Zapata Corporation Announces First Quarter Results
ROCHESTER, N.Y.--(BUSINESS WIRE)--May 9, 2006--Zapata Corporation (NYSE: ZAP) today announced its consolidated financial results for the first quarter ended March 31, 2006.
Zapata reported consolidated net income of $486,000 or $.03 per diluted share on revenues of $28.3 million for the three months ended March 31, 2006 as compared to consolidated net income of $78,000 or $.00 per diluted share on revenues of $23.8 million for the comparable period of 2005. The increase in net income resulted primarily from an increase in income recognized by Omega Protein Corporation (NYSE: OME) and an increase in interest income recognized by Zapata Corporate, largely offset by the lack of consolidation of Safety Components International, Inc. (OTCBB: SAFY) during the quarter ended March 31, 2006 as compared to the same period of the prior year. Safety's operating results have not been consolidated since the completion of the sale.
Omega Protein contributed approximately $28.3 million and $1.5 million to Zapata's consolidated revenues and net income, respectively, for the three months ended March 31, 2006 as compared to $23.8 million and $64,000 for the comparable period of the prior year. These increases were primarily due to higher sales prices experienced in the current quarter as compared to the comparable period of the prior year.
About Zapata:
Zapata is a holding company which currently has one operating company, Omega Protein Corporation, in which the Company had a 58% ownership interest in at March 31, 2006. In addition, Zapata owns 98% of Zap.Com Corporation (OTCBB: ZPCM), which is a public shell company.
On December 8, 2005, Zapata announced that its Board of Directors had authorized management to seek a buyer for its 58% ownership interest in Omega Protein. There can be no assurance, that a satisfactory transaction involving Omega Protein will emerge, the timing of any such transaction, if any, or whether the transaction will ultimately enhance Zapata stockholder value or how that value will be realized.
The Company makes certain reports available free of charge on its website at www.zapatacorp.com as soon as reasonably practicable after this information is electronically filed, or furnished to, the United States Securities and Exchange Commission.
"Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995: The statements contained in this release which are not historical facts are "forward-looking" statements that involve risks and/or uncertainties as described in Item 1A., "Risk Factors" in the Company's Annual Report on Form 10-K for the period ended December 31, 2005. You are cautioned not to place undue reliance on any forward-looking statements. The Company's actual actions or results may differ materially from those expected or anticipated in the forward-looking statements. The Company does not undertake any obligation to release publicly any revisions to these forward-looking statements to reflect events or circumstances after the date of this press release.
ZAPATA CORPORATION
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(In Thousands, Except Per Share Amounts)
March 31, December 31,
2006 2005
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ASSETS
Current assets:
Cash and cash equivalents $100,363 $ 103,373
Accounts receivable, net 21,123 24,170
Inventories, net 49,063 46,860
Prepaid expenses and other current assets 3,468 2,314
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Total current assets 174,017 176,717
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Other assets, net 22,838 23,652
Property, plant and equipment, net 97,298 93,985
--------- ------------
Total assets $294,153 $ 294,354
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current maturities of long-term debt $ 2,470 $ 2,443
Accounts payable 3,128 3,989
Accrued and other current liabilities 14,471 15,850
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Total current liabilities 20,069 22,282
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Long-term debt 27,057 27,658
Pension liabilities 12,042 11,810
Other liabilities and deferred taxes 1,502 983
--------- ------------
Total liabilities 60,670 62,733
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Commitments and contingencies
Minority interest 61,097 59,937
Stockholders' equity:
Preferred stock, $.01 par; 1,600,000 shares
authorized; none issued or outstanding -- --
Preference stock, $.01 par; 14,400,000 shares
authorized; none issued or outstanding -- --
Common stock, $0.01 par, 132,000,000 shares
authorized; 24,614,536 and 24,581,636 shares
issued; and 19,182,456 and 19,149,556 shares
outstanding, respectively 246 246
Capital in excess of par value 162,948 162,730
Retained earnings 45,613 45,127
Treasury stock, at cost, 5,432,080 shares (31,668) (31,668)
Accumulated other comprehensive loss (4,753) (4,751)
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Total stockholders' equity 172,386 171,684
--------- ------------
Total liabilities and stockholders' equity $294,153 $ 294,354
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ZAPATA CORPORATION
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands, Except Per Share Amounts)
Three Months Ended
March 31,
2006 2005
-------- --------
Revenues $28,303 $23,831
Cost of revenues 21,311 20,775
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Gross profit 6,992 3,056
Operating expenses:
Selling, general and administrative 4,854 4,442
Loss resulting from natural disaster 240 --
-------- --------
Total operating expenses 5,094 4,442
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Operating income (loss) 1,898 (1,386)
-------- --------
Other income (expense):
Interest income 1,067 313
Interest expense (524) (266)
Other, net (18) (39)
-------- --------
525 8
Income (loss) before income taxes and minority
interest 2,423 (1,378)
(Provision) benefit for income taxes (874) 431
Minority interest in net income of consolidated
subsidiaries (1,063) (43)
-------- --------
Net income (loss) from continuing operations 486 (990)
-------- --------
Discontinued operations:
Income before taxes and minority interest (including
loss on disposal) -- 3,077
Provision for income taxes -- (1,588)
Minority interest -- (421)
-------- --------
Net income from discontinued operations -- 1,068
Net income to common stockholders $ 486 $ 78
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Net income (loss) per common share - basic and
diluted
Income (loss) from continuing operations $ 0.03 $ (0.05)
Discontinued operations, net of income taxes
and minority interest 0.00 0.05
-------- --------
Income per common share - basic and diluted $ 0.03 $ 0.00
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Weighted average common shares outstanding:
Basic 19,171 19,133
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Diluted 19,354 19,411
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CONTACT: Zapata Corporation
Leonard DiSalvo, 585-242-8703
http://www.zapatacorp.com
SOURCE: Zapata Corporation