HOUSTON, May 5, 2011 /PRNewswire/ -- Omega Protein
Corporation (NYSE symbol: 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
$6.0 million ($0.32 per share) for the first quarter ended
March 31, 2011, compared with net
income of $1.0 million ($0.05 per share) for the first quarter of the
previous year.
Revenues for the first quarter ended March 31, 2011, increased 75% to $56.4 million compared with revenues of
$32.3 million for the comparable
quarter in 2010. Revenue composition by product for the first
quarter of 2011 was 70% fish meal, 23% fish oil, 5% other
nutritional ingredients and 2% fish solubles and other.
The Company recorded operating income of $10.4 million, an 18.4% operating margin, for the
first quarter of 2011, versus operating income of $2.3 million, a 7.0% operating margin for the
first quarter of 2010.
The Company's increased first quarter 2011 revenue, gross profit
and gross profit as a percentage of revenue results, when compared
to the first quarter 2010, primarily reflected a 76% increase in
fish meal sales volumes attributable to export contract timing
issues and a 40% increase in fish oil sales mainly due to export
demand from the aquaculture industry, as well as a general increase
in global fats and oils commodity pricing.
As previously disclosed, subsequent to March 31, 2011, the Company entered into a final
settlement of all of its claims for costs and damages incurred as a
result of the oil spill caused by the Deepwater Horizon explosion
on April 20, 2010. As a result
of the final settlement, on April 18,
2011, the Company received an additional payment of
$26.2 million, net of fees and
expenses, but before taxes, from the Gulf Coast Claims Facility
which will be fully recognized during the second quarter of 2011.
This settlement further strengthens the Company's balance
sheet which at March 31, 2011, had
current assets of $127.3 million.
The Company's conference call on its first quarter 2011 earnings
will be held at 8:00 a.m., Central Daylight
Time, on Friday, May 6, 2011.
Any caller may dial 1-800-868-1837 (domestic callers) or
1-404-920-6440 (international callers) and enter the access code
136345# to join the call. Callers who wish to ask questions
must first pre-register at the Company's website
(http://www.omegaproteininc.com/investors/relations.aspx).
After pre-registering, the participant will receive an
individual participant code and must enter that individual code to
participate in the question and answer session.
About Omega Protein Corporation
Omega Protein Corporation is a nutrition and wellness company
dedicated to delivering healthy products to the animal, human and
plant nutrition industries. Omega Protein's marine product lines
are sourced from menhaden, an Omega-3 rich fish harvested along the
Atlantic and Gulf 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 possibility that the
Company's settlement of all claims arising from the Gulf of Mexico oil spill disaster will not be
sufficient to compensate the Company for future claims for damages
resulting from the 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
March
31,
|
|
|
|
2011
|
|
2010
|
|
|
|
(in
thousands, except per share amounts)
|
|
|
Revenues
|
$ 56,402
|
|
$ 32,272
|
|
|
Cost of sales
|
40,709
|
|
26,302
|
|
|
Gross profit
|
15,693
|
|
5,970
|
|
|
Selling, general and
administrative expense
|
4,851
|
|
3,267
|
|
|
Research and development
expense
|
485
|
|
435
|
|
|
(Other proceeds/gain) loss
relating to natural disaster and other, net
|
(18)
|
|
(1)
|
|
|
Operating income
|
10,375
|
|
2,269
|
|
|
Interest income (expense),
net
|
(596)
|
|
(644)
|
|
|
Other income (expense),
net
|
(60)
|
|
(89)
|
|
|
Income before income
taxes
|
9,719
|
|
1,536
|
|
|
Provision for income
taxes
|
3,765
|
|
557
|
|
|
Net income
|
$ 5,954
|
|
$ 979
|
|
|
Basic earnings per share
|
$
0.32
|
|
$ 0.05
|
|
|
Weighted average common shares
outstanding
|
18,879
|
|
18,739
|
|
|
Diluted earnings per
share
|
$
0.30
|
|
$ 0.05
|
|
|
Weighted average common shares
and potential
common share equivalents
outstanding
|
19,565
|
|
18,773
|
|
|
|
|
|
|
|
|
|
OMEGA
PROTEIN CORPORATION
CONDENSED
BALANCE SHEET
(Unaudited)
|
|
|
March
31,
2011
|
|
December
31,
2010
|
|
|
(in
thousands, except per share amounts)
|
|
ASSETS
|
|
|
|
|
Current assets
|
$ 127,330
|
|
$ 111,282
|
|
Property and equipment, net
|
111,425
|
|
111,726
|
|
Other assets
|
15,889
|
|
13,776
|
|
Total assets
|
$ 254,644
|
|
$ 236,784
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY
|
|
|
|
|
Current liabilities
|
$ 30,072
|
|
$ 27,569
|
|
Long-term debt, less current maturities
|
29,570
|
|
30,307
|
|
Capital lease obligation, net of current portion
|
696
|
|
820
|
|
Deferred tax liability, net of current portion
|
16,228
|
|
12,209
|
|
Pension
liabilities, net and other
|
7,919
|
|
8,352
|
|
Stockholders' equity
|
170,159
|
|
157,527
|
|
Total liabilities and stockholders' equity
|
$ 254,644
|
|
$ 236,784
|
|
|
|
|
|
|
Book value per share
outstanding
|
$
8.84
|
|
$
8.37
|
|
|
|
|
|
|
|
SOURCE Omega Protein Corporation