 Investor Presentation
CJS Securities 11th Annual New Ideas
Summer Conference
August 2011
NEWS
EXHIBIT 99.1 |
 Forward Looking Statements
2
The information presented herein may contain projections, predictions, estimates
and other forward- looking statements within the meaning of Section 27A
of the Securities Act of 1933 and Section 21E of the
Securities
Exchange
Act
of
1934.
Forward-looking
statements
will
use
words
like
“may,”
“may
not,”
“believes,”
“do not believe,”
“expects,”
“do not expect,”
“anticipate,”
“does not anticipate,”
and other
similar expressions.
Although the Company believes that its expectations are based on reasonable
assumptions, we can give no assurance that these expectations will be realized.
Important factors that could cause actual results to differ materially from
those included in these forward looking statements include: (1) our ability
to meet our raw material requirements through our annual menhaden harvest,
which is subject to fluctuations due to natural conditions over which we have no
control, such as varying
fish
population,
fish
oil
yields,
adverse
weather
conditions,
oil
spill
impacts
and
disease;
(2)
the
impact of laws and regulations that may be enacted that may restrict our operations
or the sale of products; (3) the impact of worldwide supply and demand
relationships on prices for our products; (4)
our expectations regarding demand and pricing for our products proving to be
incorrect; (5) fluctuations in the Company’s quarterly operating
results due to the seasonality of our business and our deferral of inventory
sales based on worldwide prices for competing products, (6) the impact of the
uncertain economic conditions, both in the United States and globally; (7)
the effect of the Deepwater
Horizon
oil
spill
on
our
business,
operations
and
fish
catch,
both
short-term
and
long-term;
(8)
the
business, operations, potential or prospects for our new Cyvex subsidiary, the
dietary supplement market
or
the
human
health
and
wellness
segment
generally;
and
(9)
the
amount,
if
any,
of
future
reimbursements
from
the
Deepwater
Horizon
defendants
or
the
GCCF
for
damages
caused
by
the
Deepwater Horizon oil spill. |
 Our
Business Fuels Healthy Living 3
Omega Protein
Corporation
Human Nutrition
Ingredients
Animal Nutrition
Ingredients
Plant Nutrition
Ingredients
Nutraceuticals
Functional Foods
Aquaculture Feed
Pet Food
Livestock Feed
Organic
Fruits and Vegetables |
 World
Supply/Demand Imbalance 4
Global Fish Meal Production
Global Fish Oil Production
Average Fish Meal Prices (FOB from Peru )
Average Fish Oil Prices (FOB from Netherlands)
Global Demand for Seafood
3,000
4,000
5,000
6,000
7,000
8,000
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
$1,800
$2,000
0
2,000
4,000
6,000
8,000
10,000
12,000
1994
1996
1998
2000
2002
2004
2006
Global Aquaculture Consumption
Total
Wild Catch
600
700
800
900
1,000
1,100
1,200
1,300
1,400
1,500
1,600
1994
1996
1998
2000
2002
2004
2006
2008
1994
1996
1998
2000
2002
2004
2006
2008
Fish Meal
---
Fish Oil
--- |
 5
Focus on research and development
enhance production
improve health benefits of end
products
develop novel new products
Leverage customer relationships
Allocate funds based on return on capital
Expand participation in the value chain
Additional product lines
Increase presence in human nutrition
Access opportunities in new markets
Add new customers in existing markets
Organic Growth
Organic Growth
Acquisitions
Acquisitions
How We Plan to Grow
Leverage existing protein and fatty acid platform to
expand line of nutritional ingredients
Leverage existing protein and fatty acid platform to
expand line of nutritional ingredients |
 Human
Nutrition: Greatest Growth Potential Nutraceutical Ingredients
•
Diverse product set of
nutritional ingredients
•
Supply the dietary
supplement
and functional
food
markets
•
Supports good health and
well-being
•
Sales today represent a
fraction of the market
U.S. Omega-3
Dietary
Supplement
Sales
End Use Applications
of EPA and DHA Oils
(Metric Tons)
Source:
“Global
Nutrition
Industry.”
Nutrition
Business
Journal.
March,
2010.
1995
1997
1999
2001
2003
2005
2007
2009
$40
$1,000
$-
$200
$400
$600
$800
$1,000
Supplements
62%
Functional
Foods
24%
Infant/Clinical
6%
Animal Feed
6%
Pharma
2%
6 |
 Strong First Half 2011 Performance
7
•
Net income up 874% (292% excluding settlements)
–
$29 million, $1.45 per diluted share
–
$12 million, $0.58 per diluted share excluding $27 million pretax settlement for
claims related to the Gulf oil spill and an insurance settlement
–
Compares to $3.0 million, $0.16 in first half 2010
•
Total revenue increased 47%
–
$101 million
compared to revenues of
$69 million
–
Composition: 69% fish meal, 23% fish oil, 6% specialty nutraceutical ingredients,
2% fish solubles
–
Increase in fish meal sales volumes and fish oil sales prices
–
Acquisition of Cyvex added $7 million
•
Operating income and margins up
–
$46 million on an 46.1% operating margin
–
$19 million on an 19.3% operating margin excluding $27 million settlements
–
Compares to $6 million with a 8.8% operating margin for first half 2010
•
Strong Balance Sheet: $47 million cash; $33 million total debt |
 Why
OME? Compelling fundamentals
Growing populations and standards of living
Increased demand for high quality protein
Supply/demand imbalance for fish meal and fish oil
Opportunities for organic growth
Expand products for human nutrition
R&D-driven new product development / enhancements
Production improvements
Focus on acquisitions
Potential to add new product lines
Target new products or markets
Strong balance sheet
8 |