| | |
Per share
|
| |
Total
|
|||||
Public Offering Price
|
| | | $ | 23.000 | | | | | $ | 34,500,00 |
Underwriting Discounts and Commissions
|
| | | $ | 1.380 | | | | | $ | 2,070,000 |
Proceeds to Company (Before Expenses)
|
| | | $ | 21.620 | | | | | $ | 32,430,000 |
| TABLE OF CONTENTS | | | | | | |
| Preliminary Prospectus | | | ||||
| | | | | S-ii | ||
| | | | | S-ii | ||
| | | | | S-ii | ||
| | | | | S-iv | ||
| | | | | S-1 | ||
| | | | | S-8 | ||
| | | | | S-10 | ||
| | | | | S-14 | ||
| | | | | S-23 | ||
| | | | | S-24 | ||
| | | | | S-25 | ||
| | | | | S-29 | ||
| | | | | S-33 | ||
| | | | | S-40 | ||
| | | | | S-40 | ||
| | | | | S-40 | ||
| | | | | S-41 | ||
| Prospectus | | | ||||
| | | | | 1 | ||
| | | | | 3 | ||
| | | | | 3 | ||
| | | | | 3 | ||
| | | | | 4 | ||
| | | | | 5 | ||
| | | | | 5 | ||
| | | | | 6 | ||
| | | | | 8 | ||
| | | | | 8 | ||
| | | | | 9 | ||
| | | | | 10 | ||
| | | | | 10 | ||
| | | | | 10 |
| | |
Fiscal Year Ended December 31,
|
| |
Pro Forma
|
| ||||||||||||||||||
| | |
2012
|
| |
2013
|
| |
2014
|
| |
Fiscal Year
Ended December 31, 2014 |
| ||||||||||||
| | | | | | | | | | | | | | | | | | | | |
(unaudited)
|
| |||
| | |
(in thousands, except share and per share data)
|
| |||||||||||||||||||||
Converted Product Net Sales
|
| | | $ | 90,505 | | | | | $ | 109,611 | | | | | $ | 138,382 | | | | | $ | 153,059 | | |
Parent Roll Net Sales
|
| | | | 10,314 | | | | | | 6,763 | | | | | | 4,342 | | | | | | 4,342 | | |
Net Sales
|
| | | | 100,819 | | | | | | 116,374 | | | | | | 142,724 | | | | | | 157,401 | | |
Cost of Sales
|
| | | | 78,253 | | | | | | 88,494 | | | | | | 115,985 | | | | | | 128,265 | | |
Gross Profit
|
| | | | 22,566 | | | | | | 27,880 | | | | | | 26,739 | | | | | | 29,136 | | |
Selling, General and Administrative Expenses
|
| | | | 8,456 | | | | | | 9,471 | | | | | | 11,675 | | | | | | 10,338 | | |
Intangibles Amortization
|
| | | | — | | | | | | — | | | | | | 753 | | | | | | 1,293 | | |
Operating Income
|
| | | | 14,110 | | | | | | 18,409 | | | | | | 14,311 | | | | | | 17,505 | | |
Interest Expense
|
| | | | 407 | | | | | | 371 | | | | | | 271 | | | | | | 641 | | |
Other (Income) Expense, Net
|
| | | | 302 | | | | | | (173) | | | | | | 181 | | | | | | 181 | | |
Income Before Income Taxes
|
| | | | 13,401 | | | | | | 18,211 | | | | | | 13,859 | | | | | | 16,683 | | |
Provision for Income Taxes
|
| | | | 4,144 | | | | | | 4,892 | | | | | | 4,394 | | | | | | 5,289 | | |
Net Income
|
| | | $ | 9,257 | | | | | $ | 13,319 | | | | | $ | 9,465 | | | | | $ | 11,394 | | |
Average Number of Shares Outstanding, Basic
|
| | | | 7,564,799 | | | | | | 7,870,350 | | | | | | 8,462,875 | | | | | | 8,752,346 | | |
Average Number of Shares Outstanding, Diluted
|
| | | | 7,831,722 | | | | | | 7,936,948 | | | | | | 8,538,752 | | | | | | 8,828,223 | | |
Net Income Per Common Share: | | | | | | ||||||||||||||||||||
Basic
|
| | | $ | 1.22 | | | | | $ | 1.69 | | | | | $ | 1.12 | | | | | $ | 1.30 | | |
Diluted
|
| | | $ | 1.18 | | | | | $ | 1.67 | | | | | $ | 1.11 | | | | | $ | 1.29 | | |
Cash Dividends Paid
|
| | | $ | 6,443 | | | | | $ | 10,708 | | | | | $ | 11,781 | | | | | $ | 12,261 | | |
Cash Dividends Per Share
|
| | | $ | 0.85 | | | | | $ | 1.35 | | | | | $ | 1.40 | | | | | $ | 1.40 | | |
| | |
Fiscal Year Ended December 31,
|
| |
Pro Forma
|
| ||||||||||||||||||
| | |
2012
|
| |
2013
|
| |
2014
|
| |
Fiscal Year
Ended December 31, 2014 |
| ||||||||||||
| | | | | | | | | | | | | | | | | | | | |
(unaudited)
|
| |||
| | |
(in thousands, except tonnage, share and per share data)
|
| |||||||||||||||||||||
Other Operating and Financial Data: | | | | | | ||||||||||||||||||||
EBITDA(1) | | | | $ | 21,349 | | | | | $ | 26,195 | | | | | $ | 23,819 | | | | | $ | 27,703 | | |
Adjusted EBITDA(1)
|
| | | $ | 21,695 | | | | | $ | 26,541 | | | | | $ | 27,670 | | | | | $ | 29,982 | | |
Adjusted Diluted Net Income Per Share(1)
|
| | | $ | 1.21 | | | | | $ | 1.71 | | | | | $ | 1.42 | | | | | $ | 1.47 | | |
Converted Product Tons Shipped
|
| | | | 43,661 | | | | | | 52,592 | | | | | | 67,870 | | | | | | | | |
Parent Roll Tons Shipped
|
| | | | 10,334 | | | | | | 6,726 | | | | | | 4,922 | | | | | | | | |
Total Tons Shipped
|
| | | | 53,995 | | | | | | 59,318 | | | | | | 72,792 | | | | | | | | |
Capital Expenditures
|
| | | $ | 6,780 | | | | | $ | 12,171 | | | | | $ | 25,769 | | | | | | | | |
Maintenance Capital Expenditures(2)
|
| | | $ | 2,749 | | | | | $ | 4,522 | | | | | $ | 1,950 | | | | | | | | |
Cash Flow Data: | | | | | | ||||||||||||||||||||
Cash Flow Provided by (Used in): | | | | | | ||||||||||||||||||||
Operating Activities
|
| | | $ | 17,451 | | | | | $ | 20,796 | | | | | $ | 20,152 | | | | | | | | |
Investing Activities
|
| | | $ | (9,788) | | | | | $ | (12,179) | | | | | $ | (37,434) | | | | | | | | |
Financing Activities
|
| | | $ | (6,226) | | | | | $ | (7,146) | | | | | $ | 11,098 | | | | | | | | |
| | |
As of
December 31, 2013 |
| |
As of December 31, 2014
|
| ||||||||||||
|
Actual
|
| |
As adjusted(3)
|
| ||||||||||||||
| | | | | | | | |
(unaudited)
|
| |||||||||
| | |
(in thousands)
|
| |||||||||||||||
Balance Sheet Data: | | | | | |||||||||||||||
Total Assets
|
| | | $ | 127,092 | | | | | $ | 170,739 | | | | | $ | 202,669 | | |
Total Debt
|
| | | $ | 15,079 | | | | | $ | 36,362 | | | | | $ | 36,362 | | |
Total Stockholders’ Equity
|
| | | $ | 84,849 | | | | | $ | 100,513 | | | | | $ | 132,443 | | |
Net Debt(1)
|
| | | $ | 2,839 | | | | | $ | 37,047 | | | | | $ | 5,117 | | |
| | |
Fiscal Year Ended December 31,
|
| ||||||||||||||||||
| | |
2012
|
| |
2013
|
| |
2014
|
| ||||||||||||
| | |
(unaudited)
|
| ||||||||||||||||||
| | |
(in thousands)
|
| ||||||||||||||||||
EBITDA Reconciliation: | | | | | ||||||||||||||||||
Net Income
|
| | | $ | 9,257 | | | | | $ | 13,319 | | | | | $ | 9,465 | | | |||
Plus: Interest Expense
|
| | | | 407 | | | | | | 371 | | | | | | 271 | | | |||
Plus: Income Tax Expense
|
| | | | 4,144 | | | | | | 4,892 | | | | | | 4,394 | | | |||
Plus: Depreciation
|
| | | | 7,541 | | | | | | 7,613 | | | | | | 8,936 | | | |||
Plus: Intangibles Amortization
|
| | | | — | | | | | | — | | | | | | 753 | | | |||
EBITDA
|
| | | $ | 21,349 | | | | | $ | 26,195 | | | | | $ | 23,819 | | | |||
|
| | |
Fiscal Year Ended December 31,
|
| ||||||||||||||||||
| | |
2012
|
| |
2013
|
| |
2014
|
| ||||||||||||
| | |
(unaudited)
|
| ||||||||||||||||||
| | |
(in thousands)
|
| ||||||||||||||||||
Adjusted EBITDA Reconciliation: | | | | | ||||||||||||||||||
EBITDA
|
| | | $ | 21,349 | | | | | $ | 26,195 | | | | | $ | 23,819 | | | |||
Plus: Stock Compensation Expense
|
| | | | 346 | | | | | | 346 | | | | | | 1,879 | | | |||
Plus: Acquisition Costs
|
| | | | — | | | | | | — | | | | | | 1,572 | | | |||
Plus: Demolition Costs
|
| | | | — | | | | | | — | | | | | | 400 | | | |||
Adjusted EBITDA
|
| | | $ | 21,695 | | | | | $ | 26,541 | | | | | $ | 27,670 | | | |||
|
| | |
Fiscal Year Ended December 31,
|
| |||||||||||||||
| | |
2012
|
| |
2013
|
| |
2014
|
| |||||||||
| | |
(unaudited)
|
| |||||||||||||||
| | |
(in thousands, except per share data)
|
| |||||||||||||||
Adjusted Net Income Reconciliation: | | | | | |||||||||||||||
Net income
|
| | | $ | 9,257 | | | | | $ | 13,319 | | | | | $ | 9,465 | | |
Plus: Stock Compensation Expense, net of tax
|
| | | | 239 | | | | | | 253 | | | | | | 1,284 | | |
Plus: Acquisition Costs, net of tax
|
| | | | — | | | | | | — | | | | | | 1,074 | | |
Plus: Demolition Costs, net of tax
|
| | | | — | | | | | | — | | | | | | 273 | | |
Adjusted Net income
|
| | | $ | 9,496 | | | | | $ | 13,572 | | | | | $ | 12,096 | | |
Adjusted Diluted Net Income Per Share
|
| | | $ | 1.21 | | | | | $ | 1.71 | | | | | $ | 1.42 | | |
| | |
As of
December 31, 2013 |
| |
As of December 31, 2014
|
| |||||||||||||||
|
Actual
|
| |
As adjusted(3)
|
| |||||||||||||||||
| | |
(unaudited)
|
| ||||||||||||||||||
| | |
(in thousands)
|
| ||||||||||||||||||
Net Debt Reconciliation: | | | | | ||||||||||||||||||
Current Portion Long-Term Debt
|
| | | $ | 1,152 | | | | | $ | 2,700 | | | | | $ | 2,700 | | | |||
Long-Term Debt
|
| | | | 13,927 | | | | | | 33,662 | | | | | | 33,662 | | | |||
Total Debt
|
| | | | 15,079 | | | | | | 36,362 | | | | | | 36,362 | | | |||
Less: Cash, Net of Bank Overdrafts
|
| | | | (7,205) | | | | | | 685 | | | | | | (31,245) | | | |||
Less: Short-Term Investments
|
| | | | (5,035) | | | | | | — | | | | | | — | | | |||
Net Debt
|
| | | $ | 2,839 | | | | | $ | 37,047 | | | | | $ | 5,117 | | | |||
|
| | |
As of March 31, 2015
|
| |||||||||||
| | |
Actual
|
| |
As adjusted(1)
|
| ||||||||
| | |
(unaudited)
(Dollars in thousands) |
| |||||||||||
Cash and cash equivalents
|
| | | $ | 3,274 | | | | | $ | 35,204 | | | ||
Debt | | | | ||||||||||||
Revolving line of credit
|
| | | | 20,785 | | | | | | 20,785 | | | ||
Term loan
|
| | | | 27,975 | | | | | | 27,975 | | | ||
Total Debt
|
| | | | 48,760 | | | | | | 48,760 | | | ||
Stockholders’ equity: | | | | ||||||||||||
Common stock $0.001 par value; 25,000,000 shares authorized; 8,759,225
shares issued and outstanding actual; 10,259,225 shares issued and outstanding, as adjusted to give effect to this offering(2) |
| | | | 9 | | | | | | 10 | | | ||
Additional paid-in capital
|
| | | | 64,566 | | | | | | 96,495 | | | ||
Retained earnings
|
| | | | 34,399 | | | | | | 34,399 | | | ||
Accumulated other comprehensive income
|
| | | | — | | | | | | — | | | ||
Total stockholders’ equity
|
| | | | 98,974 | | | | | | 130,904 | | | ||
| | | | | | | | | | | | | | ||
Total capitalization
|
| | | $ | 147,734 | | | | | $ | 179,664 | | | ||
|
| | |
Orchids
Historical(1) |
| |
Golden Gate
Historical(2) |
| |
Pro Forma
Adjustments |
| |
Pro Forma as
Adjusted |
| ||||||||||||
Net sales
|
| | | $ | 142,724 | | | | | $ | 16,185 | | | | | $ | (1,508)(a) | | | | | $ | 157,401 | | |
Cost of sales
|
| | | | 115,985 | | | | | | 15,493 | | | | | | (1,330)(a) | | | | | | 128,265 | | |
| | | | | | | | | | | | | | | | | (2,033)(b) | | | | | | | | |
| | | | | | | | | | | | | | | | | 150(d) | | | | | | | | |
Gross profit
|
| | | | 26,739 | | | | | | 692 | | | | | | 1,705 | | | | | | 29,136 | | |
Selling, general and administrative expenses
|
| | | | 11,675 | | | | | | 387 | | | | | | (387)(c) | | | | | | 10,338 | | |
| | | | | | | | | | | | | | | | | 220(c) | | | | | | | | |
| | | | | | | | | | | | | | | | | 15(f) | | | | | | | | |
| | | | | | | | | | | | | | | | | (1,572)(g) | | | | | | | | |
Intangibles amortization
|
| | | | 753 | | | | | | — | | | | | | 540(e) | | | | | | 1,293 | | |
Operating income
|
| | | | 14,311 | | | | | | 305 | | | | | | 2,889 | | | | | | 17,505 | | |
Interest expense
|
| | | | 271 | | | | | | — | | | | | | (3)(h) | | | | | | 641 | | |
| | | | | | | | | | | | | | | | | 18(i) | | | | | | | | |
| | | | | | | | | | | | | | | | | 335(j) | | | | | | | | |
Other (income) expense, net
|
| | | | 181 | | | | | | — | | | | | | — | | | | | | 181 | | |
Income before income taxes
|
| | | | 13,859 | | | | | | 305 | | | | | | 2,519 | | | | | | 16,683 | | |
Provision for income taxes: | | ||||||||||||||||||||||||
Current
|
| | | | 6,774 | | | | | | 7 | | | | | | 1,231(k) | | | | | | 8,154 | | |
| | | | | | | | | | | | | | | | | 142(l) | | | | | | | | |
Deferred
|
| | | | (2,380) | | | | | | 117 | | | | | | (433)(k) | | | | | | (2,865) | | |
| | | | | | | | | | | | | | | | | (169)(l) | | | | | | | | |
| | | | | 4,394 | | | | | | 124 | | | | | | 771 | | | | | | 5,289 | | |
Net income
|
| | | $ | 9,465 | | | | | $ | 181 | | | | | $ | 1,748 | | | | | $ | 11,394 | | |
Net income per common share: | | ||||||||||||||||||||||||
Basic
|
| | | $ | 1.12 | | | | | | | | | | | | | | | | | $ | 1.30 | | |
Diluted
|
| | | $ | 1.11 | | | | | | | | | | | | | | | | | $ | 1.29 | | |
Shares used in calculating net income per common share: | | ||||||||||||||||||||||||
Basic
|
| | | | 8,462,875 | | | | | | | | | | | | 289,471(m) | | | | | | 8,752,346 | | |
Diluted
|
| | | | 8,538,752 | | | | | | | | | | | | 289,471(m) | | | | | | 8,828,223 | | |
Dividends per share
|
| | | $ | 1.40 | | | | | | | | | | | | | | | | | $ | 1.40 | | |
| | |
Year Ended
December 31, 2014 |
| |||
| | |
(in thousands,
except share and per share data) |
| |||
Net income
|
| | | $ | 11,394 | | |
Less: distributed earnings allocable to participating securities
|
| | | | (7) | | |
Less: undistributed earnings allocable to participating securities
|
| | | | — | | |
Distributed and undistributed earnings allocable to common shareholders
|
| | | $ | 11,387 | | |
Weighted average shares outstanding
|
| | | | 8,752,346 | | |
Effect of stock options
|
| | | | 75,877 | | |
Weighted average shares outstanding – assuming dilution
|
| | | | 8,828,223 | | |
Net income per common share: | | | | | | | |
Basic
|
| | | $ | 1.30 | | |
Diluted
|
| | | $ | 1.29 | | |
Stock options not considered above because they were anti-dilutive
|
| | | | 555,000 | | |
Underwriter
|
| |
Number of Shares
|
| ||||
Jefferies LLC
|
| | | | 1,125,000 | | | |
Oppenheimer & Co. Inc.
|
| | | | 225,000 | | | |
Craig-Hallum Capital Group LLC
|
| | | | 150,000 | | | |
Total
|
| | | | 1,500,000 | | | |
|
| | |
Per Share
|
| |
Total
|
| ||||||||||||||||||
| | |
Without
Option to Purchase Additional Shares |
| |
With
Option to Purchase Additional Shares |
| |
Without
Option to Purchase Additional Shares |
| |
With
Option to Purchase Additional Shares |
| ||||||||||||
Public offering price
|
| | | $ | 23.000 | | | | | $ | 23.000 | | | | | $ | 34,500,000 | | | | | $ | 39,675,000 | | |
Underwriting discounts and commissions paid by us
|
| | | $ | 1.380 | | | | | $ | 1.380 | | | | | $ | 2,070,000 | | | | | $ | 2,380,500 | | |
Proceeds to us, before expenses
|
| | | $ | 21.620 | | | | | $ | 21.620 | | | | | $ | 32,430,000 | | | | | $ | 37,294,500 | | |
| | |
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