Orchids Paper Products Co. (NYSE AMEX:TIS)

Fourth Quarter and Full Year 2011 Results

• Net sales of converted product in the fourth quarter of 2011 were $23.8 million, a new quarterly record, and exceeded those of the prior year quarter by $7.2 million, or 44%, marking four consecutive quarters of increased converted product sales.
• Total net sales in the fourth quarter of 2011 increased 15% to $25.7 million, compared with $22.3 million in the same period in 2010. Full year net sales increased $5.3 million, or 6%, to $97.8 million, compared with $92.5 million in 2010.
• Fourth quarter 2011 net income was $2.7 million, an increase of $1.8 million compared with $940,000 of net income in the same period of 2010. Full year net income for 2011 was $6.2 million, an increase of $284,000, or 5%, compared with $5.9 million of net income in 2010.
• Diluted net income per share for the fourth quarter 2011 was $0.35 per diluted share compared with $0.12 per diluted share in the same period in 2010. Full year diluted net income per share for 2011 was $0.80 compared with $0.76 per diluted share for 2010.

Mr. Robert Snyder, President and Chief Executive Officer, stated, "We are pleased to announce a new quarterly sales record in converted product for the fourth quarter of 2011 and the continued improvement in overall results in the quarter. This marks the fourth consecutive quarter of increased converted product sales, with fourth quarter 2011 sales being 44% greater than those achieved in the fourth quarter of the prior year. Net income and earnings per share both increased for the third consecutive quarter. Fiber prices significantly abated during the quarter and we begin 2012 at cost levels approximately 40% below the peak prices paid during the third quarter of 2011."

Mr. Snyder added, "Our order book remains strong despite entering a seasonally soft quarter and significant new business opportunities are active. As result, we are very positive about the short and long-term outlook and financial performance of the company."

PRYOR, Okla., Nov. 9, 2011 /PRNewswire/ -- The Board of Directors of Orchids Paper Products Company (NYSE Amex: TIS) today announced that it has approved an increase in its quarterly cash dividend from $0.10 per outstanding share to $0.20 per outstanding share of the Company's common stock. The increased dividend will be effective for the dividend payable on December 21, 2011, to stockholders of record at the close of business on December 5, 2011.

The Company's President and Chief Executive Officer Bob Snyder said "Substantially increasing our dividend is reflective of our current performance and demonstrates the confidence that the Board of Directors has in our strategy and their continued optimistic outlook for the long-term growth of our Company. This dividend increase emphasizes our commitment to create long-term value for our stockholders."

Commenting on 2009 second quarter  results, Mr. Robert Snyder, President and Chief Executive Officer, stated, "I am very pleased with the record earnings and sales this quarter. Our financial performance continues to strengthen our balance sheet. We are excited about the future here at Orchids as we continue to grow our business. To that end, we have several projects underway, including the construction of a new warehousing complex that will be located adjacent to the converting plant. We are also evaluating the addition of another converting line."

Commenting on the [3rd Qtr 2008] results, Mr. Robert Snyder, President and Chief Executive Officer, stated, 'We are very encouraged with the results of the third quarter, which included record sales and earnings. We achieved the record earnings despite a $274,000 consulting expense and unusually high maintenance and repair costs. Our program on continuous improvement in the converting operation is beginning to yield results as production levels in September and October have exceeded the prior eight month's trend by 20%. By the end of the quarter, we were able to implement our previously discussed product content and pricing changes. The tissue market remains strong with several opportunities available to sell our additional converting production. We believe we are well positioned to take advantage of these opportunities.' Additionally, Mr. Snyder stated, 'The current economic and credit crisis has had profound effects on many industries, however our current order backlog remains strong and we expect that situation to continue. While world-wide virgin pulp prices have seen significant decreases in recent months, the grades of waste paper we use to produce paper have not experienced price decreases to date.'