Zapata Corporation Announces First Quarter Results for 2003
ROCHESTER, N.Y.--(BUSINESS WIRE)--May 5, 2003--Zapata Corporation (NYSE:ZAP) today announced its consolidated financial results for the first quarter of 2003.
Zapata reported consolidated net income of $750,000 or $0.31 per share on revenues of $25.1 million for the three months ended March 31, 2003 compared to consolidated net income of $1.2 million or $0.51 per share on revenues of $23.5 million for the three months ended March 31, 2002. Zapata's majority-owned subsidiary, Omega Protein Corporation (NYSE:OME), reported net income of $2.6 million on revenues of $25.1 million for the three months ended March 31, 2003 compared to net income of $2.7 million on revenues of $23.5 million for the comparable period of the prior year. The decrease in net income resulted primarily from increased pension related costs at Zapata combined with reduced margins at Omega Protein related to higher cost of inventory being carried forward into 2003.
About Zapata Corporation
Zapata Corporation is a holding company which currently has one principal operating company, Omega Protein Corporation ("Omega Protein" or "Omega"), in which it has a 60% ownership interest. Omega Protein is the nation's largest marine protein company and is traded on the New York Stock Exchange under the symbol "OME." In addition, Zapata owns 98% of its subsidiary, Zap.Com Corporation ("Zap.Com"), which is currently a public shell corporation and trades on the over-the-counter electronic bulletin board under the symbol "ZPCM."
"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 for the year ended December 31, 2002. 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)
March 31,
2003 December 31,
(Unaudited) 2002
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ASSETS
Current assets:
Cash and cash equivalents $ 44,994 $ 80,643
Short-term investments 78,156 35,928
Accounts receivable, net 9,772 13,070
Inventories, net 38,236 41,939
Prepaid expenses and other current assets 3,857 4,015
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Total current assets 175,015 175,595
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Investments and other assets:
Long-term investments, available for sale 4,004 4,016
Other assets 24,700 24,524
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Total investments and other assets 28,704 28,540
Property, plant and equipment, net 82,018 80,842
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Total assets $285,737 $284,977
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current maturities of long-term debt $ 1,292 $ 1,270
Accounts payable 2,372 2,718
Accrued liabilities 21,941 23,027
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Total current liabilities 25,605 27,015
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Long-term debt 13,908 14,239
Pension liabilities 12,188 11,835
Other liabilities and deferred taxes 1,741 1,608
Minority interest 56,156 55,018
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Total liabilities 109,598 109,715
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Commitments and contingencies
Stockholders' equity:
Preferred stock, ($.01 par), 200,000 shares
authorized, 0 shares issued and
outstanding as of March 31, 2003 and
December 31, 2002 -- --
Preference stock, ($.01 par), 1,800,000 shares
authorized, 0 shares issued and outstanding
as of March 31, 2003 and December 31, 2002 -- --
Common stock, ($0.01 par), 16,500,000 shares
authorized,
3,069,859 shares issued and 2,390,849 shares
outstanding as of March 31, 2003 and
December 31, 2002 31 31
Capital in excess of par value 162,172 162,037
Retained earnings 50,966 50,216
Treasury stock, at cost, 679,010 shares as of
March 31, 2003
and December 31, 2002 (31,668 ) (31,668 )
Accumulated other comprehensive loss (5,362 ) (5,354 )
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Total stockholders' equity 176,139 175,262
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Total liabilities and stockholders' equity $285,737 $284,977
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ZAPATA CORPORATION
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands, Except Per Share Amounts)
Three Months Ended
March 31,
2003 2002
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Revenues $25,101 $23,479
Cost of revenues 18,679 16,924
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Gross profit 6,422 6,555
Operating expense:
Selling, general and administrative 3,676 3,128
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Total operating expenses 3,676 3,128
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Operating income 2,746 3,427
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Other income (expense):
Interest income, net 121 197
Other income (expense), net 21 (52)
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142 145
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Income before income taxes and minority interest 2,888 3,572
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Provision for income taxes (1,089) (1,270)
Minority interest in net income of consolidated
subsidiary (1,049) (1,078)
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Net income available to common stockholders $ 750 $ 1,224
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Basic and diluted net income per share $ 0.31 $ 0.51
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Weighted average common shares outstanding:
Basic 2,391 2,391
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Diluted 2,401 2,396
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CONTACT:
Zapata Corporation
Leonard DiSalvo, 585/242-8703
www.zapatacorp.com
SOURCE: Zapata Corporation