Orchids Paper Products Company Announces Unaudited Consolidated Earnings and Operating Results for the First Quarter Ended March 31, 2016; Provides Earnings Guidance for the Second Quarter and Full Year of 2016
For the quarter, the company reported total tons shipped was 26.199 million against 18.837 million a year ago.
The company announced until the contract resets on June 1, 2016 will share margins under the terms of the contract, which expects will reduce earnings in the 2016 second quarter by approximately $1.0 million compared to the first quarter.
For the year 2016, the company expects net sales to be in the range of $190 million to $200 million. The company expects adjusted EBITDA margin estimate for the full year in the 20% to 22% range. Cash flow from operation is expected to range between $9 million and $10 million per quarter for the remainder of 2016. The company expects capital expenditure to pass $94 million, including $85 million for Barnwell and $9 million for the facility in Oklahoma. The company expects effective tax rate for the full year to be 34.2%.