- Fourth quarter and full-year product sales increased to a record
$16.5 million and $58.9 million, respectively
- Fourth quarter custom folding carton sales up 18.5% to $12.2
million; increased 7.4% to $46.0 million in 2012
- Gross margin expanded 610 basis points to 23.3% in the fourth
quarter on improved leverage and continued cost control
- Net income increased nearly 153% to $1.0 million, or $0.31 per
diluted share, in the fourth quarter
- Generated $4.8 million in cash from operating activities in
2012, a 28.0% increase over 2011

Company Website:
http://www.modpac.com
BUFFALO, N.Y. -- (Business Wire)
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.
David B. Lupp, Chief Operating Officer and Chief Financial Officer,
stated, “We recognized the operating leverage inherent within our
business this quarter. Increased product sales and a continued focus on
cost control drove our margin expansion and bottom line growth. We
remain focused on increasing our sales and continue to look for
productivity and operational enhancements in order to further leverage
our fixed cost structure.”
Improved Leverage Drives Margin Expansion
Gross profit for the 2012 fourth quarter was $3.9 million, an increase
of 54.3% when compared with gross profit of $2.5 million in the
prior-year period. Fourth quarter gross margin expanded to 23.3% from
17.2% in the fourth quarter of 2011, reflecting improved leverage on
higher sales combined with continued cost control.
Selling, general and administrative (SG&A) expense increased $0.3
million year-over-year to $2.2 million in the fourth quarter of 2012,
due to higher employee related costs and approximately $0.2 million in
expense associated with the formal proposal the Company received on
October 29, 2012 to be acquired. As a percentage of revenue, SG&A was
13.5% and 13.2% in the fourth quarters of 2012 and 2011, respectively.
Earnings before interest, taxes, depreciation and amortization, and
non-cash option expense (EBITDA) was $2.5 million in the fourth quarter
of 2012, an increase of 79.4%, or $1.1 million, from $1.4 million in the
fourth quarter of 2011. The Company believes that, when used in
conjunction with GAAP measures, EBITDA, which is a non-GAAP measure,
helps in the understanding of operating performance. (See the Reconciliation
of Net Income to EBITDA in the attached table.)
The Company’s effective tax rate for the fourth quarter of 2012 was
33.9%, a more normalized rate when compared with 23.1% in the 2011
fourth quarter.
2012 Highlights
Total revenue for 2012 increased 5.4% to $59.3 million compared with
$56.2 million in 2011. Custom folding cartons sales were $46.0 million,
up 7.4% from $42.8 million in 2011, mainly due to additional business
from several large existing customers and ramp-up of sales from recently
acquired accounts, partially offset by decreased waste paperboard
revenue. Stock packaging sales were up slightly at $10.2 million in
2012, while personalized print sales decreased 5.7% to $2.7 million
compared with 2011.
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.”
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.
Outlook
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.
The conference call can be accessed by dialing (201) 689-8562. The
listen-only audio webcast can be monitored at www.modpac.com.
The telephonic replay will be available from 1:30 p.m. ET the day of the
call until Wednesday, February 13, 2013. To listen to the archived call,
dial (858) 384-5517 and enter conference ID number 407402. An archive of
the webcast will be available on the Company’s website at www.modpac.com,
along with a transcript, once available.
About MOD-PAC CORP.
MOD-PAC CORP. is a leading designer and manufacturer of folding carton
packaging employing high value-added services and on-demand delivery.
MOD-PAC provides CUSTOM
FOLDING CARTONS for branded and private label consumer products in
the food and food service, healthcare, medical and automotive
industries. The Company also offers a line of STOCK
PACKAGING primarily to the retail confectionary industry. MOD-PAC
also has a PERSONALIZED
PRINT product line that offers a comprehensive line of products for
consumer and corporate social occasions.
MOD-PAC’s strategy for growth is to leverage its capabilities to
innovate and aggressively integrate technology into its production
operations providing cost-effective solutions for its customers.
Applying its lean manufacturing processes, coupled with state-of-the-art
printing technologies, MOD-PAC is able to address short-run, highly
variable content needs of its customers with quick turn-around times
relative to industry standards.
Additional information on MOD-PAC can be found at its website: http://www.modpac.com.
Safe Harbor Statement
This news release contains forward-looking statements within the
meaning of Section 21E of the Securities Exchange Act of 1934, as
amended. One can identify these forward-looking statements by the use of
the words such as "expect," "anticipate," "plan," "may," "will,"
"estimate" or other similar expressions. Because such statements apply
to future events, they are subject to risks and uncertainties that could
cause the actual results to differ materially. Important factors, which
could cause actual results to differ materially, include market events,
competitive pressures, changes in technology, customers preferences and
choices, success at entering new markets, the execution of its strategy,
marketing and sales plans, the rate of growth of internet related sales,
the effectiveness of agreements with print distributors and other
factors which are described in MOD-PAC’s annual report on Form 10K on
file with the Securities and Exchange Commission. The Company assumes no
obligation to update forward-looking information in this press release
whether to reflect changed assumptions, the occurrence of unanticipated
events or changes in future operating results, financial conditions or
prospects, or otherwise.
FINANCIAL TABLES FOLLOW.
|
|
|
|
|
|
|
| | |
|
| | |
|
|
|
|
| | |
|
|
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
|
MOD-PAC CORP. CONSOLIDATED STATEMENTS OF INCOME (Unaudited) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
|
(in thousands, except per share data) | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | Three months ended | | | | | | Years ended | |
| | | | | | | | 12/31/2012 |
|
| 12/31/2011 |
| | | | | 12/31/2012 |
|
|
| 12/31/2011 |
|
Revenue
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Product sales
| | | | | | | |
$
|
16,520
| | | | |
$
|
14,446
| | | | | | |
$
|
58,890
| | | | |
$
|
55,777
| | |
Rent
| | | | | | | |
|
97
|
|
|
|
|
|
113
|
|
| | | | |
|
394
|
|
|
|
|
|
448
|
|
|
Total Revenue
| | | | | | | | |
16,617
| | | | | |
14,559
| | | | | | | |
59,284
| | | | | |
56,225
| | |
Cost of products sold
| | | | | | | |
|
12,750
|
|
|
|
|
|
12,053
|
|
| | | | |
|
48,554
|
|
|
|
|
|
45,943
|
|
|
Gross profit
| | | | | | | | |
3,867
| | | | | |
2,506
| | | | | | | |
10,730
| | | | | |
10,282
| | |
Gross profit margin | | | | | | | | | 23.3 | % | | | | | 17.2 | % | | | | | | | 18.1 | % | | | | | 18.3 | % | |
Selling, general and administrative expense
| | | | | | | |
|
2,236
|
|
|
|
|
|
1,927
|
|
| | | | |
|
7,939
|
|
|
|
|
|
7,488
|
|
|
Income from operations
| | | | | | | | |
1,631
| | | | | |
579
| | | | | | | |
2,791
| | | | | |
2,794
| | |
Operating margin | | | | | | | | | 9.8 | % | | | | | 4.0 | % | | | | | | | 4.7 | % | | | | | 5.0 | % | |
Interest expense, net
| | | | | | | | |
46
| | | | | |
47
| | | | | | | |
189
| | | | | |
192
| | |
Other expense (income), net
| | | | | | | |
|
16
|
|
|
|
|
|
(1
|
)
|
| | | | |
|
60
|
|
|
|
|
|
(146
|
)
|
|
Income before taxes
| | | | | | | | |
1,569
| | | | | |
533
| | | | | | | |
2,542
| | | | | |
2,748
| | |
Income tax expense
| | | | | | | |
|
532
|
|
|
|
|
123
|
|
| | | | |
853
|
|
|
|
|
877
|
|
|
Net income | | | | | | | | $ | 1,037 |
|
|
|
| $ | 410 |
|
| | | | | $ | 1,689 |
|
|
|
| $ | 1,871 |
|
|
| | | | | | | | | | | | | | | | | | | | | | | | | |
|
Basic income per share:
| | | | | | | |
$
|
0.32
| | | | |
$
|
0.13
| | | | | | |
$
|
0.52
| | | | |
$
|
0.57
| | |
Diluted income per share:
| | | | | | | |
$
|
0.31
| | | | |
$
|
0.12
| | | | | | |
$
|
0.51
| | | | |
$
|
0.55
| | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
|
Weighted average diluted shares outstanding
| | | | | | | | |
3,332
| | | | | |
3,337
| | | | | | | |
3,318
| | | | | |
3,416
| | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
|
|
|
|
|
|
| | |
|
|
| |
|
|
|
| |
|
|
|
| | |
|
|
| |
|
|
|
| |
|
|
|
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
MOD-PAC CORP. PRODUCT LINE SALES DATA (unaudited) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
($ in thousands) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | Three Months Ended | | | | | % | | | | | Years Ended | | | | | % | | | | | 2012 % of |
| | | | | | | 12/31/2012 |
|
|
| 12/31/2011 |
|
|
|
| change | | | | | 12/31/2012 |
|
|
| 12/31/2011 |
|
|
|
| change | | | | | Total |
FOLDING CARTONS | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Custom folding cartons
| | | | | | |
$
|
12,200
| | | | |
$
|
10,295
| | | | |
18.5
|
%
| | | | |
$
|
45,982
| | | | |
$
|
42,822
| | | | |
7.4
|
%
| | | | |
78.1
|
%
|
Stock packaging
| | | | | | |
|
3,654
|
|
|
|
|
|
3,491
|
|
|
|
|
4.7
|
%
| | | | |
|
10,195
|
|
|
|
|
|
10,077
|
|
|
|
|
1.2
|
%
| | | | |
17.3
|
%
|
Folding cartons subtotal | | | | | | | | 15,854 | | | | | | 13,786 | | | | | 15.0 | % | | | | | | 56,177 | | | | | | 52,899 | | | | | 6.2 | % | | | | | 95.4 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
PERSONALIZED PRINT | | | | | | |
| 666 |
|
|
|
|
| 660 |
|
|
|
| 0.9 | % | | | | |
| 2,713 |
|
|
|
|
| 2,878 |
|
|
|
| (5.7 | %) | | | | | 4.6 | % |
Total product sales | | | | | | | $ | 16,520 |
|
|
|
| $ | 14,446 |
|
|
|
| 14.4 | % | | | | | $ | 58,890 |
|
|
|
| $ | 55,777 |
|
|
|
| 5.6 | % | | | | | 100.0 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
|
|
|
|
| |
|
|
|
| |
| | | | | | | | | |
|
MOD-PAC CORP. CONSOLIDATED BALANCE SHEETS |
| | | | | | | | | |
|
($ in thousands) | | | | | (Unaudited) | | | | | |
|
| | | | | | December 31, 2012 | | | | | December 31, 2011 |
Current assets:
| | | | | | | | | | |
Cash and cash equivalents
| | | | |
$
|
3,641
| | | | | |
$
|
3,900
| |
Accounts receivable
| | | | | |
6,008
| | | | | | |
5,400
| |
Allowance for doubtful accounts
| | | | |
|
(13
|
)
| | | | |
|
(20
|
)
|
Net accounts receivable
| | | | | |
5,995
| | | | | | |
5,380
| |
Inventories
| | | | | |
6,782
| | | | | | |
7,023
| |
Refundable income taxes
| | | | | |
-
| | | | | | |
219
| |
Prepaid expenses
| | | | |
|
424
|
|
| | | |
|
506
|
|
Total current assets
| | | | | |
16,842
| | | | | | |
17,028
| |
|
| | | | | | | | | | | |
Property, plant and equipment, at cost:
| | | | | | | | | | |
Land
| | | | | |
1,224
| | | | | | |
1,192
| |
Buildings and improvements
| | | | | |
14,435
| | | | | | |
12,789
| |
Machinery and equipment
| | | | | |
53,125
| | | | | | |
50,566
| |
Construction in progress
| | | | |
|
643
|
| | | | |
|
168
|
|
| | | | | | | |
69,427
| | | | | | |
64,715
| |
Less accumulated depreciation
| | | | |
|
(53,928
|
)
| | | | |
|
(51,065
|
)
|
Net property, plant and equipment
| | | | | |
15,499
| | | | | | |
13,650
| |
Deferred income taxes
| | | | | |
317
| | | | | | |
-
| |
Other assets
| | | | |
|
481
|
| | | | |
|
466
|
|
Total assets | | | | | $ | 33,139 |
| | | | | $ | 31,144 |
|
| | | | | | | | | | | |
|
Current liabilities:
| | | | | | | | | | |
Current maturities of long-term debt
| | | | |
$
|
20
| | | | | |
$
|
89
| |
Accounts payable
| | | | | |
1,884
| | | | | | |
2,151
| |
Accrued expenses
| | | | | |
1,223
| | | | | | |
1,171
| |
Income taxes payable
| | | | |
|
180
|
| | | | |
|
-
|
|
Total current liabilities
| | | | | |
3,307
| | | | | | |
3,411
| |
| | | | | | | | | | | |
|
Long-term debt
| | | | | |
1,800
| | | | | | |
1,820
| |
Other liabilities
| | | | | |
26
| | | | | | |
27
| |
Deferred income taxes
| | | | |
|
-
|
| | | | |
|
87
|
|
Total liabilities | | | | |
| 5,133 |
| | | | |
| 5,345 |
|
| | | | | | | | | | | |
|
Shareholders' equity:
| | | | | | | | | | |
Common stock, $.01 par value, authorized 20,000,000 shares,
| | | | | | | | | | | | | | |
issued 3,712,156 in 2012, 3,623,945 in 2011
| | | | | |
37
| | | | | | |
36
| |
Class B common stock, $.01 par value, authorized 5,000,000
| | | | | | | | | | | | | | |
shares, issued 564,191 in 2012, 582,493 in 2011
| | | | | |
6
| | | | | | |
6
| |
Additional paid-in capital
| | | | | |
4,288
| | | | | | |
3,771
| |
Retained earnings
| | | | | |
31,685
| | | | | | |
29,996
| |
Treasury stock at cost, 998,809 shares in 2012 and 2011
| | | | |
|
(8,010
|
)
| | | | |
|
(8,010
|
)
|
Total shareholders' equity | | | | |
| 28,006 |
| | | | |
| 25,799 |
|
| | | | | | | | | | | |
|
Total liabilities and shareholders' equity | | | | | $ | 33,139 |
| | | | | $ | 31,144 |
|
| | | | | | | | | | | | | |
|
| | | | | | | | | | | | | |
|
|
|
|
|
|
|
| |
| | | | | | |
|
MOD-PAC CORP. |
CONSOLIDATED STATEMENTS OF CASH FLOWS |
(unaudited) |
(in thousands) | | | | | | | |
|
|
|
|
|
| |
| | | | | | | Years Ended December 31 |
| | | | | | | 2012 | | | | | | | 2011 |
Cash flows from operating activities: | | | | | | | | | | | | | | | | | |
Net income
| | | | | | |
$
|
1,689
| | | | | | | |
$
|
1,871
| |
Adjustments to reconcile net income to net cash provided by operating
activities:
| | | | | | | | | | | | | | | | | | |
Depreciation and amortization
| | | | | | | |
3,226
| | | | | | | | |
2,965
| |
Adjustment to provision for doubtful accounts
| | | | | | | |
(11
|
)
| | | | | | | |
(13
|
)
|
Stock option compensation expense
| | | | | | | |
274
| | | | | | | | |
379
| |
Deferred income taxes
| | | | | | | |
(404
|
)
| | | | | | | |
81
| |
Loss (gain) on disposal of assets
| | | | | | | |
63
| | | | | | | | |
(49
|
)
|
Cash flows from changes in operating assets and liabilities:
| | | | | | | | | | | | | | | | | | |
Accounts receivable
| | | | | | | |
(604
|
)
| | | | | | | |
(460
|
)
|
Inventories
| | | | | | | |
242
| | | | | | | | |
(1,789
|
)
|
Prepaid expenses
| | | | | | | |
82
| | | | | | | | |
(66
|
)
|
Other liabilities
| | | | | | | |
(1
|
)
| | | | | | | |
3
| |
Accounts payable
| | | | | | | |
(269
|
)
| | | | | | | |
850
| |
Payable (refundable) income taxes
| | | | | | | |
453
| | | | | | | | |
(259
|
)
|
Accrued expenses
| | | | | | |
|
52
|
| | | | | | |
|
232
|
|
| | | | | | | | | | | | | | | | | |
|
Net cash provided by operating activities | | | | | | |
| 4,792 |
| | | | | | |
| 3,745 |
|
| | | | | | | | | | | | | | | | | |
|
Cash flows from investing activities: | | | | | | | | | | | | | | | | | | |
Proceeds from the sale of assets
| | | | | | | |
-
| | | | | | | | |
49
| |
Change in other assets
| | | | | | | |
(26
|
)
| | | | | | | |
7
| |
Capital expenditures
| | | | | | |
|
(5,126
|
)
| | | | | | |
|
(2,332
|
)
|
| | | | | | | | | | | | | | | | | |
|
Net cash used in investing activities | | | | | | |
| (5,152 | ) | | | | | | |
| (2,276 | ) |
| | | | | | | | | | | | | | | | | |
|
Cash flows from financing activities: | | | | | | | | | | | | | | | | | | |
Principal payments on long-term debt
| | | | | | | |
(89
|
)
| | | | | | | |
(159
|
)
|
Proceeds from issuance of stock
| | | | | | | |
190
| | | | | | | | |
160
| |
Purchase of stock for treasury
| | | | | | |
|
-
|
| | | | | | |
|
(1,010
|
)
|
| | | | | | | | | | | | | | | | | |
|
Net cash provided by (used in) financing activities | | | | | | |
| 101 |
| | | | | | |
| (1,009 | ) |
| | | | | | | | | | | | | | | | | |
|
Net change in cash and cash equivalents
| | | | | | | |
(259
|
)
| | | | | | | |
460
| |
| | | | | | | | | | | | | | | | | |
|
Cash and cash equivalents at beginning of year
| | | | | | |
|
3,900
|
| | | | | | |
|
3,440
|
|
| | | | | | | | | | | | | | | | | |
|
Cash and cash equivalents at end of year | | | | | | | $ | 3,641 |
| | | | | | | $ | 3,900 |
|
| | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | |
|
|
|
|
|
|
|
| |
|
|
|
|
| |
| | | | | | | | | | | | |
|
MOD-PAC CORP. Reconciliation between Net Income and EBITDA |
| | | | | | | | | | | | |
|
(in thousands) | | | | | | | Three Months Ended | | | | | | Years Ended |
| | | | | | |
| 12/31/12 |
|
|
|
|
|
| 12/31/11 | | | | | |
| 12/31/12 |
|
|
|
|
|
| 12/31/11 |
| | | | | | | | | | | | | | | | | | | | | | | | |
|
GAAP Net Income | | | | | | | $ | 1,037 | | | | | | $ | 410 | | | | | | $ | 1,689 | | | | | | $ | 1,871 |
| | | | | | | | | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | | | | | | | | |
|
Interest
| | | | | | | |
46
| | | | | | |
47
| | | | | | |
189
| | | | | | |
192
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Taxes
| | | | | | | |
532
| | | | | | |
123
| | | | | | |
853
| | | | | | |
877
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Depreciation and amortization
| | | | | | | |
849
| | | | | | |
770
| | | | | | |
3,226
| | | | | | |
2,965
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Stock-based compensation
| | | | | | |
|
33
| | | | | |
|
42
| | | | | |
|
274
| | | | | |
|
379
|
| | | | | | | | | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
EBITDA | | | | | | | $ | 2,497 | | | | | | $ | 1,392 | | | | | | $ | 6,231 | | | | | | $ | 6,284 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
EBITDA is defined as consolidated net income before interest expense,
income taxes, depreciation and amortization and option expense. EBITDA
is not a measure determined in accordance with generally accepted
accounting principles in the United States, commonly known as GAAP.
Nevertheless, MOD-PAC believes that providing non-GAAP information such
as EBITDA is important for investors and other readers of MOD-PAC's
financial statements, as it is used as an analytical indicator by
MOD-PAC's management. Because EBITDA is a non-GAAP measure and is thus
susceptible to varying calculations, EBITDA, as presented, may not be
directly comparable to other similarly titled measures used by other
companies.

Contacts:
For more information:
Kei Advisors LLC
Deborah K.
Pawlowski, 716-843-3908
Dpawlowski@keiadvisors.com
Source: MOD-PAC CORP.
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