Zapata Corporation Announces Second Quarter Results for 2002
ROCHESTER, N.Y., Aug 14, 2002 (BUSINESS WIRE) -- Zapata Corporation (NYSE:ZAP) today announced its consolidated financial results for the three months and six months ended June 30, 2002.
For the quarter ended June 30, 2002, Zapata reported net income of $1.2 million or $0.51 per share compared to a net loss of $9.9 million or $4.16 per share for the comparable quarter last year. The net income for the second quarter was primarily due to a profitable quarter reported by Zapata's majority-owned subsidiary, Omega Protein Corporation (NYSE:OME). Omega Protein reported net income of $2.9 million for the three months ended June 30, 2002 as compared to a net loss of $527,000 for the same period of the previous year.
For the six months ended June 30, 2002, Zapata reported net income of $2.4 million or $1.02 per share compared to a net loss of $11.1 or $4.65 per share for the comparable period of last year. The net income for this period was primarily due to net income at Omega Protein. Omega reported net income of $5.7 million or $0.23 per share for the six months ended June 30, 2002 as compared to a net loss of $904,000 or $0.04 per share for the same period of the previous year.
Omega attributes their net income for the three months and six months ended June 30, 2002 primarily to continued stronger world prices for their products, compared with the previous year's pricing. This strong and stable pricing was the result of continued tight world supplies of fish meal and fish oil.
About Zapata Corporation
Zapata Corporation is a holding company which currently operates in the food segment through its majority owned subsidiary, Omega Protein Corporation, which is the nation's largest marine protein company. In addition, Zapata holds approximately 98% of the outstanding stock of Zap.Com Corporation (OTCBB: "ZPCM"), which is currently a public shell company.
"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, the uncertainty of the results of an ongoing Internal Revenue Service audit of the tax fiscal years ended September 30, 1997-2001, which may affect the Company's ability to realize certain tax benefits resulting from capital losses recognized in Fiscal Year 2001, and 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 March 28, 2002 for the fiscal year ended December 31, 2001. Additional factors that could cause actual results, events and developments to differ include, without limitation, Omega's ability to meet its raw material requirements through its annual menhaden harvest, which is subject to fluctuations due to natural conditions over which Omega has no control, such as varying fish population, adverse weather conditions and disease; the impact of worldwide supply and demand relationships on prices for Omega's products; fluctuations in Omega's quarterly operating results due to the seasonality of their business and its deferral of inventory sales based on worldwide prices for competing products; and the risk that the United States government may impose restrictions in the future that impede Omega Protein's operations, including harvesting menhaden. 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.
ZAPATA CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In Thousands, Except Per Share Amounts)
June 30, 2002 December 31,
(Unaudited) 2001
----------------- ------------
ASSETS
Current assets:
Cash and cash equivalents $ 40,573 $ 62,477
Short-term investments 67,029 33,948
Accounts receivable, net 13,772 22,427
Inventories, net 39,560 37,670
Prepaid expenses and other current
assets 2,120 1,979
------------------- ----------
Total current assets 163,054 158,501
Investments and other assets:
Long-term investments, available for
sale 9,120 --
Other assets 28,069 30,937
------------------- ----------
Total investments and other
assets 37,189 30,937
Property and equipment, net 82,464 82,239
------------------- ----------
Total assets $ 282,707 $ 271,677
=================== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current maturities of long-term debt $ 1,231 $ 1,296
Accounts payable 3,444 1,605
Accrued liabilities 27,035 21,864
------------------- ----------
Total current liabilities 31,710 24,765
------------------- ----------
Long-term debt 14,884 15,510
Other liabilities and deferred taxes 7,536 7,952
Minority interest 55,827 53,599
------------------- ----------
Total liabilities 109,957 101,826
------------------- ----------
Commitments and contingencies
Stockholders' equity:
Preferred stock, ($.01 par), 200,000
shares authorized, 0 shares
issued and outstanding as of June
30, 2002 and December 31, 2001 -- --
Preference stock, ($.01 par),
1,800,000 shares authorized, 0
shares
issued and outstanding as of June
30, 2002 and December 31, 2001 -- --
Common stock, ($0.01 par), 16,500,000
shares authorized,
3,069,859 shares issued, and
2,390,849 shares outstanding on
June 30, 2002 and December 31, 2001 31 31
Capital in excess of par value 162,030 161,869
Retained earnings 46,185 43,743
Treasury stock, at cost, 679,010
shares at June 30, 2002
and December 31, 2001 (31,668 ) (31,668 )
Accumulated other comprehensive loss (3,828 ) (4,124 )
------------------- ----------
Total stockholders' equity 172,750 169,851
------------------- ----------
Total liabilities and stockholders'
equity $ 282,707 $ 271,677
=================== ==========
ZAPATA CORPORATION
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands, Except Per Share Amounts)
Three Months Ended Six Months Ended
June 30, June 30,
------------------- --------------------
2002 2001 2002 2001
--------- --------- --------- ----------
Revenues $ 27,237 $ 19,053 $ 50,716 $ 38,099
Cost of revenues 20,331 17,011 37,255 35,024
--------- --------- --------- ----------
Gross profit 6,906 2,042 13,461 3,075
Operating expense (income):
Selling, general and
administrative 3,436 3,824 6,564 6,804
Contract termination
settlement -- -- -- (403)
--------- --------- --------- ----------
Total operating
expenses 3,436 3,824 6,564 6,401
--------- --------- --------- ----------
Operating income (loss) 3,470 (1,782) 6,897 (3,326)
--------- --------- --------- ----------
Other income (expense):
Interest income, net 167 700 364 1,670
Realized loss on non-
investment grade
securities -- (10,006) -- (10,923)
Impairment of long-lived
assets -- (232) -- (232)
Other, net (44) (12) (96) 9
--------- --------- --------- ----------
123 (9,550) 268 (9,476)
--------- --------- --------- ----------
Income (loss) before income
taxes and
minority interest 3,593 (11,332) 7,165 (12,802)
--------- --------- --------- ----------
(Provision) benefit for
income taxes (1,225) 1,213 (2,495) 1,362
Minority interest in net
(income) loss
of consolidated subsidiary (1,150) 173 (2,228) 336
--------- --------- --------- ----------
Net income (loss) to common
stockholders $ 1,218 $ (9,946) $ 2,442 $ (11,104)
========= ========= ========= ==========
Income (loss) per share
(basic and diluted) $ 0.51 $ (4.16) $ 1.02 $ (4.65)
========= ========= ========= ==========
Weighted average common
shares outstanding:
Basic 2,391 2,391 2,391 2,390
========= ========= ========= ==========
Diluted 2,396 2,391 2,395 2,390
========= ========= ========= ==========
CONTACT:
Zapata Corporation
Leonard DiSalvo, 585/242-8703
www.zapatacorp.com