Zapata Corporation Announces Third Quarter 2007 Results
ROCHESTER, N.Y.--(BUSINESS WIRE)--Oct. 30, 2007--Zapata Corporation (NYSE: ZAP) today announced its consolidated financial results for the quarter ended September 30, 2007.
For the quarter ended September 30, 2007, Zapata reported consolidated net income of $490,000 or $.03 per diluted share as compared to a consolidated net loss of $5.8 million or ($.30) per diluted share for the comparable period in the prior year. For the nine months ended September 30, 2007, Zapata reported consolidated net income of $1.6 million or $0.08 per diluted share as compared to consolidated net loss of $5.7 million or ($.30) per diluted share for the comparable period in the prior year.
The change from a net loss to net income for both the three and nine month periods ending September 30, 2007 was primarily the result of the recognition of an impairment charge during the third quarter of 2006 relating to the sale of the Company's Omega Protein common stock. In December 2006, the Company completed the disposition of its Omega Protein Corporation common stock for proceeds of $76.5 million and is searching for candidates for acquisition.
About Zapata:
Zapata is a holding company which has approximately $153.6 million in consolidated cash, cash equivalents and short-term and long-term investments at September 30, 2007 and currently 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 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 "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2006. There is no assurance that Zapata Corporation will successfully identify, pursue, or operate any future businesses or operations in the future. 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
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(In Thousands, Except Share and Per Share Amounts)
September 30, December 31,
2007 2006
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ASSETS
Current assets:
Cash and cash equivalents $ 785 $136,889
Short-term investments 145,337 15,199
Other receivables 648 279
Prepaid expenses and other current assets 128 346
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Total current assets 146,898 152,713
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Long-term investments 7,490 --
Other assets, net 10,271 11,015
Property, plant and equipment, net -- 3
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Total assets $ 164,659 $163,731
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 123 $ 417
Accrued expenses and other current
liabilities 1,226 1,806
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Total current liabilities 1,349 2,223
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Pension liabilities 673 717
Other liabilities and deferred income taxes 1,470 1,489
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Total liabilities 3,492 4,429
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Commitments and contingencies
Minority interest 34 34
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; 24,708,414 and
24,616,536 shares issued; 19,276,334 and
19,184,456 shares outstanding 247 246
Capital in excess of par value 164,245 164,454
Retained earnings 36,295 34,653
Treasury stock, at cost, 5,432,080 shares (31,668) (31,668)
Accumulated other comprehensive loss (7,986) (8,417)
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Total stockholders' equity 161,133 159,268
------------- ------------
Total liabilities and stockholders'
equity $ 164,659 $163,731
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ZAPATA CORPORATION
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands, Except Per Share Amounts)
Three Months Ended Nine Months Ended
September 30, September 30,
------------------- -----------------
2007 2006 2007 2006
---------- -------- -------- --------
Revenues $ -- $ -- $ -- $ --
Cost of revenues -- -- -- --
---------- -------- -------- --------
Gross profit -- -- -- --
Operating expense:
Selling, general and
administrative 866 633 2,536 4,160
---------- -------- -------- --------
Total operating
expenses 866 633 2,536 4,160
---------- -------- -------- --------
Operating loss (866) (633) (2,536) (4,160)
---------- -------- -------- --------
Other income:
Interest income 1,966 992 5,866 2,743
Other, net 52 45 86 239
---------- -------- -------- --------
2,018 1,037 5,952 2,982
Income (loss) before income
taxes and minority interest 1,152 404 3,416 (1,178)
(Provision) benefit for income
taxes (663) (123) (1,775) 412
Minority interest in net income
of
consolidated subsidiaries 1 -- 1 1
---------- -------- -------- --------
Net income (loss) from
continuing operations 490 281 1,642 (765)
Discontinued operations:
Loss before taxes and
minority interest (including
loss on disposal) -- (8,557) -- (4,439)
Benefit for income taxes -- 3,197 -- 1,579
Minority interest -- (762) -- (2,091)
---------- -------- -------- --------
Net loss from discontinued
operations -- (6,122) -- (4,951)
Net income (loss) to common
stockholders $ 490 $(5,841) $ 1,642 $(5,716)
========== ======== ======== ========
Net income (loss) per common
share:
From continuing operations:
Basic $ .03 $ .02 $ .09 $ (.04)
Diluted .03 .02 .08 (.04)
---------- -------- -------- --------
From discontinued operations:
Basic $ -- $ (.32) $ -- $ (.26)
Diluted -- (.32) -- (.26)
---------- -------- -------- --------
Net income (loss) per common
share:
Basic $ .03 $ (.30) $ .09 $ (.30)
========== ======== ======== ========
Diluted $ .03 $ (.30) $ .08 $ (.30)
========== ======== ======== ========
Weighted average common shares
outstanding:
Basic 19,276 19,182 19,223 19,179
========== ======== ======== ========
Diluted 19,395 19,410 19,425 19,179
========== ======== ======== ========
CONTACT: Zapata Corporation
Leonard DiSalvo, 585-242-8703
http://www.zapatacorp.com
SOURCE: Zapata Corporation