Modpac Corp. has a market cap of $14.3 million; its shares were traded at around $5.1 with a P/E ratio of 56.7 and P/S ratio of 0.3. MPAC is in the portfolios of Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:For the first quarter of 2010 total revenue was $12.0 million compared with $12.3 million in 2009, a decrease of 2.5%. The custom folding carton product line sales were $8.7 million compared with $8.5 million in the first quarter of 2009. The increase was mainly due to substantial new business with one large existing customer and increased waste sales due to improved market conditions, offset partially by decreased business with several existing customers. Sales of the Companys stock packaging product line were $2.5 million compared with $2.2 million in the first quarter of 2009, up 15.1% primarily due to improved market conditions. Personalized print sales for the first quarter of 2010 were $0.7 million compared with $0.8 million in 2009, a decrease of 9.1%, mainly due to weakness in general business conditions. There were no specialty print and direct mail sales in the first quarter of 2010 due to the product line rationalization that took place at the end of the second quarter of 2009. Specialty print and direct mail sales were $0.8 million in the first quarter of 2009.
Selling, general, and administrative costs decreased 11.1% to $1.8 million in the first quarter of 2010 from $2.0 million during the same period in the prior year. This decrease was driven primarily by lower labor costs and professional service costs.
The net income for the first quarter of 2010 was $20 thousand, compared with a net loss of $0.5 million in the first quarter of 2009. The net income/loss was due to the fluctuations discussed above. Diluted income per share was $0.01 in the first quarter of 2010 and a loss of $0.16 in the first quarter of 2009.
Cash and cash equivalents at April 3, 2010 decreased to $3.1 million from the $3.8 million balance at December 31, 2009.
Capital expenditures driven primarily by productivity improvement and upgrade investments, for the first three months of 2010 and 2009 were $0.3 million. Depreciation and amortization for the first three months of 2010 was $0.7 million compared with $0.9 million in the same period last year.
There were no shares repurchased by the Company during the first three months of 2010. The Company has authorization to repurchase 75,885 shares at April 3, 2010. The closing price of the Companys stock at April 3, 2010 was $6.25. At this price, the repurchase of 75,885 shares would require $474 thousand.
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