HOUSTON, Aug. 3 /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 $2,515,000 (15 cents a share) for the second quarter of 2007, compared with net income of $630,000 (3 cents a share) for the second quarter of the previous year.
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Revenues for the second quarter ended June 30, 2007 were $37.1 million compared with revenues of $33.3 million for the comparable quarter in 2006. Omega Protein recorded operating income of $5.1 million for the 2007 second quarter, versus operating income of $1.5 million for the second quarter of 2006.
For the six months ended June 30, 2007, the Company had revenues of $68.2 million, compared with $61.6 million in revenues for the first six months of 2006. Omega Protein recorded operating income of $6.3 million for the six months ended June 30, 2007, versus operating income of $4.9 million for the comparable period a year earlier. The Company had net income of $203,000 (1 cent a share) for the six months ended June 30, 2007, compared with net income of $3.2 million (13 cents a share) for the six months ended June 30, 2006.
Omega Protein's second quarter results reflect increased margins primarily due to higher sales prices received during the current year, partially offset by a decline in sales volume of both fish meal and fish oil. The results of the six months ended June 30, 2007 were impacted by the net loss incurred during the first quarter of 2007 which was primarily due to the write-off of approximately $3.0 million in deferred debt issuance costs and prepayment fees resulting from the refinancing of the Company's prior credit agreement with a new credit facility which closed in March 2007.
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 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; (2) the impact of worldwide supply and demand relationships on prices for the Company's products; (3) Omega Protein's expectations regarding demand for OmegaPure(R) proving to be incorrect; and (4) 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 2007 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,
2007 2006 2007 2006
(in thousands, except per share amounts)
Revenues $37,094 $33,338 $68,223 $61,641
Cost of sales 28,299 28,002 53,165 49,313
Gross profit 8,795 5,336 15,058 12,328
Selling, general and
administrative expense 3,342 3,641 8,179 6,977
Research and development
expense 179 - 387 -
Loss resulting from natural
disaster and other, net 184 222 184 462
Operating income 5,090 1,473 6,308 4,889
Interest expense, net (1,213) (353) (2,806) (645)
Loss resulting from
debt refinancing - - (3,024) -
Other income (expense), net (69) (104) (171) (126)
Income before income taxes 3,808 1,016 307 4,118
Provision for income taxes 1,293 386 104 962
Net income $2,515 $630 $203 $3,156
Basic earnings per share $0.15 $0.03 $0.01 $0.13
Average common shares
outstanding 16,598 25,088 16,465 25,066
Diluted earnings per share $0.14 $0.02 $0.01 $0.12
Average common shares and
potential common
shares outstanding 17,351 26,023 17,280 26,016
OMEGA PROTEIN CORPORATION
CONDENSED BALANCE SHEET
(Unaudited)
June 30, December 31,
2007 2006
(in thousands)
ASSETS
Current assets $92,558 $89,759
Property and equipment, net 99,088 100,776
Deferred tax assets, net 4,686 4,103
Other assets 4,885 6,080
Total assets $201,217 $200,718
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $27,831 $18,683
Long-term debt, less current maturities 62,193 72,693
Pension liabilities, net 7,164 8,252
Stockholders' equity 104,029 101,090
Total liabilities and stockholders' equity $201,217 $200,718
Book value per share outstanding $ 6.17 $ 6.24
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