May 01, 2008. /Lesprom.com/. Orchids Paper Products Company reported net income for the three months ended March 31, 2008 of $611,000, or $.09 per diluted share, compared with a net loss of $131,000, or $0.02 per diluted share, in the same period in 2007. Net sales for the 2008 quarter were $20.3 million, an increase of 22% over the $16.6 million reported for the same quarter of 2007. The increase in net sales was primarily the result of a more than two-fold increase in parent roll shipments, a 9% increase in the selling price per ton of converted products, and, to a lesser extent, a 20% increase in the selling price of parent rolls. Financial results for the 1Q 2008 were negatively affected by increased waste paper prices, an unplanned shutdown in January of the company's newest paper machine and higher selling, general and administrative expenses. Waste paper prices increased approximately 22% in the 1Q 2008 compared to the same period in 2007, resulting in approximately $1 million of increased costs. In the 1Q 2008, earnings before interest, taxes, depreciation and amortization (EBITDA) increased $617,000 to $2.1 million, a 43% increase compared to $1.4 million in the same period of 2007. As a percent of net sales, EBITDA was 10.2% in the first quarter of 2008 compared with 8.7% in the same period in 2007. Commenting on the results, Mr. Robert Snyder, President and CEO, stated, "The tissue industry continues to face cost pressures as evidenced by the increase in waste paper pricing during the 1Q 2008, which had a significant negative effect on our operating results. We have begun taking action in our product pricing and product content to counteract waste paper and other cost increases. Our management is continuing its efforts to reduce operating costs by focusing on continuous improvement efforts in productivity and the cost effectiveness of our production facilities." Orchids Paper Products Company is an integrated manufacturer of tissue paper products serving the private label consumer market. The Company produces a full line of tissue products, including paper towels, bathroom tissue and paper napkins.