Zapata Corporation Announces Fourth Quarter and Year End Results for 2002
Zapata reported consolidated net income of $6.5 million or $2.70 per share on a diluted basis on revenues of $117.0 million for the year ended December 31, 2002 compared to consolidated net income of $4.4 million or $1.85 per share on a diluted basis on revenues of $98.8 million in 2001. Increased consolidated revenues and consolidated income resulted primarily from the improved performance of Zapata's majority-owned subsidiary, Omega Protein Corporation (NYSE:OME). Omega's net income for the year ended December 31, 2002 was $12.2 million as compared to $3.9 million in the prior year. On a consolidated basis, Omega Protein's improved operating performance was offset by a reduction in interest income.
For the quarter ended December 31, 2002, Zapata reported net income of $1.6 million or $0.68 per share on a diluted basis as compared to net income of $881,000 or $0.37 per share on a diluted basis for the comparable quarter last year. The net income for the fourth quarter was primarily due to a profitable quarter reported by Omega.
Omega Protein's improved operating performance is primarily attributable to higher selling prices of 15% and 41% of Omega's fish meal and fish oil, respectively. Omega attributes the higher fish meal and oil prices to strong worldwide demand for fish meal and competing fish oil markets rebounding from historic low levels.
About Zapata:
Zapata Corporation is a holding company which currently operates in the food segment through its majority owned subsidiary, Omega Protein Corporation, which is the nation's largest marine protein company. In addition, Zapata holds approximately 98% of the outstanding stock of Zap.Com Corporation (OTCBB: "ZPCM"), which is currently a public shell company.
"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, 2002. 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 Per Share Amounts)
December 31, December 31,
2002 2001
ASSETS
Current assets:
Cash and cash equivalents $ 80,643 $ 62,477
Short-term investments 35,832 33,948
Accounts receivable, net 13,166 22,427
Inventories, net 41,939 37,670
Prepaid expenses and other current
assets 4,015 1,979
Total current assets 175,595 158,501
Investments and other assets:
Long-term investments, available for
sale 4,016 --
Other assets 24,524 30,937
Total investments and other
assets 28,540 30,937
Property, plant and equipment, net 80,842 82,239
Total assets $ 284,977 $271,677
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current maturities of long-term debt $ 1,270 $ 1,296
Accounts payable 2,718 1,605
Accrued liabilities 23,027 21,864
Total current liabilities 27,015 24,765
Long-term debt 14,239 15,510
Pension liabilities 11,835 6,917
Other liabilities and deferred taxes 1,608 1,035
Minority interest 55,018 53,599
Total liabilities 109,715 101,826
Commitments and contingencies
Stockholders' equity:
Preferred stock, ($0.01 par), 200,000
shares authorized, 0 shares issued
and outstanding as of December
31, 2002 and 2001 -- --
Preference stock, ($0.01 par), 1,800,000
shares authorized, 0 shares
issued and outstanding as of December
31, 2002 and 2001 -- --
Common stock, ($0.01 par), 16,500,000
shares authorized, 3,069,859
shares issued and 2,390,849 shares
outstanding as of December 31,
2002 and 2001, respectively 31 31
Capital in excess of par value 162,037 161,869
Retained earnings 50,216 43,743
Treasury stock, at cost, 679,010 shares
as of December 31, 2002 and 2001 (31,668) (31,668)
Accumulated other comprehensive loss (5,354) (4,124)
Total stockholders' equity 175,262 169,851
Total liabilities and
stockholders' equity $ 284,977 $271,677
ZAPATA CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share amounts)
Three months ended Twelve months ended
December 31, December 31,
------------------- -------------------
2002 2001 2002 2001
---------- -------- ---------- --------
Revenues $31,300 $23,899 $117,008 $ 98,836
Cost of revenues 24,791 18,589 89,305 84,682
------- ------- -------- --------
Gross profit 6,509 5,310 27,703 14,154
Operating expenses:
Selling, general and
administrative 3,253 3,102 11,906 12,633
Impairment of long-lived
assets --- -- -- 232
Contract termination
settlement --- -- -- (403)
------- ------- -------- --------
Total operating expenses 3,253 3,102 11,906 12,462
------- ------- -------- --------
Operating income 3,256 2,208 15,797 1,692
------- ------- -------- --------
Other income (expense):
Interest income, net 233 273 822 3,493
Realized loss on non-
investment grade securities -- -- -- (11,841)
Other expense, net (61) (85) (222) (151)
------- ------- -------- --------
172 188 600 (8,499)
------- ------- -------- --------
Income (loss) before income
taxes and minority interest 3,428 2,396 16,397 (6,807)
------- ------- -------- --------
(Provision) benefit for income
taxes (635) (815) (5,120) 12,769
Minority interest in net
income of consolidated
subsidiary (1,154) (700) (4,804) (1,528)
------- ------- -------- --------
Net income available to common
stockholders $ 1,639 $ 881 $ 6,473 $ 4,434
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Net income per share:
Basic $ 0.69 $ 0.37 $ 2.71 $ 1.85
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Diluted $ 0.68 $ 0.37 $ 2.70 $ 1.85
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Weighted average common shares
and common share equivalents
outstanding:
Basic 2,391 2,391 2,391 2,391
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Diluted 2,395 2,394 2,391 2,391
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CONTACT:
Zapata Corporation
Leonard DiSalvo, 585/242-8703
http://www.zapatacorp.com
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