Omega Protein Records $3.9 Million Profit for 2001.
Omega Protein recorded 2001 revenues of $98.8 million, compared with revenues of $84.0 million for 2000. The Company reported operating income for 2001 of $5.7 million, versus an operating loss of $25.5 million a year earlier.
For the fourth quarter of 2001, which ended December 31, Omega Protein recorded net income of $1.8 million (7 cents a share) on revenues of $23.9 million and operating income of $2.8 million. By comparison, the Company had a net loss of $4.4 million (18 cents a share) for the fourth quarter of 2000, with revenues that year of $25.9 million and an operating loss of $6.6 million.
Omega Protein's improved 2001 results compared with the previous year were largely the result of stronger world prices for the Company's products due to diminished global fish meal and fish oil inventories as opposed to stronger world demand for other competing products. The previous two years, 1999 and 2000, saw a very depressed pricing environment for fish meal and fish oil due to record U.S. overproduction of soybeans and global surpluses of soy and other proteins and edible oils. Fish meal and fish oil prices began to strengthen in early 2001 and then stabilized at an improved level for the balance of the year.
Also contributing to the Company's 2001 results was a 55 percent improvement in fish oil yield per ton as compared with 2000. In 2000, Omega Protein experienced unusually low fish oil yields due to drought-related conditions in the Gulf of Mexico.
Omega Protein's 2001 results also include a $66,000 increase in net income for the quarters ended June 30 and September 30 which reflect the accounting re-characterization of a charge for abnormal costs associated with the grounding of the Company's fleet of spotter aircraft following the September 11 terrorist attacks, and the treatment of an insurance receivable. (For more details, please see the footnote accompanying the Statement of Operations table which follows).
Headquartered in Houston, Omega Protein is the nation's leading producer of specialty fish meals which are used as high-protein ingredients in swine, dairy cattle, feedlot cattle, and other livestock and aquaculture feeds, and edible fish oil, which is high in nutritionally desirable Omega-3 fatty acids and is used in a variety of food products. Omega Protein makes its products exclusively from menhaden, a herring-like nonfood fish that occurs in abundance 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, 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 2001 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 PROTEIN CORPORATION STATEMENT OF OPERATIONS (Unaudited) Three Months Ended 12 Months Ended December 31, December 31, 2001 2000 2001 2000 (in thousands, except per share amounts) Revenues $23,899 $25,918 $98,752 $84,042 Cost of Sales 18,589 26,504 84,682 83,825 Inventory writedown --- 4,375 --- 18,117 Gross profit (loss) 5,310 (4,961) 14,070 (17,900) Selling, general and administrative expense 2,461 1,654 8,409 7,641 Operating income (loss) 2,849 (6,615) 5,661 (25,541) Interest income (expense), net (165) (178) (485) (293) Other (expense), net (85) (49) (151) (329) Income (loss) before income taxes 2,599 (6,842) 5,025 (26,163) Provision (benefit) for income taxes 820 (2,467) 1,140 (9,419) Net income (loss) $ 1,779 $(4,375) $ 3,885 $(16,744) Earnings (loss) per share (basic) $ 0.07 $ (0.18) $ 0.16 $ (0.70) Average common shares outstanding 23,949 23,917 23,938 23,903 Earnings (loss) per shares (diluted) $ 0.07 $ (0.18) $ 0.16 $ (0.70) Average common shares and common share equivalents outstanding 24,527 23,917 24,094 23,903
NOTE: Omega Protein's 2001 results also include a $66,000 increase in net income resulting from a restatement of the Company's financial results for the quarters ended June 30, 2001 and September 30, 2001. These restatements give effect to (i) the treatment of the valuation allowance attributable to an insurance receivable as a period expense, instead of a cost of inventory, and (ii) a return to cost of inventory of previously expensed abnormal costs associated with the FAA groundings of the Company's fleet of spotter aircraft as a result of the September 11 terrorist attacks. The effect of the restatement on net loss for the quarter ended June 30, 2001 was to increase the net loss from $21,000 to $527,000. The effect of the restatement on net income for the quarter ended September 30, 2001 was to increase net income from $2,438,000 to $3,010,000. The effect on net income for the combined restated two quarters (and for the year ended December 31, 2001) was to increase net income by $66,000. Further information regarding these restatements is set forth in the Company's Form 10-Q/As for the quarters ended June 30, 2001 and September 30, 2001.
OMEGA PROTEIN CORPORATION CONDENSED BALANCE SHEET (Unaudited) December 31, December 31, 2001 2000 (in thousands, except per share amounts) ASSETS Current assets $ 70,437 $ 58,393 Property and equipment, net 82,030 88,872 Deferred tax assets, net 5,653 3,433 Other assets 7,107 9,786 Total Assets $ 165,227 $ 160,484 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities $ 16,221 $ 18,139 Long-term debt, less current maturities 15,510 14,827 Deferred income taxes and other 6,051 --- Minority interest in consolidated subsidiary --- 41 Stockholders' equity 127,445 127,477 Total liabilities and stockholders' equity $ 165,227 $ 160,484 BOOK VALUE PER SHARE OUTSTANDING $ 5.32 $ 5.33
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Contact: Barney White, Corporate Vice President of Omega Protein Corporation, +1-713-623-0060
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|Date:||Mar 26, 2002|
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