Exhibit 99.1
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Omega Protein Reports 2009 First Quarter Results
HOUSTON, May 7, 2009 – 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 $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, Form10-Q and Form 8-K. The Company also posts its latest internally generated price list for various products on its Company website,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)
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| | | 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 | |
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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 | ) |
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Income before income taxes | | | 3,415 | | | | 2,935 | |
Provision for income taxes | | | 1,316 | | | | 1,023 | |
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Net income | | $ | 2,099 | | | $ | 1,912 | |
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Basic earnings per share | | $ | 0.11 | | | $ | 0.11 | |
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Weighted average common shares outstanding | | | 18,712 | | | | 17,522 | |
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Diluted earnings per share | | $ | 0.11 | | | $ | 0.11 | |
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Weighted average common shares and potential common share equivalents outstanding | | | 18,732 | | | | 17,904 | |
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OMEGA PROTEIN CORPORATION
CONDENSED BALANCE SHEET
(Unaudited)
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| | | March 31,
2009 | | December 31,
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 |
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Total assets | | $ | 229,837 | | $ | 232,581 |
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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 |
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Total liabilities and stockholders’ equity | | $ | 229,837 | | $ | 232,581 |
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Book value per share outstanding | | $ | 7.58 | | $ | 7.46 |
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CONTACT:
Investor Relations, (713) 623-0060 ORhq@omegahouston.com
Web site:www.buyomegaprotein.com
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