Omega Protein Reports 2009 First Quarter Results
May 07 2009 - 4:45PM
PR Newswire (US)
HOUSTON, May 7 /PRNewswire-FirstCall/ -- Omega Protein Corporation
(NYSE: OME), the nation's leading producer of Omega-3 fish oil and
specialty fish meal products, today reported net income of $2.1
million ($0.11 a share) for the first quarter of 2009, compared
with net income of $1.9 million ($0.11 a share) for the first
quarter of 2008. Revenues for the first quarter ended March 31,
2009 were $30.2 million compared with revenues of $36.1 million for
the comparable quarter in 2008. Omega Protein recorded operating
income of $4.3 million for the first quarter of 2009, versus
operating income of $4.0 million for the first quarter of 2008. The
Company's 2009 first quarter results reflect decreased revenues and
margins primarily due to lower sales volumes and increased per unit
costs, offset partially by increased sales prices when compared to
the 2008 quarter. The decreased sales volumes are a result of the
general constriction of the global markets. Increased pricing was
the result of carry over contracts entered into during 2008.
Pricing trends for the remainder of 2009 are expected to trend
downward, particularly for fish oil. Additionally, during the
quarter ended March 31, 2009, the Company received a federal
hurricane assistance grant of $2.7 million from the State of
Mississippi, net of fees, related to the impact of Hurricane
Katrina, which occurred during 2005. Excluding this grant from the
results of operations, reported net income for the quarter ended
March 31, 2009 would have resulted in Omega Protein reporting
approximately $0.5 million of net income ($0.02 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. 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 and
pricing for its products proving to be incorrect; (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; and (5) the impact of
the capital and credit market crisis. 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, Form
10-Q and Form 8-K. The Company also posts its latest internally
generated price list for various products on its Company website,
http://www.omegaproteininc.com/. Pricing and product availability
information disclosed in the price list are subject to change or
discontinuance without prior notice, and the Company undertakes no
obligation to update such information. OMEGA PROTEIN CORPORATION
Statement of Operations (unaudited) Three Months Ended March 31,
---------------------- 2009 2008 ---- ---- (in thousands, except
per share amounts) Revenues $30,153 $36,109 Cost of sales 24,332
27,851 ------ ------ Gross profit 5,821 8,258 Selling, general and
administrative expense 3,406 3,675 Research and development expense
357 318 (Insurance recoveries and other proceeds) losses relating
to natural disaster and other, net (2,267) 217 ----- --- Operating
income 4,325 4,048 Interest income (expense), net (816) (1,057)
Other income (expense), net (94) (56) --- --- Income before income
taxes 3,415 2,935 Provision for income taxes 1,316 1,023 -----
----- Net income $2,099 $1,912 ====== ====== Basic earnings per
share $0.11 $0.11 ===== ===== Weighted average common shares
outstanding 18,712 17,522 ====== ====== Diluted earnings per share
$0.11 $0.11 ===== ===== Weighted average common shares and
potential common share equivalents outstanding 18,732 17,904 ======
====== OMEGA PROTEIN CORPORATION CONDENSED BALANCE SHEET
(Unaudited) March 31, December 31, 2009 2008
-------------------------------- (in thousands, except per share
amount) ASSETS Current assets $118,106 $123,665 Property and
equipment, net 109,308 106,181 Other assets 2,423 2,735 ----- -----
Total assets $229,837 $232,581 ======== ======== LIABILITIES AND
STOCKHOLDERS' EQUITY Current liabilities $22,187 $26,853 Long-term
debt, less current maturities 48,978 51,312 Capital lease
obligation, net of current portion 1,551 1,634 Deferred tax
liability, net of current portion 4,679 3,005 Pension liabilities,
net and other 10,593 10,220 Stockholders' equity 141,849 139,557
------- ------- Total liabilities and stockholders' equity $229,837
$232,581 ======== ======== Book value per share outstanding $7.58
$7.46 ===== ===== Web site: http://www.buyomegaprotein.com/
DATASOURCE: Omega Protein Corporation CONTACT: Investor Relations
of Omega Protein Corporation, +1-713-623-0060, Web Site:
http://www.omegaproteininc.com/
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