Zapata Corporation Announces Second Quarter Results
ROCHESTER, N.Y.--(BUSINESS WIRE)--Aug. 16, 2004--Zapata Corporation (NYSE:ZAP) today announced its consolidated financial results for the second quarter ended June 30, 2004.
Zapata reported consolidated net income of $837,000 or $.35 per diluted share on revenues of $92.3 million for the three months ended June 30, 2004 as compared to consolidated net income of $2.4 million or $.98 per diluted share on revenues of $27.3 million for the comparable period of 2003. The increase in revenues was primarily the result of the Company's acquisition of the majority of the outstanding common stock of Safety Components International, Inc. (OTCBB:SAFY) which occurred during September and October of 2003. On a consolidated basis, net income decreased primarily due to the recognition of a $1.9 million income tax provision resulting from the deconsolidation of Safety Components for tax purposes which occurred in April 2004. The deconsolidation resulted from a decline in Zapata's ownership of Safety Components below 80% which was attributable to stock option exercises by employees of Safety Components. Additionally, during the comparable period of the prior year, the Company recognized a tax benefit of $1.2 million resulting from the completion of an IRS audit.
Zapata reported consolidated net income of $2.6 million or $1.09 per diluted share on revenues of $186.6 million for the six months ended June 30, 2004 as compared to consolidated net income of $3.1 million or $1.30 per diluted share on revenues of $52.4 million for the comparable period of 2003. On a consolidated basis, the increase in revenues resulted primarily from the consolidation of Safety's revenues for the period. The decrease in consolidated net income resulted from the aforementioned tax effects of Safety's deconsolidation for tax purposes, a decrease in net income contributed by Omega Protein, and the prior year recognition of a tax benefit resulting from the completion of an IRS audit, all of which were largely offset by the consolidation of Safety's operating results.
Safety Components contributed approximately $65.9 million and $2.9 million to Zapata's consolidated revenues and net income, respectively, for the quarter ended June 30, 2004. For the six months ended June 30, 2004, Safety contributed approximately $135.1 million and $5.3 million to Zapata's consolidated revenues and net income, respectively. Due to the timing of Zapata's 2003 acquisition of Safety, no amounts related to Safety were included in the three and six month periods ended June 30, 2003.
Omega Protein Corporation (NYSE:OME) contributed approximately $26.5 million and $1.1 million to Zapata's consolidated revenues and net income, respectively, for the three months ended June 30, 2004 as compared to $27.3 million and $1.4 million for the comparable period of the prior year. For the six months ended June 30, 2004, Omega contributed approximately $51.5 million and $1.5 million to Zapata's consolidated revenues and net income, respectively as compared to $52.4 million and $3.0 million for the comparable period of the prior year. Omega Protein's three and six month results reflect reduced margins primarily due to higher cost of inventories carried forward from the 2003 fiscal year, partially offset by higher prices received during the current year. Omega's 2003 higher cost inventories resulted from the late season reduced fish catch, brought about by adverse weather conditions along the Atlantic Coast and Gulf of Mexico, combined with lower oil yields for Gulf of Mexico fish.
About Zapata:
Zapata is a holding company which currently has two operating companies, Safety Components International, Inc. and Omega Protein Corporation. As of June 30, 2004, the Company had a 79% ownership interest in Safety Components and a 59% ownership interest in Omega Protein. In addition, Zapata owns 98% of Zap.Com Corporation (OTCBB:ZPCM), which is a public shell company.
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, 2003. 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)
June 30,
2004 Dec. 31,
(unaudited) 2003
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ASSETS
Current assets:
Cash and cash equivalents $72,349 $43,934
Short-term investments 508 29,351
Accounts receivable, net 56,655 58,011
Inventories, net 65,201 63,957
Prepaid expenses and other current assets 7,147 6,045
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Total current assets 201,860 201,298
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Investments and other assets:
Intangible assets, net 7,054 8,121
Other assets 25,523 23,925
----------- ----------
Total investments and other assets 32,577 32,046
Property, plant and equipment, net 129,770 125,695
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Total assets $364,207 $359,039
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current maturities of long-term debt $5,196 $5,780
Accounts payable 15,599 27,935
Accrued and other current liabilities 34,351 27,278
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Total current liabilities 55,146 60,993
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Long-term debt 31,263 29,422
Pension liabilities 8,012 7,687
Other liabilities and deferred taxes 12,661 9,698
Minority interest 75,240 68,702
----------- ----------
Total liabilities 182,322 176,502
----------- ----------
Commitments and contingencies
Stockholders' equity:
Preferred stock, $.01 par; 200,000 shares
authorized; none issued or outstanding -- --
Preference stock, $.01 par; 1,800,000 shares
authorized; none issued or outstanding -- --
Common stock, $0.01 par, 16,500,000 shares
authorized, 3,070,325 shares issued and
2,391,315 shares outstanding 31 31
Capital in excess of par value 160,897 163,490
Retained earnings 53,743 51,108
Treasury stock, at cost, 679,010 shares (31,668) (31,668)
Accumulated other comprehensive loss (1,118) (424)
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Total stockholders' equity 181,885 182,537
----------- ----------
Total liabilities and stockholders' equity $364,207 $359,039
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ZAPATA CORPORATION
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands, Except Per Share Amounts)
Three Months Six Months
Ended Ended
June 30, June 30,
----------------- ------------------
2004 2003 2004 2003
-------- -------- --------- --------
Revenues $92,314 $27,292 $186,601 $52,393
Cost of revenues 76,123 21,114 155,258 39,793
-------- -------- --------- --------
Gross profit 16,191 6,178 31,343 12,600
Operating expense:
Selling, general and
administrative 9,262 2,738 18,849 6,414
-------- -------- --------- --------
Total operating expenses 9,262 2,738 18,849 6,414
-------- -------- --------- --------
Operating income 6,929 3,440 12,494 6,186
-------- -------- --------- --------
Other income (expense):
Interest (expense) income, net (325) 75 (638) 196
Other, net 49 (51) (227) (30)
-------- -------- --------- --------
(276) 24 (865) 166
-------- -------- --------- --------
Income before income taxes and
minority
interest 6,653 3,464 11,629 6,352
-------- -------- --------- --------
Provision for income taxes (4,280) (149) (6,611) (1,238)
Minority interest in net income
of
consolidated subsidiaries (1,536) (951) (2,383) (2,000)
-------- -------- --------- --------
Net income to common stockholders $837 $2,364 $2,635 $3,114
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Earnings per share:
Basic $0.35 $0.99 $1.10 $1.30
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Diluted $0.35 $0.98 $1.09 $1.30
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Weighted average common shares
outstanding:
Basic 2,391 2,391 2,391 2,391
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Diluted 2,419 2,402 2,416 2,401
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CONTACT: Zapata Corporation
Leonard DiSalvo, 585/242-8703
http://www.zapatacorp.com
SOURCE: Zapata Corporation