Houston, March 12 - Omega Protein Corporation, the nation's leading producer of Omega-3 fish oil and specialty fish meal products, today reported net income of $12.1 million ($0.72 a share) for the fiscal year ended December 31, 2007, compared with net income of $4.6 million ($0.19 a share) for the year ended December 31, 2006.
For the year ended December 31, 2007, the Company had revenues of $157.1 million, compared with $139.8 million in revenues for the year ended December 31, 2006. Omega Protein recorded operating income of $27.4 million for the year ended December 31, 2007, versus operating income of $8.0 million for the comparable period a year earlier.
Revenues for the fourth quarter ended December 31, 2007 were $44.3 million compared with revenues of $26.1 million for the comparable quarter in 2006. Omega Protein recorded operating income of $8.8 million for the 2007 fourth quarter, versus operating income of $0.1 million for the fourth quarter of 2006.
Omega Protein's 2007 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. Additionally, results for the three and twelve months ended December 31, 2007 were favorably impacted by the settlement of the lawsuit with its property insurance carriers pertaining to damages sustained from Hurricanes Katrina and Rita in 2005. The results for the year ended December 31, 2007 were also impacted by the net loss incurred during the first quarter of 2007 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. Excluding the settlement of the lawsuit and the write-off from the reported 2007 net income would have resulted in Omega Protein reporting approximately $7.2 million in net income ($0.43 a share).
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.
OMEGA PROTEIN CORPORATION
Statement of Operations
(unaudited)
Three Months Twelve Months
Ended December 31, Ended December 31,
2007 2006 2007 2006
(in thousands, except per share amounts)
Revenues $44,336 $26,104 $157,149 $139,834
Cost of sales 35,650 22,577 122,455 116,638
Gross profit 8,686 3,527 34,694 23,196
Selling, general
and administrative
expense 4,730 3,239 16,386 13,683
Research and
development expense 529 -- 1,194 --
(Insurance recoveries)
losses relating to
natural disaster
and other, net (5,393) 177 (10,326) 1,557
Operating income 8,820 111 27,440 7,956
Interest income
(expense), net (1,111) (895) (5,121) (1,938)
Loss resulting from
debt refinancing -- -- (3,024) --
Other income
(expense), net (87) (85) (333) (244)
Income (loss) before
income taxes 7,622 (869) 18,962 5,774
Provision (benefit)
for income taxes 2,839 (473) 6,823 1,202
Net income (loss) $4,783 $(396) $12,139 $4,572
Basic earnings
(loss) per share $0.27 $(0.02) $0.72 $0.19
Weighted average
common shares
outstanding 17,407 22,026 16,830 24,322
Diluted earnings
(loss) per share $0.27 $(0.02) $0.70 $0.18
Weighted average
common shares and
potential common
share equivalents
outstanding 17,768 22,026 17,432 25,200
OMEGA PROTEIN CORPORATION
CONDENSED BALANCE SHEET
(Unaudited)
December 31, December 31,
2007 2006
(in thousands)
ASSETS
Current assets $107,651 $89,759
Property and equipment, net 96,659 100,776
Deferred tax assets, net 175 4,103
Other assets 3,344 6,080
Total assets $207,829 $200,718
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $24,190 $18,683
Long-term debt, less current
maturities 58,976 72,693
Pension liabilities, net and other 6,208 8,252
Stockholders' equity 118,455 101,090
Total liabilities and
stockholders' equity $207,829 $200,718
Book value per share outstanding $6.79 $6.24