Zapata Corporation Announces Second Quarter Results
ROCHESTER, N.Y., Aug 08, 2006 (BUSINESS WIRE) -- Zapata Corporation (NYSE: ZAP) today announced its consolidated financial results for the second quarter ended June 30, 2006.
Zapata reported a consolidated net loss of $359,000 or ($.02) per diluted share on consolidated revenues of $33.3 million for the three months ended June 30, 2006 as compared to consolidated net income of $464,000 or $0.02 per diluted share on consolidated revenues of $27.5 million for the three months ended June 30, 2005. On a consolidated basis, the change from the recognition of net income to net loss resulted primarily from the lack of consolidation of Safety Components International, Inc. (OTCBB: SAFY) during the three months ended June 30, 2006 as compared to the same period of the prior year. Safety contributed approximately $1.3 million to Zapata's consolidated net income for the three months ended June 30, 2005. Safety's operating results have not been consolidated since the completion of the sale during December 2005.
Zapata reported consolidated net income of $127,000 or $0.01 per diluted share on consolidated revenues of $61.6 million for the six months ended June 30, 2006 as compared to consolidated net income of $542,000 or $0.03 per diluted share on consolidated revenues of $51.3 million for the six months ended June 30, 2005. On a consolidated basis, the decrease in net income resulted primarily from the lack of consolidation of Safety during the six months ended June 30, 2006 as compared to the same period of the prior year. Safety contributed approximately $3.0 million to Zapata's consolidated net income for the six months ended June 30, 2005.
Omega Protein Corporation (NYSE: OME) contributed approximately $33.3 million and $364,000 in income to Zapata's consolidated revenues and net loss, respectively, for the three months ended June 30, 2006 as compared to a $27.5 million contribution to revenues and a $383,000 contribution to net income for the comparable period of the prior year. For the six months ended June 30, 2006, Omega contributed approximately $61.6 million and $1.8 million to Zapata's consolidated revenues and net income, respectively as compared to $51.3 million and $447,000 for the comparable period of the prior year. Omega Protein's second quarter results, as well as the results for the first six months of 2006, reflect increased margins primarily due to higher sales prices received during the current year, partially offset by increased costs of production.
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 June 30, 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)
June 30, December 31,
2006 2005
------------ ------------
ASSETS
Current assets:
Cash and cash equivalents $ 88,326 $ 103,373
Accounts receivable, net 27,763 24,170
Inventory 58,920 46,860
Prepaid expenses and other current assets 4,713 2,314
------------ ------------
Total current assets 179,722 176,717
------------ ------------
Other assets, net 23,101 23,652
Property, plant and equipment, net 101,430 93,985
------------ ------------
Total assets $ 304,253 $ 294,354
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current maturities of long-term debt $ 2,386 $ 2,443
Accounts payable 1,450 3,989
Accrued and other current liabilities 26,539 15,850
------------ ------------
Total current liabilities 30,375 22,282
------------ ------------
Long-term debt 26,454 27,658
Pension liabilities 11,842 11,810
Other liabilities and deferred taxes 1,885 983
------------ ------------
Total liabilities 70,556 62,733
------------ ------------
Minority interest 61,692 59,937
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; 24,614,536 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 162,929 162,730
Retained earnings 45,254 45,127
Treasury stock, at cost, 5,432,080 shares (31,668) (31,668)
Accumulated other comprehensive loss (4,756) (4,751)
------------ ------------
Total stockholders' equity 172,005 171,684
------------ ------------
Total liabilities and stockholders'
equity $ 304,253 $ 294,354
============ ============
ZAPATA CORPORATION
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands, Except Per Share Amounts)
Three Months Six Months
Ended Ended
June 30, June 30,
----------------- -----------------
2006 2005 2006 2005
-------- -------- -------- --------
Revenues $33,338 $27,510 $61,641 $51,341
Cost of revenues 28,002 23,693 49,313 44,468
-------- -------- -------- --------
Gross profit 5,336 3,817 12,328 6,873
Operating expense:
Selling, general and
administrative 5,678 4,387 10,533 8,829
Loss resulting from natural
disaster 193 -- 433 --
-------- -------- -------- --------
Total operating expenses 5,871 4,387 10,966 8,829
-------- -------- -------- --------
Operating (loss) income (535) (570) 1,362 (1,956)
-------- -------- -------- --------
Other income (expense):
Interest income 1,092 388 2,159 701
Interest expense (528) (242) (1,052) (508)
Other, net 86 247 68 208
-------- -------- -------- --------
650 393 1,175 401
-------- -------- -------- --------
Income (loss) before income taxes
and minority interest 115 (177) 2,537 (1,555)
(Provision) benefit for income
taxes (209) (28) (1,082) 403
Minority interest in net income of
consolidated subsidiaries (265) (276) (1,328) (319)
-------- -------- -------- --------
Net (loss) income from continuing
operations (359) (481) 127 (1,471)
-------- -------- -------- --------
Discontinued operations:
Income before taxes and
minority interest (including
loss on disposal) -- 2,639 -- 5,716
Provision for income taxes -- (1,269) -- (2,857)
Minority interest -- (425) -- (846)
-------- -------- -------- --------
Net income from discontinued
operations -- 945 -- 2,013
Net (loss) income to common
stockholders $ (359) $ 464 $ 127 $ 542
======== ======== ======== ========
Net (loss) income per common share
- basic and diluted
(Loss) income from continuing
operations $ (0.02) $ (0.03) $ 0.01 $ (0.08)
Discontinued operations, net
of income taxes and minority
interest -- 0.05 -- 0.11
-------- -------- -------- --------
(Loss) income per common share -
basic and diluted $ (0.02) $ 0.02 $ 0.01 $ 0.03
======== ======== ======== ========
Weighted average common shares
outstanding:
Basic 19,182 19,135 19,176 19,134
======== ======== ======== ========
Diluted 19,182 19,345 19,383 19,379
======== ======== ======== ========
SOURCE: Zapata Corporation
Zapata Corporation
Leonard DiSalvo, CFO, 585-242-8703
http://www.zapatacorp.com