|Three Months Ended|
|(in thousands)||(diluted earnings per share)|
|Net write-down (write-up) of impaired assets||178||(36||)||0.05||(0.01||)|
|Total one-time charges||178||(36||)||0.05||(0.01||)|
|Adjusted Net Income||$||418||$||1,228||$||0.12||$||0.35|
MOD-PAC CORP. (NASDAQ: MPAC) (the “Company”), a manufacturer of custom and stock paper board packaging and provider of personalized print products, today announced financial results for its fourth quarter and year ended December 31, 2010. Daniel G. Keane, President and CEO, commented, “As a direct result of successfully implementing our focused strategies over the last two years, we delivered solid results in 2010, led by our market-share gains in custom folding cartons and a rebound in our stock packaging business line. During the year, we also generated strong cash from operations, strengthened our balance sheet, and continued to return more capital to our shareholders through share repurchases.” David B. Lupp, Chief Operating Officer and Chief Financial Officer, noted, “This was our sixth consecutive quarter of profitability. And even though our fourth-quarter earnings were impacted by the write-down of the remaining held-for-sale Specialty Print and Direct Mail assets and a software system no longer being used, together with higher-than-expected repair and maintenance costs, our 2010 results clearly demonstrate that our restructured and refocused business platform has enhanced our ability to achieve our long-term growth and profitability goals.” Total revenue for the fourth quarter of 2010 was $12.80 million, a slight increase from total revenue of $12.77 million in the 2009 fourth quarter. Net income was $240 thousand, or $0.07 per diluted share, compared with net income of $1.26 million, or $0.36 per diluted share, in the fourth quarter of 2009. The change in net income was primarily due to higher repair and maintenance costs, pricing pressure, product mix, and a $178 thousand, or $0.05 per diluted share, charge for impaired asset write-downs. On an adjusted basis, fourth quarter net income was $418 thousand, or $0.12 per diluted share, compared with $1.23 million, or $0.35 per diluted share, for the same period last year. Reconciliation of GAAP net income to adjusted net income and diluted earnings per share is summarized in the following table:
Total revenue for 2010 was $48.7 million compared with $48.9 million in the prior year period. Excluding 2009 specialty print and direct mail sales, which was rationalized in the second quarter of 2009, total revenue grew $1.34 million, or 2.8%, compared with 2009, reflecting higher folding carton sales and improved waste sales due to a recovery in the recycling market.