BRENTWOOD, Tenn., Nov. 7, 2017 /PRNewswire/ -- Orchids Paper
Products Company (NYSE American: TIS) today reported results for
the quarter ended September 30, 2017.
The following tables provide selected financial results for third
quarter 2017 compared to third quarter 2016 and second quarter
2017.
|
|
|
|
Q3
2017
|
Q3
2016
|
|
Q2
2017
|
|
|
|
|
(Dollars in
thousands, except per share data) (unaudited)
|
Net sales:
|
|
|
|
|
|
|
Converted
product
|
|
$ 42,007
|
$
38,284
|
|
$
34,697
|
|
Parent
rolls
|
|
3,165
|
1,344
|
|
3,746
|
|
Total net
sales
|
|
$ 45,172
|
$
39,628
|
|
$
38,443
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
$
2,740
|
$
6,215
|
|
$
1,514
|
Net (loss)
income
|
|
$
705
|
$
2,213
|
|
$
(2,047)
|
Diluted net (loss)
income per share
|
|
$
0.07
|
$
0.21
|
|
$
(0.20)
|
EBITDA
|
|
$
2,873
|
$
6,729
|
|
$
1,557
|
Adjusted
EBITDA
|
|
$
3,898
|
$
7,094
|
|
$
2,451
|
|
|
|
|
|
|
|
|
Other Selected
Financial Data:
|
|
|
|
|
|
|
Gross profit
margin
|
|
6.1%
|
15.7%
|
|
3.9%
|
|
EBITDA
margin
|
|
6.4%
|
17.0%
|
|
4.1%
|
|
Adjusted EBITDA
margin
|
|
8.6%
|
17.9%
|
|
6.4%
|
Jeff Schoen, President and Chief
Executive Officer, stated, "Sales in third quarter experienced
strong growth due to incremental volume from new business that
started shipping in June. In August, we announced the
addition of a significant new customer in a new distribution
channel for new ultra-premium products to be manufactured in the
Barnwell, South Carolina
facility. We are on track to begin shipments for this new
customer late in the fourth quarter of 2017, with full
implementation expected by second quarter 2018. We expect to
ship at 50% of the final run rate in December and ramp to full
production in the first quarter of 2018. When this new business is
fully implemented, total Company sales are expected to be between
$220 and $240 million annually."
"We are on track to complete the start-up of the Barnwell facility by the end of 2017, as we
stated previously. The paper machine has met all start-up
expectations and is fully capable of delivering the product quality
and capacity to support the new business."
"In third quarter 2017, our margins were negatively impacted by
higher fiber costs due in part to a slower than expected ramp-up of
Barnwell's fiber preparation and
fiber recovery systems and in part due to an escalation of the
market prices paid for virgin fiber. The fiber preparation and
recovery systems are fully ramped and operational at the time of
this release, and we anticipate this will drive an improvement in
future margins."
Third Quarter 2017 Relative to Third Quarter 2016
Net sales increased $5.5 million,
or 14%, in the third quarter of 2017 compared to the same period in
the prior year. Converted product sales increased $3.7 million as a result of the continuing
ramp-up of previously announced new private-label business. Net
sales of converted product benefitted approximately $4.2 million from increased volume, while a lower
average selling price per ton had a negative impact of
approximately $0.5 million. Parent
roll sales increased $1.8 million,
resulting from ramping-up capacity at the new mill in Barnwell, South Carolina. We generally
endeavor to run our paper-making mills at capacity, and production
that is not needed to support converted product sales is sold as
parent rolls.
Cost of sales increased $9.0
million, or 27%. Standard cost of sales increased
$4.4 million, or 15%, consistent with
the change in sales. Major contributors to the remaining
$4.6 million increase in cost of
sales include: approximately $1.4
million of increased freight cost based on changes in
customer and geographic distributions; approximately $1.7 million of increased material costs,
principally for virgin fiber; approximately $1.9 million of
increased overhead costs not covered by production and sales;
and other factors such as inventory obsolescence resulting from
changes in customers' product lines, certain manufacturing
efficiency variances, and increased fiber and utility costs in the
Mexicali operations. Partially
offsetting these noted changes in costs were approximately
$1.3 million of capitalized variances
that were directly attributable to preproduction test runs
necessary to get Barnwell's new
equipment ready for its intended use.
SG&A expenses increased $0.5
million principally due to contributions of excess inventory
to support hurricane relief efforts and due to increased legal and
professional fees.
Interest expense increased $0.2
million, or 29%, to $0.8
million due principally to increased debt levels. Our
interest rate is largely variable and dependent upon our financial
leverage, and was 5.2% at the end of the third quarter of 2017.
Interest expense for the third quarter of 2017 excludes
$1.6 million of interest capitalized
to the Barnwell, South Carolina,
capital project, pending its completion, compared to capitalized
interest of $0.3 million for the same
period in 2016.
A tax benefit of $2.0 million was
recognized in the third quarter of 2017 compared to tax expense of
$0.7 million in the third quarter of
2016, reflecting both the decline in pre-tax earnings and the
Company's recognition of tax credits.
As a result of the foregoing factors, net income of $0.7 million, or $0.07 per basic share, was recognized in the
third quarter of 2017 compared to net income of $2.2 million, or $0.21 per basic share, in the third quarter of
2016.
Third Quarter 2017 Relative to Second Quarter 2017
Net sales increased $6.7 million,
or 18%, in the third quarter of 2017 compared to the second quarter
of 2017. The increase in net sales principally reflects the
continuing ramp-up of new business, which began to be produced and
shipped late in the second quarter of 2017. Converted product net
sales increased $7.2 million, with
$6.9 million of the increase
attributable to increased volume and $0.3
million due to an increase in the average selling price.
Parent roll sales decreased $0.5
million, reflecting the utilization of increasing mill
capacities to service new converted-product business.
Cost of sales increased $5.5
million, or 15%. Standard cost of sales increased
$4.2 million, or 15%, consistent with
the change in sales. Major contributors to the remaining
$1.3 million increase in cost of
sales include: approximately $0.9
million of increased freight cost based on changes in
customer and geographic distributions; approximately $1.0 million of increased material costs,
principally for virgin fiber; approximately $1.2 million of increased overhead costs not yet
covered by production and sales at the new Barnwell, South Carolina facility; and other
factors such as inventory obsolescence resulting from changes in
customers' product lines and certain manufacturing efficiency
variances. Partially offsetting these noted changes in costs were:
approximately $1.3 million of
variances were capitalized that were directly attributable to
preproduction test runs necessary to get Barnwell's new
equipment ready for its intended use, and Pryor's absorption
variance improved by approximately $0.6
million.
SG&A expenses decreased $0.3
million, reflecting lower expenses resulting from the timing
of employee medical claims, the timing of stock option expense for
annual awards granted to the Board of Directors, and a reduction in
anticipated bonus payouts. The benefit of these reductions to
SG&A expense is partially offset by the previously mentioned
contributions of excess inventory to support hurricane relief
efforts in the third quarter.
Interest expense increased $0.3
million, or 48%, to $0.8
million in the third quarter of 2017 compared to the second
quarter of 2017, due principally to increased debt levels. Third
quarter interest expense excludes $1.6
million of interest capitalized to the Barnwell capital project, compared to
$1.1 million of capitalized interest
in the second quarter of 2017.
A tax benefit of $2.0 million was
recognized in the third quarter of 2017 compared to a tax benefit
of $0.4 million in the second quarter
of 2017, reflecting the Company's year-to-date pre-tax net loss
position and the Company's recognition of tax credits. Tax
provisions are calculated based on year-to-date and full-year
projected taxable income, so the quarter contained catch-up
adjustments to realign tax expenses for the year.
As a result of the foregoing factors, net income of $0.7 million, or $0.07 per basic share, was recognized in the
third quarter of 2017 compared to a net loss of $2.0 million, or ($0.20) per basic share, in the second quarter of
2017.
Liquidity
|
|
|
|
Q3
2017
|
Q3
2016
|
|
Q2
2017
|
|
|
|
|
(Dollars in
thousands) (unaudited)
|
Cash Flow Provided by
(Used in):
|
|
|
|
|
|
Operating
cash flow net of changes in working capital
|
|
$
2,309
|
$
9,900
|
|
$
1,188
|
Changes
in working capital
|
|
924
|
(6,050)
|
|
262
|
Operating activities
|
|
$
3,233
|
$
3,850
|
|
$
1,450
|
Investing activities
|
|
$
(7,417)
|
$ (24,776)
|
|
$ (17,318)
|
Financing activities
|
|
$
4,936
|
$
23,251
|
|
$
11,418
|
|
|
|
|
|
|
|
|
Cash balance,
beginning
|
|
$
1,327
|
$
6,236
|
|
$
5,777
|
Cash balance,
ending
|
|
$
2,079
|
$
8,561
|
|
$
1,327
|
At September 30, 2017, Debt, not
having been netted with unamortized deferred debt issuance costs,
was $171.5 million and was largely
incurred to finance the construction of our integrated converting
facility in Barnwell, South
Carolina. The Barnwell
facility was completed at the end of the third quarter of 2017,
with the exception of the recycled-fiber processing plant that is
operational in November 2017. The
Company anticipates little capital remains to be spent on the
recycled-fiber processing plant. The total projected expenditure
for the Barnwell facility is
approximately $164 million, inclusive
of approximately $5.2 million of
accrued, unpaid bills and amounts under open purchase orders.
At September 30, 2017, the Company
was not in compliance with certain financial covenants under its
Credit Agreement and New Market Tax Credit Financing Agreement, and
obtained a waiver from its lenders. The financial covenants under
the Credit Agreement, as amended, required the Company to maintain
a minimum fixed charge coverage ratio of 1.05 to 1.0 and a maximum
leverage ratio of 5.5 to 1.0 at September
30, 2017. The Company's leverage ratio was 10.9, and the
fixed charge coverage ratio was (1.4) as of September 30, 2017. On November 7, 2017, the Company entered into
Amendment No. 6 to its Credit Agreement, which, in addition to
providing a waiver for the existing defaults, provides for a
minimum EBITDA covenant, amends the pricing schedule, and amends
certain reporting requirements. Including the amendments
incorporated into this waiver, the Company's credit facilities have
been amended for each of the last four quarters. The financial
covenant requirements in effect at this time are as follows: fixed
charge coverage ratios of 1.05 to 1 at September 30, 2017 and 1.2 to 1 at December 31, 2017 and quarter-ends thereafter,
leverage ratios of 5.5, 4.5, and 3.5 at September 30, 2017, December 31, 2017, and March 31, 2018 and quarter-ends thereafter;
minimum EBITDA for the most recent three-month period of
$4.0 million, $4.8 million, and $5.0
million at October 31, 2017,
November 30, 2017, and December 31, 2017 and as of the last day of
each month thereafter.
The Company is seeking to refinance its existing long-term debt
obligations within the fourth quarter of 2017. The Company may also
need to seek another waiver of these and other financial covenants
for the fourth quarter of 2017 in order to continue operating under
the existing terms of the credit facilities. If the Company is
unable to obtain another waiver of these financial covenants and/or
a refinancing is not completed, the bank syndicate could declare a
default. There can be no assurance that the Company's lenders will
agree to further waivers or amendments to the existing debt
covenants. While management intends to amend or refinance the debt,
there can be no assurance that the Company will be able to obtain
additional financing on terms that are satisfactory to it or at
all. As of September 30, 2017, the
borrowings under the Credit Agreement and the term loan otherwise
due in 2022 were classified as current on the balance sheet due to
these uncertainties regarding the Company's ability to meet the
existing debt covenants over the next twelve-month period. The
Company's cash requirements have historically been satisfied
through a combination of cash flows from operations, equity
financings and debt financings. We expect this trend to
continue.
Third Quarter 2017 Relative to Third Quarter 2016: Operating
cash flows, excluding changes in working capital, decreased
$7.6 million compared to the third
quarter of 2016, primarily reflecting the decrease in net income,
net of changes in deferred taxes. Changes in working capital
provided $0.9 million of operating
cash flows in the third quarter of 2017, principally as accounts
payable decreased a bit more than accounts receivable increased.
This compares to $6.1 million of cash
used for working capital in the third quarter of 2016, principally
from a decrease in accrued Barnwell liabilities and increases in accounts
receivable and prepaids, as partially offset by a decrease in
income taxes receivable. Increased borrowings in both periods were
used to finance investments in the Barnwell facility. In 2015, the Company
received $12.0 million of restricted
cash from financings, of which $1.2
million and $3.6 million was
used in third quarter 2017 and 2016, respectively, for the
Barnwell facility and was,
accordingly, included in Investing activities. The Company paid
dividends of $3.6 million in the
third quarter of 2016, which are included in Financing
activities.
Third Quarter 2017 Relative to Second Quarter 2017: Operating
cash flows excluding changes in working capital increased
$1.1 million compared to the second
quarter of 2017, primarily reflecting the increase in net income,
net of changes in deferred taxes. Changes in working capital
provided $0.9 million of operating
cash flows in the third quarter of 2017, as described above,
compared to $0.3 million provided in
the second quarter of 2017. Additional borrowings in both periods
were used to finance investments in the Barnwell facility. The Company paid dividends
of $3.6 million in the second quarter
of 2017, which are included in Financing activities.
Conference Call/Webcast
The Company will hold a teleconference to discuss its third
quarter results at 10:00 a.m. (ET) on
Wednesday, November 8, 2017.
All interested parties may participate in the teleconference by
calling 888-346-7791 and requesting the Orchids Paper Products
teleconference. A question and answer session will be part of the
teleconference's agenda. Those intending to access the
teleconference should dial in fifteen minutes prior to the start.
The call may also be accessed live via webcast through the
Company's website at www.orchidspaper.com under "Investors." A
replay of the teleconference will be available for 30 days on the
Company's website.
Non-GAAP Financial Measures
This press release contains non-GAAP financial measures. A
non-GAAP financial measure is a numerical measure of a company's
financial performance that excludes or includes amounts so as to be
different than the most directly comparable measure calculated and
presented in accordance with Generally Accepted Accounting
Principles ("GAAP") in the United
States in the statement of income, balance sheet or
statement of cash flows of a company. The non-GAAP financial
measures used within this press release are: (1) EBITDA, (2)
Adjusted EBITDA, (3) Operating Cash Flow, less changes in working
capital, and (4) Changes in working capital.
EBITDA, Adjusted EBITDA, Operating Cash Flow less changes in
working capital, and Changes in working capital are not
measurements of financial performance under GAAP and should not be
considered as an alternative to net income, operating income,
diluted net income per share or any other performance measure
derived in accordance with GAAP, or as an alternative to cash flow
from operating activities or a measure of our liquidity. EBITDA
represents net income before net interest expense, income tax
expense, depreciation and amortization. Adjusted EBITDA is EBITDA
before non-cash stock-based compensation expense and sporadic
expenses, such as foreign exchange adjustments and relocation
costs. Changes in working capital is the subtotal of changes in
operating assets and liabilities shown on the Consolidated
Statements of Cash Flows. Operating Cash Flow less changes in
working capital is Net Cash provided by operating activities less
Changes in working capital. Management believes EBITDA and Adjusted
EBITDA facilitate operating performance comparisons between periods
and between companies by eliminating potential differences caused
by variations in capital structures (affecting relative interest
expense), tax positions (such as the impact on periods or companies
of changes in effective tax rates or net operating losses), the age
and book depreciation of facilities and equipment (affecting
relative depreciation expense), non-cash compensation (affecting
stock-based compensation expense), and sporadic expenses
(including foreign exchange adjustments and relocation costs).
These measures are also commonly used in the industry and are used
by our lenders in monitoring adherence to covenants. Management
believes that Changes in working capital provides an indication of
the cash invested in or provided by changes in operating assets and
liabilities and therefore may indicate trends in operating
performance and may call out a significant source or use of cash
during any period. Operating Cash Flow less changes in working
capital is believed to provide an estimate of the cash generated
from all operating activities, prior to investments in or
liquidations of operating assets and liabilities and therefore may
indicate trends in operating performance and may call out
significant changes in the generation of cash through operating
activities.
Forward-Looking Statements
This release contains forward-looking statements that involve
certain contingencies and uncertainties. The Company intends
these forward-looking statements to be covered by the safe harbor
provision for forward-looking statements contained in the Private
Securities Litigation Reform Act of 1995. These statements
relate to future events or future financial performance, and
involve known and unknown risks, uncertainties and other factors
that may cause its actual results, levels of activity, performance
or achievements to be materially different from any future results,
levels of activity, performance or achievements expressed or
implied by such forward-looking statements. In some cases,
forward-looking statements can be identified by terminology such as
"may," "should," "could," "expects," "plans," "intends,"
"anticipates," "believes," "estimates," "predicts," "potential,"
"will" or "continue" or the negative of such terms or other
comparable terminology. Such forward-looking statements include,
without limitation, the Company's beliefs, expectations, focus
and/or plans about future events, including those regarding any
potential refinancing, and the terms, conditions, timing and costs
of any such refinancing. Although the Company believes that
the expectations reflected in the forward-looking statements are
reasonable, it cannot guarantee future results, levels of activity,
performance or achievements. These statements are only
predictions.
Factors that could materially affect the Company's actual
results, levels of activity, performance or achievements include,
without limitation, those detailed under the caption "Risk Factors"
in the Company's Annual Report on Form 10-K for the year ended
December 31, 2016, as filed with the
Securities and Exchange Commission on March
15, 2017.
The Company's actual results may be materially different from
what it expects. The Company does not undertake any duty to
update these forward-looking statements after the date hereof, even
though the Company's situation may change in the future. All
of the forward-looking statements herein are qualified by these
cautionary statements.
About Orchids Paper Products Company
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. The Company
produces a full line of tissue products, including paper towels,
bathroom tissue and paper napkins, to serve the value through
ultra-premium quality market segments from its operations in
northeast Oklahoma, Barnwell, South Carolina and Mexicali, Mexico. The Company provides these
products primarily to retail chains throughout the United
States. For more information on the Company and its products,
visit the Company's website at http://www.orchidspaper.com.
Orchids Paper
Products Company and Subsidiaries
|
Selected Income
Statement Data
|
(Dollars in
thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
September 30,
|
|
Q3
2017
|
Q3
2016
|
|
Q2
2017
|
|
2017
|
|
2016
|
|
(unaudited)
|
Converted product net
sales
|
$
42,007
|
$
38,284
|
|
$
34,697
|
|
$
109,602
|
|
$
122,867
|
Parent roll net
sales
|
3,165
|
1,344
|
|
3,746
|
|
9,367
|
|
3,918
|
Total net
sales
|
45,172
|
39,628
|
|
38,443
|
|
118,969
|
|
126,785
|
Cost of sales less
depreciation
|
39,315
|
30,504
|
|
33,712
|
|
103,188
|
|
93,675
|
Depreciation in cost
of sales
|
3,117
|
2,909
|
|
3,217
|
|
9,558
|
|
8,641
|
Total cost of
sales
|
42,432
|
33,413
|
|
36,929
|
|
112,746
|
|
102,316
|
Gross
profit
|
2,740
|
6,215
|
|
1,514
|
|
6,223
|
|
24,469
|
Selling, general
& administrative expenses
|
3,026
|
2,557
|
|
3,289
|
|
8,934
|
|
7,783
|
Intangible
amortization
|
233
|
233
|
|
233
|
|
699
|
|
986
|
Operating (loss)
income
|
(519)
|
3,425
|
|
(2,008)
|
|
(3,410)
|
|
15,700
|
Interest
expense
|
827
|
639
|
|
560
|
|
1,904
|
|
1,187
|
Other (income)
expense, net
|
(42)
|
(162)
|
|
(115)
|
|
(324)
|
|
(527)
|
(Loss) income before
income taxes
|
(1,304)
|
2,948
|
|
(2,453)
|
|
(4,990)
|
|
15,040
|
(Benefits from)
provision for income taxes
|
(2,009)
|
735
|
|
(406)
|
|
(2,788)
|
|
4,850
|
Net (loss)
income
|
$
705
|
$
2,213
|
|
$
(2,047)
|
|
$
(2,202)
|
|
$
10,190
|
|
|
|
|
|
|
|
|
|
Average number of
shares outstanding, basic
|
10,429,091
|
10,296,891
|
|
10,367,315
|
|
10,366,373
|
|
10,282,841
|
Average number of
shares outstanding, diluted
|
10,429,091
|
10,367,660
|
|
10,367,315
|
|
10,366,373
|
|
10,351,415
|
|
|
|
|
|
|
|
|
|
Net (loss) income per
share:
|
|
|
|
|
|
|
|
|
Basic
|
$
0.07
|
$
0.21
|
|
$
(0.20)
|
|
$
(0.21)
|
|
$
0.99
|
Diluted
|
$
0.07
|
$
0.21
|
|
$
(0.20)
|
|
$
(0.21)
|
|
$
0.98
|
|
|
|
|
|
|
|
|
|
Cash dividends
paid
|
$
-
|
$
3,604
|
|
$
3,607
|
|
$
3,607
|
|
$
10,797
|
Cash dividend
declared per share
|
$
-
|
$
0.35
|
|
$
-
|
|
$
0.35
|
|
$
1.05
|
Orchids Paper
Products Company and Subsidiaries
|
Selected Balance
Sheet Data
|
(Dollars in
thousands)
|
|
|
|
|
|
|
|
Sep. 30,
2017
|
|
Dec. 31,
2016
|
|
|
(unaudited)
|
|
|
Cash
|
|
$
2,079
|
|
$
8,750
|
Accounts receivable,
net
|
|
15,753
|
|
8,954
|
Inventory,
net
|
|
20,884
|
|
18,414
|
Other current assets,
inclusive of amounts due from related parties
|
|
6,070
|
|
11,019
|
Property plant and
equipment
|
|
369,047
|
|
320,442
|
Accumulated
depreciation
|
|
(80,816)
|
|
(71,258)
|
Net property plant
and equipment
|
|
288,231
|
|
249,184
|
Intangibles and
goodwill, net
|
|
21,372
|
|
22,071
|
Other long-term
assets
|
|
236
|
|
1,488
|
Total
assets
|
|
$
354,625
|
|
$
319,880
|
|
|
|
|
|
Accounts payable,
inclusive of amounts due to related parties
|
|
$
21,576
|
|
$
10,869
|
Other current
liabilities
|
|
4,378
|
|
2,545
|
Current portion of
long-term debt
|
|
169,392
|
|
6,728
|
Deferred income
taxes
|
|
24,364
|
|
27,334
|
Long-term
liabilities
|
|
5,255
|
|
139,159
|
Total stockholders'
equity
|
|
129,660
|
|
133,245
|
Total liabilities and
stockholders' equity
|
|
$
354,625
|
|
$
319,880
|
|
|
|
|
|
Debt, current and
long term
|
|
$
169,425
|
|
$
140,717
|
Orchids Paper
Products Company and Subsidiaries
|
Reconciliations of
Non-GAAP and GAAP Measurements
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
September 30,
|
|
Q3
2017
|
Q3
2016
|
|
Q2
2017
|
|
2017
|
|
2016
|
|
(Dollars in
thousands) (unaudited)
|
EBITDA
Reconciliation:
|
|
|
|
|
|
|
|
|
Net (loss)
income
|
$
705
|
$
2,213
|
|
$
(2,047)
|
|
$ (2,202)
|
|
$ 10,190
|
Plus: Interest
expense
|
827
|
639
|
|
560
|
|
1,904
|
|
1,187
|
Plus: Income tax
(benefit) expense
|
(2,009)
|
735
|
|
(406)
|
|
(2,788)
|
|
4,850
|
Plus:
Depreciation
|
3,117
|
2,909
|
|
3,217
|
|
9,558
|
|
8,641
|
Plus: Intangible
amortization
|
233
|
233
|
|
233
|
|
699
|
|
986
|
Earnings Before
Interest, Income Tax and Depreciation and Amortization
(EBITDA)
|
$
2,873
|
$
6,729
|
|
$
1,557
|
|
$
7,171
|
|
$ 25,854
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
Reconciliation:
|
|
|
|
|
|
|
|
|
EBITDA
|
$
2,873
|
$
6,729
|
|
$
1,557
|
|
$
7,171
|
|
$ 25,854
|
Plus: Stock compensation expense
|
99
|
69
|
|
168
|
|
365
|
|
604
|
Plus: Relocation costs
|
(50)
|
296
|
|
(70)
|
|
(126)
|
|
635
|
Plus: Barnwell start-up costs
|
975
|
-
|
|
760
|
|
2,047
|
|
-
|
Plus: Foreign exchange (gain) loss
|
1
|
-
|
|
(23)
|
|
(44)
|
|
-
|
Plus: Severance from reduction in force
|
-
|
-
|
|
59
|
|
59
|
|
-
|
Adjusted
EBITDA
|
$
3,898
|
$
7,094
|
|
$
2,451
|
|
$
9,472
|
|
$ 27,093
|
|
|
|
|
|
|
|
|
|
Separation of
Operating Cash Flow measures:
|
|
|
|
|
|
|
|
|
Cash Flows From
Operating Activities
|
|
|
|
|
|
|
|
|
Net (loss)
income
|
$
705
|
$
2,213
|
|
$
(2,047)
|
|
$ (2,202)
|
|
$ 10,190
|
Adjustments to
reconcile net (loss) income to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
3,523
|
3,220
|
|
3,577
|
|
10,650
|
|
9,865
|
Provision for
doubtful accounts
|
-
|
-
|
|
(20)
|
|
-
|
|
-
|
Deferred income
taxes
|
(2,070)
|
4,407
|
|
(490)
|
|
(2,970)
|
|
6,624
|
Stock compensation
expense
|
99
|
69
|
|
168
|
|
365
|
|
604
|
Loss on disposal of
property, plant and equipment
|
52
|
(9)
|
|
-
|
|
52
|
|
(18)
|
Subtotal,
"Operating cash flow less changes in working
capital"
|
$
2,309
|
$
9,900
|
|
$
1,188
|
|
$
5,895
|
|
$ 27,265
|
Changes in cash due
to changes in operating assets and liabilities:
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
(2,508)
|
(3,335)
|
|
(2,647)
|
|
(7,567)
|
|
(1,541)
|
Inventories
|
52
|
(228)
|
|
(2,674)
|
|
(2,470)
|
|
(6,948)
|
Income taxes
receivable
|
-
|
2,628
|
|
3,477
|
|
5,350
|
|
2,628
|
Prepaid
expenses
|
(903)
|
(2,119)
|
|
340
|
|
(297)
|
|
(2,753)
|
Other
assets
|
883
|
444
|
|
(180)
|
|
649
|
|
1,490
|
Accounts
payable
|
3,373
|
791
|
|
1,134
|
|
6,136
|
|
1,843
|
Accrued
liabilities
|
27
|
(4,231)
|
|
812
|
|
600
|
|
(1,725)
|
Subtotal, "Changes
in working capital"
|
$
924
|
$
(6,050)
|
|
$
262
|
|
$
2,401
|
|
$ (7,006)
|
Net cash provided by
operating activities
|
$
3,233
|
$
3,850
|
|
$
1,450
|
|
$
8,296
|
|
$ 20,259
|
View original content with
multimedia:http://www.prnewswire.com/news-releases/orchids-paper-products-company-announces-third-quarter-2017-results-300551625.html
SOURCE Orchids Paper Products Company