Cooke Omega EBITDA and revenue spike in 2Q19

Cooke Omega reported year-over-year EBITDA and revenue spikes for 2Q19, according to two sources familiar with the matter.

The privately owned fish products and aquaculture company booked USD 84.4m in revenue for the quarter, up 13% from USD 74.9m for the corresponding period last year. Adjusted EBITDA rose 26% to USD 16.4m, compared to USD 13m in 2Q18, attributed to more volumes and offloading excess inventory from China, the sources said.

The results put leverage at 5.4x through USD 359m of total debt and USD 66.8m of LTM EBITDA. As of 30 June, liquidity stands at USD 73m through USD 71m of revolver availability and USD 2m of cash.

Earlier this year, the company managed to offload around 8,000 tons of extra inventory at a discount to non-China clients, as reported. This quarter, the company sold down an additional piece of the inventory, the sources said.

Management previously said the company is considering a strategic sale of its human nutrition segment, which it views as non-core. On the 2Q call executives added that the company has received interest from a couple potential buyers, but so far hasn’t made a decision on whether to sell, one of the sources said.

Cooke’s USD 330m 8.5% senior unsecured notes due 2022 strengthened in trading after the earnings report, changing hands on 8 August at 98.25 to yield 9.112%, from trades in the 97.5-97.75 range prior to earnings, according to MarketAxess.

Cooke did not respond to a request for comment.

2019 Debtwire

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