Zapata Corporation Announces First Quarter Results
ROCHESTER, N.Y.--(BUSINESS WIRE)--May 6, 2005--Zapata Corporation (NYSE: ZAP) today announced its consolidated financial results for the first quarter ended March 31, 2005.
Zapata reported consolidated net income of $78,000 or $.00 per diluted share on revenues of $82.4 million for the three months ended March 31, 2005 as compared to consolidated net income of $1.8 million or $.09 per diluted share on revenues of $94.3 million for the comparable period of 2004. On a consolidated basis, the decrease in net income resulted from decreased net income at Safety Components International, Inc. (OTCBB: SAFY) and Omega Protein Corporation (NYSE: OME).
Safety Components contributed approximately $58.6 million and $1.6 million to Zapata's consolidated revenues and net income, respectively, for the quarter ended March 31, 2004, as compared to $69.2 million and $2.4 million for the comparable period of the prior year. Safety experienced a decrease in net sales due to decreased overall demand in the automotive market which was partially offset by the favorable effect of changes in foreign currency exchange rates compared to the quarter ended March 31, 2004.
Omega Protein contributed approximately $23.8 million and $64,000 to Zapata's consolidated revenues and net income, respectively, for the three months ended March 31, 2005 as compared to $25.1 million and $384,000 for the comparable period of the prior year. These decreases were primarily due to higher cost inventories carried forward from fiscal 2004, partially offset by increased sales prices.
About Zapata:
Zapata is a holding company which currently has two operating companies, Safety Components International, Inc. and Omega Protein Corporation. As of March 31, 2005, the Company had a 78% ownership interest in Safety Components and a 58% ownership interest in Omega Protein. In addition, Zapata owns 98% of Zap.Com Corporation (OTCBB: ZPCM), which is a public shell company.
Zapata effected an eight-for-one stock split of its outstanding shares of common stock, par value $.01 per share, effective at the close of business on April 6, 2005. All share information on the financial statements and in this release, including per share amounts, have been proportionally adjusted as if the eight-for-one stock split had been effective as of the date or period presented.
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 the "Significant Factors That Could Affect Future Performance and Forward-Looking Statements" in the Company's Annual Report on Form 10-K for the year ended December 31, 2004. 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
CONDENSED CONSOLIDATED BALANCE SHEETS
(In Thousands, Except Per Share Amounts)
March 31,
2005 December
(unaudited) 31, 2004
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ASSETS
Current assets:
Cash and cash equivalents $65,409 $67,433
Accounts receivable, net 51,216 53,376
Assets held in subsidiary deferred compensation
plan 4,706 4,361
Inventories, net 69,335 67,324
Prepaid expenses and other current assets 6,618 6,515
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Total current assets 197,284 199,009
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Other assets:
Intangible assets, net 5,584 6,158
Other assets 20,302 20,021
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Total other assets 25,886 26,179
Property, plant and equipment, net 137,223 137,301
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Total assets $360,393 $362,489
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current maturities of long-term debt $4,430 $4,924
Accounts payable 17,226 19,395
Accrued and other current liabilities 30,781 32,880
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Total current liabilities 52,437 57,199
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Long-term debt 21,964 19,672
Pension liabilities 9,869 9,677
Other liabilities and deferred taxes 10,232 10,117
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Total liabilities 94,502 96,665
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Minority interest 81,259 79,510
Commitments and contingencies
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, 24,564,600 shares issued and
19,132,520 shares outstanding 246 31
Capital in excess of par value 160,317 160,671
Retained earnings 54,919 54,841
Treasury stock, at cost, 5,432,080 shares (31,668) (31,668)
Accumulated other comprehensive income 818 2,439
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Total stockholders' equity 184,632 186,314
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Total liabilities and stockholders' equity $360,393 $362,489
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ZAPATA CORPORATION
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands, Except Per Share Amounts)
Three Months
Ended
March 31,
2005 2004
-------- --------
Revenues $82,443 $94,287
Cost of revenues 70,975 79,136
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Gross profit 11,468 15,151
Operating expenses:
Selling, general and administrative 9,288 9,587
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Total operating expenses 9,288 9,587
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Operating income 2,180 5,564
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Other income (expense):
Interest income 325 391
Interest expense (441) (704)
Other, net (365) (276)
-------- --------
(481) (589)
Income before income taxes and minority interest 1,699 4,975
Provision for income taxes (1,157) (2,330)
Minority interest in net income of consolidated
subsidiaries (464) (847)
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Net income to common stockholders $78 $1,798
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Basic and diluted earnings per share $0.00 $0.09
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Weighted average common shares outstanding:
Basic 19,133 19,131
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Diluted 19,411 19,293
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CONTACT: Zapata Corporation
Leonard DiSalvo, 585-242-8703
http://www.zapatacorp.com
SOURCE: Zapata Corporation