Omega Protein Reports 2009 Second Quarter Results
August 06 2009 - 4:45PM
PR Newswire (US)
HOUSTON, Aug. 6 /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 loss of $3.3
million ($0.18 per share) for the second quarter of 2009, compared
with net income of $6.7 million ($0.37 per share) for the second
quarter of the previous year. Revenues for the second quarter ended
June 30, 2009 were $41.8 million compared with revenues of $47.1
million for the comparable quarter in 2008. Omega Protein recorded
operating loss of $3.9 million for the second quarter of 2009,
versus operating income of $11.6 million for the second quarter of
2008. For the six months ended June 30, 2009, the Company had
revenues of $71.9 million, compared with $83.2 million in revenues
for the first six months of 2008. Omega Protein recorded operating
income of $0.4 million for the six months ended June 30, 2009,
versus operating income of $15.7 million for the comparable period
a year earlier. The Company had net loss of $1.2 million ($0.06 per
share) for the six months ended June 30, 2009, compared with net
income of $8.6 million ($0.48 per share) for the six months ended
June 30, 2008. The Company's 2009 second quarter results reflect
decreased revenues and gross profit margins primarily due to lower
sales prices and increased per unit costs resulting from below
average fish catch in the 2008 fishing season and higher costs of
production due to increased energy, labor and repair costs, offset
partially by increased sales volumes when compared to the 2008
second quarter. The decreased sales prices are a result of the
general constriction of global markets and, more particularly as it
relates to fish oil, an inordinate reduction in demand from the
Chilean aquaculture industry. During the six months ended June 30,
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, net loss for
the six months ended June 30, 2009 would have been approximately
$3.4 million ($0.18 a share). As of June 30, 2009, the Company was
in compliance with all applicable financial covenants. Given the
recent economic conditions the Company is facing such as materially
reduced fish oil sales prices and increased costs of sales related
to the 2008 fishing season inventory, there is a likelihood that
the Company may not be able to remain in compliance with certain
financial covenants for the remainder of 2009. If current
conditions persist, it may be necessary for the Company to either
amend its existing financial covenants in its existing bank credit
facility, renegotiate the bank credit facility or take other
actions such as the temporary deferral of capital projects, or
prepayment of an amount of debt. The result of each of these
options is not readily apparent at this time but it is not expected
to adversely effect the Company's consolidated financial position
and results of operations. As a result of the current conditions in
the financial markets, no assurances can be given that such options
will be available on acceptable terms, if at all. 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,
Form10-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 Six Months Ended
June 30, Ended June 30, -------------- -------------- 2009 2008
2009 2008 ---- ---- ---- ---- (in thousands, except per share
amounts) Revenues $41,755 $47,128 $71,908 $83,237 Cost of sales
42,257 31,202 66,589 59,053 ------ ------ ------ ------ Gross
(loss) profit (502) 15,926 5,319 24,184 Selling, general and
administrative expense 3,107 3,988 6,513 7,663 Research and
development expense 325 332 682 650 (Insurance recoveries and other
proceeds) losses relating to natural disaster and other, net 2 (32)
(2,265) 185 --- --- ------ --- Operating (loss) income (3,936)
11,638 389 15,686 Interest income (expense), net (829) (841)
(1,645) (1,898) Other income (expense), net (120) (68) (214) (124)
---- --- ---- ---- (Loss) income before income taxes (4,885) 10,729
(1,470) 13,664 (Benefit) provision for income taxes (1,593) 4,019
(277) 5,042 ------ ----- ---- ----- Net (loss) income $(3,292)
$6,710 $(1,193) $8,622 ======= ====== ======= ====== Basic (loss)
earnings per share $(0.18) $0.37 $(0.06) $0.48 ====== ===== ======
===== Weighted average common shares outstanding 18,712 18,328
18,712 17,925 ====== ====== ====== ====== Diluted (loss) earnings
per share $(0.18) $0.36 $(0.06) $0.47 ====== ===== ====== =====
Weighted average common shares and potential common share
equivalents outstanding 18,712 18,703 18,712 18,358 ====== ======
====== ====== OMEGA PROTEIN CORPORATION CONDENSED BALANCE SHEET
(Unaudited) June 30, December 31, 2009 2008 ---- ---- (in
thousands, except per share amounts) ASSETS Current assets $117,670
$123,665 Property and equipment, net 112,570 106,181 Other assets
2,422 2,735 ----- ----- Total assets $232,662 $232,581 ========
======== LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities
$30,658 $26,853 Long-term debt, less current maturities 46,410
51,312 Capital lease obligation, net of current portion 1,463 1,634
Deferred tax liability, net of current portion 4,405 3,005 Pension
liabilities, net and other 9,806 10,220 Stockholders' equity
139,920 139,557 ------- ------- Total liabilities and stockholders'
equity $232,662 $232,581 ======== ======== Book value per share
outstanding $7.48 $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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