 July 2008 Exhibit 99.1 |
The information presented herein may contain predictions, estimates and other forward- looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Although the Company believes that its expectations are based on reasonable assumptions, it can give no assurance that its goals will be achieved. Important factors that could cause actual results to differ materially from those included in the forward looking statements include: (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 Protein’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.” Omega Protein cautions you not to place undue reliance on these forward-looking statements, which speak only as of the date of this presentation, and Omega Protein undertakes no obligation to update this information. Omega Protein urges you to carefully review and consider the disclosures made in this presentation and its filings with the Securities and Exchange Commission that attempt to advise interested parties of the risks and factors that may affect its business. Some of the information presented is derived from third-party sources and, while the Company believes the data to be reliable, the Company has made no independent investigation of these third-party sources or attempted to verify the veracity of the third- party data in any way. |
 • Founded in 1913 • Approximately 1,100 employees • North America’s largest producer of fish meal • One of world’s largest fish oil producers • Attractive and growing target markets – Specialty animal feeds – Aquaculture feeds – Functional foods Company Overview |
 Office, Plant and Warehouse Locations Office, Plant and Warehouse Locations East Dubuque, IL Moss Point, MS Abbeville, LA Cameron, LA Avondale, LA Houston, TX Reedville, VA St, Louis, MO Norfolk, VA |
 Menhaden (Brevoortia tyrannus, Brevoortia patronus) Female can lay up to 400,000 eggs per year. Source: Amendment 1 to the Interstate Fishery Management Plan for Atlantic Menhaden. Atlantic States Marine Fisheries Commission, July 2001, p.5. |
 Menhaden: The Sustainable Resource “The status of the stock coastwide is considered to be healthy based on newly recommended benchmarks developed in the latest peer-reviewed stock assessment.” - National Marine Fisheries Service (2006 Stock Assessment) “The stock is not considered to be over-fished, nor is over- fishing occurring.” - 2006 Stock Assessment Report for Atlantic Menhaden. Atlantic Menhaden Technical Committee, September 26, 2006, p. ii “…NMFS reports a numerical by-catch incidence (i.e., fish that are unintentionally caught) of less than 0.1 percent for the menhaden fishing industry.” - “Substances Affirmed as Generally Recognized as Safe: Menhaden Oil,” Agency: FDA, Department of HHS. Federal Register: January 15, 2004, CFR Part 184. Docket Number 1999p-5332. |
 Purse Seine Fishing |
 • Not overfished • Fishing methods cannot impact the seabed • Low by-catch |
 Agriproducts |
 Slaughterhouse/Packer Processing Plant Hog Farmer Pet Food Retailer Aqua Producer Feed Manufacturer Feed Manufacturer Feed Manufacturer Swine Pet Aquaculture Food Store Food Store Feed to Food |
 Top 20 Feed Manufacturers: 2007 Company Headquarters Production Capacity (000) Cargill/Agribrands USA 17,500 Charoen Pokphand Thailand 15,200 Land O’Lakes USA 11,500 Tyson Foods USA 10,000 Zen-noh Co-operatives Japan 7,800 Nutreco Netherlands 6,100 Ucaab Co-operatives France 4,000 ABNA UK 3,800 Smithfield USA 3,600 Sadia Brazil 3,500 Provimi Netherlands 3,300 ADM Alliance Nutrition USA 3,200 Hope Group China 3,200 Ridley Australia 3,200 Perdigao Brazil 3,000 Bachoco Mexico 2,900 Perdue Farms USA 2,600 Glon France 2,600 DLG Denmark 2,500 Evialis France 2,400 Source: Gill, C. (2006, October). Top 25 companies. Feed International, 27(9), 10. |
 Omega Protein’s Products Omega Protein’s Products Menhaden Fish Oil Fish Meal Fish Solubles FAQ Aqua Oil Crude Oil |
 Fish Meal |
 World Meal Production 2007 Soybean 77% Other 1% Fish 3% Sunflower 6% Rapeseed 13% Source: Mielke, T (2008). Oil World Annual 2008 Vol. 1 – up to 2007/08. Hamburg, Germany: ISTA Mielke GmbH. |
 0 2,000 4,000 6,000 8,000 2001 2002 2003 2004 2005 2006 2007 Global Fish Meal Output US Peru Chile EU-27 Rest of World Source: Mielke, T (2008). Oil World Annual 2008 Vol. 1 - up to 2007/08. Hamburg Germany: ISTA Mielke GmbH. 6,403 6,468 5,611 6,417 6,086 5,464 5,441 |
 Omega Protein Fish Meal Production 57,833 99,049 34,661 122,140 40,795 102,406 29,016 109,922 30,944 105,203 19,250 127,695 23,605 119,521 0 50,000 100,000 150,000 200,000 2001 2002 2003 2004 2005 2006 2007 FAQ Specialty |
 Market Prices Source: The Jacobsen |
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 Omega Protein Average Price per Ton Fish Meal $348 $407 $469 $498 $537 $562 $646 $799 $0 $200 $400 $600 $800 $1,000 2000 2001 2002 2003 2004 2005 2006 2007 Current Spot as of 06/26/08 $900 |
 Omega Protein Fish Meal Markets Dairy 10% Swine 30% Poultry 4% Aqua 42% Pet 11% Other 3% Aqua 18% Pet 11% Poultry 20% Dairy 12% Other 2% Swine 37% 2000 2007 |
 Fish Oil |
 Global Production of Oils and Fats 2007 Sunflower 8% Palm Oil 29% Other Oils 15% Fish Oil 1% Rapeseed 14% Butter 5% Soybean Oil 28% Source: Mielke, T. (Ed.). (2007). Oil World Annual. Hamburg, Germany: ISTA Mielke GmbH, (Oils & Fats, Summary 3). |
 Source: Mielke, T (2008). Oil World Annual 2008 Vol. 1 - up to 2007/08. Hamburg, Germany: ISTA Mielke GmbH. 1,127 946 1,006 1,129 988 1,021 1,060 0 200 400 600 800 1,000 1,200 2001 2002 2003 2004 2005 2006 2007 Global Fish Oil Output USA Peru Chile EU-27 Rest of World |
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 Omega Protein Fish Oil Markets Beef 14% Agronomy 1% Industrial 3% Dairy 1% Aquaculture 67% Pet 12% Swine 2% 2000 2007 Hydrogenation 80% Beef 13% Aquaculture 7% |
 Omega Protein’s Average Price per Ton Fish Oil as of 06/26/08 $1600 $215 $313 $461 $459 $540 $594 $652 $787 $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 2000 2001 2002 2003 2004 2005 2006 2007 Current Spot |
 Refined Oil Price History 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1 1.1 1.2 1.3 Crude VPG |
 Refined Oil Markets (2006) Total Volume: 9,596 MT Aquaculture 17% Dairy 7% Equine 2% Industrial 19% Pet 47% Poultry 2% Agronomy 3% Swine 3% Refined Oil Markets (2007) Total Volume: 11,264MT Aquaculture 7% Industrial 14% Pet 66% Dairy 3% Agronomy 3% Swine 5% Poultry 2% |
 Developing Markets • Aquaculture: Increasing demand for farmed salmon and other seafood. • Pets: Rising pet ownership and demand for balanced foods (Omega-3s). • Swine: Demand for pork increasing, especially in developing countries. |
 Refined Oil Shipments $0 $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 2002 2003 2004 2005 2006 2007 Virginia Prime Silver Virginia Prime Gold |
 Shrimp Aquaculture Atlantic Salmon Trout Cobia Tilapia Catfish Striped Bass Redfish Alligator Crawfish Cod Red Snapper |
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 Sales Forecasts of Pet Products by Region (billions) 15.1% $67.0 $58.3 WORLD 22.9% 0.69 0.56 Africa/Middle East 17.4% 2.0 1.7 Australasia 13.8% 7.9 7.0 Asia Pacific 40.2% 5.5 3.9 Latin America 11.3% 24.7 22.2 North America 72.9% 2.7 1.6 Eastern Europe 10.1% $23.5 $21.4 Western Europe % Change 2010 2005 Region Source: Phillips, T. (2007, January). The petfood market in 2010. Petfood Industry, 49(1), 6 (Euromonitor International). |
 14.1 $48,017.8 $42,077.8 Total cat and dog food 11.9 $18,099.9 $16,174.4 Total cat food 20.1 $ 756.1 $ 629.5 Cat treats and mixers 1.5 $ 2,342.6 $ 2,306.9 Economy cat food 8.3 $ 7,093.8 $ 6,548.8 Mid-priced cat food 18.2 $ 7,907.3 $ 6,689.2 Premium cat food 15.5 $29,917.9 $25,903.4 Total dog food 19.8 $ 4,786.1 $ 3,994.9 Dog treats and mixers 10.5 $ 4,214.4 $ 3,815.1 Economy dog food 9.8 $10,077.9 $ 9,180.7 Mid-priced dog food 21.6 $10,839.6 $ 8,912.7 Premium dog food % Growth 2010 2005 Category Global Sales of Dog and Cat Food Source: Euromonitor 2006. Higgins, E. (2006, September). Global Growth Trends. Petfood Industry, 48(9), 24 |
 Swine |
 The World Market Demand for Meat Source: Hartog, L. (2005, April). Global Perspective on Integrated Pork Production. Presented at the London Swine Conference, England. |
 Market Dynamics • More pork is consumed in the world than any other meat. – Pork production: 93 million tons – Chicken production: 72 million tons – Beef production: 60 million tons • Pork production is increasing rapidly in developing countries. Source: Nierenberg, D. “Meat production and consumption grow”. Mindfully. Retrieved May 24, 2007, from Mindfully.org Web site: http://www.mindfully.org/Food/2003/Meat-Production-WorldwideMay03.htm |
 Pork Production 2003 Pork Production by Country Historical and Projected Pork Production Source: Speedy, A. Overview of world feed protein needs and supply. Retrieved May 24, 2007, from FAO Corporate Document Repository Web site: http://www.fao.org/docrep/007/y5019e/y5019e05.htm 1.76 Denmark 1.80 Vietnam 1.91 Canada 2.20 Poland 2.35 France 2.60 Brazil 3.20 Spain 4.12 Germany 8.93 USA 43.46 China Pork Production (%) Country Source: Hartog, L. (2005, April). Global Perspective on Integrated Pork Production. Presented at the London Swine Conference, England. |
 Universities Utilizing Omega Protein’s Fish Oil for Research |
 Research (Meal and Oil) Horses: Improved reproductive function (sperm output and motility) University of Arizona Lower exercising heart rates and improved recovery time University of Kentucky Improved immune response University of Florida Improved athletic response-inflammation Texas A&M University Swine: Increased average daily gain vs. other products Kansas State University Superior fatty acid profile improves immunity in baby pigs University of Missouri Improved reproductive performance Kansas State University Improved number of pigs per litter Kansas State University Aquaculture: Improved feed conversion (trout) vs. plant protein Purdue University Omega-3 deposition in catfish flesh Mississippi State University Improved digestibility in shrimp vs. Mexican fish meal University of Nuevo Leon Pets: Improved skin and coat condition Cornell University/Iams Improved healing (wound and surgery) Auburn University Improved cancer longevity (lymphoma) Hills Improved trainability of puppies Iams |
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 World Population Growth Industrial Agricultural Hunter-Gatherer 1850 1 1930 2 1960 3 1976 4 1986 5 2006 6 (-4x10 6 years) (-10,000 years) 1800 1900 2000 Source: Leaf and Weber Am J Clin Nutr 1987;45:1048-1053 |
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 0.02 lbs/pers/year-1909 25.0 lbs/pers/year-1999 Source: J. Hibbeln, M.D., National Institute of Health, Bethesda, MD Soy oil production for food consumption USA, 1909-1999 Year 1900 1920 1940 1960 1980 2000 0 5 10 15 20 25 30 |
 Estimated Fatty Acid Content Source: Am J Clin Nutr 2006; 83(suppl): 14835-935 1,436 439 Atlantic salmon 1,173 96 Bluefin tuna 928 735 Freshwater trout 0 65,700 Sunflower oil 0 51,000 Soybean oil 0 41,300 Sesame oil 0 20,300 Canola oil 0 7,900 Olive oil mg/100g mg/100g Omega-3 (EPA + DHA) Omega-6 |
 • Most vegetable oils • Corn • Soy • Canola • Safflower • Sunflower • Breads and Baked Goods • Cereals • Eggs and poultry • Nuts Foods Rich in Omega-6 Fatty Acids |
 Dyerberg and Bang Study 2.8% 13.7% Omega-3 10.0% 5.4% Omega-6 Danish Greenland Eskimo Food Composition 34.7% 5.3% Danish Greenland Eskimo Ischemic Heart Disease Source: Dyerberg J. Observations on populations in Greenland and Denmark. In: Barlow SM. Stansby ME, eds. Nutritional evaluation of long-chain fatty acids in fish oil. New York, NY: Academic Press, 1982:245-61. |
 PDAY Study Heart Disease Begins in Childhood Source: PDAY results, Art. Thromb. Vasc. Biol. 19:753-761(1999) 100% of 15 - 19 age group already had atherosclerosis! Prevention must begin in childhood! 30% 40% 30 – 34 10% 20% 15 – 19 Coronary Artery Aorta Age % of Subjects Showing Damage to: Autopsied 2,875 persons aged 15 to 34 who died of external causes. |
 More Omega-3 = Less CHD 0 50 100 150 200 25 35 45 55 65 75 85 Greenland Japan Spain United States Source: Lipids 38, 317-321 (April 2003) % Omega-6 in Tissue HUFA |
 Omega-3 Food Introductions (1996 –May 2008) Fish 139 OmegaPure fortified 12 Long-chain fortified 46 Short-chain fortified 428 Source: Datamonitor Product Scan Online Database. |
 The Future of Fish Oil Source: Packaged Facts: Omega-3 Foods and the U.S. Food and Beverage Market, March 2007 28.6% 71.4% 70.0% 30.0% 100.0% 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% 2011 2006 2002 Percent Share of ALA vs DHA/EPA 2002-2011 ALA EPA and DHA |
 Omega-3 Consumer Awareness • 78% relate fish oil to reduced risk of heart disease 43% already consuming 39% likely to consume • 55% relate fish oil to cognitive development 45% already consuming 34% likely to consume Source: Packaged Facts: Omega-3 Foods and the U.S. Food and Beverage Market, March 2007 Awareness of fish oil is 25% higher than that of Omega-3 fatty acids . |
 100.0 400.0 820.0 1,399.7 2,000.2 3,500.3 4,798.9 5,499.5 6,104.4 7,001.7 $0 $2,000 $4,000 $6,000 $8,000 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Source: Packaged Facts: Omega-3 Foods and the U.S. Food and Beverage Market, March 2007 75% 37% 15% 11% 15% Percent increase: * These numbers include flax Retail Sales of Omega-3 Fortified Products* |
 Food-Grade Menhaden Potential |
 Global Capture Production Source: “The State Of World Fisheries And Aquaculture.” FAO Fisheries and Aquaculture Department. Food And Agriculture Organization Of The United Nations. Rome 2007 Metric Tons |
 Global Capture Production 95.6 93.1 93.3 90.5 95.0 93.8 0 10 20 30 40 50 60 70 80 90 100 2000 2001 2002 2003 2004 2005 Source: “The State Of World Fisheries And Aquaculture.” FAO Fisheries and Aquaculture Department. Food And Agriculture Organization Of The United Nations. Rome 2007 |
 Source: Christopher Lischewski. The Global Seafood Industry: A Perspective on Consumption and Supply. Retrieved on May 23, 2008. http://www.bob-russell.net/Seafood/web/presentations/Lischewski%20-%20SeafoodGlobalConsumptionAndSupply0220306.doc Figure Source: United Nations Department of Economic and Social Affairs/Population Division World Population to 2300 Retrieved on May 23, 2008. http://www.un.org/esa/population/publications/longrange2/WorldPop2300final.pdf • By 2025, the global population is expected to grow to 8.5 billion. • Assuming no increase in per capita seafood consumption, global seafood demand during this period would grow by a further 50 million tons. Global Population Projection |
 Global Utilization of Production 0 20 40 60 80 2000 2001 2002 2003 2004 2005 Human Consumption Non-food uses Source: “The State Of World Fisheries And Aquaculture.” FAO Fisheries and Aquaculture Department. Food And Agriculture Organization Of The United Nations. Rome 2007 |
 Global Aquaculture Production 35.5 37.9 40.4 42.7 45.5 47.8 25 35 45 2000 2001 2002 2003 2004 2005 Source: “The State Of World Fisheries And Aquaculture.” FAO Fisheries and Aquaculture Department. Food And Agriculture Organization Of The United Nations. Rome 2007 |
 -4 -3 -2 -1 0 1 2 3 4 5 6 7 Projected Protein Consumption Shift in U.S. Population, 2000-2020 Beef Pork Poultry Seafood Source: H.M. Johnson. “An analyses to assess the demographic future of seafood service markets.” Vision 2020 Annual Report on the United States. United States Department of Agriculture. |
 - 25.2% of total weight (E) Waste - 24.5% of total weight (D) Belly Flaps - 36.3% of total weight (C) Dressed backs - 14.0% of total weight (B) Dressed heads - Av. fork length 185 mm, av. wt. 126.9 g. (A) Whole Fish Typical Composition FGGM 5.19% 4.15% 3.50% 7.07% 4.61% Ash 10.01% 16.55% 17.22% 14.36% 15.29% Protein 20.57% 22.14% 14.24% 16.14% 17.85% Fat 59.14% 58.31% 64.13% 61.15% 61.27% Moisture E D C B A Proximate Composition Food-Grade Gulf Menhaden |
 Mahi Mahi Dolphin fish Chilean Sea Bass Patagonian toothfish Orange Roughy Deep Sea Perch Black Kingfish Lemon Fish Cobia Pink Salmon Humpback Salmon Marketed Name Original Fish Names Changed for Marketing Purposes |
 Financial Review |
 Revenue and Profitability Trends Actual ($ in millions, except per share data) 2004 2005 2006 2007 Q1 2008 TTM Sales 120 $ 110 $ 140 $ 157 $ 36 $ 162 $ % Growth -8.3% 27.3% 12.1% Gross Profit % 12.9% 16.3% 16.6% 22.1% 22.9% 22.6% EBITDA (TTM less one time charges) 16 $ 16 $ 23 $ 30 $ 35 $ 35 $ Net Income (GAAP) 3.2 (7.2) 4.6 12.1 1.9 16.3 Basic Earnings per Share (GAAP) 0.13 (0.29) 0.19 0.72 0.11 0.91 Basic Shares 24.5 25.0 24.3 16.8 17.5 17.5 Capital Expenditures 23 18 20 8 5 10 Historical Revenue in Millions 100 119 138 156 175 2004 2005 2006 2007 Gross Profit Percentage 10% 14% 17% 21% 24% 2004 2005 2006 2007 EBITDA in Millions 10 16 23 29 35 2004 2005 2006 2007 |
 Cash, Debt and Leverage Statistics Dec. 31 Dec. 31 March 31 2006 2007 2008 Cash 8.0 $ 19.3 $ 25.9 $ Title XI Debt 27.7 31.1 29.9 Bank of America Debt - 34.1 33.3 Ableco Debt 47.5 - - Total Debt 75.2 $ 65.2 $ 63.2 $ Total Shareholders Equity 101.1 $ 118.5 $ 124.1 $ EBITDA 22.6 30.4 35.4 Key Credit Statistics Total Debt/Equity 74% 55% 51% Net Debt/EBITDA 3.0 1.5 1.1 Total Debt/EBITDA 3.3 2.1 1.8 Debt Maturity Schedule $7.7 $6.3 $9.4 $9.6 $13.9 $18.3 $0 $5 $10 $15 $20 2008 2009 2010 2011 2012 Thereafter |
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 Middle Market Spreads (Source: Bank of America) 150 250 350 450 Sponsored Non-Sponsored Omega Protein Cerberus BoA Debt |
 July 2008 |