MOD-PAC CORP.’s Net Income Up Sharply To $479,000 On 16.3% Sales Growth In 2011’s Second Quarter
MOD-PAC CORP. (NASDAQ: MPAC), (the “Company”) a manufacturer of custom paper board packaging and provider of personalized print products, today reported its results for the three and six months ended July 2, 2011.
In the second quarter of 2011, revenue increased by 16.3% to $13.4 million compared with revenue of $11.5 million in the second quarter of 2010, which ended July 3, 2010.
Net income for the second quarter of 2011 was $479,000, or $0.14 per diluted share, compared with net income of $46,000, or $0.01 per diluted share, in the second quarter of 2010. The improvement in net income was the result of increased product sales leveraged against a lower cost structure and ongoing productivity enhancements and efficiency gains.
Mr. Daniel G. Keane, President and CEO of MOD-PAC CORP., commented, “Our continued growth in sales and strengthening margins were the direct result of our many initiatives to expand our top line by deepening relationships with existing customers, winning new business, and improvements to our operating efficiency through productivity enhancements.”Second-Quarter Sales Review: Custom Folding Carton Sales up 19.9%; Stock Packaging Sales Build on Improved Market Conditions
- Sales of folding cartons, which include custom folding cartons and stock packaging, were $12.5 million in the second quarter of 2011, up 18.6% from $10.5 million in the second quarter of 2010.
- For the second consecutive quarter, custom folding carton sales reached a record, advancing to $10.8 million in the second quarter of 2011, up 19.9% from $9.0 million in the second quarter of 2010, mainly due to increased business from several large existing customers, business from three new customers, and increased waste sales due to improved market conditions, offset partially by decreased business with several existing customers.
- Stock packaging sales of $1.7 million in the second quarter of 2011 were up 10.7% from $1.5 million in the second quarter of 2010. Improved market conditions had a favorable impact on the stock packaging line.
- Personalized print sales were $796,000 in the second quarter of 2011, down 7.0% from $856,000 in the second quarter of 2010, primarily due to continued weakness in this market.
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