HOUSTON, March 3, 2011 /PRNewswire/ -- Omega Protein
Corporation (NYSE: OME), a nutritional ingredient company that is
also the nation's leading producer of Omega-3 fish oil and
specialty fish meal products, today reported net income of
$18.3 million ($0.97 per share) for the fiscal year ended
December 31, 2010, compared with net
loss of $6.2 million ($0.33 per share) for the year ended December 31, 2009.
Revenues for the year ended December 31,
2010 were $167.7 million
compared with revenues of $164.9
million for the year ended December
31, 2009. Revenue composition by product was 69% fish
meal, 28% fish oil and 3% other nutritional ingredients.
Omega Protein Corporation recorded operating income of
$31.1 million, an 18.5% operating
margin, for the year ended December 31,
2010, versus operating loss of $4.3
million for the year ended December
31, 2009.
The Company's 2010 gross profit results, in comparison to 2009,
primarily reflect increased fish meal sales pricing of 40% in 2010
primarily related to the global tightening of fish meal
availability. The increase in 2010 revenue relating to the
increase in fish meal sales pricing was partially offset by a 29%
decrease in fish meal sales volumes attributable to lower
production level and inventory available to sell partially as a
result of the 2010 Gulf of Mexico
oil spill disaster.
During 2010, the Company received two emergency payments from
the GCCF totaling $18.7 million, net
of fees and expenses, as partial reimbursement for damages suffered
from the oil spill. The two emergency payments were credited
to the unallocated inventory cost pool and included in the cost per
unit of production calculation for the 2010 fishing season. As a
result, cost of sales was partially reduced by 9%, or $10.5 million, for the year ended December 31, 2010 and will continue to be
partially reduced through June 30,
2011.
The Company is in discussions with the GCCF regarding additional
payments for damages. If such discussions do not result in an
acceptable settlement proposal, the Company will pursue its claims
against the Deepwater Horizon defendants in the multidistrict
litigation already commenced in U.S. Federal District Court in
New Orleans, Louisiana.
Joe von Rosenberg, the Company's
Chief Executive Officer, commented, "The fundamentals behind our
base business continue to remain very attractive. In
addition, we are well positioned to grow through acquisitions, with
$20 million of cash on the balance
sheet as of December 31, 2010, excess
debt capacity, an untapped $32
million credit line, and the expectation that we should
generate additional cash in 2011."
For the fourth quarter ended December 31,
2010, the Company recognized revenues of $43.1 million, compared with $43.0 million in revenues for the fourth quarter
ended December 31, 2009. Omega
Protein Corporation recorded operating income of $13.1 million for the 2010 fourth quarter, versus
operating loss of $2.4 million for
the 2009 fourth quarter. The Company had net income of $8.3 million ($0.44
per share) for the fourth quarter ended December 31, 2010, compared with net loss of
$2.2 million ($0.12 per share) for the fourth quarter ended
December 31, 2009.
Gross profit for the quarter ended December 31, 2010, includes an approximate
$4 million adjustment attributed to a
decrease in the Company's cost per unit of production for 2010
inventory sold prior to the beginning of the quarter. The
decrease in cost per unit of production is the result of higher
than anticipated fish catch and resultant production during the
fourth quarter 2010 which decreased the cost structure of the 2010
production.
Included in the Company's 2010 statement of operation is
approximately $209,000 of revenue and
$13,000 of operating loss related to
Cyvex Nutrition Inc. ("Cyvex"). The Company purchased Cyvex,
which operates as an ingredient provider in the nutraceutical
industry, for approximately $12.3
million, net of cash received, on December 16, 2010. Although substantially
not included in the Company's 2010 operating results, Cyvex's
unaudited 2010 operating results included revenues of $11.5 million and operating income of
$1.3 million.
The Company has sold or forward sold 124,100 tons of fish meal
and 55,300 metric tons of fish oil from its anticipated 2011 sales
volume at prices marginally better than the prices realized by the
Company in 2010.
In addition, the Company announced that it will no longer post
its fish meal and fish oil prices on the Company's website.
The majority of the Company's sales are large-volume
contracts, so spot pricing, which typically is higher, does not
apply to most sales situations.
About Omega Protein Corporation
Omega Protein Corporation is a nutritional ingredient company
and 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. Forward-looking information may be based
on projections, predictions and estimates. Some statements in
this press release may be forward-looking and use words like "may,"
"may not," "believes," "do not believe," "expects," "do not
expect," "anticipates," "do not anticipate," or other similar
expressions. 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, natural and other disasters and
disease; (2) the impact of laws and regulations that may be enacted
that may restrict the Company's operations or the sale of the
Company's products; (3) the impact of worldwide supply and demand
relationships on prices for the Company's products; (4) the
Company's expectations regarding demand and pricing for its
products proving to be incorrect; (5) 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; (6) the impact of the
uncertain economic conditions, both in the United States and globally; (7) the
effect of the Deepwater Horizon oil spill on the Company's
business, operations and fish catch, both short-term and long-term;
(8) the business, operations, potential or prospects for
Cyvex, the dietary supplement market or the human health and
wellness segment generally; and (9) the amount, if any, of
future reimbursements from the Deepwater Horizon defendants or the
GCCF for damages caused by the Deepwater Horizon oil spill.
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.
OMEGA
PROTEIN CORPORATION
Statement of
Operations
(Unaudited)
|
|
|
Three
Months
Ended
December 31,
|
|
Twelve
Months
Ended
December 31,
|
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
|
(in
thousands, except per share amounts)
|
|
Revenues
|
$ 43,133
|
|
$ 43,013
|
|
$167,704
|
|
$ 164,861
|
|
Cost of sales
|
24,058
|
|
41,409
|
|
118,519
|
|
156,676
|
|
Gross profit
|
19,075
|
|
1,604
|
|
49,185
|
|
8,185
|
|
Selling, general and
administrative expense
|
4,809
|
|
3,037
|
|
15,634
|
|
12,591
|
|
Research and development
expense
|
378
|
|
397
|
|
1,727
|
|
1,444
|
|
(Other proceeds/gain) loss relating to natural disaster and other, net
|
749
|
|
602
|
|
768
|
|
(1,564)
|
|
Operating income (loss)
|
13,139
|
|
(2,432)
|
|
31,056
|
|
(4,286)
|
|
Interest income (expense),
net
|
(551)
|
|
(455)
|
|
(2,457)
|
|
(4,333)
|
|
Loss resulting from debt
refinancing
|
—
|
|
(385)
|
|
—
|
|
(385)
|
|
Other income (expense),
net
|
(39)
|
|
(168)
|
|
(360)
|
|
(464)
|
|
Income (loss) before income
taxes
|
12,549
|
|
(3,440)
|
|
28,239
|
|
(9,468)
|
|
Provision (benefit) for income
taxes
|
4,222
|
|
(1,255)
|
|
9,980
|
|
(3,270)
|
|
Net income (loss)
|
$ 8,327
|
|
$ (2,185)
|
|
$ 18,259
|
|
$ (6,198)
|
|
Basic earnings (loss) per
share
|
$
0.44
|
|
$ (0.12)
|
|
$
0.97
|
|
$ (0.33)
|
|
Weighted average common shares
outstanding
|
18,819
|
|
18,724
|
|
18,799
|
|
18,715
|
|
Diluted earnings (loss) per
share
|
$ 0.44
|
|
$ (0.12)
|
|
$ 0.97
|
|
$ (0.33)
|
|
Weighted average common shares
and potential common share equivalents outstanding
|
19,109
|
|
18,724
|
|
18,911
|
|
18,715
|
|
|
|
|
|
|
|
|
|
|
|
OMEGA
PROTEIN CORPORATION
CONDENSED
BALANCE SHEET
(Unaudited)
|
|
|
December
31,
2010
|
|
December
31,
2009
|
|
|
(in
thousands, except per share amounts)
|
|
ASSETS
|
|
|
|
|
Current assets
|
$ 111,282
|
|
$ 83,889
|
|
Property and equipment, net
|
111,726
|
|
110,625
|
|
Goodwill and other assets
|
13,776
|
|
3,530
|
|
Total assets
|
$ 236,784
|
|
$ 198,044
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY
|
|
|
|
|
Current liabilities
|
$ 27,569
|
|
$ 22,093
|
|
Long-term debt, less current maturities
|
30,307
|
|
23,540
|
|
Capital lease obligation, net of current portion
|
820
|
|
1,265
|
|
Deferred tax liability, net of current portion
|
12,209
|
|
4,540
|
|
Pension
liabilities, net and other
|
8,352
|
|
9,580
|
|
Stockholders' equity
|
157,527
|
|
137,026
|
|
Total liabilities and stockholders' equity
|
$ 236,784
|
|
$ 198,044
|
|
|
|
|
|
|
Book value per share
outstanding
|
$
8.37
|
|
$
7.32
|
|
|
|
|
|
|
|
Web site: www.buyomegaprotein.com
SOURCE Omega Protein Corporation