Zapata Corporation Announces Second Quarter Results
For the quarter ended June 30, 2009, Zapata reported a consolidated net loss of $462,000 or $(.02) per share as compared to consolidated net income of $312,000 or $0.02 per share for the quarter ended June 30, 2008. For the six months ended June 20, 2009, Zapata had a consolidated net loss of $1.2 million or $(0.06) per share as compared to consolidated net income of $632,000 or $0.03 per share for the comparable period of the prior year. The change from net income to net loss for the three and six month periods ended June 30, 2009 resulted primarily from a decrease in interest income arising from sustained lower interest rates on the Company's invested funds during 2009 as compared to 2008.
About Zapata:
Zapata is a holding company which has approximately $153.2 million in consolidated cash, cash equivalents and investments as of June 30, 2009 and owns 98% of Zap.Com Corporation (OTBB: ZPCM), which is a public shell company. The Company is currently searching for candidates for acquisition.
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 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. Forward-looking statements, which are based upon certain assumptions and describe future plans, strategies and expectations of the Company, are generally identifiable by use of the words "believes," "expects," "intends," "anticipates," "plans," "seeks," "estimates," "projects," "may" or similar expressions. Factors that could cause actual results, events and developments to differ include, without limitation, the risk that we may not be successful in identifying any suitable future acquisition opportunities and those factors listed under the caption "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2008. 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 | ||||||||
| UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
| (In Thousands, Except Share and Per Share Amounts) | ||||||||
| June 30, | December 31, | |||||||
| 2009 | 2008 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 133,231 | $ | 142,694 | ||||
| Short-term investments | 16,013 | 11,965 | ||||||
| Other receivables | 198 | 130 | ||||||
| Prepaid expenses and other current assets | 131 | 256 | ||||||
| Total current assets | 149,573 | 155,045 | ||||||
| Long-term investments | 3,973 | -- | ||||||
| Property and equipment, net | 42 | -- | ||||||
| Other assets, net | 9,474 | 8,987 | ||||||
| Total assets | $ | 163,062 | $ | 164,032 | ||||
| LIABILITIES AND EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 29 | $ | 92 | ||||
| Accrued and other current liabilities | 1,082 | 1,045 | ||||||
| Total current liabilities | 1,111 | 1,137 | ||||||
| Pension liabilities | 2,919 | 2,904 | ||||||
| Other liabilities | 1,090 | 1,144 | ||||||
| Total liabilities | 5,120 | 5,185 | ||||||
| Commitments and contingencies | ||||||||
| Zapata Corporation stockholders' equity: | ||||||||
| Preferred stock, $.01 par; 1,600,000 shares authorized; none issued or outstanding | -- | -- | ||||||
| Preference stock, $.01 par; 14,400,000 shares authorized; none issued or outstanding | -- | -- | ||||||
| Common stock, $0.01 par, 132,000,000 shares authorized, 24,708,414 shares issued and 19,276,334 shares outstanding | 247 | 247 | ||||||
| Capital in excess of par value | 164,250 | 164,250 | ||||||
| Retained earnings | 36,003 | 37,192 | ||||||
| Treasury stock, at cost, 5,432,080 shares | (31,668 | ) | (31,668 | ) | ||||
| Accumulated other comprehensive loss | (10,921 | ) | (11,207 | ) | ||||
| Total Zapata Corporation stockholders' equity | 157,911 | 158,814 | ||||||
| Noncontrolling interest | 31 | 33 | ||||||
| Total equity | 157,942 | 158,847 | ||||||
| Total liabilities and equity | $ | 163,062 | $ | 164,032 | ||||
| ZAPATA CORPORATION | ||||||||||||||||
| UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
| (In Thousands, Except Per Share Amounts) | ||||||||||||||||
| For the | For the | |||||||||||||||
|
Three Months Ended |
Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2009 | 2008 | 2009 | 2008 | |||||||||||||
| Revenues | $ | -- | $ | -- | $ | -- | $ | -- | ||||||||
| Cost of revenues | -- | -- | -- | -- | ||||||||||||
| Gross profit | -- | -- | -- | -- | ||||||||||||
| Operating expense: | ||||||||||||||||
| General and administrative | 1,173 | 688 | 2,373 | 1,552 | ||||||||||||
| Total operating expenses | 1,173 | 688 | 2,373 | 1,552 | ||||||||||||
| Operating loss | (1,173 | ) | (688 | ) | (2,373 | ) | (1,552 | ) | ||||||||
| Other income: | ||||||||||||||||
| Interest income | 74 | 864 | 141 | 2,345 | ||||||||||||
| Other, net | 383 | 4 | 414 | 72 | ||||||||||||
| 457 | 868 | 555 | 2,417 | |||||||||||||
| (Loss) income before income taxes | (716 | ) | 180 | (1,818 | ) | 865 | ||||||||||
| Benefit (provision) for income taxes | 253 | 131 | 628 | (234 | ) | |||||||||||
| Net (loss) income | (463 | ) | 311 | (1,190 | ) | 631 | ||||||||||
| Net income attributable to noncontrolling interest | 1 | 1 | 1 | 1 | ||||||||||||
| Net (loss) income attributable to Zapata Corporation | $ | (462 | ) | $ | 312 | $ | (1,189 | ) | $ | 632 | ||||||
| Net (loss) income per common share - basic and diluted | $ | (0.02 | ) | $ | 0.02 | $ | (0.06 | ) | $ | 0.03 | ||||||
| Weighted average common shares outstanding: | ||||||||||||||||
| Basic | 19,276 | 19,276 | 19,276 | 19,276 | ||||||||||||
| Diluted | 19,276 | 19,399 | 19,276 | 19,400 | ||||||||||||
SOURCE: Zapata Corporation
Zapata Corporation
Leonard DiSalvo, CFO, 585-242-8703
http://www.zapatacorp.com