Orchids Paper Products Company reports net sales of $100.8 million

Feb 07, 2013. /Lesprom Network/. Orchids Paper Products Company's net sales in the 4Q ended December 31, 2012 were $24 million, a decrease of $1.7 million, or 6%, compared to $25.7 million in the same period of 2011, as the company said in a press release received by Lesprom Network. Earnings before interest, taxes, depreciation and amortization (EBITDA) in the quarter ended December 31, 2012 was $5.4 million, a decrease of $142,000, or 3%, compared to $5.5 million in the same period in the prior year. As a percent of net sales, EBITDA was 22.3% in the 2012 quarter compared with 21.4% in the 2011 quarter. Gross profit for the 4Q 2012 was $5.4 million, a decrease of $157,000, or 3%, when compared with a gross profit of $5.6 million in the prior year quarter. Gross profit as a percent of net sales was 22.6% in the 4Q 2012 compared to 21.8% for the same period in 2011. As a percent of net sales, gross profit increased primarily due to lower fiber prices and lower maintenance and repair costs in the paper manufacturing operation, being partially offset by the lower sales of converted product and higher converting production per unit costs during the quarter. On December 18, 2012, the Company paid dividends totaling $1.9 million, or $0.25 per share, to stockholders of record as of December 3, 2012. The Company paid dividends totaling $6.4 million, or $0.85 per share, to stockholders during the twelve months ended December 31, 2012. Net sales for the twelve-month period ended December 31, 2012 increased $3 million, or 3%, to $100.8 million when compared to the $97.8 million reported for the prior year period. Earnings before interest, taxes, depreciation and amortization (EBITDA) in the twelve-month period ended December 31, 2012 was $21.3 million, an increase of $5.1 million, or 31%, compared to $16.2 million in the same period in the prior year. As a percent of net sales, EBITDA was 21.2% in the 2012 period compared with 16.6% in the 2011 period. Gross profit for the twelve-month period ending December 31, 2012 was $22.6 million, an increase of $6.6 million, or 41%, over the $16.0 million for the 2011 period. The improvement is primarily the result of lower fiber prices, higher converted product sales and lower per unit converting production costs, which were partially offset by higher maintenance and repair costs in the paper manufacturing operation. Mr. Robert Snyder, President and CEO, stated, "We are pleased to announce that our full year results include record sales levels for both converted product and total net sales, with converted product shipments of just over 7 million cases. This achievement continues our long-term trend of increasing sales. Shipments of the previously announced new business gains of approximately 1.1 million cases are proceeding within our expectations and we are off to a strong start in 2013. Additionally, we have secured additional new business that we expect will increase our annual run rate by the third quarter of 2013 to approximately 9 million cases." Mr. Snyder added, "Our expected business growth in 2013 is the result of our continued success in penetrating the mid and premium tier market. These successes are a result of the diligent efforts of our team to further product development, implement our market strategy and deliver best in class customer service. The market for business opportunities continues to be strong and we are optimistic about our future growth." 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.