Omega Protein Reports 2009 Results
The Company’s 2009 gross profit results, in comparison to 2008, primarily reflect decreased fish oil sales pricing of 35% in 2009 partially due to a substantial reduction in demand from the Chilean aquaculture industry.
12 Mar 2010 --- Omega Protein Corporation, the nation’s leading producer of Omega-3 fish oil and specialty fish meal products, reported net loss of $6.2 million ($0.33 per share) for the fiscal year ended December 31, 2009, compared with net income of $12.6 million ($0.69 per share) for the year ended December 31, 2008.
Revenues for the year ended December 31, 2009 were $164.9 million compared with revenues of $177.4 million for the year ended December 31, 2008. Omega Protein recorded operating loss of $4.3 million for the year ended December 31, 2009, versus operating income of $23.5 million for the year ended December 31, 2008.
For the fourth quarter ended December 31, 2009, the Company recognized revenues of $43.0 million, compared with $39.7 million in revenues for the fourth quarter ended December 31, 2008. Omega Protein recorded operating loss of $2.4 million for the 2009 fourth quarter, versus operating income of $2.5 million for the 2008 fourth quarter. The Company had net loss of $2.2 million ($0.11 per share) for the fourth quarter ended December 31, 2009, compared with net income of $0.8 million ($0.04 per share) for the fourth quarter ended December 31, 2008.
The Company’s 2009 gross profit results, in comparison to 2008, primarily reflect decreased fish oil sales pricing of 35% in 2009 partially due to a substantial reduction in demand from the Chilean aquaculture industry. The decrease in fish oil sales pricing coincides with significant price decreases in other commodity markets from 2008 to 2009. The decrease in fish oil sales pricing also contributed to the decrease in revenue from 2008 to 2009, but was partially offset by a 9% increase in total quantities of product sold.
During 2009, the Company repaid $30.6 million of debt outstanding under a prior credit facility, representing all of the Company’s non-Fisheries Finance Program bank debt, and obtained a new credit facility with Wells Fargo Bank, N.A. The new facility consists of a 3-year revolving credit facility of up to $35 million, including a $7.5 million sub-limit for the issuance of standby letters of credit. The new loan facility is secured by substantially all of the Company’s assets except for those already pledged in connection with existing federal Fisheries Finance Program loans. At December 31, 2009, the Company had no amounts outstanding under the new credit facility.
During 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. Additionally, the Company incurred $1.4 million of interest expense related to interest rate swaps which became ineffective during the period as a result of debt repayments related to the refinancing of the Company’s credit facility and $0.4 million related to the loss resulting from debt refinancing. Excluding these items from the results of operations, net loss for the year ended December 31, 2009 would have been approximately $6.8 million ($0.36 a share).
