Zapata Corporation Announces Year End Results
ROCHESTER, N.Y., Mar 07, 2008 (BUSINESS WIRE) -- Zapata Corporation (NYSE: ZAP) today announced its consolidated financial results for the year and quarter ended December 31, 2007.
For the year ended December 31, 2007, Zapata reported consolidated net income of $2.6 million or $.13 per diluted share as compared to a consolidated net loss of $4.7 million or $(.24) per diluted share for the year ended December 31, 2006. The change from a net loss to net income was primarily the result of the recognition of an impairment charge recognized during the year ended December 31, 2006 relating to the sale of the Company's Omega Protein Corporation (NYSE:OME) common stock.
For the quarter ended December 31, 2007, Zapata reported consolidated net income of $909,000 or $0.05 per diluted share as compared to a consolidated net income of $1.1 million or $0.05 for the comparable quarter last year. The decrease in net income recognized during the quarter ended December 31, 2007 as compared to the comparable quarter of the prior year was primarily the result of increased selling, general and administrative expenses partially offset by an increase in interest income.
About Zapata:
Zapata is a holding company which has approximately $154.3 million in consolidated cash, cash equivalents and short-term investments as of December 31, 2007 and owns 98% of Zap.Com Corporation (OTBB: ZPCM), which is a public shall company. The Company is currently searching for candidates for acquisition.
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, 2007. 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
CONSOLIDATED BALANCE SHEETS
(In Thousands, Except Share and Per Share Amounts)
December 31, December 31,
2007 2006
------------ ------------
ASSETS
Current assets:
Cash and cash equivalents $ 139,251 $ 136,889
Short-term investments 15,019 15,199
Other receivables 1,024 279
Prepaid expenses and other current assets 302 346
------------ ------------
Total current assets 155,596 152,713
------------ ------------
Other assets, net 9,848 11,015
Property, plant and equipment, net -- 3
------------ ------------
Total assets $ 165,444 $ 163,731
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 180 $ 417
Accrued and other current liabilities 1,141 1,806
------------ ------------
Total current liabilities 1,321 2,223
------------ ------------
Pension liabilities 660 717
Other liabilities 1,330 1,489
------------ ------------
Total liabilities 3,311 4,429
------------ ------------
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; and 19,276,334
and 19,184,456 shares outstanding,
respectively 247 246
Capital in excess of par value 164,250 164,454
Retained earnings 37,204 34,653
Treasury stock, at cost, 5,432,080 shares (31,668) (31,668)
Accumulated other comprehensive loss (7,934) (8,417)
------------ ------------
Total stockholders' equity 162,099 159,268
------------ ------------
Total liabilities and stockholders'
equity $ 165,444 $ 163,731
============ ============
ZAPATA CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands, Except Per Share Amounts)
For the Years Ended
December 31,
2007 2006 2005
-------- -------- ---------
Revenues $ -- $ -- $ --
Cost of revenues -- -- --
-------- -------- ---------
Gross profit -- -- --
Operating expense:
Selling, general and administrative 3,388 4,730 5,517
-------- -------- ---------
Total operating expenses 3,388 4,730 5,517
-------- -------- ---------
Operating loss (3,388) (4,730) (5,517)
Other income:
Interest income 7,681 4,059 1,296
Other, net 570 580 126
-------- -------- ---------
8,251 4,639 1,422
Income (loss) before income taxes and
minority interest 4,863 (91) (4,095)
(Provision) benefit for income taxes (2,313) (183) 982
Minority interest in net loss of
consolidated subsidiaries 1 1 1
-------- -------- ---------
Net income (loss) from continuing
operations 2,551 (273) (3,112)
-------- -------- ---------
Discontinued operations:
(Loss) income before taxes and minority
interest (including loss on disposal) -- (3,912) (13,335)
Benefit for income taxes -- 1,574 5,643
Minority interest -- (2,052) 1,628
-------- -------- ---------
Net loss from discontinued operations -- (4,390) (6,064)
Net income (loss) income to common
stockholders $ 2,551 $(4,663) $ (9,176)
======== ======== =========
Net income (loss) per common share - basic
and diluted
Income (loss) from continuing
operations $ 0.13 $ (0.01) $ (0.16)
Loss from discontinued operations, net
of income taxes and minority interest -- (0.23) (0.32)
-------- -------- ---------
Income (loss) per common share - basic and
diluted $ 0.13 $ (0.24) $ (0.48)
======== ======== =========
Weighted average common shares
outstanding:
Basic 19,237 19,179 19,136
======== ======== =========
Diluted 19,422 19,179 19,136
======== ======== =========
SOURCE: Zapata Corporation
Zapata Corporation
Leonard DiSalvo, CFO, 585-242-8703
http://www.zapatacorp.com