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Strategies & Market Trends : Value Investing

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To: E_K_S who wrote (49974)5/8/2013 1:33:51 PM
From: E_K_S  Read Replies (1) of 78498
 
This is one I continue to hold a small position in. Company out w/ pretty good earnings. The thing that attracted me to this company is it sold at a discount to it's tangible book. I started to pick up shares around $8.00/share. TBV is/was $10.34/share. Company remains profitable but as they moved into the gel tablet fish oil business, EPS were lower due to one time charges and certain seasonal fish catch limits.

Their fish Oil Gel tablets is a high margin business. Going forward as they grow this segment, that may help smooth out both revenues and earnings. PE is tracking at 14x but falling w/ analysts looking at a forward PE at 11x.

Omega Protein Corp. (OME) -NYSE
10.08 1.29 +14.72%

Omega Protein Announces First Quarter 2013 Financial Results

First Quarter 2013 Highlights

o Revenues: $48.9 million for the quarter, compared to $63.1 million in the 2012 fourth quarter and $41.1 million in the 2012 first quarter
o Gross profit margin: 24.7% for the quarter, an increase from 20.5% in the 2012 fourth quarter and 21.6% in the 2012 first quarter
o Net income/loss: Net income of $2.8 million for the quarter, compared to a net loss of $0.5 million in the 2012 fourth quarter and net income of $1.8 million in the 2012 first quarter
o Earnings: Earnings per diluted share of $0.14 for the quarter, compared to a loss per diluted share of $0.03 in the 2012 fourth quarter and earnings per diluted share of $0.09 in the 2012 first quarter
o Adjusted EBITDA: $10.0 million for the quarter, compared to $11.6 million in the 2012 fourth quarter and $7.2 million in the 2012 first quarter

"We continued to benefit from better animal nutrition sales prices which helped us generate our third consecutive quarter of consolidated gross margin expansion and increased earnings versus last year's first quarter. This was achieved despite higher cost per unit of sales associated with the low fish yields in the 2012 fishing season," commented Bret Scholtes, Omega Protein's President and Chief Executive Officer. "We are encouraged by the progress in our human nutrition segment in the first quarter as sales of our OmegaActiv concentrated fish oil continued to grow and we expanded into the dairy protein market with our acquisition of Wisconsin Specialty Protein. We believe our human nutrition segment growth initiatives will drive improved consolidated margins in the long-term."
EKS
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