Zapata Corporation Announces Second Quarter Results
ROCHESTER, N.Y.--(BUSINESS WIRE)--Aug. 8, 2005--Zapata Corporation (NYSE: ZAP) today announced its consolidated financial results for the second quarter ended June 30, 2005.
Zapata reported consolidated net income of $464,000 or $.02 per diluted share on revenues of $86.5 million for the three months ended June 31, 2005 as compared to consolidated net income of $837,000 or $.04 per diluted share on revenues of $92.3 million for the quarter ended June 30, 2004. The decrease in consolidated revenue was primarily the result of decreased revenue contributed by Safety Components International, Inc. (OTCBB: SAFY), partially offset by an increase in revenue contributed by Omega Protein Corporation (NYSE: OME). Decreased net income for the same quarter was the result of decreased net income contributed by both Safety and Omega.
Zapata reported consolidated net income of $542,000 or $.03 per diluted share on revenues of $169.0 million for the six months ended June 30, 2004 as compared to consolidated net income of $2.6 million or $.14 per diluted share on revenues of $186.6 million for the comparable period of 2004. The decreases in revenue and net income resulted from decreases at Safety Components and Omega Protein.
Safety Components contributed approximately $59.0 million and $1.3 million to Zapata's consolidated revenues and net income, respectively, for the quarter ended June 30, 2005, as compared to $65.9 million and $2.9 million for the comparable period of the prior year. For the six months ended June 30, 2005, Safety contributed approximately $117.6 million and $3.0 million to Zapata's consolidated revenues and net income, respectively as compared to $135.1 million $5.3 million for the comparable period of the prior year. Safety's second quarter results, as well as the results for the first six months of 2005 reflect a decrease in net sales due to decreased demand in the North America automotive market and increased customer in-sourcing of production, which frequently occurs when demand decreases, partially offset by the favorable effect of changes in foreign currency exchange rates compared to comparable periods in 2004.
Omega Protein contributed approximately $27.5 million and $383,000 to Zapata's consolidated revenues and net income, respectively, for the three months ended June 30, 2005 as compared to $26.5 million and $1.1 million for the comparable period of the prior year. For the six months ended June 30, 2005, Omega contributed approximately $51.3 million and $447,000 to Zapata's consolidated revenues and net income, respectively as compared to $51.5 million and $1.5 million for the comparable period of the prior year. Omega Protein's second quarter results, as well as the results for the first six months of 2005 reflect reduced margins primarily due to higher cost of inventories carried forward from the 2004 fiscal year, partially offset by higher prices received during the current year.
About Zapata:
Zapata is a holding company which currently has two operating companies, Safety Components International, Inc. and Omega Protein Corporation. As of June 30, 2005, the Company had a 77% 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.
Zapata effected an eight-for-one stock split of its outstanding shares of common stock, par value $.01 per share, effective at the close of business on April 6, 2005. All share information on the financial statements and in this release, including per share amounts, have been proportionally adjusted as if the eight-for-one stock split had been effective as of the date or period presented.
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 Quarterly Report on Form 10-Q for the period ended June 30, 2005. 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
CONDENSED CONSOLIDATED BALANCE SHEETS
(In Thousands, Except Per Share Amounts)
June 30, 2005 December 31,
(unaudited) 2004
------------- ------------
ASSETS
Current assets:
Cash and cash equivalents $47,665 $67,433
Accounts receivable, net 53,759 53,376
Assets held in subsidiary deferred
compensation plan 2,178 4,361
Inventories, net 82,451 67,324
Prepaid expenses and other current assets 8,564 6,515
------------- ------------
Total current assets 194,617 199,009
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Other assets:
Intangible assets, net 5,007 6,158
Other assets 19,842 20,021
------------- ------------
Total other assets 24,849 26,179
Property, plant and equipment, net 139,382 137,301
------------- ------------
Total assets $358,848 $362,489
============= ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current maturities of long-term debt $3,920 $4,924
Accounts payable 18,370 19,395
Accrued and other current liabilities 32,836 32,880
------------- ------------
Total current liabilities 55,126 57,199
------------- ------------
Long-term debt 17,574 19,672
Pension liabilities 10,061 9,677
Other liabilities and deferred taxes 11,530 10,117
------------- ------------
Total liabilities 94,291 96,665
------------- ------------
Minority interest 81,667 79,510
Commitments and contingencies
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; 24,569,936 and
24,564,600 shares issued at June 30, 2005
and December 31, 2004, respectively; and
19,137,856 and 19,132,520 shares
outstanding at June 30, 2005 and December
31, 2004, respectively 246 31
Capital in excess of par value 160,395 160,671
Retained earnings 55,383 54,841
Treasury stock, at cost, 5,432,080 shares (31,668) (31,668)
Accumulated other comprehensive (loss)
income (1,466) 2,439
------------- ------------
Total stockholders' equity 182,890 186,314
------------- ------------
Total liabilities and stockholders'
equity $358,848 $362,489
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ZAPATA CORPORATION
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands, Except Per Share Amounts)
Three Months Ended Six Months Ended
June 30, June 30,
------------------- -------------------
2005 2004 2005 2004
---------- -------- --------- ---------
Revenues $86,518 $92,314 $168,961 $186,601
Cost of revenues 74,953 76,123 145,928 155,258
---------- -------- --------- ---------
Gross profit 11,565 16,191 23,033 31,343
Operating expense:
Selling, general and
administrative 9,385 9,262 18,673 18,849
---------- -------- --------- ---------
Total operating expenses 9,385 9,262 18,673 18,849
---------- -------- --------- ---------
Operating income 2,180 6,929 4,360 12,494
---------- -------- --------- ---------
Other income (expense):
Interest income 402 377 727 768
Interest expense (400) (702) (841) (1,406)
Other, net 280 49 (85) (227)
---------- -------- --------- ---------
282 (276) (199) (865)
Income before income taxes and
minority interest 2,462 6,653 4,161 11,629
Provision for income taxes (1,297) (4,280) (2,454) (6,611)
Minority interest in net
income of consolidated
subsidiaries (701) (1,536) (1,165) (2,383)
---------- -------- --------- ---------
Net income to common
stockholders $464 $837 $542 $2,635
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Earnings per share:
Basic $0.02 $0.04 $0.03 $0.14
========== ======== ========= =========
Diluted $0.02 $0.04 $0.03 $0.14
========== ======== ========= =========
Weighted average common shares
outstanding:
Basic 19,135 19,131 19,134 19,131
========== ======== ========= =========
Diluted 19,345 19,356 19,379 19,326
========== ======== ========= =========
CONTACT: Zapata Corporation
Leonard DiSalvo, 585-242-8703
http://www.zapatacorp.com
SOURCE: Zapata Corporation