Omega Protein Corporation (OME) has reported a 27.45 percent fall in profit for the quarter ended Mar. 31, 2017. The company has earned $6.08 million, or $0.27 a share in the quarter, compared with $8.38 million, or $0.37 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $5.97 million, or $0.26 a share compared with $9.12 million or $0.40 a share, a year ago.

Revenue during the quarter dropped 13.29 percent to $73.57 million from $84.84 million in the previous year period. Gross margin for the quarter contracted 181 basis points over the previous year period to 27.44 percent. Total expenses were 86.68 percent of quarterly revenues, up from 82.74 percent for the same period last year. That has resulted in a contraction of 394 basis points in operating margin to 13.32 percent.

Operating income for the quarter was $9.80 million, compared with $14.64 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $15.18 million compared with $20.44 million in the prior year period. At the same time, adjusted EBITDA margin contracted 347 basis points in the quarter to 20.63 percent from 24.10 percent in the last year period.

"We are pleased with our start to 2017 across our animal and human nutrition business segments," commented Bret Scholtes, Omega Protein's president and chief executive officer. "While recent global quota announcements are likely to put some pressure on fish meal and fish oil pricing in the second half of 2017, demand from the aquaculture and pet industries presently remains strong. As a result, we believe that our products, supply chain and customer relationships will continue to position us favorably in the global nutrition marketplace. Additionally, the solid consolidated financial results and operating cash flows we have experienced in recent years have enabled us to make strategic investments to increase our operating efficiencies, support our future growth and further enhance value for shareholders."

The company has spent $13.18 million cash to meet investing activities during the quarter as against cash outgo of $9.67 million in the last year period. It has incurred capital expenditure of $13.18 million on net basis during the quarter, up 36.30 percent or $3.51 million from year ago period.

The company has spent $1.21 million cash to carry out financing activities during the quarter as against cash outgo of $0.42 million in the last year period.

Cash and cash equivalents stood at $23.59 million as on Mar. 31, 2017, up 1,606.66 percent or $22.20 million from $1.38 million on Mar. 31, 2016.

Working capital increases

Omega Protein Corporation has recorded an increase in the working capital over the last year. It stood at $134.80 million as at Mar. 31, 2017, up 9.03 percent or $11.16 million from $123.64 million on Mar. 31, 2016. Current ratio was at 4.22 as on Mar. 31, 2017, up from 3.97 on Mar. 31, 2016.

Cash conversion cycle (CCC) has decreased to 116 days for the quarter from 202 days for the last year period. Days sales outstanding went up to 49 days for the quarter compared with 48 days for the same period last year.

Days inventory outstanding has decreased to 92 days for the quarter compared with 174 days for the previous year period. At the same time, days payable outstanding went up to 26 days for the quarter from 20 for the same period last year.