This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

MOD-PAC CORP. Reports Record Quarterly And Annual Product Sales In 2012

Gross profit increased $0.4 million to $10.7 million in 2012. Gross margin was 18.1% for the full year period, a 20 basis point decline from 2011. The operational leverage realized from increased product sales was offset by sales mix, higher employee related expenses and increased paperboard costs for the first half of 2012.

SG&A expense in 2012 was $7.9 million, or 13.4% of revenue, compared with $7.5 million, or 13.3% of revenue in 2011. The increase primarily reflects higher employee related costs and the incremental expense associated with the proposed transaction received in October 2012.

EBITDA for 2012 was $6.2 million compared with $6.3 million in the prior-year period. (See the Reconciliation of Net Income to EBITDA in the attached table.)

Net income decreased slightly to $1.7 million, or $0.51 per diluted share, in 2012 from $1.9 million, or $0.55 per diluted share, in 2011. The prior-year period benefitted from $96 thousand in other income related to a New York State development grant.

Liquidity

Cash and cash equivalents were $3.6 million at December 31, 2012, down from the 2011 year-end balance of $3.9 million. The change was primarily the result of increased capital expenditures.

Capital expenditures for 2012 were $5.1 million compared with $2.3 million in 2011, reflecting $2.0 million associated with the purchase of a seven-color print press and approximately $1.6 million toward the infrastructure improvements needed to reconnect to the public utility electric power grid. Capital expenditures in 2013 are expected to be between $1.8 million to $2.1 million.

Mr. Lupp noted, “Our strong sales growth coupled with the limited energy capacity of our cogeneration facility necessitated that we secure additional power. In the fourth quarter, we successfully reconnected to the power grid and, earlier in 2012, were awarded low-cost power through the Recharge New York Power Program of the New York Power Authority.”

3 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
SYM TRADE IT LAST %CHG

Markets

DOW 18,234.71 -51.03 -0.28%
S&P 500 2,128.45 -2.37 -0.11%
NASDAQ 5,091.3550 +0.5610 0.01%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs