Mod-Pac Corp. could reduce its profits last year by up to $350,000 after uncovering potential accounting errors, the Buffalo-based printing and packaging company said Wednesday.
The accounting errors, which were disclosed in a filing with the Securities and Exchange Commission, could reduce Mod-Pac's reported profits for 2003 by 16 percent if the reduction totals $350,000.
C. Anthony Rider, Mod-Pac's vice president of finance, said the errors were uncovered during a review of accounting practices by the company's senior management.
That review found that some routine account reconciliations had not been done "in an accurate and timely manner" this year and in 2003, the SEC filing said.
Because of the errors, Mod-Pac failed to file its quarterly financial report with the SEC by the normal deadline. Mod-Pac expects to file its financial report, including any adjustments that may be necessary, within five days, Rider said.
Mod-Pac said any changes to its financial statements would affect its 2003 earnings, which totaled $2.2 million, or 57 cents per share. The company said in the filing there was only a remote chance that the revisions to its earnings last year would exceed $350,000.
Despite the disclosure of potential accounting errors, Mod-Pac's stock rose 11 cents Wednesday to $12.41.