Bret Scholtes, Omega Protein's chairperson and CEO. (Photo Credit: Omega Protein/FIS)

Omega Protein reports ‘highest quaterly revenues in the company’s history’

UNITED STATES
Thursday, November 07, 2013, 23:40 (GMT + 9)

Omega-3 fish oil and specialty protein products company Omega Protein Corporation achieved a new record for quarterly revenues and gross profit in the third quarter ended 30 September, 2013.

"In the third quarter we reported the highest quarterly revenues and gross profits in the company's history, reflecting strong pricing and yields in our animal nutrition segment and contributions from the protein business recently acquired by our human nutrition segment," said Bret Scholtes, Omega Protein's President and Chief Executive Officer.

"We continue to make progress on our goal of building a more balanced nutrition company by growing our human nutrition business through the expansion of our dairy protein facility and additional value-added product offerings, a strategy we believe will generate stronger returns and decreased volatility over time," he added.

The company’s revenues increased by 4 per cent from USD 84.0 million in the third quarter last year to USD 87.6 million, and by 110 per cent compared to the second quarter of 2013 (USD 41.8 million).

Comparing Q3 results from 2013 and 2012, Omega Protein attributed the increase in revenues to a USD 1.1 million increase in animal nutrition revenues and a USD 2.6 million, or 49 per cent, increase in human nutrition revenues.

The growth in animal nutrition revenues was primarily due to increased sales prices of 29 per cent and 33 per cent for the company's fishmeal and fish oil, respectively, as well as a 61 per cent rise in fish oil volume, partially offset by decreased sales volume of 39 per cent for the company's fishmeal.  

The rise in human nutrition revenues was primarily due to sales of protein products from Wisconsin Specialty Protein, a business acquired by Omega Protein in the first quarter of 2013.  

The company reported gross profit of USD 29.4 million for the third quarter of 2013 versus USD 13.4 million in the same quarter of 2012. The growth was primarily due to an increase in the animal nutrition segment gross profit as a result of increased fish oil and fishmeal sales prices.  The human nutrition segment gross profit as a percentage of revenues also grew, rising from 16.7 per cent to 24.6 per cent, due primarily to the addition of the protein products business.

Net income for the third quarter of 2013 was USD 14.0 million (USD 0.66 per diluted share) compared to net income of USD 0.2 million (USD 0.01 per diluted share) for the same period last year and net income of USD 4.0 million (USD 0.19 per diluted share) for the second quarter of 2013.  

Adjusted EBITDA increased by 133 per cent year-on-year, from USD 11.6 million to USD 27.1 million. Compared to the second quarter of 2013, the increase was of 129 per cent.

Considering the first nine months of 2013, revenues increased by 3 per cent to USD 178.3 million compared to revenue of USD 172.5 million for the nine months ended 30 September, 2012. The rise in revenues for 2013 was due to a USD 4.6 million increase in human nutrition revenues and a USD 1.2 million rise in animal nutrition revenues.

The company recorded gross profit of USD 54.8 million versus USD 29.1 million for the first nine months of 2012, primarily due to a growth in animal nutrition segment gross profit.

Adjusted EBITDA totalled USD 48.9 million for the nine months that ended on 30 September, 2013, a rise from USD 24.0 million for the same period last year.

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