UMAM Umami Sustainable Seafood Inc (CE)

Umami Reports Second Quarter Results

Ian Gilson, CFA

On February 10, 2012 Umami (UMAM) reported its results for the second fiscal quarter of 2012. The numbers were well ahead of our estimates with revenue of $55.6 million and net income for Umami stockholders of $17.4 million or $0.28 per diluted share. Gross margins were more than double year ago levels. Some of the numbers reported for the first quarter have been adjusted and we have incorporated these in our data.

Baja Farms was acquired on Nov. 10, 2010 (2Q11)

Sales to Japan continue to be the major part of revenue and demand for quality tuna exceeds the available supply. Average price per kilogram was close in the second quarter as it was in the first, and well above year ago levels. Second quarter selling price was $25.16/kg. Much of the      price increase Y/Y was due to the increased price of fish from Baja as buyers became familiar with the new source of tuna.

During the second quarter debt outstanding declined from $40.3 million to $28.5 million and cash increased from $5.8 million to $13.3 million. Much of the cash is in Croatia and would probably be taxed if repatriated.
 

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