Zapata Corporation Announces Fourth Quarter and Year End Results for 2000
ROCHESTER, N.Y.--(BUSINESS WIRE)--March 30, 2001--Zapata Corporation (NYSE:ZAP) today announced its consolidated financial results for the fourth quarter and year ended December 31, 2000.
For the fourth quarter ended December 31, 2000, Zapata reported a net loss of $15.5 million or $6.49 per share(1) compared to a loss of $10.9 million or $4.56 per share(1) in the comparable quarter last year. Zapata reported a net loss of $26.0 million or $10.88 per share(1) on revenues of $84.1 million for the year ended December 31, 2000. This compares with a net loss of $20.3 million or $8.51 per share(1) on revenues of $93.7 million for the previous year.
The net loss for the fourth quarter and for 2000 were primarily due to operating losses (including an $18.1 million inventory write-down) by the Company's 61% owned subsidiary, Omega Protein Corporation, operating losses and impairment charges related to the Company's Internet operations, which were shutdown in December 2000, and impairment charges to the Company's debt investments.
(1) Share and per share information has been retroactively restated to give effect to the Company's 1-for-10 reverse split which was effective in January 2001.
About Zapata Corporation
Zapata Corporation is a holding company that operates in the food segment and, until December 2000, the Internet segment. Zapata owns approximately 61% of the stock Omega Protein Corporation (NYSE: OME), the nation's largest marine protein company, and approximately 38% of the stock Viskase (NASDAQ:VCIC), a world leader in food packaging. Zapata is also he largest shareholder of Zap.Com Corporation (OTCBB: 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 dated April 2, 2001 for the fiscal year ended December 31, 2000. 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.
ZAPATA CORPORATION
CONSOLIDATED BALANCE SHEETS
(In Thousands Except Share and Per Share Amounts)
December December
31, 31,
2000 1999
---- ----
ASSETS
Current assets:
Cash and cash equivalents $ 19,237 $ 72,751
Short-term investments 55,384 44,370
Accounts receivable, net 11,971 21,793
Inventories, net 37,032 46,112
Production payment receivable, current -- 1,673
Prepaid expenses and other current assets 2,150 2,187
---------- ----------
Total current assets 125,774 188,886
---------- ----------
Investments and other assets:
Long-term investments, available for sale 13,396 --
Other assets 33,315 19,876
---------- ----------
Total investments and other assets 46,711 19,876
Property and equipment, net 89,374 91,052
---------- ----------
Total assets $ 261,859 $ 299,814
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current maturities of long-term debt $ 1,227 $ 1,146
Accounts payable 2,766 2,637
Accrued liabilities 21,153 14,977
---------- ----------
Total current liabilities 25,146 18,760
---------- ----------
Long-term debt 14,827 16,069
Other liabilities and deferred taxes 4,820 10,009
Minority interest 52,071 58,731
---------- ----------
Total liabilities 96,864 103,569
---------- ----------
Commitments and contingencies
Stockholders' equity:
Preferred stock, ($0.01 par), 200,000 shares
authorized, 0 shares issued and outstanding
as of December 31, 2000 and 1999 -- --
Preference stock, ($0.01 par), 1,800,000
shares authorized, 0 shares issued and
outstanding as of December 31, 2000 and 1999 -- --
Common stock, ($0.01 par), 16,500,000 shares
authorized, 3,066,718 shares issued, and
2,388,708 shares outstanding on
December 31, 2000 and 1999, respectively 31 31
Capital in excess of par value 161,755 173,431
Retained earnings 39,389 65,377
Treasury stock, at cost, 679,010 shares at
December 31, 2000 and 1999 (31,668) (31,668)
Deferred consulting expense -- (10,329)
Accumulated other comprehensive loss (4,512) (597)
---------- ----------
Total stockholders' equity 164,995 196,245
---------- ----------
Total liabilities and
stockholders' equity $ 261,859 $ 299,814
========== ==========
ZAPATA CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands Except Share and Per Share Amounts)
Three
Months
Year Ended Year Ended Ended Year Ended
December December December September
31, 31, 31, 30,
2000 1999 1998 1998
---- ---- ---- ----
Revenues $ 84,140 $ 93,666 $ 25,759 $ 133,555
Cost of revenues 85,044 87,510 17,553 89,460
Inventory write-down 18,117 18,188 -- --
---------- ---------- ---------- ----------
Gross (loss)
profit (19,021) (12,032) 8,206 44,095
Operating expenses:
Product development 1,489 2,890 915 1,266
Selling, general and
administrative 15,790 16,697 2,165 12,322
Impairment of
long-lived assets 1,307 2,267 -- --
Contract termination
expenses 779 -- -- --
---------- ---------- ---------- ----------
Total operating
expenses 19,365 21,854 3,080 13,588
---------- ---------- ---------- ----------
Operating (loss)
income (38,386) (33,886) 5,126 30,507
---------- ---------- ---------- ----------
Other income (expense):
Interest income, net 7,352 5,170 2,136 5,025
Realized loss on
non-investment
grade securities (13,201) -- -- --
Gain on sale of
Omega Protein -- -- -- 86,662
Equity in loss of
unconsolidated
affiliates -- -- (11,836) (7,009)
Other (906) (3,219) (60) (295)
---------- ---------- ---------- ----------
(6,755) 1,951 (9,760) 84,383
---------- ---------- ---------- ----------
(Loss) income before
income taxes and
minority interest (45,141) (31,935) (4,634) 114,890
Benefit (provision)
for income taxes 12,521 5,758 1,904 (39,965)
Minority interest in
net loss (income) of
consolidated
subsidiary, net of
taxes 6,632 5,845 (1,714) (4,965)
---------- ---------- ---------- ----------
Net (loss) income to
common stockholders $ (25,988) $ (20,332) $ (4,444) $ 69,960
========== ========== ========== ==========
Net (loss) income
per share (basic) $ (10.88) $ (8.51) $ (1.86) $ 30.36
========== ========== ========== ==========
Weighted average
common shares
outstanding 2,389 2,389 2,389 2,304
========== ========== ========== ==========
Net (loss) income
per share (diluted) $ (10.88) $ (8.51) $ (1.86) $ 29.44
========== ========== ========== ==========
Weighted average
common shares and
common share
equivalents
outstanding 2,389 2,389 2,389 2,376
========== ========== ========== ==========
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| CONTACT: | Zapata Corporation |
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| Investor Relations | |
| Lippert/Heilshorn & Associates, Inc. | |
| 212/838-3777 |