HOUSTON, Aug. 7 /PRNewswire-FirstCall/ -- Omega Protein Corporation , the nation's leading producer of Omega-3 fish oil and specialty fish meal products, today reported net income of $630,000 (3 cents a share) for the second quarter of 2006, compared with net income of $659,000 (3 cents a share) for the second quarter of the previous year.
Revenues for the second quarter ended June 30, 2006 were $33.3 million compared with revenues of $27.5 million for the comparable quarter in 2005. Omega Protein recorded operating income of $1.5 million for the 2006 second quarter, versus operating income of $0.8 million for the second quarter of 2005.
For the six months ended June 30, 2006, the Company had revenues of $61.6 million, compared with $51.3 million in revenues for the first six months of 2005. Omega Protein recorded operating income of $4.9 million for the six months ended June 30, 2006, versus operating income of $1.0 million for the comparable period a year earlier. The Company had net income of $3.2 million (13 cents a share) for the six months ended June 30, 2006, compared with net income of $766,000 (3 cents a share) for the six months ended June 30, 2005.
Omega Protein's second quarter results, as well as the results for the first six months of 2006, reflect increased margins primarily due to higher sales prices received during the current year, partially offset by increased costs of production.
About Omega Protein
Omega Protein Corporation is the nation's largest manufacturer of heart- healthy fish oils containing Omega-3 fatty acids for human consumption, as well as specialty fish meals and fish oil used as value-added ingredients in aquaculture, swine and other livestock feeds. Omega Protein makes its products from menhaden, an Omega-3 rich fish that is not utilized as seafood, but which is abundantly available along the U.S. Gulf of Mexico and Atlantic Coasts.
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS: The statements contained in this press release that are not historical facts are forward- looking statements that involve a number of risks and uncertainties. The actual results of future events described in any of these forward-looking statements could differ materially from those stated in the forward-looking statements. Important factors that could cause actual results to be materially different from those forward-looking statements include, among others, (1) the possibility that the Company's estimates and assumptions for its calculation of hurricane losses could be incorrect; (2) the Company's ability to meet its raw material requirements through its annual menhaden harvest, which is subject to fluctuations due to natural conditions over which the Company has no control, such as varying fish population, fish oil yields, adverse weather conditions and disease; (3) the impact of worldwide supply and demand relationships on prices for the Company's products; (4) Omega Protein's expectations regarding demand for OmegaPure(R) proving to be incorrect; and (5) fluctuations in the Company's quarterly operating results due to the seasonality of the Company's business and its deferral of inventory sales based on worldwide prices for competing products. These and other factors are described in further detail in Omega's filings with the Securities and Exchange Commission, including its 2005 Annual Report on Form 10K under the headings, "Management's Discussion and Analysis of Financial Condition" and "Risk Factors."
OMEGA PROTEIN CORPORATION
Statement of Operations
(unaudited)
Three Months Six Months
Ended June 30, Ended June 30,
2006 2005 2006 2005
(in thousands, except per share amounts)
Revenues $33,338 $27,510 $61,641 $51,341
Cost of sales 28,002 23,693 49,313 44,468
Gross profit 5,336 3,817 12,328 6,873
Selling, general
and administrative expense 3,641 2,957 6,977 5,735
Loss resulting from natural disaster 192 --- 433 ---
Loss on disposal of assets 30 96 29 96
Operating income 1,473 764 4,889 1,042
Interest expense, net (353) (52) (645) (175)
Other income (expense), net (104) 230 (126) 191
Income before income taxes 1,016 942 4,118 1,058
Provision for income taxes 386 283 962 292
Net income $630 $659 $3,156 $766
Basic earnings per share $0.03 $0.03 $0.13 $0.03
Weighted average common
shares outstanding 25,088 24,968 25,066 24,937
Diluted earnings per share $0.02 $0.03 $0.12 $0.03
Weighted average common shares and
common share equivalents
outstanding 26,023 26,307 26,016 26,383
OMEGA PROTEIN CORPORATION
CONDENSED BALANCE SHEET
(Unaudited)
June 30, December 31,
2006 2005
(in thousands)
ASSETS
Current assets $101,880 $98,390
Property and equipment, net 101,422 93,965
Deferred tax assets, net 5,397 6,293
Other assets 2,196 1,579
Total assets $210,895 $200,227
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $27,579 $19,270
Long-term debt, less current maturities 26,454 27,658
Other long-term liabilities 10,984 10,932
Stockholders' equity 145,878 142,367
Total liabilities and stockholders' equity $210,895 $200,227
Book value per share outstanding $5.81 $5.69
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