HOUSTON, Nov. 6 Omega Protein Corporation(NYSE: OME), the nation's leading producer of Omega-3 fish oil and specialtyfish meal products, today reported net income of $7.2 million (42 cents ashare) for the third quarter of 2007, compared with net income of $1.8 million(7 cents a share) for the third quarter of the previous year.
Revenues for the third quarter ended September 30, 2007 were $44.6 millioncompared with revenues of $52.1 million for the comparable quarter in 2006.Omega Protein recorded operating income of $12.3 million for the 2007 thirdquarter, versus operating income of $3.0 million for the third quarter of2006.
For the nine months ended September 30, 2007, the Company had revenues of$112.8 million, compared with $113.7 million in revenues for the first ninemonths of 2006. Omega Protein recorded operating income of $18.6 million forthe nine months ended September 30, 2007, versus operating income of$7.8 million for the comparable period a year earlier. The Company had netincome of $7.4 million (44 cents a share) for the nine months ended September30, 2007, compared with net income of $5.0 million (20 cents a share) for thenine months ended September 30, 2006.
Omega Protein's third quarter results reflect increased margins primarilydue to higher sales prices received during the current year, partially offsetby a decline in sales volume of both fish meal and fish oil. Additionally,results for the three and nine months ended September 30, 2007 were favorablyimpacted by the settlement of the lawsuit with its primary insurance carrierpertaining to damages sustained from Hurricanes Katrina and Rita in 2005.Subsequent to September 30, 2007, the Company also finalized a settlement withits secondary insurance carrier which will be recognized in the fourth quarterof 2007. The results for the nine months ended September 30, 2007 were alsoimpacted by the net loss incurred during the first quarter of 2007 which wasprimarily due to the write-off of approximately $3.0 million in deferred debtissuance costs and prepayment fees resulting from the refinancing of theCompany's prior credit agreement with a new credit facility which closed inMarch 2007.
About Omega Protein
Omega Protein Corporation is the nation's largest manufacturer ofheart-healthy fish oils containing Omega-3 fatty acids for human consumption,as well as specialty fish meals and fish oil used as value-added ingredientsin aquaculture, swine and other livestock feeds. Omega Protein makes itsproducts 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 AtlanticCoasts.
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS: The statementscontained in this press release that are not historical facts are forward-looking statements that involve a number of risks and uncertainties. Theactual results of future events described in any of these forward-lookingstatements could differ materially from those stated in the forward-lookingstatements. Important factors that could cause actual results to bematerially different from those forward-looking statements include, amongothers: (1) the Company's ability to meet its raw material requirementsthrough its annual menhaden harvest, which is subject to fluctuations due tonatural conditions over which the Company has no control, such as varying fishpopulation, fish oil yields, adverse weather conditions and disease; (2) theimpact of worldwide supply and demand relationships on prices for theCompany's products; (3) Omega Protein's expectations regarding demand forOmegaPure(R) proving to be incorrect; and (4) fluctuations in the Company'squarterly operating results due to the seasonality of the Company's businessand its deferral of inventory sales based on worldwide prices