HOUSTON, July 31 /PRNewswire-FirstCall/ -- Omega Protein Corporation (NYSE:OME) , the nation's leading producer of Omega-3 fish oil and specialty fish meal products, today reported net income of $2.4 million (10 cents a share) for the second quarter of 2003, compared with net income of $2.9 million (12 cents a share) for the second quarter of the previous year.
Revenues for the second quarter ended June 30, 2003 were $27.3 million compared with revenues of $27.2 million for the comparable quarter of 2002. Omega Protein recorded operating income of $3.9 million for the 2003 second quarter, versus operating income of $4.7 million for the second quarter of 2002.
For the six months ended June 30, 2003, the Company had revenues of $52.4 million, compared with $50.7 million in revenues for the first six months of 2002. Omega Protein recorded operating income of $8.1 million for the six-month period in 2003, versus operating income of $9.2 million for the comparable period a year earlier. The Company had net income of $5.0 million (21 cents a share) for the 2003 period, compared with net income of $5.7 million (23 cents a share) for the first six months of 2002.
Omega Protein's second quarter results, as well as the results for the first six months of 2003, reflect reduced margins primarily due to higher cost of inventories carried forward from the 2002 fiscal year, partially offset by higher prices received during the current year.
Omega Protein Corporation is the nation's largest manufacturer of heart- healthy fish oils containing Omega-3 fatty acids for human consumption, as well as specialty fish meals and fish oil used as value-added ingredients in aquaculture, swine and other livestock feeds. Omega Protein makes its products 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 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, fish oil yields, 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 2002 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."