MOD-PAC CORP. (NASDAQ: MPAC) (the “Company”), a high value-added, on-demand print services firm that designs and manufactures custom and stock folding cartons, today announced financial results for its fourth quarter and year ended December 31, 2012.
Revenue increased $2.1 million, or 14.1%, to $16.6 million in the fourth quarter from $14.6 million in the prior-year period on strong custom folding carton sales. Net income increased 152.9% to $1.0 million, or $0.31 per diluted share, compared with $0.4 million, or $0.12 per diluted share, in the fourth quarter of 2011. The substantial increase in net income reflects positive leverage on higher sales and continued cost control.
Daniel G. Keane, President and CEO, commented, “We had a very strong second half of 2012, highlighted by record product sales in the fourth quarter. We continued to see demand increase for our custom folding carton business as we deepened relationships with a number of large customers and started to realize the potential of some newer accounts as they ramped up their business.”
Record Product Sales Buoyed by Strong Custom Folding Carton Growth
- Sales of custom folding cartons increased 18.5% to $12.2 million compared with $10.3 million in the fourth quarter of 2011. The increase was primarily due to the addition of new product lines from several existing customers, the ramp-up of sales from some large customers whose business was earned last year and higher graphics charges, partially offset by lower waste paperboard sales.
- Stock packaging sales were $3.7 million and $3.5 million in the fourth quarters of 2012 and 2011, respectively, reflecting increased holiday sales as a result of Easter being early this year.
- Personalized print sales were $0.7 million in the fourth quarter of 2012 consistent with the prior-year period.