Zapata Corporation Announces Second Quarter Results for 2001
ROCHESTER, N.Y., Aug 10, 2001 (BUSINESS WIRE) -- Zapata Corporation (NYSE:ZAP) today announced its consolidated financial results for the quarter ended June 30, 2001.
For the quarter ended June 30, 2001, Zapata reported a net loss of $9.6 million or $4.03 per share compared to a net loss of $410,000 or $.17 per share for the comparable quarter last year. The net loss for the second quarter was primarily due to impairment charges on non-investment grade securities, partially offset by interest income.
For the six months ended June 30, 2001, Zapata reported a net loss of $10.8 million or $4.52 per share compared to a net loss of $3.1 million or $1.29 per share for the comparable period last year. The net loss for the six months was primarily due to impairment charges on non-investment grade securities and losses at Omega Protein, partially offset by interest income.
About Zapata Corporation
Zapata Corporation is a holding company that operates in the food segment and, until December 2000, the Internet segment. Zapata owns approximately 61% of the stock of Omega Protein Corporation (NYSE: OME), the nation's largest marine protein company, and approximately 38% of the stock of Viskase (NASDAQ:VCIC), a world leader in food packaging. Zapata is also the largest shareholder of Zap.Com Corporation (OTCBB: ZPCM).
"Safe Harbor" Statement Under the Private Securities Litigation Reform Act of 1995: The statements contained in this press release which are not historical fact are forward-looking statements based upon management's current expectations that are subject to risks, and uncertainties that could cause actual results, events and developments to differ materially from those set forth in or implied by forward looking statements. Factors that could cause actual results, events and developments to differ include, without limitation, those factors listed under the caption "Significant Factors That Could Affect Future Performance And Forward Looking Statements" in the Company's Annual Report on Form 10-K dated April 2, 2001 for the fiscal year ended December 31, 2000. Consequently all forward looking statements made herein are qualified by these cautionary statements and there can be no assurance that the actual results, events or developments referenced herein will occur or be realized. The Company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operation results.
ZAPATA CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except shares and per share amounts)
June 30,
2001 December 31,
(Unaudited) 2000
----------- -----------
ASSETS
Current assets:
Cash and cash equivalents $ 63,929 $ 19,237
Short-term investments 20,077 55,384
Accounts receivable, net 8,779 11,971
Inventories, net 36,482 37,032
Prepaid expenses and other current assets 1,846 2,150
----------- -----------
Total current assets 131,113 125,774
----------- -----------
Investments and other assets:
Long-term investments, available-for-sale 5,380 13,396
Other assets 34,043 33,315
----------- -----------
Total investments and other assets 39,423 46,711
Property and equipment, net 85,230 89,374
----------- -----------
Total assets $ 255,766 $ 261,859
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current maturities of long-term debt $ 1,267 $ 1,227
Accounts payable 2,097 2,766
Accrued liabilities 22,895 21,153
----------- -----------
Total current liabilities 26,259 25,146
----------- -----------
Long-term debt 14,254 14,827
Other liabilities 4,678 4,820
Minority interest 51,976 52,071
----------- -----------
Total liabilities 97,167 96,864
----------- -----------
Commitments and contingencies
Stockholders' equity:
Preferred stock,
($.01 par),
200,000 shares
authorized, 0
shares issued and
outstanding as of
June 30, 2001 and
December 31, 2000 -- --
Preference stock,
($.01 par),
1,800,000 shares
authorized, 0
shares issued and
outstanding as of
June 30, 2001 and
December 31, 2000 -- --
Common stock,
($0.01 par),
16,500,000 shares
authorized;
3,069,859 and
3,067,718 shares
issued; and
2,390,849 and
2,388,708 shares
outstanding on
June 30, 2001 and
December 31, 2000 31 31
Capital in excess
of par value 161,785 161,755
Retained earnings 28,550 39,389
Treasury stock, at
cost, 679,010
shares at
June 30, 2001 and
December 31, 2000 (31,668) (31,668)
Accumulated other
comprehensive loss (99) (4,512)
----------- -----------
Total
stockholders'
equity 158,599 164,995
----------- -----------
Total liabilities
and
stockholders'
equity $ 255,766 $ 261,859
=========== ===========
ZAPATA CORPORATION
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
Three months ended Six months ended
June 30, June 30,
---------------------- ----------------------
2001 2000 2001 2000
---------- ---------- ---------- ----------
Revenues $ 19,053 $ 20,873 38,099 40,261
Cost of sales 17,077 21,005 35,090 39,495
---------- ---------- ---------- ----------
Gross Profit (Loss) 1,976 (132) 3,009 766
Operating Expense:
Product development --- 971 --- 1,494
Selling, general
and administrative 2,968 3,966 5,948 8,185
Consulting (income)
expense --- (1,078) --- 1,057
Contract
termination
settlement --- --- (403) ---
---------- ---------- ---------- ----------
Total Operating
Expenses 2,968 3,859 5,545 10,736
---------- ---------- ---------- ----------
Operating Loss (992) (3,991) (2,536) (9,970)
---------- ---------- ---------- ----------
Other Income
(Expense):
Interest income,
net 700 2,575 1,670 3,933
Realized loss on
non-investment
grade securities (10,006) --- (10,923) ---
Impairment of
long-lived assets (232) --- (232) ---
Other (expense)
income, net (12) 115 9 (4)
---------- ---------- ---------- ----------
(9,550) 2,690 (9,476) 3,929
---------- ---------- ---------- ----------
Loss Before Income
Taxes and Minority
Interest (10,542) (1,301) (12,012) (6,041)
---------- ---------- ---------- ----------
Benefit from income
taxes 929 462 1,078 2,112
Minority interest in
net (loss) income of
consolidated
subsidiary (27) 429 136 846
---------- ---------- ---------- ----------
Net Loss $ (9,640) $ (410) (10,798) (3,083)
========== ========== ========== ==========
Per Share Data
(Basic and Diluted):
Net Loss Per Share $ (4.03) $ (0.17) $ (4.52) (1.29)
========== ========== ========== ==========
Weighted Average
Common Shares and
Common Share
Equivalents
Outstanding 2,391 2,389 2,390 2,389
========== ========== ========== ==========
CONTACT:
Zapata Corporation
Investor Relations
Lippert/Heilshorn & Associates, Inc.
212/838-3777