MOD-PAC CORP. (NASDAQ: MPAC), a manufacturer of custom paper board packaging and provider of personalized print products, today reported its results for the three and nine months ended October 1, 2011.
In the third quarter of 2011, revenue increased by 16.0% to $14.4 million compared with revenue of $12.4 million in the third quarter of 2010.
Net income for the third quarter of 2011 was $0.6 million, or $0.18 per diluted share, compared with $1.0 million, or $0.28 per diluted share, in the third quarter of 2010. The change in net income was the result of both higher raw material costs that impacted the Company’s gross margin and a lower effective tax rate in the 2010 third quarter due to the utilization of available net operating loss carry-forward for which a valuation allowance was previously recorded.
Daniel G. Keane, President and CEO of MOD-PAC CORP., commented, “Our sales and marketing efforts are making solid strides in capturing market share. Customers are seeing the value in our focus, expertise, and flexibility. We see further opportunity in the custom folding carton market, where we have now recorded three straight quarterly sales records, and we believe we are well positioned for continued success going forward.”Third-Quarter Sales Review: Custom Folding Carton Sales up 21.1%; Stock Packaging Sales Build on Improved Market Conditions
- Sales of folding cartons were $11.2 million in the third quarter of 2011, up 21.1% from $9.3 million in the third quarter of 2010, mainly due to increased business from several large existing customers, business from two new customers, and increased waste sales due to improved market conditions, partially offset by decreased business with some existing customers.
- Stock packaging sales were $2.3 million in the third quarter of 2011, up 2.7% from the third quarter of 2010, primarily due to improved market conditions.
- Personalized print sales were $725,000 in the third quarter of 2011, down 4.2% from $757,000 in the third quarter of 2010, primarily due to continued weakness in this market.