Houston, Aug. 7 - 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.
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.
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