the mix of income earned in
higher taxed states such as Ohio. The effective tax rate for the nine months ended December 31, 2002 was 38% as compared to 36% for the same period in the prior year.
| |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Liquidity and Capital
Resources

| |  | The Company entered into a new credit agreement with PNC Bank, Ohio, National Association (PNC Bank) and three other participating banks on July 12, 2002. The credit agreement provides the Company with a
$6,000 revolving line of credit, a $15,000 acquisition credit facility and the refinancing of existing term loans and standby letters of credit. The terms, covenants and interest rates under the agreement are substantially the same as under the
previous credit agreement. This agreement expires July 1, 2005.
| |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | Substantially all of the assets of the Company are pledged as collateral under the Companys borrowings.
| |  | --------------------------------------------------------------------------------------------------------

Aggregated Information about Contractual Obligations
and Other Commitments

|December 31, 2002                        |  | Total |        | Year 1 |  | Year 2 |  | Year 3 |       | Year 4 |  | Year 5 |  | Morethan 5years |      
|---------------------------------------- |  | ----- | ------ | ------ |  | ------ |  | ------ | ----- | ------ |  | ------ |  | --------------- | -----
|                                         |  |       |        |        |  |        |  |        |       |        |  |        |  |                 |      
|Long-Term Debt                           |  | $     | 20,229 |        |  | 3,632  |  |        | 4,632 |        |  | 3,680  |  |                 | 2,500
|Rent due under Capital Lease Obligations |  |       | 4,255  |        |  | 582    |  |        | 571   |        |  | 554    |  |                 | 554  
|Rent due under Operating Leases          |  |       | 2,318  |        |  | 739    |  |        | 643   |        |  | 636    |  |                 | 300  
|Unconditional Purchase Obligations       |  |       | None   |        |  |        |  |        |       |        |  |        |  |                 |      
|Other Long-Term Obligations              |  |       | None   |        |  |        |  |        |       |        |  |        |  |                 |      
|                                         |  |       |        |        |  |        |  |        |       |        |  |        |  |                 |      
|Total Contractual Cash Obligations       |  | $     | 26,802 |        |  | 4,953  |  |        | 5,846 |        |  | 4,870  |  |                 | 3,354
|                                         |  |       |        |        |  |        |  |        |       |        |  |        |  |                 |      

| |  | Through the nine months ended December 31, 2002, net cash provided by operating activities was $5,323 as compared to $8,201 through the same period of the prior year. The change is due primarily to the increase in
accounts receivable at December 31, 2002 as compared to March 31, 2002. The accounts receivable increase is a result of increased sales during the nine months ended December 31, 2002 and the acquisition of Quick Pak,
Inc.
| |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | The cash used in investing activities of $7,771 and cash provided by financing activities of $2,221 were a result of the acquisition completed by the Company in May 2002 of Quick Pak, Inc. The Company used its available
line of credit to complete the acquisition and the Companys lenders granted the Company a temporary $3,000 increase in the line of credit to fund the acquisition and temporary future cash needs. During July, 2002, the majority of the
borrowings under the line of credit were converted to a term note under the acquisition credit facility provided for in the new financing agreement entered into with PNC Bank and others on July 12, 2002 as noted above.
| |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | On January 17, 2003, the Company completed the purchase of Avery Dennisons Decorating Technologies division (Dec Tech). The purchase price of $6,206 was funded through the Companys operating cash
($1,811) and a four year promissory note to Avery Dennison ($4,395).
| |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



---

##### Table of Contents

|Item 2. | Managements Discussion and Analysis of Financial Condition and Results of Operations Continued (Amounts in Thousands)
|------- | ----------------------------------------------------------------------------------------------------------------------

| |  | The Company believes it has both sufficient short and long term liquidity financing. The Company had a working capital position of $6,512 and $2,207 at December 31, 2002 and 2001, respectively. At December 31, 2002, the
Company was in compliance with its loan covenants and current in its principal and interest payments on all debt.
| |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | The Company intends to make capital expenditures of approximately $2,200 during fiscal 2003. The Company believes that cash flow from operations and availability under the revolving line of credit are sufficient to meet
its capital requirements and debt service requirements for the nexttwelve months. From time to time the Company has reviewed potential acquisitions of businesses. Such an acquisition may require the Company to issue additional
equity or incur additional debt.
| |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Item 3. | Quantitative and Qualitative Disclosures About Market Risk
|------- | ----------------------------------------------------------

| |  | The Company has no material changes to the disclosure made on this matter on the Companys Form 10-K for the year ended March 31, 2002.
| |  | ---------------------------------------------------------------------------------------------------------------------------------------

|Item 4. | Controls and Procedures
|------- | -----------------------

| |  | The Companys chief executive officer and chief financial officer evaluated the Companys disclosure controls and procedures within the 90-day period prior to the date of this report pursuant to Rule 13a-14(c)
and 15d-14(c) of the Securities Exchange Act of 1934. Their evaluation concluded that the disclosure controls and procedures are effective in connection with the filing of this Quarterly Report on Form 10-Q for the quarter ended December 31, 2002.
| |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | There have been no significant changes in the Companys internal controls or in other factors that could significantly affect these controls subsequent to the date of their evaluation, including any significant
deficiencies or material weaknesses of internal controls that would require corrective action.
| |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Forward Looking Statements

| |  | Forward-looking statements in this release including, without limitations, statements relating to the Companys plans, strategies, objectives, expectations, intentions and adequacy of resources, are made pursuant to
the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of
the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. These factors include, among others, the following: general economic and business conditions; the
ability to integrate acquisitions; the success of its significant customers; competition; acceptance of new product offerings; changes in business strategy or plans; quality of management; availability, terms and development of capital; availability
of raw materials; business abilities and judgement of personnel; changes in, or the failure to comply with, government regulations, and other factors. The Company undertakes no obligation to publicly update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise.
| |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Part II - Other Information

|Item 1. | Legal Proceedings  None
|------- | ------------------------

|Item 2. | Changes in Securities  None
|------- | ----------------------------

|Item 3. | Defaults upon Senior Securities  None
|------- | --------------------------------------



---

##### Table of Contents

|Item 4. | Submission of Matters to a Vote of Security Holders  None.
|------- | -----------------------------------------------------------

|Item 5. | Other Information  None.
|------- | -------------------------

|Item 6. | Exhibits and Reports on Form 8-K 
|------- | ----------------------------------

| | (a) |  | Exhibits:
| | --- |  | ---------

| |  | 99.1 | Certification pursuant to 18 U.S.C Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
| |  | ---- | ----------------------------------------------------------------------------------------------------------------------
| |  | 99.2 | Certification pursuant to 18 U.S.C Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

| | (b) |  | Reports on Form 8-K:
| | --- |  | --------------------

| | 1. |  | A report pursuant to Item 5 of Form 8-K was filed on December 3, 2002 to announce the signing of a definitive agreement to purchase Avery Dennisons Decorating Technologies division.
| | -- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



---

##### Table of Contents

Signature

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto
duly authorized.

|                        |  | Multi-Color Corporation(Registrant)
|----------------------- |  | -----------------------------------
|Date: February 14, 2003 |  | By:                                
|                        |  |                                    
|                        |  |                                    



---

##### Table of Contents

CERTIFICATIONS

I, Francis D. Gerace, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Multi-Color Corporation;

2. Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such
statements were made, not misleading with respect to the period covered by this quarterly report;

3. Based on my knowledge, the financial statements, and other financial information included in this quarterly
report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report;

4. The
registrants other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:

a) designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period
in which this quarterly report is being prepared;

b) evaluated the effectiveness of the registrants disclosure controls and procedures as of a date within 90 days prior to the filing date of this quarterly
report (the Evaluation Date); and

c) presented in this quarterly report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation
Date;

5. The registrants other certifying officers and I have disclosed, based on our most recent evaluation, to the registrants auditors and the audit committee of registrants board of
directors (or persons performing the equivalent function):

a) all significant deficiencies in the design or operation of internal controls which could adversely affect the registrants ability to record,
process, summarize and report financial data and have identified for the registrants auditors any material weaknesses in internal controls; and

b) any fraud, whether or not material, that involves
management or other employees who have a significant role in the registrants internal controls; and

6. The registrants other certifying officers and I have indicated in this quarterly report whether
or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant
deficiencies and material weaknesses.

|Date: February 14, 2003 |  |  |                                         
|----------------------- |  |  | ----------------------------------------
|                        |  |  | /s/ FRANCISD.GERACE                     
|                        |  |  |                                         
|                        |  |  | Francis D. GeraceChief Executive Officer



---

##### Table of Contents

CERTIFICATIONS

I, Dawn H. Bertsche, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Multi-Color Corporation;

2. Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such
statements were made, not misleading with respect to the period covered by this quarterly report;

3. Based on my knowledge, the financial statements, and other financial information included in this quarterly
report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report;

4. The
registrants other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:

a) designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period
in which this quarterly report is being prepared;

b) evaluated the effectiveness of the registrants disclosure controls and procedures as of a date within 90 days prior to the filing date of this quarterly
report (the Evaluation Date); and

c) presented in this quarterly report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation
Date;

5. The registrants other certifying officers and I have disclosed, based on our most recent evaluation, to the registrants auditors and the audit committee of registrants board of
directors (or persons performing the equivalent function):

a) all significant deficiencies in the design or operation of internal controls which could adversely affect the registrants ability to record,
process, summarize and report financial data and have identified for the registrants auditors any material weaknesses in internal controls; and

b) any fraud, whether or not material, that involves
management or other employees who have a significant role in the registrants internal controls; and

6. The registrants other certifying officers and I have indicated in this quarterly report whether
or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant
deficiencies and material weaknesses.

|Date: February 14, 2003 |  |  |                                        
|----------------------- |  |  | ---------------------------------------
|                        |  |  | /s/ DAWNH.BERTSCHE                     
|                        |  |  |                                        
|                        |  |  | Dawn H. BertscheChief Financial Officer