Omega Protein Corporation (NYSE: OME), the nation’s leading producer of Omega-3 fish oil and other marine protein products, today reported a net loss of $1.3 million (5 cents a share) for the second quarter of 2000, compared with a net loss of $518,000 (2 cents a share) for the comparable quarter a year earlier.
Revenues for the quarter ended June 30, 2000 totaled $20.9 million, compared with revenues of $18.2 million for the quarter ended June 30, 1999. Omega Protein had an operating loss of $1.9 million for the 2000 second quarter, versus an operating loss of $961,000 for the 1999 second quarter.
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Continued depressed prices for Omega Protein’s products were the principal reason for the Company’s net loss for the quarter. Sales volumes for the Company’s fish meal increased 55 percent during the 2000 second quarter, compared with the second quarter of 1999, but this was offset by a nearly 17 percent decrease in the selling price of fish meal for the quarter compared with the previous year. Prices and sales volumes for Omega Protein’s fish oil were down 15 percent and 28 percent, respectively, for the 2000 quarter compared with the second quarter of 1999.
“Current crop projections indicate that for the second year in a row the United States will have a record soybean harvest. This glut of oilseeds continues to depress prices for protein meals and edible oils generally, including the fish meal and oil produced by Omega Protein,” Omega Protein President and Chief Executive Officer Joe von Rosenberg said.
For the six months ended June 30, 2000, Omega Protein posted revenues of $40.3 million compared with revenues of $40.4 million for the first six months of 1999. An operating loss of $3.1 million was recorded for the six-month period, versus operating income of $3.5 million a year earlier. The Company had a net loss of $2.2 million (9 cents a share) for the 2000 period, compared with net income of $2.5 million (11 cents a share) for the first six months of 1999.
Headquartered in Houston, Omega Protein is the nation’s leading producer of edible fish oil, which is high in nutritionally desirable Omega-3 fatty acids and is used in a variety of food products. Omega Protein also produces specialty fish meals for use in livestock feeds, and fish solubles which are used as an organic fertilizer and in other applications.
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By GlobalDataSPECIAL 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 in 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, adverse weather conditions and disease; (2) the impact of worldwide supply and demand relationships on prices for the Company’s products; and (3) 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 1999 Annual Report on Form 10K under the headings, “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Significant Factors That May Affect Forward-Looking Statements” and “– Seasonality and Quarterly Results.” Omega assumes no obligation to publicly update or revise any forward-looking statements made in this release based on future events or circumstances.
OMEGA PROTEIN CORPORATION
Unaudited Condensed Consolidated Statement of Operations
Three Months Six Months
Ended June 30, Ended June 30,
2000 1999 2000 1999
(in thousands, except per share amounts)
Revenues $20,873 $18,222 $40,260 $40,377
Cost of sales 20,729 16,883 39,026 32,369
Gross profit 144 1,339 1,234 8,008
Selling, general and
administrative expense 2,005 2,300 4,377 4,488
Operating income (loss) (1,861) (961) (3,143) 3,520
Interest income (expense), net 19 274 (14) 659
Other income (expense), net (158) (120) (250) (208)
Income (loss) before
income taxes (2,000) (807) (3,407) 3,971
Provision (benefit) for
income taxes (721) (289) (1,227) 1,429
Net income (loss) $(1,279) $(518) $(2,180) $2,542
Earnings (loss) per share
basic and diluted $(0.05) $(0.02) $(0.09) $ 0.11
Average common shares
outstanding 23,899 23,897 23,894 24,053
OMEGA PROTEIN CORPORATION
CONDENSED BALANCE SHEET
(Unaudited)
June 30, December 31,
2000 1999
(in thousands, except
per share amounts)
ASSETS
Current assets $75,244 $78,673
Property and equipment, net 91,764 90,368
Other assets 8,885 7,107
Total Assets $175,893 $176,148
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $17,862 $14,949
Long-term debt, less current maturities 15,450 16,069
Deferred income taxes and other 599 958
Stockholders' equity 141,982 144,172
Total liabilities and stockholders' equity $175,893 $176,148
BOOK VALUE PER SHARE OUTSTANDING $5.94 $6.04
