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 $6.7 million ($0.37 per share) for the second quarter of 2008, compared with net income of $2.5 million ($0.15 per share) for the second quarter of the previous year.
(Logo: http://www.newscom.com/cgi-bin/prnh/20030516/OMEGALOGO)
Revenues for the second quarter ended June 30, 2008 were $47.1 million compared with revenues of $37.1 million for the comparable quarter in 2007. Omega Protein recorded operating income of $11.6 million for the 2008 second quarter, versus operating income of $5.1 million for the second quarter of 2007.
For the six months ended June 30, 2008, the Company had revenues of $83.2 million, compared with $68.2 million in revenues for the first six months of 2007. Omega Protein recorded operating income of $15.7 million for the six months ended June 30, 2008, versus operating income of $6.3 million for the comparable period a year earlier. The Company had net income of $8.6 million ($0.48 per share) for the six months ended June 30, 2008, compared with net income of $0.2 million ($0.01 per share) for the six months ended June 30, 2007.
Omega Protein's second quarter results reflect increased revenues and margins primarily due to higher volumes and sales prices from fish oil, partially offset by a decline in sales volume of fish meal. Average prices received for newly contracted fish oil sales, as compared to prices received during 2007, were approximately 63 percent higher and reflect increased demand from aquaculture and pet food manufacturers. Average prices for the Company's fish meal products were relatively flat between such periods. The results for the six months ended June 30, 2007 were impacted by 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 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 reports on Form 10-K, Form10-Q and Form 8-K. The Company also posts its latest internally generated price list for various products on its Company website, http://www.omegaproteininc.com/. Pricing and product availability information disclosed in the price list are subject to change or discontinuance without prior notice, and the Company undertakes no obligation to update such information.
OMEGA PROTEIN CORPORATION Statement of Operations (unaudited) Three Months Six Months Ended June 30, Ended June 30, 2008 2007 2008 2007 (in thousands, except per share amounts) Revenues $47,128 $37,094 $83,237 $68,223 Cost of sales 31,202 28,299 59,053 53,165 Gross profit 15,926 8,795 24,184 15,058 Selling, general and administrative expense 3,988 3,342 7,663 8,179 Research and development expense 332 179 650 387 (Gain) loss on disposal of assets, net (32) 184 185 184 Operating income 11,638 5,090 15,686 6,308 Interest expense, net (841) (1,213) (1,898) (2,806) Loss resulting from debt refinancing - - - (3,024) Other income (expense), net (68) (69) (124) (171) Income before income taxes 10,729 3,808 13,664 307 Provision for income taxes 4,019 1,293 5,042 104 Net income $6,710 $2,515 $8,622 $203 Basic earnings per share $0.37 $0.15 $0.48 $0.01 Average common shares outstanding 18,328 16,598 17,925 16,465 Diluted earnings per share $0.36 $0.14 $0.47 $0.01 Average common shares and potential common shares outstanding 18,703 17,351 18,358 17,280 OMEGA PROTEIN CORPORATION CONDENSED BALANCE SHEET (Unaudited) June 30, December 31, 2008 2007 (in thousands) ASSETS Current assets $124,221 $107,651 Property and equipment, net 104,472 96,659 Deferred tax assets, net - 175 Other assets 3,989 3,344 Total assets $232,682 $207,829 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities $34,092 $24,190 Long-term debt, less current maturities 55,092 58,976 Capital lease obligation, net of current portion 890 - Pension liabilities, net 4,755 5,749 Interest rate swap liability, net of current portion 31 459 Stockholders' equity 137,822 118,455 Total liabilities and stockholders' equity $232,682 $207,829 Book value per share outstanding $7.46 $6.79
AP Archive: http://photoarchive.ap.org/
PRN Photo Desk,
