MODPAC CORP. (MPAC, Financial) filed Quarterly Report for the period ended 2009-04-04.
Mod-Pac Corp is a specialized short-run printer and a designer and manufacturer of paperboard packaging. They provide products in two primary categories folding cartons and full color print-on-demand. In addition to the commercial print market they also provide distinctive designs for social occasions. They personalize specialty items such as invitations napkins and stationery. MODPAC CORP. has a market cap of $6.8 million; its shares were traded at around $2.45 with and P/S ratio of 0.1.
The net loss for the first quarter of 2009 was $0.5 million, relatively unchanged from the first quarter of 2008. This loss was due to the fluctuations discussed above. Diluted loss per share was $0.16 in the first quarter of 2009 and $0.15 in the first quarter of 2008.
Cash and cash equivalents were $0.1 million at April 4, 2009, a slight decrease from the $0.2 million balance at December 31, 2008.
The Company has access to a $5.0 million committed line of credit with a commercial bank, which expires in March 2010. At April 4, 2009, $2.1 million was borrowed and an additional $0.2 million was in use through standby letters of credit. The borrowed amount is an increase of $1.1 million from the balance at December 31, 2008. Interest on the line of credit is either LIBOR plus 150 basis points or the prime rate plus 50 basis points at the Companys option.
Capital expenditures driven primarily by productivity improvement investments, for the first three months of 2009 were $0.3 million compared with $0.7 million for the first three months of 2008. Depreciation and amortization for the first three months of 2009 was $0.9 million compared with $1.0 million in the same period last year. The Company believes that cash, cash equivalents and the line of credit, are sufficient to meet cash requirements for operations, capital expenditures and debt service for the balance of 2009. The Companys management is beginning the process of negotiation to renew or replace the existing line of credit that is due to expire in the first quarter of 2010.
There were no shares repurchased by the Company during the first three months of 2009. The Company has authorization to repurchase 75,885 shares at April 4, 2009. The closing price of the Companys stock at April 4, 2009 was $1.49. At this price, the repurchase of 75,885 shares would require $113,069.
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Mod-Pac Corp is a specialized short-run printer and a designer and manufacturer of paperboard packaging. They provide products in two primary categories folding cartons and full color print-on-demand. In addition to the commercial print market they also provide distinctive designs for social occasions. They personalize specialty items such as invitations napkins and stationery. MODPAC CORP. has a market cap of $6.8 million; its shares were traded at around $2.45 with and P/S ratio of 0.1.
Highlight of Business Operations:
For the first quarter of 2009 total revenue was $12.3 million compared with $11.6 million in 2008, an increase of 6.5%. The custom folding carton product line sales were $8.5 million compared with $7.0 million in the first quarter of 2008. The increase was mainly due to substantial growth with one large existing customer and sales to one large new customer. Sales of the Companys stock packaging product line were $2.2 million compared with $2.5 million in the first quarter of 2008, down 14.5% primarily due to weakness in general business conditions. First quarter 2009 specialty print and direct mail sales decreased 21.9% to $0.8 million compared with sales of $1.0 million in the first quarter of 2008. The decrease was primarily due to one-time sales in 2008 to a custom folding carton customer and general soft market conditions. Personalized print sales for the first quarter of 2009 were $0.8 million compared with $1.0 million in 2008, a decrease of 21.4%, mainly due to weakness in general business conditions.The net loss for the first quarter of 2009 was $0.5 million, relatively unchanged from the first quarter of 2008. This loss was due to the fluctuations discussed above. Diluted loss per share was $0.16 in the first quarter of 2009 and $0.15 in the first quarter of 2008.
Cash and cash equivalents were $0.1 million at April 4, 2009, a slight decrease from the $0.2 million balance at December 31, 2008.
The Company has access to a $5.0 million committed line of credit with a commercial bank, which expires in March 2010. At April 4, 2009, $2.1 million was borrowed and an additional $0.2 million was in use through standby letters of credit. The borrowed amount is an increase of $1.1 million from the balance at December 31, 2008. Interest on the line of credit is either LIBOR plus 150 basis points or the prime rate plus 50 basis points at the Companys option.
Capital expenditures driven primarily by productivity improvement investments, for the first three months of 2009 were $0.3 million compared with $0.7 million for the first three months of 2008. Depreciation and amortization for the first three months of 2009 was $0.9 million compared with $1.0 million in the same period last year. The Company believes that cash, cash equivalents and the line of credit, are sufficient to meet cash requirements for operations, capital expenditures and debt service for the balance of 2009. The Companys management is beginning the process of negotiation to renew or replace the existing line of credit that is due to expire in the first quarter of 2010.
There were no shares repurchased by the Company during the first three months of 2009. The Company has authorization to repurchase 75,885 shares at April 4, 2009. The closing price of the Companys stock at April 4, 2009 was $1.49. At this price, the repurchase of 75,885 shares would require $113,069.
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