There were no shares repurchased by the Company during 2012. MOD-PAC has authorization to repurchase up to 200,000 shares.
The Company has a $3.0 million secured line of credit of which $0.2 million was in use through a standby letter of credit and there was no balance drawn on the line at the end of the quarter.
Mr. Keane concluded, “As we enter 2013, we will look to build on the strength of our platform by continuing to make strategic investments in our business to grow our top-line and increase overall productivity and efficiency to drive sustainable long-term growth.”
Board of Directors Forms Special Committee and Appoints Independent Advisors
The Company's Board of Directors formed an independent committee (the “Committee”) comprised of Robert J. McKenna, William G. Gisel, Jr. and Howard Zemsky to consider a formal proposal the Company received on October 29, 2012 from Daniel G. Keane, Director, President and Chief Executive Officer, and Kevin T. Keane, Chairman of the Board, to acquire the Company for $7.20 in cash per share. Mr. McKenna will serve as Chairman.
The committee has appointed Western Reserve Partners LLC as its independent financial advisor and Harter Secrest & Emery LLP as its legal counsel. The independent advisors are assisting the Committee with its work in connection with the proposal. No final decisions have been made by the Committee with respect to the Company's response to the proposal. There can be no assurance that any definitive offer will be made, that any agreement will be executed or that this or any other proposal will be approved or consummated. The Company does not undertake any obligation to provide any updates with respect to this or any other transaction, except as required under applicable law.
Webcast and Conference Call
MOD-PAC will host a conference call and webcast today at 10:30 a.m. Eastern Time. During the conference call and webcast, management will review the financial and operating results for the period, followed by a question-and-answer session.