Earnings before interest, taxes, depreciation and amortization (EBITDA) in the quarter ended March 31, 2014 was $6 million, a decrease of $105,000, or 2%, compared to $6.2 million in the same period in the prior year. As a percent of net sales, EBITDA was 21.8% in the 2014 quarter compared with 23.1% in the 2013 quarter.
Gross profit for the 1Q 2014 was $6 million, a decrease of $509,000, or 8%, when compared with a gross profit of $6.5 million in the prior year quarter. Gross profit as a percent of net sales was 21.7% in the 1Q 2014 compared to 24.5% for the same period in 2013. As a percent of net sales, gross profit decreased primarily due to higher fiber costs, higher overhead costs in our converting operation and lower parent roll selling prices.
Mr. Jeff Schoen, President and CEO, stated, "In the 1Q 2014, we delivered a solid quarter, despite challenges in parent roll pricing and fiber costs. Converted product sales and total net sales were higher than the same quarter in the prior year and our penetration into the premium tier market continued to increase, with 45% of our cases shipped being premium tier products."
Mr. Schoen added, "We remain confident that a strong base of business has been established for the coming year. Our quality products and customer-focused approach continue to provide new opportunities for 2014 and beyond. Additionally, the $30.4 million of capital projects we announced in November of 2013 are underway and will significantly increase our capacity to prepare for future growth, and improve our manufacturing flexibility and cost structure. These projects will increase our ability to produce higher quality grades of value and premium tier products supporting our vision of being recognized as a 100% retailer-focused, national supplier of high quality consumer tissue products in the value, premium, and ultra-premium tier product categories."
Orchids Paper Products Company is an integrated manufacturer of tissue paper products serving the at home private label consumer market.
