Zapata Corporation Announces Third Quarter Results for 2001
ROCHESTER, N.Y.--(BUSINESS WIRE)--Nov. 14, 2001--Zapata Corporation (NYSE:ZAP) today announced its consolidated financial results for the quarter ended September 30, 2001.
For the quarter ended September 30, 2001, Zapata reported net income of $14.3 million or $5.99 per share compared to a net loss of $7.4 million or $3.10 per share for the comparable quarter last year. The net income for the third quarter was due to a profitable quarter reported by Zapata's majority-owned subsidiary, Omega Protein Corporation (NYSE:OME), and a benefit from income taxes of approximately $12.5 million resulting from capital loss carry-backs generated through the sale of Zapata's shares of Viskase Corporation (Nasdaq:VCIC) and other securities. Omega Protein reported net income of $2.4 million for the three months ended September 30, 2001, as compared to a net loss of $10.2 million for the same period of the previous year. Omega Protein's net income for the three months ended September 30, 2001 was primarily the result of increased sales volumes of fishmeal and fish oil as well as modest increases in product prices. Omega Protein's loss for the comparable quarter of the previous year was largely the result of a $13.7 million inventory write-down.
For the nine months ended September 30, 2001, Zapata reported net income of $3.5 million or $1.47 per share compared to a net loss of $10.5 million or $4.41 per share for the comparable period last year. Net income for this period was due to favorable results reported by Omega Protein in addition to the Zapata's benefit for income taxes as discussed above, offset by other than temporary losses on non-investment grade securities recognized during the first and second quarters of 2001. Omega Protein reported net income of $2.0 million for the nine months ended September 30, 2001, as compared to a net loss of $12.4 million for the same period of the previous year. Omega Protein's net income for the nine months ended September 30, 2001 was primarily the result of the favorable market conditions which commenced during the third quarter. Omega Protein's loss for the comparable period of the previous period was largely the result of the $13.7 million inventory write-down which occurred during the third quarter.
Zapata's President and Chief Executive Officer, Avram Glazer, commented, "We are pleased with Omega Protein's progress as the market for fish meal and fish oil has improved." Mr. Glazer also said: "We are interested in pursuing one or more acquisitions that can enhance shareholder value and are continuing to actively identify and investigate opportunities. We believe that our strong balance sheet and liquidity will provide Zapata and its shareholders with great flexibility to pursue this strategy going forward."
About Zapata Corporation
Zapata Corporation is a holding company which currently operates in the food segment through its majority owned subsidiary, Omega Protein Corporation (NYSE:OME), 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 searching for acquisition opportunities.
"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 as well as the risk that the United States government may impose restrictions in the future that impede Omega Protein's operations, including harvesting menhandenen, similar to the federal ground stop order issued by the U.S. Secretary of Transportation on September 11, 2001. In addition, there can be no assurance that the Company will be able to successfully identify and consummate one or more acquisitions or that any such acquisitions will ultimately prove to be on terms and conditions favorable to the Company and its shareholders. 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 shares and per share amounts)
September 30,
2001 December 31,
(Unaudited) 2000
------------------ ------------------
ASSETS
Current assets:
Cash and cash equivalents $ 35,541 $ 19,237
Short-term investments 53,511 55,384
Accounts receivable, net 18,454 11,971
Inventories, net 37,008 37,032
Prepaid expenses and
other current assets 2,195 2,150
----------------- ---------------
Total current assets 146,709 125,774
----------------- ---------------
Investments and other assets:
Long-term investments,
available-for-sale -- 13,396
Other assets 45,191 33,315
----------------- ---------------
Total investments
and other assets 45,191 46,711
Property and equipment, net 83,497 89,374
----------------- ---------------
Total assets $ 275,397 $ 261,859
================= ===============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current maturities of
long-term debt $ 1,236 $ 1,227
Accounts payable 2,660 2,766
Accrued liabilities 26,380 21,153
----------------- ---------------
Total current liabilities 30,276 25,146
----------------- ---------------
Long-term debt 13,972 14,827
Other liabilities 5,299 4,820
Minority interest 52,924 52,071
----------------- ---------------
Total liabilities 102,471 96,864
----------------- ---------------
Commitments and contingencies
Stockholders' equity:
Preferred stock, ($.01 par),
200,000 shares authorized,
0 shares issued 0 and
outstanding as of
September 30, 2001 and
December 31, 2000 -- --
Preference stock, ($.01 par),
1,800,000 shares authorized,
0 shares issued and outstanding
as of September 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
September 30, 2001 and
December 31, 2000 31 31
Capital in excess of par value 161,800 161,755
Retained earnings 42,862 39,389
Treasury stock, at cost, 679,010
shares at September 30, 2001 and
December 31, 2000 (31,668) (31,668)
Accumulated other
comprehensive loss (99) (4,512)
----------------- ---------------
Total stockholders' equity 172,926 164,995
----------------- ---------------
Total liabilities and
stockholders' equity $ 275,397 $ 261,859
================= ===============
ZAPATA CORPORATION
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
Three months ended Nine months ended
September 30, September 30,
----------------- ------------------
2001 2000 2001 2000
-------- -------- -------- --------
Revenues $36,838 $ 17,864 $ 74,937 $ 58,125
Cost of sales 30,895 18,776 65,985 58,271
Abnormal costs due
to FAA grounding 1,177 --- 1,177 ---
Inventory write-down --- 13,742 --- 13,742
-------- -------- -------- --------
Gross Profit (Loss) 4,766 (14,654) 7,775 (13,888)
Operating Expense (Income):
Product development --- 805 --- 2,299
Selling, general
and administrative 2,617 3,970 8,565 12,156
Consulting (income)
expense --- (845) --- 212
Contract termination
settlement --- --- (403) ---
-------- -------- -------- --------
Total Operating
Expenses 2,617 3,930 8,162 14,667
-------- -------- -------- --------
Operating Income (Loss) 2,149 (18,584) (387) (28,555)
-------- -------- -------- --------
Other Income (Expense):
Interest income, net 1,550 2,143 3,220 6,076
Realized loss on
non-investment grade
securities (918) --- (11,841) ---
Loss on sale of
investments and assets --- (791) --- (794)
Impairment of
long-lived assets --- --- (232) ---
Other expense, net (76) (56) (66) (51)
-------- -------- -------- --------
556 1,296 (8,919) 5,231
-------- -------- -------- --------
Income (Loss) Before
Income Taxes and
Minority Interest 2,705 (17,288) (9,306) (23,324)
-------- -------- -------- --------
Benefit for
income taxes 12,543 5,844 13,621 7,916
Minority interest
in net (income) loss
of consolidated
subsidiary (936) 4,036 (800) 4,882
---------- --------- --------- ---------
Net Income (Loss) $ 14,312 $ (7,408) $ 3,515 $(10,526)
========== ========= ========= =========
Per Share Data
(Basic and Diluted):
Net Income (Loss)
Per Share $ 5.99 $ (3.10) $ 1.47 $ (4.41)
======== ========= ========== ==========
Weighted Average Common
Shares and Common
Share Equivalents
Outstanding 2,391 2,389 2,391 2,389
======== ========= ========== ==========
| CONTACT: | Zapata Corporation, Rochester |
|---|---|
| Investor Relations | |
| 716/242-8703 | |
| www.zapatacorp.com |