Zapata Corporation 2004 Net Income Increases 318% - Revenues Increase 103%
ROCHESTER, N.Y.--(BUSINESS WIRE)--March 14, 2005--Zapata Corporation (NYSE:ZAP) today announced its consolidated financial results for the fourth quarter and year ended December 31, 2004.
Zapata reported consolidated net income of $3.7 million or $1.54 per diluted share on revenues of $367.5 million for the year ended December 31, 2004 as compared to consolidated net income of $892,000 or $.37 per diluted share on revenues of $181.4 million in 2003. The increase in consolidated revenues and net income was primarily the result of the consolidation of Safety Components International, Inc. (OTCBB: SAFY) for the full year ended December 31, 2004. Due to the timing of Zapata's acquisition of Safety Components, the Company began consolidating amounts related to Safety's operations during the fourth quarter of 2003. On a consolidated basis, the year over year increase in net income was partially offset by a decrease in net income at Omega Protein Corporation (NYSE: OME) and an increase in Zapata's provision for income taxes at the parent level.
For the quarter ended December 31, 2004, Zapata reported consolidated net income of $314,000 or $.13 per diluted share as compared to consolidated net income of $95,000 or $.04 per diluted share for the comparable quarter last year. The increase in net income for the fourth quarter of 2004 as compared to 2003 resulted primarily from an increase in consolidated net income recognized by Safety Components, partially offset by a net loss recognized by Omega Protein.
Omega Protein contributed approximately $119.6 million and $1.9 million to Zapata's consolidated revenues and net income, respectively, for the year ended December 31, 2004. For the quarter ended December 31, 2004, Omega contributed approximately $26.6 million and a loss of $633,000 to Zapata's consolidated revenues and net income, respectively. Omega Protein's 2004 results, as well as the results for the fourth quarter of 2004, reflected a lower than expected fish catch (approximately 18% below 2004 expectations and approximately 8% below 2003 fish catch level), combined with low oil yields. The reduced fish catch was primarily attributable to adverse weather conditions in the Gulf of Mexico and the low oil yields were due to reduced fat content of the fish. The reduced fish catch and low oil yields resulted in higher per unit cost inventories, as well as less product available for sale.
Safety Components contributed approximately $247.9 million and $7.9 million to Zapata's consolidated revenues and net income, respectively, for the year ended December 31, 2004. For the quarter ended December 31, 2004, Safety contributed approximately $56.6 million and $1.2 million to Zapata's consolidated revenues and net income, respectively.
About Zapata:
Zapata is a holding company which currently has two operating companies, Safety Components International, Inc. and Omega Protein Corporation. As of December 31, 2004, the Company had a 79% ownership interest in Safety Components and a 58% 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 Annual Report on Form 10-K for the year ended December 31, 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
CONSOLIDATED BALANCE SHEETS
(In Thousands, Except Share and Per Share Amounts)
December December
31, 31,
2004 2003
--------- ---------
ASSETS
Current assets:
Cash and cash equivalents $67,433 $43,934
Short-term investments -- 29,351
Accounts receivable, net 53,376 58,011
Assets held in subsidiary deferred compensation
plan 4,361 3,345
Inventories, net 67,324 63,957
Prepaid expenses and other current assets 6,515 6,045
--------- ---------
Total current assets 199,009 204,643
--------- ---------
Other assets:
Intangible assets, net 6,158 8,121
Other assets 20,021 20,580
--------- ---------
Total other assets 26,179 28,701
Property, plant and equipment, net 137,301 125,695
--------- ---------
Total assets $362,489 $359,039
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current maturities of long-term debt $4,924 $5,780
Accounts payable 19,395 27,935
Accrued and other current liabilities 32,880 30,110
--------- ---------
Total current liabilities 57,199 63,825
--------- ---------
Long-term debt 19,672 29,422
Pension liabilities 9,677 7,687
Other liabilities and deferred taxes 10,117 6,866
--------- ---------
Total liabilities 96,665 107,800
--------- ---------
Minority interest 79,510 68,702
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, $.01 par, 16,500,000 shares
authorized; 3,070,575 and 3,070,325 shares
issued; 2,391,565 and 2,391,315 shares
outstanding, respectively 31 31
Capital in excess of par value 160,671 163,490
Retained earnings 54,841 51,108
Treasury stock, at cost, 679,010 shares (31,668) (31,668 )
Accumulated other comprehensive income (loss) 2,439 (424 )
--------- ---------
Total stockholders' equity 186,314 182,537
--------- ---------
Total liabilities and stockholders' equity $362,489 $359,039
========= =========
ZAPATA CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands, Except Per Share Amounts)
Three months Twelve months
ended ended
December 31, December 31,
----------------- -------------------
2004 2003 2004 2003
-------- -------- --------- ---------
Revenues $83,255 $96,885 $367,528 $181,429
Cost of revenues 75,215 86,207 314,277 154,553
-------- -------- --------- ---------
Gross profit 8,040 10,678 53,251 26,876
Operating expenses:
Selling, general and
administrative 8,605 10,182 37,682 19,971
-------- -------- --------- ---------
Total operating
expenses 8,605 10,182 37,682 19,971
-------- -------- --------- ---------
Operating income (565) 496 15,569 6,905
-------- -------- --------- ---------
Other income (expense):
Interest (expense) income (276) (522) (919) (329)
Other, net 1,183 1,075 1,285 896
-------- -------- --------- ---------
907 553 366 567
Income before income taxes and
minority interest 342 1,049 15,935 7,472
Provision for income taxes (185) (400) (8,841) (3,733)
Minority interest in net income
of consolidated subsidiaries 157 (554) (3,361) (2,847)
-------- -------- --------- ---------
Net income to common
stockholders $314 $95 $3,733 $892
======== ======== ========= =========
Earnings per share:
Basic $0.13 $0.04 $1.56 $0.37
======== ======== ========= =========
Diluted $0.13 $0.04 $1.54 $0.37
======== ======== ========= =========
Weighted average common shares
outstanding:
Basic 2,391 2,391 2,391 2,391
======== ======== ========= =========
Diluted 2,417 2,423 2,417 2,405
======== ======== ========= =========
CONTACT: Zapata Corporation
Leonard DiSalvo, CFO
585-242-8703
http://www.zapatacorp.com
SOURCE: Zapata Corporation