Omega Protein Corporation (OME) has reported a 37.63 percent jump in profit for the quarter ended Sep. 30, 2016. The company has earned $14.55 million, or $0.64 a share in the quarter, compared with $10.57 million, or $0.47 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $15.16 million, or $0.67 a share compared with $14.75 million or $0.66 a share, a year ago.

Revenue during the quarter dropped 3.09 percent to $108.75 million from $112.22 million in the previous year period. Gross margin for the quarter contracted 97 basis points over the previous year period to 30.39 percent. Total expenses were 79.77 percent of quarterly revenues, down from 84.63 percent for the same period last year. This has led to an improvement of 487 basis points in operating margin to 20.23 percent.

Operating income for the quarter was $22 million, compared with $17.24 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $29.03 million compared with $28.71 million in the prior year period. At the same time, adjusted EBITDA margin improved 111 basis points in the quarter to 26.69 percent from 25.58 percent in the last year period.

"We are generally pleased with the strength of our third quarter operational and financial performance," commented Bret Scholtes, Omega Protein's president and chief executive officer. "Our animal nutrition segment continued to benefit from favorable volume and pricing which produced the highest quarterly Adjusted EBITDA since we started calculating it. In addition, we recently concluded a successful fishing season in the Gulf of Mexico with solid harvest and production results which we believe will help us meet the high demand for our products in the quarters ahead. Although our human nutrition segment continues to struggle, we are focused on some near term action plans to identify and grow key products and address additional SG&A efficiencies. Animal nutrition is well positioned for the future and will benefit from the recent regulatory decision to increase the Atlantic menhaden quota by 6.45%. Finally, we are focused on opportunities to further enhance our operating and capital efficiency."

The company has spent $26.28 million cash to meet investing activities during the nine month period as against cash outgo of $29.03 million in the last year period. It has incurred net capital expenditure of $26.28 million on net basis during the nine month period, down 9.49 percent or $2.75 million from year ago period.

The company has spent $17.27 million cash to carry out financing activities during the nine month period as against cash outgo of $4.15 million in the last year period.

Cash and cash equivalents stood at $34.24 million as on Sep. 30, 2016, up 4,272.29 percent or $33.45 million from $0.78 million on Sep. 30, 2015.

Working capital increases sharply

Omega Protein Corporation has recorded an increase in the working capital over the last year. It stood at $138.17 million as at Sep. 30, 2016, up 29.59 percent or $31.55 million from $106.63 million on Sep. 30, 2015. Current ratio was at 3.18 as on Sep. 30, 2016, up from 2.60 on Sep. 30, 2015.

Cash conversion cycle (CCC) has decreased to 97 days for the quarter from 156 days for the last year period. Days sales outstanding went up to 44 days for the quarter compared with 41 days for the same period last year.

Days inventory outstanding has decreased to 68 days for the quarter compared with 133 days for the previous year period. At the same time, days payable outstanding went down to 15 days for the quarter from 18 for the same period last year.