Omega Protein Corporation (OME) has reported a 47.23 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $4.31 million, or $0.19 a share in the quarter, compared with $2.93 million, or $0.13 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $6.75 million, or $0.30 a share compared with $6.46 million or $0.29 a share, a year ago.
Revenue during the quarter went up marginally by 2.78 percent to $84.58 million from $82.30 million in the previous year period. Gross margin for the quarter contracted 129 basis points over the previous year period to 26.76 percent. Total expenses were 90.55 percent of quarterly revenues, down from 92.11 percent for the same period last year. This has led to an improvement of 155 basis points in operating margin to 9.45 percent.
Operating income for the quarter was $7.99 million, compared with $6.50 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $16.85 million compared with $18.87 million in the prior year period. At the same time, adjusted EBITDA margin contracted 301 basis points in the quarter to 19.92 percent from 22.93 percent in the last year period.
"We had a solid finish to a very good year. Our team executed on our strategic initiatives while managing the controllable aspects of our business, and we achieved a record annual gross profit in 2016," commented Bret Scholtes, Omega Protein's president and chief executive officer. "We are pleased with the animal nutrition segment results, and will continue exploring ways to improve our consolidated business, including the previously announced strategic review of the human nutrition segment. We remain committed to enhancing value for shareholders by prudently investing in our business and returning cash to our shareholders through our recently announced dividend program."
Operating cash flow improves significantly
Omega Protein Corporation has generated cash of $93.73 million from operating activities during the year, up 130.70 percent or $53.10 million, when compared with the last year.
The company has spent $36.28 million cash to meet investing activities during the year as against cash outgo of $34.65 million in the last year. It has incurred net capital expenditure of $36.28 million on net basis during the year, up 4.70 percent or $1.63 million from year ago.
The company has spent $20.69 million cash to carry out financing activities during the year as against cash outgo of $6.74 million in the last year period.
Cash and cash equivalents stood at $37.41 million as on Dec. 31, 2016, up 5,559.91 percent or $36.75 million from $0.66 million on Dec. 31, 2015.
Working capital increases
Omega Protein Corporation has recorded an increase in the working capital over the last year. It stood at $136.89 million as at Dec. 31, 2016, up 15.31 percent or $18.17 million from $118.72 million on Dec. 31, 2015. Current ratio was at 3.44 as on Dec. 31, 2016, up from 3.36 on Dec. 31, 2015.
Debt comes down significantly
Omega Protein Corporation has recorded a decline in total debt over the last one year. It stood at $1.10 million as on Dec. 31, 2016, down 95.45 percent or $23 million from $24.10 million on Dec. 31, 2015. Total debt was 0.25 percent of total assets as on Dec. 31, 2016, compared with 5.92 percent on Dec. 31, 2015. Interest coverage ratio improved to 296.04 for the quarter from 21.23 for the same period last year.
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