Orchids Paper Products Company announced unaudited consolidated earnings and operating results for the first quarter ended March 31, 2016. For the quarter, the company reported net sales were $47.743 million against $37.415 million a year ago. Operating income was $8.28 million against $1.91 million a year ago. Income before income taxes was $8.22 million against $1.884 million a year ago. Net income was $5.409 million against $1.236 million a year ago. Diluted earnings per share were $0.52 against $0.14 a year ago. Cash flow provided by operating activities was $8.86 million against $5.55 million a year ago. EBITDA was $11.5 million against $4.56 million a year ago. Adjusted EBITDA was $11.646 million against $4.83 million a year ago. Adjusted net income was $5.76 million against $1.66 million a year ago. Adjusted diluted earnings per share were $0.56 against $0.19 a year ago. Net debt as of March 31, 2016 was $84.85 million against $71.22 million as of December 31, 2015. The company announced $25.6 million of capital expenditures, offset by the release of $4.8 million of restricted cash in connection with capital expenditures incurred for South Carolina facility. Capital expenditures in the quarter were $25.6 million, including $21.3 million of expenditures on the Barnwell project.

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%.