Zapata Corporation Announces Third Quarter Results
ROCHESTER, N.Y., Nov 14, 2003 (BUSINESS WIRE) -- Zapata Corporation (NYSE:ZAP) today announced its consolidated financial results for the third quarter of 2003.
For the quarter ended September 30, 2003, Zapata reported a net loss of $2.4 million or $0.97 per share on revenues of $32.2 million as compared to net income of $2.4 million or $1.00 per share on revenues of $35.0 million for the comparable quarter last year. Zapata's majority-owned subsidiary, Omega Protein Corporation (NYSE:OME), reported net income of $740,000 on revenues of $32.2 million for the quarter ended September 30, 2003 as compared to net income of $3.6 million on revenues of $35.0 million for the comparable quarter last year.
For the nine month period ended September 30, 2003, Zapata reported net income of $799,000 or $0.33 per share on revenues of $84.5 million as compared to net income of $4.8 million or $2.02 per share on revenues of $85.7 million for the comparable period of the prior year. Omega Protein reported net income of $5.8 million on revenues of $84.5 million for the nine month period ended September 30, 2003 as compared to net income of $9.3 million on revenues of $85.7 for the comparable period of the prior year.
On a consolidated basis, the decrease in net income for the three and nine month periods ended September 30, 2003 was primarily due to Zapata Corporate's recognition of an income tax valuation allowance combined with Omega's decrease in net income.
As previously announced, Zapata purchased an 84% ownership interest in Safety Components International, Inc. during the third and fourth quarters of 2003. As of September 30, 2003, Zapata had purchased only a 54% ownership interest in Safety, with the balance of its ownership interest being purchased thereafter. Accordingly, Zapata has consolidated amounts related to a 54% ownership interest in Safety into Zapata's Condensed Consolidated Balance Sheet as of September 30, 2003. Due to the timing of the acquisition, no amounts related to Safety Components' results of operations have been included in Zapata's Condensed Consolidated Statements of Operations for the three or nine month periods ended September 30, 2003. Safety's results of operations will be included in Zapata's Consolidated Statements of Operations beginning in the fourth quarter of 2003.
About Zapata Corporation
Zapata is a holding company which has two operating companies, Safety Components International, Inc. and Omega Protein Corporation. Currently, the Company has an 84% ownership interest in Safety Components and a 60% ownership interest in Omega Protein. Safety Components is a leading, low-cost, independent supplier of automotive airbag fabric and cushions and technical fabrics and trades on the over-the counter electronic bulletin board under the symbol "SAFY." Omega Protein is the nation's largest marine protein company and trades on the New York Stock Exchange under the symbol "OME." In addition, Zapata owns 98% of Zap.Com Corporation ("Zap.Com"), which is a public shell company and trades on the over-the-counter electronic bulletin board under the symbol "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 Quarterly Report on Form 10-Q for the period ended September 30, 2003. 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)
Sept. 30,
2003 Dec. 31,
(Unaudited) 2002
------------ ------------
ASSETS
Current assets:
Cash and cash equivalents $ 73,828 $ 80,643
Short-term investments 8,809 35,928
Accounts receivable, net 59,720 13,070
Inventories, net 72,540 41,939
Prepaid expenses and other current assets 4,333 4,015
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Total current assets 219,230 175,595
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Investments and other assets:
Long-term investments, available for
sale -- 4,016
Other assets 26,065 24,524
------------ ------------
Total investments and other assets 26,065 28,540
Property, plant, equipment and other
long-lived assets, net 134,660 80,842
------------ ------------
Total assets $ 379,955 $ 284,977
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current maturities of long-term debt $ 8,884 $ 1,270
Accounts payable 22,064 2,718
Accrued and other current liabilities 34,614 23,027
------------ ------------
Total current liabilities 65,562 27,015
------------ ------------
Long-term debt 31,403 14,239
Pension liabilities 11,464 11,835
Other liabilities and deferred taxes 10,367 1,608
Minority interest 84,352 55,018
------------ ------------
Total liabilities 203,148 109,715
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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; 3,069,859 shares
issued; 2,391,315 and 2,390,849 shares
outstanding, respectively 31 31
Capital in excess of par value 162,809 162,037
Retained earnings 51,015 50,216
Treasury stock, at cost, 679,010 shares (31,668) (31,668)
Accumulated other comprehensive loss (5,380) (5,354)
------------ ------------
Total stockholders' equity 176,807 175,262
------------ ------------
Total liabilities and stockholders'
equity $ 379,955 $ 284,977
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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,
-------------------- --------------------
2003 2002 2003 2002
--------- --------- --------- ---------
Revenues $ 32,151 $ 34,992 $ 84,544 $ 85,708
Cost of revenues 28,553 27,259 68,346 64,514
--------- --------- --------- ---------
Gross profit 3,598 7,733 16,198 21,194
Operating expense:
Selling, general and
administrative 3,512 2,089 9,925 8,653
--------- --------- --------- ---------
Total operating expenses 3,512 2,089 9,925 8,653
--------- --------- --------- ---------
Operating income 86 5,644 6,273 12,541
--------- --------- --------- ---------
Other (expense) income:
Interest (expense) income,
net (2) 225 194 589
Other, net (12) (65) (42) (161)
--------- --------- --------- ---------
(14) 160 152 428
--------- --------- --------- ---------
Income before income taxes
and minority interest 72 5,804 6,425 12,969
--------- --------- --------- ---------
Provision for income taxes (2,095) (1,990) (3,333) (4,485)
Minority interest in net
income of consolidated
subsidiaries (294) (1,422) (2,293) (3,650)
--------- --------- --------- ---------
Net (loss) income to common
stockholders $ (2,317) $ 2,392 $ 799 $ 4,834
========= ========= ========= =========
Net (loss) income per share:
Basic and diluted $ (0.97) $ 1.00 $ 0.33 $ 2.02
========= ========= ========= =========
Weighted average common
shares outstanding:
Basic 2,391 2,391 2,391 2,391
========= ========= ========= =========
Diluted 2,391 2,395 2,403 2,395
========= ========= ========= =========
SOURCE: Zapata Corp.
Zapata Corporation, Rochester
Leonard DiSalvo, 585-242-8703
www.zapatacorp.com