Orchids Paper Products Company recently reported net income for the three months ended December 31, 2009 of $3.2 million, or $0.40 per diluted share, compared with $2.3 million or $0.34 per diluted share, in the same period in 2008. For the full year of 2009, net income was $13.6 million, or $1.89 per diluted share, an increase of $8.4 million compared to net income of $5.2 million, or $0.79 per diluted share, for the full year of 2008. The earnings per share figure for both periods in 2009 include the effects of the follow-on offering of 862,500 shares of common stock completed in the third quarter of 2009.
Net sales in the quarter ended December 31, 2009 were $23.6 million, a decrease of $700,000 or 3%, compared to $24.3 million in the same period of 2008. Net sales of converted product were $20.9 million in the 2009 quarter, slightly under the $21.1 million in the same quarter last year. Net sales of parent rolls were $2.7 million in the fourth quarter of 2009, a decrease of $430,000, or 14%, compared to $3.2 million of parent roll sales in the same quarter last year. The 1% decrease in converted product sales resulted from a decrease of approximately 2.5% in net selling prices of converted product which was somewhat offset by a 1% increase in converted tonnage shipped. Net sales of parent rolls were negatively affected by a 27% decrease in net selling price which was partially offset by an 18% increase in the tonnage shipped.
