Orchids Paper Products Company reports 3Q net sales of $25.8 million

Oct 24, 2012. /Lesprom Network/. Orchids Paper Products Company reported 3Q 2012 financial results. Net sales in the 3Q ended September 30, 2012 were $25.8 million, a decrease of $332,000, or 1%, compared to $26.1 million in the same period of 2011. Net sales of converted product were $22.8 million in the 2012 quarter, favorable by $1.4 million, or 6%, compared to the $21.4 million of net sales in the same quarter last year, 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, 2012 was $5.3 million, an increase of $1.1 million, or 27%, compared to $4.2 million in the same period in the prior year. As a percent of net sales, EBITDA was 20.6% in the 2012 quarter compared with 16.1% in the 2011 quarter. Gross profit for the 3Q 2012 was $5.4 million, an increase of $1.5 million, or 37%, when compared with a gross profit of $3.9 million in the prior year quarter. Gross profit as a percent of net sales was 20.9% in the 3Q 2012 compared to 15.1% for the same period in 2011. As a percent of net sales, gross profit increased primarily due to increased levels of converted product shipments, lower fiber prices, and lower per case converting production costs, which were partially offset by higher maintenance and repair costs in the paper manufacturing operation. Robert Snyder, President and CEO, stated, "We are pleased to announce our results for the 3Q, which were in line with our expectations. Our converted product business continues to show strength, as evidenced by our above market improvement in shipments in the third quarter of this year. More importantly, we anticipate that our recently announced new business gains will increase our annual run rate by approximately 1.1 million cases, providing for a strong ending to 2012 and a solid foundation for the beginning of 2013." Mr. Snyder added, "The market for business opportunities continues to be strong. We are optimistic about our future growth, as we leverage our new product development and market strategy to further penetrate mid-tier market opportunities with new and existing customers." Net sales for the nine-month period ended September 30, 2012 increased $4.6 million, or 6%, to $76.8 million when compared to the $72.2 million reported for the prior year period. Net sales of converted product were $68.7 million for the 2012 period, an increase of $10.6 million, or 18%, when compared to the prior year period. Earnings before interest, taxes, depreciation and amortization (EBITDA) in the nine-month period ended September 30, 2012 was $16 million, an increase of $5.3 million, or 49%, compared to $10.7 million in the same period in the prior year. As a percent of net sales, EBITDA was 20.8% in the 2012 period compared with 14.9% in the 2011 period. Gross profit for the nine-month period ending September 30, 2012 was $17.1 million, an increase of $6.7 million, or 65%, over the $10.4 million for the 2011 period. Orchids Paper Products Company is an integrated manufacturer of tissue paper products serving the at home private label consumer market. From its operations in north east Oklahoma, 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.