Orchids Paper Products Company's net sales in the 3Q were $29.8 million, an increase of $4 million, or 15%, compared to $25.8 million in the same period of 2012, as the company said in the press release received by Lesprom Network.
Earnings before interest, taxes, depreciation and amortization (EBITDA) in the quarter ended September 30, 2013 was $6.9 million, an increase of $1.6 million, or 30%, compared to $5.3 million in the same period in the prior year. As a percent of net sales, EBITDA was 23.3% in the 2013 quarter compared with 20.6% in the 2012 quarter.
Robert Snyder, President and CEO, stated, "In the 3Q 2013, we delivered another strong quarter and established new quarterly records for total net sales, converted product net sales and EBITDA. The strong sales performance coupled with good cost controls and lower fiber prices helped drive our record profits. Our converted product business momentum has continued to build with shipments achieving a record level during the 3Q."
Mr. Snyder added, "We anticipate growth in our converted product business due to our ability to manufacture a full spectrum of quality grades from opening price point to premium tier, which enhances our ability to grow our sales beyond market growth rates. Shipment volumes in the fourth quarter of this year are expected to slightly exceed those achieved in the 3Q. As a result, our full year shipments are expected to exceed 2012 levels by approximately 17%. We have established a strong base of business for the coming year and continue to work on new business for 2014."
Net sales in the nine-month period ended September 30, 2013 were $85.6 million, an increase of $8.8 million, or 11%, compared to $76.8 million in the same period of 2012.
Earnings before interest, taxes, depreciation and amortization (EBITDA) in the nine-month period ended September 30, 2013 was $19.5 million, an increase of $3.5 million, or 22%, compared to $16 million in the same period in the prior year. As a percent of net sales, EBITDA was 22.7% in the 2013 period compared with 20.8% in 2012.
Gross profit for the first nine months of 2013 was $20.7 million, an increase of $3.5 million, or 21%, when compared with a gross profit of $17.1 million in the prior year period. Gross profit as a percent of net sales was 24.1% in the nine-month period of 2013 compared to 22.3% for the same period in 2012. As a percent of net sales, gross profit increased primarily due to a higher percentage of converted product sales, lower fiber prices and lower paper manufacturing costs being partially offset by external warehousing costs.
Orchids Paper Products Company is an integrated manufacturer of tissue paper products serving the at home private label consumer market. The Company produces a full line of tissue products, including paper towels, bathroom tissue and paper napkins, to serve the value through premium quality market segments.
