Translation:Last year was a good year.
The kanji 年 is read as "toshi" by itself. This is the "kun-yomi" for this kanji. "Nen" is the "on-yomi," which is derived from the Chinese reading of the character. The on-yomi is used when this character is included in other words like 去年 (kyonen) above and 来年 (rainen) which means "next year." Oddly though, the word for "this year," 今年 (kotoshi) uses the kun-yomi.
I'd also like to add 先年 (せんねん) is also "former year(s)". I'm unfamiliar as to which is more common.