10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_____________________

FORM 10-Q

[X]	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
	SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2014

OR

[  ]	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
	SECURITIES EXCHANGE ACT OF 1934

For the Transition Period From __________ to __________.

Commission file number: 001-14003

OMEGA PROTEIN CORPORATION

(Exact name of Registrant as specified in its charter)

State of Nevada	76-0562134
(State or other jurisdiction of	(I.R.S. Employer
incorporation or organization)	Identification No.)
2105 City West Blvd., Suite 500
Houston, Texas	77042-2838
(Address of principal executive offices)	(Zip Code)

Registrant's telephone number, including area code: (713) 623-0060

_________________

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes X No__.

Indicate by check mark whether the Registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes X No ___.

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definition of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

        Large accelerated filer ☐ Accelerated filer ☒  Non-accelerated filer ☐     Small reporting company ☐

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act)

Yes      No X .

Number of shares outstanding of the Registrant's Common Stock, par value $0.01 per share, on July 31, 2014: 21,090,048.

OMEGA PROTEIN CORPORATION

TABLE OF CONTENTS

PART I. FINANCIAL INFORMATION
Item 1.	Financial Statements and Notes
	Unaudited Condensed Consolidated Balance Sheet as of June 30, 2014 and December 31, 2013	3
	Unaudited Condensed Consolidated Statement of Comprehensive Income for the three months and six months ended June 30, 2014 and 2013	4
	Unaudited Condensed Consolidated Statement of Cash Flows for the six months ended June 30, 2014 and 2013	5
	Notes to Unaudited Condensed Consolidated Financial Statements	6
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	22
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	37
Item 4.	Controls and Procedures	38
PART II. OTHER INFORMATION
	Item 1. Legal Proceedings	38
	Item 1A. Risk Factors	38
	Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	38
	Item 3. Defaults Upon Senior Securities	39
	Item 4. Mine Safety Disclosures	39
	Item 5. Other Information	39
	Item 6. Exhibits	39
Signatures		40

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OMEGA PROTEIN CORPORATION

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET

(Dollars in thousands)

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements and Notes

	June 30, 2014			December 31, 2013
ASSETS
Current assets:
Cash and cash equivalents	$	40,214		$	34,059
Receivables, net		31,304			21,140
Inventories		79,860			94,339
Deferred tax asset, net		904			1,062
Prepaid expenses and other current assets		5,582			3,915
Total current assets		157,864			154,515
Other assets, net		2,815			5,234
Property, plant and equipment, net		154,431			144,113
Goodwill		19,600			19,600
Other intangible assets, net		7,596			7,932
Total assets	$	342,306		$	331,394
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Current maturities of long-term debt	$	2,564		$	3,112
Accounts payable		4,074			5,380
Accrued liabilities		25,910			29,145
Total current liabilities		32,548			37,637
Long-term debt, net of current maturities		19,827			21,130
Deferred tax liability, net		20,375			19,351
Pension liabilities, net		3,246			4,117
Other long-term liabilities		2,142			1,929
Total liabilities		78,138			84,164
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $0.01 par value; 10,000,000 authorized shares; none issued		—			—
Common Stock, $0.01 par value; 80,000,000 authorized shares; 21,099,066 and 20,804,189 shares issued and 21,094,443 and 20,804,189 shares outstanding at June 30, 2014 and December 31, 2013, respectively		205			203
Capital in excess of par value		138,557			136,428
Retained earnings		131,411			116,807
Treasury stock, at cost – 4,623 shares		(57	)		—
Accumulated other comprehensive loss		(5,948	)		(6,208	)
Total stockholders’ equity		264,168			247,230
Total liabilities and stockholders’ equity	$	342,306		$	331,394

The accompanying notes are an integral part of the unaudited condensed consolidated financial statements.

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OMEGA PROTEIN CORPORATION

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

(In thousands, except per share amounts)

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2014			2013			2014			2013
Revenues	$	71,913		$	41,777		$	135,413		$	90,700
Cost of sales		51,489			28,494			94,496			65,320
Gross profit		20,424			13,283			40,917			25,380
Selling, general, and administrative expense		6,526			6,030			12,619			12,473
Research and development expense		544			565			1,028			1,120
Loss related to plant closure		2,616			—			3,939			—
Loss (gain) on disposal of assets		(14	)		(2	)		233			374
Operating income		10,752			6,690			23,098			11,413
Interest income		5			2			13			10
Interest expense		(135	)		(481	)		(382	)		(873	)
Other expense, net		(118	)		(98	)		(174	)		(181	)
Income before income taxes		10,504			6,113			22,555			10,369
Provision for income taxes		3,871			2,123			7,951			3,534
Net income		6,633			3,990			14,604			6,835
Other comprehensive income (loss):
Energy swap adjustment, net of tax benefit of $10, $195, $20 and $56, respectively		(19	)		(363	)		(37	)		(106	)
Pension benefits adjustment, net of tax expense of $80, $135, $160 and $270, respectively		148			251			297			502
Comprehensive income	$	6,762		$	3,878		$	14,864		$	7,231
Basic earnings per share (See Note 13)	$	0.32		$	0.20		$	0.70		$	0.34
Weighted average common shares outstanding		20,428			19,779			20,392			19,623
Diluted earnings per share (See Note 13)	$	0.31		$	0.19		$	0.68		$	0.33
Weighted average common shares and potential common share equivalents outstanding		21,105			20,581			21,062			20,399

The accompanying notes are an integral part of the unaudited condensed consolidated financial statements.

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OMEGA PROTEIN CORPORATION

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

(Dollars in thousands)

	Six Months Ended June 30,
	2014			2013
Cash flows from operating activities:
Net income	$	14,604		$	6,835
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		10,335			10,253
Loss on plant closure		1,956			—
Loss (gain) on disposal of assets		233			374
Provisions for losses on receivables		24			24
Share based compensation		944			891
Deferred income taxes		1,110			1,409
Changes in assets and liabilities:
Receivables		(10,188	)		(2,671	)
Inventories		14,271			(15,763	)
Prepaid expenses and other current assets		(1,724	)		(1,515	)
Other assets		1,679			5,874
Accounts payable		(1,306	)		(301	)
Accrued liabilities		(1,718	)		(2,536	)
Pension liability, net		(482	)		(246	)
Other long term liabilities		(2	)		30
Net cash provided by operating activities		29,736			2,658
Cash flows from investing activities:
Proceeds from disposition of assets		193			161
Acquisition of Wisconsin Specialty Protein, net of cash acquired		—			(26,779	)
Capital expenditures		(23,268	)		(12,897	)
Net cash used in investing activities		(23,075	)		(39,515	)
Cash flows from financing activities:
Principal payments of long-term debt		(1,851	)		(1,569	)
Principal payments of capital lease obligation		—			(309	)
Purchase treasury stock at cost		(57	)		—
Proceeds from stock options exercised		946			3,048
Excess tax benefit of stock options exercised		456			1,147
Net cash provided by (used in) financing activities		(506	)		2,317
Net increase (decrease) in cash and cash equivalents		6,155			(34,540	)
Cash and cash equivalents at beginning of year		34,059			55,998
Cash and cash equivalents at end of period	$	40,214		$	21,458

The accompanying notes are an integral part of the unaudited condensed consolidated financial statements.

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OMEGA PROTEIN CORPORATION

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1. SIGNIFICANT ACCOUNTING POLICIES

 SUMMARY OF OPERATIONS AND BASIS OF PRESENTATION

Business Description

Omega Protein Corporation (the “Company”) is a nutritional company that develops, produces and delivers healthy products throughout the world to improve the nutritional integrity of functional foods, dietary supplements and animal feeds. The Company operates through two industry segments: animal nutrition and human nutrition.

The animal nutrition segment is comprised primarily of two subsidiaries: Omega Protein, Inc. (“Omega Protein”) and Omega Shipyard, Inc. (“Omega Shipyard”). Omega Protein, the Company’s principal operating subsidiary, is the successor to a business conducted since 1913. Omega Protein produces and markets a variety of products produced from menhaden (a herring-like species of fish found in commercial quantities in the U.S. coastal waters of the Atlantic Ocean and Gulf of Mexico), including regular grade and value-added specialty fish meals, crude and refined fish oils and fish solubles. Omega Protein’s fish meal products are primarily used as a protein ingredient in animal feed for swine, aquaculture and household pets. Fish oil is utilized primarily for animal and aquaculture feeds, as well as additives to human food products and dietary supplements. Omega Protein’s fish solubles are sold primarily to livestock feed manufacturers, aquaculture feed manufacturers and for use as an organic fertilizer. Omega Protein’s business is seasonal in nature and generally has higher revenues during the third quarter of each fiscal year. A portion of Omega Protein’s production is transferred to the human nutrition segment where it is further processed and sold. Omega Shipyard owns and operates a drydock facility in Moss Point, Mississippi that is used to provide shoreside maintenance for Omega Protein’s fishing fleet and, subject to outside demand and excess capacity, occasionally for third-party vessels.

The human nutrition segment, which operates under the name Nutegrity, has three primary product lines: protein products, Omega-3 fish oil ingredients and other nutraceutical ingredients. Nutegrity is comprised primarily of three subsidiaries: Cyvex Nutrition, Inc. (“Cyvex”), InCon Processing, L.L.C. (“InCon”) and Wisconsin Specialty Protein, L.L.C. (“WSP”). Cyvex, acquired by the Company in December 2010, is located in Irvine, California and participates in the nutraceutical industry as an ingredient provider. InCon, acquired by the Company in September 2011, is located in Batavia, Illinois and is a specialty processor that utilizes molecular distillation technology to concentrate Omega-3 fish oils and, subject to outside demand and excess capacity, a variety of other compound products for third-party tolling customers.WSP, acquired by the Company in February 2013, is a manufacturer and marketer of specialty dairy and other protein products headquartered in Madison, Wisconsin and operates a production facility in Reedsburg, Wisconsin. See Note 2 – Acquisition of Wisconsin Specialty Protein, L.L.C. for additional information related to the Company’s acquisition of WSP.

Basis of Presentation

These interim financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information, the instructions to Quarterly Report on Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, certain information and footnote disclosures normally provided have been omitted. The interim financial statements should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2013. The year end condensed balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America.

In the opinion of management the accompanying unaudited condensed consolidated financial statements reflect all adjustments (consisting only of normal recurring adjustments) necessary for a fair statement of the Company’s consolidated financial position as of June 30, 2014, and the results of its operations for the three month and six month periods ended June 30, 2014 and 2013 and its cash flows for the six month periods ended June 30, 2014 and 2013. Quarterly operating results are not necessarily indicative of the results that may be expected for the year ending December 31, 2014.

Consolidation

The consolidated financial statements include the accounts of Omega Protein Corporation and its wholly owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation.

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OMEGA PROTEIN CORPORATION

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – (continued)

Financial Statement Preparation

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the Company’s financial statements and the accompanying notes and the reported amounts of revenues and expenses during the reporting period. Actual amounts, when available, could differ from those estimates and those differences could have a material effect on the financial statements.

Certain amounts applicable to the prior periods have been reclassified to conform to the classifications currently followed. For the six months ended June 30, 2013, the Company reclassified $0.3 million of cash flows from investing activities to cash flows from operating activities related to accrued capital expenditures.  This revision was not considered to be material, individually or in the aggregate, to previously issued financial statements. The revisions had no effect on the results of operations (net or comprehensive income) or financial condition (stockholders’ equity).  

Revenue Recognition

The Company derives revenue principally from the sales of a variety of protein and oil products derived from menhaden. In addition and as a result of its acquisitions of Cyvex, InCon and WSP, the Company’s revenues also include sales of dietary supplement ingredients to the nutraceutical industry and whey protein products to the food and nutritional supplement industries. The Company recognizes revenue for the sale of its products when price is established, collectability is reasonably assured and risk and rewards of ownership of its products and title are transferred to the customer.

Shipping and Handling

Amounts billed to customers associated with shipping and handling are included in revenues and the related costs are included in cost of sales.

Inventories

During the off-seasons, in connection with the upcoming fishing seasons, Omega Protein incurs costs (e.g., plant and vessel related labor, utilities, rent, repairs, and depreciation) that are directly related to Omega Protein’s infrastructure. These costs accumulate in inventory and are applied as elements of the cost of production of Omega Protein’s products throughout the fishing season ratably based on Omega Protein’s monthly units of production and the expected total units of production for the season.

Any costs incurred during abnormal downtime related to activity at Omega Protein’s plants are charged to expense as incurred.

Energy Swap Agreements

The Company does not enter into financial instruments for trading or speculative purposes. Omega Protein enters into energy swap agreements to manage portions of its cash flow exposure related to the volatility of natural gas, diesel and fuel oil energy prices for its fish meal and fish oil production operations. The swaps effectively fix pricing for the quantities listed below during the consumption periods.

					(in thousands)
Energy Swap	Consumption Period	Quantity	Price Per Unit		Energy Swap Asset/(Liability) as of June 30, 2014			Deferred Tax Asset/(Liability) as of June 30, 2014
Diesel - NYMEX Heating Oil Swap	July – Nov., 2014	1,440,569 Gallons	$	2.92	$	94		$	(33	)
Natural Gas - NYMEX Natural Gas Swap	July – Oct., 2014	223,750 MMBTUs	$	3.79		143			(50	)
Propane – Natural Gas Liquids Swap	July – Nov., 2014	583,000 Gallons	$	1.09		(18	)		6
Natural Gas - NYMEX Natural Gas Swap	Apr. – Oct., 2015	114,000 MMBTUs	$	4.09		—			—
					$	219		$	(77	)

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OMEGA PROTEIN CORPORATION

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – (continued)

					(in thousands)
Energy Swap	Consumption  Period	Quantity	Price Per Unit		Energy Swap  Asset/(Liability) as of December 31, 2013		Deferred Tax  Asset/(Liability) as of December 31, 2013
Diesel - NYMEX Heating Oil Swap	Oct. – Nov., 2013	998,700 Gallons	$	2.88	$	132	$	(46	)
Natural Gas - NYMEX Natural Gas Swap	Apr. – Oct., 2014	307,374 MMBTUs	$	3.67		143		(50	)
					$	275	$	(96	)

As of June 30, 2014 and December 31, 2013, Omega Protein has recorded a current asset in prepaid expenses of $0.2 and $0.3, million, respectively, to recognize the fair value of energy swap derivatives, and has also recorded a deferred tax liability of $0.1 million associated therewith. The effective portion of the change in fair value from inception to June 30, 2014 is recorded in “accumulated other comprehensive loss” in the Company’s consolidated financial statements. The following table illustrates the changes recorded, net of tax, in accumulated other comprehensive loss resulting from the energy swap agreements (in thousands).

	Three Months Ended June 30,						Six Months Ended June 30,
	2014			2013			2014			2013
Beginning balance	$	161		$	285		$	179		$	28
Net (gain) loss, net of tax, reclassified to unallocated inventory cost pool		(90	)		(16	)		(90	)		(16	)
Net change associated with current period swap transactions, net of tax		71			(347	)		53			(90	)
Ending balance	$	142		$	(78	)	$	142		$	(78	)

The $0.1 million reported in accumulated other comprehensive loss as of June 30, 2014 will be reclassified to inventory in the period when the energy consumption takes place. The amount to be reclassified, net of taxes, during the next 12 months is expected to be approximately $0.1 million.

The aggregate fair value of derivative instruments in gross asset positions as of June 30, 2014 and December 31, 2013 was $0.2 and $0.3 million. These amounts represent the maximum exposure to loss at the reporting date as a result of all of the counterparties failing to perform as contracted. This exposure could be reduced by up to $29,000 and $0, respectively, of liabilities included in master netting arrangements with those same counterparties.

As of June 30, 2014 (in thousands)	Gross Amounts of Recognized Assets (Liabilities)		Gross Amounts of Assets (Liabilities) Offset			Net Amounts of Assets (Liabilities) Presented in the Balance Sheet
Energy swap derivatives – asset position	$	248	$	(29	)	$	219

As of December 31, 2013 (in thousands)	Gross Amounts of Recognized Assets (Liabilities)		Gross Amounts of Assets (Liabilities) Offset		Net Amounts of Assets (Liabilities) Presented in the Balance Sheet
Energy swap derivatives – asset position	$	275	$	-	$	275

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OMEGA PROTEIN CORPORATION

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – (continued)

If, at any time, the swaps are determined to be ineffective, in whole or in part, due to changes in the Company’s energy usage or underlying hedge agreements or assumptions, the fair value of the portion of the energy swaps determined to be ineffective will be recognized as a gain or loss in cost of sales for the applicable period. For the six months ended June 30, 2013, the Company included an expense of $0.1 million in cost of sales resulting from transactions associated with the ineffectiveness of diesel energy swaps. See Note 16 – Fair Value Disclosures for additional information.

Plant Closure

Property, plant and equipment impairments related to the Cameron, Louisiana plant are made in accordance with the impairment of long-lived assets policy. Employee severance related charges have been recognized to the extent that the amount is probable, measurable and no-future service is expected or for those still employed, recognized pro-rata over the remaining service period. Ongoing clean-up and dismantlement costs will be recognized as incurred unless obligated and measureable by a contractual commitment. See Note 3 – Plant Closure for additional information related to the charges incurred.   

Acquisitions, Goodwill and Other Intangible Assets

All of the Company’s goodwill and other intangible assets are the result of acquisitions in the human nutrition segment. This segment is comprised of two reporting units, 1) InCon and Cyvex and 2) WSP. The Company has recorded goodwill and certain other identifiable intangible assets that are more fully explained in Note 2 – Acquisition of Wisconsin Specialty Protein, L.L.C. and Note 9 – Goodwill and Other Intangible Assets.

Accumulated Other Comprehensive Loss

The components of accumulated other comprehensive (loss) gain, net of tax, included in stockholders’ equity are as follows:

Changes in Accumulated Other Comprehensive Loss by Component 

For the Six Months Ended June 30, 2014 (in thousands)

	Gains and Losses On Cash Flow Hedges				Defined Benefit Pension Items				Total
Beginning balance December 31, 2013	$	179			$	(6,387	)		$	(6,208	)
Other comprehensive loss before reclassifications		53				—				53
Amounts reclassified from accumulated other comprehensive loss		(90	)	(a)		297		(b)		207
Net current-period other comprehensive income		(37	)			297				260
Ending balance June 30, 2014	$	142			$	(6,090	)		$	(5,948	)

Changes in Accumulated Other Comprehensive Loss by Component

For the Six Months Ended June 30, 2013 (in thousands)

	Gains and Losses On Cash Flow Hedges				Defined Benefit Pension Items				Total
Beginning balance December 31, 2012	$	28			$	(9,952	)		$	(9,924	)
Other comprehensive loss before reclassifications		(90	)			—				(90	)
Amounts reclassified from accumulated other comprehensive loss		(16	)	(a)		502		(b)		486
Net current-period other comprehensive income		(106	)			502				396
Ending balance June 30, 2013	$	(78	)		$	(9,450	)		$	(9,528	)

(a)	This accumulated other comprehensive income component is reclassified to the unallocated inventory cost pool in the period when the energy consumption takes place.
(b)	This accumulated other comprehensive income component is included in the computation of net periodic pension costs as amortization of actuarial loss which are explained in more detail in Note 16 to the consolidated financial statements in Item 8 of the Company’s Form 10-K for the fiscal year ended December 31, 2013.

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OMEGA PROTEIN CORPORATION

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – (continued)

Recently Issued Accounting Standards

In May 2014, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers.  This ASU amends the existing accounting standards for revenue recognition and is based on the principle that revenue should be recognized to depict the transfer of goods or services to a customer at an amount that reflects the consideration a company expects to receive in exchange for those goods or services.  The Company is required to adopt this ASU on January 1, 2017.  The Company does not expect this ASU to have a material impact on its Company’s consolidated results of operations, financial position and related disclosures.

In April 2014, the FASB issued ASU No. 2014-08 that changes the criteria for determining which disposals can be presented as discontinued operations and modifies related disclosure requirements. Under the new guidance, a discontinued operation is defined as a disposal of a component or group of components that is disposed of or is classified as held for sale and represents a strategic shift that has or will have a major effect on an entity's operations and financial results. The new standard is effective in annual periods beginning on or after December 15, 2014 with early adoption permitted. The guidance applies prospectively to new disposals and new classifications of disposal groups as held for sale after the effective date. The Company’s adoption of FASB ASU No. 2014-08 is not expected to impact on the Company’s consolidated results of operations, financial position and related disclosures.

In July 2013, the FASB issued ASU No. 2013-11 which amended the Income Taxes Topic of the Accounting Standards Codification to eliminate a diversity in practice for the presentation of unrecognized tax benefits when net operating loss carryforwards, similar tax losses or tax credit carryforwards exist. The amendment requires that the unrecognized tax benefit be presented as a reduction of the deferred tax assets associated with the carryforwards except in certain circumstances when it would be reflected as a liability. This guidance is effective for annual periods and interim periods within those annual periods beginning after December 15, 2013. The Company’s adoption of FASB ASU No. 2013-11 effective January 1, 2014 did not have an impact on the Company’s consolidated results of operations, financial position and related disclosures.

Stock-Based Compensation

Stock Options 

The Company has a stock-based compensation plan, which is described in more detail in Note 16 to the consolidated financial statements in Item 8 of the Company’s Form 10-K for the fiscal year ended December 31, 2013. The Company has issued non-qualified stock options under its stock incentive plans. The options generally vested in equal installments over three years and expire in ten years.

Net income for the three months ended June 30, 2013 includes $0.2 million ($0.1 million after-tax), respectively, of stock-based compensation costs related to stock options. Net income for the six months ended June 30, 2013 includes $0.3 million ($0.2 million after-tax), respectively, of stock-based compensation costs related to stock options. The stock-based compensation costs related to stock options are recorded primarily in selling, general and administrative expenses in the unaudited condensed consolidated statement of comprehensive income. As of June 30, 2014 there was $0 of unrecognized compensation costs related to non-vested stock options that is expected to be recognized during the remainder of fiscal year 2014.

Restricted Stock 

The Company has issued shares of restricted stock under the 2006 Incentive Plan. Shares of restricted stock generally vest on the third anniversary of the grant date or in equal installments over three years except for shares of restricted stock granted to non-employee directors which vest six months after the grant date. Non-vested shares are generally forfeited upon the termination of employment or service as a director. Holders of shares of restricted stock are entitled to all rights of a stockholder of the Company, including the right to vote the shares and receive any dividends or other distributions. The non-vested shares are considered participating securities and the Company has calculated earnings per share using the two-class method. See Note 13 – Reconciliation of Basic and Diluted Per Share Data.

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OMEGA PROTEIN CORPORATION

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – (continued)

During the six month periods ended June 30, 2014 and 2013, the Company issued 117,885 and 25,000 shares of restricted stock, respectively, under the 2006 Incentive Plan to employees and non-employee directors. The Company’s compensation expense related to restricted stock, which is primarily reflected in selling, general and administrative expenses in the unaudited condensed consolidated statement of comprehensive income, was approximately $0.4 million and $0.3 million ($0.3 million and $0.2 million after tax) for the three months ended June 30, 2014 and 2013, respectively. The Company’s compensation expense related to restricted stock was approximately $0.7 million and $0.5 million ($0.5 million and $0.3 million after tax) for the six months ended June 30, 2014 and 2013, respectively. As of June 30, 2014, there was approximately $2.0 million ($1.3 million after tax) of unrecognized compensation expense related to non-vested restricted stock that is expected to be recognized over a weighted-average period of 1.0 years, of which $0.9 million ($0.6 million after-tax) of compensation expense is expected to be recognized during the remainder of fiscal year 2014.

Performance Units 

On February 6, 2014, the Company adopted a cash incentive performance unit plan. The value of the units will be determined by reference to the performance of the Company’s common stock during the relevant performance period compared to the performance of the Russell 2000 Index member companies (the “Peer Group”) during that same period. One third of the Performance Units granted will be earned at the end of each calendar year of the performance period and will be valued for the calendar year based on the Total Shareholder Return (“TSR”) of the Company compared to the TSR of the Peer Group. The performance units contain a service provision of approximately 3 years and are liability-classified awards included in other long-term liabilities which are adjusted to fair value on a quarterly basis.

The Company’s compensation expense related to performance units was approximately $0.1 million and $0.2 million for the three and six months ended June 30, 2014, respectively, which is primarily reflected in selling, general and administrative expenses in the unaudited condensed consolidated statement of comprehensive income. As of June 30, 2014, there was approximately $1.4 million of unrecognized compensation cost related to performance units that is expected to be recognized over the next 2.5 years, of which $0.3 million of compensation expense is expected to be recognized during the remainder of fiscal year 2014.

NOTE 2. ACQUISITION OF WISCONSIN SPECIALTY PROTEIN, L.L.C.

A. Description of the Transaction

In February 2013, the Company acquired 100% of the outstanding equity interest of WSP, a Wisconsin limited liability company, in a cash transaction pursuant to the terms of an agreement and plan of merger. WSP is now a wholly owned subsidiary of the Company. WSP produces a variety of value-added whey protein ingredients for the food and nutritional supplement industries, including organic and other specialty protein products, using processes applicable to a variety of nutritional dairy ingredients. WSP is included as part of the Company’s human nutrition segment.

B. Recording of Assets Acquired and Liabilities Assumed

The Company paid an aggregate cash purchase price for the equity of WSP of $26.5 million plus $0.6 million representing WSP’s excess working capital on the closing date and reimbursable capital expenditures, utilizing cash on hand.

The Company incurred approximately $0.8 million in pretax transaction costs directly related to the acquisition that were expensed and included in selling, general and administrative expenses in the consolidated statement of comprehensive income for the year ended December 31, 2013. The acquisition costs consisted primarily of legal, advisory, valuation, and other consulting fees. The transaction has been accounted for using the acquisition method of accounting which requires, among other things, that all assets acquired and liabilities assumed from acquisitions be recognized at their fair values as of the acquisition date. Any excess of the purchase price over the fair values of the net assets acquired are recorded as goodwill.

		(in thousands)
Cash	$	403
Other current assets, net including receivables, prepaid and inventory		2,515
Property, plant, and equipment, net		14,095
Identifiable intangible assets (a)		4,448
Liabilities assumed		(5,996	)
Total identifiable net assets		15,465
Goodwill		11,614
Total consideration	$	27,079

(a) See Note 9 – Goodwill and Other Intangible Assets for weighted average lives.

11

OMEGA PROTEIN CORPORATION

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – (continued)

Goodwill is calculated as the excess of the consideration transferred over the net assets recognized and represents the future economic benefits arising from other assets acquired that could not be individually identified and separately recognized. Specifically, the goodwill recorded as part of the acquisition of WSP includes the following:

● the expected synergies and other benefits that the Company believes will result from combining the operations of WSP with the operations of Nutegrity, the Company’s human nutrition segment,

● any intangible assets that do not qualify for separate recognition, and

● the value of the going-concern element of WSP’s existing business (the higher rate of return on the assembled collection of net assets versus if the Company had acquired all of the net assets separately).

The Company does not amortize goodwill or indefinite-lived intangible assets but performs tests for impairment annually, or when indications of potential impairment exist, utilizing a fair value approach at the reporting unit level. See Note 9 - Goodwill and Other Intangible Assets, for more information about goodwill and other intangible assets.

C. Unaudited Pro Forma Financial Information

     The unaudited financial information in the table below summarizes the combined results of operations of the Company and WSP on a pro forma basis, as though the companies had been combined as of January 1, 2013. The pro forma financial information is presented for informational purposes only and is not indicative of the results of operations that would have been achieved if the acquisition had actually taken place on January 1, 2013 and is not intended to be a projection of future results or trends.

	Revenue		Net income (loss)
	(in thousands)
WSP from February 27, 2013 – June 30, 2013	$	3,254	$	(37	)
2013 supplemental pro forma from January 1, 2013 – June 30, 2013	$	92,768	$	6,838

NOTE 3. PLANT CLOSURE

In December 2013, the Company effectively closed its menhaden fish processing plant located in Cameron, Louisiana and re-deployed certain vessels from that facility to the Company’s other Gulf Coast facilities located in Abbeville, Louisiana and Moss Point, Mississippi. In conjunction with the closure, the following charges were incurred in the Company’s consolidated statements of comprehensive income for the three and six months ended June 30, 2014 and cumulative to date:

		Three Months Ended June 30, 2014		Six Months Ended June 30, 2014		Cumulative to Date
		(in thousands)
Impairment of property, plant and equipment	$	1,647	$	1,739	$	6,535
Write-off material and supplies inventory		—		17		114
Employee severance costs		26		240		585
Estimated decommissioning costs		—		—		250
Other ongoing closure costs not attributable to future production		943		1,943		3,052
Total loss related to plant closure	$	2,616	$	3,939	$	10,536

In addition to the above recognized losses, the Company expects that it may have additional losses related to additional impairment of property, plant and equipment, ongoing employee severance expenses and ongoing costs not attributable to future production such as clean-up and disassembly.

12

OMEGA PROTEIN CORPORATION

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – (continued)

NOTE 4. RECEIVABLES, NET

Receivables as of June 30, 2014 and December 31, 2013 are summarized as follows:

	June 30, 2014			December 31, 2013
	(in thousands)
Trade	$	29,106		$	18,689
Insurance		1,718			1,806
Income tax		803			714
Other		40			310
Total accounts receivable		31,667			21,519
Less allowance for doubtful accounts		(363	)		(379	)
Receivables, net	$	31,304		$	21,140

NOTE 5. INVENTORY

The major classes of inventory as of June 30, 2014, December 31, 2013 and June 30, 2013 are summarized as follows:

		June 30,2014		December 31, 2013		June 30, 2013
		(in thousands)
Fish meal	$	17,577	$	30,119	$	16,176
Fish oil		14,271		41,081		23,312
Fish solubles		1,252		2,599		1,055
Nutraceutical products		4,862		3,650		3,828
Dairy protein products		2,332		1,355		1,520
Unallocated inventory cost pool (including off-season costs)		30,293		6,655		26,658
Other materials and supplies		9,273		8,880		10,795
Total inventory	$	79,860	$	94,339	$	83,344

Inventory at June 30, 2014, December 31, 2013 and June 30, 2013 is stated at the lower of cost or market. The elements of June 30, 2014 unallocated inventory cost pool include Omega Protein’s plant and vessel related labor, utilities, rent, repairs and depreciation, which are allocated to inventories produced through the 2014 fishing season.

NOTE 6. PREPAID EXPENSES AND OTHER CURRENT ASSETS

Prepaid expenses and other current assets as of June 30, 2014 and December 31, 2013 are summarized below:

	June 30, 2014		December 31, 2013
	(in thousands)
Prepaid insurance	$	4,561	$	2,422
Selling expenses		193		869
Fair market value of energy swaps, current portion		218		275
Whey process filters		139		38
Leases		101		53
Other prepaids and expenses		370		258
Total prepaid expenses and other current assets	$	5,582	$	3,915

Amounts included in prepaid expenses and other current assets consist primarily of prepaid operating expenses including insurance, rents, and selling expenses. Energy swap assets are valued at each reporting date at their fair value (see Note 16 – Fair Value Disclosures for additional information). Prepaid selling expenses are expensed in those periods in which the related revenue is recognized.

13

OMEGA PROTEIN CORPORATION

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – (continued)

NOTE 7. OTHER ASSETS

Other assets as of June 30, 2014 and December 31, 2013 are summarized as follows:

		June 30, 2014		December 31, 2013
		(in thousands)
Fish nets, net of accumulated amortization of $2,034 and $2,610	$	1,415	$	1,517
Insurance receivable		785		3,048
Title XI debt issuance costs		256		272
Other debt issuance costs		253		299
Deposits and other		106		98
Total other assets, net	$	2,815	$	5,234

Amortization expense for fishing nets amounted to approximately $0.3 million for the three months ended June 30, 2014 and 2013 and $0.7 million for the six months ended June 30, 2014 and 2013.

As of June 30, 2014 and December 31, 2013, insurance receivables primarily relates to Jones Act claims for employees aboard its vessels. This estimated amount is recorded gross of estimated claims which may be due to claimants and is included in accrued insurance liabilities.

The Company carries insurance for certain losses relating to its fishing vessels and Jones Act liability for employees aboard its vessels (collectively, “Vessel Claims Insurance”). The typical Vessel Claims Insurance policy contains an annual aggregate deductible (“AAD”) for which Omega Protein remains responsible, while the insurance carrier is responsible for all applicable amounts which exceed the AAD. It is Omega Protein’s policy to accrue current amounts due and record amounts paid out on each claim. Once payments exceed the AAD, Omega Protein records an insurance receivable for a given policy year.

NOTE 8. PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment as of June 30, 2014 and December 31, 2013 are summarized as follows:

		June 30, 2014			December 31, 2013
		(in thousands)
Land	$	7,457		$	7,457
Plant assets		161,761			159,337
Fishing vessels		110,452			101,745
Furniture and fixtures		7,090			7,091
Construction in progress		26,409			16,846
Total property and equipment		313,169			292,476
Less accumulated depreciation and impairment		(158,738	)		(148,363	)
Property, plant and equipment, net	$	154,431		$	144,113

Depreciation expense for the three months ended June 30, 2014 and 2013 was $4.6 million and $4.7 million, respectively, and $9.3 million and $9.3 million for the six months ended June 30, 2014 and 2013, respectively.

The Company capitalizes interest as part of the acquisition cost of a qualifying asset. Interest is capitalized only during the period of time required to complete and prepare the asset for its intended use. For the three months ended June 30, 2014 and 2013, the Company capitalized interest of approximately $0.2 million and $26,000, respectively. For the six months ended June 30, 2014 and 2013, the Company capitalized interest of approximately $0.4 million and $0.1 million, respectively.

In December 2013, the Company closed its Cameron, Louisiana menhaden processing plant and re-deployed some of its harvesting and processing assets to the three remaining menhaden processing plants. As a result of the closure, the Company recognized a cumulative $6.5 million in impairment of its fixed assets that it does not plan to use in future operations. For more information see Note 3 – Plant Closure.

14

OMEGA PROTEIN CORPORATION

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – (continued)

NOTE 9. GOODWILL AND OTHER INTANGIBLE ASSETS

Goodwill is measured as the excess of the cost of an acquisition over the sum of the amounts assigned to the fair value of tangible and intangible assets acquired less liabilities assumed.  All of the Company’s goodwill and other intangible assets are the result of acquisitions in the human nutrition segment. 

Goodwill is tested annually for impairment of value, and whenever an event occurs or circumstances change that would more likely than not indicate the carrying amount of the asset is impaired. Determining whether an indicator of impairment has occurred during an interim period involves a significant amount of judgment.  During the interim periods, qualitative factors such as deterioration in general economic conditions, changes in the market for an entity’s products or services, declines in actual or planned revenue or earnings compared with actual and projected results of relevant prior periods, among others, are evaluated to determine if a triggering event which would result in a potential impairment has incurred.

As of the December 31, 2013, the results of the annual quantitative tests did not result in any impairment of goodwill because the fair values of each of the reporting units exceeded their respective carrying values. Specifically, our two reporting units, InCon/Cyvex and WSP, each had calculated fair values that were 21% in excess of their carrying values.  Additionally, the calculated fair value of InCon’s trade secrets exceeded its carrying value by 5%.  Key assumptions in the fair value calculations include discount rates and future sales volumes, prices and production costs.  It should be noted that these assumptions are highly subjective given the early stage and transitional nature of the businesses, and the use of different assumptions could produce significantly different fair values and, potentially, impairments.

Our annual quantitative tests have assumed increasing cash flows over the next several years, based on anticipated sales growth and improved profitability; through the six months ended June 30, 2014, the two reporting units have not achieved the assumed results.  If future cash flow expectations decline sufficiently, the estimated fair values could be reduced and potentially result in a material impairment in a subsequent period.

The following table summarizes the changes in the carrying amount of goodwill resulting from the Company’s acquisitions of WSP, Cyvex and InCon (in thousands):

	WSP		Cyvex and Incon		Total
January 1, 2014	$	11,614		7,986	$	19,600
Acquisitions		—		—		—
June 30, 2014	$	11,614		7,986	$	19,600

The following table summarizes the Company’s intangible assets (dollars in thousands):

	June 30, 2014			December 31, 2013			Weighted Average Life (years)
Carrying value of intangible assets subject to amortization:
Customer relationships and non-competes	$	5,930		$	5,930
Less accumulated amortization		(949	)		(613	)		10
Total intangible assets subject to amortization, net	$	4,981		$	5,317
Indefinite life intangible assets – trade names/secrets and other		2,615			2,615
Total intangible assets	$	7,596		$	7,932

Amortization expense of the Company’s intangible assets for the three months ended June 30, 2014 and 2013 was approximately $0.2 million and for the six months ended June 30, 2014 and 2013 was approximately $0.3 million. Estimated future amortization expense related to intangible assets is as follows (in thousands):

Remainder of 2014	$	329
2015		655
2016		654
2017		654
Thereafter		2,689
Total estimated future amortization expense	$	4,981

The Company’s goodwill and other intangible assets are more fully explained in Note 11 to the consolidated financial statements in Item 8 of the Company’s Form 10-K for the fiscal year ended December 31, 2013.

15

OMEGA PROTEIN CORPORATION

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – (continued)

NOTE 10. NOTES PAYABLE AND LONG-TERM DEBT

At June 30, 2014 and December 31, 2013, the Company's long-term debt consisted of the following:

	June 30,			December 31,
	2014			2013
	(in thousands)
U.S. government guaranteed obligations (Title XI loans) collateralized by a first lien on certain vessels and certain plant assets:
Amounts due in installments through 2025, interest from 5.7% to 7.0%	$	22,381		$	24,211
Amounts due in installments through 2014, interest at Eurodollar rates plus 0.5% (0.7% and 0.7% at June 30, 2014 and December 31, 2013, respectively)		10			31
Total debt		22,391			24,242
Less current maturities		(2,564	)		(3,112	)
Long-term debt	$	19,827		$	21,130

The Title XI loans are secured by certain liens on the Company’s fishing vessels and mortgages on the Company’s Reedville, Virginia and Abbeville, Louisiana plants.     

In June 2011, pursuant to the Title XI program, the United States Department of Commerce Fisheries Finance Program (the “FFP”) approved a financing application made by the Company in the amount of $10.0 million (the “Approval Letter”) which expires on June 20, 2016. To date, the Company has not borrowed any amounts under the Approval Letter and its ability to do so may be adversely affected by an EPA notice that the Company’s Omega Protein subsidiary is ineligible, as a result of its previous convictions under the Clean Water Act, for receipt of government contracts or benefits in certain cases. See “Risk Factors - If our Omega Protein subsidiary fails to comply with the terms of its probation under a plea agreement entered into in June 2013, we could be subject to criminal prosecution” in the Company’s Form 10-K for the year ended December 31, 2013 for further detail on this EPA notice. As of June 30, 2014, the Company had approximately $22.4 million of borrowings outstanding under Title XI and was in compliance with all of the covenants contained therein.

In March 2012, the Company entered into an Amended and Restated Loan Agreement (the “Loan Agreement”) with Wells Fargo Bank, National Association, as administrative agent (the “Agent”) for the lenders (currently Wells Fargo Bank, National Association and JP Morgan Chase Bank, N.A.) (collectively, the “Lenders”) pursuant to which the Lenders agreed to extend credit to the Company in the form of loans (each a “Loan” and collectively, the “Loans”) on a revolving basis of up to $60.0 million (the “Commitment”).

All Loans and all other obligations outstanding under the Loan Agreement are payable in full on March 21, 2017. As of June 30, 2014 and December 31, 2013, the Company had no amounts outstanding under the $60 million Loan Agreement and approximately $3.5 million in letters of credit. As of June 30, 2014, the Company was in compliance with all financial covenants under the Loan Agreement. The Company has no off-balance sheet arrangements other than normal operating leases and standby letters of credit.

The Company’s notes payable and long-term debt are more fully explained in Note 12 to the consolidated financial statements in Item 8 of the Company’s Form 10-K for the fiscal year ended December 31, 2013.

16

OMEGA PROTEIN CORPORATION

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – (continued)

NOTE 11. ACCRUED LIABILITIES

Accrued liabilities as of June 30, 2014 and December 31, 2013 are summarized as follows:

	June 30,		December 31,
	2014		2013
	(in thousands)
Insurance	$	5,405	$	7,222
Reserve for plant closure costs		478		595
Salary and benefits		9,240		9,423
Trade creditors		6,825		5,100
Taxes, other than income tax		1,035		64
Income tax		1,427		4,132
Deferred revenue		1,147		2,362
Accrued interest		190		200
Other		163		47
Total accrued liabilities	$	25,910	$	29,145

As of June 30, 2014 and December 31, 2013, deferred revenue represents payments primarily received from international customers related to revenues which were not recognized until the subsequent period due to revenue recognition criteria.

NOTE 12. COMMITMENTS AND CONTINGENCIES

InCon Contingency

In September 2011, the Company acquired all of the outstanding equity of InCon in a cash transaction pursuant to the terms of an equity purchase agreement. The equity of InCon was indirectly held by four individuals (the “Sellers”), some of whom continue to be employed by InCon and share in the management of InCon’s business. InCon is now a wholly owned subsidiary of the Company.

In addition to the acquisition date cash purchase price, the Sellers may also earn additional amounts based on the annual EBITDA of InCon’s toll processing and specialty product business during calendar years 2012 through 2016. The Company and the Sellers amended the earn-out terms on April 25, 2013 by lowering the earn-out by 35% of the original formula in 2013 and all future years. The annual earn-out provisions (as amended) are determined based on a percentage of InCon’s EBITDA, adjusted for certain product sales and costs, which percentage ranges from 3.25% of the first $3.0 million of EBITDA to 19.5% of EBITDA in excess of $12.0 million.

The annual earn-out payments, if any, will be estimated on a quarterly basis and paid subsequent to year end. The Company will record the estimated contractual obligation as compensation expense during each year as it is deemed probable that such amount will be payable. In addition, the earn-out payments are subject to certain reductions associated with future InCon capital expenditures and forfeitures based on termination of employment of a Seller. For the six months ended June 30, 2014 and year ended December 31, 2013, the Company has not recorded an annual earn-out estimate.

Legal Contingencies

The Company has been named in a lawsuit filed in federal court in the Southern District of Mississippi in connection with the death of an employee at the Company’s Moss Point, Mississippi plant in April 2012. The lawsuit alleges that the Company intentionally caused the employee’s death, a claim that the Company emphatically denies. The Company believes that the claim is covered by the state’s workers compensation statute which provides that worker compensation benefits are the exclusive remedy for a work-related injury or death under these circumstances. The Company has filed a motion for summary judgment asking the court to dismiss the claim. If the court does not grant the Company’s motion, the case is currently set for trial in October 2014. The Company intends to contest the claim vigorously.

Regulatory Matters

The Company is subject to various possible claims and lawsuits regarding environmental matters. Management believes that costs, if any, related to these matters will not have a material adverse effect on the results of operations, cash flows or financial position of the Company.

17

OMEGA PROTEIN CORPORATION

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – (continued)

NOTE 13. RECONCILIATION OF BASIC AND DILUTED PER SHARE DATA (in thousands except per share date)

Basic earnings per share is calculated by dividing net income allocated to common shares outstanding by the weighted average number of shares of common stock outstanding. Diluted earnings per share assumes the exercise of stock options provided the effect is not anti-dilutive.

The Company grants certain incentive compensation awards, including restricted stock, to employees and non-employee directors that are considered to be participating securities. Due to the presence of participating securities, we have calculated our earnings per share using the two-class method.

Three Months Ended June 30:	2014				2013
Allocation of earnings:
Net income	$	6,633			$	3,990
Income allocated to participating securities		(171	)			(88	)
Income allocated to common shares outstanding	$	6,462			$	3,902
Weighted average common shares outstanding		20,428				19,779
Basic earnings per share				0.32				0.20
Stock options assumed exercised		677				802
Weighted average diluted common shares and potential common share equivalents outstanding		21,105				20,581
Diluted earnings per share				0.31				0.19

Six Months Ended June 30:	2014				2013
Allocation of earnings:
Net income	$	14,604			$	6,835
Income allocated to participating securities		(364	)			(149	)
Income allocated to common shares outstanding	$	14,240			$	6,686
Weighted average common shares outstanding		20,392				19,623
Basic earnings per share				0.70				0.34
Stock options assumed exercised		670				776
Weighted average diluted common shares and potential common share equivalents outstanding		21,062				20,399
Diluted earnings per share				0.68				0.33

Options to purchase the following number of shares of common stock (in thousands) were outstanding during the three and six months ended June 30, 2014 and 2013 but were excluded from the computation of diluted earnings per share because the adjusted exercise prices of the options based upon the assumed proceeds were greater than the average market price of the shares during that period.

Three Months Ended June 30,				Six Months Ended June 30,
2014		2013		2014		2013
	130		135		130		1,311

18

OMEGA PROTEIN CORPORATION

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – (continued)

NOTE 14. COMPONENTS OF NET PERIODIC BENEFIT COST

	Three Months Ended June 30,						Six Months Ended June 30,
	2014			2013			2014			2013
	(in thousands)						(in thousands)
Service cost	$	—		$	—		$	—		$	—
Interest cost		274			248			548			496
Expected return on plan assets		(298	)		(253	)		(596	)		(506	)
Amortization of prior service costs		—			—			—			—
Amortization of net loss		229			386			458			772
Net periodic pension cost	$	205		$	381		$	410		$	762

For the six months ended June 30, 2014 and 2013, the Company contributed approximately $0.8 million and $0.7 million, respectively, to the Company’s pension plan. The Company expects to make contributions of $1.1 million to the pension plan during the remainder of 2014.

In 2002, the Board of Directors authorized a plan to freeze the Company’s pension plan in accordance with ERISA rules and regulations so that new employees, after July 31, 2002, are not eligible to participate in the pension plan and further benefits no longer accrue for existing participants.

NOTE 15. INDUSTRY SEGMENTS

The Company reports in two segments, animal nutrition and human nutrition. These segments are managed separately and information on each segment is provided to the chief operating decision makers as they make decisions about the Company’s overall resource allocation and assess performance.

The animal nutrition segment is primarily comprised of the Company’s fishing related assets. These assets produce fish meal, oil and solubles that are sold primarily to animal nutrition customers. A portion of the Company’s fish oil is also partially refined and transferred at cost to the human nutrition segment where it is further refined and concentrated for sale to the human nutrition market. The human nutrition segment is comprised of assets used to produce, procure, market and sell product to human nutrition markets.

The tables below present information about reported segments for three months ended June 30, 2014 and 2013 (in thousands). It should be noted that all cash and cash equivalent balances have been included in the identifiable assets of the unallocated segment.

June 30, 2014	Animal Nutrition			Human Nutrition			Unallocated			Total
Revenue (1)	$	65,264		$	6,649		$	—		$	71,913
Cost of sales		45,501			5,988			—			51,489
Gross profit		19,763			661			—			20,424
Selling, general and administrative expenses (including research and development)		636			2,067			4,367			7,070
Loss related to plant closure		2,616			—			—			2,616
Other (gains) and losses		(14	)		—			—			(14	)
Operating income (loss)	$	16,525		$	(1,406	)	$	(4,367	)	$	10,752
Depreciation and amortization	$	4,374		$	699		$	45		$	5,118
Identifiable assets	$	224,416		$	76,734		$	41,156		$	342,306
Capital expenditures	$	5,761		$	4,692		$	—		$	10,453

(1) Excludes revenue from internal customers of $0.7 million for fish oil that was transferred from the animal nutrition segment to the human nutrition segment at cost.

19

OMEGA PROTEIN CORPORATION

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – (continued)

June 30, 2013	Animal Nutrition			Human Nutrition(2)			Unallocated			Total
Revenue (3)	$	34,453		$	7,324		$	—		$	41,777
Cost of sales		22,786			5,708			—			28,494
Gross profit		11,667			1,616			—			13,283
Selling, general and administrative expenses (including research and development)		662			1,861			4,072			6,595
Other (gains) and losses		(2	)		—			—			(2	)
Operating income (loss)	$	11,007		$	(245	)	$	(4,072	)	$	6,690
Depreciation and amortization	$	4,472		$	632		$	172		$	5,276
Identifiable assets	$	227,462		$	57,861		$	23,002		$	308,325
Capital expenditures	$	5,741		$	324		$	119		$	6,184

(2) Includes revenues and related expenses for WSP.

(3) Excludes revenue from internal customers of $0.4 million for fish oil that was transferred from the animal nutrition segment to the human nutrition segment at cost.

The tables below present information about reported segments for the six months ended June 30, 2014 and 2013 (in thousands).

June 30, 2014	Animal Nutrition		Human Nutrition			Unallocated			Total
Revenue (4)	$	120,534	$	14,879		$	—		$	135,413
Cost of sales		81,668		12,828			—			94,496
Gross profit		38,866		2,051			—			40,917
Selling, general and administrative expenses (including research and development)		1,189		3,988			8,470			13,647
Loss related to plant closure		3,939		—			—			3,939
Other (gains) and losses		42		191			—			233
Operating income (loss)	$	33,696	$	(2,128	)	$	(8,470	)	$	23,098
Depreciation and amortization	$	8,742	$	1,400		$	193		$	10,335
Identifiable assets	$	224,416	$	76,734		$	41,156		$	342,306
Capital expenditures	$	10,358	$	12,901		$	9		$	23,268

(4) Excludes revenue from internal customers of $1.4 million for fish oil that was transferred from the animal nutrition segment to the human nutrition segment at cost.

June 30, 2013	Animal Nutrition		Human Nutrition(5)			Unallocated			Total
Revenue (6)	$	76,790	$	13,910		$	—		$	90,700
Cost of sales		53,880		11,440			—			65,320
Gross profit		22,910		2,470			—			25,380
Selling, general and administrative expenses (including research and development)		1,290		3,157			9,146			13,593
Other (gains) and losses		374		—			—			374
Operating income (loss)	$	21,246	$	(687	)	$	(9,146	)	$	11,413
Depreciation and amortization	$	8,821	$	1,070		$	362		$	10,253
Identifiable assets	$	227,462	$	57,861		$	23,002		$	308,325
Capital expenditures	$	12,046	$	613		$	238		$	12,897

(5) Includes revenues and related expenses for WSP from February 27, 2013 through June 30, 2013.

(6) Excludes revenue from internal customers of $1.0 million for fish oil that was transferred from the animal nutrition segment to the human nutrition segment at cost.

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OMEGA PROTEIN CORPORATION

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – (continued)

A reconciliation of total segment operating income to total earnings from operations before income taxes for the three and six months ended June 30, 2014 and 2013 is as follows (in thousands):

	Three Months Ended June 30,
	2014			2013
Operating income for reportable segments	$	10,752		$	6,690
Interest income		5			2
Interest expense		(135	)		(481	)
Other expense, net		(118	)		(98	)
Income before income taxes	$	10,504		$	6,113

	Six Months Ended June 30,
	2014			2013
Operating income for reportable segments	$	23,098		$	11,413
Interest income		13			10
Interest expense		(382	)		(873	)
Other expense, net		(174	)		(181	)
Income before income taxes	$	22,555		$	10,369

NOTE 16. FAIR VALUE DISCLOSURES

The following disclosures of the estimated fair value of financial instruments are made in accordance with the requirements of FASB ASC 825-10-50, Disclosure About Fair Value of Financial Instruments. The estimated fair value amounts have been determined by the Company using available market information and appropriate valuation methodologies.

The carrying values and respective fair values of the Company’s long-term debt are presented below (in thousands). The fair value of the Company’s long-term debt is estimated based on the quoted market prices available to the Company for issuance of similar debt with similar terms at June 30, 2014 and December 31, 2013.

	June 30,		December 31,
	2014		2013
Long-term Debt (Level 2):
Carrying Value	$	22,391	$	24,242
Estimated Fair Value	$	23,791	$	25,285

The following tables set forth by level within the fair value hierarchy the Company's financial assets and liabilities that were accounted for at fair value on a recurring basis as of June 30, 2014 and December 31, 2013. As required by FASB ASC 820-10, financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The Company's assessment of the significance of a particular input to the fair value measurement requires judgment, and may affect the valuation of fair value assets and liabilities and their placement within the fair value hierarchy levels.

	June 30, 2014
	Fair Value Measurements Using						Assets
	Level 1		Level 2		Level 3			(Liabilities) at Fair Value
Assets (Liabilities) (in thousands)
Energy swap	$	—	$	219	$	—	$	219
Total Assets (Liabilities)	$	—	$	219	$	—	$	219

	December 31, 2013
	Fair Value Measurements Using						Assets
	Level 1		Level 2		Level 3			(Liabilities) at Fair Value
Assets (Liabilities) (in thousands)
Energy swap	$	—	$	275	$	—	$	275
Total Assets (Liabilities)	$	—	$	275	$	—	$	275

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) should be read in conjunction with the Company’s MD&A contained in the Form 10-K for the fiscal year ended December 31, 2013 (the “2013 Form 10-K”), and in conjunction with the consolidated financial statements included in this report and in the 2013 Form 10-K.

Forward-looking statements in this Form 10-Q, future filings by the Company with the Securities and Exchange Commission (the “Commission” or “SEC”), the Company’s press releases and oral statements by authorized officers of the Company are intended to be subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that all forward-looking statements involve risks and uncertainty. The Company believes that forward-looking statements made by it are based on reasonable expectations; however, no assurances can be given that actual results will not differ materially from those contained in such forward-looking statements. Forward-looking statements include statements that are predictive in nature, that depend upon or refer to future events or conditions, or that include the words “estimate,” “project,” “anticipate,” “expect,” “predict,” “assume,” “believe,” “could,” “would,” “hope,” “may,” or similar expressions. In evaluating those statements, you should carefully consider the information above as well as the risks outlined in Item 1A. Risk Factors in our 2013 Form 10-K and this Form 10-Q.

General

Omega Protein Corporation is a nutritional company that develops, produces and delivers healthy products throughout the world to improve the nutritional integrity of functional foods, dietary supplements and animal feeds. As used herein, the term the “Company” refers to Omega Protein Corporation and its consolidated subsidiaries, as applicable. The Company’s principal executive offices are located at 2105 City West Boulevard, Suite 500, Houston, Texas 77042-2838 (Telephone: (713) 623-0060).

The Company operates in two primary industry segments: animal nutrition and human nutrition.

The animal nutrition segment is comprised primarily of two subsidiaries: Omega Protein, Inc. and Omega Shipyard, Inc. Omega Protein, Inc. (“Omega Protein”), the Company’s principal operating subsidiary, is predominantly dedicated to the production of animal nutrition products and operates in the menhaden harvesting and processing business and is the successor to a business conducted since 1913. In December 2013, the Company closed its Cameron, Louisiana menhaden processing plant and re-deployed some of that plant’s harvesting and processing assets to its other plants. Omega Protein currently operates a total of three menhaden processing plants in the states of Louisiana, Mississippi and Virginia. The Company also operates a Health and Science Center in Reedville, Virginia, which provides a 100-metric tons per day fish oil input capacity for the Company’s food, industrial and feed grade oils. A portion of Omega Protein’s production is transferred to its human nutrition segment where it is further processed and sold. Omega Shipyard, Inc. (“Omega Shipyard”) owns and operates a drydock facility in Moss Point, Mississippi that is used to provide shoreside maintenance for Omega Protein’s fishing fleet and, subject to outside demand and excess capacity, occasionally for third-party vessels.

The human nutrition segment, which operates under the name Nutegrity, is comprised primarily of three subsidiaries: Cyvex Nutrition, Inc. (“Cyvex”), InCon Processing, L.L.C. (“InCon”) and Wisconsin Specialty Protein, L.L.C. (“WSP”). Cyvex, acquired by the Company in December 2010, is located in Irvine, California and is an ingredient provider in the nutraceutical industry. InCon, acquired by the Company in September 2011, is located in Batavia, Illinois and is a specialty processor that utilizes molecular distillation technology to concentrate Omega-3 fish oils and, subject to outside demand and excess capacity, a variety of other compound products for third-party tolling customers. WSP, acquired by the Company on February 27, 2013, is a manufacturer and marketer of specialty dairy and other protein products headquartered in Madison, Wisconsin and operates a production facility in Reedsburg, Wisconsin. For additional information related to the Company’s acquisition of WSP, see Note 2 – Acquisition of Wisconsin Specialty Protein, L.L.C to the unaudited condensed consolidated financial statements in Item 1. The Company also operates a technical center in Houston, Texas, the Omega Protein Technology and Innovation Center, which has food science application labs as well as analytical, sensory, lipids research and pilot plant capabilities.

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Company Overview

Revenues Composition. The following table sets forth Omega Protein’s revenues by product (in millions) and the approximate percentage of total revenues represented thereby, for the indicated periods:

	Three Months Ended June 30,
	2014					2013
	Revenues		Percent			Revenues		Percent
Fish Meal	$	37.4		52.0	%	$	26.0		62.2	%
Fish Oil		21.3		29.6			1.7		4.1
Refined Fish Oil		5.7		7.9			5.7		13.6
Fish Solubles and Other		0.9		1.3			1.1		2.6
Dietary Supplement and Food Ingredients and Products		6.6		9.2			7.3		17.5
Total	$	71.9		100.0	%	$	41.8		100.0	%

	Six Months Ended June 30,
	2014					2013
	Revenues		Percent			Revenues		Percent
Fish Meal	$	65.9		48.6	%	$	53.4		58.9	%
Fish Oil		41.3		30.5			9.6		10.6
Refined Fish Oil		11.2		8.3			11.2		12.3
Fish Solubles and Other		2.1		1.6			2.6		2.9
Dietary Supplement and Food Ingredients and Products		14.9		11.0			13.9		15.3
Total	$	135.4		100.0	%	$	90.7		100.0	%

The following table sets forth Omega Protein’s revenues by geography (in millions) and the approximate percentage of total revenues represented thereby, for the indicated periods:

	Three Months Ended June 30,
	2014					2013
	Revenues		Percent			Revenues		Percent
Domestic Revenues	$	30.9		43.0	%	$	28.8		68.9	%
Export Revenues		41.0		57.0			13.0		31.1
Total	$	71.9		100.0	%	$	41.8		100.0	%

	Six Months Ended June 30,
	2014					2013
	Revenues		Percent			Revenues		Percent
Domestic Revenues	$	63.7		47.0	%	$	55.8		61.6	%
Export Revenues		71.7		53.0			34.9		38.4
Total	$	135.4		100.0	%	$	90.7		100.0	%

 Animal Nutrition Products

2014 Fishing Information.  At June 30, 2014, Omega Protein owned a fleet of 39 vessels and 31 spotter aircraft for use in its fishing operations and also leased additional aircraft where necessary to facilitate operations. During the 2014 fishing season in the Gulf of Mexico, which runs from mid-April through October, Omega Protein is operating 21 fishing and carry vessels and 19 spotter aircraft. The fishing area in the Gulf is generally located along the Gulf Coast, with a concentration off the Louisiana and Mississippi coasts. The fishing season along the Atlantic coast began in mid-May and can extend into early December. During the 2014 season, Omega Protein is operating 7 fishing vessels and 7 leased spotter aircraft along the Mid-Atlantic coast. The remaining fleet of fishing vessels and spotter aircraft are not routinely operated during the fishing season and are back-up to the active fleet, used for other transportation purposes, inactive, in the process of refurbishment in the Company’s shipyard or held for disposal. Historical fish catch and production results at the end of the second quarter for the past five years are as follows:

	2014		2013		2012		2011		2010
Fish catch in tons as of June 30,		109,359		124,612		229,564		188,403		166,552
Fish meal, oil and solubles production in tons (excludes refined)		35,882		49,542		75,242		65,848		58,164

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The Company cautions that because of the volatility of fish catch generally, partial year catch numbers are not indicative of results that may be expected for a full year. In addition, fish catch, yields and production, which affect inventory costs and volumes available for sale, fluctuate from year to year and month to month. The Company’s 2014 fish catch and related production results through June 30, 2014 have been the lowest in its recent history. For illustrative purposes, the Company’s fish meal, oil and solubles production for the 2014 fishing season through June 30, 2014 is lower by 41% compared to the Company’s five year fish meal, oil and solubles production average. This reduction is due in part to the Company’s decision to close its Cameron, Louisiana facility and fish three less vessels, and the limit on fish caught in the Atlantic Ocean enacted before the 2013 fishing season. Additionally, short term conditions such as weather and migratory fish patterns may have also negatively impacted fish catch and production in the Gulf of Mexico. The impact of the low fish meal, oil and solubles production could result in significantly higher per unit inventory cost and fewer volumes available for future sale. These higher unit costs and fewer volumes available for sale have adversely impacted financial results for the second quarter of 2014 and could adversely affect financial results through the second quarter of 2015 if production does not increase.

Products. Omega Protein produces and markets a variety of products produced from menhaden (a herring-like species of fish found in commercial quantities in the U.S. coastal waters of the Atlantic Ocean and Gulf of Mexico), including regular grade and value-added specialty fish meals, crude and refined fish oils and fish solubles. Omega Protein’s fish meal products are primarily used as a protein ingredient in animal feed for swine, aquaculture and household pets. Fish oil is utilized primarily for animal and aquaculture feeds, as well as additives to human food products and dietary supplements. A portion of Omega Protein’s production is transferred to the human nutrition segment where it is further processed and sold. Omega Protein’s fish solubles are sold primarily to bait manufacturers, aquaculture feed manufacturers and for use as an organic fertilizer. Omega Protein’s business is seasonal in nature and generally has higher revenues during the third quarter of each fiscal year.

Sales Contracts.Omega Protein generally sells most of its products on up to a twelve-month forward contract basis with the balance sold on a spot basis through purchase orders or under longer-term forward contracts. Omega Protein’s sales contracts generally contain force majeure and other production allocation provisions. Historically, fish meal and fish oil sold on a forward contract basis has fluctuated from year to year based upon perceived market availability and forward price expectations. As of June 30, 2014, Omega Protein had sold forward on a contract basis approximately 65,000 short tons of fish meal and 10,000 metric tons of fish oil for 2014, contingent on 2014 production and product availability. Of these 2014 forward sales, the majority was contracted during 2014. As a basis of comparison, as of June 30, 2013, Omega Protein had sold forward on a contract basis approximately 65,000 short tons of fish meal and 20,000 metric tons of fish oil for 2013.

Omega Protein’s annual revenues are highly dependent on pricing, annual fish catch, production yields and inventories. Inventory is generally carried over from one year to the next year and Omega Protein determines the level of inventory to be carried over based on existing contracts, prevailing market prices of the products and anticipated customer usage and demand during the off-season. Thus, production volume does not necessarily correlate with sales volume in the same year and sales volumes will fluctuate from quarter to quarter. Omega Protein’s fish meal products have a useable life of approximately one year from date of production. Practically, however, Omega Protein attempts to empty its warehouses of the previous season’s products by the second or third month of the new fishing season. Omega Protein’s crude fish oil products do not lose efficacy unless exposed to oxygen and, therefore, their storage life typically is longer than that of fish meal.

Customers and Marketing.Most of Omega Protein’s marine products are sold directly to approximately 200 customers by Omega Protein’s agriproducts sales department, while a smaller amount is sold through independent sales agents and the Company’s human nutrition segment. Omega Protein’s animal nutrition segment product inventory was $33.1 million as of June 30, 2014 versus $73.8 million as of December 31, 2013.

Omega Protein’s fish meal is sold to feed producers as a high-protein ingredient for the swine, aquaculture and pet food industries. Crude fish oil sales primarily involve export markets where the fish oil is used as an ingredient in aquaculture feeds. Over the past decade, increasing percentages of Omega Protein’s fish meal and oil products have been sold into the aquaculture industry. Generally, the growth of the worldwide aquaculture industry has resulted in increasing demand for fish oils and meals to improve feed efficiency, nutritional value and health of farm-raised fish species.

Omega Protein’s products are sold both in the U.S. and internationally. International sales consist of both fish meal and fish oil and are primarily to China, Norway, Canada, Saudi Arabia and Japan. Omega Protein’s sales in these foreign markets are denominated in U.S. dollars and are not directly affected by currency fluctuations. Such sales could be adversely affected by changes in demand resulting from fluctuations in currency exchange rates.

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A number of countries in which Omega Protein currently sells products impose various tariffs and duties, none of which have a significant impact on Omega Protein’s foreign sales. Certain of these duties have been reduced in recent years for certain countries under the North American Free Trade Agreement and the Uruguay Round Agreement of the General Agreement on Tariffs and Trade. In all cases, Omega Protein’s products are shipped to its customers either by 1) free on board shipping point or 2) costs, insurance and freight terms, and therefore, the customer is responsible for any tariffs, duties or other levies imposed on Omega Protein’s products sold into these markets.

During the off season, Omega Protein fills purchase orders from the inventory it has accumulated during the fishing season or in some cases, by re-selling meal and oil purchased from other suppliers. Throughout the entire year, prices are often significantly influenced by supply and demand in world markets for competing products, primarily other global sources of fish meal and oil, and also soybean meal for its fish meal products, and vegetable oils for its fish oil products when used as an alternative.

Competition.    Omega Protein competes with a smaller domestic privately-owned menhaden fishing company and with numerous fish processors outside the United States. In addition, but to a lesser extent, the Company’s marine protein and oil business is also subject to significant competition from producers of vegetable and other animal protein and oil products. Many of these competitors have significantly greater financial resources, less onerous regulatory costs and more extensive and diversified operations than those of the Company.

Omega Protein competes on price, quality and performance characteristics of its products, such as protein level and amino acid profile in the case of fish meal. The principal competition for Omega Protein’s fish meal and fish solubles is from other global marine proteins as well as other protein sources such as soybean meal and other vegetable or animal protein products. Omega Protein believes, however, that these other non-marine sources are not complete substitutes because fish meal offers nutritional values not contained in such other sources. Other globally produced fish oils provide the primary market competition for Omega Protein’s fish oil, as well as soybean and rapeseed oil.

Fish meal prices have generally borne a loose relationship to other protein sources, and the prices for Omega Protein’s fish meal and fish oil products are established by worldwide supply and demand relationships over which Omega Protein has no control and tend to fluctuate significantly over the course of a year and from year to year. 

Regulation.    Omega Protein’s operations are subject to federal, state and local laws and regulations relating to the locations and periods in which fishing may be conducted as well as environmental and safety matters. At the state and local level, certain state and local government agencies have enacted legislation or regulations, which are subject to changes from time to time, which prohibit, restrict or regulate menhaden fishing within their jurisdictional waters.

Omega Protein’s menhaden fishing operations are also subject to regulation by two interstate compact commissions created by federal law: the Atlantic States Marine Fisheries Commission (“ASMFC”) which consists of 14 states along the Atlantic seaboard and three agencies, and the Gulf States Marine Fisheries Commission (“GSMFC”) which consists of five states along the Gulf of Mexico. The ASMFC and GSMFC manage the menhaden fishery throughout its coast-wide range. The Company supports the ASMFC’s and GSMFC’s goal of maintaining a healthy population of menhaden.

ASMFC. In December 2012, the ASMFC established a coast-wide limit on the amount of Atlantic menhaden that can be harvested each year. Based on a 20% reduction from the 2009-2011 average annual landings, total menhaden harvest in the 2013 fishing year and beyond will be limited to 170,800 metric tons (“mt”). The Company expects that this total harvest level will remain in place through 2015 when a new assessment of the Atlantic menhaden population will be conducted. The new catch limit represents a 24% reduction from the 2012 coastal harvest level of 224,200 mt, of which the Company accounted for 160,600 mt. Changes in these catch levels beyond 2015 likely will be influenced by the results of the planned 2014 benchmark stock assessment.

The ASMFC also voted to allocate the new catch quota among the Atlantic states based on the share of menhaden landings over the same three year period. As a result, Virginia received approximately 85 percent of the quota, or between about 144,270 mt and 146,000 mt, to be split between the Company and the Virginia bait fishery. The Company’s allowable catch for 2014 and 2015 is expected to be between approximately 129,900 mt and 131,500 mt for each year, significantly below the five year average catch through 2012 of 163,300 mt and its previous low harvest of 141,100 mt in 2008. Based on the five year average through 2012, 34% of the Company’s fish catch and 30% of its production of fish meal, oil and solubles came from its Atlantic business. As a result of the implementation of the ASMFC restrictions, prior to the commencement of the 2013 fishing season the Company reduced the number of vessels at its Reedville plant from eight to seven and reduced the number of Reedville employees from 260 to 225. Omega Protein estimates its 2013 harvest was 99.8% of its allocated quota.

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In 2012, the ASMFC reduced the cap on the amount of menhaden that the Company can harvest in the Chesapeake Bay from 109,020 mt to 87,200 mt (the “Bay cap”). The Bay cap was originally established as a precautionary measure in 2006 while research was to be conducted to address, among other things, the question whether the menhaden harvest in the Bay could cause what is being termed “localized depletion” of menhaden there. No evidence of such localized depletion has been produced.

The Bay cap did not affect the Company’s Chesapeake Bay harvests for the years 2007 through 2013.Since the imposition of the original Bay cap in 2006, the Company’s harvests from these waters have been near or below the new 87,200 mt Bay cap level. Therefore, the Company does not expect that the new Bay cap will have a material adverse effect on its business, financial results or results of operations.

GSMFC. In October 2013, the GSMFC adopted reference points for the Gulf menhaden fishery. The reference points do not establish any caps or quotas on the Gulf menhaden fishery but rather measure the rate of harvest in order to insure the continued health of the population. The reference points were set at 663,583 mt annually as the target reference point and 680,765 mt annually as the threshold reference point. For reference, the 2013 total industry wide landings for Gulf menhaden were 497,503 mt.

The GSMFC recommended that if the target level of 663,583 mt were to be exceeded two years in a row, the GSMFC would request an update to the Gulf menhaden stock assessment. In addition, if the threshold level of 680,765 mt were to be exceeded in a single year, the GSMFC would also request a stock assessment update. The next Gulf stock assessment is scheduled for 2018.

Omega Protein, through its operation of fishing vessels, is subject to the jurisdiction of the U.S. Coast Guard, the National Transportation Safety Board and the U.S. Customs Service. The U.S. Coast Guard and the National Transportation Safety Board set safety standards and are authorized to investigate vessel accidents and recommend improved safety standards. The U.S. Customs Service is authorized to inspect vessels at will.

The Company’s operations are subject to federal, state and local laws and regulations relating to the protection of the environment, including the federal Clean Water Act, which imposes strict controls against the discharge of pollutants in reportable quantities, and along with the Oil Pollution Act, imposes substantial liability for the costs of oil removal, remediation and damages. Omega Protein’s operations also are subject to the federal Comprehensive Environmental Response, Compensation, and Liability Act, which imposes liability, without regard to fault, on certain classes of persons that contributed to the release of any “hazardous substances” into the environment and the federal Occupational Safety and Health Act (“OSHA”). The implementation of continuing safety and environmental regulations from these authorities could result in additional requirements and procedures for the Company, and it is possible that the costs of these requirements and procedures could be material.

The OSHA hazard communications standard, the Environmental Protection Agency community right-to-know regulations under Title III of the federal Superfund Amendment and Reauthorization Act and similar state statutes require the Company to organize information about hazardous materials used or produced in its operations. Certain of this information must be provided to employees, state and local governmental authorities and local citizens. Numerous other environmental laws and regulations, along with similar state laws, also apply to the operations of the Company, and all such laws and regulations are subject to change.

In April 2010, the Company received a request for information from the EPA concerning its bail wastewater practices used in its fishing operations at its Reedville, Virginia facility. In February 2011, the U.S. Coast Guard conducted inspections at the Company’s Reedville facility regarding the Reedville vessels’ bilge water discharge practices. Based on these inquiries, both agencies commenced investigations of the Company’s bail waste water and bilge water practices at its Reedville facility. The U.S. Attorney’s Office for the Eastern District of Virginia subsequently reviewed both the results of the Coast Guard inspection and the EPA request for information.

In June 2013, the Company’s subsidiary, Omega Protein, resolved both the U.S. Coast Guard and EPA investigations by entering into a plea agreement with the United States Attorney’s Office for the Eastern District of Virginia. Pursuant to terms of the plea agreement, the Company’s subsidiary pled guilty to two Clean Water Act violations. The plea agreement required the subsidiary to pay a $5.5 million fine, be placed on a three year term of probation, and implement an environmental compliance program. In addition to the $5.5 million fine, the subsidiary was required to make a $2.0 million contribution to the National Fish and Wildlife Foundation to fund projects in Virginia related to the protection of the environmental health of the Chesapeake Bay. The plea agreement was approved by the U.S. District Court for the Eastern District of Virginia in June 2013 and the subsidiary paid both the $5.5 million fine and the $2.0 million contribution in July 2013. Omega Protein will be on probation until June 2016, unless the probation period is terminated earlier by the court.

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In 2013, Omega Protein requested an equivalency determination from the U.S. Coast Guard for its Gulf of Mexico fleet regarding the use of certain vessel equipment required for “ocean-going vessels” (as defined by Coast Guard regulations) that operate beyond the 12 nautical mile limit. In April 2013, the Coast Guard granted Omega Protein a partial waiver for its 2013 fishing season that allowed Omega Protein to travel, but not fish, outside 12 nautical miles of shore. In January 2014, the Coast Guard granted Omega Protein’s request to utilize alternate and enhanced management procedures in lieu of the Coast Guard’s required vessel equipment, subject to certain restrictions. The Coast Guard also granted Omega Protein a 12 month waiver from the equipment requirements to allow the Company sufficient time to implement these alternate measures, and also allowed fishing beyond the 12 nautical mile limit for a 12 month period, subject to certain restrictions. The Company intends to implement these measures by the beginning of the 2015 fishing season.

The Company has made, and anticipates that it will make in the future, expenditures in the ordinary course of its business in connection with environmental and regulatory matters. It is possible that environmental laws and regulations could require material expenditures or otherwise adversely affect the Company’s operations.

Omega Protein is also subject to laws and regulations in foreign countries regarding the importation of fish meal or fish oil in those jurisdictions. Some of these laws and regulations, particularly in countries such as China whose regulatory regimes may still be evolving, or in supra-national jurisdictions such as the European Union, may adversely affect the Company’s business, results of operations and financial condition. More stringent laws and regulations, or new interpretations of, or changes to, those laws and regulations, in foreign jurisdictions on contaminant levels, health and sanitation requirements, import documentation, license requirement restrictions imposed by port of entry protocols or other similar restrictions could result in: (i) Omega Protein’s incurrence of additional capital expenditures and operating costs in order to comply with these requirements, (ii) Omega Protein’s withdrawal from marketing its products in those jurisdictions which could lead to material loss of revenues, earnings and market share, or (iii) costs of demurrage, cure or product recall incurred by Omega Protein as it complies with, or attempts to comply with, these restrictions. For example, exports of fish meal to China and the European Union are subject to certain health and sanitation requirements that are administered by the Seafood Inspection Program (“SIP”), a U.S. federal agency selected by those jurisdictions as the competent authority to oversee compliance with export requirements by U.S. based manufacturers. Pursuant to SIP’s interpretation and application of China’s and the European Union’s health and sanitation requirements, Omega Protein’s processing facilities and its St. Louis fish meal warehouse may from time to time be limited or restricted in their ability to obtain export certificates in support of shipments of fish meal to China or the European Union or certain shipments by the Company may be re-processed in order to meet these foreign health and sanitation requirements. These limitations and restrictions may have an adverse effect on the Company’s business, financial condition or results of operations.

Omega Protein’s harvesting operations are subject to the Shipping Act of 1916 and the regulations promulgated there under by the Department of Transportation, Maritime Administration which require, among other things, that Omega Protein be incorporated under the laws of the U.S. or a state, the Company’s chief executive officer be a U.S. citizen, no more of the Company’s directors be non-citizens than a minority of the number necessary to constitute a quorum and at least 75% of the Company’s outstanding capital stock (including a majority of the Company’s voting capital stock) be owned by U.S. citizens. If the Company fails to observe any of these requirements, it will not be eligible to conduct its harvesting activities in U.S. jurisdictional waters. Such a loss of eligibility would have a material adverse effect on the Company’s business, results of operations and financial condition.

To protect against such loss of eligibility, the Company’s Articles of Incorporation (i) contain provisions limiting the aggregate percentage ownership by non-citizens of each class of the Company’s capital stock to no more than 25% of the outstanding shares of each such class (the “Permitted Percentage”) so that any purported transfer to non-citizens of shares in excess of the Permitted Percentage will be ineffective as against the Company for all purposes (including for purposes of voting, dividends and any other distribution, upon liquidation or otherwise), (ii) provide for a dual stock certificate system to determine such ownership pursuant to which certificates representing shares of Company Common Stock bear legends that designate such certificates as either “citizen” or “non-citizen” depending on the citizenship of the owner, and (iii) permit the Company’s Board of Directors to make such determinations as may reasonably be necessary to ascertain such ownership and implement restrictive limitations on those shares that exceed the Permitted Percentage (the “Excess Shares”). For example, the Company’s Board is authorized, among other things, to redeem for cash (upon written notice) any Excess Shares in order to reduce the aggregate ownership by non-citizens to the Permitted Percentage.

Human Nutrition Products

Products.  Nutegrity, the Company’s human nutrition business, has three primary product lines: protein products, Omega-3 fish oil ingredients and other nutraceutical ingredients.

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Protein Products. Nutegrity produces a variety of value added whey protein ingredients for the food and nutritional supplement industries, including organic and other specialty protein products, using processes applicable to a variety of nutritional dairy ingredients. Nutegrity has three main categories of whey protein powders:

‒ rBGH-Free: Artificial growth hormone-free and gluten-free cow’s milk whey protein concentrate,

‒ Organic: USDA certified organic cow’s milk whey protein concentrate, and

‒ Goat: Gluten-free goat’s milk whey protein concentrate for those who cannot tolerate cow dairy products.

Nutegrity manufactures and sells Whey Protein Concentrate-80 and bulk ingredients globally to leading nutritional and food and beverage companies worldwide. By-products from the manufacturing process, including lactose, cream and animal feed supplements, are also sold.

Nutegrity also manufactures, blends and sells protein powder meal replacement / supplement products under its various tera’s™ brands. These products are sold to retail customers primarily in the natural, specialty foods and specialty supplements channels. The target market for these products is adults who seek a healthy lifestyle through minimally processed foods.

Nutegrity operates a 20,000 square foot dairy protein manufacturing facility in Reedsburg, Wisconsin which is in the process of being expanded to a 33,000 square foot facility. This expansion is substantially complete and will be complete in 2014.

Omega-3 Fish Oil Ingredients. Nutegrity produces OmegaActiv™, a concentrated form of refined fish oil which is marketed as a dietary supplement ingredient.

Nutegrity also produces OmegaPure®, a highly refined fish oil designed to deliver a stable, odorless, flavorless source of Omega-3 fatty acids which is marketed for food applications. OmegaPure® is kosher-certified.

Other Nutraceutical Ingredients. Nutegrity markets and sells an extensive list of other nutraceutical ingredients derived from fruit, vegetable and botanicals.  These products include the following signature ingredients:

•AvoVida® Avocado/ Soy Unsaponifiables for joint support;

•BioVinca® Vinpocetine for brain function support;

•BioVin® grape extract for cardiovascular support;

•Novusetin™ for cognitive health support;

•Euro Black Currant™ berry extract that provides anthocyanins with a high ORAC (Oxygen Radical Absorbance Capacity value); and

•BroccoPhane® broccoli sprout concentrate containing sulforophane.

Marketing.  Nutegrity markets its proprietary brands of dietary supplement ingredients through an integrated marketing program that includes internet, print, public relations and direct sales to companies manufacturing dietary supplements in all their forms (i.e. capsules, tablets and softgels). Nutegrity also directs and participates in clinical research studies, often in collaboration with scientists and research institutions, to validate the benefits of a product and provide scientific support for product claims and marketing initiatives.

Manufacturing Capabilities. The Company’s Batavia, Illinois facility is a specialty toll processor that utilizes molecular distillation technology to concentrate Omega-3 fish oils and, subject to outside demand and excess capacity, a variety of other compound products for third-party tolling customers. The Company believes that the Batavia facility’s concentration technology allows the Company to provide its customers with an enhanced range of Omega-3 fish oils in concentrated forms such as ethyl esters and triglycerides. The concentrated fish oils manufactured by the Batavia facility are marketed and sold under the Company’s OmegaActiv™ brand.

The Company’s Reedsburg, Wisconsin facility, which produces and markets a variety of value-added whey protein ingredients for the food and nutritional supplement industries, including organic and other specialty protein products, using processes applicable to a variety of nutritional dairy ingredients. The Company believes the acquisition of the Reedsburg facility will enhance its presence in the specialty proteins markets and advance its goal of providing sustainable, value-added nutrition ingredients.

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Competition.  The U.S. dietary supplement ingredient supplier industry is a large, highly fragmented and growing industry, with no single industry participant accounting for a majority of total industry sales. Competition is based primarily on price, quality and assortment of products, customer service, marketing support and availability of new ingredients. In addition, the market is highly sensitive to the introduction of new products.  Nutegrity competes with manufacturers, distributors and marketers of dietary supplement ingredients both within and outside the United States.

Regulation. The processing, formulation, safety, manufacturing, packaging, labeling, advertising, and distribution of Nutegrity products are subject to regulation by one or more federal agencies, including the Food and Drug Administration (“FDA”), the Federal Trade Commission (“FTC”), the Consumer Product Safety Commission (“CPSC”), the United States Department of Agriculture (“USDA”), and the Environmental Protection Agency (“EPA”), and by various agencies of the states and localities in which the products are sold. The area of business that these and other authorities regulate include, among others:

•    claims and advertising;
•    labels;
•    ingredients; and
•    manufacturing, distributing, importing, selling and storing of products.

In particular, the FDA regulates the formulation, manufacturing, packaging, storage, labeling, promotion, importation, and distribution and sale of dietary supplements and food ingredients in the United States, while the FTC regulates marketing and advertising claims.

Some Nutegrity products are packaged and sold directly to retailers and consumers, and therefore are subject to greater oversight and enforcement action by the FTC. In recent years, the FTC has instituted numerous enforcement actions against consumer packaged goods companies for failure to have adequate substantiation for claims made in advertising or for use of false or misleading advertising claims.

New Legislation and Regulations. Legislation or regulations may be introduced which, if passed, would impose substantial new regulatory requirements on the manufacture, packaging, labeling, advertising and distribution and sale of Nutegrity products. The Company cannot determine what effect additional domestic or international governmental legislation, regulations, or administrative orders, when and if promulgated, would have on Company’s business in the future. New legislation or regulations may require the reformulation, elimination, or relabeling of certain products to meet new standards and revisions to certain sales and marketing materials, and it is possible that the costs of complying with these new regulatory requirements could be material.

Critical Accounting Policies and Estimates

The methods, estimates and judgments used in applying the Company’s critical accounting policies have a significant impact on the results reported in the Consolidated Financial Statements. The SEC has defined the critical accounting policies as the ones that are most important to the portrayal of the Company’s financial condition and operating results, and requires the Company to make difficult and subjective judgments, often as a result of the need to make estimates of matters that are highly uncertain at the time of estimation. Based on this definition, the Company’s most critical policies include: valuation of inventory (Notes 1 and 7 to the consolidated financial statements in Item 8 of the Company’s 2013 Form 10-K), valuation of losses related to Jones Act and worker’s compensation insurance claims (Note to the consolidated financial statements in Item 8 of the Company’s 2013 Form 10-K), valuation of income and deferred taxes (Notes 1 and 14 in the Company’s 2013 Form 10-K), valuation of pension plan obligations (Notes 1 and 16 to the consolidated financial statements in Item 8 of the Company’s 2013 Form 10-K), and the valuation of goodwill and other intangible assets (Notes 1 and 11 to the consolidated financial statements in Item 8 of the Company’s 2013 Form 10-K).

Specifically with respect to inventory, Omega Protein’s per unit cost of production is estimated prior to the beginning of each fishing season based on total estimated fishing costs (including off-season costs) divided by estimated total units of production. Omega Protein adjusts the cost of sales, unallocated inventory cost pool and inventory balances at the end of the second, third and fourth quarters based on revised estimates of total units of production to total inventoriable costs. For 2013 the cost per unit of production decreased 6.5% from the third quarter of 2013 to the fourth quarter of 2013 due to larger than anticipated production during the fourth quarter. For the most part, Omega Protein begins selling its current season’s production during the third quarter and sells that production until the second quarter of the following year.

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OMEGA PROTEIN CORPORATION

Goodwill is tested annually for impairment of value, and whenever an event occurs or circumstances change that would more likely than not indicate the carrying amount of the asset is impaired. Determining whether an indicator of impairment has occurred during an interim period involves a significant amount of judgment.  During the interim periods, qualitative factors such as deterioration in general economic conditions, changes in the market for an entity’s products or services, declines in actual or planned revenue or earnings compared with actual and projected results of relevant prior periods, among others, are evaluated to determine if a triggering event which would result in a potential impairment has incurred.

As of the December 31, 2013, the results of the annual quantitative tests did not result in any impairment of goodwill because the fair values of each of the reporting units exceeded their respective carrying values. Specifically, our two reporting units, InCon/Cyvex and WSP, each had calculated fair values that were 21% in excess of their carrying values.  Additionally, the calculated fair value of InCon’s trade secrets exceeded its carrying value by 5%.  Key assumptions in the fair value calculations include discount rates and future sales volumes, prices and production costs.  It should be noted that these assumptions are highly subjective given the early stage and transitional nature of the businesses, and the use of different assumptions could produce significantly different fair values and, potentially, impairments.

Our annual quantitative tests have assumed increasing cash flows over the next several years, based on anticipated sales growth and improved profitability; through the six months ended June 30, 2014, the two reporting units have not achieved the assumed results.  If future cash flow expectations decline sufficiently, the estimated fair values could be reduced and potentially result in a material impairment in a subsequent period.

The Company also has other key accounting policies and accounting estimates relating to the allowance of doubtful accounts (Note 1 to the consolidated financial statements in Item 8 of the Company’s 2013 Form 10-K), valuation of shares-based compensation (Note 16 to the consolidated financial statements in Item 8 of the Company’s 2013 Form 10-K) and energy swap valuations (Notes 1 and 21 to the consolidated financial statements in Item 8 of the Company’s 2013 Form 10-K).  The Company believes that these key accounting policies and accounting estimates either do not generally require the Company to make estimates and judgments that are as difficult or as subjective as its critical accounting policies, or it is less likely that they would have a material impact on the Company’s reported results of operations for a given period.

For all financial statement periods presented, there have been no material modifications to the application of these critical accounting policies.

Results of Operations

The following discussion segregates the financial results of our two industry segments: animal nutrition and human nutrition. For a discussion of our segments, see Note 15 - Industry Segments to the unaudited condensed consolidated financial statements in Item 1.

Interim Results for the Second Quarters ended June 30, 2014 and June 30, 2013

Animal Nutrition

		Three Months Ended June 30,
		2014		2013		Increase (Decrease)
		(in millions)
Revenues	$	65.3	$	34.5	$	30.8
Cost of sales		45.5		22.8		22.7
Gross profit	19.8			11.7		8.1
Selling, general and administrative expenses (including research and development)		0.7		0.7		—
Loss related to plant closure		2.6		—		2.6
Other (gains) and losses		—		—		—
Operating income	$	16.5	$	11.0	$	5.5

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OMEGA PROTEIN CORPORATION

 Revenues.    Animal nutrition related revenues increased $30.8 million, or 89.4%, from $34.5 million for the three months ended June 30, 2013 to $65.3 million for the three months ended June 30, 2014. The increase in animal nutrition related revenues was primarily due to increased sales volumes for the Company’s fish meal and fish oil of 42.6% and 482.2%, respectively, and increased sales prices of 0.8% for the Company’s fish meal, partially offset by decreased sales prices of 37.1% for the Company’s fish oil. Considering fish meal, fish oil and fish solubles sales activities in total, the Company experienced approximately a $8.8 million increase in revenues due to the increase in sales prices and a $22.0 million increase in revenue caused by increased sales volumes, when comparing the three months ended June 30, 2014 and 2013. The increase in fish meal sales volumes for the three months ended June 30, 2014 is primarily due to the timing of contracts and increased available fish meal inventory from prior season production. The increase in fish oil sales volumes is primarily due to the timing of contracts and increased available fish oil inventory due to higher fish oil yields experienced in 2013 as compared to 2012. The decrease in fish oil sales prices is primarily due to a change in product mix related to a larger volume of unrefined fish oil sales during the three months ended June 30, 2014.

Cost of sales.    Animal nutrition related cost of sales, including depreciation and amortization, for the three months ended June 30, 2014 was $45.5 million, an increase of $22.7 million, or 99.7%, as compared to the three months ended June 30, 2013. Cost of sales as a percentage of revenues was 69.7% for the three months ended June 30, 2014 as compared to 66.1% for the three months ended June 30, 2013.  The increase in cost of sales as a percentage of revenues was primarily the result of increased cost per unit of sales of 7.4% during the three months ended June 30, 2014 as compared to the three months ended June 30, 2013.  The increase in cost per unit of sales during three months ended June 30, 2014 is due to product mix, as higher cost fish oil comprised a larger percentage of total sales volumes, and higher production costs. Unit costs for 2014 production, which comprised a modest portion of sales in the three months ended June 30, 2014, increased as compared to 2013 production as a result of a relatively low level of production to date in the Gulf of Mexico.

Gross profit.    Animal nutrition related gross profit increased $8.1 million, or 69.4%, from $11.7 million for the three months ended June 30, 2013 to $19.8 million for the three months ended June 30, 2014.  Gross profit as a percentage of revenue was 30.3% for the three months ended June 30, 2014 as compared to 33.9% for the three months ended June 30, 2013.  The decrease in gross profit as a percentage of revenue was primarily due to the increased cost per unit of sales as discussed above.  

Selling, general and administrative expenses.    Animal nutrition related selling, general and administrative expenses was $0.7 million for the three months ended June 30, 2014 and 2013.

Loss related to plant closure. As a result of the closing of the Cameron, Louisiana fish processing plant, the Company recognized an ongoing loss on closure of approximately $2.6 million during the three months ended June 30, 2014 related to the impairment of certain additional assets at the Cameron facility, the future use of which was previously uncertain, employee severances and other closure costs not related to future inventory production. The Company did not recognize losses related to this matter during the three months ended June 30, 2013.

Human Nutrition

		Three Months Ended June 30,
		2014			2013			Increase (Decrease)
		(in millions)
Revenues	$	6.7		$	7.3		$	(0.6	)
Cost of sales		6.0			5.7			0.3
Gross profit		0.7			1.6			(0.9	)
Selling, general and administrative expenses (including research and development)		2.1			1.8			0.3
Other (gains) and losses		—			—			—
Operating loss	$	(1.4	)	$	(0.2	)	$	(1.2	)

Revenues.    Human nutrition related revenues decreased $0.6 million, or 9.2%, from $7.3 million during the three months ended June 30, 2013 to $6.7 million during the three months ended June 30, 2014, due primarily to lower tolling revenues.  Omega-3 fish oil ingredients and tolling supplied $0.9 million of revenue (including $0.1 million from tolling) during the three months ended June 30, 2014 as compared to $1.6 million (including $0.6 million from tolling) for the three months ended June 30, 2013.  Protein products contributed $2.9 million of revenue during the three months ended June 30, 2014 as compared to $2.4 million for the three months ended June 30, 2013. Other nutraceutical ingredients provided $2.9 million of revenue during the three months ended June 30, 2014 as compared to $3.3 million during the three months ended June 30, 2013.

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Cost of sales.    Human nutrition cost of sales, including depreciation and amortization, for the three months ended June 30, 2014 was $6.0 million, a $0.3 million increase, or 5.0%, as compared to the three months ended June 30, 2013. Human nutrition cost of sales as a percentage of revenue increased from 77.9% for the three months ended June 30, 2013 to 90.1% for the three months ended June 30, 2014. Protein products cost of sales was $2.6 million for the three months ended June 30, 2014 as compared to $1.6 million during the three months ended June 30, 2013. Other nutraceutical ingredients cost of sales was $1.8 million during the three months ended June 30, 2014 as compared to $2.0 million for the three months ended June 30, 2013. Omega-3 fish oil ingredients and tolling cost of sales was $1.6 million during the three months ended June 30, 2014 as compared to $2.1 million for the three months ended June 30, 2013 due to decreased 3rd party tolling activity and the impact of increased costs absorbed by Omega-3 fish oil ingredients inventory production.

Gross profit.    Human nutrition gross profit decreased $0.9 million, or 59.4%, from $1.6 million for the three months ended June 30, 2013 to $0.7 million for the three months ended June 30, 2014. Gross profit as a percentage of revenue was 9.9% for the three months ended June 30, 2014 as compared to 22.1% for the three months ended June 30, 2013. The decrease in gross profit as a percentage of revenue was primarily due to increased raw material and other costs experienced by protein products and lower tolling revenues.

Selling, general and administrative expenses.    Human nutrition related selling, general and administrative expenses increased $0.3 million, or 11.1%, from $1.8 million for the three months ended June 30, 2013 to $2.1 million for the three months ended June 30, 2014.  The increase in selling, general and administrative expenses is primarily due to an increase in employee related expenses.

Unallocated

		Three Months Ended June 30,
		2014			2013			Increase (Decrease)
		(in millions)
Selling, general and administrative expenses (including research and development)	$	4.4		$	4.1		$	0.3
Operating loss	$	(4.4	)	$	(4.1	)	$	(0.3	)

Selling, general and administrative expenses (including research and development).    Unallocated selling, general and administrative expenses increased $0.3 million, or 7.2%, from $4.1 million for the three months ended June 30, 2013 to $4.4 million for the three months ended June 30, 2014.  The increase in selling, general and administrative expenses is primarily due to higher professional services expenses.

Other non-segmented results of operation

Interest expense.    Interest expense decreased $0.4 million from $0.5 million for the three months ended June 30, 2013 to $0.1 million for the three months ended June 30, 2014.  Capitalized interest, which offsets interest expense, was $0.2 million and $26,000 for the three months ended June 30, 2014 and 2013, respectively.

Provision for income taxes.    The Company recorded a $3.9 million provision for income taxes for the three months ended June 30, 2014 representing an effective tax rate of 36.9% for income taxes compared to 34.7% for the three months ended June 30, 2013.  The increase in the effective tax rate during the three months ended June 30, 2014 is due certain non-deductible expenses. The statutory tax rate of 35% for U.S. federal taxes was in effect for the three month periods ended June 30, 2014 and 2013.

Interim Results for the Six Months ended June 30, 2014 and June 30, 2013

Animal Nutrition

		Six Months Ended June 30,
		2014		2013		Increase (Decrease)
		(in millions)
Revenues	$	120.5	$	76.8	$	43.7
Cost of sales		81.6		53.9		27.7
Gross profit		38.9		22.9		16.0
Selling, general and administrative expenses (including research and development)		1.2		1.3		(0.1	)
Loss related to plant closure		3.9		—		3.9
Other (gains) and losses		0.1		0.4		(0.3	)
Operating income	$	33.7	$	21.2	$	12.5

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Revenues.    Animal nutrition related revenues increased $43.7 million, or 57.0%, from $76.8 million for the six months ended June 30, 2013 to $120.5 million for the six months ended June 30, 2014. The increase in animal nutrition related revenues was primarily due to increased sales volumes of 14.6% and 186.9% for the Company’s fish meal and fish oil, respectively, and increased sales prices of 7.6% for the Company’s fish meal, partially offset by decreased sales prices of 11.8% for the Company’s fish oil. Considering fish meal, fish oil and fish solubles sales activities in total, the Company experienced approximately a $10.3 million increase in revenues due to the increase in sales prices and a $33.4 million increase in revenues caused by increased sales volumes, when comparing the six months ended June 30, 2014 and 2013. The increase in fish meal sales volumes for the six months ended June 30, 2014 is primarily due to the timing of contracts and higher inventory volumes carried over from the prior fishing season. The increase in fish oil sales volumes is primarily due to the timing of contracts and increased available fish oil inventory due to higher fish oil yields experienced in 2013 and compared to 2012. The increase in fish meal sales prices for the six months ended June 30, 2014 is primarily due to sales made pursuant to contracts entered into during 2013 when fish meal prices were higher due to a decreased global supply of fish meal available for sale, particularly from South America, as compared to the six months ended June 30, 2013, when sales were made pursuant to contracts entered into during 2012. The decrease in fish oil sales prices is primarily due to a change in product mix related to the large volume of unrefined fish oil sales during the six months ended June 30, 2014.

Cost of sales.    Animal nutrition related cost of sales, including depreciation and amortization, for the six months ended June 30, 2014 was $81.6 million, an increase of $27.7 million, or 51.6%, as compared to the six months ended June 30, 2013. Cost of sales as a percentage of revenues was 67.8% for the six months ended June 30, 2014 as compared to 70.2% for the six months ended June 30, 2013. The decrease in cost of sales as a percentage of revenues was primarily the result of increased revenue per unit of 9.6%, partially offset by increased cost per unit of sales of 5.9% during the six months ended June 30, 2014 as compared to the six months ended June 30, 2013. The increase in revenue per unit is primarily due to fish meal sales prices as discussed above and a greater percentage of revenue related to fish oil sales volumes which generally have higher sales prices than fish meal. The increase in cost per unit of sales during the six months ended June 30, 2014 is primarily due to product mix as higher cost fish oil comprised a larger percentage of total sales volumes and beginning to sell 2014 inventory for which the current low level of production in the Gulf of Mexico is increasing the projected cost per unit.

Gross profit.    Animal nutrition related gross profit increased $16.0 million, or 69.6%, from $22.9 million for the six months ended June 30, 2013 to $38.9 million for the six months ended June 30, 2014. Gross profit as a percentage of revenue was 32.2% for the six months ended June 30, 2014 as compared to 29.8% for the six months ended June 30, 2013. The increase in gross profit as a percentage of revenue was primarily due to the increase in revenue per unit as discussed above.

Selling, general and administrative expenses.    Animal nutrition related selling, general and administrative expenses was consistent at $1.2 million and $1.3 million for the six months ended June 30, 2014 and 2013, respectively.

Loss related to plant closure. As a result of the closing of the Cameron, Louisiana fish processing plant, the Company recognized an ongoing loss on closure of approximately $3.9 million during the six months ended June 30, 2014 related to the impairment of certain additional assets at the Cameron facility, the future use of which was previously uncertain, employee severances and other closure costs not related to future inventory production. The Company did not recognize losses related to this matter during the six months ended June 30, 2013.

Other (gains) and losses.    The Company recorded animal nutrition related losses for the six months ended June 30, 2014 of $0.1 million. The Company recorded animal nutrition related losses for the six months ended June 30, 2013 of $0.4 million primarily relating to a $0.3 million reduction in an insurance receivable.

Human Nutrition

		Six Months Ended June 30,
		2014			2013			Increase (Decrease)
		(in millions)
Revenues	$	14.9		$	13.9		$	1.0
Cost of sales		12.8			11.4			1.4
Gross profit		2.1			2.5			(0.4	)
Selling, general and administrative expenses (including research and development)		4.0			3.2			0.8
Other (gains) and losses		0.2			—			0.2
Operating loss	$	(2.1	)	$	(0.7	)	$	(1.4	)

33

Revenues.    Human nutrition related revenues increased $1.0 million, or 7.0%, from $13.9 million for the six months ended June 30, 2013 to $14.9 million of revenue for the six months ended June 30, 2014. Protein products, which was acquired by the Company on February 27, 2013, contributed $5.9 million during the six months ended June 30, 2014 as compared to $3.3 million for the six months ended June 30, 2013. Other nutraceutical ingredients provided $6.6 million of revenue during the six months ended June 30, 2014 as compared to $7.4 million during the six months ended June 30, 2013. Omega-3 fish oil ingredients and tolling supplied $2.3 million of revenue (including $0.4 million from tolling) during the six months ended June 30, 2014 as compared to $3.2 million (including $1.2 million from tolling) for the six months ended June 30, 2013.

Cost of sales.    Human nutrition related cost of sales, including depreciation and amortization, for the six months ended June 30, 2014 was $12.8 million, a $1.4 million increase, or 12.1%, as compared to the six months ended June 30, 2013. Human nutrition related cost of sales as a percentage of revenue increased from 82.2% for the six months ended June 30, 2013 to 86.2% for the six months ended June 30, 2014. Protein products cost of sales was $5.3 million for the six months ended June 30, 2014 as compared to $2.2 million for the approximate four months that the business unit was owned during the six months ended June 30, 2013. Other nutraceutical ingredients cost of sales was $4.1 million during the six months ended June 30, 2014 as compared to $4.4 million for the six months ended June 30, 2013. Omega-3 fish oil ingredients and tolling cost of sales was $3.5 million during the six months ended June 30, 2014 as compared to $4.8 million for the six months ended June 30, 2013 due to decreased 3^rd party tolling activity and the impact of increased costs absorbed by Omega-3 fish oil ingredients inventory production.

Gross profit.    Human nutrition related gross profit decreased $0.4 million, or 17.0%, from $2.5 million for the six months ended June 30, 2013 to $2.1 million for the six months ended June 30, 2014. Gross profit as a percentage of revenue was 13.8% for the six months ended June 30, 2014 as compared to 17.8% for the six months ended June 30, 2013. The decrease in gross profit as a percentage of revenue was primarily due to increased raw material and other costs experienced by protein products.   

Selling, general and administrative expenses.    Human nutrition related selling, general and administrative expenses increased $0.8 million, or 26.3%, from $3.2 million for the six months ended June 30, 2013 to $4.0 million for the six months ended June 30, 2014. The increase in selling, general and administrative expenses is primarily due to the acquisition of WSP in February 2013.

Unallocated

		Six Months Ended June 30,
		2014			2013			Increase (Decrease)
		(in millions)
Selling, general and administrative expenses (including research and development)	$	8.5		$	9.1		$	(0.6	)
Operating loss	$	(8.5	)	$	(9.1	)	$	0.6

Selling, general and administrative expenses (including research and development).    Unallocated selling, general and administrative expenses decreased $0.6 million, or 7.4%, from $9.1 million for the six months ended June 30, 2013 to $8.5 million for the six months ended June 30, 2014. The decrease in selling, general and administrative expenses is primarily due to professional expenses including costs related to the acquisition of WSP on February 27, 2013.

Other non-segmented results of operation

Interest expense.    Interest expense was $0.4 million for the six months ended June 30, 2014 as compared to $0.9 million for the six months ended June 30, 2013. Capitalized interest, which offsets interest expense, was $0.4 million and $0.1 million for the six months ended June 30, 2014 and 2013, respectively.

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OMEGA PROTEIN CORPORATION

Provision for income taxes.    The Company recorded an $8.0 million provision for income taxes for the six months ended June 30, 2014 representing an effective tax rate of 35.3% for income taxes compared to 34.1% for the six months ended June 30, 2013. The increase in the effective tax rate during the six months ended June 30, 2014 is due to certain non-deductible expenses.The statutory tax rate of 35% for U.S. federal taxes was in effect for the six months ended June 30, 2014 and 2013.

Seasonal and Quarterly Results

Omega Protein’s menhaden harvesting and processing business is seasonal in nature. Omega Protein generally has higher sales during the third quarter of each fiscal year due to increased product availability and customer demand. Additionally, due to differences in gross profit margins for Omega Protein’s various products, any variation in the mix of product sales between quarters may result in significant variations of total gross profit margins. These margins may also be affected by changes in costs from year to year and month to month, which includes variations in production yields. Similarly, from time to time Omega Protein defers sales of inventory based on worldwide prices for competing products that affect prices for its products, which may affect comparable period comparisons. As a result, the Company’s quarterly operating results have fluctuated in the past and may fluctuate in the future.

Liquidity and Capital Resources

Historically, the Company’s primary sources of liquidity and capital resources have been cash flows from operations, bank credit facilities and term loans from various lenders provided pursuant to the U.S. Maritime Administration’s Fisheries Finance Program (“FFP”), which is offered through National Marine Fisheries Services (“NMFS”) under Title XI of the Marine Act of 1936 (“Title XI”). These sources of cash flows have been used for operations, capital expenditures, payment of long-term debt, the acquisitions of Cyvex, InCon and WSP, purchases of fish meal and fish oil and the purchase and retirement of shares of the Company’s common stock in 2006.

At June 30, 2014, the Company had an unrestricted cash balance of $40.2 million, an increase of $6.2 million from December 31, 2013. Omega Protein’s annual revenues and its resulting liquidity are highly dependent on annual fish catch, production yields, selling prices for its products and inventories available for sale.  Omega Protein’s average selling prices for its animal nutrition ingredients for six months ended June 30, 2014 were 2.0% higher for fish meal and 3.6% lower for crude fish oil than its average selling prices for the year ended December 31, 2013.  Additionally, Omega Protein’s average per unit cost of sales for its animal nutrition ingredients for six months ended June 30, 2014 were 4.8% and 2.9% higher for fish meal and crude fish oil, respectively, than its average per unit cost of sales for the year ended December 31, 2013.

The aggregate amount of the Company’s outstanding indebtedness as of June 30, 2014 was approximately $22.4 million compared to approximately $24.2 million as of December 31, 2013.  The Company has a moderately leveraged financial structure which could limit its financial flexibility.  In particular, the Company will be required to use a portion of its cash flows to pay principal and interest on its debt, which will reduce the amount of money the Company has for operations, capital expenditures, expansion, acquisitions or general corporate or other business activities.  In addition, the covenants contained in the Company’s debt agreements limit its ability to borrow money in the future for acquisitions, capital expenditures or to meet the Company’s operating expenses or other general corporate obligations. See “Item 1A. Risk Factors - The Company has a moderate amount of indebtedness, which may adversely affect its ability to operate its business, remain in compliance with debt covenants and make payments on its debt” in the Company’s 2013 Form 10-K.

As of June 30, 2014, the Company has contracted through energy swap derivatives or physical contracts a large portion of its estimated 2014 energy use.

Source of Capital: Operations

Net cash flow provided by operating activities increased from approximately $2.7 million for the six months ended June 30, 2013 to $29.7 million for the six months ended June 30, 2014. The increase in operating cash flow is primarily attributable to increased net income and changes in working capital, specifically inventory, driven by normal business operations. The Company began 2014 with a higher quantity of inventory, particularly fish oil inventory, as compared to the beginning of 2013.

Source of Capital: Debt

Net financing activities used cash of $0.5 million and provided cash of $2.3 million during the six months ended June 30, 2014 and 2013, respectively. The six months ended June 30, 2014 included $1.4 million in proceeds and tax effects received from stock options exercised, $0.1 million related to treasury stock repurchases and $1.9 million in debt principal payments. The six month period ended June 30, 2013 included $4.2 million in proceeds and tax effects received from stock options exercised and $1.9 million in debt and capital lease principal payments.

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OMEGA PROTEIN CORPORATION

In June 2011, pursuant to the Title XI program, the FFP approved a financing application made by the Company in the amount of $10.0 million (the “Approval Letter”) which expires on June 20, 2016. To date, the Company has not borrowed any amounts under the Approval Letter and its ability to do so may be adversely affected by an EPA notice that the Company’s Omega Protein subsidiary is ineligible, as a result of its previous convictions under the Clean Water Act, for receipt of government contracts or benefits in certain cases. See “Item 1A. Risk Factors - If our Omega Protein subsidiary fails to comply with the terms of its probation under a plea agreement entered into in June 2013, we could be subject to criminal prosecution” in the Company’s 2013 Form 10-K for further detail on this EPA notice. As of June 30, 2014, the Company had approximately $22.4 million of borrowings outstanding under Title XI and was in compliance with all of the covenants contained therein.

In March 2012, the Company entered into an Amended and Restated Loan Agreement (the “Loan Agreement”) with Wells Fargo Bank, National Association, as administrative agent (the “Agent”) for the lenders (currently Wells Fargo Bank, National Association and JP Morgan Chase Bank, N.A.) (collectively, the “Lenders”) pursuant to which the Lenders agreed to extend credit to the Company in the form of loans (each a “Loan” and collectively, the “Loans”) on a revolving basis of up to $60.0 million (the “Commitment”).

All Loans and all other obligations outstanding under the Loan Agreement are payable in full on March 21, 2017. As of June 30, 2014 and December 31, 2013, the Company had no amounts outstanding under the $60 million Loan Agreement and approximately $3.5 million in letters of credit. The Loan Agreement requires the Company to comply with various affirmative and negative covenants, including financial covenants regarding Tangible Net Worth, Asset Coverage Ratio and Adjusted Profitability.As of June 30, 2014, the Company was in compliance with all financial covenants under the Loan Agreement and expects to be in compliance during the next twelve months. The Company has no off-balance sheet arrangements other than normal operating leases and standby letters of credit.

The Company’s Loan Agreement is more fully explained in Note 12 to the consolidated financial statements in Item 8 of the Company’s Form 10-K for the fiscal year ended December 31, 2013.

Use of Capital: Operations

The Company’s investing activities consist mainly of acquisition costs and capital expenditures for equipment purchases, replacements, vessel refurbishments, plant expansions, and fish oil refining processes. Net investing activities, without acquisition activities, used cash of $23.1 million and $12.7 million for the six months ended June 30, 2014 and 2013, respectively. The Company made capital expenditures of approximately $23.3 million and $12.9 million, for the six months ended June 30, 2014 and 2013, respectively, including $0.4 million and $0.1 million, respectively, of capitalized interest and $12.5 million for the six months ended June 30, 2014 towards the expansion of its dairy protein production capabilities. The Company anticipates making an additional $15 million to $24 million in capital expenditures during the remainder of 2014 (inclusive of approximately $6 million for the expansion of its dairy protein production capabilities), excluding capitalized interest, primarily for the expansion and refurbishment of vessels and plant assets, regulatory and environmental requirements and for the repair of certain equipment. Additional investment opportunities or requirements may arise during the year, which could cause capital expenditures to exceed this range.

Use of Capital: Acquisitions

The Company from time to time considers potential transactions including, but not limited to, enhancement of physical facilities to improve production capabilities, the acquisition of other businesses and the repurchase of the Company’s common stock. Certain of the potential transactions reviewed by the Company would, if completed, result in its entering new lines of business, although historically, reviewed opportunities have been generally related in some manner to the Company’s existing operations or which have added new protein or other nutritional products or capabilities to the Company’s product lines. Depending on the size of the acquisition, the Company would expect to finance the transaction using internally generated cash flows and its current credit agreements, or, if necessary, equity or new debt financings. The Company cannot assure that such financings will be available on acceptable terms, if at all.

36

OMEGA PROTEIN CORPORATION

Use of Capital: Contractual Obligations

The following tables aggregate information about the Company’s contractual cash obligations and other commercial commitments (in thousands) as of June 30, 2014:

	Payments Due by Period
			Less than		1 to 3		4 to 5		After 5
Contractual Cash Obligations	Total		1 year		years		years		years
Long-term debt	$	22,391	$	2,564	$	5,514	$	5,659	$	8,654
Interest on long-term debt (1)		6,188		1,348		2,168		1,449		1,223
Operating lease obligations		10,186		2,633		3,750		3,106		697
Energy Commitment(2)		1,073		1,073		—		—		—
Pension funding (3)		6,637		1,965		2,815		1,330		527
Total Contractual Cash Obligations	$	46,475	$	9,583	$	14,247	$	11,544	$	11,101

(1) Consists primarily of contractual interest payments for U.S. government guaranteed obligations (Title XI loans) due in installments through 2025 at interest rates from 5.7% to 7.0%

(2) As of June 30, 2014 the Company had purchase commitments for energy usage in the normal course of business of approximately $1.1 million that will be delivered in quantities expected to be used in the normal course of business during the 2014 fishing season.

(3) Represents estimated future benefit payments based on the expected return on plan assets and assumptions regarding discount rates

The Company believes that the existing cash, cash equivalents, cash flow from operations and funds available through the Loan Agreement and/or Title XI indebtedness described above will be sufficient to meet its working capital and capital expenditure requirements through the next twelve months.

Available Information

The Company files annual, quarterly and current reports and other information with the SEC. The Company’s annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and amendments to these reports filed under the Securities and Exchange Act of 1934 (“Exchange Act”), as well as Section 16 filings by officers and directors, are available free of charge at the Company’s website at www.omegaprotein.com or at the SEC’s website at www.sec.gov and are posted as soon as reasonably practicable after they are filed with the SEC. The Company will provide a copy of these documents to stockholders upon request. Information on the Company’s website or any other website is not incorporated by reference into this report and does not constitute part of this report.

In addition, the public may read and copy any materials filed by the Company with the SEC at the SEC’s Public Reference Room at 100 F. Street, NE., Washington, DC 20549. The public may obtain information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330. The SEC maintains a website that contains reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC at www.sec.gov.

The Company’s Corporate Governance Guidelines, Code of Business Conduct and Ethics, Code of Ethics for Financial Professionals, as well as the Charters for the Board’s Audit Committee, Compensation Committee, Corporate Governance and Nominating Committee, are available at the Company’s website. These Guidelines, Codes and Charters are not incorporated by reference into this report and do not constitute part of this report. The Company will provide a copy of these documents to any stockholder upon request.

Item 3. Quantitative and Qualitative Disclosure About Market Risk.

The Company is exposed to market risk associated with diesel, natural gas, propane and potentially Bunker C fuel oil.  To partially mitigate this risk, the Company has forward purchased a portion of its expected diesel and natural gas usage for 2014. The Company is currently exposed to market risk associated with increases in diesel, natural gas, propane prices and potentially Bunker C fuel oil related to the portion not covered by swaps for 2014 or held in material and supplies inventory as of June 30, 2014.

37

OMEGA PROTEIN CORPORATION

Although the Company sells products in foreign countries, all of the Company’s revenues are billed and paid for in US dollars. As a result, management does not believe that the Company is exposed to any significant foreign country currency exchange risk, and the Company does not utilize market risk sensitive instruments to manage its exposure to this risk.

There have been no significant changes to the Company’s exposure to market risk since the Company’s 2013 Form 10-K.

Item 4.  Controls and Procedures.

(a) Evaluation of Disclosure Controls and Procedures

As of the end of the period covered by this report, the Company conducted an evaluation of the effectiveness of its “disclosure controls and procedures,” as that phrase is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934. The evaluation was carried out under the supervision and with the participation of management, including the Company’s Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”).

Based on and as of the date of that evaluation, the Company’s CEO and CFO have concluded that (i) the Company’s disclosure controls and procedures are designed to ensure that information required to be disclosed by the Company in the reports that the Company files or submits under the Securities Exchange Act of 1934, is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to the Company’s management, including the CEO and CFO, as appropriate to allow timely decisions regarding required disclosure, and (ii) that the Company’s disclosure controls and procedures are effective.

Notwithstanding the foregoing, there can be no assurance that the Company’s disclosure controls and procedures will detect or uncover all failures of persons within the Company and its consolidated subsidiaries to disclose material information otherwise required to be set forth in the Company’s periodic reports. There are inherent limitations to the effectiveness of any system of disclosure controls and procedures, including the possibility of human error and the circumvention or overriding of the controls and procedures.

(b) Changes in Internal Control over Financial Reporting

There were no changes in the Company’s internal control over financial reporting during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

PART II. OTHER INFORMATION

Item 1.  Legal Proceedings

The Company is defending various claims and litigation arising from operations in the ordinary course of the Company’s business. In the opinion of management, except as noted in the Company’s annual report on Form 10-K for the year ended December 31, 2013, any losses resulting from these matters will not have a material adverse effect on the Company’s results of operations, cash flows or financial position.

As previously disclosed, the Company has been named in a lawsuit filed in federal court in the Southern District of Mississippi in connection with the death of an employee at the Company’s Moss Point, Mississippi plant in April 2012. The lawsuit alleges that the Company intentionally caused the employee’s death, a claim that the Company emphatically denies. The Company believes that the claim is covered by the state’s workers compensation statute which provides that worker compensation benefits are the exclusive remedy for a work-related injury or death under these circumstances. The Company has filed a motion for summary judgment asking the court to dismiss the claim. If the court does not grant the Company’s motion, the case is currently set for trial in October 2014. The Company intends to contest the claim vigorously.

Item 1A.  Risk Factors

There have been no material changes from the risk factors previously disclosed in the Company’s Form 10-K for the fiscal year ended December 31, 2013.

Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds

None

38

OMEGA PROTEIN CORPORATION

Item 3.  Defaults Upon Senior Securities

None

Item 4. Mine Safety Disclosures

Not applicable

Item 5. Other Information

On July 28, 2014, an explosion occurred at the Company’s Moss Point, Mississippi fish processing facility in connection with a third party contractor’s work on a Company storage tank. One employee working for the contractor was killed in the explosion and three employees of the contractor were injured.  No Company employees were killed or injured.

Based on the Company's preliminary assessments, the Moss Point facility did not suffer any significant damage or loss of product inventory as a result of the incident, but the plant will not be operating until the completion of an ongoing on-site investigation and an inspection of the plant. The Company currently expects that the investigation and inspection could conclude by August 8, 2014, although it is possible that they could take longer.

Item 6. Exhibits

Exhibit No.	Description of Exhibit
10.1	Form of Restricted Stock Agreement for Outside Directors (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed with the Commission on June 23, 2014).
31.1	Rule 13a-14(a)/15d-14(a) Certification for Chief Executive Officer.
31.2	Rule 13a-14(a)/15d-14(a) Certification for Chief Financial Officer.
32.1	Section 1350 Certification for Chief Executive Officer. (Furnished, not filed)
32.2	Section 1350 Certification for Chief Financial Officer. (Furnished, not filed)
101.INS	XBRL Instance Document.
101.SCH	XBRL Taxonomy Extension Schema Document.
101.PRE	XBRL Taxonomy Presentation Linkbase Document.
101.LAB	XBRL Taxonomy Label Linkbase Document.
101.CAL	XBRL Taxonomy Calculation Linkbase Document.
101.DEF	XBRL Definition Linkbase Document.

39

OMEGA PROTEIN CORPORATION

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	OMEGA PROTEIN CORPORATION
	(Registrant)
August 6, 2014	By:	/s/ Andrew C. Johannesen
		Andrew C. Johannesen
		Executive Vice President, Chief Financial Officer

 40

EX-31

Exhibit 31.1

CERTIFICATION

I, Bret D. Scholtes, certify that:

1.     I have reviewed this quarterly report on Form 10-Q of Omega Protein Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)     Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)      Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)     Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)     Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a)     All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b)    Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: August 6, 2014	By:	/s/ BRET D. SCHOLTES
		Name: Bret D. Scholtes
		Title: President and Chief Executive Officer

EX-31

Exhibit 31.2

CERTIFICATION

I, Andrew J. Johannesen, certify that:

1.     I have reviewed this quarterly report on Form 10-Q of Omega Protein Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)     Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)      Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)     Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)     Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a)     All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b)    Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: August 6, 2014	By:	/s/ ANDREW J. JOHANNESEN
		Name: Andrew J. Johannesen
		Title: Executive Vice President and
		Chief Financial Officer

EX-32

Exhibit 32.1

Certification of Form 10-Q for the Quarter ended June 30, 2014, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

The undersigned Chief Executive Officer of Omega Protein Corporation, certifies, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

● the Quarterly Report on Form 10-Q for the quarter ended June 30, 2014 fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934, and

● the information contained in the Quarterly Report on Form 10-Q for the quarter ended June 30, 2014 fairly presents, in all material respects, the financial condition and results of operations of Omega Protein Corporation.

This certification is being furnished solely to comply with the requirements of Section 906 of the Sarbanes-Oxley Act of 2002 and is not being filed as a part of the Form 10-Q.

A signed original of this written statement required by Section 906 has been provided to Omega Protein Corporation and will be retained by Omega Protein Corporation and furnished to the Securities and Exchange Commission or its staff upon request.

Dated: August 6, 2014
	/s/ BRET D. SCHOLTES
	Bret D. Scholtes
	President and Chief Executive Officer

EX-32

Exhibit 32.2

Certification of Form 10-Q for the Quarter ended June 30, 2014, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

The undersigned Chief Financial Officer of Omega Protein Corporation, certifies, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

● the Quarterly Report on Form 10-Q for the quarter ended June 30, 2014 fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934, and

● the information contained in the Quarterly Report on Form 10-Q for the quarter ended June 30, 2014 fairly presents, in all material respects, the financial condition and results of operations of Omega Protein Corporation.

This certification is being furnished solely to comply with the requirements of Section 906 of the Sarbanes-Oxley Act of 2002 and is not being filed as a part of the Form 10-Q.

A signed original of this written statement required by Section 906 has been provided to Omega Protein Corporation and will be retained by Omega Protein Corporation and furnished to the Securities and Exchange Commission or its staff upon request.

Dated: August 6, 2014
	/s/ ANDREW J. JOHANNESEN
	Andrew J. Johannesen
	Executive Vice President and
	Chief Financial Officer

XML

Note 1 - Significant Accounting Policies Summary of Operations and Basis of Presentation (Details) (USD $)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013	Dec. 31, 2013	Dec. 31, 2012
Note 1 - Significant Accounting Policies Summary of Operations and Basis of Presentation (Details) [Line Items]
Number of Operating Segments			2
Derivative Asset, Current	$ 218,000		$ 218,000		$ 275,000
Deferred Tax Liabilities, Derivatives	77,000		77,000		96,000
Accumulated Other Comprehensive Income (Loss), Cumulative Changes in Net Gain (Loss) from Cash Flow Hedges, Effect Net of Tax	142,000	(78,000)	142,000	(78,000)	179,000	28,000
Accumulated Other Comprehensive Income Reclassified to Inventory Cost	100,000		100,000
Derivative Asset, Fair Value, Gross Asset	248,000		248,000		275,000
Derivative Asset, Fair Value, Gross Liability	29,000		29,000		0
Cost of Goods and Services Sold	51,489,000	28,494,000	94,496,000	65,320,000
Number of Reporting Units					2
Energy Swap [Member]
Note 1 - Significant Accounting Policies Summary of Operations and Basis of Presentation (Details) [Line Items]
Derivative Asset, Current	200,000		200,000		300,000
Deferred Tax Liabilities, Derivatives	100,000		100,000
Employee Stock Option [Member]
Note 1 - Significant Accounting Policies Summary of Operations and Basis of Presentation (Details) [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period			3 years
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period			10 years
Allocated Share-based Compensation Expense		200,000		300,000
Allocated Share-based Compensation Expense, Net of Tax		100,000		200,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized	0		0
Restricted Stock [Member] | Scenario, Forecast [Member]
Note 1 - Significant Accounting Policies Summary of Operations and Basis of Presentation (Details) [Line Items]
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized	900,000		900,000
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Net	600,000		600,000
Restricted Stock [Member] | Non-Employee Directors [Member]
Note 1 - Significant Accounting Policies Summary of Operations and Basis of Presentation (Details) [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period			6 months
Restricted Stock [Member]
Note 1 - Significant Accounting Policies Summary of Operations and Basis of Presentation (Details) [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period			3 years
Allocated Share-based Compensation Expense	400,000	300,000	700,000	500,000
Allocated Share-based Compensation Expense, Net of Tax	300,000	200,000	500,000	300,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized	2,000,000		2,000,000
Stock Issued During Period, Shares, Restricted Stock Award, Gross (in Shares)			117,885	25,000
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Net	1,300,000		1,300,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition			1 year
Performance Shares [Member] | Scenario, Forecast [Member]
Note 1 - Significant Accounting Policies Summary of Operations and Basis of Presentation (Details) [Line Items]
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized	300,000		300,000
Performance Shares [Member]
Note 1 - Significant Accounting Policies Summary of Operations and Basis of Presentation (Details) [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period			3 years
Allocated Share-based Compensation Expense	100,000		200,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized	1,400,000		1,400,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition			2 years 6 months
Unallocated Inventory and Net Change with Current Period Swap Transaction [Member]
Note 1 - Significant Accounting Policies Summary of Operations and Basis of Presentation (Details) [Line Items]
Accumulated Other Comprehensive Income (Loss), Cumulative Changes in Net Gain (Loss) from Cash Flow Hedges, Effect Net of Tax	(100,000)		(100,000)
Reclassification of Cash Flows From Investing Activities to Operating Activities Related to Accrued Capital Expenditures [Member]
Note 1 - Significant Accounting Policies Summary of Operations and Basis of Presentation (Details) [Line Items]
Prior Period Reclassification Adjustment				300,000
Animal Nutrition [Member]
Note 1 - Significant Accounting Policies Summary of Operations and Basis of Presentation (Details) [Line Items]
Number of Subsidiaries			2
Human Nutrition [Member]
Note 1 - Significant Accounting Policies Summary of Operations and Basis of Presentation (Details) [Line Items]
Number of Subsidiaries			3
Number of Reporting Units			2
Ineffective Portion of Diesel Energy Swaps [Member]
Note 1 - Significant Accounting Policies Summary of Operations and Basis of Presentation (Details) [Line Items]
Cost of Goods and Services Sold				$ 100,000

XML

Note 8 - Property, Plant, and Equipment (Details) (USD $)	3 Months Ended		6 Months Ended		1 Months Ended	3 Months Ended	6 Months Ended	7 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013	Dec. 31, 2013 Cameron, Louisiana Menhaden Processing Plant [Member]	Jun. 30, 2014 Cameron, Louisiana Menhaden Processing Plant [Member]	Jun. 30, 2014 Cameron, Louisiana Menhaden Processing Plant [Member]	Jun. 30, 2014 Cameron, Louisiana Menhaden Processing Plant [Member]
Note 8 - Property, Plant, and Equipment (Details) [Line Items]
Depreciation	$ 4,600,000	$ 4,700,000	$ 9,300,000	$ 9,300,000
Interest Costs Capitalized	200,000	26,000	400,000	100,000
Impairment of Long-Lived Assets to be Disposed of					$ 6,500,000	$ 1,647,000	$ 1,739,000	$ 6,535,000

XML

Note 4 - Receivables, Net (Details) - Receivables (USD $) In Thousands, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
Receivables [Abstract]
Trade	$ 29,106	$ 18,689
Insurance	1,718	1,806
Income tax	803	714
Other	40	310
Total accounts receivable	31,667	21,519
Less allowance for doubtful accounts	(363)	(379)
Receivables, net	$ 31,304	$ 21,140

XML

Note 15 - Industry Segments (Details) - Reported Segments (USD $) In Thousands, unless otherwise specified	3 Months Ended				6 Months Ended
	Jun. 30, 2014		Jun. 30, 2013		Jun. 30, 2014		Jun. 30, 2013		Dec. 31, 2013
Segment Reporting Information [Line Items]
Revenue	$ 71,913	[1]	$ 41,777	[2]	$ 135,413	[3]	$ 90,700	[4]
Cost of sales	51,489		28,494		94,496		65,320
Gross profit	20,424		13,283		40,917		25,380
Selling, general and administrative expenses (including research and development)	7,070		6,595		13,647		13,593
Other (gains) and losses	(14)		(2)		233		374
Operating income	10,752		6,690		23,098		11,413
Depreciation and amortization	5,118		5,276		10,335		10,253
Identifiable assets	342,306		308,325		342,306		308,325		331,394
Capital expenditures	10,453		6,184		23,268		12,897
Animal Nutrition [Member] | Plant Closure [Member]
Segment Reporting Information [Line Items]
Loss related to plant closure	2,616				3,939
Animal Nutrition [Member]
Segment Reporting Information [Line Items]
Revenue	65,264	[1]	34,453	[2]	120,534	[3]	76,790	[4]
Cost of sales	45,501		22,786		81,668		53,880
Gross profit	19,763		11,667		38,866		22,910
Selling, general and administrative expenses (including research and development)	636		662		1,189		1,290
Other (gains) and losses	(14)		(2)		42		374
Operating income	16,525		11,007		33,696		21,246
Depreciation and amortization	4,374		4,472		8,742		8,821
Identifiable assets	224,416		227,462		224,416		227,462
Capital expenditures	5,761		5,741		10,358		12,046
Human Nutrition [Member]
Segment Reporting Information [Line Items]
Revenue	6,649	[1]	7,324	[2],[5]	14,879	[3]	13,910	[4],[6]
Cost of sales	5,988		5,708	[5]	12,828		11,440	[6]
Gross profit	661		1,616	[5]	2,051		2,470	[6]
Selling, general and administrative expenses (including research and development)	2,067		1,861	[5]	3,988		3,157	[6]
Other (gains) and losses				[5]	191			[6]
Operating income	(1,406)		(245)	[5]	(2,128)		(687)	[6]
Depreciation and amortization	699		632	[5]	1,400		1,070	[6]
Identifiable assets	76,734		57,861	[5],[6]	76,734		57,861	[5],[6]
Capital expenditures	4,692		324	[5]	12,901		613	[6]
Unallocated [Member]
Segment Reporting Information [Line Items]
Revenue		[1]		[2]		[3]		[4]
Selling, general and administrative expenses (including research and development)	4,367		4,072		8,470		9,146
Operating income	(4,367)		(4,072)		(8,470)		(9,146)
Depreciation and amortization	45		172		193		362
Identifiable assets	41,156		23,002		41,156		23,002
Capital expenditures			119		9		238
Plant Closure [Member]
Segment Reporting Information [Line Items]
Loss related to plant closure	$ 2,616				$ 3,939

[1] Excludes revenue from internal customers of $0.7 million for fish oil that was transferred from the animal nutrition segment to the human nutrition segment at cost.

[2] Excludes revenue from internal customers of $0.4 million for fish oil that was transferred from the animal nutrition segment to the human nutrition segment at cost.

[3] Excludes revenue from internal customers of $1.4 million for fish oil that was transferred from the animal nutrition segment to thehuman nutrition segment at cost.

[4] Excludes revenue from internal customers of $1.0 million for fish oil that was transferred from the animal nutrition segment to thehuman nutrition segment at cost.

[5] Includes revenues and related expenses for WSP.

[6] Includes revenues and related expenses for WSP from February 27, 2013 through June 30, 2013.

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Note 8 - Property, Plant, and Equipment (Details) - Property, Plant, and Equipment (USD $) In Thousands, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
Property, Plant and Equipment [Line Items]
Property, Plant, and Equipment	$ 313,169	$ 292,476
Less accumulated depreciation and impairment	(158,738)	(148,363)
Property, plant and equipment, net	154,431	144,113
Land [Member]
Property, Plant and Equipment [Line Items]
Property, Plant, and Equipment	7,457	7,457
Equipment, Plant [Member]
Property, Plant and Equipment [Line Items]
Property, Plant, and Equipment	161,761	159,337
Property, Fishing Vessels [Member]
Property, Plant and Equipment [Line Items]
Property, Plant, and Equipment	110,452	101,745
Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Property, Plant, and Equipment	7,090	7,091
Construction in Progress [Member]
Property, Plant and Equipment [Line Items]
Property, Plant, and Equipment	$ 26,409	$ 16,846

XML

Note 2 - Acquisition of Wisconsin Specialty Protein, L.L.C. (Details) - Pro Forma Financial Information (Wisconsin Specialty Protein [Member], USD $) In Thousands, unless otherwise specified	4 Months Ended	6 Months Ended
	Jun. 30, 2013	Jun. 30, 2013
Wisconsin Specialty Protein [Member]
Note 2 - Acquisition of Wisconsin Specialty Protein, L.L.C. (Details) - Pro Forma Financial Information [Line Items]
Revenue	$ 3,254	$ 92,768
Net income (loss)	$ (37)	$ 6,838

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Note 10 - Notes Payable and Long-Term Debt (Tables)

6 Months Ended

Jun. 30, 2014

Disclosure Text Block [Abstract]

Schedule of Debt [Table Text Block]

	June 30,			December 31,
	2014			2013
	(in thousands)
U.S. government guaranteed obligations (Title XI loans) collateralized by a first lien on certain vessels and certain plant assets:
Amounts due in installments through 2025, interest from 5.7% to 7.0%	$	22,381		$	24,211
Amounts due in installments through 2014, interest at Eurodollar rates plus 0.5% (0.7% and 0.7% at June 30, 2014 and December 31, 2013, respectively)		10			31
Total debt		22,391			24,242
Less current maturities		(2,564	)		(3,112	)
Long-term debt	$	19,827		$	21,130

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Note 16 - Fair Value Disclosures (Details) - Table of Fair Value, Assets and Liabilities Accounted for on a Recurring Basis (USD $) In Thousands, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
Note 16 - Fair Value Disclosures (Details) - Table of Fair Value, Assets and Liabilities Accounted for on a Recurring Basis [Line Items]
Fair Value of derivative asset	$ 219	$ 275
Energy Swap [Member] | Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member]
Note 16 - Fair Value Disclosures (Details) - Table of Fair Value, Assets and Liabilities Accounted for on a Recurring Basis [Line Items]
Fair Value of derivative asset	0	0
Energy Swap [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member]
Note 16 - Fair Value Disclosures (Details) - Table of Fair Value, Assets and Liabilities Accounted for on a Recurring Basis [Line Items]
Fair Value of derivative asset	219	275
Energy Swap [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member]
Note 16 - Fair Value Disclosures (Details) - Table of Fair Value, Assets and Liabilities Accounted for on a Recurring Basis [Line Items]
Fair Value of derivative asset	0	0
Energy Swap [Member] | Fair Value, Measurements, Recurring [Member]
Note 16 - Fair Value Disclosures (Details) - Table of Fair Value, Assets and Liabilities Accounted for on a Recurring Basis [Line Items]
Fair Value of derivative asset	219	275
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member]
Note 16 - Fair Value Disclosures (Details) - Table of Fair Value, Assets and Liabilities Accounted for on a Recurring Basis [Line Items]
Fair Value of derivative asset	0	0
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member]
Note 16 - Fair Value Disclosures (Details) - Table of Fair Value, Assets and Liabilities Accounted for on a Recurring Basis [Line Items]
Fair Value of derivative asset	219	275
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member]
Note 16 - Fair Value Disclosures (Details) - Table of Fair Value, Assets and Liabilities Accounted for on a Recurring Basis [Line Items]
Fair Value of derivative asset	0	0
Fair Value, Measurements, Recurring [Member]
Note 16 - Fair Value Disclosures (Details) - Table of Fair Value, Assets and Liabilities Accounted for on a Recurring Basis [Line Items]
Fair Value of derivative asset	$ 219	$ 275

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Note 9 - Goodwill and Other Intangible Assets (Details) - Changes in Carrying Amount of Goodwill Resulting from Company's Acquisitions (USD $) In Thousands, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013	Feb. 28, 2013
Goodwill [Line Items]
January 1, 2014	$ 19,600	$ 19,600
June 30, 2014	19,600	19,600
Wisconsin Specialty Protein [Member]
Goodwill [Line Items]
January 1, 2014	11,614	11,614	11,614
June 30, 2014	11,614	11,614	11,614
Cyvex and Incon [Member]
Goodwill [Line Items]
January 1, 2014	7,986	7,986
June 30, 2014	$ 7,986	$ 7,986

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Note 15 - Industry Segments (Details) - A Reconciliation of Total Segment Operating Income to Total Earnings from Operations Before Income Taxes (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
A Reconciliation of Total Segment Operating Income to Total Earnings from Operations Before Income Taxes [Abstract]
Operating income for reportable segments	$ 10,752	$ 6,690	$ 23,098	$ 11,413
Interest income	5	2	13	10
Interest expense	(135)	(481)	(382)	(873)
Other expense, net	(118)	(98)	(174)	(181)
Income before income taxes	$ 10,504	$ 6,113	$ 22,555	$ 10,369

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Note 2 - Acquisition of Wisconsin Specialty Protein, L.L.C. (Tables) (Wisconsin Specialty Protein [Member])

6 Months Ended

Jun. 30, 2014

Wisconsin Specialty Protein [Member]

Note 2 - Acquisition of Wisconsin Specialty Protein, L.L.C. (Tables) [Line Items]

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block]

		(in thousands)
Cash	$	403
Other current assets, net including receivables, prepaid and inventory		2,515
Property, plant, and equipment, net		14,095
Identifiable intangible assets (a)		4,448
Liabilities assumed		(5,996	)
Total identifiable net assets		15,465
Goodwill		11,614
Total consideration	$	27,079

Business Acquisition, Pro Forma Information [Table Text Block]

	Revenue		Net income (loss)
	(in thousands)
WSP from February 27, 2013 – June 30, 2013	$	3,254	$	(37	)
2013 supplemental pro forma from January 1, 2013 – June 30, 2013	$	92,768	$	6,838

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Note 6 - Prepaid Expenses and Other Current Assets (Details) - Prepaid Expenses and Other Current Assets (USD $) In Thousands, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
Prepaid Expenses and Other Current Assets [Abstract]
Prepaid insurance	$ 4,561	$ 2,422
Selling expenses	193	869
Fair market value of energy swaps, current portion	218	275
Whey process filters	139	38
Leases	101	53
Other prepaids and expenses	370	258
Total prepaid expenses and other current assets	$ 5,582	$ 3,915

XML

Note 1 - Significant Accounting Policies Summary of Operations and Basis of Presentation (Details) - Gross Amounts, Gross Amounts Offset and Net Amounts of Assets Presented in Balance Sheet (USD $)	Jun. 30, 2014	Dec. 31, 2013
Gross Amounts, Gross Amounts Offset and Net Amounts of Assets Presented in Balance Sheet [Abstract]
Gross Amount of Recognized Assets (Liabilities)	$ 248,000	$ 275,000
Gross Amounts of Assets (Liabilities) Offset	(29,000)	0
Net Amounts of Assets (Liabilities) Presented in the Balance Sheet	$ 219,000	$ 275,000

XML

Note 15 - Industry Segments (Tables)

6 Months Ended

Jun. 30, 2014

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment [Table Text Block]

June 30, 2014	Animal Nutrition			Human Nutrition			Unallocated			Total
Revenue (1)	$	65,264		$	6,649		$	—		$	71,913
Cost of sales		45,501			5,988			—			51,489
Gross profit		19,763			661			—			20,424
Selling, general and administrative expenses (including research and development)		636			2,067			4,367			7,070
Loss related to plant closure		2,616			—			—			2,616
Other (gains) and losses		(14	)		—			—			(14	)
Operating income (loss)	$	16,525		$	(1,406	)	$	(4,367	)	$	10,752
Depreciation and amortization	$	4,374		$	699		$	45		$	5,118
Identifiable assets	$	224,416		$	76,734		$	41,156		$	342,306
Capital expenditures	$	5,761		$	4,692		$	—		$	10,453

June 30, 2013	Animal Nutrition			Human Nutrition(2)			Unallocated			Total
Revenue (3)	$	34,453		$	7,324		$	—		$	41,777
Cost of sales		22,786			5,708			—			28,494
Gross profit		11,667			1,616			—			13,283
Selling, general and administrative expenses (including research and development)		662			1,861			4,072			6,595
Other (gains) and losses		(2	)		—			—			(2	)
Operating income (loss)	$	11,007		$	(245	)	$	(4,072	)	$	6,690
Depreciation and amortization	$	4,472		$	632		$	172		$	5,276
Identifiable assets	$	227,462		$	57,861		$	23,002		$	308,325
Capital expenditures	$	5,741		$	324		$	119		$	6,184

June 30, 2014	Animal Nutrition		Human Nutrition			Unallocated			Total
Revenue (4)	$	120,534	$	14,879		$	—		$	135,413
Cost of sales		81,668		12,828			—			94,496
Gross profit		38,866		2,051			—			40,917
Selling, general and administrative expenses (including research and development)		1,189		3,988			8,470			13,647
Loss related to plant closure		3,939		—			—			3,939
Other (gains) and losses		42		191			—			233
Operating income (loss)	$	33,696	$	(2,128	)	$	(8,470	)	$	23,098
Depreciation and amortization	$	8,742	$	1,400		$	193		$	10,335
Identifiable assets	$	224,416	$	76,734		$	41,156		$	342,306
Capital expenditures	$	10,358	$	12,901		$	9		$	23,268

June 30, 2013	Animal Nutrition		Human Nutrition(5)			Unallocated			Total
Revenue (6)	$	76,790	$	13,910		$	—		$	90,700
Cost of sales		53,880		11,440			—			65,320
Gross profit		22,910		2,470			—			25,380
Selling, general and administrative expenses (including research and development)		1,290		3,157			9,146			13,593
Other (gains) and losses		374		—			—			374
Operating income (loss)	$	21,246	$	(687	)	$	(9,146	)	$	11,413
Depreciation and amortization	$	8,821	$	1,070		$	362		$	10,253
Identifiable assets	$	227,462	$	57,861		$	23,002		$	308,325
Capital expenditures	$	12,046	$	613		$	238		$	12,897

Reconciliation of Operating Income to Total Earnings Before Income Taxes [Table Text Block]

	Three Months Ended June 30,
	2014			2013
Operating income for reportable segments	$	10,752		$	6,690
Interest income		5			2
Interest expense		(135	)		(481	)
Other expense, net		(118	)		(98	)
Income before income taxes	$	10,504		$	6,113

	Six Months Ended June 30,
	2014			2013
Operating income for reportable segments	$	23,098		$	11,413
Interest income		13			10
Interest expense		(382	)		(873	)
Other expense, net		(174	)		(181	)
Income before income taxes	$	22,555		$	10,369

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Note 7 - Other Assets (Details) - Other Assets (USD $) In Thousands, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
Note 7 - Other Assets (Details) - Other Assets [Line Items]
Other Asset, Net	$ 2,815	$ 5,234
Insurance receivable	785	3,048
Property, Leased, Fishing Nets [Member]
Note 7 - Other Assets (Details) - Other Assets [Line Items]
Other Asset, Net	1,415	1,517
Title XI Debt Issuance Costs [Member]
Note 7 - Other Assets (Details) - Other Assets [Line Items]
Other Asset, Net	256	272
Other Debt Issuance Costs [Member]
Note 7 - Other Assets (Details) - Other Assets [Line Items]
Other Asset, Net	253	299
Deposits and Other [Member]
Note 7 - Other Assets (Details) - Other Assets [Line Items]
Other Asset, Net	$ 106	$ 98

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Note 14 - Components of Net Periodic Benefit Cost (Details) (USD $) In Millions, unless otherwise specified	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
Compensation and Retirement Disclosure [Abstract]
Pension Contributions	$ 0.8	$ 0.7
Defined Benefit Plans, Estimated Future Employer Contributions in Current Fiscal Year	$ 1.1

XML

Note 10 - Notes Payable and Long-Term Debt (Details) - Table of Long-Term Debt (USD $) In Thousands, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
Note 10 - Notes Payable and Long-Term Debt (Details) - Table of Long-Term Debt [Line Items]
Long-term debt gross	$ 22,391	$ 24,242
Less current maturities	(2,564)	(3,112)
Long-term debt	19,827	21,130
Installments Through 2025 [Member]
Note 10 - Notes Payable and Long-Term Debt (Details) - Table of Long-Term Debt [Line Items]
Long-term debt gross	22,381	24,211
Installments Through 2014 [Member]
Note 10 - Notes Payable and Long-Term Debt (Details) - Table of Long-Term Debt [Line Items]
Long-term debt gross	$ 10	$ 31

XML

Note 3 - Plant Closure (Details) - Charges Incurred in Conjunction with Plant Closure (Cameron, Louisiana Menhaden Processing Plant [Member], USD $) In Thousands, unless otherwise specified	1 Months Ended	3 Months Ended	6 Months Ended	7 Months Ended
	Dec. 31, 2013	Jun. 30, 2014	Jun. 30, 2014	Jun. 30, 2014
Cameron, Louisiana Menhaden Processing Plant [Member]
Note 3 - Plant Closure (Details) - Charges Incurred in Conjunction with Plant Closure [Line Items]
Impairment of property, plant and equipment	$ 6,500	$ 1,647	$ 1,739	$ 6,535
Write-off material and supplies inventory			17	114
Employee severance costs		26	240	585
Estimated decommissioning costs				250
Other ongoing closure costs not attributable to future production		943	1,943	3,052
Total loss related to plant closure		$ 2,616	$ 3,939	$ 10,536

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Note 3 - Plant Closure

6 Months Ended

Jun. 30, 2014

Disposal Groups Plant Closure Disclsoure [Abstract]

Disposal Groups Plant Closure Disclsoure [Text Block]

NOTE 3. PLANT CLOSURE

In December 2013, the Company effectively closed its menhaden fish processing plant located in Cameron, Louisiana and re-deployed certain vessels from that facility to the Company’s other Gulf Coast facilities located in Abbeville, Louisiana and Moss Point, Mississippi. In conjunction with the closure, the following charges were incurred in the Company’s consolidated statements of comprehensive income for the three and six months ended June 30, 2014 and cumulative to date:

		Three Months Ended June 30, 2014		Six Months Ended June 30, 2014		Cumulative to Date
		(in thousands)
Impairment of property, plant and equipment	$	1,647	$	1,739	$	6,535
Write-off material and supplies inventory		—		17		114
Employee severance costs		26		240		585
Estimated decommissioning costs		—		—		250
Other ongoing closure costs not attributable to future production		943		1,943		3,052
Total loss related to plant closure	$	2,616	$	3,939	$	10,536

In addition to the above recognized losses, the Company expects that it may have additional losses related to additional impairment of property, plant and equipment, ongoing employee severance expenses and ongoing costs not attributable to future production such as clean-up and disassembly.

XML

Note 10 - Notes Payable and Long-Term Debt (Details) - Table of Long-Term Debt (Parentheticals)	6 Months Ended	12 Months Ended
	Jun. 30, 2014	Dec. 31, 2013
Installments Through 2025 [Member] | Minimum [Member]
Note 10 - Notes Payable and Long-Term Debt (Details) - Table of Long-Term Debt (Parentheticals) [Line Items]
Interest Rate	5.70%	5.70%
Installments Through 2025 [Member] | Maximum [Member]
Note 10 - Notes Payable and Long-Term Debt (Details) - Table of Long-Term Debt (Parentheticals) [Line Items]
Interest Rate	7.00%	7.00%
Installments Through 2014 [Member] | Eurodollar [Member]
Note 10 - Notes Payable and Long-Term Debt (Details) - Table of Long-Term Debt (Parentheticals) [Line Items]
Eurodollar Rates Plus	0.50%	0.50%
Installments Through 2014 [Member]
Note 10 - Notes Payable and Long-Term Debt (Details) - Table of Long-Term Debt (Parentheticals) [Line Items]
Interest Rate	0.70%	0.70%

XML

Note 1 - Significant Accounting Policies Summary of Operations and Basis of Presentation (Details) - Changes in Accumulated Other Comprehensive Loss (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014		Jun. 30, 2013
Changes in Accumulated Other Comprehensive Loss [Abstract]
Balance as of			$ 179		$ 28
Balance as of			(6,387)		(9,952)
Balance as of			(6,208)		(9,924)
Other comprehensive income			53		(90)
Other comprehensive income			53		(90)
Amounts reclassified from accumulated other comprehensive loss			(90)	[1]	(16)	[1]
Amounts reclassified from accumulated other comprehensive loss			297	[2]	502	[2]
Amounts reclassified from accumulated other comprehensive loss			207		486
Net current-period other comprehensive income	(19)	(363)	(37)		(106)
Net current-period other comprehensive income	148	251	297		502
Net current-period other comprehensive income			260		396
Balance as of	142	(78)	142		(78)
Balance as of	(6,090)	(9,450)	(6,090)		(9,450)
Balance as of	$ (5,948)	$ (9,528)	$ (5,948)		$ (9,528)

[1] This accumulated other comprehensive income component is reclassified to the unallocated inventory cost pool in the period when the energy consumption takes place.

[2] This accumulated other comprehensive income component is included in the computation of net periodic pension costs as amortization of actuarial loss which are explained in more detail in Note 16 to the consolidated financial statements in Item 8 of the Company's Form 10-K for the fiscal year ended December 31, 2013.

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Note 6 - Prepaid Expenses and Other Current Assets (Tables)

6 Months Ended

Jun. 30, 2014

Disclosure Text Block Supplement [Abstract]

Schedule of Other Current Assets [Table Text Block]

	June 30, 2014		December 31, 2013
	(in thousands)
Prepaid insurance	$	4,561	$	2,422
Selling expenses		193		869
Fair market value of energy swaps, current portion		218		275
Whey process filters		139		38
Leases		101		53
Other prepaids and expenses		370		258
Total prepaid expenses and other current assets	$	5,582	$	3,915

XML

Note 5 - Inventory (Tables)

6 Months Ended

Jun. 30, 2014

Inventory Disclosure [Abstract]

Schedule of Inventory, Current [Table Text Block]

		June 30,2014		December 31, 2013		June 30, 2013
		(in thousands)
Fish meal	$	17,577	$	30,119	$	16,176
Fish oil		14,271		41,081		23,312
Fish solubles		1,252		2,599		1,055
Nutraceutical products		4,862		3,650		3,828
Dairy protein products		2,332		1,355		1,520
Unallocated inventory cost pool (including off-season costs)		30,293		6,655		26,658
Other materials and supplies		9,273		8,880		10,795
Total inventory	$	79,860	$	94,339	$	83,344

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Note 9 - Goodwill and Other Intangible Assets (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013	Dec. 31, 2013
Goodwill and Intangible Assets Disclosure [Abstract]
Number of Reporting Units					2
Amortization of Intangible Assets	$ 0.2	$ 0.2	$ 0.3	$ 0.3

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Note 2 - Acquisition of Wisconsin Specialty Protein, L.L.C. (Details) (Wisconsin Specialty Protein [Member], USD $) In Millions, unless otherwise specified	1 Months Ended
	Feb. 28, 2013
Note 2 - Acquisition of Wisconsin Specialty Protein, L.L.C. (Details) [Line Items]
Business Acquisition, Percentage of Voting Interests Acquired	100.00%
Business Acquisition, Transaction Costs	$ 0.8
Equity Purchase Price [Member]
Note 2 - Acquisition of Wisconsin Specialty Protein, L.L.C. (Details) [Line Items]
Payments to Acquire Businesses, Gross	26.5
Estimated Working Capital [Member]
Note 2 - Acquisition of Wisconsin Specialty Protein, L.L.C. (Details) [Line Items]
Payments to Acquire Businesses, Gross	$ 0.6

XML

Note 7 - Other Assets (Tables)

6 Months Ended

Jun. 30, 2014

Disclosure Text Block Supplement [Abstract]

Schedule of Other Assets [Table Text Block]

		June 30, 2014		December 31, 2013
		(in thousands)
Fish nets, net of accumulated amortization of $2,034 and $2,610	$	1,415	$	1,517
Insurance receivable		785		3,048
Title XI debt issuance costs		256		272
Other debt issuance costs		253		299
Deposits and other		106		98
Total other assets, net	$	2,815	$	5,234

XML

Note 8 - Property, Plant, and Equipment (Tables)

6 Months Ended

Jun. 30, 2014

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment [Table Text Block]

		June 30, 2014			December 31, 2013
		(in thousands)
Land	$	7,457		$	7,457
Plant assets		161,761			159,337
Fishing vessels		110,452			101,745
Furniture and fixtures		7,090			7,091
Construction in progress		26,409			16,846
Total property and equipment		313,169			292,476
Less accumulated depreciation and impairment		(158,738	)		(148,363	)
Property, plant and equipment, net	$	154,431		$	144,113

XML

Note 2 - Acquisition of Wisconsin Specialty Protein, L.L.C. (Wisconsin Specialty Protein [Member])

6 Months Ended

Jun. 30, 2014

Wisconsin Specialty Protein [Member]

Note 2 - Acquisition of Wisconsin Specialty Protein, L.L.C. [Line Items]

Mergers, Acquisitions and Dispositions Disclosures [Text Block]

NOTE 2. ACQUISITION OF WISCONSIN SPECIALTY PROTEIN, L.L.C.

A. Description of the Transaction

In February 2013, the Company acquired 100% of the outstanding equity interest of WSP, a Wisconsin limited liability company, in a cash transaction pursuant to the terms of an agreement and plan of merger. WSP is now a wholly owned subsidiary of the Company. WSP produces a variety of value-added whey protein ingredients for the food and nutritional supplement industries, including organic and other specialty protein products, using processes applicable to a variety of nutritional dairy ingredients. WSP is included as part of the Company’s human nutrition segment.

B. Recording of Assets Acquired and Liabilities Assumed

The Company paid an aggregate cash purchase price for the equity of WSP of $26.5 million plus $0.6 million representing WSP’s excess working capital on the closing date and reimbursable capital expenditures, utilizing cash on hand.

The Company incurred approximately $0.8 million in pretax transaction costs directly related to the acquisition that were expensed and included in selling, general and administrative expenses in the consolidated statement of comprehensive income for the year ended December 31, 2013. The acquisition costs consisted primarily of legal, advisory, valuation, and other consulting fees. The transaction has been accounted for using the acquisition method of accounting which requires, among other things, that all assets acquired and liabilities assumed from acquisitions be recognized at their fair values as of the acquisition date. Any excess of the purchase price over the fair values of the net assets acquired are recorded as goodwill.

		(in thousands)
Cash	$	403
Other current assets, net including receivables, prepaid and inventory		2,515
Property, plant, and equipment, net		14,095
Identifiable intangible assets (a)		4,448
Liabilities assumed		(5,996	)
Total identifiable net assets		15,465
Goodwill		11,614
Total consideration	$	27,079

(a) See Note 9 – Goodwill and Other Intangible Assets for weighted average lives.

Goodwill is calculated as the excess of the consideration transferred over the net assets recognized and represents the future economic benefits arising from other assets acquired that could not be individually identified and separately recognized. Specifically, the goodwill recorded as part of the acquisition of WSP includes the following:

● the expected synergies and other benefits that the Company believes will result from combining the operations of WSP with the operations of Nutegrity, the Company’s human nutrition segment,

● any intangible assets that do not qualify for separate recognition, and

● the value of the going-concern element of WSP’s existing business (the higher rate of return on the assembled collection of net assets versus if the Company had acquired all of the net assets separately).

The Company does not amortize goodwill or indefinite-lived intangible assets but performs tests for impairment annually, or when indications of potential impairment exist, utilizing a fair value approach at the reporting unit level. See Note 9 - Goodwill and Other Intangible Assets, for more information about goodwill and other intangible assets.

C. Unaudited Pro Forma Financial Information

     The unaudited financial information in the table below summarizes the combined results of operations of the Company and WSP on a pro forma basis, as though the companies had been combined as of January 1, 2013. The pro forma financial information is presented for informational purposes only and is not indicative of the results of operations that would have been achieved if the acquisition had actually taken place on January 1, 2013 and is not intended to be a projection of future results or trends.

	Revenue		Net income (loss)
	(in thousands)
WSP from February 27, 2013 – June 30, 2013	$	3,254	$	(37	)
2013 supplemental pro forma from January 1, 2013 – June 30, 2013	$	92,768	$	6,838

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Note 9 - Goodwill and Other Intangible Assets (Tables)

6 Months Ended

Jun. 30, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill [Table Text Block]

	WSP		Cyvex and Incon		Total
January 1, 2014	$	11,614		7,986	$	19,600
Acquisitions		—		—		—
June 30, 2014	$	11,614		7,986	$	19,600

Schedule of Intangible Assets other than Goodwill [Table Text Block]

	June 30, 2014			December 31, 2013			Weighted Average Life (years)
Carrying value of intangible assets subject to amortization:
Customer relationships and non-competes	$	5,930		$	5,930
Less accumulated amortization		(949	)		(613	)		10
Total intangible assets subject to amortization, net	$	4,981		$	5,317
Indefinite life intangible assets – trade names/secrets and other		2,615			2,615
Total intangible assets	$	7,596		$	7,932

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block]

Remainder of 2014	$	329
2015		655
2016		654
2017		654
Thereafter		2,689
Total estimated future amortization expense	$	4,981

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Note 1 - Significant Accounting Policies Summary of Operations and Basis of Presentation (Details) - Energy Swap Balances (USD $) In Thousands, unless otherwise specified			6 Months Ended	12 Months Ended	6 Months Ended		12 Months Ended	6 Months Ended
	Jun. 30, 2014	Dec. 31, 2013	Jun. 30, 2014 NYMEX Heating Oil Swap [Member] July to November, 2014 [Member]	Dec. 31, 2013 NYMEX Heating Oil Swap [Member] October to November, 2013 [Member]	Jun. 30, 2014 NYMEX Natural Gas Swap [Member] July to October, 2014 [Member]	Jun. 30, 2014 NYMEX Natural Gas Swap [Member] April to October, 2015 [Member]	Dec. 31, 2013 NYMEX Natural Gas Swap [Member] April to October, 2014 [Member]	Jun. 30, 2014 Natural Gas Liquids Swap [Member] July to November, 2014 [Member]
Derivative [Line Items]
Quantity			1,440,569 Gallons	998,700 Gallons	223,750 MMBTUs	114,000 MMBTUs	307,374 MMBTUs	583,000 Gallons
Price Per Unit (in Dollars per Item)			2.92	2.88	3.79	4.09	3.67	1.09
Energy Swap Asset/(Liability)	$ 219	$ 275	$ 94	$ 132	$ 143		$ 143	$ (18)
Deferred Tax Asset/(Liability)	$ (77)	$ (96)	$ (33)	$ (46)	$ (50)		$ (50)	$ 6

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Note 7 - Other Assets (Details) - Other Assets (Parentheticals) (Property, Leased, Fishing Nets [Member], USD $) In Thousands, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
Property, Leased, Fishing Nets [Member]
Note 7 - Other Assets (Details) - Other Assets (Parentheticals) [Line Items]
Fish nets, accumulated amortization	$ 2,034	$ 2,610

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Note 16 - Fair Value Disclosures (Details) - Table of Long-Term Debt, Carrying Value and Fair Value (USD $) In Thousands, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
Table of Long-Term Debt, Carrying Value and Fair Value [Abstract]
Carrying Value	$ 22,391	$ 24,242
Estimated Fair Value	$ 23,791	$ 25,285

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Unaudited Condensed Consolidated Balance Sheet (USD $) In Thousands, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
Current assets:
Cash and cash equivalents	$ 40,214	$ 34,059
Receivables, net	31,304	21,140
Inventories	79,860	94,339
Deferred tax asset, net	904	1,062
Prepaid expenses and other current assets	5,582	3,915
Total current assets	157,864	154,515
Other assets, net	2,815	5,234
Property, plant and equipment, net	154,431	144,113
Goodwill	19,600	19,600
Other intangible assets, net	7,596	7,932
Total assets	342,306	331,394
Current liabilities:
Current maturities of long-term debt	2,564	3,112
Accounts payable	4,074	5,380
Accrued liabilities	25,910	29,145
Total current liabilities	32,548	37,637
Long-term debt, net of current maturities	19,827	21,130
Deferred tax liability, net	20,375	19,351
Pension liabilities, net	3,246	4,117
Other long-term liabilities	2,142	1,929
Total liabilities	78,138	84,164
Commitments and contingencies
Preferred stock, $0.01 par value; 10,000,000 authorized shares; none issued	0	0
Common Stock, $0.01 par value; 80,000,000 authorized shares; 21,099,066 and 20,804,189 shares issued and 21,094,443 and 20,804,189 shares outstanding at June 30, 2014 and December 31, 2013, respectively	205	203
Capital in excess of par value	138,557	136,428
Retained earnings	131,411	116,807
Treasury stock, at cost – 4,623 shares	(57)
Accumulated other comprehensive loss	(5,948)	(6,208)
Total stockholders’ equity	264,168	247,230
Total liabilities and stockholders’ equity	$ 342,306	$ 331,394

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Note 2 - Acquisition of Wisconsin Specialty Protein, L.L.C. (Details) - Fair Value of the Wisconsin Specialty Protein Assets and Acquired Liabilities Assumed (USD $) In Thousands, unless otherwise specified	1 Months Ended
	Feb. 28, 2013		Jun. 30, 2014	Dec. 31, 2013
Note 2 - Acquisition of Wisconsin Specialty Protein, L.L.C. (Details) - Fair Value of the Wisconsin Specialty Protein Assets and Acquired Liabilities Assumed [Line Items]
Goodwill			$ 19,600	$ 19,600
Wisconsin Specialty Protein [Member]
Note 2 - Acquisition of Wisconsin Specialty Protein, L.L.C. (Details) - Fair Value of the Wisconsin Specialty Protein Assets and Acquired Liabilities Assumed [Line Items]
Cash	403
Other current assets, net including receivables, prepaid and inventory	2,515
Property, plant, and equipment, net	14,095
Identifiable intangible assets (a)	4,448	[1]
Liabilities assumed	(5,996)
Total identifiable net assets	15,465
Goodwill	11,614		11,614	11,614
Total consideration	$ 27,079

[1] See Note 9 - Goodwill and Other Intangible Assets for weighted average lives.

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Unaudited Condensed Consolidated Statement of Cash Flows (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
Cash flows from operating activities:
Net income	$ 14,604	$ 6,835
Depreciation and amortization	10,335	10,253
Provisions for losses on receivables	24	24
Share based compensation	944	891
Deferred income taxes	1,110	1,409
Changes in assets and liabilities:
Receivables	(10,188)	(2,671)
Inventories	14,271	(15,763)
Prepaid expenses and other current assets	(1,724)	(1,515)
Other assets	1,679	5,874
Accounts payable	(1,306)	(301)
Accrued liabilities	(1,718)	(2,536)
Pension liability, net	(482)	(246)
Other long term liabilities	(2)	30
Net cash provided by operating activities	29,736	2,658
Cash flows from investing activities:
Proceeds from disposition of assets	193	161
Capital expenditures	(23,268)	(12,897)
Net cash used in investing activities	(23,075)	(39,515)
Cash flows from financing activities:
Principal payments of long-term debt	(1,851)	(1,569)
Principal payments of capital lease obligation		(309)
Purchase treasury stock at cost	(57)
Proceeds from stock options exercised	946	3,048
Excess tax benefit of stock options exercised	456	1,147
Net cash provided by (used in) financing activities	(506)	2,317
Net increase (decrease) in cash and cash equivalents	6,155	(34,540)
Cash and cash equivalents at beginning of year	34,059	55,998
Cash and cash equivalents at end of period	40,214	21,458
Wisconsin Specialty Protein [Member]
Cash flows from investing activities:
Acquisition of Wisconsin Specialty Protein, net of cash acquired		(26,779)
Plant Closure [Member]
Cash flows from operating activities:
Loss on plant closure	1,956
Loss (gain) on disposal of assets	3,939
Disposal of Assets [Member]
Cash flows from operating activities:
Loss (gain) on disposal of assets	$ 233	$ 374

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Note 9 - Goodwill and Other Intangible Assets (Details) - Table of Future Amortization Expense (USD $) In Thousands, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
Table of Future Amortization Expense [Abstract]
Remainder of 2014	$ 329
2015	655
2016	654
2017	654
Thereafter	2,689
Total estimated future amortization expense	$ 4,981	$ 5,317

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Note 13 - Reconciliation of Basic and Diluted Per Share Data (Tables)

6 Months Ended

Jun. 30, 2014

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

Three Months Ended June 30:	2014				2013
Allocation of earnings:
Net income	$	6,633			$	3,990
Income allocated to participating securities		(171	)			(88	)
Income allocated to common shares outstanding	$	6,462			$	3,902
Weighted average common shares outstanding		20,428				19,779
Basic earnings per share				0.32				0.20
Stock options assumed exercised		677				802
Weighted average diluted common shares and potential common share equivalents outstanding		21,105				20,581
Diluted earnings per share				0.31				0.19

Six Months Ended June 30:	2014				2013
Allocation of earnings:
Net income	$	14,604			$	6,835
Income allocated to participating securities		(364	)			(149	)
Income allocated to common shares outstanding	$	14,240			$	6,686
Weighted average common shares outstanding		20,392				19,623
Basic earnings per share				0.70				0.34
Stock options assumed exercised		670				776
Weighted average diluted common shares and potential common share equivalents outstanding		21,062				20,399
Diluted earnings per share				0.68				0.33

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block]

Three Months Ended June 30,				Six Months Ended June 30,
2014		2013		2014		2013
	130		135		130		1,311

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Note 13 - Reconciliation of Basic and Diluted Per Share Data (Details) - Reconciliation of Basic and Diluted Per Share Data (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Allocation of earnings:
Net income	$ 6,633	$ 3,990	$ 14,604	$ 6,835
Income allocated to participating securities	(171)	(88)	(364)	(149)
Income allocated to common shares outstanding	$ 6,462	$ 3,902	$ 14,240	$ 6,686
Weighted average common shares outstanding	20,428	19,779	20,392	19,623
Basic earnings per share	$ 0.32	$ 0.20	$ 0.70	$ 0.34
Stock options assumed exercised	677	802	670	776
Weighted average diluted common shares and potential common share equivalents outstanding	21,105	20,581	21,062	20,399
Diluted earnings per share	$ 0.31	$ 0.19	$ 0.68	$ 0.33

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Note 16 - Fair Value Disclosures

6 Months Ended

Jun. 30, 2014

Fair Value Disclosures [Abstract]

Fair Value Disclosures [Text Block]

NOTE 16. FAIR VALUE DISCLOSURES

The following disclosures of the estimated fair value of financial instruments are made in accordance with the requirements of FASB ASC 825-10-50, Disclosure About Fair Value of Financial Instruments. The estimated fair value amounts have been determined by the Company using available market information and appropriate valuation methodologies.

The carrying values and respective fair values of the Company’s long-term debt are presented below (in thousands). The fair value of the Company’s long-term debt is estimated based on the quoted market prices available to the Company for issuance of similar debt with similar terms at June 30, 2014 and December 31, 2013.

	June 30,		December 31,
	2014		2013
Long-term Debt (Level 2):
Carrying Value	$	22,391	$	24,242
Estimated Fair Value	$	23,791	$	25,285

The following tables set forth by level within the fair value hierarchy the Company's financial assets and liabilities that were accounted for at fair value on a recurring basis as of June 30, 2014 and December 31, 2013. As required by FASB ASC 820-10, financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The Company's assessment of the significance of a particular input to the fair value measurement requires judgment, and may affect the valuation of fair value assets and liabilities and their placement within the fair value hierarchy levels.

	June 30, 2014
	Fair Value Measurements Using						Assets
	Level 1		Level 2		Level 3			(Liabilities) at Fair Value
Assets (Liabilities) (in thousands)
Energy swap	$	—	$	219	$	—	$	219
Total Assets (Liabilities)	$	—	$	219	$	—	$	219

	December 31, 2013
	Fair Value Measurements Using						Assets
	Level 1		Level 2		Level 3			(Liabilities) at Fair Value
Assets (Liabilities) (in thousands)
Energy swap	$	—	$	275	$	—	$	275
Total Assets (Liabilities)	$	—	$	275	$	—	$	275

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Note 14 - Components of Net Periodic Benefit Cost (Tables)

6 Months Ended

Jun. 30, 2014

Compensation and Retirement Disclosure [Abstract]

Schedule of Net Benefit Costs [Table Text Block]

	Three Months Ended June 30,						Six Months Ended June 30,
	2014			2013			2014			2013
	(in thousands)						(in thousands)
Service cost	$	—		$	—		$	—		$	—
Interest cost		274			248			548			496
Expected return on plan assets		(298	)		(253	)		(596	)		(506	)
Amortization of prior service costs		—			—			—			—
Amortization of net loss		229			386			458			772
Net periodic pension cost	$	205		$	381		$	410		$	762

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Note 1 - Significant Accounting Policies Summary of Operations and Basis of Presentation (Tables)

6 Months Ended

Jun. 30, 2014

Note 1 - Significant Accounting Policies Summary of Operations and Basis of Presentation (Tables) [Line Items]

Schedule of Changes in Accumulated Other Comprehensive Loss, Net of Tax [Table Text Block]

	Three Months Ended June 30,						Six Months Ended June 30,
	2014			2013			2014			2013
Beginning balance	$	161		$	285		$	179		$	28
Net (gain) loss, net of tax, reclassified to unallocated inventory cost pool		(90	)		(16	)		(90	)		(16	)
Net change associated with current period swap transactions, net of tax		71			(347	)		53			(90	)
Ending balance	$	142		$	(78	)	$	142		$	(78	)

Offsetting Assets And Liabilities [Table Text Block]

As of June 30, 2014 (in thousands)	Gross Amounts of Recognized Assets (Liabilities)		Gross Amounts of Assets (Liabilities) Offset			Net Amounts of Assets (Liabilities) Presented in the Balance Sheet
Energy swap derivatives – asset position	$	248	$	(29	)	$	219

As of December 31, 2013 (in thousands)	Gross Amounts of Recognized Assets (Liabilities)		Gross Amounts of Assets (Liabilities) Offset		Net Amounts of Assets (Liabilities) Presented in the Balance Sheet
Energy swap derivatives – asset position	$	275	$	-	$	275

Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block]

	Gains and Losses On Cash Flow Hedges				Defined Benefit Pension Items				Total
Beginning balance December 31, 2013	$	179			$	(6,387	)		$	(6,208	)
Other comprehensive loss before reclassifications		53				—				53
Amounts reclassified from accumulated other comprehensive loss		(90	)	(a)		297		(b)		207
Net current-period other comprehensive income		(37	)			297				260
Ending balance June 30, 2014	$	142			$	(6,090	)		$	(5,948	)

	Gains and Losses On Cash Flow Hedges				Defined Benefit Pension Items				Total
Beginning balance December 31, 2012	$	28			$	(9,952	)		$	(9,924	)
Other comprehensive loss before reclassifications		(90	)			—				(90	)
Amounts reclassified from accumulated other comprehensive loss		(16	)	(a)		502		(b)		486
Net current-period other comprehensive income		(106	)			502				396
Ending balance June 30, 2013	$	(78	)		$	(9,450	)		$	(9,528	)

Energy Swap [Member]

Note 1 - Significant Accounting Policies Summary of Operations and Basis of Presentation (Tables) [Line Items]

Schedule of Derivative Instruments [Table Text Block]

					(in thousands)
Energy Swap	Consumption Period	Quantity	Price Per Unit		Energy Swap Asset/(Liability) as of June 30, 2014			Deferred Tax Asset/(Liability) as of June 30, 2014
Diesel - NYMEX Heating Oil Swap	July – Nov., 2014	1,440,569 Gallons	$	2.92	$	94		$	(33	)
Natural Gas - NYMEX Natural Gas Swap	July – Oct., 2014	223,750 MMBTUs	$	3.79		143			(50	)
Propane – Natural Gas Liquids Swap	July – Nov., 2014	583,000 Gallons	$	1.09		(18	)		6
Natural Gas - NYMEX Natural Gas Swap	Apr. – Oct., 2015	114,000 MMBTUs	$	4.09		—			—
					$	219		$	(77	)

					(in thousands)
Energy Swap	Consumption  Period	Quantity	Price Per Unit		Energy Swap  Asset/(Liability) as of December 31, 2013		Deferred Tax  Asset/(Liability) as of December 31, 2013
Diesel - NYMEX Heating Oil Swap	Oct. – Nov., 2013	998,700 Gallons	$	2.88	$	132	$	(46	)
Natural Gas - NYMEX Natural Gas Swap	Apr. – Oct., 2014	307,374 MMBTUs	$	3.67		143		(50	)
					$	275	$	(96	)

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Note 14 - Components of Net Periodic Benefit Cost (Details) - Summary of Components of Net Periodic Benefit Cost (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Summary of Components of Net Periodic Benefit Cost [Abstract]
Interest cost	$ 274	$ 248	$ 548	$ 496
Expected return on plan assets	(298)	(253)	(596)	(506)
Amortization of net loss	229	386	458	772
Net periodic pension cost	$ 205	$ 381	$ 410	$ 762

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Note 1 - Significant Accounting Policies Summary of Operations and Basis of Presentation

6 Months Ended

Jun. 30, 2014

Accounting Policies [Abstract]

Significant Accounting Policies [Text Block]

NOTE 1. SIGNIFICANT ACCOUNTING POLICIES

 SUMMARY OF OPERATIONS AND BASIS OF PRESENTATION

Business Description

Omega Protein Corporation (the “Company”) is a nutritional company that develops, produces and delivers healthy products throughout the world to improve the nutritional integrity of functional foods, dietary supplements and animal feeds. The Company operates through two industry segments: animal nutrition and human nutrition.

The animal nutrition segment is comprised primarily of two subsidiaries: Omega Protein, Inc. (“Omega Protein”) and Omega Shipyard, Inc. (“Omega Shipyard”). Omega Protein, the Company’s principal operating subsidiary, is the successor to a business conducted since 1913. Omega Protein produces and markets a variety of products produced from menhaden (a herring-like species of fish found in commercial quantities in the U.S. coastal waters of the Atlantic Ocean and Gulf of Mexico), including regular grade and value-added specialty fish meals, crude and refined fish oils and fish solubles. Omega Protein’s fish meal products are primarily used as a protein ingredient in animal feed for swine, aquaculture and household pets. Fish oil is utilized primarily for animal and aquaculture feeds, as well as additives to human food products and dietary supplements. Omega Protein’s fish solubles are sold primarily to livestock feed manufacturers, aquaculture feed manufacturers and for use as an organic fertilizer. Omega Protein’s business is seasonal in nature and generally has higher revenues during the third quarter of each fiscal year. A portion of Omega Protein’s production is transferred to the human nutrition segment where it is further processed and sold. Omega Shipyard owns and operates a drydock facility in Moss Point, Mississippi that is used to provide shoreside maintenance for Omega Protein’s fishing fleet and, subject to outside demand and excess capacity, occasionally for third-party vessels.

The human nutrition segment, which operates under the name Nutegrity, has three primary product lines: protein products, Omega-3 fish oil ingredients and other nutraceutical ingredients. Nutegrity is comprised primarily of three subsidiaries: Cyvex Nutrition, Inc. (“Cyvex”), InCon Processing, L.L.C. (“InCon”) and Wisconsin Specialty Protein, L.L.C. (“WSP”). Cyvex, acquired by the Company in December 2010, is located in Irvine, California and participates in the nutraceutical industry as an ingredient provider. InCon, acquired by the Company in September 2011, is located in Batavia, Illinois and is a specialty processor that utilizes molecular distillation technology to concentrate Omega-3 fish oils and, subject to outside demand and excess capacity, a variety of other compound products for third-party tolling customers. WSP, acquired by the Company in February 2013, is a manufacturer and marketer of specialty dairy and other protein products headquartered in Madison, Wisconsin and operates a production facility in Reedsburg, Wisconsin. See Note 2 – Acquisition of Wisconsin Specialty Protein, L.L.C. for additional information related to the Company’s acquisition of WSP.

Basis of Presentation

These interim financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information, the instructions to Quarterly Report on Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, certain information and footnote disclosures normally provided have been omitted. The interim financial statements should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2013. The year end condensed balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America.

In the opinion of management the accompanying unaudited condensed consolidated financial statements reflect all adjustments (consisting only of normal recurring adjustments) necessary for a fair statement of the Company’s consolidated financial position as of June 30, 2014, and the results of its operations for the three month and six month periods ended June 30, 2014 and 2013 and its cash flows for the six month periods ended June 30, 2014 and 2013. Quarterly operating results are not necessarily indicative of the results that may be expected for the year ending December 31, 2014.

Consolidation

The consolidated financial statements include the accounts of Omega Protein Corporation and its wholly owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation.

Financial Statement Preparation

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the Company’s financial statements and the accompanying notes and the reported amounts of revenues and expenses during the reporting period. Actual amounts, when available, could differ from those estimates and those differences could have a material effect on the financial statements.

Certain amounts applicable to the prior periods have been reclassified to conform to the classifications currently followed. For the six months ended June 30, 2013, the Company reclassified $0.3 million of cash flows from investing activities to cash flows from operating activities related to accrued capital expenditures.  This revision was not considered to be material, individually or in the aggregate, to previously issued financial statements. The revisions had no effect on the results of operations (net or comprehensive income) or financial condition (stockholders’ equity).  

Revenue Recognition

The Company derives revenue principally from the sales of a variety of protein and oil products derived from menhaden. In addition and as a result of its acquisitions of Cyvex, InCon and WSP, the Company’s revenues also include sales of dietary supplement ingredients to the nutraceutical industry and whey protein products to the food and nutritional supplement industries. The Company recognizes revenue for the sale of its products when price is established, collectability is reasonably assured and risk and rewards of ownership of its products and title are transferred to the customer.

Shipping and Handling

Amounts billed to customers associated with shipping and handling are included in revenues and the related costs are included in cost of sales.

Inventories

During the off-seasons, in connection with the upcoming fishing seasons, Omega Protein incurs costs (e.g., plant and vessel related labor, utilities, rent, repairs, and depreciation) that are directly related to Omega Protein’s infrastructure. These costs accumulate in inventory and are applied as elements of the cost of production of Omega Protein’s products throughout the fishing season ratably based on Omega Protein’s monthly units of production and the expected total units of production for the season.

Any costs incurred during abnormal downtime related to activity at Omega Protein’s plants are charged to expense as incurred.

Energy Swap Agreements

The Company does not enter into financial instruments for trading or speculative purposes. Omega Protein enters into energy swap agreements to manage portions of its cash flow exposure related to the volatility of natural gas, diesel and fuel oil energy prices for its fish meal and fish oil production operations. The swaps effectively fix pricing for the quantities listed below during the consumption periods.

					(in thousands)
Energy Swap	Consumption Period	Quantity	Price Per Unit		Energy Swap Asset/(Liability) as of June 30, 2014			Deferred Tax Asset/(Liability) as of June 30, 2014
Diesel - NYMEX Heating Oil Swap	July – Nov., 2014	1,440,569 Gallons	$	2.92	$	94		$	(33	)
Natural Gas - NYMEX Natural Gas Swap	July – Oct., 2014	223,750 MMBTUs	$	3.79		143			(50	)
Propane – Natural Gas Liquids Swap	July – Nov., 2014	583,000 Gallons	$	1.09		(18	)		6
Natural Gas - NYMEX Natural Gas Swap	Apr. – Oct., 2015	114,000 MMBTUs	$	4.09		—			—
					$	219		$	(77	)

					(in thousands)
Energy Swap	Consumption  Period	Quantity	Price Per Unit		Energy Swap  Asset/(Liability) as of December 31, 2013		Deferred Tax  Asset/(Liability) as of December 31, 2013
Diesel - NYMEX Heating Oil Swap	Oct. – Nov., 2013	998,700 Gallons	$	2.88	$	132	$	(46	)
Natural Gas - NYMEX Natural Gas Swap	Apr. – Oct., 2014	307,374 MMBTUs	$	3.67		143		(50	)
					$	275	$	(96	)

As of June 30, 2014 and December 31, 2013, Omega Protein has recorded a current asset in prepaid expenses of $0.2 and $0.3, million, respectively, to recognize the fair value of energy swap derivatives, and has also recorded a deferred tax liability of $0.1 million associated therewith. The effective portion of the change in fair value from inception to June 30, 2014 is recorded in “accumulated other comprehensive loss” in the Company’s consolidated financial statements. The following table illustrates the changes recorded, net of tax, in accumulated other comprehensive loss resulting from the energy swap agreements (in thousands).

	Three Months Ended June 30,						Six Months Ended June 30,
	2014			2013			2014			2013
Beginning balance	$	161		$	285		$	179		$	28
Net (gain) loss, net of tax, reclassified to unallocated inventory cost pool		(90	)		(16	)		(90	)		(16	)
Net change associated with current period swap transactions, net of tax		71			(347	)		53			(90	)
Ending balance	$	142		$	(78	)	$	142		$	(78	)

The $0.1 million reported in accumulated other comprehensive loss as of June 30, 2014 will be reclassified to inventory in the period when the energy consumption takes place. The amount to be reclassified, net of taxes, during the next 12 months is expected to be approximately $0.1 million.

The aggregate fair value of derivative instruments in gross asset positions as of June 30, 2014 and December 31, 2013 was $0.2 and $0.3 million. These amounts represent the maximum exposure to loss at the reporting date as a result of all of the counterparties failing to perform as contracted. This exposure could be reduced by up to $29,000 and $0, respectively, of liabilities included in master netting arrangements with those same counterparties.

As of June 30, 2014 (in thousands)	Gross Amounts of Recognized Assets (Liabilities)		Gross Amounts of Assets (Liabilities) Offset			Net Amounts of Assets (Liabilities) Presented in the Balance Sheet
Energy swap derivatives – asset position	$	248	$	(29	)	$	219

As of December 31, 2013 (in thousands)	Gross Amounts of Recognized Assets (Liabilities)		Gross Amounts of Assets (Liabilities) Offset		Net Amounts of Assets (Liabilities) Presented in the Balance Sheet
Energy swap derivatives – asset position	$	275	$	-	$	275

If, at any time, the swaps are determined to be ineffective, in whole or in part, due to changes in the Company’s energy usage or underlying hedge agreements or assumptions, the fair value of the portion of the energy swaps determined to be ineffective will be recognized as a gain or loss in cost of sales for the applicable period. For the six months ended June 30, 2013, the Company included an expense of $0.1 million in cost of sales resulting from transactions associated with the ineffectiveness of diesel energy swaps. See Note 16 – Fair Value Disclosures for additional information.

Plant Closure

Property, plant and equipment impairments related to the Cameron, Louisiana plant are made in accordance with the impairment of long-lived assets policy. Employee severance related charges have been recognized to the extent that the amount is probable, measurable and no-future service is expected or for those still employed, recognized pro-rata over the remaining service period. Ongoing clean-up and dismantlement costs will be recognized as incurred unless obligated and measureable by a contractual commitment. See Note 3 – Plant Closure for additional information related to the charges incurred.   

Acquisitions, Goodwill and Other Intangible Assets

All of the Company’s goodwill and other intangible assets are the result of acquisitions in the human nutrition segment. This segment is comprised of two reporting units, 1) InCon and Cyvex and 2) WSP. The Company has recorded goodwill and certain other identifiable intangible assets that are more fully explained in Note 2 – Acquisition of Wisconsin Specialty Protein, L.L.C. and Note 9 – Goodwill and Other Intangible Assets.

Accumulated Other Comprehensive Loss

The components of accumulated other comprehensive (loss) gain, net of tax, included in stockholders’ equity are as follows:

Changes in Accumulated Other Comprehensive Loss by Component 

For the Six Months Ended June 30, 2014 (in thousands)

	Gains and Losses On Cash Flow Hedges				Defined Benefit Pension Items				Total
Beginning balance December 31, 2013	$	179			$	(6,387	)		$	(6,208	)
Other comprehensive loss before reclassifications		53				—				53
Amounts reclassified from accumulated other comprehensive loss		(90	)	(a)		297		(b)		207
Net current-period other comprehensive income		(37	)			297				260
Ending balance June 30, 2014	$	142			$	(6,090	)		$	(5,948	)

Changes in Accumulated Other Comprehensive Loss by Component

For the Six Months Ended June 30, 2013 (in thousands)

	Gains and Losses On Cash Flow Hedges				Defined Benefit Pension Items				Total
Beginning balance December 31, 2012	$	28			$	(9,952	)		$	(9,924	)
Other comprehensive loss before reclassifications		(90	)			—				(90	)
Amounts reclassified from accumulated other comprehensive loss		(16	)	(a)		502		(b)		486
Net current-period other comprehensive income		(106	)			502				396
Ending balance June 30, 2013	$	(78	)		$	(9,450	)		$	(9,528	)

(a)	This accumulated other comprehensive income component is reclassified to the unallocated inventory cost pool in the period when the energy consumption takes place.
(b)	This accumulated other comprehensive income component is included in the computation of net periodic pension costs as amortization of actuarial loss which are explained in more detail in Note 16 to the consolidated financial statements in Item 8 of the Company’s Form 10-K for the fiscal year ended December 31, 2013.

Recently Issued Accounting Standards

In May 2014, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers.  This ASU amends the existing accounting standards for revenue recognition and is based on the principle that revenue should be recognized to depict the transfer of goods or services to a customer at an amount that reflects the consideration a company expects to receive in exchange for those goods or services.  The Company is required to adopt this ASU on January 1, 2017.  The Company does not expect this ASU to have a material impact on its Company’s consolidated results of operations, financial position and related disclosures.

In April 2014, the FASB issued ASU No. 2014-08 that changes the criteria for determining which disposals can be presented as discontinued operations and modifies related disclosure requirements. Under the new guidance, a discontinued operation is defined as a disposal of a component or group of components that is disposed of or is classified as held for sale and represents a strategic shift that has or will have a major effect on an entity's operations and financial results. The new standard is effective in annual periods beginning on or after December 15, 2014 with early adoption permitted. The guidance applies prospectively to new disposals and new classifications of disposal groups as held for sale after the effective date. The Company’s adoption of FASB ASU No. 2014-08 is not expected to impact on the Company’s consolidated results of operations, financial position and related disclosures.

In July 2013, the FASB issued ASU No. 2013-11 which amended the Income Taxes Topic of the Accounting Standards Codification to eliminate a diversity in practice for the presentation of unrecognized tax benefits when net operating loss carryforwards, similar tax losses or tax credit carryforwards exist. The amendment requires that the unrecognized tax benefit be presented as a reduction of the deferred tax assets associated with the carryforwards except in certain circumstances when it would be reflected as a liability. This guidance is effective for annual periods and interim periods within those annual periods beginning after December 15, 2013. The Company’s adoption of FASB ASU No. 2013-11 effective January 1, 2014 did not have an impact on the Company’s consolidated results of operations, financial position and related disclosures.

Stock-Based Compensation

Stock Options 

The Company has a stock-based compensation plan, which is described in more detail in Note 16 to the consolidated financial statements in Item 8 of the Company’s Form 10-K for the fiscal year ended December 31, 2013. The Company has issued non-qualified stock options under its stock incentive plans. The options generally vested in equal installments over three years and expire in ten years.

Net income for the three months ended June 30, 2013 includes $0.2 million ($0.1 million after-tax), respectively, of stock-based compensation costs related to stock options. Net income for the six months ended June 30, 2013 includes $0.3 million ($0.2 million after-tax), respectively, of stock-based compensation costs related to stock options. The stock-based compensation costs related to stock options are recorded primarily in selling, general and administrative expenses in the unaudited condensed consolidated statement of comprehensive income. As of June 30, 2014 there was $0 of unrecognized compensation costs related to non-vested stock options that is expected to be recognized during the remainder of fiscal year 2014.

Restricted Stock 

The Company has issued shares of restricted stock under the 2006 Incentive Plan. Shares of restricted stock generally vest on the third anniversary of the grant date or in equal installments over three years except for shares of restricted stock granted to non-employee directors which vest six months after the grant date. Non-vested shares are generally forfeited upon the termination of employment or service as a director. Holders of shares of restricted stock are entitled to all rights of a stockholder of the Company, including the right to vote the shares and receive any dividends or other distributions. The non-vested shares are considered participating securities and the Company has calculated earnings per share using the two-class method. See Note 13 – Reconciliation of Basic and Diluted Per Share Data.

During the six month periods ended June 30, 2014 and 2013, the Company issued 117,885 and 25,000 shares of restricted stock, respectively, under the 2006 Incentive Plan to employees and non-employee directors. The Company’s compensation expense related to restricted stock, which is primarily reflected in selling, general and administrative expenses in the unaudited condensed consolidated statement of comprehensive income, was approximately $0.4 million and $0.3 million ($0.3 million and $0.2 million after tax) for the three months ended June 30, 2014 and 2013, respectively. The Company’s compensation expense related to restricted stock was approximately $0.7 million and $0.5 million ($0.5 million and $0.3 million after tax) for the six months ended June 30, 2014 and 2013, respectively. As of June 30, 2014, there was approximately $2.0 million ($1.3 million after tax) of unrecognized compensation expense related to non-vested restricted stock that is expected to be recognized over a weighted-average period of 1.0 years, of which $0.9 million ($0.6 million after-tax) of compensation expense is expected to be recognized during the remainder of fiscal year 2014.

Performance Units 

On February 6, 2014, the Company adopted a cash incentive performance unit plan. The value of the units will be determined by reference to the performance of the Company’s common stock during the relevant performance period compared to the performance of the Russell 2000 Index member companies (the “Peer Group”) during that same period. One third of the Performance Units granted will be earned at the end of each calendar year of the performance period and will be valued for the calendar year based on the Total Shareholder Return (“TSR”) of the Company compared to the TSR of the Peer Group. The performance units contain a service provision of approximately 3 years and are liability-classified awards included in other long-term liabilities which are adjusted to fair value on a quarterly basis.

The Company’s compensation expense related to performance units was approximately $0.1 million and $0.2 million for the three and six months ended June 30, 2014, respectively, which is primarily reflected in selling, general and administrative expenses in the unaudited condensed consolidated statement of comprehensive income. As of June 30, 2014, there was approximately $1.4 million of unrecognized compensation cost related to performance units that is expected to be recognized over the next 2.5 years, of which $0.3 million of compensation expense is expected to be recognized during the remainder of fiscal year 2014.

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Unaudited Condensed Consolidated Balance Sheet (Parentheticals) (USD $)	Jun. 30, 2014	Dec. 31, 2013
Preferred stock par value (in Dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Common Stock, par value (in Dollars per share)	$ 0.01	$ 0.01
Common Stock, shares authorized	80,000,000	80,000,000
Common Stock, shares issued	21,099,066	20,804,189
Common Stock, shares outstanding	21,094,443	20,804,189
Treasury stock, shares	4,623

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Note 11 - Accrued Liabilities

6 Months Ended

Jun. 30, 2014

Disclosure Text Block Supplement [Abstract]

Accounts Payable, Accrued Liabilities, and Other Liabilities Disclosure, Current [Text Block]

NOTE 11. ACCRUED LIABILITIES

Accrued liabilities as of June 30, 2014 and December 31, 2013 are summarized as follows:

	June 30,		December 31,
	2014		2013
	(in thousands)
Insurance	$	5,405	$	7,222
Reserve for plant closure costs		478		595
Salary and benefits		9,240		9,423
Trade creditors		6,825		5,100
Taxes, other than income tax		1,035		64
Income tax		1,427		4,132
Deferred revenue		1,147		2,362
Accrued interest		190		200
Other		163		47
Total accrued liabilities	$	25,910	$	29,145

As of June 30, 2014 and December 31, 2013, deferred revenue represents payments primarily received from international customers related to revenues which were not recognized until the subsequent period due to revenue recognition criteria.

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Document And Entity Information	6 Months Ended
	Jun. 30, 2014	Jul. 31, 2014
Document and Entity Information [Abstract]
Entity Registrant Name	Omega Protein Corp
Document Type	10-Q
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		21,090,048
Amendment Flag	false
Entity Central Index Key	0001053650
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Accelerated Filer
Entity Well-known Seasoned Issuer	No
Document Period End Date	Jun. 30, 2014
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	Q2

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Note 12 - Commitments And Contingencies

6 Months Ended

Jun. 30, 2014

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies Disclosure [Text Block]

NOTE 12. COMMITMENTS AND CONTINGENCIES

InCon Contingency

In September 2011, the Company acquired all of the outstanding equity of InCon in a cash transaction pursuant to the terms of an equity purchase agreement. The equity of InCon was indirectly held by four individuals (the “Sellers”), some of whom continue to be employed by InCon and share in the management of InCon’s business. InCon is now a wholly owned subsidiary of the Company.

In addition to the acquisition date cash purchase price, the Sellers may also earn additional amounts based on the annual EBITDA of InCon’s toll processing and specialty product business during calendar years 2012 through 2016. The Company and the Sellers amended the earn-out terms on April 25, 2013 by lowering the earn-out by 35% of the original formula in 2013 and all future years. The annual earn-out provisions (as amended) are determined based on a percentage of InCon’s EBITDA, adjusted for certain product sales and costs, which percentage ranges from 3.25% of the first $3.0 million of EBITDA to 19.5% of EBITDA in excess of $12.0 million.

The annual earn-out payments, if any, will be estimated on a quarterly basis and paid subsequent to year end. The Company will record the estimated contractual obligation as compensation expense during each year as it is deemed probable that such amount will be payable. In addition, the earn-out payments are subject to certain reductions associated with future InCon capital expenditures and forfeitures based on termination of employment of a Seller. For the six months ended June 30, 2014 and year ended December 31, 2013, the Company has not recorded an annual earn-out estimate.

Legal Contingencies

The Company has been named in a lawsuit filed in federal court in the Southern District of Mississippi in connection with the death of an employee at the Company’s Moss Point, Mississippi plant in April 2012. The lawsuit alleges that the Company intentionally caused the employee’s death, a claim that the Company emphatically denies. The Company believes that the claim is covered by the state’s workers compensation statute which provides that worker compensation benefits are the exclusive remedy for a work-related injury or death under these circumstances. The Company has filed a motion for summary judgment asking the court to dismiss the claim. If the court does not grant the Company’s motion, the case is currently set for trial in October 2014. The Company intends to contest the claim vigorously.

Regulatory Matters

The Company is subject to various possible claims and lawsuits regarding environmental matters. Management believes that costs, if any, related to these matters will not have a material adverse effect on the results of operations, cash flows or financial position of the Company.

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Unaudited Condensed Consolidated Statement of Comprehensive Income (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended				6 Months Ended
	Jun. 30, 2014		Jun. 30, 2013		Jun. 30, 2014		Jun. 30, 2013
Revenues	$ 71,913	[1]	$ 41,777	[2]	$ 135,413	[3]	$ 90,700	[4]
Cost of sales	51,489		28,494		94,496		65,320
Gross profit	20,424		13,283		40,917		25,380
Selling, general, and administrative expense	6,526		6,030		12,619		12,473
Research and development expense	544		565		1,028		1,120
Operating income	10,752		6,690		23,098		11,413
Interest income	5		2		13		10
Interest expense	(135)		(481)		(382)		(873)
Other expense, net	(118)		(98)		(174)		(181)
Income before income taxes	10,504		6,113		22,555		10,369
Provision for income taxes	3,871		2,123		7,951		3,534
Net income	6,633		3,990		14,604		6,835
Other comprehensive income (loss):
Energy swap adjustment, net of tax benefit of $10, $195, $20 and $56, respectively	(19)		(363)		(37)		(106)
Pension benefits adjustment, net of tax expense of $80, $135, $160 and $270, respectively	148		251		297		502
Comprehensive income	6,762		3,878		14,864		7,231
Basic earnings per share (See Note 13) (in Dollars per share)	$ 0.32		$ 0.20		$ 0.70		$ 0.34
Weighted average common shares outstanding (in Shares)	20,428		19,779		20,392		19,623
Diluted earnings per share (See Note 13) (in Dollars per share)	$ 0.31		$ 0.19		$ 0.68		$ 0.33
Weighted average common shares and potential common share equivalents outstanding (in Shares)	21,105		20,581		21,062		20,399
Plant Closure [Member]
Loss (gain) on disposition of assets	2,616				3,939
Disposal of Assets [Member]
Loss (gain) on disposition of assets	$ (14)		$ (2)		$ 233		$ 374

[1] Excludes revenue from internal customers of $0.7 million for fish oil that was transferred from the animal nutrition segment to the human nutrition segment at cost.

[2] Excludes revenue from internal customers of $0.4 million for fish oil that was transferred from the animal nutrition segment to the human nutrition segment at cost.

[3] Excludes revenue from internal customers of $1.4 million for fish oil that was transferred from the animal nutrition segment to thehuman nutrition segment at cost.

[4] Excludes revenue from internal customers of $1.0 million for fish oil that was transferred from the animal nutrition segment to thehuman nutrition segment at cost.

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Note 6 - Prepaid Expenses and Other Current Assets

6 Months Ended

Jun. 30, 2014

Disclosure Text Block Supplement [Abstract]

Other Current Assets [Text Block]

NOTE 6. PREPAID EXPENSES AND OTHER CURRENT ASSETS

Prepaid expenses and other current assets as of June 30, 2014 and December 31, 2013 are summarized below:

	June 30, 2014		December 31, 2013
	(in thousands)
Prepaid insurance	$	4,561	$	2,422
Selling expenses		193		869
Fair market value of energy swaps, current portion		218		275
Whey process filters		139		38
Leases		101		53
Other prepaids and expenses		370		258
Total prepaid expenses and other current assets	$	5,582	$	3,915

Amounts included in prepaid expenses and other current assets consist primarily of prepaid operating expenses including insurance, rents, and selling expenses. Energy swap assets are valued at each reporting date at their fair value (see Note 16 – Fair Value Disclosures for additional information). Prepaid selling expenses are expensed in those periods in which the related revenue is recognized.

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Note 5 - Inventory

6 Months Ended

Jun. 30, 2014

Inventory Disclosure [Abstract]

Inventory Disclosure [Text Block]

NOTE 5. INVENTORY

The major classes of inventory as of June 30, 2014, December 31, 2013 and June 30, 2013 are summarized as follows:

		June 30,2014		December 31, 2013		June 30, 2013
		(in thousands)
Fish meal	$	17,577	$	30,119	$	16,176
Fish oil		14,271		41,081		23,312
Fish solubles		1,252		2,599		1,055
Nutraceutical products		4,862		3,650		3,828
Dairy protein products		2,332		1,355		1,520
Unallocated inventory cost pool (including off-season costs)		30,293		6,655		26,658
Other materials and supplies		9,273		8,880		10,795
Total inventory	$	79,860	$	94,339	$	83,344

Inventory at June 30, 2014, December 31, 2013 and June 30, 2013 is stated at the lower of cost or market. The elements of June 30, 2014 unallocated inventory cost pool include Omega Protein’s plant and vessel related labor, utilities, rent, repairs and depreciation, which are allocated to inventories produced through the 2014 fishing season.

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Accounting Policies, by Policy (Policies)

6 Months Ended

Jun. 30, 2014

Accounting Policies [Abstract]

Consolidation, Policy [Policy Text Block]

Consolidation

The consolidated financial statements include the accounts of Omega Protein Corporation and its wholly owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation.

Basis of Accounting, Policy [Policy Text Block]

Financial Statement Preparation

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the Company’s financial statements and the accompanying notes and the reported amounts of revenues and expenses during the reporting period. Actual amounts, when available, could differ from those estimates and those differences could have a material effect on the financial statements.

Certain amounts applicable to the prior periods have been reclassified to conform to the classifications currently followed. For the six months ended June 30, 2013, the Company reclassified $0.3 million of cash flows from investing activities to cash flows from operating activities related to accrued capital expenditures.  This revision was not considered to be material, individually or in the aggregate, to previously issued financial statements. The revisions had no effect on the results of operations (net or comprehensive income) or financial condition (stockholders’ equity).

Revenue Recognition, Policy [Policy Text Block]

Revenue Recognition

The Company derives revenue principally from the sales of a variety of protein and oil products derived from menhaden. In addition and as a result of its acquisitions of Cyvex, InCon and WSP, the Company’s revenues also include sales of dietary supplement ingredients to the nutraceutical industry and whey protein products to the food and nutritional supplement industries. The Company recognizes revenue for the sale of its products when price is established, collectability is reasonably assured and risk and rewards of ownership of its products and title are transferred to the customer.

Shipping and Handling Cost, Policy [Policy Text Block]

Shipping and Handling

Amounts billed to customers associated with shipping and handling are included in revenues and the related costs are included in cost of sales.

Inventory, Policy [Policy Text Block]

Inventories

During the off-seasons, in connection with the upcoming fishing seasons, Omega Protein incurs costs (e.g., plant and vessel related labor, utilities, rent, repairs, and depreciation) that are directly related to Omega Protein’s infrastructure. These costs accumulate in inventory and are applied as elements of the cost of production of Omega Protein’s products throughout the fishing season ratably based on Omega Protein’s monthly units of production and the expected total units of production for the season.

Any costs incurred during abnormal downtime related to activity at Omega Protein’s plants are charged to expense as incurred.

Derivatives, Policy [Policy Text Block]

Energy Swap Agreements

The Company does not enter into financial instruments for trading or speculative purposes. Omega Protein enters into energy swap agreements to manage portions of its cash flow exposure related to the volatility of natural gas, diesel and fuel oil energy prices for its fish meal and fish oil production operations. The swaps effectively fix pricing for the quantities listed below during the consumption periods.

					(in thousands)
Energy Swap	Consumption Period	Quantity	Price Per Unit		Energy Swap Asset/(Liability) as of June 30, 2014			Deferred Tax Asset/(Liability) as of June 30, 2014
Diesel - NYMEX Heating Oil Swap	July – Nov., 2014	1,440,569 Gallons	$	2.92	$	94		$	(33	)
Natural Gas - NYMEX Natural Gas Swap	July – Oct., 2014	223,750 MMBTUs	$	3.79		143			(50	)
Propane – Natural Gas Liquids Swap	July – Nov., 2014	583,000 Gallons	$	1.09		(18	)		6
Natural Gas - NYMEX Natural Gas Swap	Apr. – Oct., 2015	114,000 MMBTUs	$	4.09		—			—
					$	219		$	(77	)

					(in thousands)
Energy Swap	Consumption  Period	Quantity	Price Per Unit		Energy Swap  Asset/(Liability) as of December 31, 2013		Deferred Tax  Asset/(Liability) as of December 31, 2013
Diesel - NYMEX Heating Oil Swap	Oct. – Nov., 2013	998,700 Gallons	$	2.88	$	132	$	(46	)
Natural Gas - NYMEX Natural Gas Swap	Apr. – Oct., 2014	307,374 MMBTUs	$	3.67		143		(50	)
					$	275	$	(96	)

As of June 30, 2014 and December 31, 2013, Omega Protein has recorded a current asset in prepaid expenses of $0.2 and $0.3, million, respectively, to recognize the fair value of energy swap derivatives, and has also recorded a deferred tax liability of $0.1 million associated therewith. The effective portion of the change in fair value from inception to June 30, 2014 is recorded in “accumulated other comprehensive loss” in the Company’s consolidated financial statements. The following table illustrates the changes recorded, net of tax, in accumulated other comprehensive loss resulting from the energy swap agreements (in thousands).

	Three Months Ended June 30,						Six Months Ended June 30,
	2014			2013			2014			2013
Beginning balance	$	161		$	285		$	179		$	28
Net (gain) loss, net of tax, reclassified to unallocated inventory cost pool		(90	)		(16	)		(90	)		(16	)
Net change associated with current period swap transactions, net of tax		71			(347	)		53			(90	)
Ending balance	$	142		$	(78	)	$	142		$	(78	)

The $0.1 million reported in accumulated other comprehensive loss as of June 30, 2014 will be reclassified to inventory in the period when the energy consumption takes place. The amount to be reclassified, net of taxes, during the next 12 months is expected to be approximately $0.1 million.

The aggregate fair value of derivative instruments in gross asset positions as of June 30, 2014 and December 31, 2013 was $0.2 and $0.3 million. These amounts represent the maximum exposure to loss at the reporting date as a result of all of the counterparties failing to perform as contracted. This exposure could be reduced by up to $29,000 and $0, respectively, of liabilities included in master netting arrangements with those same counterparties.

As of June 30, 2014 (in thousands)	Gross Amounts of Recognized Assets (Liabilities)		Gross Amounts of Assets (Liabilities) Offset			Net Amounts of Assets (Liabilities) Presented in the Balance Sheet
Energy swap derivatives – asset position	$	248	$	(29	)	$	219

As of December 31, 2013 (in thousands)	Gross Amounts of Recognized Assets (Liabilities)		Gross Amounts of Assets (Liabilities) Offset		Net Amounts of Assets (Liabilities) Presented in the Balance Sheet
Energy swap derivatives – asset position	$	275	$	-	$	275

If, at any time, the swaps are determined to be ineffective, in whole or in part, due to changes in the Company’s energy usage or underlying hedge agreements or assumptions, the fair value of the portion of the energy swaps determined to be ineffective will be recognized as a gain or loss in cost of sales for the applicable period. For the six months ended June 30, 2013, the Company included an expense of $0.1 million in cost of sales resulting from transactions associated with the ineffectiveness of diesel energy swaps. See Note 16 – Fair Value Disclosures for additional information.

Costs Associated with Exit or Disposal Activities or Restructurings, Policy [Policy Text Block]

Plant Closure

Property, plant and equipment impairments related to the Cameron, Louisiana plant are made in accordance with the impairment of long-lived assets policy. Employee severance related charges have been recognized to the extent that the amount is probable, measurable and no-future service is expected or for those still employed, recognized pro-rata over the remaining service period. Ongoing clean-up and dismantlement costs will be recognized as incurred unless obligated and measureable by a contractual commitment. See Note 3 – Plant Closure for additional information related to the charges incurred.

Goodwill and Intangible Assets, Policy [Policy Text Block]

Acquisitions, Goodwill and Other Intangible Assets

All of the Company’s goodwill and other intangible assets are the result of acquisitions in the human nutrition segment. This segment is comprised of two reporting units, 1) InCon and Cyvex and 2) WSP. The Company has recorded goodwill and certain other identifiable intangible assets that are more fully explained in Note 2 – Acquisition of Wisconsin Specialty Protein, L.L.C. and Note 9 – Goodwill and Other Intangible Assets.

Comprehensive Income, Policy [Policy Text Block]

Accumulated Other Comprehensive Loss

The components of accumulated other comprehensive (loss) gain, net of tax, included in stockholders’ equity are as follows:

Changes in Accumulated Other Comprehensive Loss by Component 

For the Six Months Ended June 30, 2014 (in thousands)

	Gains and Losses On Cash Flow Hedges				Defined Benefit Pension Items				Total
Beginning balance December 31, 2013	$	179			$	(6,387	)		$	(6,208	)
Other comprehensive loss before reclassifications		53				—				53
Amounts reclassified from accumulated other comprehensive loss		(90	)	(a)		297		(b)		207
Net current-period other comprehensive income		(37	)			297				260
Ending balance June 30, 2014	$	142			$	(6,090	)		$	(5,948	)

Changes in Accumulated Other Comprehensive Loss by Component

For the Six Months Ended June 30, 2013 (in thousands)

	Gains and Losses On Cash Flow Hedges				Defined Benefit Pension Items				Total
Beginning balance December 31, 2012	$	28			$	(9,952	)		$	(9,924	)
Other comprehensive loss before reclassifications		(90	)			—				(90	)
Amounts reclassified from accumulated other comprehensive loss		(16	)	(a)		502		(b)		486
Net current-period other comprehensive income		(106	)			502				396
Ending balance June 30, 2013	$	(78	)		$	(9,450	)		$	(9,528	)

(a)	This accumulated other comprehensive income component is reclassified to the unallocated inventory cost pool in the period when the energy consumption takes place.
(b)	This accumulated other comprehensive income component is included in the computation of net periodic pension costs as amortization of actuarial loss which are explained in more detail in Note 16 to the consolidated financial statements in Item 8 of the Company’s Form 10-K for the fiscal year ended December 31, 2013.

New Accounting Pronouncements, Policy [Policy Text Block]

Recently Issued Accounting Standards

In May 2014, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers.  This ASU amends the existing accounting standards for revenue recognition and is based on the principle that revenue should be recognized to depict the transfer of goods or services to a customer at an amount that reflects the consideration a company expects to receive in exchange for those goods or services.  The Company is required to adopt this ASU on January 1, 2017.  The Company does not expect this ASU to have a material impact on its Company’s consolidated results of operations, financial position and related disclosures.

In April 2014, the FASB issued ASU No. 2014-08 that changes the criteria for determining which disposals can be presented as discontinued operations and modifies related disclosure requirements. Under the new guidance, a discontinued operation is defined as a disposal of a component or group of components that is disposed of or is classified as held for sale and represents a strategic shift that has or will have a major effect on an entity's operations and financial results. The new standard is effective in annual periods beginning on or after December 15, 2014 with early adoption permitted. The guidance applies prospectively to new disposals and new classifications of disposal groups as held for sale after the effective date. The Company’s adoption of FASB ASU No. 2014-08 is not expected to impact on the Company’s consolidated results of operations, financial position and related disclosures.

In July 2013, the FASB issued ASU No. 2013-11 which amended the Income Taxes Topic of the Accounting Standards Codification to eliminate a diversity in practice for the presentation of unrecognized tax benefits when net operating loss carryforwards, similar tax losses or tax credit carryforwards exist. The amendment requires that the unrecognized tax benefit be presented as a reduction of the deferred tax assets associated with the carryforwards except in certain circumstances when it would be reflected as a liability. This guidance is effective for annual periods and interim periods within those annual periods beginning after December 15, 2013. The Company’s adoption of FASB ASU No. 2013-11 effective January 1, 2014 did not have an impact on the Company’s consolidated results of operations, financial position and related disclosures.

Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block]

Stock-Based Compensation

Stock Options 

The Company has a stock-based compensation plan, which is described in more detail in Note 16 to the consolidated financial statements in Item 8 of the Company’s Form 10-K for the fiscal year ended December 31, 2013. The Company has issued non-qualified stock options under its stock incentive plans. The options generally vested in equal installments over three years and expire in ten years.

Net income for the three months ended June 30, 2013 includes $0.2 million ($0.1 million after-tax), respectively, of stock-based compensation costs related to stock options. Net income for the six months ended June 30, 2013 includes $0.3 million ($0.2 million after-tax), respectively, of stock-based compensation costs related to stock options. The stock-based compensation costs related to stock options are recorded primarily in selling, general and administrative expenses in the unaudited condensed consolidated statement of comprehensive income. As of June 30, 2014 there was $0 of unrecognized compensation costs related to non-vested stock options that is expected to be recognized during the remainder of fiscal year 2014.

Restricted Stock 

The Company has issued shares of restricted stock under the 2006 Incentive Plan. Shares of restricted stock generally vest on the third anniversary of the grant date or in equal installments over three years except for shares of restricted stock granted to non-employee directors which vest six months after the grant date. Non-vested shares are generally forfeited upon the termination of employment or service as a director. Holders of shares of restricted stock are entitled to all rights of a stockholder of the Company, including the right to vote the shares and receive any dividends or other distributions. The non-vested shares are considered participating securities and the Company has calculated earnings per share using the two-class method. See Note 13 – Reconciliation of Basic and Diluted Per Share Data.

During the six month periods ended June 30, 2014 and 2013, the Company issued 117,885 and 25,000 shares of restricted stock, respectively, under the 2006 Incentive Plan to employees and non-employee directors. The Company’s compensation expense related to restricted stock, which is primarily reflected in selling, general and administrative expenses in the unaudited condensed consolidated statement of comprehensive income, was approximately $0.4 million and $0.3 million ($0.3 million and $0.2 million after tax) for the three months ended June 30, 2014 and 2013, respectively. The Company’s compensation expense related to restricted stock was approximately $0.7 million and $0.5 million ($0.5 million and $0.3 million after tax) for the six months ended June 30, 2014 and 2013, respectively. As of June 30, 2014, there was approximately $2.0 million ($1.3 million after tax) of unrecognized compensation expense related to non-vested restricted stock that is expected to be recognized over a weighted-average period of 1.0 years, of which $0.9 million ($0.6 million after-tax) of compensation expense is expected to be recognized during the remainder of fiscal year 2014.

Performance Units 

On February 6, 2014, the Company adopted a cash incentive performance unit plan. The value of the units will be determined by reference to the performance of the Company’s common stock during the relevant performance period compared to the performance of the Russell 2000 Index member companies (the “Peer Group”) during that same period. One third of the Performance Units granted will be earned at the end of each calendar year of the performance period and will be valued for the calendar year based on the Total Shareholder Return (“TSR”) of the Company compared to the TSR of the Peer Group. The performance units contain a service provision of approximately 3 years and are liability-classified awards included in other long-term liabilities which are adjusted to fair value on a quarterly basis.

The Company’s compensation expense related to performance units was approximately $0.1 million and $0.2 million for the three and six months ended June 30, 2014, respectively, which is primarily reflected in selling, general and administrative expenses in the unaudited condensed consolidated statement of comprehensive income. As of June 30, 2014, there was approximately $1.4 million of unrecognized compensation cost related to performance units that is expected to be recognized over the next 2.5 years, of which $0.3 million of compensation expense is expected to be recognized during the remainder of fiscal year 2014.

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Note 13 - Reconciliation of Basic and Diluted Per Share Data

6 Months Ended

Jun. 30, 2014

Earnings Per Share [Abstract]

Earnings Per Share [Text Block]

NOTE 13. RECONCILIATION OF BASIC AND DILUTED PER SHARE DATA (in thousands except per share date)

Basic earnings per share is calculated by dividing net income allocated to common shares outstanding by the weighted average number of shares of common stock outstanding. Diluted earnings per share assumes the exercise of stock options provided the effect is not anti-dilutive.

The Company grants certain incentive compensation awards, including restricted stock, to employees and non-employee directors that are considered to be participating securities. Due to the presence of participating securities, we have calculated our earnings per share using the two-class method.

Three Months Ended June 30:	2014				2013
Allocation of earnings:
Net income	$	6,633			$	3,990
Income allocated to participating securities		(171	)			(88	)
Income allocated to common shares outstanding	$	6,462			$	3,902
Weighted average common shares outstanding		20,428				19,779
Basic earnings per share				0.32				0.20
Stock options assumed exercised		677				802
Weighted average diluted common shares and potential common share equivalents outstanding		21,105				20,581
Diluted earnings per share				0.31				0.19

Six Months Ended June 30:	2014				2013
Allocation of earnings:
Net income	$	14,604			$	6,835
Income allocated to participating securities		(364	)			(149	)
Income allocated to common shares outstanding	$	14,240			$	6,686
Weighted average common shares outstanding		20,392				19,623
Basic earnings per share				0.70				0.34
Stock options assumed exercised		670				776
Weighted average diluted common shares and potential common share equivalents outstanding		21,062				20,399
Diluted earnings per share				0.68				0.33

Options to purchase the following number of shares of common stock (in thousands) were outstanding during the three and six months ended June 30, 2014 and 2013 but were excluded from the computation of diluted earnings per share because the adjusted exercise prices of the options based upon the assumed proceeds were greater than the average market price of the shares during that period.

Three Months Ended June 30,				Six Months Ended June 30,
2014		2013		2014		2013
	130		135		130		1,311

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Note 9 - Goodwill and Other Intangible Assets

6 Months Ended

Jun. 30, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets Disclosure [Text Block]

NOTE 9. GOODWILL AND OTHER INTANGIBLE ASSETS

Goodwill is measured as the excess of the cost of an acquisition over the sum of the amounts assigned to the fair value of tangible and intangible assets acquired less liabilities assumed.  All of the Company’s goodwill and other intangible assets are the result of acquisitions in the human nutrition segment. 

Goodwill is tested annually for impairment of value, and whenever an event occurs or circumstances change that would more likely than not indicate the carrying amount of the asset is impaired. Determining whether an indicator of impairment has occurred during an interim period involves a significant amount of judgment.  During the interim periods, qualitative factors such as deterioration in general economic conditions, changes in the market for an entity’s products or services, declines in actual or planned revenue or earnings compared with actual and projected results of relevant prior periods, among others, are evaluated to determine if a triggering event which would result in a potential impairment has incurred.

As of the December 31, 2013, the results of the annual quantitative tests did not result in any impairment of goodwill because the fair values of each of the reporting units exceeded their respective carrying values. Specifically, our two reporting units, InCon/Cyvex and WSP, each had calculated fair values that were 21% in excess of their carrying values.  Additionally, the calculated fair value of InCon’s trade secrets exceeded its carrying value by 5%.  Key assumptions in the fair value calculations include discount rates and future sales volumes, prices and production costs.  It should be noted that these assumptions are highly subjective given the early stage and transitional nature of the businesses, and the use of different assumptions could produce significantly different fair values and, potentially, impairments.

Our annual quantitative tests have assumed increasing cash flows over the next several years, based on anticipated sales growth and improved profitability; through the six months ended June 30, 2014, the two reporting units have not achieved the assumed results.  If future cash flow expectations decline sufficiently, the estimated fair values could be reduced and potentially result in a material impairment in a subsequent period.

The following table summarizes the changes in the carrying amount of goodwill resulting from the Company’s acquisitions of WSP, Cyvex and InCon (in thousands):

	WSP		Cyvex and Incon		Total
January 1, 2014	$	11,614		7,986	$	19,600
Acquisitions		—		—		—
June 30, 2014	$	11,614		7,986	$	19,600

The following table summarizes the Company’s intangible assets (dollars in thousands):

	June 30, 2014			December 31, 2013			Weighted Average Life (years)
Carrying value of intangible assets subject to amortization:
Customer relationships and non-competes	$	5,930		$	5,930
Less accumulated amortization		(949	)		(613	)		10
Total intangible assets subject to amortization, net	$	4,981		$	5,317
Indefinite life intangible assets – trade names/secrets and other		2,615			2,615
Total intangible assets	$	7,596		$	7,932

Amortization expense of the Company’s intangible assets for the three months ended June 30, 2014 and 2013 was approximately $0.2 million and for the six months ended June 30, 2014 and 2013 was approximately $0.3 million. Estimated future amortization expense related to intangible assets is as follows (in thousands):

Remainder of 2014	$	329
2015		655
2016		654
2017		654
Thereafter		2,689
Total estimated future amortization expense	$	4,981

The Company’s goodwill and other intangible assets are more fully explained in Note 11 to the consolidated financial statements in Item 8 of the Company’s Form 10-K for the fiscal year ended December 31, 2013.

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Note 10 - Notes Payable and Long-Term Debt (Details) (USD $)	Jun. 30, 2014	Dec. 31, 2013	Jun. 30, 2014 Approval Letter [Member]	Jun. 20, 2011 Approval Letter [Member]	Jun. 30, 2014 Loan Agreement [Member]	Dec. 31, 2013 Loan Agreement [Member]	Mar. 21, 2012 Loan Agreement [Member]
Note 10 - Notes Payable and Long-Term Debt (Details) [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity				$ 10,000,000			$ 60,000,000
Long-term Line of Credit			22,400,000		0	0
Letters of Credit Outstanding, Amount	$ 3,500,000	$ 3,500,000

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Note 7 - Other Assets

6 Months Ended

Jun. 30, 2014

Disclosure Text Block Supplement [Abstract]

Other Assets Disclosure [Text Block]

NOTE 7. OTHER ASSETS

Other assets as of June 30, 2014 and December 31, 2013 are summarized as follows:

		June 30, 2014		December 31, 2013
		(in thousands)
Fish nets, net of accumulated amortization of $2,034 and $2,610	$	1,415	$	1,517
Insurance receivable		785		3,048
Title XI debt issuance costs		256		272
Other debt issuance costs		253		299
Deposits and other		106		98
Total other assets, net	$	2,815	$	5,234

Amortization expense for fishing nets amounted to approximately $0.3 million for the three months ended June 30, 2014 and 2013 and $0.7 million for the six months ended June 30, 2014 and 2013.

As of June 30, 2014 and December 31, 2013, insurance receivables primarily relates to Jones Act claims for employees aboard its vessels. This estimated amount is recorded gross of estimated claims which may be due to claimants and is included in accrued insurance liabilities.

The Company carries insurance for certain losses relating to its fishing vessels and Jones Act liability for employees aboard its vessels (collectively, “Vessel Claims Insurance”). The typical Vessel Claims Insurance policy contains an annual aggregate deductible (“AAD”) for which Omega Protein remains responsible, while the insurance carrier is responsible for all applicable amounts which exceed the AAD. It is Omega Protein’s policy to accrue current amounts due and record amounts paid out on each claim. Once payments exceed the AAD, Omega Protein records an insurance receivable for a given policy year.

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Note 8 - Property, Plant, and Equipment

6 Months Ended

Jun. 30, 2014

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment Disclosure [Text Block]

NOTE 8. PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment as of June 30, 2014 and December 31, 2013 are summarized as follows:

		June 30, 2014			December 31, 2013
		(in thousands)
Land	$	7,457		$	7,457
Plant assets		161,761			159,337
Fishing vessels		110,452			101,745
Furniture and fixtures		7,090			7,091
Construction in progress		26,409			16,846
Total property and equipment		313,169			292,476
Less accumulated depreciation and impairment		(158,738	)		(148,363	)
Property, plant and equipment, net	$	154,431		$	144,113

Depreciation expense for the three months ended June 30, 2014 and 2013 was $4.6 million and $4.7 million, respectively, and $9.3 million and $9.3 million for the six months ended June 30, 2014 and 2013, respectively.

The Company capitalizes interest as part of the acquisition cost of a qualifying asset. Interest is capitalized only during the period of time required to complete and prepare the asset for its intended use. For the three months ended June 30, 2014 and 2013, the Company capitalized interest of approximately $0.2 million and $26,000, respectively. For the six months ended June 30, 2014 and 2013, the Company capitalized interest of approximately $0.4 million and $0.1 million, respectively.

In December 2013, the Company closed its Cameron, Louisiana menhaden processing plant and re-deployed some of its harvesting and processing assets to the three remaining menhaden processing plants. As a result of the closure, the Company recognized a cumulative $6.5 million in impairment of its fixed assets that it does not plan to use in future operations. For more information see Note 3 – Plant Closure.

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Note 10 - Notes Payable and Long-Term Debt

6 Months Ended

Jun. 30, 2014

Disclosure Text Block [Abstract]

Long-term Debt [Text Block]

NOTE 10. NOTES PAYABLE AND LONG-TERM DEBT

At June 30, 2014 and December 31, 2013, the Company's long-term debt consisted of the following:

	June 30,			December 31,
	2014			2013
	(in thousands)
U.S. government guaranteed obligations (Title XI loans) collateralized by a first lien on certain vessels and certain plant assets:
Amounts due in installments through 2025, interest from 5.7% to 7.0%	$	22,381		$	24,211
Amounts due in installments through 2014, interest at Eurodollar rates plus 0.5% (0.7% and 0.7% at June 30, 2014 and December 31, 2013, respectively)		10			31
Total debt		22,391			24,242
Less current maturities		(2,564	)		(3,112	)
Long-term debt	$	19,827		$	21,130

The Title XI loans are secured by certain liens on the Company’s fishing vessels and mortgages on the Company’s Reedville, Virginia and Abbeville, Louisiana plants.     

In June 2011, pursuant to the Title XI program, the United States Department of Commerce Fisheries Finance Program (the “FFP”) approved a financing application made by the Company in the amount of $10.0 million (the “Approval Letter”) which expires on June 20, 2016. To date, the Company has not borrowed any amounts under the Approval Letter and its ability to do so may be adversely affected by an EPA notice that the Company’s Omega Protein subsidiary is ineligible, as a result of its previous convictions under the Clean Water Act, for receipt of government contracts or benefits in certain cases. See “Risk Factors - If our Omega Protein subsidiary fails to comply with the terms of its probation under a plea agreement entered into in June 2013, we could be subject to criminal prosecution” in the Company’s Form 10-K for the year ended December 31, 2013 for further detail on this EPA notice. As of June 30, 2014, the Company had approximately $22.4 million of borrowings outstanding under Title XI and was in compliance with all of the covenants contained therein.

In March 2012, the Company entered into an Amended and Restated Loan Agreement (the “Loan Agreement”) with Wells Fargo Bank, National Association, as administrative agent (the “Agent”) for the lenders (currently Wells Fargo Bank, National Association and JP Morgan Chase Bank, N.A.) (collectively, the “Lenders”) pursuant to which the Lenders agreed to extend credit to the Company in the form of loans (each a “Loan” and collectively, the “Loans”) on a revolving basis of up to $60.0 million (the “Commitment”).

All Loans and all other obligations outstanding under the Loan Agreement are payable in full on March 21, 2017. As of June 30, 2014 and December 31, 2013, the Company had no amounts outstanding under the $60 million Loan Agreement and approximately $3.5 million in letters of credit. As of June 30, 2014, the Company was in compliance with all financial covenants under the Loan Agreement. The Company has no off-balance sheet arrangements other than normal operating leases and standby letters of credit.

The Company’s notes payable and long-term debt are more fully explained in Note 12 to the consolidated financial statements in Item 8 of the Company’s Form 10-K for the fiscal year ended December 31, 2013.

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Note 12 - Commitments And Contingencies (Details) (USD $) In Millions, unless otherwise specified	1 Months Ended
	Apr. 25, 2013
Reduced Earn Out Of Original Formula In 2013 [Member]
Note 12 - Commitments And Contingencies (Details) [Line Items]
Annual Earn Out Payments Percentage of EBITDA	35.00%
Annual Earn Out Payment of EBITDA, Low Percentage [Member]
Note 12 - Commitments And Contingencies (Details) [Line Items]
Annual Earn Out Payments Percentage of EBITDA	3.25%
Annual Earn Out Payment of EBITDA, Low Level [Member]
Note 12 - Commitments And Contingencies (Details) [Line Items]
Earnings Before Deduction Of Interest Tax And Amortization Expense (in Dollars)	$ 3.0
Annual Earn Out Payment of EBITDA, High Percentage [Member]
Note 12 - Commitments And Contingencies (Details) [Line Items]
Annual Earn Out Payments Percentage of EBITDA	19.50%
Annual Earn Out Payment of EBITDA, High Level [Member]
Note 12 - Commitments And Contingencies (Details) [Line Items]
Earnings Before Deduction Of Interest Tax And Amortization Expense (in Dollars)	$ 12.0

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Note 13 - Reconciliation of Basic and Diluted Per Share Data (Details) - Outstanding Shares Excluded from Computation of Diluted Earnings Per Share In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Outstanding Shares Excluded from Computation of Diluted Earnings Per Share [Abstract]
	130	135	130	1,311

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Note 11 - Accrued Liabilities (Details) - Table of Accrued Liabilities (USD $) In Thousands, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
Table of Accrued Liabilities [Abstract]
Insurance	$ 5,405	$ 7,222
Reserve for plant closure costs	478	595
Salary and benefits	9,240	9,423
Trade creditors	6,825	5,100
Taxes, other than income tax	1,035	64
Income tax	1,427	4,132
Deferred revenue	1,147	2,362
Accrued interest	190	200
Other	163	47
Total accrued liabilities	$ 25,910	$ 29,145

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Note 11 - Accrued Liabilities (Tables)

6 Months Ended

Jun. 30, 2014

Disclosure Text Block Supplement [Abstract]

Schedule of Accrued Liabilities [Table Text Block]

	June 30,		December 31,
	2014		2013
	(in thousands)
Insurance	$	5,405	$	7,222
Reserve for plant closure costs		478		595
Salary and benefits		9,240		9,423
Trade creditors		6,825		5,100
Taxes, other than income tax		1,035		64
Income tax		1,427		4,132
Deferred revenue		1,147		2,362
Accrued interest		190		200
Other		163		47
Total accrued liabilities	$	25,910	$	29,145

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Note 7 - Other Assets (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Disclosure Text Block Supplement [Abstract]
Amortization	$ 0.3	$ 0.3	$ 0.7	$ 0.7

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Note 15 - Industry Segments

6 Months Ended

Jun. 30, 2014

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

NOTE 15. INDUSTRY SEGMENTS

The Company reports in two segments, animal nutrition and human nutrition. These segments are managed separately and information on each segment is provided to the chief operating decision makers as they make decisions about the Company’s overall resource allocation and assess performance.

The animal nutrition segment is primarily comprised of the Company’s fishing related assets. These assets produce fish meal, oil and solubles that are sold primarily to animal nutrition customers. A portion of the Company’s fish oil is also partially refined and transferred at cost to the human nutrition segment where it is further refined and concentrated for sale to the human nutrition market. The human nutrition segment is comprised of assets used to produce, procure, market and sell product to human nutrition markets.

The tables below present information about reported segments for three months ended June 30, 2014 and 2013 (in thousands). It should be noted that all cash and cash equivalent balances have been included in the identifiable assets of the unallocated segment.

June 30, 2014	Animal Nutrition			Human Nutrition			Unallocated			Total
Revenue (1)	$	65,264		$	6,649		$	—		$	71,913
Cost of sales		45,501			5,988			—			51,489
Gross profit		19,763			661			—			20,424
Selling, general and administrative expenses (including research and development)		636			2,067			4,367			7,070
Loss related to plant closure		2,616			—			—			2,616
Other (gains) and losses		(14	)		—			—			(14	)
Operating income (loss)	$	16,525		$	(1,406	)	$	(4,367	)	$	10,752
Depreciation and amortization	$	4,374		$	699		$	45		$	5,118
Identifiable assets	$	224,416		$	76,734		$	41,156		$	342,306
Capital expenditures	$	5,761		$	4,692		$	—		$	10,453

(1) Excludes revenue from internal customers of $0.7 million for fish oil that was transferred from the animal nutrition segment to the human nutrition segment at cost.

June 30, 2013	Animal Nutrition			Human Nutrition(2)			Unallocated			Total
Revenue (3)	$	34,453		$	7,324		$	—		$	41,777
Cost of sales		22,786			5,708			—			28,494
Gross profit		11,667			1,616			—			13,283
Selling, general and administrative expenses (including research and development)		662			1,861			4,072			6,595
Other (gains) and losses		(2	)		—			—			(2	)
Operating income (loss)	$	11,007		$	(245	)	$	(4,072	)	$	6,690
Depreciation and amortization	$	4,472		$	632		$	172		$	5,276
Identifiable assets	$	227,462		$	57,861		$	23,002		$	308,325
Capital expenditures	$	5,741		$	324		$	119		$	6,184

(2) Includes revenues and related expenses for WSP.

(3) Excludes revenue from internal customers of $0.4 million for fish oil that was transferred from the animal nutrition segment to the human nutrition segment at cost.

The tables below present information about reported segments for the six months ended June 30, 2014 and 2013 (in thousands).

June 30, 2014	Animal Nutrition		Human Nutrition			Unallocated			Total
Revenue (4)	$	120,534	$	14,879		$	—		$	135,413
Cost of sales		81,668		12,828			—			94,496
Gross profit		38,866		2,051			—			40,917
Selling, general and administrative expenses (including research and development)		1,189		3,988			8,470			13,647
Loss related to plant closure		3,939		—			—			3,939
Other (gains) and losses		42		191			—			233
Operating income (loss)	$	33,696	$	(2,128	)	$	(8,470	)	$	23,098
Depreciation and amortization	$	8,742	$	1,400		$	193		$	10,335
Identifiable assets	$	224,416	$	76,734		$	41,156		$	342,306
Capital expenditures	$	10,358	$	12,901		$	9		$	23,268

(4) Excludes revenue from internal customers of $1.4 million for fish oil that was transferred from the animal nutrition segment to the human nutrition segment at cost.

June 30, 2013	Animal Nutrition		Human Nutrition(5)			Unallocated			Total
Revenue (6)	$	76,790	$	13,910		$	—		$	90,700
Cost of sales		53,880		11,440			—			65,320
Gross profit		22,910		2,470			—			25,380
Selling, general and administrative expenses (including research and development)		1,290		3,157			9,146			13,593
Other (gains) and losses		374		—			—			374
Operating income (loss)	$	21,246	$	(687	)	$	(9,146	)	$	11,413
Depreciation and amortization	$	8,821	$	1,070		$	362		$	10,253
Identifiable assets	$	227,462	$	57,861		$	23,002		$	308,325
Capital expenditures	$	12,046	$	613		$	238		$	12,897

(5) Includes revenues and related expenses for WSP from February 27, 2013 through June 30, 2013.

(6) Excludes revenue from internal customers of $1.0 million for fish oil that was transferred from the animal nutrition segment to the human nutrition segment at cost.

A reconciliation of total segment operating income to total earnings from operations before income taxes for the three and six months ended June 30, 2014 and 2013 is as follows (in thousands):

	Three Months Ended June 30,
	2014			2013
Operating income for reportable segments	$	10,752		$	6,690
Interest income		5			2
Interest expense		(135	)		(481	)
Other expense, net		(118	)		(98	)
Income before income taxes	$	10,504		$	6,113

	Six Months Ended June 30,
	2014			2013
Operating income for reportable segments	$	23,098		$	11,413
Interest income		13			10
Interest expense		(382	)		(873	)
Other expense, net		(174	)		(181	)
Income before income taxes	$	22,555		$	10,369

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Note 3 - Plant Closure (Tables)

6 Months Ended

Jun. 30, 2014

Disposal Groups Plant Closure Disclsoure [Abstract]

Schedule of Disposal Group, Plant Closure Disposal [Table Text Block]

		Three Months Ended June 30, 2014		Six Months Ended June 30, 2014		Cumulative to Date
		(in thousands)
Impairment of property, plant and equipment	$	1,647	$	1,739	$	6,535
Write-off material and supplies inventory		—		17		114
Employee severance costs		26		240		585
Estimated decommissioning costs		—		—		250
Other ongoing closure costs not attributable to future production		943		1,943		3,052
Total loss related to plant closure	$	2,616	$	3,939	$	10,536

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Note 5 - Inventory (Details) - Classes of Inventory (USD $) In Thousands, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013	Jun. 30, 2013
Inventory [Line Items]
Unallocated inventory cost pool (including off-season costs)	$ 30,293	$ 6,655	$ 26,658
Other materials and supplies	9,273	8,880	10,795
Total inventory	79,860	94,339	83,344
Class, Fish Meal [Member]
Inventory [Line Items]
Inventory Goods	17,577	30,119	16,176
Class, Fish Oil [Member]
Inventory [Line Items]
Inventory Goods	14,271	41,081	23,312
Class, Fish Solubles [Member]
Inventory [Line Items]
Inventory Goods	1,252	2,599	1,055
Class, Nutraceutical Products [Member]
Inventory [Line Items]
Inventory Goods	4,862	3,650	3,828
Class, Dairy Protein Products [Member]
Inventory [Line Items]
Inventory Goods	$ 2,332	$ 1,355	$ 1,520

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Note 1 - Significant Accounting Policies Summary of Operations and Basis of Presentation (Details) - Changes Recorded, Net of Tax, in Accumulated Other Comprehensive Loss Resulting From the Energy Swap Agreements (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014		Jun. 30, 2013
Note 1 - Significant Accounting Policies Summary of Operations and Basis of Presentation (Details) - Changes Recorded, Net of Tax, in Accumulated Other Comprehensive Loss Resulting From the Energy Swap Agreements [Line Items]
Balance as of			$ 179		$ 28
Net (gain) loss, net of tax, reclassified to unallocated inventory cost pool			(90)	[1]	(16)	[1]
Net change associated with current period swap transactions, net of tax			53		(90)
Balance as of	142	(78)	142		(78)
Swap [Member] | Energy Related Derivative [Member]
Note 1 - Significant Accounting Policies Summary of Operations and Basis of Presentation (Details) - Changes Recorded, Net of Tax, in Accumulated Other Comprehensive Loss Resulting From the Energy Swap Agreements [Line Items]
Net change associated with current period swap transactions, net of tax	71	(347)	53		(90)
Energy Related Derivative [Member]
Note 1 - Significant Accounting Policies Summary of Operations and Basis of Presentation (Details) - Changes Recorded, Net of Tax, in Accumulated Other Comprehensive Loss Resulting From the Energy Swap Agreements [Line Items]
Balance as of	161	285	179		28
Net (gain) loss, net of tax, reclassified to unallocated inventory cost pool	(90)	(16)	(90)		(16)
Balance as of	$ 142	$ (78)	$ 142		$ (78)

[1] This accumulated other comprehensive income component is reclassified to the unallocated inventory cost pool in the period when the energy consumption takes place.

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Unaudited Condensed Consolidated Statement of Comprehensive Income (Parentheticals) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Energy swap adjustment, tax benefit	$ 10	$ 195	$ 20	$ 56
Pension benefits adjustment, tax expense	$ 80	$ 135	$ 160	$ 270

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Note 4 - Receivables, Net

6 Months Ended

Jun. 30, 2014

Receivables [Abstract]

Loans, Notes, Trade and Other Receivables Disclosure [Text Block]

NOTE 4. RECEIVABLES, NET

Receivables as of June 30, 2014 and December 31, 2013 are summarized as follows:

	June 30, 2014			December 31, 2013
	(in thousands)
Trade	$	29,106		$	18,689
Insurance		1,718			1,806
Income tax		803			714
Other		40			310
Total accounts receivable		31,667			21,519
Less allowance for doubtful accounts		(363	)		(379	)
Receivables, net	$	31,304		$	21,140

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Note 9 - Goodwill and Other Intangible Assets (Details) - Table of Intangible Assets Other than Goodwill (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2014	Dec. 31, 2013
Table of Intangible Assets Other than Goodwill [Abstract]
Customer relationships and non-competes	$ 5,930	$ 5,930
Less accumulated amortization	(949)	(613)
Less accumulated amortization	10 years
Total intangible assets subject to amortization, net	4,981	5,317
Indefinite life intangible assets – trade names/secrets and other	2,615	2,615
Total intangible assets	$ 7,596	$ 7,932

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Note 15 - Industry Segments (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended				6 Months Ended
	Jun. 30, 2014		Jun. 30, 2013		Jun. 30, 2014		Jun. 30, 2013
Note 15 - Industry Segments (Details) [Line Items]
Number of Reportable Segments					2
Revenues	$ 71,913	[1]	$ 41,777	[2]	$ 135,413	[3]	$ 90,700	[4]
Transferred From Animal Nutrition To Human Nutrition Segment [Member]
Note 15 - Industry Segments (Details) [Line Items]
Revenues	$ 700		$ 400		$ 1,400		$ 1,000

[1] Excludes revenue from internal customers of $0.7 million for fish oil that was transferred from the animal nutrition segment to the human nutrition segment at cost.

[2] Excludes revenue from internal customers of $0.4 million for fish oil that was transferred from the animal nutrition segment to the human nutrition segment at cost.

[3] Excludes revenue from internal customers of $1.4 million for fish oil that was transferred from the animal nutrition segment to thehuman nutrition segment at cost.

[4] Excludes revenue from internal customers of $1.0 million for fish oil that was transferred from the animal nutrition segment to thehuman nutrition segment at cost.

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Note 4 - Receivables, Net (Tables)

6 Months Ended

Jun. 30, 2014

Receivables [Abstract]

Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block]

	June 30, 2014			December 31, 2013
	(in thousands)
Trade	$	29,106		$	18,689
Insurance		1,718			1,806
Income tax		803			714
Other		40			310
Total accounts receivable		31,667			21,519
Less allowance for doubtful accounts		(363	)		(379	)
Receivables, net	$	31,304		$	21,140

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Note 16 - Fair Value Disclosures (Tables)

6 Months Ended

Jun. 30, 2014

Fair Value Disclosures [Abstract]

Schedule of Carrying Values and Estimated Fair Values of Debt Instruments [Table Text Block]

	June 30,		December 31,
	2014		2013
Long-term Debt (Level 2):
Carrying Value	$	22,391	$	24,242
Estimated Fair Value	$	23,791	$	25,285

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]

	June 30, 2014
	Fair Value Measurements Using						Assets
	Level 1		Level 2		Level 3			(Liabilities) at Fair Value
Assets (Liabilities) (in thousands)
Energy swap	$	—	$	219	$	—	$	219
Total Assets (Liabilities)	$	—	$	219	$	—	$	219

	December 31, 2013
	Fair Value Measurements Using						Assets
	Level 1		Level 2		Level 3			(Liabilities) at Fair Value
Assets (Liabilities) (in thousands)
Energy swap	$	—	$	275	$	—	$	275
Total Assets (Liabilities)	$	—	$	275	$	—	$	275

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Note 14 - Components of Net Periodic Benefit Cost

6 Months Ended

Jun. 30, 2014

Compensation and Retirement Disclosure [Abstract]

Pension and Other Postretirement Benefits Disclosure [Text Block]

NOTE 14. COMPONENTS OF NET PERIODIC BENEFIT COST

	Three Months Ended June 30,						Six Months Ended June 30,
	2014			2013			2014			2013
	(in thousands)						(in thousands)
Service cost	$	—		$	—		$	—		$	—
Interest cost		274			248			548			496
Expected return on plan assets		(298	)		(253	)		(596	)		(506	)
Amortization of prior service costs		—			—			—			—
Amortization of net loss		229			386			458			772
Net periodic pension cost	$	205		$	381		$	410		$	762

For the six months ended June 30, 2014 and 2013, the Company contributed approximately $0.8 million and $0.7 million, respectively, to the Company’s pension plan. The Company expects to make contributions of $1.1 million to the pension plan during the remainder of 2014.

In 2002, the Board of Directors authorized a plan to freeze the Company’s pension plan in accordance with ERISA rules and regulations so that new employees, after July 31, 2002, are not eligible to participate in the pension plan and further benefits no longer accrue for existing participants.