Omega Protein Corp. (OME, Financial) filed Quarterly Report for the period ended 2010-03-31.
Omega Protein Corp. has a market cap of $99.3 million; its shares were traded at around $5.3 with and P/S ratio of 0.6. OME is in the portfolios of Robert Bruce of Bruce & Co., Inc., Chuck Royce of Royce& Associates.
Gross profit. Gross profit increased $0.2 million, or 2.6%, from $5.8 million for the quarter ended March 31, 2009 to $6.0 million for the quarter ended March 31, 2010. Gross profit as a percentage of revenue was 18.5% for the quarter ended March 31, 2010 as compared to 19.3% for the quarter ended March 31, 2009. The decrease in gross profit as a percentage of revenue was primarily due the decline in fish oil sales prices offset by the increase in fish meal sales prices as mentioned above and a slight decrease in per unit production costs experienced in the first quarter of 2010 as compared to the first quarter of 2009, as discussed above.
Interest expense. Interest expense decreased $0.3 million, or 28.1%, from $0.9 million for the quarter ended March 31, 2009 to $0.6 million for the quarter ended March 31, 2010. The decrease in interest expense is primarily due to the decreased debt balance associated with the Company repaying its bank term loan in September and October 2009. This decrease was partially offset by a decreased in capitalized interest, which is netted against interest expense, for the current quarter which was less than the prior year quarter due to the completion of a particular capital project.
Net financing activities used cash of $0.6 million and $2.0 million during the three month periods ended March 31, 2010 and 2009, respectively. The three month period ended March 31, 2010 included $0.8 million in debt principal payments offset by $0.3 million related to stock options exercised. The three month period ended March 31, 2009 included $2.0 million in debt principal payments.
On December 1, 2005, pursuant to the Title XI program, the United States Department of Commerce Fisheries Finance Program (the FFP) approved a second financing application made by the Company in the amount of $16.4 million (the Second Approval Letter). In May 2006, the Company submitted a $6.3 million financing request under the Second Approval Letter. The Company closed on the $6.3 FFP loan in the first quarter of 2007. In September 2009, the Company submitted a $10.0 million financing request under the remaining Second Approval Letter which it anticipates closing in the second quarter of 2010. As of March 31, 2010, the Company had approximately $25.1 million of borrowings outstanding under Title XI and was in compliance with all of the covenants contained therein.
On March 26, 2007 the Company entered into a credit agreement with Bank of America, N.A. (as administrative agent, lender, swing line lender and letter of credit issuer), Regions Bank, Compass Bank and Farm Credit Bank of Texas which provided the Company with a $55 million senior credit facility (the Senior Credit Facility) consisting of (i) a 5-year revolving credit facility of up to $20 million, including a $7.5 million sub-limit for the issuance of standby letters of credit and a $2.5 million sub-limit for swing line loans and (ii) a 5-year term loan (the Term Loan) of $35 million.
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Omega Protein Corp. has a market cap of $99.3 million; its shares were traded at around $5.3 with and P/S ratio of 0.6. OME is in the portfolios of Robert Bruce of Bruce & Co., Inc., Chuck Royce of Royce& Associates.
Highlight of Business Operations:
Revenues. Revenues increased $2.1 million, or 7.0%, from $30.2 million for the three months ended March 31, 2009 to $32.3 million for the three months ended March 31, 2010. The increase in revenues was due to higher sales prices of 18.1% for the Companys fish meal and higher sales volumes of 49.7% for the Companys fish oil, which was partially offset by lower sales volumes of 1.5% for the Companys fish meal and lower sales prices of 41.3% for the Companys fish oil. Considering fish meal, fish oil and fish solubles sales activities in total, the Company experienced a $0.2 million decrease in revenues due to the decline in sales prices and a $2.3 million increase in revenue caused by increased sales volumes, when comparing the three months ended March 31, 2010 to the three months ended March 31, 2009. The increase in fish meal prices in the first quarter of 2010 is due to a global tightening of fish meal availability. The decrease in fish oil prices from the first quarter of 2009 results from the timing of record high 2008 sales price contracts carried over into the first quarter of 2009.Gross profit. Gross profit increased $0.2 million, or 2.6%, from $5.8 million for the quarter ended March 31, 2009 to $6.0 million for the quarter ended March 31, 2010. Gross profit as a percentage of revenue was 18.5% for the quarter ended March 31, 2010 as compared to 19.3% for the quarter ended March 31, 2009. The decrease in gross profit as a percentage of revenue was primarily due the decline in fish oil sales prices offset by the increase in fish meal sales prices as mentioned above and a slight decrease in per unit production costs experienced in the first quarter of 2010 as compared to the first quarter of 2009, as discussed above.
Interest expense. Interest expense decreased $0.3 million, or 28.1%, from $0.9 million for the quarter ended March 31, 2009 to $0.6 million for the quarter ended March 31, 2010. The decrease in interest expense is primarily due to the decreased debt balance associated with the Company repaying its bank term loan in September and October 2009. This decrease was partially offset by a decreased in capitalized interest, which is netted against interest expense, for the current quarter which was less than the prior year quarter due to the completion of a particular capital project.
Net financing activities used cash of $0.6 million and $2.0 million during the three month periods ended March 31, 2010 and 2009, respectively. The three month period ended March 31, 2010 included $0.8 million in debt principal payments offset by $0.3 million related to stock options exercised. The three month period ended March 31, 2009 included $2.0 million in debt principal payments.
On December 1, 2005, pursuant to the Title XI program, the United States Department of Commerce Fisheries Finance Program (the FFP) approved a second financing application made by the Company in the amount of $16.4 million (the Second Approval Letter). In May 2006, the Company submitted a $6.3 million financing request under the Second Approval Letter. The Company closed on the $6.3 FFP loan in the first quarter of 2007. In September 2009, the Company submitted a $10.0 million financing request under the remaining Second Approval Letter which it anticipates closing in the second quarter of 2010. As of March 31, 2010, the Company had approximately $25.1 million of borrowings outstanding under Title XI and was in compliance with all of the covenants contained therein.
On March 26, 2007 the Company entered into a credit agreement with Bank of America, N.A. (as administrative agent, lender, swing line lender and letter of credit issuer), Regions Bank, Compass Bank and Farm Credit Bank of Texas which provided the Company with a $55 million senior credit facility (the Senior Credit Facility) consisting of (i) a 5-year revolving credit facility of up to $20 million, including a $7.5 million sub-limit for the issuance of standby letters of credit and a $2.5 million sub-limit for swing line loans and (ii) a 5-year term loan (the Term Loan) of $35 million.
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