BUFFALO, N.Y.--April 28, 2004-- MOD-PAC CORP., a specialized commercial printer and manufacturer of paperboard packaging, today announced for the first quarter ended April 3, 2004 diluted earnings per share of $.17, up $.04 or 30.8% over the same period in the prior year. Net income grew 24.1% to $654 thousand compared with $527 thousand in the first quarter last year. The growth in earnings per share was driven by higher sales and improved gross margin which more than offset increased interest expense.
Net sales for the quarter increased 26% to $11.6 million, up from $9.2 million in the prior year period. The growth in sales is primarily attributed to the 38.9% increase of the commercial printing product line and the 24.7% increase in sales from the custom folding carton product line.
Daniel G. Keane, President and CEO of MOD-PAC Corp., stated, "The effectiveness of our strategy to apply computer technology and process flow systems to our expanding super-print facility is demonstrated in our consistently strong financial performance and growth. We believe our unique approach to the business of printing provides higher value to our customers and measurably differentiates us from our competition."
The commercial printing product line grew $1.1 million to $4.0 million in the first quarter of 2004. This product line currently serves a single customer which is an internet marketer of print products to home and small offices.
The custom folding carton product line grew to $3.9 million in sales from $3.1 million in the first quarter last year. Custom folding cartons serves customers of all sizes primarily in the consumer goods industry. The growth in sales is the result of both increasing sales to existing customers and new business.
The stock box product line increased $251 thousand driven by higher demand from its confectionary retail customer base. The personalized print product line increased 18.1%, or $126 thousand, as a result of improving sales through its recently expanded website: www.partybasics.com.
Capital spending in the first quarter of 2004 was $1.6 million compared with $3.9 million for the prior year period. Depreciation and amortization was $1.2 million for this quarter compared with $895 thousand last year. Book value grew to $6.05 per share from $5.44 at the end of the first quarter last year and from $5.90 at the end of 2003. Annual sales per full time employee improved while the full time equivalent employee count grew 20%.
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