Orchids Paper Products CO /DE

CIK:0001324189|SEC Filings

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Net sales	$ 186,682	$ 162,484	$ 164,494
Cost of sales	189,075	153,758	134,345
Gross profit (loss)	(2,393)	8,726	30,149
Selling, general and administrative expenses	20,150	11,711	10,244
Intangibles amortization	932	932	1,219
Operating income (loss)	(23,475)	(3,917)	18,686
Interest expense	20,165	4,980	1,678
Other income, net	(2,866)	(70)	(214)
Income (loss) before income taxes	(40,774)	(8,827)	17,222
Provision for (benefit from) income taxes:
Current	345	(32,868)	(3,159)
Deferred	(3,447)	17,367	7,570
Total provision for (benefit from) income taxes	(3,102)	(15,501)	4,411
Net Income (loss)	$ (37,672)	$ 6,674	$ 12,811
Net income (loss) per common share:
Basic	$ (3.53)	$ 0.64	$ 1.25
Diluted	$ (3.53)	$ 0.64	$ 1.24
Weighted average common shares used in calculating net income (loss) per common share:
Basic	10,670,348	10,399,074	10,286,373
Diluted	10,670,348	10,414,871	10,349,274
Cash dividends declared per share	$ 0	$ 0.35	$ 1.40

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Cash Flows From Operating Activities
Net (loss) income	$ (37,672)	$ 6,674	$ 12,811
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Depreciation and amortization	19,686	15,219	13,229
Provision for doubtful accounts	(266)	323	(125)
Deferred income taxes	(3,564)	(15,739)	7,570
Insurance settlement	(2,200)	0	0
Stock compensation expense	276	410	566
Loss (gain) on disposal of property, plant and equipment	(3)	52	17
Changes in cash due to changes in operating assets and liabilities:
Accounts receivable, including amounts due to related party	168	(3,745)	2,514
Inventories	(567)	(2,149)	(4,913)
Income taxes receivable	446	8,236	(3,107)
Prepaid expenses	(1,894)	(32)	211
Other assets	399	154	2,237
Accounts payable, including amounts due to related party	(305)	3,388	(973)
Accrued liabilities	7,999	655	(2,210)
Net cash (used in) provided by operating activities	(17,497)	13,446	27,827
Cash Flows From Investing Activities
Purchases of property, plant and equipment	(3,361)	(49,188)	(88,862)
Proceeds from insurance settlement	2,200	51	420
Proceeds from sale of property, plant and equipment	3	0	34
Net cash used in investing activities	(1,158)	(49,137)	(88,408)
Cash Flows From Financing Activities
Proceeds from economic incentive	0	0	1,900
Principal payments on long-term debt	(3,249)	(4,558)	(3,882)
Net borrowings on revolving credit line	28,849	397	16,447
Borrowings on delayed draw term loan	0	36,158	53,820
Payments on delayed draw term loan	(4,212)	(3,195)	0
Borrowings on short-term notes	909	857	0
Payments on short-term notes	(964)	(540)	0
Net proceeds from follow-on stock offering	0	(35)	0
Net proceeds from at-the-market stock offering	(19)	4,966	0
Dividends paid to stockholders	0	(3,607)	(14,400)
Proceeds from the exercise of stock options	0	134	314
Excess tax benefit of stock options exercised	0	0	171
Deferred debt issuance costs	(1,476)	(1,086)	(129)
Net cash provided by financing activities	19,838	29,491	54,241
Total increase (decrease) in cash	1,183	(6,200)	(6,340)
Cash, including restricted cash, beginning	3,826	10,026	16,366
Cash, including restricted cash, ending	5,009	3,826	10,026
Supplemental Disclosure:
Interest paid	10,677	7,850	2,907
Income taxes refunded	(323)	(8,240)	13
Tax benefits realized from stock options exercised	0	59	211
Capital expenditures invoiced but not yet paid	6	1,469	744
Deferred debt issuance costs incurred but not yet paid	3,670	0	0
Capital lease assets	$ 0	$ 34	$ 0

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Current assets:
Cash	$ 4,806	$ 3,823
Accounts receivable, net of allowance of $87 and $353 in 2018 and 2017, respectively	12,334	11,825
Receivables from related party	631	1,042
Inventories, net	21,130	20,563
Income taxes receivable	53	499
Prepaid expenses	2,851	957
Other current assets	439	684
Total current assets	42,244	39,393
Property, plant and equipment (including from consolidated VIE $17,415 and $17,415 in 2018 and 2017, respectively)	373,267	370,761
Accumulated depreciation	(101,736)	(85,003)
Net property, plant and equipment	271,531	285,758
Restricted cash (including from consolidated VIE $3 and $3 in 2018 and 2017, respectively)	203	3
VAT receivable	0	242
Intangible assets, net of accumulated amortization of $5,343 and $4,411 in 2018 and 2017, respectively	12,647	13,579
Goodwill	7,560	7,560
Total assets	334,185	346,535
Current liabilities:
Accounts payable	13,514	12,068
Accounts payable to related party	4,366	3,390
Accrued liabilities	11,203	3,202
Short-term notes payable	262	317
Current portion of long-term debt (Note 8)	187,094	168,903
Total current liabilities	216,439	187,880
Long-term debt including capital leases, less current portion (Note 8)	31	33
Other long-term liabilities (from consolidated VIE)	5,312	5,240
Deferred income taxes	8,031	11,595
Commitment and contingencies (Note 5)
Stockholders' equity:
Common stock, $.001 par value, 25,000,000 shares authorized, 10,670,348 and 10,670,348 shares issued and outstanding in 2018 and 2017, respectively	11	11
Additional paid-in capital	104,616	104,359
Retained earnings (deficit)	(255)	37,417
Total stockholders' equity	104,372	141,787
Total liabilities and stockholders' equity	$ 334,185	$ 346,535