HOUSTON, March 12, 2007 -- Omega Protein Corporation (NYSE symbol: OME), the nation’s leading producer of Omega-3 fish oil and specialty fish meal products, today reported net income of $4.6 million (19 cents a share) for the fiscal year ended December 31, 2006, compared with a net loss of $7.2 million (29 cents a share) for the year ended December 31, 2005.
For the year ended December 31, 2006, the Company had revenues of $139.8 million, compared with $109.9 million in revenues for the year ended December 31, 2005. Omega Protein recorded operating income of $8.0 million for the year ended December 31, 2006, versus operating loss of $10.9 million for the year ended December 31, 2005.
Revenues for the fourth quarter ended December 31, 2006 were $26.1 million compared with revenues of $27.1 million for the comparable quarter in 2005. Omega Protein recorded operating income of $0.1 million for the 2006 fourth quarter, versus operating loss of $2.7 million for the fourth quarter of 2005.
The losses reported for the previous periods presented were attributable to the direct impact of two hurricanes on the Company’s facilities and operations in August and September of 2005. All of the Company’s Gulf of Mexico operations were impacted in 2005 and, to some extent, diminished capabilities carried forward into 2006. The Company’s 2006 results are the result of higher sales prices and increased sales volumes, offset by higher costs of sales. The higher costs of sales were attributable to increased energy costs, higher repair costs and poor fish oil production yields.
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® 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.”
Contact: Investor Relations Department (713) 623-0060
OMEGA PROTEIN CORPORATION
Statement of Operations
(Unaudited)
| |
Three Months
Ended December 31, |
|
Twelve Months
Ended December 31, |
| |
2006 |
|
2005 |
|
2006 |
|
2005 |
| |
(in thousands, except per share amounts) |
| Revenues |
$26,104 |
|
$27,137 |
|
$139,834 |
|
$109,896 |
| Cost of sales |
22,577 |
|
23,485 |
|
116,638 |
|
91,985 |
| Gross profit |
3,527 |
|
3,652 |
|
23,196 |
|
17,911 |
Selling, general and
administrative expense |
3,239 |
|
3,806 |
|
13,683 |
|
12,906 |
| Loss resulting from natural disasters |
197 |
|
2,560 |
|
1,548 |
|
15,743 |
| Loss (gain) on disposal of assets |
(20) |
|
14 |
|
9 |
|
149 |
| Operating income (loss) |
111 |
|
(2,728) |
|
7,956 |
|
(10,887) |
| Interest income (expense), net |
(895) |
|
(233) |
|
(1,938) |
|
(640) |
| Other expense (income), net |
(85) |
|
(52) |
|
(244) |
|
73 |
| Income (loss) before income taxes |
(869) |
|
(3,013) |
|
5,774 |
|
(11,454) |
| Provision (benefit) for income taxes |
(473) |
|
(1,201) |
|
1,202 |
|
(4,268) |
| Net income (loss) |
$(396) |
|
$(1,812) |
|
$4,572 |
|
$(7,186) |
| Basic earnings (loss) per share |
$(0.02) |
|
$(0.07) |
|
$0.19 |
|
$(0.29) |
| Average common shares outstanding |
22,026 |
|
25,024 |
|
24,322 |
|
24,974 |
| Diluted earnings (loss) per share |
$(0.02) |
|
$(0.07) |
|
$0.18 |
|
$(0.29) |
Average common shares and
common share equivalents outstanding |
22,026 |
|
25,024 |
|
25,200 |
|
24,974 |
OMEGA PROTEIN CORPORATION
CONDENSED BALANCE SHEET
(Unaudited)
| |
December 31, 2006 |
|
December 31, 2005 |
| |
(in thousands) |
| ASSETS |
|
|
|
| Current assets |
$89,759 |
|
$98,390 |
|
| Property and equipment, net |
100,776 |
|
93,965 |
|
| Deferred tax assets, net |
4,103 |
|
6,293 |
|
| Other assets |
6,080 |
|
1,579 |
|
| Total Assets |
$200,718 |
|
$200,227 |
|
| LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
| Current liabilities |
$18,683 |
|
$19,270 |
|
| Long-term debt, less current maturities |
72,693 |
|
27,658 |
|
| Other long-term liabilities |
8,252 |
|
10,932 |
|
| Stockhoders' equity |
101,090 |
|
142,367 |
|
| Total liabilities and stockholders' equity |
$200,718 |
|
$200,227 |
|
| Book value per share outstanding |
$6.24 |
|
$5.69 |
|
|
