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fiscal 1995 period.  The Company's product inventory levels at December 31, 1995
for fish meal and fish oil were approximately 29% and 73% lower, respectively,
than the December 31, 1994 inventory levels due primarily to lower carryover
inventory levels from the fiscal 1995 fishing season.

          The price for fishmeal generally bears a relationship to prevailing
soybean meal prices, while prices for fish oil are usually based on prices for
vegetable fats and oils, such as soybean and palm oils. Accordingly, the prices
for the Company's products are significantly influenced by worldwide supply and
demand relationships over which the Company has no control and tend to fluctuate
to a significant extent over the course of a year and from year to year.

          In November 1995, the Company ceased operations at its Dulac,
Louisiana plant.  The Company's decision was based on the anticipated capital
expenditures and operating capital requirements necessary to maintain the long-
term viability of the Dulac processing operation.  The entire harvesting effort
previously managed from this location, as well as a significant portion of the
processing assets, will be redeployed to other Company facilities.  Therefore,
the Company's harvesting efforts in future years are expected to remain
comparable to recent years, and the Company's processing capabilities will not
be significantly changed.

OIL AND GAS

          In fiscal 1995, the Company sold its U.S. natural gas producing
properties.  As a result, the Company's only significant remaining oil and gas
exploration and producing activity is the production of natural gas through a
joint venture in Bolivia in which the Company has a 25% interest.  Revenues of
$476,000 and an operating loss of $71,000 in the first quarter of fiscal 1996
compared unfavorably to revenues of $2.8 million and operating income of
$410,000 in the comparable fiscal 1995 quarter, which included revenues of
$928,000 and operating income of $696,000 from the Bolivian operations.  The
Company's fiscal 1996 Bolivian operating results were negatively impacted by
lower natural gas production volumes and higher operating expenses.

DISCONTINUED OPERATIONS-NATURAL  GAS SERVICES-COMPRESSION

          The Company's discontinued natural gas compression division's revenues
of $13.1 million and operating income of $720,000 for the fiscal 1996 period
compared unfavorably to the fiscal 1995 period revenues of $18.2 million and
operating income of $1.9 million.  As compared to fiscal 1995, the fiscal 1996
period operating results were lower due to the combination of reduced sales of
compressor units, lower rental rates, and a shorter reporting period as a result
of the Energy Industries Sale on December 15, 1995.

DISCONTINUED OPERATIONS-NATURAL GAS SERVICES-GATHERING, PROCESSING AND MARKETING

          Revenues of $13.0 million and an operating loss of $156,000 for the
first quarter of fiscal 1996 compared to revenues of $25.0 million and an
operating loss of $170,000 in the corresponding fiscal 1995 period.  The
decrease in revenues reflects the Company's decision to reduce its natural gas
trading activities. The loss generated in the current quarter from these
operations has been charged against the reserve for discontinued operations.

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