Zapata Corporation Third Quarter Revenue Increases 204%
ROCHESTER, N.Y.--(BUSINESS WIRE)--Nov. 12, 2004--Zapata Corporation (NYSE: ZAP) today announced its consolidated financial results for the third quarter ended September 30, 2004.
Zapata reported consolidated net income of $784,000 or $.32 per diluted share on revenues of $97.7 million for the three months ended September 30, 2004 as compared to consolidated net loss of $2.3 million or $.97 per diluted share on revenues of $32.2 million for the comparable period of 2003. The increase in consolidated revenues was primarily the result of consolidating the results of Safety Components International, Inc. (OTCBB: SAFY) operations for the current period and increased revenues at Omega Protein Corporation (NYSE: OME). As a result of the Safety Components acquisition, the Company began consolidating amounts related to Safety's operations during the fourth quarter of 2003. On a consolidated basis, the recognition of net income during the current period as compared to net loss during the same period in the prior year was primarily due to the consolidation of Safety's operating results, increased net income recognized by Omega, and a charge to the tax provision for the establishment of a deferred tax valuation allowance related to certain tax benefit carry-forwards that occurred during the three months ended September 30, 2003.
Zapata reported consolidated net income of $3.4 million or $1.41 per diluted share on revenues of $284.3 million for the nine months ended September 30, 2004 as compared to consolidated net income of $799,000 or $.33 per diluted share on revenues of $84.5 million for the comparable period of 2003. The increase in consolidated revenues was primarily the result of consolidating Safety's results of operations for the period and increased revenues at Omega Protein. The increase in consolidated net income resulted primarily from the consolidation of Safety's results of operations for the current period, offset by the tax effects of Safety's deconsolidation for tax purposes and a decrease in net income contributed by Omega Protein.
Safety Components contributed approximately $56.2 million and $1.4 million to Zapata's consolidated revenues and net income, respectively, for the quarter ended September 30, 2004. For the nine months ended September 30, 2004, Safety contributed approximately $191.3 million and $6.7 million to Zapata's consolidated revenues and net income, respectively. Due to the timing of Zapata's 2003 acquisition of Safety, no amounts related to Safety were included in the three and nine month periods ended September 30, 2003.
Omega Protein contributed approximately $41.5 million and $1.1 million to Zapata's consolidated revenues and net income, respectively, for the three months ended September 30, 2004 as compared to $32.2 million and $444,000 for the comparable period of the prior year. For the nine months ended September 30, 2004, Omega contributed approximately $93.0 million and $2.5 million to Zapata's consolidated revenues and net income, respectively as compared to $84.5 million and $3.5 million for the comparable period of the prior year. Omega Protein's three and nine month results reflect reduced margins due to less than expected fish catch in the Gulf of Mexico caused by adverse weather conditions. The reduced fish catch results in higher cost inventories and correspondingly higher cost of sales, as well as less product available for future sales.
About Zapata:
Zapata is a holding company which currently has two operating companies, Safety Components International, Inc. and Omega Protein Corporation. As of September 30, 2004, the Company had a 79% ownership interest in Safety Components and a 59% ownership interest in Omega Protein. In addition, Zapata 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 release which are not historical facts are "forward-looking" statements that involve risks and/or uncertainties as described in the "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, 2004. You are cautioned not to place undue reliance on any forward-looking statements. The Company's actual actions or results may differ materially from those expected or anticipated in the forward-looking statements. The Company does not undertake any obligation to release publicly any revisions to these forward-looking statements to reflect events or circumstances after the date of this press release.
ZAPATA CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In Thousands, Except Per Share Amounts)
September 30,
2004 December 31,
(unaudited) 2003
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ASSETS
Current assets:
Cash and cash equivalents $72,181 $43,934
Short-term investments -- 29,351
Accounts receivable, net 56,396 58,011
Inventories, net 71,521 63,957
Prepaid expenses and other current assets 7,267 6,045
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Total current assets 207,365 201,298
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Investments and other assets:
Intangible assets, net 6,562 8,121
Other assets 23,174 23,925
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Total investments and other
assets 29,736 32,046
Property, plant and equipment, net 133,714 125,695
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Total assets $370,815 $359,039
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current maturities of long-term debt $5,426 $5,780
Accounts payable 19,540 27,935
Accrued and other current liabilities 36,646 27,278
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Total current liabilities 61,612 60,993
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Long-term debt 26,785 29,422
Pension liabilities 8,174 7,687
Other liabilities and deferred taxes 13,769 9,698
Minority interest 77,439 68,702
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Total liabilities 187,779 176,502
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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, 3,070,325 shares issued and
2,391,315 shares outstanding 31 31
Capital in excess of par value 160,788 163,490
Retained earnings 54,526 51,108
Treasury stock, at cost, 679,010 shares (31,668) (31,668)
Accumulated other comprehensive loss (641) (424)
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Total stockholders' equity 183,036 182,537
------------- ------------
Total liabilities and stockholders'
equity $370,815 $359,039
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ZAPATA CORPORATION
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands, Except Per Share Amounts)
Three Months Nine Months
Ended Ended
September 30, September 30,
----------------- ------------------
2004 2003 2004 2003
------- ------- -------- -------
Revenues $97,672 $32,151 $284,273 $84,544
Cost of revenues 83,803 28,553 239,061 68,346
------- ------- -------- -------
Gross profit 13,869 3,598 45,212 16,198
Operating expense:
Selling, general and
administrative 10,227 3,512 29,076 9,925
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Total operating expenses 10,227 3,512 29,076 9,925
------- ------- -------- -------
Operating income 3,642 86 16,136 6,273
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Other income (expense):
Interest income (expense), net (4) (2) (643) 194
Other, net 326 (12) 99 (42)
------- ------- -------- -------
322 (14) (544) 152
------- ------- -------- -------
Income before income taxes and
minority interest 3,964 72 15,592 6,425
------- ------- -------- -------
Provision for income taxes (2,045) (2,095) (8,656) (3,333)
Minority interest in net income
of consolidated subsidiaries (1,135) (294) (3,518) (2,293)
------- ------- -------- -------
Net income (loss) $ 784 $(2,317) $ 3,418 $ 799
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Earnings per share:
Basic $ 0.33 $ (0.97) $ 1.43 $ 0.33
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Diluted $ 0.32 $ (0.97) $ 1.41 $ 0.33
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Weighted average common shares
outstanding:
Basic 2,391 2,391 2,391 2,391
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Diluted 2,419 2,391 2,417 2,403
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CONTACT: Zapata Corporation
Leonard DiSalvo, 585-242-8703
http://www.zapatacorp.com
SOURCE: Zapata Corporation