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First quarter product sales increased 4.8% to 14.3 million; Custom folding carton sales up 7.6% to $11.2 million
Gross margin expanded 540 basis points to 18.3% in the first quarter on improved leverage and continued cost control
Achieved quarterly net income of $0.3 million, a measurable improvement from a net loss of $0.1 million in prior-year period
Generated $0.8 million in cash from operating activities during the first quarter of 2013
BUFFALO, N.Y., May 1, 2013 (GLOBE NEWSWIRE) -- 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 first quarter of 2013 ended March 30, 2013.
Revenue increased $0.6 million, or 4.5%, to $14.4 million in the first quarter from $13.8 million in the prior-year period on solid custom folding carton sales. The Company realized net income of $0.3 million, or $0.09 per diluted share, for the first quarter of 2013, an improvement from a net loss of $0.1 million, or $0.04 per diluted share, in the 2012 first quarter, reflecting leverage on higher sales and continued cost control.
Daniel G. Keane, President and CEO, commented, "We realized measurable growth in our core business, custom folding cartons, by capturing additional market share from existing customers. We also achieved margin expansion and an improved bottom-line as a result of our efforts to improve the leverage within the business."
Product Line Sales Review: Custom Folding Carton Growth Offsets Lower Stock Packaging and Personalized Print Sales
Sales of custom folding cartons increased $0.8 million, or 7.6%, to $11.2 million from $10.4 million in the first quarter of 2012. The increase was primarily due to market share gains by capturing new product lines from several existing customers.
Stock packaging sales were $2.6 million during the three months of 2013, a slight decrease from $2.7 million in the first quarter of 2012.
First quarter personalized print sales were $0.6 million consistent with the prior-year period.
David B. Lupp, Chief Operating Officer and Chief Financial Officer, stated, "Our focus and sales efforts have been directed towards our custom folding cartons business, specifically for the private label segment, and we believe our improved results are a direct reflection of the successful execution of this strategy. The growth in this business line combined with cost containment and increased efficiency has allowed us to achieve greater operational leverage."