OME Omega Protein Corp.

HOUSTON, May 4 /PRNewswire-FirstCall/ -- Omega Protein Corporation (NYSE:OME), the world's largest manufacturer of heart-healthy fish oils containing long-chain Omega-3 fatty acids, today reported a net loss for the first quarter of 2007 of $2.3 million (14 cents per share), compared with net income of $2.5 million (10 cents a share), for the first quarter of 2006. The net loss is primarily due to the write-off of approximately $3.0 million in deferred debt 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. Also contributing to the net loss is the increase in interest expense from approximately $524,000 in the first quarter of 2006 to approximately $1.7 million in the first quarter of 2007, which is the result of increased interest rates and increased debt outstanding resulting from the Company's 9.3 million share repurchase in the fourth quarter of 2006. Revenues for the first quarter of 2007, which ended March 31, were $31.1 million, versus revenues of $28.3 million for the 2006 comparable quarter. Omega Protein had operating income of $1.2 million for the first quarter of 2007, compared with operating income of $3.4 million in the comparable quarter of the previous year. The reduction in operating income is a result of reduced volumes and increased costs caused by higher unit inventory costs carried over from 2006 due to poor fish oil yields and higher general and administrative and research and development expenses during the current quarter, offset by increased sales prices in the first quarter of 2007. In January 2007, the Company opened its new technical center in Houston, Texas -- The OmegaPure Technology and Innovation Center. The technical center has food science application labs, as well as analytical, sensory, lipids research and pilot plant capabilities. 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 2006 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 Ended March 31, 2007 2006 (in thousands, except per share amounts) Revenues $31,129 $28,303 Cost of sales 24,866 21,311 Gross profit 6,263 6,992 Selling, general and administrative expenses 4,837 3,336 Research and development expenses 208 --- Loss resulting from natural disaster and other, net --- 240 Operating income 1,218 3,416 Interest expense, net (1,593) (292) Loss resulting from debt refinancing (3,024) --- Other income (expense), net (102) (22) Income (loss) before income taxes (3,501) 3,102 Provision (benefit) for income taxes (1,189) 576 Net income (loss) $(2,312) $2,526 Basic earnings (loss) per share $(0.14) $0.10 Average common shares outstanding 16,330 25,043 Diluted earnings (loss) per share $(0.14) $0.10 Average common shares and potential common shares outstanding 16,330 26,021 OMEGA PROTEIN CORPORATION CONDENSED BALANCE SHEET (Unaudited) March 31, December 31, 2007 2006 (in thousands, except per share amounts) ASSETS Current assets $80,617 $89,759 Property and equipment, net 100,300 100,776 Deferred tax assets, net 5,017 4,103 Other assets 4,750 6,080 Total Assets $190,684 $200,718 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities $18,068 $18,683 Long-term debt, less current maturities 65,730 72,693 Pension liabilities, net 7,791 8,252 Stockholders' equity 99,095 101,090 Total liabilities and stockholders' equity $190,684 $200,718 BOOK VALUE PER SHARE OUTSTANDING $6.05 $6.24 http://www.newscom.com/cgi-bin/prnh/20030516/OMEGALOGO DATASOURCE: Omega Protein Corporation CONTACT: Robert W. Stockton of Omega Protein Corporation, +1-713-623-0060

Copyright