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MOD-PAC CORP. Message Board

  • dtejd1997 dtejd1997 Aug 3, 2011 5:13 PM Flag

    Latest quarterly EARNINGS

    Hey all:

    Just listened to the latest quarterly confernce call. Not too much new information, just that MPAC is operating at 70% to 75% capacity. There was only one question about gross margins.

    Here is my take on the quarter....

    Earnings were $.14/share, which is a tremendous improvement over $.01/share. EBITDA was $1.6MM vs. $900k in year ago period. Can MPAC keep going and only be at 3X cash flow?

    MPAC TTM is now about $.59 share. So now we are at about a 10 P/E. We are also getting about 8% ROE. IF MPAC can keep going, we should be seeing a stock trading at book value.

    CAP-EX is going up! It is expected to be about $2MM to $2.5MM which is about $1MM more than previously expected. According to the balance sheet, most of MPAC's equipment has already been depreciated. I wonder how much useful life is left. Will cap-ex be much high late this year and next year? How much free cash flow will MPAC have?

    MPAC has not bought back any shares this latest quarter.

    GOOD: Sales & earnings up strongly
    BAD: higher cap-ex, & no share buyback

    I would like to see a cash dividend initiated in about a year.

    Any thoughts?