Zapata Corporation Announces Third Quarter Results for 2002
ROCHESTER, N.Y.--(BUSINESS WIRE)--Nov. 13, 2002--Zapata Corporation (NYSE:ZAP) today announced its consolidated financial results for the three months and nine months ended September 30, 2002.
Simultaneously, in a separate announcement, the Company announced that its Board of Directors has authorized Zapata to make a cash self-tender offer for up to 500,000 shares of its common stock.
For the quarter ended September 30, 2002, Zapata reported net income of $2.4 million or $1.00 per share compared to net income of $14.7 million or $6.13 per share for the comparable quarter last year. Net income for the third quarter of 2002 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 $3.6 million for the quarter ended September 30, 2002. Consolidated net income for the third quarter of the prior year primarily resulted from a tax benefit mainly attributable to capital loss carry-backs generated through the sale of certain securities during September 2001.
For the nine months ended September 30, 2002, Zapata reported net income of $4.8 million or $2.02 per share compared to net income of $3.6 million or $1.49 per share for the nine months ended September 30, 2001. Net income for the current period resulted primarily from a profitable nine month period at Omega Protein. Omega reported net income of $9.3 million or $0.38 per share for the nine months ended September 30, 2002 as compared to net income of $2.1 or $0.09 per share for the same period of the previous year. Consolidated net income for the prior nine-month period resulted primarily from the tax benefits recognized during the third quarter of 2001, partially offset by impairment charges on non-investment grade securities recognized during the second quarter of 2001.
Omega attributed its net income for the three months and nine months ended September 30, 2002 primarily to continued stronger prices for its products, compared with the previous year's pricing. This strong and stable pricing was the result of continued tight world supplies of fishmeal 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; and 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. 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)
September 30,
2002 December 31,
(Unaudited) 2001
---------- ----------
ASSETS
Current assets:
Cash and cash equivalents $ 62,904 $ 62,477
Short-term investments 42,434 33,948
Accounts receivable, net 14,425 22,427
Inventories, net 45,373 37,670
Prepaid expenses and other
current assets 1,658 1,979
---------- ----------
Total current assets 166,794 158,501
Investments and other assets:
Long-term investments, available
for sale 11,927 --
Other assets 26,333 30,937
---------- ----------
Total investments and other
assets 38,260 30,937
Property and equipment, net 81,894 82,239
---------- ----------
Total assets $ 286,948 $ 271,677
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current maturities of long-term
debt $ 1,250 $ 1,296
Accounts payable 2,266 1,605
Accrued liabilities 29,029 21,864
---------- ----------
Total current liabilities 32,545 24,765
---------- ----------
Long-term debt 14,565 15,510
Other liabilities and deferred
taxes 7,495 7,952
Minority interest 57,248 53,599
---------- ----------
Total liabilities 111,853 101,826
---------- ----------
Commitments and contingencies
Stockholders' equity:
Preferred stock, ($.01 par),
200,000 shares authorized, 0
shares issued and outstanding as
of September 30, 2002 and December
31, 2001 -- --
Preference stock, ($.01 par),
1,800,000 shares authorized, 0
shares issued and outstanding as
of September 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
September 30, 2002 and
December 31, 2001 31 31
Capital in excess of par value 162,041 161,869
Retained earnings 48,577 43,743
Treasury stock, at cost, 679,010
shares at September 30, 2002
and December 31, 2001 (31,668) (31,668)
Accumulated other comprehensive
loss (3,886) (4,124)
---------- ----------
Total stockholders' equity 175,095 169,851
---------- ----------
Total liabilities and
stockholders' equity $ 286,948 $ 271,677
========== ==========
ZAPATA CORPORATION
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands, Except Per Share Amounts)
Three months ended Nine Months Ended
September 30, September 30,
---------------------- ---------------------
2002 2001 2002 2001
-------- -------- -------- --------
Revenues $ 34,992 $ 36,838 $ 85,708 $ 74,937
Cost of revenues 27,259 31,069 64,514 66,093
-------- -------- -------- --------
Gross profit 7,733 5,769 21,194 8,844
Operating expense
(income):
Selling,
general and
administrative 2,089 2,727 8,653 9,531
Contract
termination
settlement -- -- -- (403)
-------- -------- -------- --------
Total
operating
expenses 2,089 2,727 8,653 9,128
-------- -------- -------- --------
Operating
income (loss) 5,644 3,042 12,541 (284)
-------- -------- -------- --------
Other income
(expense):
Interest income,
net 225 1,550 589 3,220
Realized loss
on non-
investment
grade
securities -- (918) -- (11,841)
Impairment of
long-lived assets -- -- -- (232)
Other, net (65) (76) (161) (66)
-------- -------- -------- --------
160 556 428 (8,919)
-------- -------- -------- --------
Income (loss)
before income
taxes and
minority
interest 5,804 3,598 12,969 (9,203)
-------- -------- -------- --------
(Provision)
benefit for
income taxes (1,990) 12,222 (4,485) 13,584
Minority interest
in net income of
consolidated
subsidiary (1,422) (1,164) (3,650) (828)
-------- -------- -------- --------
Net income to
common
stockholders $ 2,392 $ 14,656 $ 4,834 $ 3,553
======== ======== ======== ========
Income per share
(basic and
diluted) $ 1.00 $ 6.13 $ 2.02 $ 1.49
======== ======== ======== ========
Weighted average
common shares
outstanding:
Basic 2,391 2,391 2,391 2,391
======== ======== ======== ========
Diluted 2,395 2,391 2,395 2,390
======== ======== ======== ========
CONTACT:
Zapata Corporation
Leonard DiSalvo, 585/242-8703
www.zapatacorp.com