Posted March 13, 2018
Orchids Paper Products Company reported results for the quarter and year ended December 31, 2017. Net sales in the 4Q 2017 were $43.5 million, up $5.8 million, or 15.4% compared to the year-ago period. Adjusted EBITDA declined $0.7 million to $5.6 million in the 4Q 2017, as the company said in the press release received by Lesprom Network.
Net sales for the year ended December 31, 2017, decreased $2 million, or 1.2%, compared to the year ended December 31, 2016.
Net income in 2017 was $6.7 million or $0.64 per diluted share compared to net income of $12.8 million, or $1.24 per diluted share in 2016. Adjusted net loss for 2017 was $1.8 million, or a net loss of $0.18 per diluted share, compared to 2016 adjusted net earnings of $14.9 million, or $1.44 per diluted share.
Adjusted EBITDA declined $18.3 million to $15.1 million in 2017.
Jeff Schoen, President and CEO, stated, "In the 4Q 2017, Orchids successfully completed its five-year capital expansion plan with the full commercialization and start-up of the new Barnwell facility. The completion of Barnwell expands our geographical footprint with access to the east coast and increases our exposure to the ultra-premium tissue market, which currently is experiencing tight capacity in a growing product segment. As volume at Barnwell ramps, we expect sales growth to continue to accelerate and margins to expand, driven by operating leverage. As a result of completing of our capital expansion plan, we expect to see a significant decrease in capital expenditures in 2018. The goal in 2018 is to "harvest" the capital investments we have made over the past four years to maximize cash flow, reduce debt, and improve earnings."
Orchids Paper Products Company is a customer-focused, national supplier of high quality consumer tissue products primarily serving the at home private label consumer market.