Orchids Paper Products Company Announces Fourth Quarter And Full Year 2017 Results
"The fourth quarter of 2017 was the first quarter since 2014 that we generated positive free cash-flow (cash flow from operations less capital expenditures), driven by strong operating cash flow, up approximately 60% over the prior quarter, and lower capital expenditures, which declined over 40% from the third quarter.
"Our lenders continue to support us as our Barnwell facility ramps, providing us covenant waivers for the fourth quarter of 2017 as well as the first quarter of 2018. They have also increased the advance rates under our line of credit to provide financial flexibility for working capital needs as we ramp our new orders"
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Still going through the details. Orchids recognized a tax benefit of $12.7 million in the fourth quarter of 2017, which included the estimated impact of the new tax laws upon future tax years.
As a result of the foregoing factors, Orchids recognized net income of $8.9 million, or $0.85 per diluted share, in the fourth quarter of 2017 compared to net income of $0.7 million, or $0.07 per diluted share, in the third quarter of 2017. w/o the tax benefit, they reported a modest loss.
There is a huge improvement from 2016 vs 2017.
FWIW this is not good:
On March 2, 2018, Rodney D. Gloss, Chief Financial Officer of Orchids, advised the Board of Directors of the Company of his intention to resign, effective March 16, 2018. Mr. Gloss will remain with the Company through March 16, 2018 to facilitate an orderly transition of his duties.
Another CFO . . .
The positive is positive FCF at end of year even w/ seasonal low prices. The negative is now at full capacity, not generate positive EPS.
EKS |
