Zapata Reports Results for 1999
ROCHESTER, N.Y.--(BUSINESS WIRE)--March 30, 2000--Zapata Corporation (NYSE: ZAP) today reported a net loss of $20.3 million or $0.85 a share on revenues of $93.7 million for calendar year 1999.
This compares with net income of $60.9 million or $2.61 a share on revenues of $129.8 million for the comparable period a year earlier. Results for the prior period include a gain net of taxes of $55.3 million from the initial public offering of Omega Protein Corporation, 61 percent of which is owned by Zapata. The remaining decline in net income was primarily the result of Omega Protein's financial performance, including a one-time $20.5 million charge for inventory and asset write-downs in 1999.
For the fourth quarter of 1999 the company had a net loss of $10.9 million or $0.46 per share diluted on revenues of $29.6 million. This compares with a net loss of $4.4 million or $0.19 per share diluted on revenues of $25.8 million in the fourth quarter of 1998.
Avram Glazer, Chairman and Chief Executive Officer of Zapata, said "the highlight of 1999 was Zapata's successful spin-off of Zap.Com Corporation to its shareholders. Zap.Com is now a separate, publicly traded company dedicated to building the ZapNetwork. We are very excited about Zap.Com's future and the opportunity it presents to our shareholders."
Following the spin-off, Zapata owns approximately 98% of the stock of Zap.Com Corporation (OTCBB: ZPCM), an Internet company which seeks to build the ZapNetwork, a branded network of independent Web sites; 61% of the stock of Omega Protein (NYSE: OME), the nation's largest marine protein company, and approximately 40% of the stock of Viskase (Nasdaq: VCIC), a world leader in food packaging. Zap Internet Corporation, Zapata's Internet subsidiary, operates the award-winning and innovative Internet sites "Word" (www.word.com) and "Charged" (www.charged.com).
"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 March 30, 2000 for the fiscal year ended December 31, 1999. 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. 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. -0-
*T
ZAPATA CORPORATION
CONSOLIDATED STATEMENT OF OPERATIONS
Three Months Three Months
Three Months
Year Ended Ended Year Ended Ended
December 31, December
December December December December
31, 31, 31, 31,
-----------------------------------------
1999 1999 1998 1998
---- ---- ---- ----
(in thousands except per share amounts)
Revenues..................... $93,666 $29,587 $129,811 $25,759
Cost of revenues............. 87,510 28,769 89,924 17,553
Inventory write-down......... 18,188 3,688 - -
--------- ---------- --------- --------
Gross profit.......... (12,032) (2,870) 39,887 8,206
Operating Expenses:
Product Development....... 2,890 2,890 2,181 915
Selling, general and
administrative........... 16,697 6,943 10,255 2,165
Asset write-down......... 2,267 2,267 - -
--------- ---------- --------- --------
Total Operating
Expenses: 21,854 12,100 12,436 3,080
--------- ---------- --------- --------
Operating income (loss)..... (33,886) (14,970) 27,451 5,126
--------- ---------- --------- --------
Other income (expense):
Interest income, net..... 5,170 464 6,901 2,136
Gain on sale of Omega
Protein................. - - 86,662 -
Equity in loss of
unconsolidated affiliates - - (17,748) (11,836)
Other..................... (3,219) 805 (335) (60)
--------- ---------- --------- --------
1,951 1,269 75,480 (9,760)
--------- ---------- --------- --------
Income from continuing
operations before
income taxes (31,935) (13,701) 102,931 (4,634)
Benefit (Provision)
for income taxes........... 5,758 237 (35,324) 1,904
Minority interest in
net income (loss) of
consolidated subsidiary 5,845 2,570 (6,679) (1,714)
--------- ---------- --------- --------
Income from continuing
operations................. (20,332) (10,894) 60,928 (4,444)
Discontinued operations
(Notes 3, 4, 5 and 6):
Income (loss) from
discontinued operations,
net of income taxes... - - - -
Gain on disposition of
discontinued operations,
net of income taxes - - - -
--------- ---------- --------- --------
Net income (loss)........... (20,332) (10,894) 60,928 (4,444)
Preferred and preference
stock dividends............ - - - -
--------- ---------- --------- --------
Net income to
common stockholders........ ($20,332) ($10,894) $60,928 ($4,444)
========= ========== ========= ========
Other comprehensive income.. (597) (274) - -
--------- ---------- --------- --------
Total comprehensive income ($20,929) ($11,168) $60,928 ($4,444)
========= ========== ========= ========
Per share data (basic):
Income from continuing
operations.............. ($0.85) ($0.46) $2.61 ($0.19)
Income from discontinued
operations.............. - - - -
Net income per share
(basic)................. ($0.85) ($0.46) $2.61 ($0.19)
========= ========== ========= ========
Average common shares
outstanding................ 23,883 23,889 23,376 23,877
========= ========== ========= ========
Per share data (diluted):
Income from continuing
operations.............. ($0.85) ($0.46) $2.61 ($0.19)
Income from discontinued
operations.............. - - - -
Net income per share
(diluted)............... ($0.85) ($0.46) $2.61 ($0.19)
Average common shares and
common share equivalents
outstanding 23,883 23,889 23,376 23,877
========= ========== ========= ========
ZAPATA CORPORATION
Consolidated Balance Sheets
December December
31, 31,
1999 1998
---------- --------
($ in thousands)
ASSETS
Current assets:
Cash and cash equivalents.............. $72,751 $154,704
Short term investments................. 44,370 --
Receivables, net....................... 21,793 9,811
Inventories, net....................... 46,112 43,351
Production payment receivable, current 1,673 --
Prepaid expenses and other current assets 2,187 3,468
---------- --------
Total current assets........ 188,886 211,334
---------- --------
Investments and other assets:
Production payment and other receivables -- 1,493
Other assets........................... 19,876 19,105
---------- --------
Total investments and other assets.... 19,876 20,598
Property and equipment, net............... 91,052 86,308
---------- --------
Total assets................ $299,814 $318,240
========== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current maturities of long-term debt... $1,146 $997
Accounts payable....................... 2,637 2,635
Accrued liabilities.................... 14,977 13,554
---------- --------
Total current liabilities... 18,760 17,186
---------- --------
Long-term debt............................ 16,069 11,205
Other liabilities and deferred taxes...... 8,009 9,957
Minority Interest......................... 58,731 64,800
---------- --------
Total liabilities........... 101,569 103,148
---------- --------
Commitments and contingencies
Stockholders' equity:
Common Stock, ($0.01 par),
issued 30,679,028 on December 31, 1999;
($0.25 par), issued: 30,667,178 shares
on December 31, 1998 307 307
Capital in excess of par value............ 175,155 160,658
Reinvested earnings, from October 1, 1990
quasi-reorganization.. 65,377 85,795
Treasury stock, at cost, 6,790,100 shares
at December 31, 1999 and 1998 (31,668) (31,668)
Deferred consulting expense (10,329) -
Accumulated other comprehensive income.... (597) -
---------- --------
Total stockholders' equity.. 198,245 215,092
---------- --------
Total liabilities and
stockholders' equity.................. $299,814 $318,240
========== ========
*T
CONTACT: Zapata Corporation Investor Relations
Jerry Meyer
Lippert/Heilshorn & Associates
212/838-3777